Yearly Archives 2014

Japan to Lower Corporate Taxes

December 31, 2014 Taxation in Japan

TOKYO – The government of Japan is encouraging businesses to raise employees’ salaries by reducing the taxes faced by business.

On December 30th the ruling coalition approved a cut to the rate of corporate taxes in the country, while giving indication that even further cuts may be enacted in coming years in order to boost economic activity.

Currently the top effective tax rate on corporate profits in Japan is 34.6 percent, however, under the details of the government’s proposal, the rate will fall to 32.1 percent in April, falling to a further 31.3 percent in April 2016.

The cuts are expected to result in the loss of tax revenue collections of approximately JPY 400 billion over the course of the next two fiscal years.

The reduction in the tax obligations faced by businesses is intende...

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Empty House Tax Will Boost Property Market, Raise Revenues

December 30, 2014 Taxation in UK

LONDON – Houses prices in the UK fall, if local governments were given greater power to tax empty properties.

On December 28th the UK based non-government organization the Institute of Public Policy Research issued a new report on the extent and number of empty properties in the country, and suggesting that tax measures can be used to alleviate the situation.

The experts of the Institute claimed that there are currently 635 000 unoccupied homes in the UK, with 216 000 of them being unoccupied for at least the last six months.

Currently properties which have been empty for over 2 years may be liable to face an Empty Homes Premium charged at a rate of 50 percent of the Council tax owed by the property owner.

However, in its report the IPPR called for the 50 percent premium should be abolish...

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Australia May Drop GST Threshold on Online Sales

December 29, 2014 Taxation in Australia

CANBERRA – Consumers in Australia will soon face higher prices for goods, as the government is looking at charging GST on all online purchases.

In a recent radio interview, the assistant treasurer of Australia Josh Frydenberg announced that the government will evaluate the feasibility and practicality of applying GST to online purchases worth less than AUD 1 000.

Currently, GST is not applied to purchases of goods worth less than AUD 1 000 from internet retailers located outside of Australia.

The assistant Treasurer noted that in the past the threshold has not been removed, or even reduced, as the compliance costs of enforcing the rule were too high, however, continuing improvements to internet technology and monitoring methods mean that it is now possible for tax authorities to ensure en...

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Tax Credits Expire for Hydrogen Cars

December 24, 2014 Taxation in USA

WASHINGTON D.C. – Hydrogen fuel-cell cars in the USA are set to become more expensive, as Congress allows tax breaks on such vehicles to expire.

On December 31st the US federal tax break on the sale of hydrogen fuel cars is set to expire, and the US Congress has not finished work for the year without approving an extension to the tax break.

Currently, the purchase of a hydrogen powered car is eligible for a tax credit of USD 4 000, with an additional tax credit of up to USD 4 000 based on the efficiency of the vehicle compared to present fuel efficiency standards.

The tax credit could potentially be approved in 2015 and could be applied retroactively, although any individual purchasing a vehicle between the end of the year and the extension will not have any guarantee that the credit wil...

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Scotch Whisky Tax is Unfair

December 23, 2014 Taxation in UK

LONDON – The high tax burden placed on the sale of whisky is placing a financial burden on taxpayers in the UK and the domestic scotch industry, and is considered to be unfair by most taxpayers.

On December 21st the Scotch Whisky Association issued a new statement with the results of recent research showing that a large proportion of taxpayers in the UK are not aware of the high tax burden placed on the purchase of scotch whisky.

According to the experts of the Scotch Whisky Association, as much as 89 percent of people in Scotland believe that the amount of taxes imposed on the sale of whisky in the UK is unfair, and should be reduced, while at the same time the Associations also concluded that two thirds of all taxpayers are unaware of the tax burden on whisky.

Currently the average bott...

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