New Tax Breaks for Small Businesses in China

October 2, 2014 Taxation in China

Taxes in ChinaBEIJING – Millions of small business in China will enjoy a temporary reprieve from taxes, as the government aims to use tax cuts to encourage more employment and business activity.

From the start of October until December 31st 2015 small businesses in China earning less than RMB 30 000 per month will be exempt from value added tax and business tax, according to information in a new statement issued on September 29th by the State Administration of Taxation.

Previously the tax exemptions were granted to micro-sized businesses with profits of less than RMB 20 000 per month.

The reduced tax obligation are intended to further drive the development and growth of small- and micro-sized businesses, which Premier Li Keqiang has described as on of the main forces behind the economic development of...

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US Ignores 57% of Tax Debts

October 1, 2014 Taxation in USA

Tax Debts in USAWASHINGTON D.C. – The US is losing as much as USD 1.9 billion in tax collections every year because IRS employees give up too easily on recovering previously unpaid taxes.

Earlier this week the Treasury Inspector General for Tax Administration (TIGTA) issued a new report claiming that the US Inland Revenue Service (IRS) does not take all available avenues before declaring that missed tax payments are uncollectable, and that over the course of 2012 agents of the IRS deemed approximately USD 6.7 billion of owed taxes as uncollectable, despite the fact that in 57 percent of these cases IRS employees did not take all required steps to investigate the debts, such as tracing mailing addresses, investigating motor vehicle registration, court records and any other publicly available records.

In ...

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Australia’s Largest Companies Avoiding Taxes

September 30, 2014 Taxation in Australia

Taxes in AustraliaCANBERRA – Australia’s largest companies are actively taking steps to lower avoid their taxes, with 14 percent of companies paying no taxes at all.

Approximately one third of the companies in the Australian ASX 200 pay an effective tax rate of less than 10 percent and 57 percent of the companies have subsidiaries in secrecy jurisdictions, according to the result in a new report issued on September 30th by the independent group United Voice.

The experts of the United Voice noted that alongside the 29 percent of companies which pay less than 10 percent tax on their earnings, another 14 percent of companies pay no tax at all, while the headline tax rate of 30 percent.

The tax avoidance committed by these largest companies in Australia amounts to a loss of tax revenues equivalent to AUD 8...

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Tux Cuts Planned for Austria

September 29, 2014 Taxation in Austria

Tax cuts in AustriaVIENNA – Individuals in Austria will almost certainly enjoy a tax cut by the end of 2016, although the government has not specified how it will funds such cuts.

Over the weekend at a conference held in Schladming the ruling Social Democrats (SPO) party of Austria proposed that at least EUR 5 billion of new tax relief should be provided to taxpayers in 2016.

The tax reduction will come primarily in the form of a cut to the rate of personal income taxes from 36.5 percent to 25 percent for incomes exceeding EUR 11 000, with further tax cuts to be potentially implemented after 2018.

So far no details have been released on how the tax will be funded, but political experts have noted that there is a difference of opinion on this matter between the SPO and its coalition partner People’s Party (...

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Pakistan to Conduct 77 500 Audits

September 26, 2014 Taxation in Pakistan

Tax Audit in PakistanISLAMABAD – Tax authorities in Pakistan are attempting to stamp out tax evasion by conducting a significant number of tax audits on businesses and individuals around the country.

More than 77 500 taxpayers in Pakistan have been randomly selected to have their tax returns audited as part of the government’s annual random audit selection process, which took place on September 25th.

The 75 000 taxpayers were selected across six different categories, with 1 876 audits of corporate income tax filings, 63 050 audits of individual income tax filers, 1 410 audits for sales tax by corporate entities, 11 095 audits of sales tax from individuals, 45 audits of corporate filers of federal excise duties, and 24 audits of federal excise tax by individuals.

The number of audits to be conducted this y...

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