Yearly Archives 2012

Pakistan’s Policitians Evade Taxes

December 13, 2012 Taxation in Pakistan

tax evasion in pakistanISLAMABAD – Fresh attention is being drawn to Pakistan’s widespread problem of tax evasion, with new claims arising that the majority politicians in the country, including the Prime Minister, have chosen not to meet his own tax obligations.

On December 12th the Center of Investigative Journalism in Pakistan released a new report detailing the extent of tax evasion amongst the country’s politicians, and showing that out of the 446 the members of the National Assembly and the Senate only 146 filed any tax returns in 2011.

Amongst those politicians with submitted tax returns only 15 ended up paying more than PKR 1 million (approx USD 10 260) in taxes, and 68 actually paid less than PKR 100 thousand each (approx USD 1 025).

The report also highlighted the fact that 78 members of parliament wer...

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Philippines Approves Hike to Sin Tax

December 12, 2012 Taxation in Philippines

Cigarettes and alcoholMANILA – Taxpayers in the Philippines will soon feel a sting in their wallet as the government narrowly approves the long debated and strongly contested hikes to the taxes levied on alcohol and tobacco.

At a meeting of the Senate of the Philippines on December 11th a vote was held on the future of the hotly debated “sin taxes” on cigarettes and alcohol, passing the long discussed measure and approving several rounds of hikes to the excises taxes on both types of products.

From January 1st 2013 excise duties on all alcoholic beverages and tobacco products will be increased, with further rises scheduled at the start of each year until 2017.

The raised tax rates will be broken down by product types, with higher strength liquors and more luxurious drinks having higher taxes than cheap low-str...

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Swaziland to Hike Witch-Doctor Tax

December 11, 2012 Taxation in Swaziland

SwazilandLOBAMBA – Swaziland is looking at witch-doctors to help raise government revenues and secure the country’s fiscal position.

In a session of the parliament of Swaziland last week a proposal was raised by Majahodvwa Khumalo, an MP for the Lobamba inkhundla, to raise the annual fees paid by the country’s traditional healers and witch-doctors.

According to Majahodvwa Khumalo, a majority of people in Swaziland choose to consult with traditional healers instead of doctors, but “…the money they [the healers] pay to government falls far too short of the money they make.”

The MP explained that the healers, known locally as sangomas, are required to pay an annual fee of SZL 10, but in the last several years they had routinely increased their service fees by as much as 400 percent without having to f...

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Australia Assembles Tax Task Force

December 10, 2012 Taxation in Australia

Tax AvoidanceCANBERRA – Australia is buckling down in its fight against excessive tax avoidance, and is looking to refine its tax laws with the help of a group of prominent tax experts.

On December 10th the Assistant Treasurer of Australia David Bradbury announced the formation of a new task force appointed by the national government to address the problem of large multinational firms excessively minimizing their tax payment in Australia.

The group will set its sights on global companies which operate in Australia but are not “pulling their weight” when it comes to paying an appropriate amount of taxes.

The task force will examine the strategies used by large multinationals to reduce their tax obligations, and will be charged with advising the government on potential means of addressing aggressive tax ...

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EU Pushes Anti-Evasion Plan

December 6, 2012 International Tax CooperationTaxation in EU

EU Tax PlanBRUSSELS – The countries of the European Union need to work together to stop the occurrence of tax evasion, an international problem which is currently costing the EU approximately EUR 1 trillion per year.

On December 5th the European Commission unveiled an Action Plan which sets out “…a comprehensive set of measures, for now and for the future, to help Member States protect their tax bases and recapture billions of euros legitimately due.”

The Action Plan revolves around three major recommendations to the EU and all EU countries on how to address the persistent problems tax avoidance and tax evasion.

The EC recommends that the EU and all EU member states need to take a stronger stance against tax evasion by stepping beyond the currently active anti-evasion measures and implementing a comm...

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