Monthly Archives December 2013

Tax Revenues Continue Growing in Brazil

December 24, 2013 Taxation in Brazil

RIO DE JANEIRO – Overall tax collections are on the rise in Brazil, but the growth is coming at the unintended cost of increased complexity for taxpayers.

Late last week the Federal Revenue Secretariat issued a new statement showing that the tax-to-GDP ratio in the country has risen for the third consecutive year in a row, reaching 35.85 percent in 2012, up by 0.54 percent compared to the previous year.

In real terms, the tax revenues for the year were approximately BRL 1.57 trillion, compared to a total GDP of BRL 4.38 trillion.

According to the Federal Revenue Secretariat, the increasing growth can be attributed to the continued stabilization of the national economy, and to the country’s decreasing unemployment, which has fallen to 4.6 percent this November.

The rise in collections was...

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Tax Collection Rise in India

December 23, 2013 Taxation in India

NEW DELHI – While the total amount of taxes collected in India is on the rise, the growth is below expectation, and may ultimately slow the government’s plan to lower the national deficit over the course of the current fiscal year.

In a statement issued on December 21nd the Finance Ministry of India confirmed that over the first 9 months of the year, from April until December 20th, the collection of direct taxes in the country rose by 13.7 percent, compared to the same period last year, reaching a total of INR 4.13 trillion.

The total collection of revenues was made up primarily of nearly INR 2.6 trillion worth of corporate income taxes, INR 1.4 trillion of individual income taxes, INR 34.27 billion of wealth tax, and INR 7.52 billion of securities transaction tax.

The government’s goal se...

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HMRC Defends Annual Performance

December 20, 2013 Taxation in UK

LONDON – UK tax authorities have been accused of not doing enough to curb the tax evasion and tax avoidance committed by multinational corporations, but the HMRC has responded saying that the claims are based on selectively picked facts and figures.

On December 19th the UK Public Accounts Committee (PAC) released HMRC Tax Collection: Annual Report & Accounts 2012-13, claiming that the national tax authority does not adequately address the occurrence of tax offenses committed by multinational businesses, and that “…in pursuing unpaid tax, HMRC has not clearly demonstrated that it is on the side of the majority of taxpayers who pay their taxes in full.”

In the newly published report the Public Accounts Committee claimed that over the course of the year the gap between the amount of taxes...

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Italy Loosens “Google Tax”, But Maintains its Necessity

December 19, 2013 Taxation in Italy

ROME – Italy has confirmed that online businesses must pay taxes in the countries where their profits arise, and still hopes to raise tax revenues from as early as next year .

Late on December 17th the Budget Committee of the Lower House of the Italian Parliament amended the proposed bill, which has already been called in the national media Google Tax, reducing the list of online business activities falling under the scope of the national tax regulations.

Under the originally proposed rules for the Google Tax, which have now been overturned, any entity drawing online profits from Italian customers, could only do so through a businesses residing in Italy for the purposes of tax legislation, and could not do it directly from overseas or through an overseas registered company, and these meas...

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Tax Revenues Grow in OECD

December 18, 2013 International Tax Cooperation

PARIS – Government revenues across the world are showing signs of a steady recovery following the economic shocks in 2008 and 2007, although the current tax take is still below the levels seen before the financial crisis.

Over the course of 2012 the tax-to-GDP ratios in OECD countries rose by 0.5 percent compared to the previous year, reaching an average of 34.6 percent, according to data contained in a new report released December 17th by the Organization for Economic Cooperation and Development.

In the report the experts of the OECD stated that the indicated increase has been mainly attributed to the combined effects of increasing tax rates in Europe, and to a noticeable rise in the collection of individual income taxes, which, in turn, are caused by growing economic activity in Europe ...

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