Monthly Archives June 2012

Pakistan Dashes to Meet Yearly Tax Target

June 29, 2012 Taxation in Pakistan

Pakistan tries to reach revenue target for yearISLAMABAD – The Federal Board of Revenue of Pakistan is scrambling to raise nearly PKR 150 billion by the end of June in order to meet its tax revenue targets for the current fiscal year.

On June 28th media outlets in Pakistan released reports alleging that the Federal Board of Revenue is blocking and delaying tax refunds in an effort to postpone outward payments and raise overall tax revenues in order to the tax revenue targets set out for the year.

The Federal Board of Revenue was tasked with collecting PKR 1.95 trillion by the end of the current fiscal year, which ends on June 30th. However, by June 26th the Board had only reached a level of collections of PKR 1.81 trillion, and still needed to raise PKR 142 billion over the last four days of the month.

According to the Pakistani media,...

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IRS Drops Penalties for Voluntary Disclosures

June 28, 2012 Taxation in USA

IRS Drops Penalties for Voluntary DisclosuresWASHINGTON D.C. – US taxpayers who are classed as being low “compliance risks” may now disclose their previously hidden offshore accounts without facing penalties from the IRS.

On June 26th the US Internal Revenue Service announced that it is easing the rules on its current voluntary disclosure program for US taxpayers with undeclared assets held in bank accounts outside of the country.

From now on, taxpayers who come forward to reveal details of their offshore bank accounts will not face any late penalties or non-payment fees, if the total amount of taxes due on their undeclared incomes over any of the last eight years does not exceed USD 1 500.

According to the Commissioner of the IRS Douglas Shulman, the change is aimed at encouraging higher tax compliance and disclosure from taxpayers ...

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Spain Looks At New Tax Hikes

June 27, 2012 Taxation in Spain

Spanish tax hikeMADRID – Spain is looking to eliminate some currently available tax breaks and raise tax rates on petrol and consumer goods in order to reduce the country’s spiraling budget deficit.

On June 26th the Treasury of Spain announced that the national government may soon need to raise taxes and implement a series of new austerity measures in order to reduce the country’s worsening financial situation. Explaining the country’s fiscal position, the Treasury released a statement, saying that over the month’s between January and May the government’s budget deficit reached a level of approximately 3.41 percent. The shortfall is already approaching the government’s deficit limit for the year of 3.5 percent.

The Treasury attributed the current level of the deficit to a series of monetary transfers made...

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Australian Mining Tax Puts Budget at Risk

June 26, 2012 Taxation in Australia

mining Tax in AustraliaCANBERRA – Australia’s upcoming Minerals Resource Rent Tax may only raise half of the revenues forecasted by the government, putting the country at risk of not reaching a budget surplus in the planned time frame.

On June 25th a new report was released by the Minerals Council of Australia, saying that collections of the upcoming Minerals Resource Rent Tax will be too volatile to accurately predict and the government could suffer large losses in revenues if international demand for minerals drops unexpectedly. According to the report, it is currently not possible to reliably estimate the revenues which could be raised from the collection of the mining tax, as the charge is will vary based on international commodity prices and exchange rates.

The report criticized the Australian government fo...

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Tax Avoidance Raises UK Tax Rates

June 25, 2012 Taxation in UK

Tax Avoidance in the UKLONDON – The actions of rich taxpayers in the UK who actively try to avoid their tax obligations raise the country’s personal income tax rate by 2 percent.

In a television interview aired on June 24th the chief secretary of the UK Treasury Danny Alexander commented on tax avoidance schemes utilized by the country’s richest taxpayers, saying that the practices were “morally repugnant” and that UK taxpayers could see their tax rates slashed if everyone paid their “fair share” of tax.

Danny Alexander’s comments came in response to recent news that last week the HM Revenue and Customs has cracked down on a tax avoidance scheme, which is reported to have been utilized by over 1 000 wealthy UK taxpayers and had cost the country approximately GBP 168 million per year in lost revenues.

The chief s...

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