Monthly Archives March 2013

Cyprus Banks to Reopen But Will Face Cash Lockdown

March 28, 2013 Taxation in Cyprus

Forex Money for Exchange in Currency BankNICOSIA – The clients of banks in Cyprus will soon have access to their funds again, although a new regime of tight capital controls will be enacted to ensure that the money does not flow overseas, further worsening the already beleaguered nation.

Banks in Cyprus will officially be allowed to open their doors once again at midday on March 28th, after a mandatory two week closure, but the financial institutions will be required to enforce strict controls on withdrawals and the use of money in order to prevent a cash run-out and to stop the funneling of deposits to overseas financial institutions.

From the time of opening, clients of local banks will not be able to withdraw more than EUR 300 cash per day, and cheques will no longer be cashed and can only be deposited.

The daily use of non-c...

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Tax Burdens Get Heavier Worldwide

March 27, 2013 International Tax Cooperation

Tax BurdensPARIS – A new study has confirmed that taxpayers around the world are now seeing their wallets shrink as their tax obligations continue to rise.

Over the course of 2012 the average tax burden faced by individual taxpayers in OECD countries rose by 0.1 percent, from 35.5 percent to 35.6 percent, according to the preliminary release of the results of new research which was published by the OECD on March 26th.

The OECD defines tax burden as “…the total taxes paid by employees and employers, minus family benefits received, divided by the total labour costs of the employer.“

Amongst all 34 of the OECD member nations only 14 countries saw a decrease in tax rates, and only one country left its taxes unchanged, with all of the remaining countries either raising the rates of income taxes or hik...

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Scammers Jailed For £3 Million Film Fraud

March 26, 2013 Taxation in UK

Lights, Camera...BELFAST – A group of filmmakers have been jailed after claiming millions in fake tax refunds after spending only a few thousand pounds on the production of a fake movie.

On March 25th five individuals from Northern Ireland were sentenced to jail for their involvement in a tax scam which sought to obtain approximately GBP 2.8 million in fraudulent tax refunds and credits for the production of a movie which never existed.

Initially the group claimed to have secured nearly GBP 19.4 million in funding from a Jordanian company to produce a A Landscape of Lives, a movie which was allegedly going to be filmed and edited in the UK in order to be eligible for tax credits available to large scale movie productions.

The group had received over GBP 700 000 in VAT refunds and tax credits for the movie...

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Australians Confused on Taxes

March 25, 2013 Taxation in Australia

Two Australian DollarsSYDNEY – Australian taxpayers are currently unhappy with the levels of taxes that they have to pay, and public approval for continuously increasing government spending is waning in the country.

On March 25th the independent Australian think-tank Per Capita released the results of its annual survey of public opinions on the current state of taxation in the country, showing that many Australian taxpayers seem to have no clear understanding on the issues of public spending, recent tax changes and the full weight of their tax burdens.

The results of the survey highlighted the changing attitude of Australians towards taxation, showing that last year more than half of all Australians believed that they are currently overtaxed, compared to just one year ago when only 44 percent of Australians hel...

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Finland to Cut Corporate Taxes

March 22, 2013 Taxation in Finland

EPP Summit, 14 Mar. 2013HELSINIKI – Finland is proactively looking to reduce its budget deficit by using taxes to boost revenues and to encourage economic growth at the same time.

While speaking at a press conference in Helsinki on March 21st the Prime Minister of Finland Jyrki Katainen announced that the government intends to cut the rate of corporate income tax from 24.5 percent to 20 percent.

The decrease in the tax rate will be funded by hikes to the rate of taxes applied to the sale of alcohol, tobacco and confectionery.

The government will also raise the taxes applied to electricity, as a concession to the Green League, which has been calling for raised energy taxes as a means of encouraging consumers and electricity producers in Finland to utilize greener and more efficient technology.

Currently the govern...

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