Monthly Archives June 2015

Rich Taxpayers Pay Less Tax Than Poor in UK

June 30, 2015 Taxation in UK

LONDON – New research has shown that high income earners see a salary far exceeding that of low income earners, and, additionally, they pay a much lower tax rate.

According to the results of new analysis conducted by the UK Office of National Statistics, low income earners in the UK pay a higher portion of their yearly salaries as income taxes compared to the highest earners in the country.

On average, the lowest earning fifth of households in the country see approximately 37.8 percent of their annual incomes paid out as taxes.

Comparatively, the highest fifth of earners see only 34.8 percent of their income come out as tax.

It was shown that while there is a significant difference in the rates of taxes paid out, high income earners still paid a larger monetary amount due to their higher...

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New Zealand Rules Out Sugar Tax

June 29, 2015 Taxation in New Zealand

WELLINGTON – The government of New Zealand hopes that education will be a more effective tool for fighting obesity than taxation.

In a media interview over the weekend the Minister of Health of New Zealand Jonathan Coleman reconfirmed that the government does not intend to implement a new tax on the sale of sugary drinks.

Researchers in the country have previously proposed that the sale of sugar-laden beverages should be levied with a tax of 20 percent in an effort to reduce consumption of such drinks and help combat obesity and other diet related disease.

The Health Minister conceded that some action needs to be taken to address the growing health problems, however, the focus will be on tightening the rules for advertising, while encouraging greater levels of dietary education and exerc...

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IRS Awards Billions to Tax Evaders

June 26, 2015 Taxation in USA

WASHINGTON D.C. – The IRS has awarded millions in contracts to businesses who owe taxes or have committed felonies.

In a new report the Treasury Inspector General for Tax Administration (TIGTA) claimed that the US Internal Revenue Service has awarded service contracts to providers who have outstanding debt obligations.

It was found that over the course of 2012 and 2013 the IRS awarded 57 contracts worth USD 18.8 million to 17 contractors who had not met their own federal tax obligations.

Under the details of regulations passed in 2012 the IRS is prohibited from awarding certain contracts to providers who have unpaid tax obligations or have been convicted of selected felonies.

The TIGTA recommended that the IRS updates its own policies regarding obtaining certification from suppliers reg...

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Multinationals Dodge $200 Billion Per Year

June 25, 2015 International Tax CooperationOffshore Taxation

GENEVA – Foreign investment is being routed via financial hubs and tax havens almost exclusively for the purposes of evading taxes.

In a recently released report the United Nations Conference on Trade and Development has claimed that multinational businesses around the world avoid approximately USD 200 billion per year.

The taxes are being avoided by routing foreign investment through financial hubs and tax havens.

It was noted that in some cases there are genuine reasons for foreign investment to be sent via a third country, but, according to the information in the report, in most cases the actual reasons was solely to minimize tax obligations.

It is estimated that investment via such intermediary countries accounts for 18 percent of all foreign investment coming into countries in Nort...

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France Takes Back EUR 20 Million of Dodged Taxes

June 24, 2015 Taxation in France

PARIS – France has seen marked success in collecting previously unpaid taxes, overpaid benefits, and tax dodged when importing goods.

On June 23rd the government of France announced that over the course of the 2014 year it has collected approximately EUR 20 billion from tax avoiders and benefit fraudsters.

During the year tax authorities collected UER 15.3 billion in taxes on previously undeclared taxes.

In addition, an extra EUR 4 billion was collected in the form of fines issued to the taxpayers for failing to declare their incomes.

The total amount of previously unpaid taxes brought in by tax collectors was approximately EUR 1.3 billion.

Further, an extra EUR 424...

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