New Zealand Could Save $3.87 Billion Though Tobacco Tax

July 29, 2015 Taxation in New Zealand

WELLINGTON – The New Zealand government could save billions in healthcare costs if the government maintains its firm stance of annual tax hikes on tobacco products.

Earlier this week researchers at the University of Otago released the results of a new study showing that the country will see significant savings in health care costs, if the government persists with regular hikes to the rate of taxes levied on the sale of tobacco products.

The research simulated the impact that tobacco taxes would have on the instance of 16 various diseases commonly faced by smokers in New Zealand.

It was shown that continuing to raise tobacco taxes by 10 percent each year will result in the saving of 260 00 quality adjusted life years by 2031.

The decrease in the instance of the diseases will result in t...

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Australia Eyes GST on All Online Purchases

July 29, 2015 Taxation in Australia

CANBERRA – All online purchases in Australia could soon face GST, regardless of the price and the location of the supplier.

In radio interview on July 27th the Treasurer of Australia Joe Hockey indicated that the government may impose GST on all goods purchased online, with no threshold applied for low-value goods.

Currently, GST is not applied on imported goods valued at less than AUD 1000.

Recently it has been proposed that the threshold be lowered significantly in order to capture online services such as Netflix.

The proposal was for the threshold to be set at AUD 20, however, during the interview the Treasurer indicated that the threshold could be removed entirely, with the tax being applied to absolutely all purchases.

While discussing the practicality of collecting the tax, the Tr...

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New Zealand May Look At Stamp Tax on Property

July 28, 2015 Taxation in New Zealand

WELLINGTON – The New Zealand government may impose a tax on overseas investors purchasing property int he country, in an effort to cool escalating house prices.

In a statement made on July 28th the Prime Minister of New Zealand John key indicated that the government may consider imposing a stamp duty, or other similar tax, on foreign citizens buying property.

Currently there is significant controversy in New Zealand caused by rising property prices, especially in Auckland, with a portion of the blame being put on foreign investors.

The government is currently claiming that there is not enough data to verify whether the rising prices of houses can truly be attributed to an influx of foreign buyers.

However, data on the residence of property buyers will be collected by national tax authori...

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Vietnam Shames Tax Evaders

July 24, 2015 Taxation in Vietnam

HANOI – The government is publicly naming businesses with overdue tax obligations, before resorting to taking the money directly from the offenders’ bank accounts.

The government of Vietnam is using name-and-shame tactics to coerce businesses with overdue tax obligations to pay up.

The national tax authority has issued a public list naming 600 companies with tax debts which were at least 121 days old at the end of June.

The total of the taxes owing by the delinquent businesses is approximately VND 12.658 trillion.

The new tactic has already seen moderate success with at least 10 percent of the businesses coming forward already to pay back all the overdue taxes, with even more coming forward to pay back a portion of the taxes owed.

The tax authorities are reputed to have leaked similar li...

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Brazil Launches Tax Debt Incentive Program

July 23, 2015 Taxation in Brazil

BRASILIA – Brazil will be offering companies the opportunity to pay off tax debts by trading in current tax credits.

On Jul 22nd the government of Brazil announced a new program allowing business to reduce their tax debts through tax credits.

Businesses which have outstanding tax debt will now have until September 30th to join a program whereby tax credits related to non-operating losses can be used to reduce taxes owed, instead of being cashed in.

The tax credits can be used to pay up to a maximum of 57 percent of the tax debt, with the remainder to be paid in cash.

It is currently estimated that as many as 29 000 companies will be eligible to take part in the program, potentially using up as much as BRL 860 billion in tax write credits.

The new measure is intended to help the governme...

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