Monthly Archives March 2011

Carbon Tax Fraud: Germany Hopes to Recover Millions of Euro

March 31, 2011 Taxation in Germany

Carbon Tax Fraud: Germany Hopes to Recover Millions of EuroGermany is looking to recover millions of euros in previously evaded taxes, as charges are filed against directors of companies accused of carrying out carbon credit tax fraud.

Germany’s investigations into carbon dioxide tax credit fraud are coming to fruition, with prosecutors filing charges against six individuals accused of being responsible for over EUR 230 million in evaded taxes. The legal actions were announced in a statement on March 30th by Guenter Wittig, prosecutor for the Office of the Attorney General of Germany.

According to Guenter Wittig, the six alleged tax evaders were directors of companies who are accused filing incorrect tax information and intentionally making false statements to German tax authorities between September 2009 and April 2010...

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Corporate Loans Tax in Brazil Raised, Again

March 30, 2011 Taxation in Brazil

Brazilian Reals / ReaisTo address the problem of tax revenues floating overseas, the government of Brazil is once again increasing the tax rate on corporate loans and banks’ debt-selling abroad.

In an effort to lower the exchange rate of the national currency, on March 29th the President of Brazil Dilma Rousseff announced a decree instating a tax rate increase on international borrowing by Brazilian banks and companies. Active immediately, the decree mandated that overseas loans issued by corporate bodies in Brazil be subjected to a 6 percent tax. The current rate, introduced for the same goal in November 2010, is 5.38 percent. As part of the updated protection measures, the new level will apply to loans issued for periods of less than one year, compared to the current timeframe of only 90 days...

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Japan Sees Radical Turnaround in Tax Plans

March 29, 2011 Taxation in Japan

Naoto Kan - World Economic Forum Annual Meeting 2011In an effort to shore funds for the reconstruction of the disaster struck Japan, the government is considering cancelling the planned cuts to the national corporate tax rates.

The government of Japan is indicating that it could drastically change its previously held plans for the economic development of the country. The economic strategies have been a long standing-block for Prime Minister Naoto Kan, and one of the central points of debate with the Liberal Democratic Party (LDP), the largest opposition party in Japan. Corporate tax cuts were a fundamental principal in the Prime Minister’s plans for the expansion of the country...

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Kenya’s Economy Would Be Crippled By Air Tax

March 27, 2011 Taxation in Kenya

Kenya Airways - Pride of AfricaKenya’s newly proposed air fare tax has been blasted by the airline and tourism industries, with the charge being described as “haphazard” and a means of covering for ministry failures.

Over the weekend Kenya’s tourism sector voiced its disapproval for the government’s plan to introduce a new air fare levy to the national tax system, with commenters saying that it would lower visitor numbers and ultimately lead to seriously negative impacts to the economy.

The proposed levy was revealed last week by the Public Health and Sanitation minister Beth Mugo, who said that the raised revenues would be used for treatment and care of HIV sufferers. According to the released plan the tax would be instated on all outbound tickets at a rate of no more than KES 180 (approx. USD 1.90)...

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Philippines Cracks Down on Smugglers, to Raise Revenue

March 25, 2011 Taxation in Philippines

New 20 Philippine Peso BillThe Philippine’s two primary tax agencies are considering a new cooperative project aimed at reducing smuggling and tax evasion by companies registered in the Philippines.

In a statement released on March 24th the Bureau of Internal Revenue (BIR) of the Philippines announced its new proposal for the Bureau of Customs (BOC), which would require local companies to present their latest income tax returns before being granted clearance for their imports.

According to the BIR, the new obligations would allow the two tax agencies to cut down on the use of “dummy corporations” for tax evasion and smuggling. Finance Secretary Cesar Purisima commented on the proposal, saying; “…this is once again a sign of greater cooperation between BIR and Customs...

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