Monthly Archives April 2014

Legal Recreational Drugs to Face Extra Tax in New Zealand

April 30, 2014 Taxation in New Zealand

taxes on drugs in New ZealandWELLINGTON – Legal psychoactive substances may soon be subject to new taxes in New Zealand.

Over the weekend the Associate Health Minister of New Zealand Peter Dunne indicated that the government may consider implementing an extra tax on the sale of legal recreational drugs, locally known as “legal highs”.

If the new taxes is implemented, all legally available recreational drugs will be taxed similarly to alcohol or tobacco, in order to discourage use, and to raise extra funds to help offset the raised healthcare costs stemming from the use of the drugs.

The potential tax change is not the first move that has been made to reduce the use of the drugs, as only one day prior to the Minister’s statement the government announcement that manufacturers will now need to provide clinical evi...

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Tanzania Pushes Electronic Cash Registers to Boost Tax Collections

April 29, 2014 Taxation in Tanzania

DAR ES SALAAM – The government of Tanzania is urging retailers to make use of standardized cash registers to help ensure that their businesses are not neglecting their VAT obligations.

Over the weekend the President of Tanzania Jakaya Kikwete issued a statement confirming that the Tanzania Revenue Authority will resume a nationwide training program Electronic Fiscal Devices (EFD) by retailers.

The EFD devices were first introduced in Tanzania in 2010 in order to ensure that all businesses fully record and report their sales, making it harder for retailers to hide and neglect full VAT obligations .

The nationwide training program is aimed at not only at encouraging more businesses to adopt the use of the machines to help keeping track of sales and taxes owing, but also at highlighting the...

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Tax Transparency Improving Globally

April 28, 2014 International Tax Cooperation

PARIS – Tax transparency is improving around the world, with an increasing number of countries implementing and upholding new legal frameworks to facilitate the exchange of tax information.

Late last week the Organization for Economic Cooperation and Development issued a new statement with the results of 12 new reviews on the progress made by non-OECD countries towards implementing rules to promote tax transparency, showing that the “…international community continues making progress on tax transparency.”

According to the results of the OECD’s latest round of peer reviews, the “… legal and regulatory framework for transparency and exchange of information” in Columbia, Latvia and Saudi Arabia can now be deemed as adequate, and each of the countries now qualifies to undergo the next s...

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China Gives Tax Cut to Small Businesses

April 24, 2014 Taxation in China

Small Businesses in ChinaBEIJING – Small businesses in China are about to see their recieve a new temporary tax break, halving their tax obligation.

Over the weekend the State Administration of Taxation of China issued a new statement saying that small and micro businesses in the country will now automatically enjoy a significant reduction in their tax obligations.

From the start of this year until the end of 2016, all businesses in China with an annual taxable income of less than RNB 100 000 will see their income tax obligation slashed in half to a rate of 10 percent.

In its new statement the State Administration of Taxation emphasized that the tax break will be granted automatically to all qualifying businesses upon meeting their annual filing obligations, and any businesses which have already paid income tax...

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CBO Lowers Estimate of US Tax Revenue

April 21, 2014 Taxation in USA

US BudgetWASHINGTON D.C. – The Obama administration may be overestimating the tax revenues it will collect in the near future, and, as a result, the budget deficit over the next 10 years could be as much as USD 1.7 trillion higher than expected.

The proposed tax changes in the national budget plan, submitted by the Obama administration to Congress in March, will increase tax revenues and lower the national deficit, but not by as much as currently projected, according to a new report released late last week the Congressional Budget Office (CBO).

In its report the CBO showed that the measures set out in the plan would result in a cumulative budget deficit of USD 6.6 trillion over the next 10 years, approximately USD 1...

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