Yearly Archives 2009

Credit Card Non-Payment Rises

December 31, 2009 Taxation in USA

commerce bank card 3Consumer payment of credit card bills is falling in the US, with continued late-payment and un-collectible rates rises: revealed in Moody’s Credit Card Charge-Offs, Delinquencies Rise in November, released on December 29th.

In November the balance of US credit cards deemed to be un-collectible rose to 10.56 percent, fifty basis points higher than in the previous month. The charge-off rate on US credit cards is expected to rise further to 12 to 13 percent in mid 2010. The delinquency rate, a measure of debts that are 30 to 180 days late, has also risen to 6.2 percent. The average principal payment rate on credit card slipped by 0.89 percent to 16.42 percent. The excess spread and the yield on credit cards fell to 7.7 and 21.09 percent, respectively.

On a single positive note, the measure ...

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€95 Billion Yielded in Tax Amnesty

December 30, 2009 Taxation in Italy

TREMONTI GiulioIn excess of €95 billion of previously undeclared assets, almost €15 billion more than initially anticipated, have been disclosed to the Italian government in the country’s latest tax amnesty.

Assets worth nearly 6 percent of the national GDP have been declared by Italian nationals during the tax amnesty, and 98 percent of the amount has already been transferred back to Italy, mainly from offshore tax havens. The successful result of the controversial tax amnesty was announced in a statement of Economy Ministry on December 29th. This was the fourth, and, so far, most successful tax amnesty program initiated by the Government on September 15th, 2009.

The tax amnesty provides an opportunity for Italian nationals to disclose their undeclared assets in exchange for a reduced to 5 percent...

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Australian State Tax Report Released

December 29, 2009 Taxation in Australia

Another Opera House PhotoThe average business in South Australia faces a higher tax burden than in any other state across the country. The conclusion is drawn by the Australian Institute of Public Affairs (IPA) in the report Business Bearing the Burden 2009
released in the last days of the passing year.

The report examined the impact of state taxes across Australia on a medium sized business. According to the report, the tax liability in South Australia was ranked as highest, despite having the lowest payroll taxes in the country. With average annual tax obligations of AUD247,437, the South Australian businessmen pay almost AUD5,000 more than their colleagues in Western Australia.

The report revealed large differences between states in the five key taxes: payroll taxes, land taxes, land transfer duties, stamp dut...

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UK Income Tax Dividend Credit Expanded

December 24, 2009 Taxation in UK

Day 62On December 18th, the UK’s HM Revenue & Customs released a brief Changes to the Income Tax Credit for Foreign Dividends. The changes will affect shareholders in offshore funds and in foreign companies with holdings of 10 or more percent of issued share capital, with more taxpayers now eligible for dividend tax credits.

Shareholders in offshore funds will be evaluated by whether they have holdings in equity based funds, or those heavily invested in interest bearing assets. Individuals with receiving distributions from equity based funds will now be entitled to dividend tax credits. Distributions from funds with over 60 percent of their assets being interest bearing, will be recognized as interest distributions and taxed accordingly.

The dividend tax credit has been extended to cover share...

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Japan Releases Annual Tax Guidelines

December 23, 2009 Taxation in Japan

Yukio Hatoyama, Japan's next leaderOn December 22nd, the Japanese Government revealed its tax reform plan for the fiscal year beginning April 1st, 2010.

The newly published tax guidelines are aimed at decreasing Japan’s public debt figure, which is currently at an approximated 180 percent of GDP. In order to achieve the goal, the tax plan will attempt to support Prime Minister Yukio Hatoyama’s earlier announced intentions of maintaining Japanese Government Bond issuance at JPY44 trillion (USD483 billion).

The most controversial announcement of the tax reform is replacing surcharges on gasoline sales with a tax charged at the same rate. The move comes contrary to Prime Minister Yukio Hatoyama’s election campaign where he promised to abolish the gasoline levy...

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