Monthly Archives April 2011

Philippine’s Tax Compliance Raised by Media Exposure Program

April 29, 2011 Taxation in Philippines

Tax evasion in the PhilippinesAn anti-evasion program that is running in the Philippines is proving to be highly effective at encouraging public tax compliance, by putting high-profile instances of tax fraud in the media spotlight.

The Run After Tax Evaders (RATE) program currently being operated by the Bureau of Internal Revenue (BIR) of the Philippines is showing evidence of raising public tax compliance practices, and has led to numerous high-value tax evasion charges being filed.

The RATE program was initially conceived by the government in 2005, and put into action soon after. The initiative’s primary goal is to investigate large-scale violations of the national tax rules, and aid in the prosecution of tax criminals...

Read More

New Zealand Shuns Capital Gains Tax

April 28, 2011 Taxation in New Zealand

Capital gains tax in New ZealandInefficiencies in New Zealand’s tax system played a major contributing factor to the stall in the country’s economic growth last year, and several changes need to be carried out in order to correct the situation.

The Organization of Economic Cooperation and Development (OECD) has completed its annual Economic Survey of New Zealand, advising that the country needs to instate a capital gains tax and overhaul the tax system to encourage savings and investments in sectors of the economy, other than property.

The new report suggested that the country’s capital markets are “shallow”, resulting in over-investment in the housing sector, and excessive dependence on foreign debt via bank mortgages...

Read More

US Corps Pay Billions in Taxes to Overseas Authorities

April 27, 2011 International Tax CooperationTaxation in USA

US international taxNew research shows that US companies operating internationally pay out nearly a quarter of their profits to overseas tax authorities, before being taxed for the second time by the Internal Revenue Service.

The US Tax Foundation has stood up to speak out against the currently common media sentiment that US corporations are not paying enough taxes on their foreign profits. In its latest Fiscal Fact report, published on April 26th, the Tax Foundation explained that the US has in place an effective system of taxing corporate profits in the US and abroad, requiring US companies with foreign operations to effectively pay 35 percent tax on their profits regardless of where they are earned.

Currently, a US firm operating overseas is required to pay the corporate profit tax rate in the country wher...

Read More

Venezuelan Oil Taxes to Reach up to 95%

April 26, 2011 Taxation in Venezuela

Venezuelan Oil TaxIn the face of rising political turmoil in the Middle East, the price of oil has been rocketing upwards, and the President of Venezuela Hugo Chavez is stepping forward to take advantage of the situation by raising the windfall tax on oil exports.

Over the weekend Hugo Chavez made an on-air phone call to a national political show, broadcast on Venezuelan television, in which he announced that a new regulation would be passed to significantly hike the windfall tax on oil exported from the country. The raised rates will be instated by presidential decree, and will not need the approval of Congress, as Hugo Chavez was granted special enabling powers by the National Assembly of Venezuela in December 2010.

Venezuela is a member of the Organization of the Petroleum Exporting Countries (OPEC) and ...

Read More

Netherlands Needs Overhaul to Fight Billions in Laundered and Terrorist Money

April 21, 2011 International Tax CooperationTaxation in Netherlands

Money laundering in the NetherlandsThe Netherlands is making good efforts to combat international money laundering, financial crimes and terrorist financing, but several shortfalls in its infrastructures and legislation means that the country is still susceptible to the crimes.

According to IMF research released on April 19th in the Detailed Assessment Report on Anti-Money Laundering and Combating the Financing of Terrorism report, the level of proceeds from criminal activities in the Netherlands is now at approximately USD 14 billion per year, equivalent to approximately 1.8 percent of the national GDP. Fraud and tax fraud are currently seen as making up a significant portion of the criminal profits...

Read More