Yearly Archives 2012

Tax Changes Needed in Europe

November 29, 2012 Taxation in EU

Tax in Europe

BRUSSELS – EU countries need to act now to broaden their tax bases and to reduce the unsustainable and damaging biases in their tax systems.

On November 28th the European Commission released its Annual Growth Survey for  2013, providing EU member countries with policy guidance aimed at boosting economic growth in Europe and at encouraging the development of more efficient and fairer tax systems.

In the report the Commission issued five objectives for tax policy changes in Europe, suggesting that all EU countries should fight to improve tax compliance, to shift tax obligations from labour to consumption, to impose more green taxes, to broaden tax bases, and to remove tax bias which encourages taxpayers to take on more debt.

The Commission explained its suggestions, saying that excessive t...

Read More

Portugal Approves New Austerity Hikes

November 28, 2012 Taxation in Portugal

Vitor GasparLISBON – Portugal hopes to see its revenues rise by 30 percent next year, which could enough to secure further bailout payments and to allow the country to participate on international credit markets.

On November 27th the parliament of Portugal voted on the national budget plan for 2013, approving an array of new taxes, tax increases, and spending cuts aimed at increasing the government’s revenues by EUR 5.3 billion.

As part of the new tax package, from 2013 all individual taxpayers will be required to pay a new social solidarity tax of 2.5 percent on their incomes.

At the same time, the threshold for the top marginal tax rate will be reduced from EUR 153 000 per year to EUR 80 000 per year, and the top tax rate will be increased from 46.5 percent to 48 percent.

Middle income earners will...

Read More

Tax Hike to Devastate US Economy

November 26, 2012 Taxation in USA

White HouseWASHINGTON D.C. – Allowing tax cuts on personal incomes to expire in the USA would have wide reaching detrimental effects on the national economy and would hamper the country’s economic growth.

On November 26th the US White House released a new report on the potential economic effects of tax increases on the national economy, claiming that US taxpayers “…can’t afford the threat of tax increase on middle-class families.”

According to the report, the USA needs to ensure that the tax cuts which are currently offered to middle income taxpayers are extended by the end of the year, as allowing them to expire this year would effectively raise the tax obligations for approximately 98 percent of American taxpayers, and would lead to a USD 200 billion reduction in consumer spending and a 1...

Read More

UK Lagging on Tax Avoidance Investigations

November 26, 2012 Taxation in UK

Tax Bill

LONDON – The UK is not doing enough to address the issue of national taxpayers using overly aggressive tax avoidance schemes.

Last week the UK National Audit Office (NAO) released a new report  on occurrence tax avoidance in the country, showing that the HM Revenue and Customs (HMRC) has not yet implemented effective programs and systems to address overly aggressive tax avoidance schemes utilized by taxpayers.

According to the NAO, the HMRC currently has a backlog of 41 000 cases of aggressive tax avoidance, which could be proven to be inconsistent with tax law if challenged in a court.

However, despite the backlog the HMRC does not currently have any effective procedures in place for dealing with the outstanding cases, as “…while HMRC has a good success rate when it litigates, its inves...

Read More

Paying Taxes Becoming Easier

November 23, 2012 International Tax Cooperation

TaxWASHINGTON D.C. – Governments around the world are boosting economic growth and improving tax compliance by making it easier for businesses to pay their taxes.

On November 22nd the World Bank released its annual Paying Taxes report for the 12 months ending June 2012, showing that governments around the world have continued to make extensive efforts to improve tax compliance amongst businesses by upgrading the national tax filing and payment systems.

The report examined the effect that tax policies have on the tax filing and compliance requirements faced by businesses operating in 185 different countries of the world, finding that compared to last year businesses now spend on 24 hours less preparing their taxes and are required to make 2 less tax payments per year.

According to the World B...

Read More