Monthly Archives October 2011

New Team to Invistgate Wealthiest UK Taxpayers

October 31, 2011 Taxation in UK

Tax Investigations in the UKLONDON – The UK HM Revenue and Customs has assembled a new team of investigators to catch the country’s wealthiest tax evaders.

In a statement released on October 31st the HM Revenue and Customs (HMRC) announced that it has put together a new team of taxation experts in an effort to conduct an increasing number of investigations into tax evasion by the wealthiest British taxpayers.

The new tax investigations team is called the “Affluent Unit”, and will be primarily concerned with uncovering evidence of tax evasion committed by the country’s highest earners. Initially, the 200 member unit will use comprehensive data mining and cross checking techniques to inspect the tax returns of individuals who own property abroad.

The investigation will aim to uncover discrepancies between the ...

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Israel Approves New Tax Changes

October 31, 2011 Taxation in Israel

Tax changes in IsraelTEL AVIV – The government of Israel is bowing to public pressure, and increasing tax rates on high earning individuals, while easing tax burdens for middle and low income earners.

On October 30th the Israeli cabinet approved several changes to the national tax system. The alterations are aimed at lowering the cost of living for middle and low income taxpayers, and supplementing any government revenue drops by raising tax rates applicable to high income individuals.

Under the proposed changes, individuals earning in excess of ILS 40 231 (approx USD 11 175) per month will see their income tax rate rise from 44 percent to 48 percent. Individuals with annual incomes exceeding ILS 1 million (approx USD 277 778) will also be levied with an additional 2 percent “high-earners tax”...

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Pakistan to Launch New Tax Initiatives

October 28, 2011 Taxation in Pakistan

Tax changes in PakistanKARACHI – Pakistan is looking to narrow its extensive budget deficit, and the government is taking steps to implement new measure to improve tax collections and tax compliance across the country.

While talking to the media on October 27th the Chairman of the Federal Board of Revenue (FBR) of Pakistan Salman Saddique said that Pakistan needs to overhaul its tax system and take proactive steps to cut down the occurrence of tax evasion across the country.
Pakistan is currently examining the tax systems of other countries around the world in order to draw ideas of how to improve national tax collections. According to the Chairman, plans are already being finalized to broaden the national tax system by introducing a comprehensive and wide reaching value added tax (VAT) to the country...

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China to Launch VAT Pilot Program

October 27, 2011 Taxation in China

VAT in ChinaSHANGHAI – China is set to aid enterprises in the national service sector with a new program to replace current turnover tax systems with a value added tax system.

On October 26th the State Council of China issued a statement revealing that it has approved a new pilot program to replace the national turnover tax with a simpler value added tax (VAT).

The new tax will be instated from January 1st 2012 for transportation and service firms operating in the Shanghai region. If the program is deemed to be a success, the government will incrementally expand the tax across other regions of the country when economic conditions allow.

Under current tax rules in China, firms operating in the service sector are levied a turnover tax on their annual sales revenues, while manufacturing firms across th...

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UK-Swiss Tax Agreement is Flawed

October 26, 2011 Taxation in SwitzerlandTaxation in UK

Tax Agreements with the UKLONDON – The tax deal between the UK and Switzerland is coming under fire as public campaigners claim that the agreement is rife with loopholes.

On October 25th the international anti – tax evasion group the Tax Justice Network (TJN) published a new report condemning the recently signed tax agreement between Switzerland and the UK. According to the TJN, the new agreement will not lead to any significant reductions in tax evasion, and could even help some taxpayers to better hide their illicit tax schemes.

The TJN claims that it has identified 10 glaring loopholes in the already signed tax agreement between Switzerland and the UK. These oversights will seriously undermine the legitimacy of the deal, and will ultimately prove to be of little, if any, benefit to the UK.

Under the agreement,...

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