Monthly Archives July 2012

Israel Approves Austerity Package

July 31, 2012 Taxation in Israel

Tax increases in IsraelJERUSALEM – Israel has approved several tax changes with the aim of quickly addressing the country’s ailing economic situation and avoiding a financial crisis as seen in several countries in Europe.

On July 30th the Cabinet of Israel approved a new austerity package consisting of several increases to tax rates and extensive spending cuts aimed at increasing tax revenues and reducing the government deficit to below 4 percent of GDP.

From the start of 2013 all taxpayers earning above the average salary of ILS 8 881 per month will see their income tax rate rise by 1 percent. Individuals who are in the highest tax bracket and are earning in excess of ILS 67 000 per month will see their tax rate rise by 2 percent...

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Mine Operators to Pay Tax in Tanzania

July 30, 2012 Taxation in Tanzania

Gold mine taxation in TanzaniaDODOMA – The government of Tanzania is beginning a crack down on gold mine operators which take unfair advantage of current tax rules in an effort to avoid paying any corporate income taxes in Tanzania.

On July 27th the Minister of Energy and Minerals of Tanzania Sospeter Muhongo stated that the government is aiming to stamp out tax evasion carried out by gold mine operators in Tanzania, saying “…I am instructing all mining companies that have been in operation for more than five years to start paying corporate tax without any excuses.”

He went on, saying that any mining companies which claim they do no not make profits and cannot contribute to the national economy “…should shut down their mines and leave because minerals do not rot.”

The Minister’s statement was aimed at gold mine operato...

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US Agrees on New Info Sharing Rules

July 27, 2012 International Tax Cooperation

Tax Information ExchangeWASHINGTON D.C. – America has reached agreements with five European countries regarding new international reporting rules which will comply with the USA’s Foreign Tax Compliance Act.

On July 26th a joint statement was released by the USA, the UK, France, Germany, Italy and Spain, announcing that the group of countries had unanimously agreed to implement new reporting rules which will facilitate the automatic exchange of information on taxpayers with bank accounts in any of the participating countries.

The new rules are set out in a model tax agreement which can be signed by any country which already has a tax information exchange agreement with the USA...

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China Expands VAT Trials

July 26, 2012 Taxation in China

VAT Tax in ChinaBEIJING – China is taking steps to overhaul its tax system for businesses, expanding a trial program to remove some tax regulations and reduce compliance burdens on businesses.

On July 25th the State Council of China revealed that it has approved a plan to expand its pilot program on Value Added Tax from the city of Shanghai and implement the system into the municipalities of Beijing, Tianjin, Xiamen and Shenzhen, and the provinces of Jiangsu, Zhejiang, Anhui, Fujian, Hubei and Guangdong.

The tax will initially only be imposed in selected industries in order to test the effectiveness of the tax before it is launched across all industries and regions in the country.

Tax experts in China have already welcomed the newly announced change, saying that the Business Tax hinders economic growth a...

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UK Taxpayers Unwittingly Miss Out on Tax Credits

July 25, 2012 Taxation in UK

Tax Returns in the UKLONDON – UK taxpayers are missing out on over GBP 12 billion per year in tax allowances when filing out their tax returns, due to oversights which should be simple to prevent.

On July 24th the independent advisory group Unbiased released a new report on tax credits available in the UK, showing that taxpayers are not recieving a cumulative GBP 12.3 billion in tax allowances every year because they have not applied to receive all of the tax allowances available to them or have not completed their tax returns correctly.

According to Unbiased, the most significant portion of the unclaimed tax benefits was income-related tax credits, which accounted for approximately GBP 7.23 billion of all wasted tax allowances. Approximately GBP 2...

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