September 17, 2014 Taxation in Kenya
NAIROBI – Kenya will once again levy a capital gains tax, despite warnings that such a measure could hamper the country’s economic growth.
In a statement issued on September 14th the government of Kenya confirmed that a new capital gains tax shall be implemented in the country from January 1st next year.
The upcoming tax will be levied at a rate of 5 percent, and is expected to raise as much as USD 85 million per year to be used to fund new development projects aimed at boosting economic growth and creating more jobs in Kenya.
Despite the potential benefits that the tax may have on the country, some experts have warned that imposing a capital gains tax may have unintended negative consequences on the country, as it may push away foreign investors, and may slow down the rapid growth of th...Read More
September 16, 2014 Taxation in USA
WASHINGTON D.C. – Taxes in many states of the USA are unfair, and do not correspond to taxpayers’ perceptions of how a tax system should be set up.
On September 15th the independent US-based consumer group Wallet Hub released the results of a new survey on the perceived fairness of tax systems in the states of the USA, showing that individual taxpayers believed that local and state taxes should be progressive, with the well-off paying a higher portion on taxes.
According the results of the survey, the states with tax systems which most correspond with taxpayers’ perception of a fair tax system are Montana, Oregon, South Carolina, and Delaware, while the least fair systems were found to be in Washington, Hawaii, Arkansas and Illinois.
The perceived unfairness of a tax system was judged ...Read More
WASHINGTON D.C. – US tax authorities are not acting on complaints about tax professionals, with some reports remaining ignored for more than 2 months at a time.
The US Inland Revenue Service does not possess the necessary processes required to ensure that complaints about tax preparers are handled in an effective and timely manner, according to information contained in a new report issued last week by the independent watchdog Treasury Inspector General for Tax Administration (TIGTA).
The experts of TIGTA examined the records of 8 354 complaints about tax prepares received by the IRS during the 2012 and 2013 calendar years, and found that no work has yet even begun to address the issues raised in 3 953 of the report.
Further, at the time of the examination, 1 920 of the complaints had been...Read More
September 13, 2014 Taxation in South America
QUITO – Ecuador will use taxes to encourage locals to consume less foreign fast-foods, and eat more locally produced healthy foods.
Over the weekend the President of Ecuador Rafael Correa announced that the government is currently considering implementing a new tax on unhealthy foods, such as fast foods and nutritionally empty fast foods.
Explaining the need for a tax on unhealthy foods, the President said that :”…People are dying from bad food, not a lack of food. People will stop eating so many McDonald’s and Burger King hamburgers [with the tax]. This favors the production of our traditional gastronomy.”
The exact details of the tax have not yet been revealed, but the president did indicate that the tax is aimed at large fast-food outlets and major international chains, such as 30 M...Read More
September 11, 2014 Taxation in Chile
CHILE – The government of Chile will use an array of new tax hikes to fund universal free education in the country.
On June 11th the Congress of Chile voted on and approved a new tax reform bill, which will raise taxes and provide funding for new projects aimed at reducing inequality in the country.
Under the conditions stipulated in the reform bill, the government will drop the current Taxable Profits Fund, which allows companies to obtain tax credits for reinvesting their profits.
Corporate tax system will also be overhauled, with companies now given the option of either paying 27 percent corporate income tax, with the ability to claim limited tax deductions for reinvesting some profits into pre-approved activities, or the alternative choice of paying a headline rate of 25 percent on cor...Read More