Monthly Archives August 2010

State Tax Revenues Still Unstable

August 31, 2010 Taxation in USA

Silver QuarterOverall tax revenue figures for US states have risen for the second straight quarter in 2010, however total collections are still lagging behind their pre-recession levels, lending uncertainty to future results.

Overall state tax revenues for the April – June quarter of 2010 are 2.2 percent higher than in the same period of the 2009 year (or, 1.4 percent when adjusted for inflation), according to the Rockefeller Institute’s latest State Revenue Report, released August 30th. However, based on preliminary state tax data, the collections were still 17.2 percent lower than in the same time-frame of 2008.

The national increase for the period consisted of a 1.6 percent rise in collections of Personal Income Taxes (PIT), a 5.9 percent improvement in Sales Taxes figures, and an 18...

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Immigration to Boost Latvian Economy

August 30, 2010 Taxation in Latvia

Latvian flagIn order to bolster economy activity and government revenues Latvia has relaxed several of its immigration restrictions in an attempt to bring in greater levels of foreign capital and skilled employees into the country.

In July 2010 the Latvian Government amended its immigration policies to make it easier for non-European Union investors to obtain legal residency within the country. Under the new rules, non-EU residents can be granted a five-year residency permit if they meet any of the pre-set conditions. Currently the options include investing at least LVL 25 000 (approx. EUR 35 300) in a local business, purchasing real estate exceeding LVL 100 000 (approx. EUR 141 225), or depositing at least EUR 300 000 in a national savings account...

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Mexico Clamping Down On Money Laundering

August 27, 2010 Taxation in Mexico

Felipe Calderon - World Economic Forum Annual Meeting Davos 2009Mexico could soon implement heavy restrictions on the use of cash for large purchases, in an effort to hinder the nation’s overwhelming levels of money laundering.

New laws have been proposed by Felipe Calderon, President of Mexico, to prohibit cash purchases of luxury goods valued in excess of MXN 100 000 (approx. USD 7 700) within the country. The measure is aimed at hampering the use of illicit funds and money laundering through untraceable cash purchases. While announcing the proposal Felipe Calderon explained the reasoning behind the law, saying that limiting the ability of drug traffickers and money smugglers to purchase “large-ticket” items will ruin their ability to easily launder funds. “This illicit money is vital for the criminal. That is what they seek, this money...

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China Weighs Up Large-Scale Reforms

August 26, 2010 Taxation in China

Chinese Embassy SealIndications have arisen that China could soon take steps towards introducing numerous changes to its taxation system, including reforms to Value Added Tax, Resource Taxes, Personal and Corporate Income Taxes, along with property taxes.

The Chinese Government is giving consideration to changes in almost every aspect of the national tax system, in order to improve the overall efficiency of the economy and revamp tax revenue streams. The intention was revealed in a statement by Xu Lin, director of the Department of Fiscal and Financial Affairs, on August 24th.

According to Xu Lin, the Department of Fiscal and Financial Affairs is investigating the feasibility of carrying out reforms which will make property taxes a stable and primary component of local Government bodies’ annual revenues...

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Hairdresser and Drug Councilor Ran Money Laundering Scheme

August 25, 2010 International Tax Cooperation

computer laptop keyboard HP Pavilion Entertainment PCFour UK citizens are facing money-laundering charges after allegedly using online music services to wrongfully receive over USD 300 000 in illicit royalties, with the support of eight individuals who are now charged with fraud.

An investigation by the Metropolitan Police’s eCrime unit (PCeU), with international assistance from the FBI, has resulted in four UK nationals being reprimanded and charged with money laundering, while another eight are being accused of conspiracy to defraud. The group is alleged to have used US-formed companies to upload 20 of their own musical files onto the online services iTunes Store and Amazon, and used over 1 500 stolen credit cards to make repeated purchases of those files...

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