Monthly Archives August 2015

New Zealand Proposes Property Withholding Tax for Offshore Investors

August 31, 2015 Taxation in New Zealand

WELLINGTON – Foreign property speculators selling residential property in New Zealand may soon face a withholding tax to ensure that all liabilities are paid on the profits made.

On August 31st the Inland Revenue Department of New Zealand issued a statement confirming that public consultation has begun on the proposal to implement a withholding tax on the sale of any residential property held by a non-resident.

Under the details of the proposal, when a seller who is classified as an “offshore person” sells residential property in New Zealand, a portion of the gains shall be retained by the lawyer facilitating the sale, to be subsequently paid out to the Inland Revenue Department.

The amount to be withheld will be the lower of either 33 percent of the gain on the sale or 10 percent of...

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Canadian Families Spend More on Tax Than Food, Shelter and Clothes

August 28, 2015 Taxation in Canada

OTTAWA – Taxes paid out by families in Canada have risen by almost 150 percent over the last 54 years.

The average Canadian family spends more each year on taxes than they do on food clothing and shelter, according to new research released by the Canadian non-government organization Fraser Institute.

In 2014 the average Canadian family paid out approximately CAD 28 887 for food, shelter and clothing combined, while earning CAD 79 010 in salaries, and at the same time they paid out a total of CAD 33 272 in taxes.

The outgoings are equivalent to 42.1 percent of the average income being paid out in taxes and 36.6 percent for basic necessitates.

It was noted that taxes have not always made up such a large portion of incomes, as in 1961 taxes accounted for 33...

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Only 0.3% Pay Direct Tax in Pakistan

August 27, 2015 Taxation in Pakistan

ISLAMABAD – More people are flying in an airplane at any given time then there are people paying direct taxes, such as income taxes, in pakistan in a year.

Pakistan suffers from endemic tax evasion, corruption, and inefficiencies in tax administration, leading to a poor tax-to-GDP ratio, according to information in a new report issued on August 26th by the Research and Advocacy for the Advancement of Allied Reforms.

Currently it is estimated that only 0.3 percent of the entire population of Pakistan are paying any direct taxes, a level which is equivalent to approximately 500 000 people out of a total population of 170 million.

It was specifically noted that at any given time there are more people in the world who are aboard an airplane, then there is people paying direct taxes in Pakista...

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New Zealand Introduces New Property Tax Rules

August 26, 2015 Taxation in New Zealand

WELLINGTON – Property investors in New Zealand will no longer be able to sell properties without paying taxes on their incomes.

On August 24th a new Bill was introduced in New Zealand proposing tougher rules on the taxation of income garnered from the sale of property.

The key feature detailed in the Bill is the introduction of a “bright line” test, which would require taxpayers to pay income tax on any earnings made from the sale of property, if that that property has been held for less than two years since the time of purchase.

The only exception to the proposed rule is for homes which are the primary residence of the seller, or homes which were received as part of an inheritance or a relationship settlement.

The new rule will also not apply to commercial property and farms.

The ...

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South Africans Rush to Submit Tax Returns

August 25, 2015 Taxation in South Africa

PRETORIA – Almost half of all personal tax returns due this year in South Africa have already been submitted, eventhough there is more than a month left to go until the deadline.

Personal tax returns in South Africa are being filed faster rate this year than in the previous year, according to new information released in a new statement on August 24th by the South African Revenue Service.

As at August 20th at 5pm just over 2 million of the tax returns due to be submitted this year were filed through the tax authority’s online submission system.

The 2 million submitted tax returns represent 44.77 percent of all the tax returns due in, a level which is significantly higher than the 39.31 percent submitted at the same time in the previous year.

It was noted that the number of people still usi...

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