Monthly Archives May 2010

Concessions Expected for UK Capital Gains Tax

May 31, 2010 Taxation in UK

George Osborne, MP (Shadow Chancellor of the Exchequer)The recently proposed rate change to Capital Gains Tax (CGT) in the UK is coming under doubt as economists, finance industry figures and numerous politicians are beginning to voice their concerns for the raised levy.

Following the UK’s May 6th General Election, a coalition was formed between the Conservative Party and Liberal Democrats. The new coalition soon announced several proposed changes to the country’s tax system, including a controversial increase in the CGT rate. If the planned changes are enacted, CGT in the UK will increase from the current 18 percent to 40 percent, the highest rate among western economies. Additionally, the coalition has indicated that the CGT earning threshold will be decreased from GBP 10 000 to GBP 1 000...

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UK VAT and NIC Increases Will Cut Jobs

May 28, 2010 Taxation in UK

ChangesRecent research indicates that the proposed increases to the UK’s Value Added Tax (VAT) rate would dampen consumer spending by GBP 3.6 billion, while lowering national employment by 163,000 over the same period.

On May 27th the British Retail Consortium (BRC) released a statement detailing the alleged future economic effects of the Government’s proposed 2.5 percent VAT rate increase. The BRC claims that the rate change would decrease the Government’s deficit by approximately GBP 11.3 billion within its first year, but at a cost of nearly 30 000 jobs lost throughout the country. Within four years, the figure would increase to 163 000 jobs lost across all employment sectors. Within a year of the rate change, consumer spending is also predicted to fall by approximately GBP 1.6 billion...

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IMF Publishes NZ Fiscal Policy Advice

May 27, 2010 Taxation in New Zealand

International Monetary Fund [oct 25]The International Monetary Fund (IMF) has published a new paper on the potential effect of further fiscal policy changes in the future growth of the New Zealand economy.

On May 26th the IMF published The Potential Contribution of Fiscal Policy to Rebalancing and Growth in New Zealand, a working paper dealing with possible New Zealand fiscal policy rebalancing. The paper stated that New Zealand has weathered the global economic recession relatively well, but will continue to suffer from persistent current account deficits. New Zealand also has low per-capita income levels, when compared to other advanced economies. In response to these two issues, the paper advises decreased Government spending and tax balance shifts for New Zealand.

The paper specifically suggests that the New Zealand Gove...

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Greece to Improve Tax Department Transparency

May 26, 2010 Taxation in Hong Kong

GramvousaThe Greek Government has set out to deliver vast improvements to the integrity of its national tax administration department. The efforts have been initiated with the investigations and dismissal of employees suspected of tax evasion, corruption, smuggling, and other illegal activity.

On May 25th the Finance Ministry of Greece announced a set of sweeping investigations and terminations into employees suspected of illegal activities. According to a statement released by the Ministry, 20 tax-office directors have already been fired for failing to meet preset collection targets. A total of 234 employees have also been selected to be scrutinized for not filing personal tax returns in the 2007-2008 financial year. The property holdings of an additional 70 employees will also be examined...

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Argentina Reports Tax Collection Spike

May 25, 2010 Taxation in Argentina

Cristina Fernandez de KirchnerThe Government of Argentina recently revealed its latest tax collection figures, showing a 30.7 percent increase in collections for the month of April.

On May 24th the Argentinean tax administration Administración Federal de Ingresos Públicos (AFIP) published the Government’s tax collection results. In April the Government collected ARS 30.1 billion (approx. USD 7.75 billion), representing a 30.7 percent increase from April 2009. Cristina Fernandez, President of Argentina, called the latest results “historic”, and further claimed that the increase displays the effectiveness and appropriateness of the Government’s policies.

The AFIP highlighted some of the most impressive increases including a 36 percent increase to income tax payment collection, to a level of ARS 4...

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