Monthly Archives July 2013

Obama Calls for Tax Overhaul

July 31, 2013 Taxation in USA

President Obama Speaks With British PMWASHINGTON D.C. – Barack Obama is pushing for a complete tax overhaul in the USA, with cuts to corporate tax rates, alongside the implementation of new measures to fight tax evasion.

In a speech given on July 30th Barack Obama proposed an extensive overhaul of the national tax code as part of a “grand bargain” to “…rebuild an economy where everyone who works hard can get ahead.”

The President called for the corporate tax rate in the USA to be lowered from 35 percent to 28 percent, with a preferential rate of 25 percent for the manufacturing sector.

While the cuts are expected to decrease collection of corporate taxes, the Obama administration expects that overall tax revenues in the USA will increase following a revamp and simplification of the entire tax code, including personal i...

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Italy and Vatican Sign Tax Agreement

July 30, 2013 Taxation in ItalyTaxation in Vatican

VaticanVATICAN – Italy and the Vatican have laid the groundwork for future cooperation in the fight against financial crimes.

In a communique on July 29th the Press Office of the Holy See revealed that the financial intelligence units of the Vatican and Italy have signed a Memorandum of Understanding regarding the sharing of information to aid the fight against tax evasion and money laundering occurring in both countries.

Explaining the significance and impact of the newly signed memorandum, the director of the Vatican’s financial intelligence unit Rene’ Bruelhart said that the Vatican is committed to stamping out the occurrence of tax evasion, and “…Italy is an especially important partner for us“ in reaching this goal.

The signing comes at the same time as both countries are taking ext...

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Australia Squanders Mining Tax Revenues

July 29, 2013 Taxation in Australia

Crowne-Gold-BullionMELBOURNE – Australia’s budget deficit could deepen in the near future, as the government has squandered extra tax revenues seen over the last ten years.

According to a new report released on July 28th by the independent think tank Grattan Institute, over the last decade the Australian government has “squandered” the extra tax revenues arising from the country’s mining industry.

In the report the Institute noted that over the last ten years record high commodity prices have directly increases in tax revenues by approximately AUD 190 billion.

However, approximately AUD 182 billion of the extra collections was immediately used to fund new government spending, and to implement additional tax cuts and allowances.

The lead researcher of the report Jim Minifie said that the government’s deci...

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Transaction Tax Proposed for in UK

July 26, 2013 Taxation in UK

Stock tradingLONDON – The UK government may soon look at taxing automated trading of stocks and equity.

On July 25th the Business, Innovation and Skills Select Committee of the UK House of Commons released a statement urging the government to assess the potential impact and feasibility of implementing a financial transaction tax (FTT) on high-frequency trading (HFT) of publicly listed stocks.

The Committee called for a financial transaction tax to be set “… at a level which is the average profit made on a high frequency trade in the UK”, but concluded that further investigation would be needed to identify and addresses the difficulties of enacting the measure unilaterally without diminishing any benefits arising by HFT.

The proposed tax was met with backlash from industry experts, who claimed that ...

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China Drops VAT for Small Businesses

July 25, 2013 Taxation in China

ChinaBEIING – The government of China is looking to boost economic activity by offering significant tax breaks to more than six million of the smallest businesses in the country.

In a statement issued on July 24th the State Council of China announced that from August 1st all businesses with monthly turnovers below RMB 20 000 will not be required to pay Value Added Tax (VAT) or business tax.

At the moment business tax is levied on the monthly turnovers of enterprises involved in the supply of non-tangible goods and service, and is charged at up to 20 percent, while the VAT is applied to the supply of tangible goods, and is set at up to 17 percent.

It is expected that the newly announced move will positively effect more than six million small companies around the country, with the economic benefi...

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