#Taxation Archives - Page 3 of 14 - Law firm Finance Business Service: offshore registration, tax planning, legal services

Government of Great Britain plans to raise taxes

Published: Yurii Krasilnikov | 01.09.2017 | news

The British government is concerned about the state budget deficit which currently reaches 2.5% of GDP. The authorities do not exclude the option to solve the current economic situation by raising the tax rates. The Chancellor of the British Treasury Philip Hammond hinted unambiguously with his statement: "We never said that we would not raise taxes". In the near future, a program will be developed to reduce the budget deficit, according to which the policy of the state can change in the direction of increasing taxes and reducing the financing of a number of industries. According to the official, reducing expenses and obtaining new sources of replenishment of the state treasury will allow the UK to solve the existing financial problems and renew the financing of the leading sectors of the economy of the...

Undistributed profit in Latvia is exempt from CIT

Published: Yurii Krasilnikov | 01.09.2017 | news

On the 4th and 11th of July, 2017 the Cabinet of Ministers of Latvia approved a number of draft laws providing for the significant changes in the tax legislation of the country which will enter into force on January 1, 2018. The most significant of them will be the application of the CIT 0% rate for the reinvested profits. In other words, the enterprise will be subject to the corporate income tax only if it pays dividends or other payments for the purpose of actual distribution of the profits (conditionally distributed profit). Therefore since 2018, the company's profits are exempted from CIT, but it has to pay 20% of the income tax from the amount of dividends. At the same time, the shareholders will not have to pay personal income tax (PIT). Although, according to the bill, the CIT rate is 20%, and the tax base should be divided by a factor of 0.8, the effective tax rate actually equals 25%. It is notably that CIT will be applied not only to the dividends in the traditional sense, but also to the "deemed dividends", which are considered a new concept in Latvian tax legislation, and comparable with the dividends to the costs. Here it is important to note that the last ones...

Australia needs tax reform

Published: Sergey Panov | 20.12.2016 | news

James Pearson, the CEO of the Australian chamber of commerce and the industry (ACCI) told that the country "needs tax reform on a wide basis, but not gradual approach for the purpose of stimulation of economic growth". The real gross internal product (GIP) as predict, grows for two percent in 2016-17, and for 2.75 percent in 2017-18. The main cash deficit as expect, will fall from 2.1 percent of GDP in 2016-17 to 0.5 percent in 2019-20. The net debt as it is supposed, will reach a maximum in 19 percent of GDP in 2018-19, and then will decrease for the medium-term period approximately to 10 percent. The size on recovery of the budget that took place from a general election in May, costs more than 22 billion Australian dollars (16 billion US dollars). The treasurer Scott Morrison told that for maintenance of economic growth, the government will continue to perform the plan for workplaces and growth that will allow to raise level of living and will support a profit increase. He told that the government remains careful in taxation by high taxes of the Australian economy on the ground that it limits growth and therefore the income. This assumption provides to the government...

Seychelles planning considerable tax changes in 2017

Published: Sergey Panov | 14.12.2016 | news

The Seychelles will finish considerable reforms on the main taxes in 2017. Since July 1, 2017 the new assessed tax on the land property in the Seychelles will be imposed, it will be levied only for foreigners, and purchases of the private land by foreigners will also attract the high state fee. Also, the government suggests to change the law on taxes for entrepreneurs. The limit taxable for the separate entities, such as individual dealers or partners, will remain in SCR150,000. Besides, the government offers that the expected rate of a tax was changed further. The rate of a tax on the entities with turnover to SCR0.5m shall remain at the level of 1,5 percent, but the tax on three percent will be imposed on the entities with turnover from SCR0.5m. Professional taxpayers, such as accountants and engineers, will pay a rate of five percent. The government will exempt the entities with an annual gross income to SCR1m from the tax discharge in the first year of operation to help small and medium scale enterprises. Larose told that at the moment the purpose is "to turn Seychelles into the capital of small and medium business of the Indian Ocean". Larose also announced an...

Scotland urged to provide independence of new tax court

Published: Sergey Panov | 13.12.2016 | news

New tax appeal court in Scotland should be independent from the national new tax authority, the group of tax reform with the low level of the income declared. Simultaneously with the introduction of the new Scottish tax inspection to manage taxes, transferred from the UK, Scotland suffers an existing tribunals service to the Scottish Tribunals on 1 April 2017 and brings a lot of related changes, according to the legislative offers. These offers include drafts of procedural rules for new court of the first level for tax chamber of Scotland which will be similar to an operating mode of present tax court of the first level. Reacting to negotiations on new system, the group of tax reform with the low level of the income declared that tax chamber and tax court of the first level "actually, both shall be both conscious, and absolutely independent of the income of Scotland". Also noted that the system of court shall be "available to all" and asked that the government considered a question of providing free legal services tax and accounting services to help people with low incomes. Author: Sergey Panovmanaging partner Finance Business...

“Successful” year for the tax of transferred property in Scotland

Published: Sergey Panov | 07.12.2016 | news

Transition of Scotland to a new Land and Buildings Transaction Tax (LBTT) was "operationally successful", according to the Scottish Parliament's Finance and Constitution Committee, which analyzed the impact of the tax on the real estate market. The Land and Buildings Transaction Tax replaced British stamp duty land tax (SDLT) in Scotland from April 1, 2015 within the agreement with Great Britain which transfers responsibility for some taxes to Scotland. LBTT of Scotland is based group with 145,000 pounds sterling (184,550 US dollars) with a free limit on the Land and Buildings Transaction Tax. In the amount of two percent the price is paid for a share of inheritance of real estate to 250,000 pounds sterling; five percent for a share to 325,000 pounds sterling; 10 percent to 750,000 pounds sterling; and 12 percent from the price above 750,000 pounds sterling. In the report of Committee said that in spite of the fact that implementation of a tax was successful, it is too early to draw any final conclusions concerning influence of LBTT rates and groups after one year of operational management of the entity, and also due to the lack of consistency in the forecast and in data of...

Spain increases the burden of the corporate tax

Published: Sergey Panov | 06.12.2016 | news

The government of Spain declared growth of a budget income on December 2, that will increase tax revenues from corporations. In spite of the fact that recently created government decided to leave the 25 percent corporate tax rate untouched, Spain will limit the corporate tax deductions. They will contribute the most part of 7 billion euros in the new income at which the government is aimed. The Budget imposes new limits on loss carry backs and restrictions for use of the pecuniary losses connected with shareholdings in the companies located in "tax harbors or in the territories with not appropriate level of a tax" in number with other changes. New measures of the corporate tax, as expected, raise the additional amount of 4.65 billion euros in revenue for the government. Besides, real estate value will be updated for property tax to increase revenues. Also, the government intends to lift a number of "guilty" taxes, including on alcohol, tobacco, and sweet drinks. Other changes are directed on modernization VAT and the fight against fraud VAT. It includes a new reporting system of the VAT in real time which announced in 2014. Taxpayers will be obliged to report about transactions...

Transfer pricing is the UK tax dispute

Published: Sergey Panov | 05.12.2016 | news

According to the international law firm Pinsent Masons, the amount of tax that potentially underpaid large corporations by removing profits to other jurisdictions, increased by 60 percent last year, to GBP3.8bn (USD4.8bn). This number is "a tax for consideration" by HMRC's Large Business Directorate HMRC, which does calculations of the most potential additional tax liability on all open requests before any investigations are completed. The specialist in the tax matters Heather Self of Pinsent Masons told that such increase offered management of HMRC that opened a significant amount of new requests within the last twelve months, in particular, in the field of affairs of transfer pricing of multinational corporations. She assumed that transfer pricing becomes the unique biggest risk or a source of potential tax errors for the large companies. "It seems that financial management on new looks at the largest companies of Great Britain, being accented on intra group, cross-border transactions", she told. "Possibly, there will be a reaction to increase in emphasis of attention of OECD and the EU concerning the international taxation, and it allows to assume that HMRC becomes more...

Australian pension tax reforms are approved

Published: Sergey Panov | 01.12.2016 | news

On November 23 the amendment of Treasurer laws (fair and stable pension) the bill of 2016 and contributions to the pension fund (excess tax balance transfer) taxation bill in 2016 was adopted. In joint release, the Treasurer Scott Morrison and the minister of the income Kelly O'Dwyer told: "The package of proposals on reform of pension fund contributions, the best purpose of tax benefits to make our pension system fair and stable as aging of the population and tax difficulties increase." The legislation performs following operations: allows for pensioners to make, "approximation" to concessional contributions with balance below 500,000 Australian dollars; introduce the maximum amount of the transfer balance of 1.6 million Australian dollars, sets the amount of restriction, which person can transfer into the pension phase of the non-taxable income; removes "10 percent rule" (the profitable test) to provide equal conditions for access to pension fund contributions of tax benefits, irrespective of a situation of employment person; introduces tax compensation of the pension low income. Such measures will come into force since July 1, 2017. "Ninety six percent of people of the...

Canada has to improve tax competitiveness

Published: Sergey Panov | 30.11.2016 | news

The tendency of the federal and local governments in Canada to raise taxes for companies, means that the country is losing its competitive advantage, according to a new report, School of Public Policy at the University of Calgary. The school Report of 2015 about Tax Competitiveness created by Filip Bezel and Jack Mintz explained that the effective rate of the corporate tax of Canada on new investments raised from 17.5 percent of 2012 to 20 percent of 2015. In the report speaks that this increase, first of all, at higher provincial rates of the corporate income tax, reversals of British Columbia the governments of the previous goods and services of tax reforms, and reducing tax benefits at the federal and regional levels. The reforms brought in the federal budget of 2016 will see effective increase in a rate to 20.1 percent. The school showed that now Canada takes the sixth place on the extreme height of an effective rate of a tax (METR) in the G7 and the highest 13th place in the G20 and OECD group of the countries. Among the provinces of Canada the report noted that Newfoundland and Labrador increased the rates of the corporate income tax to deal with their deficits while New...

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