Monthly Archives June 2013

UK Needs Tax Hikes

June 28, 2013 Taxation in UK

Calculator and MoneyLONDON – The UK can no longer reduce its budget deficit by implementing major spending cuts, and the government will soon need to consider raising council rates, hiking GST or freezing personal income tax thresholds.

On the 26th of June the UK government held its annual Spending Review, revealing the initial estimates for the national budgetary plan for the upcoming year, and within one day the the UK based think tank Institute of Fiscal Studies (IFS) released an analysis of the announcement, saying that the government’s intentions are unsustainable and will necessitate a series of new tax hikes in order to implement.

In the latest Review the government stated that over the course of the next fiscal year approximately GBP 11...

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Italy Offers Tax Breaks For Hiring Young Workers

June 27, 2013 Taxation in Italy

Enrico LettaROME – Tax incentives will soon be used in Italy to entice employers to take on more young workers, as currently nearly 2 out of every 5 people in the country aged between the 18 and 24 are without employment.

At a press conference held in Rome on June 27th the Prime Minister of Italy Enrico Letta announced that the government will soon offer a tax incentive of up to EUR 650 per month to employers who provide full-time permanent positions to individuals under the age of 30.

The tax incentive is intended to tackle the country’s soaring youth-unemployment level, which are now estimated to have risen above 42 percent, while the country’s overall unemployment rate is at approximately 12 percent.

The cost of the newly announced tax incentive is expected to reach as much as EUR 1...

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Tax Havens Benefit Global Economy

June 26, 2013 Tax Havens

A Paradise of the tropics.LONDON – Tax havens have received an unfairly bad rap in recent times, according to new research which points to their benefits.

Late last week the UK based think tank the Institute of Economic Affairs released a new report claiming that tax haven jurisdictions help facilitate international business and aid in maintaining healthy economies.

According to the Institute, countries with high tax rate are able to attract more mobile capital if investors are able to lower their tax obligations by using a entity registered in a tax haven.

If tax havens did not exist, high tax country would be left in a position of not being able to attract any capital from overseas, and these jurisdictions would be forced to lower their own tax rates.

The author of the report Jamie Collier suggested that tax have...

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Tax Subsidies Don’t Protect the Environment

June 25, 2013 Taxation in USA

Northern (coal-fired power) power stationWASHINGTON D.C – The USA spends billions every year on tax subsidies aimed at reducing greenhouse gas emissions, and in some cases these concessions lead to an even higher production of greenhouse gases.

Late last week the US based National Research Council released a new report showing that the US tax code is ineffective at encouraging a reduction in the emission of greenhouse gases.

According to the Council, over the course of 2011 and 2012 the US government spent in excess of USD 48 billion on tax subsidies and allowances to encourage the uptake of green technologies in order to reduce the emission of greenhouse gases, however, these expenditures are a “poor tool for reducing greenhouse gases and achieving climate-change objectives”.

The results of the study also confirmed that in ...

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Kenya Cancels Upcoming Capital Gains Tax

June 23, 2013 Taxation in Kenya

Jacinta runs a trader shop in the village of Nachukui, KenyaNAIROBI – Kenya has backtracked on the implementation of a new capital gains tax, after the initial announcement of the measure sent shock waves through the national stock market.

In a speech delivered in parliament on June 21st the Economic Secretary of Kenya Geoffrey Mwau announced that the government is backing down on its earlier plan to implement a capital gains tax, saying that further consultation need to be conducted with the public before launching the measure.

The capital gains tax was originally announced two weeks ago during the presentation of the national budget plan, with the anticipated revenues already being earmarked to fund increased government spending on development projects and infrastructure improvements.

Some taxation experts have suggested that the government’s re...

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