Monthly Archives June 2011

US Tax System Too Complicated

June 30, 2011 Taxation in USA

Senate Finance Committee Chairman Max BaucusThe US tax system is too contrived and complex to be fully understood by most US taxpayers, and the situation is leading to significant tax revenue losses and economic inefficiencies.

On June 28th the US Government Accountability Office presented a report on analysis of the relationship between complexity of the tax code and national tax compliance levels. The study was presented by the Chairman of Senate Finance Committee Max Baucus, who said that simplifying the tax code would make a significant impact to the country’s USD 345 billion tax gap.

According to the Senator the tax system has become too complicated for many Americans to comply with...

Read More

India Delays GST Until June 2012

June 29, 2011 Taxation in India

India Delays GSTAfter years of delays and debates, India is looking set to see yet another hold up to the implementation of a national Goods and Service Tax, as the government and state tax authorities fail to reach a consensus on the structure of the tax.

According to Sumit Dutt Majumder, chairman of the Central Board of Excise and Customs (CBEC) of India, the country is unlikely to meets its self-imposed April 1st 2012 deadline for implementing a new Goods and Service Tax (GST) system. At a press conference held in Kolkata on June 29th the Chairman explained that the new tax could be delayed until at least June 2012...

Read More

MPs in Kenya Finally Pay Taxes

June 28, 2011 Taxation in Kenya

Taxation in KenyaKenya is making headway in its recent tax compliance controversy, as the Prime Minister and the leader of the Party of National Unity both stepped forward to pay their owed taxes.

On June 27th the Prime Minister of Kenya Raila Odinga and Mutava Musyimi, a candidate for the 2012 presidential election, made an example to other Kenyan politicians, with both MPs paying their full tax liabilities. So far only four Ministers have met their full tax obligations since the new constitution came into effect.

In August 2010 Kenya instated a new national constitution, part of which mandated that all workers in Kenya pay taxes on their incomes. The rule extends to all Members of Parliament, who had previously enjoyed an exemption from tax liabilities...

Read More

Amish Butt Heads With Tax Authorities

June 27, 2011 Taxation in USA

Amish TaxpayersThe Amish population in the state of New York are coming to heads with local tax authorities, as their beliefs clash with new tax filing requirements.

In early 2011 the New York Department of Taxation and Finance updated its compliance regulations and made it mandatory for all state sales tax returns to be filed electronically. The new rules are at odds with the local Amish population, who do not believe in the use of electricity or “modern technology”.

It is not uncommon for members of the Amish community to provide some services to the general public, or even sell small amounts of produce. As with any other taxpayer, these commercial activities draw a tax liability and a necessity to file annual tax returns...

Read More

UK to Use Robots to Fight Tax Evaders

June 24, 2011 Taxation in UK

HMRC Tax RobotThe HM Revenue and Customs are set to make a greater use of technology in their fight against tax evasion, by utilizing innovative new software to find information on taxpayers and detect evidence of undeclared incomes.

In a recent announcement the HM Revenue and Customers (HMRC) stated that it will soon employ the use of advanced “web robot” technologies to investigate online marketplaces for evidence of UK taxpayers conducting retail activities and not paying their  tax obligations. The project will also target online classifieds to discover evidence of taxpayers offering private tutoring services without declaring the realized incomes.

The HMRC’s Director of Risk and Intelligence Mike Wells explained the new project, saying that the new “robot” software will work in conjunction wi...

Read More