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Sri Lanka, tax reform

Published: Sergey Panov | 12.05.2016 | news

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...

Britain fights against the regime of money laundering

Published: Sergey Panov | 25.04.2016 | news

The UK government has set out an action plan for the implementation of measures to combat money laundering and counterterrorist finance regime. The Action Plan defines three main steps. First, strengthen law enforcement response to the threats faced by the United Kingdom. This step will include improved law enforcement capacity and the creation of new legal powers to disrupt the activities of criminals and terrorists. Second, the reform should help to keep track of those companies that promote or allow to launder money. And, thirdly, to increase the international reach of law enforcement agencies and international exchange of information. Within the framework of the action plan, the government will hold a six-week consultation on a number of proposed measures. Interior Minister Theresa May said: "The world's leading financial system of Great Britain is threatened and undermined by money laundering, illegal financing and the financing of terrorism and laundering of proceeds from criminal activities Our plan of action sends a clear signal that we will not tolerate this type of activity in our financial institutions. We will create a new partnership that will provide in-depth...

Simplifying the tax rules in New Zealand

Published: Sergey Panov | 14.04.2016 | news

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...

Reform of tax regulations in Australia

Published: Sergey Panov | 08.04.2016 | news

The Australian Treasury has issued a draft law on the reform, namely the rules in respect of incurring losses by the company. Treasury said that the reforms would "stimulate entrepreneurship allowing loss-making enterprises to seek new opportunities to return to profitability." The proposed measures are part of a government program aimed at innovation and science. In accordance with current regulations, the Company has the right to use the losses over the past year to reduce taxable income provided that retained the same interest from the date of loss. New developments allow the company to use the losses of previous years to reduce taxable income but during this period the company may not conclude new transactions or types of business activities. This will allow companies to adapt and change their business. Commenting on the draft legislation, Mark Molesworth, said that while these measures are a step in the right direction but problems still remain. He explained: "This bill is very restrictive and can cause suffocation introduction of innovation in order to provide access to the existing losses and will also require significant compliance costs in relation to such...

Costa Rica. Tax reform plan

Published: Sergey Panov | 05.04.2016 | news

President of Costa Rica, Luis Guillermo Solís, addressed to the deputies to approve plans for tax reform before the end of the year. The head of state said at a press conference that the approval of the tax reform is a top priority. He noted that after a two-year moratorium on the tax increase, the time has come for the implementation of austerity measures. Last year, the tax reform bill was forwarded to the legislature. The bill contains a proposal for the replacement of 13 percent tax on the general sales with a value added tax with an initial rate of 14 percent. The rate will be increased to 15 percent in the second year. The bill also includes an increase of individual income tax rate ranging up to 25 percent. However, the rating agency said that Costa Rica is unlikely to hold significant fiscal reform in the near future due to the country's fragmented Congress and the protracted process for agreeing upon legislation. As a result, the agency expects the general government deficit in Costa Rica will continue to rise and this year will exceed seven percent of the gross domestic product (GDP). The International Monetary Fund said in a statement in March that Costa Rica has...

United Kingdom, reducing taxes on business

Published: Sergey Panov | 04.04.2016 | news

Since April 1 entered into force a number of tax reforms "that will support millions of businesses to create more jobs and to enhance their duties," said David Gauke, Financial Secretary of the Treasury. In a statement, the government said: "The changes will help entrepreneurs and businesses create new jobs, it will include measures that will help to reduce labor costs, taking the very smallest businesses out of employer National Insurance contributions (NICs). Will be extending business rates relief ahead of permanent major rates cuts. The following measures have come into force: The Small Business Relief Scheme will be extended for another year, in anticipation of the introduction of business rates cuts in April 2017; NICs will be abolished for apprentices under the age of 25 years; The employment allowance for businesses and charitable organizations, will be increased from 2000 GBP to 3000 pounds, to encourage the hiring of staff; Capital gains tax will be reduced from 28 to 20 percent; The duty on fuel will be frozen for the sixth consecutive year. "The companies are the lifeblood of the economy, so we try to provide them with financial support as the enterprise and...

Held a debate on the future of VAT in the EU

Published: Sergey Panov | 29.02.2016 | news

The European Commission held a debate on reform of the VAT framework on February 24. The Commission was preparing to publicate an Action Plan on VAT. The European Union's value-added tax system "needs reform", said the commission. It needs to close the difference between theoretical VAT revenue receipts and the actual. This was estimated at EUR180bn (USD198bn) in 2013. It was result from avoidance, cheating and providing by the states of the European Union of reduced VAT and tax benefits. The VAT system creates administrative burdens nowadays, noted the European Commission, especially for small businesses and online companies. It said, that the VAT system should to be modernized in today's digital environment because of innovative business models and technological progress. The Commission issued a Roadmap earlier on February. Roadmap of the release of its Action Plan for a simple and efficient system of VAT to the single market that is going to be in March 2016. The Action Plan is intended to summarize the achievements made since the 2011 and set out the direction for future work. The principle of the new rules it is the destination principle. It provides that...

Property tax reform for UK

Published: Sergey Panov | 29.02.2016 | news

The International Monetary Fund said, that the United Kingdom should make changes to its medium-term fiscal consolidation strategy. Reducing of tax expenses could improve the tax regime's efficiency, increase tax neutrality and to free up revenues, the IMF has said in its 2015 Article IV report. The report also said that further property tax reform could decrease the shortage of housing. It recommended easing the tax burden on real estate transactions and increase the fees that are based on the property value.Also recommended to reduce tax rebates on the property of a single occupier. The IMF said that the reduction of the bias of tax code toward debt could contribute financial stability. Author: Olena Kutova senior lawyer of the Finance Business Service company ...

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