Monthly Archives August 2013

Bermuda, Jersey and BVI Branded as Tax Havens

August 30, 2013 Tax HavensTaxation in BermudaTaxation in British Virgin IslandsTaxation in Jersey

British Virgin IslandsPARIS – The government of France is taking a firm stance in the fight against international financial crimes by classifying three more countries as tax havens.

France has officially classified Bermuda, British Virgin Islands and Jersey as “non-co-operative jurisdictions” in regards to information sharing and taxation, with the three countries joining the ranks of Botswana, Brunei, Guatemala, Marshall Islands, Montserrat, Nauru and Niue, which have also effectively been classed as tax havens.

The countries on the list each face a 75 percent automatic withholding tax on any payments coming from France.

The withholding tax will only come into effect on January 1st 2014 for the three newly added countries, and the government of each nation now has until the end of this year to address and ...

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Phone Makers Need Tax Breaks

August 29, 2013 Taxation in Vietnam

Ant's PhoneHANOI – Phone manufacturers in Vietnam are being pushed out of the national market by foreign companies which enjoy more tax breaks then the local competitors.

According to the Vietnamese news website Tri Thuc Tre, the largest mobile network operator in the country Viettel Mobile has addressed Prime Minister Nguyen Tan Dung and the Finance Minister Dinh Tien Dung with claims that local phone manufacturers need more tax breaks in order to compete with imported handsets.

In their letter Viettel explained that the current tax system is disadvantageous for local businesses as the government levies a tax of up to 25 percent on the import of the materials and components needed to make a mobile phone, while no duties are levied on the import of already assembled handsets.

They added that some fo...

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New Technology Will Prevent Tax Fraud

August 28, 2013 Taxation in USA

Out with the old technologyWASHINGTON D.C. – The IRS’s reliance on outdated software allows billions of dollars of tax fraud to remain undetected, and not enough is being done by the IRS to improve the technologies used to detect such crimes.

In a report released earlier this week the Treasury Inspector General for Tax Administration (TIGTA) said that Electronic Fraud Detection System (EFDS) used by the IRS is no longer adequate for its original purpose, and now allows an estimated USD 19.2 billion in tax fraud to occur and remain undetected every year.

The IRS is currently in the process of implementing a new system, the Return Review Program (RRP), which is intended to “…significantly enhance the IRS’s capabilities to prevent, detect, and resolve tax refund fraud.”

The TIGTA noted that the EFDS, in its current st...

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Jamaica Commended for Tax Progress

August 27, 2013 Taxation in Jamaica

Jamaica 20 dollarsKINGSTON – The government of Jamaica is making praiseworthy progress to making the country’s tax system more efficient, simpler, and broader.

Last week the International Monetary Fund (IMF) issued a new press release, detailing the results and conclusions of its assessment into Jamaica’s headway towards improving the economy and tax system.

The IMF praised the government of Jamaica for the moves being made to improve tax collections, noting that “… several legislative amendments have been adopted to bolster tax administration, and the resources of the large taxpayers office have been increased.”

It was also acknowledged that the government of Jamaica is taking steps to implement new legislative measures to broaden the tax base and to secure the country’s fiscal position over the long ...

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French Taxes at “Fateful Point”

August 26, 2013 Taxation in France

Paris-20PARIS – France must shift its focus away from tax hikes and look towards spending cuts.

In an interview with the newspaper Le Journal du Dimanche on August 25th the vice-president of the European Commission Olli Rehn said that tax levels in France have reached its realistic limit, and the country is now at a “fateful point”, as any further rate hikes will now only serve to “…break growth and weigh on employment.”

Olli Rehn noted that if the French government wishes to improve its fiscal position, it must implement cuts to public spending instead of relying solely on hikes to tax rates.

The current tax-to-GDP ratio in France is estimated to be approximately 44.2 percent, one of the highest in the OECD, and the third highest in Europe only behind Denmark and Sweden.

The Commissioner...

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