Monthly Archives September 2012

Spain Braces for Tax Hikes

September 28, 2012 Taxation in Spain

Spanish AusterityMADRID – Spain will introduce new taxes, remove tax concessions, and reduce government spending in the 2013 fiscal year.  

On September 27th the Spanish Council of Ministers unveiled the proposed budget for the next financial year, aiming to  address the country’s worsening financial situation and to meet the criteria set out for the country as part of its bailout package by the EU and IMF , through reductions in government spending and the introduction of new taxes.

Amongst the tax changes detailed in the budget is the removal of several tax breaks which are currently offered to businesses and private taxpayers.

If the measures in the budget are approved by Parliament, factories and manufacturers in Spain will also face a tax on the amount of carbon dioxide emitted into the atmosphere.

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Carbon Tax to Solve the US Budget Deficit?

September 27, 2012 Taxation in USA

Tax Carbon EmissionsWASHINGTON D.C. – Carbon tax could be a solution to the USA’s budget shortfall, and may cut it in half within the next 18 years.

On September 25th the US Congressional Research Service (CRS) released Carbon Tax: Deficit Reductions and Other Considerations, a new report  on the potential economic and fiscal effects of implementing a carbon tax in the USA.

The report suggested that an environmental tax of USD 20 per metric ton of carbon dioxide emissions could raise additional tax revenues of USD 88 billion in the current financial year.

The research also showed that in line with the country’s economic expansion, the revenues raised from the tax could also increase, and in the year 2020 the annual revenues from the collection of the carbon tax could reach USD 144 billion.

Comparing the est...

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KPMG Finds Best Tax Environment in World

September 26, 2012 International Tax Cooperation

Business TaxAMSTELVEEN – Businesses in India face the most competitive tax environment amongst the 15 most prominent countries in the world, and businesses in Italy struggle under the least competitive tax environment.

On September 25th KPMG released the latest edition of its annual Competitiveness Alternatives Special Report: Focus on Tax, examining the tax environment for businesses operating in the ten most developed countries of the world and the four BRIC countries.

In order to compare the overall impact of tax on businesses in each country, the report examined the total tax liabilities faced businesses operating across 19 separate industries, and benchmarked them against the total burdens faced by businesses in the USA.

Across all of the developed countries examined in the report, Canada had the...

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Portugal to Hike Income Taxes

September 25, 2012 Taxation in Portugal

PortugalLISBON – Portugal is looking at new measures to raise revenues in order to meet the financial targets set out for the country by the EU and the International Monetary Fund.

On September 25th the Prime Minister of Portugal Pedro Passos Coelho announced that the government will drop its proposed plan to hike social security tax, and will increase personal income tax rates along with cuts to the salaries of public sector workers.

Earlier this month the government announced its intentions to raise employees’ social security contributions from 11 percent to 18 percent, and to cut the rate of corporate income tax from 23.75 percent to 18 percent, but the proposal was met with immediate and widespread opposition from the public.

The government has now amended its plans in order to quell public p...

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Wealthiest Brits to Pay More Tax

September 24, 2012 Taxation in UK

Rich Taxpayers in UK Face More TaxesBRIGHTON – The UK government will look to raise more tax revenues from wealthy citizens, and will not be cutting spending on social welfare and will not hike taxes for low income earners.

At a conference of the Liberal Democratic Party held in Brighton on September 23rd the Deputy Prime Minister of the UK Nick Clegg said that the government could raise extra tax revenues by implementing a new tax on luxury properties and levying a greater tax on the capital gains realized by the country’s richest taxpayers.

Nick Clegg acknowledged that the government will need to continue to tighten its budget, and it will need to ensure that all spending cuts and revenue raising measures are done fairly and should not target low income earners.

He said that “…we will not allow some of these vile suggestio...

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