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EU to UK: no free trade a la carte

Published: 04.07.2016 |

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#EU #United Kingdom

"There will be no single market 'á la carte'" for the UK when it leaves the European Union (EU), according to Donald Tusk, President of the European Council. Tusk made the comment after an informal meeting on June 29 of 27 EU heads of state. It was the first meeting of EU leaders in more than 40 years that the UK had not attended. It followed a June 28 meeting at which UK Prime Minister David Cameron outlined his views on the results of the UK's recent Brexit vote. Tusk said that the EU's remaining leaders "are absolutely determined to remain united and work closely together as 27." He explained that leaders had agreed that "there will be no negotiations of any kind until the UK formally notifies its intention to withdraw." According to Tusk, leaders hope to have the UK "as a close partner in the future." However, they also "made it crystal clear … that access to the single market requires acceptance of all four freedoms, including the freedom of movement. There will be no single market "á la carte'." Tusk added that leaders "have started a political reflection on the future of [the] EU with 27 states." They will meet in Bratislava on September 16 to continue...

Brexit – what doest mean for taxpayers?

Published: 01.07.2016 |

23 of June, 2016 the day when EU became less one more country according to Brexit referendum. The Prime Minister of Great Britain said that in case of this referendum that he that he would resign before the next conference of the Conservative Party it was not entirely unexpected The Prime Minister of Great Britain said that in case of this referendum that he that he would resign before the next conference of the Conservative Party it was not entirely unexpected, in October 2016, but caused even more uncertainty about the next steps for the UK. On the eve of the referendum, Cameron said that if Brexit vote, he will be obliged to immediately refer to the rules contained in Article 50 of the Treaty of Lisbon, as the United Kingdom upon its expiry will be separated from the European Union. Until then, the transnational corporations operating in the UK will continue to work within the framework of existing agreements. These two years, and at any time, the United Kingdom may start negotiations on whether it can be part of the single market and the conditions that will be attached, as well as various other issues. If, at the end of two years, an agreement has been reached to the...

CBI calls for continued UK access to single market

Published: 30.06.2016 | Без категории

Tags:

#EU #United Kingdom

The Confederation of British Industry has called for tariff- and barrier-free access to the EU Single Market should the UK leave the European Union. In a letter to The Times, CBI Director-General Carolyn Fairbairn wrote that the Government "must act with urgency to minimize the uncertainties that affect investment decisions and slow job creation." She also said that the CBI would write to the Prime Minister, the Department for Business, and the Treasury to outline the priorities for achieving this. According to Fairbairn, the UK must now agree the principles that will underpin its new relationship with Europe and the rest of the world. In turn, "the Government should resolve publicly to preserve the openness of the UK's economy, one of its greatest strengths." "In practice, this means seeking to protect tariff- and barrier-free access to the single market of 500 million consumers. It means ensuring companies are able to continue to attract the best people to the UK with the skills we need, while recognizing public concerns about immigration. And, it means setting out clearly how the UK will agree the right international trade deals with the wider world," she...

The law on financial restructuring

Published: 29.06.2016 |

The Supreme Council adopted a law on financial restructuring at June 14. The business community as well as the government agencies (primarily the NBU and the Ministry of Finance of Ukraine) greeted the adoption of this law, because it has a high hopes of resolving the situation with the problem loans and the recovery of the banking system as a whole. Given law establishes a new mechanism of voluntary financial restructuring of debts of enterprises and the resumption of their liquidity. This mechanism provides for the procedure of financial restructuring on the basis of an agreement between the debtor and its creditors. Some skeptics argue that this law duplicates the procedure provided by the law on bankruptcy (the Law of Ukraine "On the resumption of debtor's solvency"), but there are some significant differences between them. For example, the extrajudicial procedure fully stipulated by the law on financial restructuring, while in bankruptcy law describes the procedure "by a court decision." Moreover, the proposed procedure is more flexible on the issue of taking into account the minority interests of creditors. If in the bankruptcy law provided a strict requirement on the...

Germany agrees with stricter IHT rules

Published: 24.06.2016 | news

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#Germany

Germany's main political parties have reached an agreement on long-awaited inheritance tax reforms, with the proposed changes expected to be passed by Parliament by July. Amendments to Germany's inheritance tax law are required after the country's Constitutional Court ruled in 2014 that existing rules breach the principle of fiscal equality. Under Germany's 2009 inheritance tax law, heirs of assets from companies with more than twenty employees are exempt from inheritance tax provided that the business remains operational for at least ten years and that jobs are maintained. It is a system that many argue helps Germany to maintain high levels of employment and enables small and medium-sized businesses to use assets for growth rather than for paying potentially large inheritance tax bills. Inheritance tax rates in Germany can be as high as 43 percent, depending on the relationship between the deceased and the heir. However, others argue that these tax breaks are unfair as they benefit mainly wealthy individuals, while also helping to concentrate large amounts of wealth among a relatively small number of families. Under the changes agreed by the coalition parties, including the...

Ukraine will provide customs reform

Published: 23.06.2016 | Без категории

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#Reforms

The efforts of Ukrainian custom will be focused on providing need human and technical resources for creating suitable conditions for business. Prime Minister Volodymyr Groysman talking on conference said that government particularly want to modernize customs technology, create modern systems of monitoring and surveillance, update update customs software and increase access to global databases, and support the personal development of Ukrainian customs officials. The Finance Ministry in May announced that launching an electronic, automated platform from August 1, 2016, to enable controlling bodies and customs offices automatically exchange data on consignments passing Ukrainian borders. The last time Ukraine paying more attention on the system of customs clearance. Finance Minister Natalie Jaresko asked the tax authority to examine all customs declarations released under the IM40EA procedure, to detect violations and system abuse by customs officers in January 2016. Jeresko said that the system of risk assessment systems are not perfect and sometimes enable customs officials to apply the simplified procedure to companies that actually do not have the right to enjoy this...

EU reaches agreement on Anti-avoidance package

Published: 22.06.2016 |

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#Tax exemptions

European Union (EU) member states have reached a compromise agreement on a proposed new anti-tax avoidance directive. The European Council reached a broad agreement on the draft directive on June 17, subject to a silence procedure. Further details of the arrangements were released on June 21. The directive will be submitted to a forthcoming Council meeting for its formal adoption. The directive sets out five key anti-avoidance measures, which all member states will be required to apply. They are: A controlled foreign company (CFC) rule to deter profit shifting to no- or low-tax jurisdictions. The rule will allow the member state where a parent company is located to tax certain profits that the company "parks" in a no- or low-tax country. It will be triggered if the tax paid in the third country is less than half of that which would have been paid in the member state in question. The company will be given a tax credit for any taxes it paid abroad. An exit tax on assets moved from an EU member state's territory, based on the value of the assets at that point in time. Companies will be obliged to send tax authorities their balance sheets, containing information on their...

OECD recommends US tax hikes

Published: 21.06.2016 |

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#Taxation #USA OECD

In its latest review of the US economy, which was published on June 16, the Organisation for Economic Co-operation and Development (OECD) recommended that increased long-term government spending on infrastructure and education should be funded by higher tax revenues. In particular, the OECD suggested that work towards putting a price on carbon, such as by implementing President Barack Obama's proposal for a USD10 per barrel tax on oil and his Clean Power Plan, would provide additional funds, while also reducing greenhouse gas emissions. Worsening income inequality in the United States could, the OECD suggested, be countered if the Administration was to "expand the earned income tax credit … and make tax expenditures less regressive." For US businesses, the OECD also recommended making the research tax credit refundable for new firms, which are not able to take advantage of the existing non-refundable credit because of low profitability. Such a measure aimed at increasing productivity in the economy would be an alternative to the current congressional patent box proposals that are not favored by the OECD. Few of the OECD's proposals are likely, in fact, to be...

Canada will review preferential tax arrangements

Published: 17.06.2016 |

Tags:

#Canada #Tax exemptions #Taxation

The Organisation for Economic Cooperation and Development (OECD) said that government of Canada need to include Preferential Tax of small business in planned review of tax expenditures. This recommendation was make in the last economical overview OECD of Canada and added that this capital taxable income is not sufficiently focused. "The main aim of this agreement to save small business in a big amount for investing and its make this program more effective. OECD said that depend of analysis result according to decision of federal budget in 2016 to defer a series of scheduled increases to the SBD and it will be seen as moving in a right direction. It added that the Government should also "review its targeted measures and adapt them as necessary to ensure that they correct clear market failures efficiently." The 2016 Budget deferred any further reductions in the small business income tax rate and committed the Government to undertaking a review of the tax system within the coming year, with a view to eliminating poorly targeted and inefficient tax measures. Author: Sergey Panovmanaging partner Finance Business...

Japanese Sales Tax Delay Bad For Credit Rating

Published: 16.06.2016 |

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#Japan #Taxation

Fitch Rating approved long-term credit rating to June 13, but outlook it in the negative light due to recent Shinzo Abe's decision to postpone an increase the consumption tax rate due to take effect in April next year. Eight percent the rate for consumption tax rate was programme to incrase to ten percent in October 2015, but it impossible to do till October 2019. Abe also said that government provide additional actions of financial in this year for resiting continuing economic uncertainties. In press-release credit agency approved taht the outlook revision followed the delay to the tax hike being made without "identifying any specific offsetting measures. Increasing of consiting tax is an essential element in ficsual strategy of government consoladation, the main aim is to to bring the primary deficit of the general account of the central and local governments into balance by the fiscal year from April 2020 to March 2021 (FY20), against a 3.3 percent deficit in FY15," Fitch added. The agency noted that expected for increasing tax rate to get approximatly 0,8 percent of of gross domestic product for deficit reduction. When announcing the delay, the Government said...

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