Monthly Archives April 2010

UK Needs Tax Rise for Financial Safety

April 30, 2010 Taxation in UK

Dirty MoneyA new report from a prominent UK think-tank has recommended increases to personal taxation, and full implementation of Value Added Tax (VAT), along with significant public spending cuts. The proposed changes are claimed to be necessary in order to decrease the Government deficit sooner.

On April 30th UK’s National Institute of Economic and Social Research (NIESR) released the quarterly Prospects for the UK Economy report, which valuates the current state of the UK economy. According to the report, the UK economy is in worse shape than commonly portrayed by politicians, and drastic changes will need to be made to rectify the situation...

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New Salary Laws for Switzerland

April 29, 2010 Taxation in Switzerland

Doris Leuthard - World Economic Forum Annual Meeting Davos 2008The Federal Council (FC) of Switzerland has instructed the Swiss Federal Department of Finance (FDF) to create three new pieces of legislation regarding salary schemes and compensation practices, targeting primarily inappropriate pay packages in financial institutions.

In a meeting held on April 28th the FC issued a directive to the FDF to create drafts for three new laws concerning the regulation and taxation of compensation issued in Switzerland. With the current international focus on financial sector salaries and bonuses, Switzerland has already begun making strides toward stricter compensation regulations. The current proposed legislation changes are aimed at supplementing current standards and binding them into law, while allowing for competitive remuneration and industry stability.

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Australian Tax Revenues Fell in 2009

April 28, 2010 Taxation in Australia

Australian Bureau of StatisticsAccording to the latest report by the Australian Bureau of Statistics (ABS), the country’s tax revenues fell during the last financial year. The total tax take, across all Government levels, fell to 26.9 percent of the GDP, compared to a level of 29.5 percent of GDP in 2007-08 fiscal year.

On April 27th the ABS published the latest issue of Taxation Revenue, Australia, 2008-09, containing statistics of revenues collected by tax authorities on a Commonwealth, state and local level. The publication reveals that the Australian Government’s annual tax collection fell by AUD 9.45 billion (approx. USD 8.74 billion) to AUD 338.9 billion (approx. USD 314.2) in the 2008-09 financial year. The total tax collection represents 26.9 percent of the national GDP, a fall of 3...

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IMF Identifies ASEAN Economic Challenges

April 27, 2010 International Tax CooperationTaxation in ChinaTaxation in SingaporeTaxation in ThailandTaxation in Vietnam

ASEAN London CommitteeIn a recent speech given by the Deputy Managing Director of the International Monetary Fund (IMF) to the Finance Ministers of the Association of Southeast Asian Nations (ASEAN), the key economic and fiscal issues, that the IMF perceives as currently facing ASEAN nations, were revealed.

On April 26th the IMF published a previously unreleased transcript of a speech given by Naoyuki Shinohara, Deputy Managing Director of the IMF, at the 14th ASEAN Finance Ministers’ Meeting, held on April 8th 2010 in Nha Trang, Vietnam. The speech focused on the key economic challenges the IMF perceives as facing ASEAN member nations...

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UK Firms Pay Dividends Early to Minimize Taxes

April 26, 2010 Taxation in UK

Big Ben clock faceUK based companies are opting to make early than scheduled dividend payouts in order to avoid increased personal taxation obligations for recipients.

On April 26th UK company registrar firm Capita Registrars released a report indicating that many UK companies are opting to make early dividend payments, in order for shareholders to avoid the recent top personal-tax rate increase. On April 6th the marginal tax rate for taxpayers earning above GBP 150 000 rose to 50 percent, from the previous level of 40 percent. An estimated GBP 842 million in dividend payments were brought forward. The report cited largely anecdotal evidence to support its assumption...

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