Monthly Archives January 2011

Eastern European Women Used in Multi-Million Pound Tax Scam

January 28, 2011 International Tax CooperationTaxation in UK

HM Revenue & CustomsA key member of a London based gang has been jailed for recruiting Eastern European women to cheat the HM Revenue and Customs out of GBP 3.3 million.

Ricardas Virokaitis, a 37 year old Lithuanian national residing in London, was jailed on January 26th for five years, after pleading guilty to conspiracy to cheat the public revenue to an amount of GBP 3.3 million.

The case prosecutor alleged that Ricardas Virokaitis and his gang recruited women from across Eastern Europe to travel to the UK and falsely register for tax credits and social benefits under fake identities. The women would be sent back to their home countries, while their payments would continue to be deposited into bank accounts accessible by Ricardas Virokaitis and his associates...

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Taxes Dispute Could Incite Canadian Election

January 27, 2011 Taxation in Canada

LoonieThe escalating dispute over the future of Canada’s corporate tax rate could cause an early general election, if the ruling Conservative Party is not able to drum up support for its tax plans, and pass the upcoming budget.

During a press conference in Oshawa, Ontario on January 26th, the Finance Minister of Canada Jim Flaherty discussed potential changes to Canada’s corporate tax rates, and revealed the government’s intention to instate personal income and corporate income tax rate cuts in the near future. Explaining the need for lowered corporate rates he said, “If we want more jobs, higher wages, an improved standard of living for all of us, Canada needs to be an attractive place for job-creators to do business and invest.”

As of January 2011 the federal corporate tax rate has stood...

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Tax Amnesty for India’s Tax Offenders

January 26, 2011 International Tax CooperationTaxation in India

Pranab MukherjeeThe Finance Minister of India has announced that a tax amnesty could be initiated in the near future, with the aim of bringing back capital hidden in offshore accounts.

On January 25th the Finance Minister of India Pranab Mukherjee indicated at a press conference held in New Dehli that the Government was not averse to the idea of initiating a tax amnesty for tax offenders to declare their illicit financial actions in return for reduced penalties. The announcement was part of the Government’s new push against tax evasion and illicit capital flows, which includes the establishment of new committee to investigate the realities of capital outflows from India.

Upon valuing the extent of illicit capital flows from India, the committee will be charged with exploring potential remedies to the si...

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India Exceeds Tax Target by USD 812 Million

January 25, 2011 Taxation in India

Going for broke ...India’s tax revenue estimates for the current fiscal year have been revised upwards by 4 percent, after continued high-levels of economic growth throughout 2010.

On January 25th the Revenue Minister of India Sunil Mitra announced that the Government has significantly raised the national tax collection estimates for the 2010 – 2011 fiscal year. The overall revenue estimate has been hiked by a substantial INR 37 billion (approx. USD 812.2 million), to a total of INR 782 billion (approx. USD 17.2 billion).

The reviewed tax target is primarily comprised of an INR 16 billion (approx. USD 351.3 million) forcasted hike in the direct tax collection target, and an INR 19 billion (approx. USD 417.5 million) increase in the indirect tax estimates...

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Developing Nations Loose USD 6.5 Trillion Since 2000

January 24, 2011 International Tax CooperationOffshore BankingOffshore TaxationTax Havens

Cash DepositTax evasion, trade mispricing, bribes, and other forms of illicit financial activity caused nearly USD 1.26 trillion to flow from developing nations into wealthier countries in 2008, with the rate growing by an average of 18 percent since the year 2000.

Last week Global Financial Integrity (GFI), an independent international body aimed at eliminating the occurrence of illicit cross-border flow of capital, released the latest annual report on the severity of illicit outflows across the developing world.

The report stated that the magnitude of illicit capital outflows out of developing nations has increased by 18 percent per year since the year 2000, if viewed in current dollar terms. At the beginning of the decade illicit flows totaled approximately USD 369...

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