Monthly Archives May 2015

Tax Collections Spike in Israel

May 12, 2015 Taxation in Israel

JERUSALEM – Israel has seen a budget surplus, following a small rise in the collection of tax revenues.

According to new information issued by the Finance Ministry of Israel the tax revues collected over the first four month of this year rose by 6.1 percent compared to the levels seen over the same period during the previous year.

The total tax revenues collected over the four month was approximately ILS 91 billion.

The increase in tax revenues has been attributed to an 8.3 percent rise in the collection of direct taxes, and a 3.5 percent rise in the collection of indirect taxes.

In line with the rise in collections, the government saw a budget surplus of ILS 300 million of the first quarter.

It is expected that the better than forecast conditions will ease the pressure faced by the go...

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New Zealand Sees Rise in Tax Collections

May 11, 2015 Taxation in New Zealand

WELLINGTON – Tax collections are on the rise in New Zealand, but the change is small, and may be reversed by the end of the year.

On May 11th the Treasury of New Zealand released the Financial Statements of the Government of New Zealand for the nine months ending March 31st 2015, showing that the government revenues for the period were above expectation.

Over the nine months the core crown tax revenues reached a level of NZD 48.2 billion, a level that is 1.8 percent above the forecast released earlier in December 2014.

It was noted that approximately half of the unexpected increase is a temporary spike caused by an unforeseen rise in the collection of corporate income tax and personal income tax, but this portion of the rise could be reversed by the end of June.

Alongside the increase in ...

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Germany Looks at Tax Cuts

May 8, 2015 Taxation in Germany

BERLIN – Improved economic conditions in Germany may allow the government to address the problem of tax creep.

On May 7th the Finance Minister of Germany Wolfgang Schaeuble indicated that between 2016 and 2019 the national government will see tax collections exceed previous expectations by approximately EUR 38 billion.

The Minister indicated that the increased revenues will give the government more room to manoeuvre in regards to cutting taxes for individuals.

In particular the Minister indicated that the tax changes will be focussed on addressing the problem of tax creep, whereby incomes are growing faster than the rise of tax threshold, forcing some individuals into higher tax brackets, despite their purchasing power not growing.

It is estimated that addressing the tax creep will cost...

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1 580 Employed by the IRS

May 7, 2015 Taxation in USA

WASHINGTON D.C. – The IRS has repeatedly hired tax evaders, and, in many cases, retained the tax dodgers even when it was shown that they have willfully skipped out on their tax obligations.

Over the 10 years between 2003 and 2013 a total of 1 580 IRS employees were found to have wilfully evaded their own tax obligations, according to the results in a new report issued on May 6th by the Treasury Inspector General.

In 39 percent of cases where it was found that an employee has neglected their tax obligations was fired, however, in 61 percent of cases the recommended action of firing the employee as mitigated to a lower penalty, such as suspensions, reprimands, or counseling.

Among the willful tax offenses uncovered by the TIGTA investigation were cases of willful overstatement of expenses,...

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Tax Freedom Day Delayed in New Zealand

May 6, 2015 Taxation in New Zealand

WELLINGTON – The slow rise of incomes in New Zealand is pushing Tax Freedom Day further into the year.

According to new information released by the accounting firm Staples Rodway, in New Zealand Tax Freedom Day will fall on May 7th, two days later than in the previous year.

The delay in the date of Tax Freedom Day has been attributed to the country’s recovery from the global financial crisis several years ago, as now many businesses are seeing a strong recovery, and a subsequent rise in the income taxes paid.

Further, the recovery is leading to a pickup in salary increases paid to individuals, which in turn is raising the amount of tax paid out for the year.

It was also noted that the increase in the salaries earned by individuals is highlighting the problem of bracket creep, whereby...

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