Monthly Archives May 2014

Online Business Shouldn’t Get Special Tax Treatment

May 30, 2014 Taxation in EU

BRUSSELS – Online businesses in the EU should be treated just like a standard physical business, and they should not face extra targeted taxes or have access to specialized tax breaks or tax planning opportunities.

On May 28th an Expert Group appointed by European Commission released a new report on potential changes to the taxation of online businesses operating in the EU, and stated that steps should be taken now to establish a viable and efficient system of taxes for digital businesses, in order to ensure economic growth, tax compliance and stable tax revenues into the future.

The report addressed the currently pertinent issue of special taxes on the profits of online businesses, as currently is being discussed in France and Spain, and it was stated that enacting such charges would be ...

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Tax Freedom Day Has Come in the UK

May 29, 2014 Taxation in UK

Tax Freedom DayLONDON – Tax Freedom Day has finally arrived for taxpayers in the UK, although, in reality, the day would come a full month later if the full extent of the government’s borrowing was taken into account.

Tax Freedom Day in the UK fell on May 28th this year, and workers in the country have now earned enough to pay off their tax obligations for this year, according to research completed by the non-government organization Adam Smith Institute.

This year Tax Freedom Day fell 147 days into the year, 3 days sooner than in the previous year, when the date was May 31st.

The experts of the Adam Smith Institute pointed out that while the date of Tax Freedom Day is marginally earlier this year, the overall picture is rather different over the long term, as fifty years ago the date was nearly a mont...

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Tax Cuts Save $30 billion in Canada

May 28, 2014 Taxation in Canada

Tax Cuts in CanadaOTTAWA – Canada has implemented tax cuts worth tens of billions of dollars over the last decade, but the reductions may be forcing the country into a budgetary deficit.

Over the last 9 years the government of Canada has instituted a number of tax cuts and allowance hikes, which now save each and every taxpayer nearly CAD 1 000 in tax payments per year, according to information in a new report released on May 27th by the watchdog Parliamentary Budget Officer (PBO).

According to the findings of the PBO’s research, cumulatively all of the tax cuts, credits, and allowances implemented since 2005 have the effect of reducing tax revenues by nearly CAD 17.1 billion per year, while the reductions to the rate of GST reduce tax revenues by CAD 13.3 billion per annum.

All of the implemented tax c...

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Poor Tax Systems Keep Developing Countries Out of Exchange Agreements

May 27, 2014 International Tax Cooperation

tax in developing countriesPARIS – The international community needs to offer assistance to developing countries to improve their tax system in order to create a cohesive global network of tax information exchange agreements.

A significant portion of developing countries around the world are not able to participate in the international network of information exchange agreements, as their own tax data collection and analysis capabilities are inadequate and far below global standards, according to new findings of the Centre for Tax Policy and Administration (CTPA) of the Organization for Economic Cooperation and Development, detailed in a live webcast on May 26th by its Pascal Saint-Amans.

In his presentation, Pascal Saint-Amans explained that while developing countries are some of the hardest hit by the negative effe...

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Cigarette Taxes Need to Be Hiked in SEA

May 26, 2014 International Tax Cooperation

taxes on tobaccoMANILA – Tobacco taxes in South East Asia are too low, and the minuscule prices of cigarettes are not doing enough to discourage people from the habit.

Late last week the World Health Organization (WHO) and the Southeast Asia Tobacco Control Alliance (SEATCA) held a workshop in Manila attended by government official of countries of South East Asia dedicated to discussion of the importance of raising taxes on tobacco taxes, in order to minimize the preventable death associated with smoking.

In his opening speech addressing the participants of the workshop, the WHO Regional Director for the Western Pacific Shin Young-soo stated that the despite the global trend to increase the taxation of tobacco products, the excise taxes in South East Asia are still too low compared to the developed world...

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