Monthly Archives September 2014

Australia’s Largest Companies Avoiding Taxes

September 30, 2014 Taxation in Australia

Taxes in AustraliaCANBERRA – Australia’s largest companies are actively taking steps to lower avoid their taxes, with 14 percent of companies paying no taxes at all.

Approximately one third of the companies in the Australian ASX 200 pay an effective tax rate of less than 10 percent and 57 percent of the companies have subsidiaries in secrecy jurisdictions, according to the result in a new report issued on September 30th by the independent group United Voice.

The experts of the United Voice noted that alongside the 29 percent of companies which pay less than 10 percent tax on their earnings, another 14 percent of companies pay no tax at all, while the headline tax rate of 30 percent.

The tax avoidance committed by these largest companies in Australia amounts to a loss of tax revenues equivalent to AUD 8...

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Tux Cuts Planned for Austria

September 29, 2014 Taxation in Austria

Tax cuts in AustriaVIENNA – Individuals in Austria will almost certainly enjoy a tax cut by the end of 2016, although the government has not specified how it will funds such cuts.

Over the weekend at a conference held in Schladming the ruling Social Democrats (SPO) party of Austria proposed that at least EUR 5 billion of new tax relief should be provided to taxpayers in 2016.

The tax reduction will come primarily in the form of a cut to the rate of personal income taxes from 36.5 percent to 25 percent for incomes exceeding EUR 11 000, with further tax cuts to be potentially implemented after 2018.

So far no details have been released on how the tax will be funded, but political experts have noted that there is a difference of opinion on this matter between the SPO and its coalition partner People’s Party (...

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Pakistan to Conduct 77 500 Audits

September 26, 2014 Taxation in Pakistan

Tax Audit in PakistanISLAMABAD – Tax authorities in Pakistan are attempting to stamp out tax evasion by conducting a significant number of tax audits on businesses and individuals around the country.

More than 77 500 taxpayers in Pakistan have been randomly selected to have their tax returns audited as part of the government’s annual random audit selection process, which took place on September 25th.

The 75 000 taxpayers were selected across six different categories, with 1 876 audits of corporate income tax filings, 63 050 audits of individual income tax filers, 1 410 audits for sales tax by corporate entities, 11 095 audits of sales tax from individuals, 45 audits of corporate filers of federal excise duties, and 24 audits of federal excise tax by individuals.

The number of audits to be conducted this y...

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German Clamping Down on Tax Evaders

September 25, 2014 Taxation in Germany

tax evasion in GermanyBERLIN – Germany is set to further crack down on tax evaders by restricting access to a voluntary disclosure program while also extending the statute of limitations on tax crime.

On September 24th the Cabinet of Germany approved new legislation lowering the threshold currently applied to the country’s voluntary disclosure program, a move which will make it harder for tax evaders to come clean about the past transgressions without facing any legal consequences.

Currently, tax evaders in Germany may come forward to tax authorities and disclose details of their unpaid liabilities, in exchange for not facing any penalties or additional fines, under the condition that the amount of taxes owing is less than EUR 50 000, with a penalty of only 5 percent on any amount exceeding EUR 50 000.

Unde...

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Pubs Cutting Prices in Tax Protest

September 24, 2014 Taxation in UK

Tax cuts for pubs in the UKLONDON – Pubs across the UK are cutting prices for a whole day as part of a campaign calling for the reduction VAT rates on businesses in the hospitality industry.

On September 24th more than 15 000 pubs and restaurants across the UK will reduce prices by 7.5 percent, as part of the Tax Equality Day campaign to reduce the rate of VAT in the UK.

The campaign was launched by the VAT Club, an independent body representing the hospitality industry, which claims that reducing the rate of VAT in the UK will lead to a wealth of economic and social benefits in the country.

According to the experts of the VAT Club, the hospitality industry employees at least 2 million people in the UK, and accounts for one in eight new jobs, and one in six of every job held by people aged between 18 and 24.

The re...

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