Monthly Archives September 2011

Debts Dig at New Zealand Credit Rating

September 29, 2011 Taxation in New Zealand

New Zealand Credit RatingWELLINGTON – New Zealand’s credit rating has been downgraded by by Fitch Ratings from AA+ to AA, with high debt levels being cited as the primary reason.

On September 30th the international credit rating agency Fitch Ratings announced that it has cut New Zealand’s credit rating from AA+ to AA. World markets immediately reacted to the news, with the New Zealand Dollar falling to a six month low and yields on New Zealand 10 year notes rising by 2 basis points.

New Zealand’s high levels of net external debt were cited as the primary reason for the downgrade, and currently it stand at 83 percent of the national GDP, compared to an approximate median of 10 percent for other countries with an AA credit rating by Fitch Ratings...

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New Push For EU Financial Transaction Tax

September 29, 2011 Taxation in EU

José Manuel Barroso Proposed FTTBRUSSELS – In the midst of the Greek financial crisis and the ensuing uncertainty throughout the European financial market, the European Commission has stepped forward again and called for an EU-wide financial transactions tax.

In an address to the European Parliament on September 28th the President of the European Commission José Manuel Barroso made the official proposal to instate a financial transaction tax to be applied to the activities of banks and financial institutions in countries across all European nations.

The proposed tax will be applied a wide range of financial transactions between financial institutions operating in European countries. The President said that the tax would be charged at 0.1 percent for transactions of bonds or shares, and at 0...

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Greece Accepts to New Tax

September 28, 2011 Taxation in Greece

George Papandreou Announces Property TaxATHENS – Greece will instate a new property tax, in a bid to secure future financial aid from the International Monetary Fund and the European Union.

In an address to international media in Berlin on September 27th the Prime Minister of Greece George Papandreou announced that Greek taxpayers will soon face a new property tax. The announcement was made only hours before the Prime Minister was scheduled to hold talks with German Chancellor Angela Merkel regarding further bailouts for the debt stricken Greece.

The new tax will be levied on all residential properties in the country, and will need to be paid alongside taxpayers’ electricity bills. Failure to pay the tax will result in electricity being shut off to the respective property...

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White House Rebukes Tax Claims

September 27, 2011 Taxation in USA

Wealth Taxes in USAWASHINGTON – The White House is attempting to clear up a shroud of misinformation and confusion regarding potential wealth taxes, having released a communiqué that aims to clarify details regarding the impact of the proposed changes.

In a communiqué published on the White House blog on September 25th the White House communications director Dan Pfeiffer set out to rebuke false claims made by those who oppose a potential tax on the country’s highest earners.

According to the statement, the administration of President Barack Obama is not intending to instate a new tax on millionaires, but, instead the proposed rules for taxes on the wealthiest American taxpayers must be incorporated as an integral part of ongoing tax reforms to discrepancies in the tax system.

According to the communiqu...

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South Africa Debates Wealth Tax

September 26, 2011 Taxation in South Africa

Wealth Tax in South AfricaPRETORIA – Talks of a new wealth taxes have been growing in South Africa, but local tax experts are now vehemently standing up and arguing against the idea.

Throughout last week debates have arisen in South Africa over the potential to instate a new tax on the country’s wealthiest citizens. The issue of wealth taxes arose after US president Barack Obama suggested that such a measure should be instated in the USA. However, tax experts in South Africa are arguing that their national situation is different to the USA, and a wealth tax would not be a productive idea.

According to Eustace Davie, council member of the Free Market Foundation, if a wealth tax was instated in South Africa it would only serve to drive skilled workers and high net worth individuals out of the country...

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