Monthly Archives February 2011

New Gambling Tax in South Africa Causing Furor

February 28, 2011 Taxation in South Africa

New Gambling Tax Causes Furor A newly announced gambling tax could heavily damage South Africa’s horse racing industry and lead to job cuts across the country’s entire gambling sector.

Over the weekend prominent figures from the South African gambling industry have stood up in protest against a newly announced tax on gambling winnings. The tax was announced on February 23rd by the Finance Minister of South Africa Pravin Gordhan in the latest government budge. The Minister revealed that winnings on gambling activity would now be subject to a new 15 percent withholding tax from April 2012.

Commenting on the newly announced measure Lisa Haines, director of South Africa’s biggest sport betting outlet SportsBet, labeled the levy as “ridiculous”, saying that it was the third levy that gamblers would be subject to, aft...

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Tax Burdens Examined Across US States

February 25, 2011 Taxation in USA

Tax Burdens Examined Across US StatesUS states, which rely heavily on tax revenues from out-of-state residents, have been shown to be able to impose a significantly lower tax burden on local residents.

On February 23rd the Tax Foundation released a new report regarding the tax burdens faced by taxpayers across different US states, with an investigation into the proportion of a state’s tax revenues that are collected from out-of-state residents.

The newly published report examined the cumulative effects of state- and local-level taxes on US taxpayers throughout the 2009 year. The state of New Jersey was found to have the highest level of such taxes, at a rate of 12.2 percent. Rates in New York and Connecticut were the second and third largest respectively, with a cumulative rate of 12.1 percent and 12.0 percent...

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Gang Jailed for Laundering GBP 49 Million

February 24, 2011 Taxation in UK

Five pound noteA UK based gang has received cumulative sentences of 24 years jail time for a GBP 49 million money laundering scheme revolving around five pound notes, secret codes and text messages.

On February 23rd the HM Revenue and Customs (HMRC) released an online statement, revealing that several members of a UK based gang have been sentenced to jail time for their part in the laundering of GBP 48.6 million for criminal gangs in the UK, including the UK’s most prominent marijuana smuggler, between May 1st 2007 and September 30th 2008.

The investigation and prosecutions were centered around the website R2PK, which offered online money transfer services. The site was run by Tanveer Jaffery, the alleged ringleader of the laundering gang, who later came to be dubbed “Mr. Persil”...

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HMRC Seeks Compliance Through “Intrusive Intervention”

February 23, 2011 Taxation in UK

Twenty PenceThe UK HM Revenue and Customs is set to launch a new program which will bombard known tax evaders with extra filing requirements and unannounced financial record inspections, in the hopes of reducing tax non-compliance.

On February 22nd the HM Revenue and Customs announced the launch of the Managing Deliberate Defaulters (MDD) program, which will see known tax evaders placed under greater scrutiny of tax authorities for a period of five years.

According to the HMRC, the program will apply to individual taxpayers and businesses which have been caught attempting to evade tax liabilities of GBP 25 000 or more. The program commenced upon its announcement, and will begin with the HMRC sending letters to approximately 900 taxpayers, with a warning that they are now in the MDD...

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France Brings Back Financial Transaction Tax Argument

February 22, 2011 International Tax CooperationTaxation in France

Sarkozy expressions 8France is once again urging governments across the world to instate an extensive financial transactions tax, saying that it would be an ideal tool for raising funds towards environmental and development projects, while reducing the occurrence of excessively risky speculative activities by financial institutions.

At the recent weekend’s meeting of Finance Ministers and Central Bank Governors from G20 nations in Paris, France came forward to once again spearhead a drive for an international financial transactions tax (FTT)...

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