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Increasing of tax risk abroad

Published: 16.12.2016 |

Companies are faced with a more thorough check of taxes, as more and more employees are working at the international level, 24 percent of enterprises reported a recent call by tax authorities. According to PwC, minimization of the taxation and removal of profit of OECD aggravated attention on the risks connected with mobility of employees as the international organizations. The governments are aimed at providing profit that is assessed with a tax on the territories where business activities are performed. 31 percent of the companies say that they don't know the exact number of the employees working at the international level. 58 percent of the companies realize consequences of this tax provision and they don't know how to cope with such changes. Most of them understand that it is necessary to make changes before tax rules are put into operation. According to the report, informally migrating population creates special problems and risks for employers. Nearly a quarter (23 percent) of respondents told that they didn't know who bears responsibility for business travelers and only a third of the companies worry about the taxes. Ben Wilkins, the partner of global mobility told that...

EU in search of successful promotion tax

Published: 15.12.2016 | Без категории

The Presidents of the European Parliament, the Council and the Commission gave their consent that the successful promotion of taxes just need "to eliminate the tax fraud, tax evasion and for safe, fair tax system." Schultz, Fico and Juncker signed (in December) a declaration in which they are given direct EU objectives and priorities of the legislation process in 2017. Even if the impact and changes in tax process was not one of the most issues, it was one of the "four main tasks that need to pay special attention to further progress in 2017," and what about draft laws, presidents of the three state institutions have stated that "draft laws have to be fast tracked." Therefore, the institutions have decided to set up a joint monitoring and track the progress of tax, when it is said about the implementation of the joint statement. Meetings of the three state institutions will be held in the spring, summer and autumn of 2017, and implementation of such declaration will be verified on a regular basis of the interdepartmental working group on coordination of activities. Author: Sergey Panovmanaging partner Finance Business...

Seychelles planning considerable tax changes in 2017

Published: 14.12.2016 | Без категории

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#Seychelles #Taxation

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: 13.12.2016 |

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#Scotland #Taxation

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...

The Canadian tax benefits are profitable for rich persons

Published: 12.12.2016 |

Tags:

#Canada #Tax exemptions

Tax expenditures on the income of physical persons of Canada bring benefit for more than 50 percent of persons which gain income, according to the new report of the Canadian center of political alternatives (CCPA). Using data of 2011, it was established that 59 of 64 tax expenses, provide more benefit to 50 percent of the persons gaining income. It shows that in 2011 39 percent of profitable tax expenses provided to more than 10 percent of persons which gain income, and less affluent taxpayers saw only 16 percent of the benefits. The report states that there are only five taxes: a tax on working income, a guaranteed income without tax, social security without taxation, reimbursement of medical costs and disability tax credit - they can be described as "relatively progressive" with maximum benefit CAD1,110 ($ 840 USA). The Canadian government is currently carrying out a comprehensive review of federal tax expenditures. The goal is to ensure that the tax costs are fair, effective and have financial responsibility. The Canadian center of political alternatives has recommended that the annual tax expenditure report from Finance Canada, included the distribution of tax expenses...

EU Council approves the following actions of international tax reform

Published: 09.12.2016 |

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#EU #Reforms

On December 6 meeting, the EU's Economic and Financial Affairs Council (ECOFIN) approved a number of measures for improvement international observance of the tax legislation. Specifically, the ECOFIN provides access for tax authorities to information, held by authorities responsible for prevention of money laundering; reached a consensus on the Directive project that aimed at closing of “hybrid mismatches” with the taxation systems of three countries; also made the decision concerning the offer to recommence the common consolidated corporate tax base (CCCTB). The Directive on exchange of information on beneficial owners of the companies it is intended to support tax authorities controlling the correct application of tax rules, thereby helping to prevent tax avoidance and tax fraud. At the second stage after the intensive discussions, Council agreed to stabilize the document for the majority of provisions Directive's plan about hybrid mismatches, leaving only two questions to solve them on the next weeks: rules that would allow Member States to apply the limited benefits and date of realization. “This directive will prevent corporate taxpayers for exploiting disparities...

British electronic tax reporting has achieved concessions

Published: 08.12.2016 | news

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#Tax reporting #United Kingdom

The Low Incomes Tax Reform Group has said, that millions of British taxpayers, who do not have access to the Internet can not comply with the requirements of HM Revenue and Customs, which offered obligatory online reporting rules. Also, this group of tax reform urged the government to make concessions to give a guarantee to people who not necessarily use online technology or have no Internet access, to have alternative options for accomplishment of the tax liabilities, in case of the entered obligatory electronic reporting of 2018. The Low Incomes Tax Reform Group said, that 10 percent of the population will never be "interested in a digital form" and more than five million adults never used the Internet. The chairman of LITRG Anthony Thomas said: "There are people who just don't want to learn use the Internet, to see its benefits which can give and other people don't want to use because they think that it is unsafe. Also, more and more services progress through online services, such as a capability to make new online requirements of the tax credit as it was announced in Autumn Statement. We convince HM Revenue and Customs and more wider government to look at this electronic...

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

Published: 07.12.2016 |

Tags:

#Real estate #Scotland #Taxation

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: 06.12.2016 |

Tags:

#Spain #Taxation #VAT

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: 05.12.2016 |

Tags:

#Taxation #United Kingdom

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...

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