Monthly Archives December 2010

Pakistan Needs New GST System

December 31, 2010 Taxation in Pakistan

Rupee ,Currency of Pakistan ( Coins )At a recent conference Pakistan’s potential Reformed Goods and Service Tax was discussed in detail, with experts agreeing that the tax needs to be implemented as soon as possible to ensure the country’s economic health.

On December 30th the Pakistan Institute of Development Economics concluded a three-day conference, concerning the current financial situation and future economic outlook of the country, held in Islamabad. Among the numerous discussions held at the conference was a series of presentations about the potential implementation of a Reformed Goods and Service Tax (RGST) in Pakistan.

Speaking on the second day of the conference Dr Hafiz Pasha, a leading academic economist, claimed that the country’s fiscal future would experience a strong downward spiral unless RGST is implement...

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VAT Increase Delays Tax Freedom Day

December 30, 2010 Taxation in UK

Few PoundsThe UK Government’s upcoming increase to the national Value Added Tax rate will push the country’s Tax Freedom Day back by three more days.

On December 29th the UK Adam Smith Institute (ASI), an independent financial think tank, revealed that the average UK taxpayer will spend approximately 149 days worth of income in 2011 just to pay their personal tax bill. The Institute completes the calculation every year, based on the latest average earnings levels of UK taxpayers and the country’s applicable tax rates. The calculated date is commonly referred to as the national Tax Freedom Day (TFD).

The UK TFD date for the 2011 year will fall on May 30th, compared to May 27th in 2010...

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New Developments to China’s Tax Policy

December 29, 2010 Taxation in China

Pantalla China / Chinese LanternThe Finance Minister of China has revealed the country’s fiscal policy intentions for the upcoming year, saying that the Government will focus its tax system development efforts on improving national income distributions and aiding low-income areas across the country.

On December 27th the Finance Minister of China Xie Xuren spoke at the National Financial Work Conference which took place in Beijing, explaining the Government’s fiscal policy outlook for the 2011 year. He stated that a set of proactive policies will be implemented in response to the changing international economic environment and its effect on the population of China. He added that the Government’s policy intentions are also aimed at promoting sustainable and strong economic growth in China.

The Finance Minister summarized t...

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Belgium Clarifies Ambiguous Tax Law

December 23, 2010 International Tax CooperationOffshore TaxationTax HavensTaxation in Belgium

Angel & National Flag of Belgium, Martyrs' Square - Place des Martyrs - Martelaarsplaats, Brussels, BelgiumBelgian tax authorities have clarified their standing on a one-year old tax law on fund transfers to tax havens, after tax professionals claimed that the new rules were unclear and in need of more specifics.

Recently the tax authorities of Belgium released a long-awaited circular intended to clarify a tax law that was introduced into the Belgian tax code on December 23rd 2009. The law concerned the reporting requirements for Belgian resident and non-resident business entities operating in the country which transfer funds or make payments to tax haven jurisdictions.

The law became effective on January 1st 2010, although the concerning legislation was largely regarded as unclear and ambiguous...

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HMRC Recovers 8.5 Billion in Evaded Taxes

December 22, 2010 Taxation in UK

PW003-19A new report is praising the British tax authorities for its recent performance in conducting investigations on taxpayers alleged of carrying out tax evasion and fraud.

Last week the UK National Audit Office (NAO), an independent body responsible for auditing the accounts of all UK government departments, released the results of a new study into the HM Revenue & Customs’ (HMRC) procedures and effectiveness of conducting tax fraud investigations. It was shown in the report that since the 2007-2008 financial year, the HMRC has greatly improved its results in retrieving tax revenues originally lost due to tax evasion.

During the 2009 – 2010 fiscal year the HMRC investigations into tax evasion led to the recovery of GBP 8.5 billion, a 49 percent improvement over the 2007 – 2008 period...

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