#Taxation Archives - Page 11 of 14 - Law firm Finance Business Service: offshore registration, tax planning, legal services

Sweden, plan to combat tax evasion

Published: Sergey Panov | 16.05.2016 |

Sweden announced that tax consultants should be obliged to inform the Swedish tax authority for tax planning schemes in the framework of the action plan to combat tax evasion, it also urges companies to preserve their own taxation policies at the board level. According to the Government, the introduction of the obligation for tax advisors can help the tax authorities to respond more quickly and close the scheme of tax evasion. This idea is part of the plan to combat tax evasion which encourages companies to tax issues on the agenda of board meetings. "Corporations should make tax policy and the system of internal control to ensure that the actions taken by corporate management,consistent with the opinion of the board on tax policy directors," according to the plan. The plan also calls for a review of the value added tax (VAT), as well as more effectively patrol the VAT system. Sweden also intends to launch an investigation into the effectiveness of penalties for incorrect tax returns. In addition, in order to counter the "informal" economy and the use of temporary labor the Government intends to seek the introduction of registers of staff in several sectors. The plan also...

Australia, a new tax code

Published: Sergey Panov | 13.05.2016 |

Australian Council for Taxes and Levies published its final report on the new code of tax transparency for multinational corporations. The report is divided into two parts. The first part requires a reconciliation of the accounting profit to the income tax, and income tax paid or payable on profits; identification of significant temporary and permanent differences; and taking into account the effective tax rates and global operations. Part two requires taxpayers to provide detailed information on the approach to tax strategy and management; a summary of the tax contribution to corporate taxes; as well as information on international transactions. According to the report, "big business" with a turnover of more than AUD500 million. Should take both parts, while "medium business" with a turnover of at least AUD100 million but less than 500 million should adopt only the first part. The report highlights that the new tax code in its current form refers to companies and other entities that are considered for the purposes of Australian tax. Other organizations such as foundations, pension trusts and partnerships may voluntarily adopt a code if desired. Finally, the report states...

Sri Lanka, tax reform

Published: Sergey Panov | 12.05.2016 |

Sri Lanka plans to make major changes in tax policy and administration in the framework of the economic program, which is supported by the International Monetary Fund loan (IMF). The two sides reached an agreement on the 36-month financing amounting to about USD 1.5 bn. The economic program aimed at increasing productivity which will reduce the budget deficit and public debt, as well as relieve pressure on the balance of payments, the fund reported. "The program of the authorities with the support of the IMF focuses on a set of reforms in the tax Sri Lanka's system - the elimination of exemptions and special rates broadening the tax base and creating a tax system that is simple, efficient and fairer," said Todd Schneider the head of the IMF mission in Sri Lanka. The government will seek to improve the ratio of taxes-to-GDP to about 15 percent by 2020 through the implementation of a new law on domestic revenue, VAT reform and the customs code. May 2, 2016, Sri Lanka has increased its rate of value added tax from 11 to 15 per cent to strengthen the finances of the nation. Author: Sergey Panovmanaging partner Finance Business...

The Ministry of Finance has improved the procedure of registration of VAT payers

Published: Sergey Panov | 10.05.2016 |

Ministry of Finance in his order of March 18, 2016 № 373 made new changes to the Regulations on registration of payers of value added tax approved by order of the Ministry of Finance of Ukraine from 11.14.2014, № 1130 (hereinafter - Regulation number 1130) that is simplified registration procedure for the future VAT payers. It has been established that if individual wants to register itself as a VAT payer then at first it must change the tax system taking into account the provisions of Article 293 of the Tax Code which sets tax rates for payers of the third group of the single tax providing for the payment of value added tax and do not provide the payment of the single tax. So now a VAT payer may indicate a new statement to the supervisory authority desired date of registration which was listed in the previous unaccepted application if eliminated all the shortcomings provided by the Regulation number 1130. In this case, a new application must be submitted no later than 3 working days before the beginning of the tax period when the such person shall be considered as a VAT payer. If a registration application to the supervisory authority is filed in electronic form, then to...

The fight against tax evasion in Poland

Published: Sergey Panov | 04.05.2016 |

The new amendment to the tax legislation, which introduced anti-avoidance applies to all types of taxes (excluding value added tax (VAT), which offers other provisions in order to prevent evasion of VAT). It prevents the taxpayer to obtain a tax benefit as a result of artificial transactions. According to a draft legal transactions aimed at obtaining tax benefits, contrary to tax legislation should not result in a tax benefit. The transaction is considered to be artificial if it is carried out by a taxpayer whose objectives are contrary to tax legislation. However, taxpayers have the right to use "fixing the opinion" to the Minister of Finance, which includes a description of the planned transactions and their economic objective in use. The Minister shall consider the application and decide whether the described transaction designed to evade tax. The main objective of this innovation - is a multinational company which minimize their tax liability in Poland, through the application of measures of tax evasion. Therefore, the Polish Government proposes duly documented business solutions and plan business considering the new amendments. Author: Sergey Panovmanaging partner...

Gramegna confirmed corporate tax cut in Luxembourg

Published: Sergey Panov | 26.04.2016 | news

Luxembourg's finance minister Pierre Gramegna confirmed that the government will gradually cut the corporate tax rate but the proposed changes to the restrictions on loss carry rules. Gramegna said that corporate tax will be reduced from the current rate of 21 percent to 19 percent in 2017 and further decline to 18 percent by 2018. Luxembourg's finance minister Pierre Gramegna confirmed that the government will gradually cut the corporate tax rate but the proposed changes to the restrictions on loss carry rules. Gramegna said that corporate tax will be reduced from the current rate of 21 percent to 19 percent in 2017 and further decline to 18 percent by 2018. In addition, the corporate tax rate for annual income of small businesses which do not exceed $ 28,000, will be reduced to 15 percent. Also Gramegna announced the adjustment of the proposed restrictions on transfer in front of past losses of the company. Initial proposals would allow loss carry forward for 10 years and used to compensate for a maximum of 80 percent of the profits. However, Gramegna informed Parliament that the losses will be "more strictly controlled" in 2017. And under the current rules the losses can...

New steps of the deoffshorization in Ukraine

Published: Sergey Panov | 25.04.2016 | news

The Verkhovna Rada registered draft law "On the tax sovereignty of Ukraine and offshore companies" № 4380 (hereinafter - the "Project number 4380") and the Draft Law "On Amendments to the Tax Code of Ukraine in connection with the adoption law of Ukraine" About tax sovereignty of Ukraine and offshore companies "» № 4381 (hereinafter - the "project number 4381") on 12 April, 2016. According to the explanatory memorandum to the draft decision number 4380 of this law aims to determine the content of the tax sovereignty of Ukraine, as well as the content of the sovereignty of foreign states. Besides this, lawmakers plan to minimize the use of offshore companies to evade taxes in the territory of Ukraine or to deal with corruption offenses and money laundering from crime, terrorist financing or other socially dangerous criminal offenses, including those committed by politically exposed persons - Ukrainian residents. Also Project number 4380 is assumed a definition of concepts which have not yet been enshrined in the legislation of Ukraine, in particular, "the anonymous company", "anonymous account", "offshore company", "offshore zone", "offshore country" and many others. An...

Corporate tax cut, Slovakia

Published: Sergey Panov | 19.04.2016 |

The newly formed coalition government of Slovakia has agreed to reduce the corporate tax rate in the recently agreed economic program. According to the plan, the four canoes coalition led by Prime Minister Robert Fico, and with the participation of parties of center-right and center-left political spectrum, corporate tax will be reduced by one percent to 21 percent in 2017, a further reduction of corporate tax could be considered at a later stage. In addition, the program provides for the reduction of the administrative burden for businesses in an effort to stimulate growth and reduce unemployment. Nevertheless, the plan also weakens efforts to reduce the budget deficit in Slovakia, the budget surplus is not expected until 2020, two years more than the previous period. In comments made after a "marathon negotiations" between four governing partners, Fico said: "The timetable within which the declaration of the program was adopted is an important signal to Europe that Slovakia is a politically stable country and this is particularly important in light of the Slovak Presidency of the Council EU ". Author: Olena Kutova senior lawyer of the Finance Business...

The corporate tax rate for small businesses in Canada

Published: Sergey Panov | 15.04.2016 | Без категории

Canada's Liberal government froze the tax rate for small businesses, despite a campaign promise to reduce it over the next three years. The Minister of Finance pointed out that the corporate tax rate for companies earning less than $ 500,000 a year will remain at the level of 10.5 percent. This is lower than the 15 per cent rate of the total corporate tax but will be abolished reducing to 9 percent. "This is a great breach of promise," said Dan Kelly, president of the Canadian Federation of Independent Business. Around 3.5 million companies are classified as small enterprises including 2.4 million private entrepreneurs. As a result of the freezing rate small businesses will pay about $ 900 million more in taxes in 2019, compared with what was planned. The government also expects to collect more than $ 11 billion over the next five years through a variety of measures aimed at tightening the corporate tax system, including hard inspections of companies and closing loopholes that use transnational corporations to shield income from taxation. Government restores federal tax credit of up to $ 5,000 for individual investors in 2016. Author: Olena Kutova senior...

Simplifying the tax rules in New Zealand

Published: Sergey Panov | 14.04.2016 | Без категории

The package of tax reforms aimed at supporting small and medium-sized enterprises (SMEs) has been submitted to the Prime Minister of New Zealand, John Key, 13 April 2016. It includes measures to simplify the taxation of small and medium-sized businesses, as well as reduce the cost of compliance with the requirements, said Finance Minister Bill English and Revenue Minister Michael Woodhouse. "These measures will make tax easier and reduce the burden of interest and penalties, as well as help small businesses to carry out individual payments to their circumstances," said English. "We want to make the tax system could fit into how the business works, not the other way around." The main measures included to the proposal: Reform of the temporary tax, the new payment. The elimination or reduction of the use of interest for use of funds for the vast majority of taxpayers. The ability of contractors to choose the tax rate that corresponds to their needs. Cancel the current one percent monthly penalty from 1 April 2017, although the direct penalties and interest charges for late payments will continue to apply. Woodhouse said the changes are part of a wider program of business...

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