Monthly Archives January 2010

Australian Inflation Remains Low, Economy Underutilized

January 29, 2010 Taxation in Australia

Financial crisis will hurt jobs, Swan warnsNewly released Australian Consumer Price Index (CPI) figures show that the country’s inflation was 2.1 percent for the first two quarters of the current financial year, at the lower end of the Australian Reserve Bank’s (ARB) target spectrum.

Although the relatively small inflation is gladly greeted by consumers across the country, ARB economist claim that it is indicative of an economy that is not being fully utilized and has room for further growth. The newest figures, released on January 27th, represent a 0.5 percent growth in the CPI, down from 1.0 percent in September. Underlying inflation for the December quarter was 0.6 percent, 0.2 percent below the September quarter.

According to a media release by Wayne Swanson, Treasurer of Australia, the primary contributors to the rise in ...

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South Africa Sets Record Tax Year

January 28, 2010 Taxation in South Africa

I hate tax returns!The South African Revenue Service (SARS) has announced that the 2009 year broke records in tax return efficiency, filing and improved compliance.

In a media release the SARS announced that the 2009 tax season had set “phenomenal” new records. The number of tax returns submitted by the November 20th deadline rose by 26 percent, exceeding 4 million for the first time. Individual tax return filing, including overdue 2008 returns, reached 3.9 million. Approximately 79 percent of individual tax payers filed their tax-returns before the deadline, compared to 58 percent in 2008. Electronic filing of individual returns rose by over 100 percent and surpassed 2 million for the first time...

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Four Nations Under EU Commission Scrutiny

January 27, 2010 International Tax CooperationTaxation in EU

Economic downturn.Malta, Latvia, Lithuania and Hungary are scheduled to appear in front of the European Union Commission (EC) to determine whether the countries have undertaken enough suitable action to address their ailing financial situations.

The meeting which was scheduled for January 27th, is part of the EC Excessive Deficit Procedure, initiated for all four countries when they posted national deficits that were considered to be too large. The procedure is aimed at determining whether each nation has taken adequate efforts to cut public spending and build public finances in order to improve primary economic sectors. Failure to take necessary measures could result in EU penalties or sanctions.

The EC Excessive Deficit Procedure is applied to any EU nation whose deficit reaches above 3 percent of nationa...

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Tax Wrongdoing Pamphlet Issued

January 26, 2010 Taxation in UK

100 Parliament StreetThe UK’s HM Revenue & Customs (HMRC) has published a pamphlet outlining new penalties for abuse of the Value Added Tax (VAT) and Excise system.

On January 25th the HMRC made available a pamphlet outlining their new VAT and Excise Wrongdoing penalty system, which will be enacted on April 1st, 2010. The offenses listed within the pamphlet are: the issuance of an invoice with VAT which the issuer was not entitled to charge, handling of goods on which Excise Duty has not been deferred or paid, using a product in a way which would mean that higher Excise Duties should have been paid on it, or providing products with a lower rate of Excise Duty than its use would entail.

The penalties are charged as a percentage of potential revenue lost by the HMRC, with the rate varying upon circumstance of ...

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IRS Issues Tax-Exempt Status Loss Warning

January 25, 2010 Taxation in USA

washdc040208-02The US Internal Revenue Service (IRS) has issued a warning to non-profit organizations that they could be in danger of losing their tax-exempt status in 2010.

On January 21st the IRS issued a news release reminding all US tax-exempt organizations that Pension Protection Act of 2006, which was enacted in 2007, requires them to file their annual information forms annually, or face losing their status after three consecutive non-filings. This year will be the first in which the law will be enforced. The information of all non-compliant entities will subsequently be published and made available to both state tax and charity officials...

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