Monthly Archives July 2011

Transfer Pricing Assistance Outlined for Developing Nations

July 29, 2011 International Tax Cooperation

Developing nations need assistance with transfer pricing documentsDeveloping nations need to instate modern transfer pricing legislation to increase tax revenues, and assistance offered to these countries must be targeted, in order to maximize effectiveness, based on their current state of legislation and tax infrastructure.

A new study was prepared earlier this month by PricewaterhouseCoopers for the European Commission, outlining the potential steps needed to address the inadequate transfer pricing rules in developing nations. According to findings contained in the report, the economic advantages and tax revenue benefits of instating appropriate transfer pricing regulations in developing nations will far outweigh the costs of fostering the necessary expertise and tax administration...

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Brazil Combating Inflated Currency with New Tax

July 28, 2011 Taxation in Brazil

New Tax on Brazilian Real TradesThe government of Brazil is using new tax measures to contain the unprecedented rise of the national currency.

On July 27th the national currency of Brazil (the Real, BRL), backed down from its 12 year high against the US Dollar, after the government announced a new tax designed to curb the currency’s excessive appreciation. Immediately after the announcement the Brazilian Real fell by approximately 2 percent.

The newly instated measure will place a 1 percent tax short positions on the country’s futures market valued above BRL 10 million. The rules are intended to defend the currency from upward pressure from speculative activity, while still allowing for the free flow of direct foreign investment, and the use of the futures market for business planning purposes.

The regulation allows...

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Jersey Slashing Taxes for the Ultra Rich

July 27, 2011 Taxation in Jersey

St Aubin JerseyThe island nation of Jersey is looking to use newly revised tax laws to entice high net worth individuals and wealthy tax exiles from around the world to settle down in the country.

On July 22nd the Minister for Treasury and Resources of Jersey Philip Ozouf announced a newly approved revision to the nation’s tax laws, aimed at attracting greater number of international high net worth individuals to the island.

Under the revised laws, overseas residents who have been granted permission to reside in Jersey under the country’s 1(k)(k) program will now be taxed 20 percent on the first JEP 625 000 of their incomes, and all subsequent earnings will only be liable for a 1 percent income tax...

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Thailand Ready to Cut Business Taxes

July 26, 2011 Taxation in Thailand

Thailand Ready for Tax CutThailand could soon see a significant decrease to its corporate income tax rate, as the Revenue Department indicates its readiness to slash the tax on the government’s signal.

According to a statement made by the director general of the Revenue Department of Thailand Satit Rungkasiri on July 25th, the Department is now ready to implement a cut to the country’s corporate income tax rate, as was proposed by the newly elected Pheu Thai Party. Although, the Revenue Department is also recommending that an increase to the national value added tax (VAT) rate be instated, in order to compensate for any losses in revenue.

On July 3rd the Pheu Thai Party of Thailand won the country’s general election, gaining 265 of the 500 seats in the House of Representatives...

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Investigations Needed over Pakistan Tax Error

July 25, 2011 Taxation in USA

Pakistan Tax Revenues Overstated by Billions of RupeesA high level inquiry will soon be launched in Pakistan to investigate why the Federal Board of Revenue grossly misreported its tax revenue collections figures.

As was revealed in the national media of Pakistan, on Saturday official sources indicated that internal errors were to blame behind an announcement by the FBR Chairman Salman Siddiqui, in which incorrect levels of tax revenue collections were reported. In a press conference held on June 30th the Chairman reported that annual tax revenues had reached PKR 1.59 trillion. However, earlier last week it was revealed that that the actual collections figure was only PKR 1.55 trillion.

The misreporting of revenue is having significant effect on the country, as the government now is forced to reevaluate its tax collections targets and annual...

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