Monthly Archives October 2015

Canada Needs to Hike To Marginal Rate

October 30, 2015 Taxation in Canada

OTTAWA – Canada could more than double its top marginal tax rate, raising enough money to pay for universities and national infrastructure development.

Canada’s top marginal tax rate on personal incomes could be raised significantly, according to the results of a new study published on October 29th by the Canadian Centre for Policy Alternatives.

Currently, the top marginal income tax rate on personal incomes is set at 29 percent on incomes exceeding CAD 136 270 per year, however, the current administration has previously claimed that they would implement a new tax bracket of 33 percent for those earning more than CD 200 000.

The Centre claimed that the current rate, and the proposed rates, are too low, as in the past the top rate of tax on high income earners has been in excess of 50 per...

Read More

UK Drops Energy Project Tax Breaks

October 29, 2015 Taxation in UK

LONDON – In order to allay the fear that community energy projects are being misused by venture capitalists, the UK government has dropped the tax breaks previously made available for the construction of renewable energy projects.

On October 26th the Financial Secretary to the Treasury David Gauke announced that community energy projects in the UK will no longer be eligible for tax breaks, a move which will put even more strain on the sector.

From November 30th this year, community energy programmes will no longer be eligible to receive Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) tax relief, or Social Investment Tax relief (SITR).

Explaining the decision to cut tax breaks for the community energy programs, the Financial Secretary said that the new rules...

Read More

Tax Wealthy to Fund Universities in South Africa

October 28, 2015 Taxation in South Africa

PRETORIA – In order to help poor students attend higher education South Africa needs to tax the wealthy.

In an address to parliament on October 27th the Minister of Higher Education and Training of South Africa suggested that the government should introduce higher taxes to be paid by wealthy individuals in order to fund universities.

The Minister claimed that overall South Africa has enough wealth to fund free higher education for poor students, however, much of the funds are locked up in the private sector, outside of the government’s control.

He went on to say that “…my own considered view is that government must have the political will to tax the rich and the wealthy to fund higher education...

Read More

UAE May Soon Implement New Taxes

October 27, 2015 Taxation in UAE

DUBAI – The UAE may soon need to implement VAT or corporate taxes in order to compensate for falling oil revenues.

As the UAE faces decreasing tax revenue in the face of an ongoing rut in global prices for oil, the government has indicated that in the near future extra taxes may be implemented in order to continue paying for public services.

The UAE has traditionally been a major supplier of oil to the international market, with the sales being the most significant source of revenues for governments of the UAE.

However, as the international prices of oil have stayed at USD 50 or below for a significant amount of time, the governments are now strapped for funds.

In regards to this potential shortage of funds, the Minister of the Economy of the UAE Sultan Bin Saeed Al Mansouri said that tax...

Read More

Bitcoin Exchange Wont Face VAT

October 23, 2015 Taxation in EU

BRUSSELS – Cryptocurrencies have taken an extra step towards wider acceptance in the EU, as a new court ruling places the new currencies on par with standard fiat currency.

In a statement made on October 22nd the European Court of Justice announced that a new ruling has been made that the purchase of Bitcoin and other cryptocurrencies should be exempt from VAT.

The Court ruled that when consumer in EU purchase or sell any cryptocurrencies they will not be subject to VAT, as though they were buying a good, as these new currencies are now to be treated as a traditional fiat currency.

In effect the new ruling means that cryptocurrencies are now regarded as standard currency like notes or coins.

The new ruling does not exclude any profits made from the exchange of cryptocurrencies from the...

Read More