Monthly Archives July 2014

Australia Mining Tax Brings in Only 600k

July 31, 2014 Taxation in Australia

CANBERRA – Australia’s mining tax is bringing in less than a one percent of the amount it was expected to raise this year.

Australia only collected AUD 600 000 in tax revenues from Minerals Resource Rent Tax (MRRT) over the three month ending in June 2014, falling well short of the government’s forecast of AUD 150 million for the period, according to a statement issued on July 30th by the Treasurer of Australia Jon Hockey.

The Mineral Resource Rent Tax, which was first proposed in 2010, was originally expected to raise AUD 49.5 billion in taxes over the years between 2012 and 2016, however, the details of the tax were later revised and the revenue estimate for the same period was reduced to AUD 26.5 billion.

However, in reality the government currently only expected to see total collec...

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Fat Taxes Do Not Work As Intended

July 30, 2014 International Tax Cooperation

BIRMINGHAM – Taxes on unhealthy foods may change consumer behaviors, but they may not stop people from consuming unhealthy ingredients.

On July 29th the EU trade association for food and drink industries Just Food issued a new statement claiming that recent research conducted by the European Commission shows that taxes on foods high in salt, fat and sugar do not encourage consumers to purchase healthier products.

According to the Just Food, the research conducted by the EU showed that “…non-harmonised taxes on high sugar, salt and fat products such as soft drinks, sweet and salty foodstuffs do induce a reduction of the consumption of the taxed products,” however, consumers are likely to just turn to equally unhealthy cheaper products, or to other damaging substitutes.

Just Food conce...

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Tax Debt May Be a National Security Risk

July 29, 2014 Taxation in USA

WASHINGTON D.C. – The US is putting state secrets at risk by granting access to sensitive defense information to individuals who owe the government significant amounts of back taxes.

On July 28th the US Government Accountability Office issued a new report showing that as at June 2012 approximately 83 000 employees of the US Department of Defense with significant security had unpaid taxes, posing a credible risk to national security.

According to the experts of the GOA, employees with access to secret, top secret and sensitive information regarding state security may intentionally sell or provide access to the information to a third party in order to raise the funds necessary to meet their tax debts.

In the report the GOA stated that in June 2012 Department of Defense employees owed a cum...

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S.Korea To Tax Retained Earnings

July 28, 2014 Taxation in South Korea

SEOUL – Korea will use taxes to encourage companies to spend more on their employees and on new business projects instead of simply stashing their earnings.

While giving a speech at a seminar hosted by the Federation of Korean Industry over the weekend, the Finance Minister of Korea Choi Kyung-hwan announced that the government will soon propose a new tax on retained earnings held by businesses, a measure intended to encourage businesses to use their earnings more effectively.

The tax, which will be formally presented next month, will be charged at a rate of 3 percent on any retained earnings held by a businesses at the end of the year, however, the tax will not be applied if the businesses uses at least 65 percent of its annual net profits on “… investment, higher wages and dividend pay...

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Pakistan Takes New Approach to Business Taxation

July 25, 2014 Taxation in Pakistan

ISLAMABAD – Tax authorities in Pakistan will take a friendlier approach when dealing with business, in the hopes of boosting tax collections.

On July 24th the Director of General Intelligence and Investigation of the Inland Revenue Ejaz Hussain assured businesses in Pakistan that national tax authorities will not take any actions which could jeopardize business activity while collecting owed taxes.

The Director indicated that a key step to bridging the communications gap between business and tax authorities is to establish a Dispute Resolution and Advisory Committee comprised of members of the Federal Board of Revenue and the Islamabad Chamber of Commerce and Industry.

Further, Ejaz Hussain confirmed that the staff of tax authorities have been instructed not to use any coercive, specify...

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