Monthly Archives May 2013

Tax Freedom Days Arrives in the UK

May 31, 2013 Taxation in UK

Tax BillLONDON – For the first time this year UK taxpayers are earning for themselves, and are not putting all of their hard earned cash into paying off their taxes.

Tax Freedom Day in the UK fell yesterday, on May 30th, 150 days since the start of the year, and one day longer than in the previous year.

Tax Freedom Day is a hypothetical measure of the average tax liabilities faced by taxpayers in a country, and is provides an indication of how many days the average taxpayers would need to work before they have met their cumulative tax obligations for the year.

The calculation of Tax Freedom day for the UK was completed by the Adam Smith Institute, an independent UK based think tank.

Explaining the benefit of using Tax freedom day as a measure of tax liabilities, the Director of the Adam Smith Inst...

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Italy Narrows Budget Deficit

May 30, 2013 Taxation in Italy

Via Pietro Capuano, Amalfi - Italy flagBRUSSELS – Italy’s budget deficit has reached an acceptably low level, and the European Commission has given its approval to the government’s plan of dropping property taxes for this year.

On May 29th the European Commission ruled that Italy’s has made enough corrections to its fiscal position and will no longer be subject to the EU Excessive Deficit Procedures.

Under the provisions of the EU Stability and Growth Pact, all member states should maintain their deficit-to-GDP ratios at below 3 percent, and are required to maintain their debt-to-GDP ratios at less than 60 percent, and any country that is found to breach the outlined conditions may be subject to corrective procedures, which may include sanctions.

In its report on Italy’s budget deficit, the European Commission stated that it do...

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India Wont See GST Until 2014

May 29, 2013 Taxation in India

Prime Minister of India, Manmohan SinghNEW DELHI – India will probably not see the implementation of a GST system next year, and no changes are likely to be made until the next election is held in the country.

In a speech given on May 28th the Prime Minister of India Manmohan Singh indicated that the country could see the long-awaited implementation of a Goods and Service Tax by the end of 2014.

The implementation of a GST system has been a widely debated and highly controversial topic in India for the last few years, with the supporters claiming that the it would boost economic efficiency by simultaneously replacing Central Sales Tax, State-level sales tax, entry tax, stamp duty, telecom licence fees, turnover tax.

Opponents to the tax are contesting that the system would deprive state governments of their own tax setting powe...

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India Sends 175 000 Tax Letters

May 28, 2013 Taxation in India

Tax LetterNEW DELHI – Tax authorities in India have made contact with 35 000 more people who are accused of willfully neglecting their tax filing obligations.

In a statement issued on May 27th the Income tax department of India announced that it has sent out over 35 000 more letters to taxpayers who have not been filing their personal tax returns, bringing the total number of such letters sent this year to 175 000.

The letters sent contain information on what data the Income Tax Department already has about the taxpayer, and requests clarification from the taxpayers regarding their current tax situation.

The taxpayers who have been sent a letter were chosen through a new data matching program run by the Income Tax Department, which verifies individuals’ claimed income levels against information in ...

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Tax Hikes Do Not Slow Down Drinking in Australia

May 27, 2013 Taxation in Australia

alcohol consumption in AustraliaSYDNEY – Australia’s attempt to use tax hikes to lower the levels of alcohol consumption amongst youths has only led to a sharp spike in the consumption of spirits and a multi-million dollar boost to tax collections.

On May 27th the Royal Australian and New Zealand College of Psychiatrists released the results of a new study which showed that the recent hike to taxes on selected alcoholic beverages in Australia has had virtually no effect on reducing the overall instance of teenage binge drinking, and has actually led to an increase in the consumption of hard spirits.

In 2008 the Australian government enacted a 70 percent hike to the excise taxes charged on pre-mixed alcoholic beverages, bringing the charged tax rate in line with the taxes applied to spirits.

The results of the research in...

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