Monthly Archives September 2015

China Cuts Taxes for Small Cars

September 30, 2015 Taxation in China

BEIJING – China is looking to improve the environment while boosting sales new automobiles by introducing a temporary tax breaks on small-capacity vehicles.

On September 29th the State Council of China announced that the 10 percent tax on the purchase of new vehicles will be halved on the purchase of cars with engine capacities lower than 1.6 litres.

The tax break, which is set to take effect on September 30th and last until the end of next year, is intended to reduce the consumption of energy and fuels in China, while at the same time boosting sales of automobiles.

The market for the purchase of new automobiles in China has seen a slowdown, in line with a general decrease in economic activity in the country, and also in line with the government’s crackdown on corruption.

Alongside th...

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French Budget Sees EUR2.4 Billion Boost

September 29, 2015 Taxation in France

PARIS – France’s fight against tax evaders is paying dividends, and will help the government cut taxes for households.

On September 28th the Minister of Finance of France Michael Sapin announced that the upcoming budget plan for the 2016 year has been boosted by approximately EUR 2.4 billion, following a series of success in stamping out tax evasion.

The extra money will come as a result of France’s ongoing push to convince taxpayers with offshore accounts to declare the previously hidden funds, incomes and capitals, and to pay any resulting tax obligations, but enjoy some reduction in penalties.

It is expected that the government will recover EUR 2.65 billion directly from taxpayers.

Over recent years the government has already cracked down on a number of tax evaders who were using o...

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Tax Hikes Force Smokers to Quit in New Zealand

September 28, 2015 Taxation in New Zealand

WELLINGTON – Constant hikes to the tax applied on the sale of cigarettes and tobacco in the last four years have forced have reduced cigarette sales by nearly a quarter.

Over the weekend the New Zealand Smokefree Coalition and Endsmoking NZ issued a joint statement claiming that new data provided to the national Ministry of Health indicates that the rates of smoking in the country are falling following a series of annual hikes on the rate of tax applied to tobacco products.

Since the implementation of an annual hike of 10 percent on the sale of tobacco products, the consumption per adult fell by approximately 6.3 percent per year, cumulatively resulting in a 23 percent decline in consumption between 2010 and 2014.

It was noted that as the consumption of cigarettes fell, the proportion of ...

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Tax Breaks for Electric Cars Used Only By Wealthy

September 25, 2015 Taxation in USA

WASHINGTON D.C. – Tax breaks for electric cars, solar panels and other green-technology in the USA are not being used by everyday people but by the country’s richest individuals.

New analysis completed by the researchers from the University of Carolina shows that tax breaks in the USA aimed at encouraging consumers to use green technology is being used almost exclusively by the richest people in the country.

Currently the federal government is offering tax credits of up to USD 7 500 for the purchase of electric vehicles, in an effort to encourage the use of such environmentally friendly technology.

However, over the course of 2006 to 2012, the latest years for which data was available, approximately 90 percent of these tax breaks were taken by the top 20 percent of earners in the country...

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New Capital Gains Rules Slammed in New Zealand

September 24, 2015 Taxation in New Zealand

WELLINGTON – New rules in New Zealand targeting property speculators are more likely to hit people faced with unforeseen personal circumstances then their actual target.

New Zealand’s proposed rules on the taxation of gains made from the sale of property will not have the intended effect, and will simply shift investor behaviour, instead of discouraging speculative investment, according to statements made by the New Zealand Law Society and the Chartered Accountants Australia and New Zealand to the Parliament’s Finance and Expenditure Committee, who are reviewing the rules before they can be implemented.

The new rules have been called the “bright line” test, which states that any capital gains made from the sale of property within two years of the initial purchase should be levied with ...

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