Yearly Archives 2012

UK Unveils Several Tax Changes

December 5, 2012 Taxation in UK

Chancellor of the ExchequerLONDON – George Osborne has confirmed that the UK will have to wait for at least five more years before reaching a balanced budget, but he softened the news with the announcement of several tax cuts and allowance increases.

On December 5th the Chancellor of the Exchequer of the UK George Osborne delivered his Autumn Statement in front of the members of Parliament, outlining several tax changes aimed at aiding the country in its economic recovery and return to a balanced national budget.

George Osborne said that the UK has no choice but to continue with its current austerity programs until at least 2018, and he conceded that while the changes have been hard on taxpayers”…turning back now would be a disaster. We have much more to do.”

Amongst the main changes to be carried out over the next ...

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Ireland Falls Short of Tax Targets

December 5, 2012 Taxation in Ireland

Tax Collection in IrelandDUBLIN – Ireland has seen disappointing levels of tax collections over the course of November, and it is likely that the country will fail to meet its revenue targets for 2012.

In its monthly Exchequer Statement released on December 4th the Department of Finance of Ireland revealed that tax collections in the country for the 11 months ending November 2012 are 0.5 percent below target.

According to the Department, cumulative tax revenues for the first 11 month of the year were EUR 33.8 billion, which is approximately EUR 171 million below the government’s own set goal.

The lower than expected tax revenues were attributed to disappointing results in the collection of personal income tax, with the tax take for the year sitting at EUR 231 million below expectations.

Revenues from corporate inc...

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Tax Amnesty Flounders in Spain

December 3, 2012 Taxation in Spain

Tax Amnesty in SpainMADRID – Spain’s latest tax amnesty scheme has ended on a disappointing note, not even reaching half of its revenue target.

On December 3rd the Ministry of Finance of Spain released a statement announcing that its recent tax amnesty program has raised an additional EUR 1.19 billion in tax revenues for the debt stricken country, with participants declaring an average of EUR 37 800 of previously hidden assets and incomes each.

The tax amnesty program ran from June to November this year, and allowed Spanish taxpayers to officially disclose information about their undeclared assets to tax authorities in exchange for paying a reduced tax rate of only 10 percent on the previous five years of hidden income.

Taxpayers who took advantage of the amnesty program were also provided protection from cr...

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Austerity on the Horizon for Brits

December 2, 2012 Taxation in UK

George Osborne in BeijingLONDON – UK taxpayers should get ready for another round of tax hikes, welfare cuts, and a clampdown on aggressive tax avoidance.

In a television interview on December 2nd the Chancellor of the Exchequer of the UK George Osborne indicated that the government’s ongoing goal to balance the national budget will take one year longer than expected, and the country will be forced to endure another year of its ongoing austerity measures.

George Osborne indicated that as part of the new austerity measures the government will increase the tax obligations for almost all taxpayers in the country, but particular attention will be paid to ensuring that wealthy taxpayers “…bear their fair share”.

According to the Chancellor the government will also “tackle welfare bills” by not increasing welfare paym...

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Pakistan Pushed to Change Taxes

November 29, 2012 Taxation in Pakistan

International Monetary FundISLAMABAD – In order to meets it own financial targets next year, Pakistan needs to broaden tax base and make tangible steps to fight the occurrence of tax evasion.

On November 29th the International Monetary Fund (IMF)released a Public Information Notice (PIN) with a summary of the results of the recent evaluations of the economy and tax system of Pakistan, saying that it is critical for Pakistan to take active measures to reduce its budgetary shortfalls in order to provide the resources and stability needed to encourage sustainable economic growth and to reduce poverty levels in the country.

The IMF explained that a key step that should be taken by Pakistan is to broaden the country’s tax base by expanding the scope of primary taxes such as consumption and income taxes.

The government wa...

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