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Australian Tax Department warns about false deductions

Published: 17.08.2016 |

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#Australia #Taxation

The Australian Tax Organization (ATO) warns taxpayers about false deductions bounded with job and remind employee about using a new checking regime in real time deductions and about tax declarations electronically. Australian confirm that more than AUD21bn (USD16.2bn) it’s a disbursements connected with work in every year. Assistant Commissioner Graham Whyte said that ATO see mistakes when the same time sum if individual disbursements not so huge but in general amount it has bigger meaning. Whyte also explained that ATO would use efforts against tax agents who make returns more essential and advice to taxpayers that they need to be sure that their agents are registered. ATO in this year go into force checks of deductions in real time for tax returns in filed electronically. Whyte said: "If your claims essentially higher than any other in the same occupation with the same income in that case will be some notification and it need to pay attention on this and check it out." This new process only need to help you to check your own returns. Whyte recommended to taxpayers inquire according to three rules: "First, be sure that you didn't spent this money and it wasn't return;...

Ireland explains a new patent box

Published: 16.08.2016 | news

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#Ireland #Taxation

The Irish Revenue published practically department in using Knowladge Department Box, special regime of income taxation that appears of intellectual property. KDB force into a new financial law for company in 2015, the report period of what started the 1 of January, 2016 and also is belong to income, which appears by literary property software and also in case of small companies it will be other intellectual property which equal or can be patented. As explained department, the company "will have a right for deduction in 50 percent of its own qualifications income. We can say that the income we can take from intellectual property has taxation in 6,25 percent when the rate of corporative tax is 12,5 percent. The regime is available for companies, which provided scientific researches according to part 766 of the Taxes Consolidation Act 1997. The department provide the definition of qualifications company, qualifications income and active which appears because of using qualifications active, and it also explains a huge specific demands, which need to be done for claiming the relief. Author: Olena Kutova senior lawyer of the Finance Business Service company ...

Ukraine launches a new system of customs administration

Published: 15.08.2016 |

After the introduction on August 1 of the new customs administration system in Ukraine the authorities are checking to ensure the functioning of the system and consider next steps. August 1, 2016 a new project was launched under the name of "single window", which allows customs posts and regulatory authorities will automatically exchange data on cargo crossing the border of Ukraine. Planned modernization of management processes (customs, veterinary, sanitary, phytosanitary, radiological and environmental), which later will be carried out with an automatic electronic data exchange. In a statement released after the introduction of the system, the finance minister said: "The Ministry of Finance initiative aims to primarily expand the automated process of «single window», which will greatly simplify and speed up customs procedures It should facilitate a life to businesses and eliminate opportunities for corruption related to customs clearance. During the week the Ministry of Finance will check the work of a new project at the customs control authorities and points of registration in Ukraine". Looking ahead, the Ministry of Finance will seek to implement the already approved...

The EU given time to fix of the budget deficit

Published: 12.08.2016 | Без категории

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#EU #Spain #Taxation

The European Council overturned the fines for Spain and Portugal for infringement of excessive deficit rule and established a new "fiscal path" for each country, which will have to follow. Such action follows from the preceding Council decision on the fact that Spain and Portugal have not taken effective measures to correct its excessive deficit and will now have to implement the recommendations made by the European Commission in their respective fields. In July, the Council confirmed that Spain and Portugal have not been able to reduce its deficit to below three percent of gross domestic product (GDP) for the time. Once provided financial assistance amounting to 78 mrad euros (86.9 billion dollars) from the EU, the eurozone and the International Monetary Fund (IMF) in 2011, Portugal was not able until 2014 to bring its deficit in line with EU expectations. For this reason, in June 2013. The Council further extended to 2015 and set targets deficits of 5.5% of GDP in 2013, 4% in 2014 and 2.5% in 2015. Portugal was able to achieve a given economic restructuring program in June 2014, but in 2015 the general government deficit was 4.4% of the country. The July decision of the...

Australia has made prejudice for a big corporation

Published: 11.08.2016 |

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#Australia #Taxation

Australian Tax Organization announced a range of alerts for taxpayers that bi companies will be caution in use tax avoidance system. The firs alert as to agreement, where Australian consolidation group all the time use offshore constitutions, which are in inner operation. Deputy Commissioner Jeremy Hirschhorn said: "With help of this mechanism their true income can be low and in that fact the take-outs will be incorrect. "Taxpayers must provide returned taxable income properly, because it reflects the economic substance and significance of the operations carried out under the principle of arm's length. ATO in the present time investigate the cases when this mechanism and also structure in the answer for multinationals against Tax Avoidance Law which had made to increase tax for goods and services. ATO in a similar way to warn against deliberate calculation of debt capital for the purposes of the thin capitalization rules. Conza said: "In some cases, taxpayers are not able to include the cost of debt interest, which has been treated as equity for accounting purposes of debt capital As a result, adjusted average debt of the taxpayer understated, allowing them to...

Trump renew proposed tax cutting

Published: 10.08.2016 |

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#Taxation #USA

During his performance in Economic club in Detroyt 8 of August, republican, candidate of president, Donald Trump change his programme of tax cutting, particularly as to previously announced cutting of income tax rate for private individuals. Cutting of tax income, what flow from Trumps tax reforms can put more than USD9.5 trillion over ten years. As this deficit had been created largely at the expense of cutting individual income tax rate. His first proposition can help to cut childcare disbursements, let to parents completely take away the cost average cost of childcare disbursements from them taxes. As to business tax, Trump approved that he will provide tax rate cutting of all business to 15 percent. He said that the small companies would take away maximum profit from this plan. He also would like to take back trillions of dollars from American firms, which at the present has been based abroad. Corporative delay of foreign income will liquidate and corporative income at present time are providing abroad in international corporation by USA taxed at a reduced repatriation rate of 10 percent. Author: Olena Kutova senior lawyer of the Finance Business...

HMRC publishes guidance on a tax-free trade

Published: 09.08.2016 |

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#United Kingdom #VAT

The tax authority and the Tax and Customs Service of the United Kingdom released a practical guide by the UK's special scheme which allows to non-EU countries taxpayers to reimburse VAT on goods purchased in some UK stores. VAT Notice №704 / 1, issued August 7 discusses how those who live outside the European Union may return the value added tax (VAT) paid for goods purchased in stores of Great Britain, which in turn provide retail products without VAT. Tax free retail trade allows individuals traveling to the European Union (EU) to obtain a VAT refund on goods bought in the UK and take home. However, it can not be used for any service. In most instances store or refund from the company will charge a payment for use of the taxpayer in its stores and tax-free goods can take the fee out of the money paid to the VAT refund. The manual discusses the right to use this circuit, which products satisfy the set requirements, the time required for export, as well as the requirements for receiving the refund. Author: Sergey Panovmanaging partner Finance Business...

DTA entered into force between Russia and Hong Kong

Published: 08.08.2016 |

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#Double taxation #Exchange of tax information #Hong Kong #Russia

Comprehensive agreement for the avoidance of double taxation (CDTA) was signed in January of this year between Hong Kong and Russia, which came into force on 29 July 2016. According to the sources, this agreement shall remain in force for Hong Kong each year since its signing to double taxation, which took place on or after April 1, 2017. The CDTA is informed about what is required to support efforts to expand the tax obligations undertaken by the two countries in the framework of the «Belt and Road», which is a project of the Chinese government for the economic development aiming at the integration of trade and investment between the approximately 60 countries in Eurasia. In the absence of the CDTA program, of Hong Kong companies income, which conduct their entrepreneurial activities with the help of permanent missions in Russia and taxed in both places if their earnings was received in Hong Kong. On this basis, in the new agreement, double taxation is eliminated, and now any Russian tax paid by the companies on their earnings, will be allowed to tax payable in Hong Kong. Besides, in accordance with this agreement, the rate in Russia on income tax on royalties, up to the...

Japan is increasing sales tax

Published: 05.08.2016 |

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#Japan #Taxation

The International Monetary Fund (IMF) has announced to continue previously started process of increasing gradual consumption tax. The eight percent rate of gradual consumption tax in Japan first time was planned to increase it for 10 percent in October 2015, but because of current plans, it won't working in near feature to October, 2019. IMF in its 2016 Article IV consultation report for Japan said that the country need to repulse of previously planning rate for 2019 year and instead of to start with previously announced rate, step-by-step increase as fast as possible. IMF said that gradual increasing of consumption tax at least for 15 percent with 0.5-1 percentage point after several time could help to balance targets of objectives of supporting growth and achieving fiscal sustainability in the long run. In the report noticed that the structure of one rate must be save for a long time and worrying about tax impact on low-income households addressed by targeted cash transfers. The stable budget consolidation of 1.5 percent in gross domestic product (GDP) per year to 2030 year will be enough to put the public debt-to-GDP ratio on a downward path, the Fund said. ...

Luxembourg reviewing verdict on LuxLeaks

Published: 04.08.2016 |

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#Luxembourg #Taxation

Luxembourg public prosecutor lodged an appeal against the verdict on the recent so-called scandal "LuxLeaks", arguing that the sentences imposed by the court was too lenient. Earlier this year, Antoine Deltour and Raphael Halet, both former employees of PricewaterhouseCoopers (PwC) consulting firm, received suspended sentences by the court 12 and 9 months, respectively, for their role in the disclosure of thousands of documents detailing the private tax ruling between multinational companies and the tax authority of Luxembourg. They also had to pay a fine of 1,500 EUR (1,680 USD) and 1,000 EUR, respectively. A third defendant, a French journalist Edouard Perrin, who made the initial discovery of LuxLeak and the first to publish the story on French television, was acquitted of all charges. Let us recall that in this scandal for the exemplary data were involved 340 major transnational and national companies from around the world. It is believed that the defendants, with the support of the local authorities thought out and implemented an elaborate scheme of tax evasion, in some cases, reducing the payout to just 1%. The defendants face various charges during the trial, which...

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