EU Countries May Enact Their Own Digital Tax

September 21, 2018 International Tax Cooperation

internet taxBRUSSELS – The EU’s proposed tax on global digital companies has seen continued delays, so some member states may soon take matters into their own hands.

The Director if the Centre for Tax Policy and Administration at the OECD, Pascal Saint-Amans, has suggested that the EU may see the implementation of a temporary digital tax on the revenues of global internet giants.

The EU is currently investigating the possibility of levying a new tax on the earnings of digital behemoths such as Facebook and Google, in an effort to prevent the companies from avoiding taxation by shifting their profits away from the countries where sales are made and towards low-tax jurisdictions.

However, finding consensus on the exact details and functionality of such a tax is proving to be difficult.

Pascal Saint-Am...

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NZ Tax Working Group Talks Capital Gains

September 20, 2018 Taxation in New Zealand

Taxes in New ZealandWELLINGTON – New Zealand should tax capital gains, but maybe not via a capital gains tax.

The New Zealand Tax Working has released its Interim Report with a discussion on potential tax changes which may be recommended for the country, including a tentative approval of a capital gains tax.

The Tax Working Group was established by the Labour-led government and tasked with evaluating what changes should be enacted in the New Zealand tax system.

The question of a capital gains tax is a contentious one in New Zealand, as investors in the country have a strong preference for investment in property, due in part to a lack of capital gains tax.
It was noted that introducing a brand new capital gains tax would prove to be complicated.

As a potential alternative, the report mentions the possibility...

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Irish Authority Tacking Down Airbnb Incomes

September 19, 2018 Taxation in Ireland

airbnb in irelandDUBLIN – 12 000 taxpayers in Ireland are being asked if they have paid all taxes owing on their Airbnb incomes.

The Revenue Commissioners of Ireland is sending out letters to thousands of homeowners in the country who are using Airbnb to rent out their properties.

As many as 12 000 taxpayers across the country will soon receive letters reminding them that if they rented out their properties on the popular short-term letting site they may be liable to pay taxes on any of their derived incomes.

Any incomes made from Airbnb must be declared, or the taxpayer will be liable to pay fines and penalties on top of the owing interest.

The letters are being sent based on information obtained from Airbnb regarding rentals over the course of 2014, 2015, and 2016.

Neither the Revenue Commissioners ...

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Major Pharmaceuticals Dodging NZ Taxes

September 18, 2018 Taxation in New Zealand

drug companiesWELLINGTON – Oxfam is claiming that pharmaceuticals are “cheating” New Zealanders out of millions in taxes.

On September 18th the New Zealand wing of Oxfam International issued a press release claiming that major drug and pharmaceutical companies are underpaying their taxes by millions each year.

Oxfam claims that drug companies are “cheating New Zealand out of millions in tax revenue” by shifting their profits to low-tax jurisdictions.

By moving their profits out of New Zealand, the companies are able to bypass paying income tax on their actual earnings made from New Zealand activity.

According to the Oxfam New Zealand, over the years between 2013 and 2015, the total amount of approximately NZD 21 million of potential tax revenue was unfairly unpaid by the Pfizer, Merck, Johnson & ...

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France Eases Back From Exit Tax

September 17, 2018 Taxation in France

France Exit TaxPARIS – France is watering down its punitive tax on the assets of wealthy individuals who leave the country.

The government of France is altering the conditions of its infamous “exit tax” and limiting the conditions under which ex-taxpayers of France are liable to pay a tax on the capital appreciation of their assets.

Previously, individuals who left France, and subsequently transferred their domicile for tax purposes, were liable to face an effective tax rate of 30 per cent on their capital gains for a period of 15 years.

The time limit for the tax has now been shifted to a mere 2 years.

The tax is applicable to individuals who have previously lived in France for 6 consecutive years, and have either a 50 per cent shareholding in a company moved to France or at least EUR 800 000 in ...

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