Monthly Archives January 2016

Canada to Lose CAD 9 Billion in Tax Shuffle

January 22, 2016 Taxation in Canada

OTTAWA – Canada’s move to shift tax burdens from the middle class to the rich will result in tax losses, despite previous promises that the change would be tax neutral.

In a new report released on January 21st the Parliamentary Budget Office of Canada has revealed that the recent changes to the rates of personal income taxes in the country will actually lead to a decrease in tax revenues.

Last year the personal income tax rates faced by high-income earners in Canada were raised, with the collected revenues intended to be used to offset the revenues losses arising from cuts to the tax rate faced by middle income earners.

Initially the government believed that the tax changes would be revenue neutral, and would not result in any decrease in the collections of personal income tax revenues.

Read More

1.5 Million UK Retirees to Pay 55% Tax

January 21, 2016 Taxation in UK

Family in UKLONDON – Millions of UK retirees could see their savings taxed at a rate of 55 percent, because they saved too much over their lifetimes.

New research conducted by the UK insurance provider Aviva indicates that as many as 1.5 million UK taxpayers will face a tax rate of 55 percent on any withdrawals they make from their retirement savings.

Currently, any taxpayers who save more than GBP 1.25 million for their retirement over their entire lifetime will face a penalty tax of 55 percent.

However, in April this year, the threshold will be lowered from GBP 1.25 million to GBP 1 million.

At the time that the change was first announced, the government claimed that the decrease would only effect an extra 55 000 savers, but according to the results of the new research, taxpayers who are earning a...

Read More

Azerbaijan Drops Interest Tax, Imposes Capital Flow Tax

January 20, 2016 Taxation in Azerbaijan

Swiss Bank SecrecyBAKU – As the Azerbaijani manat sees a continued decline, the government is now resorting to tax measures to ensure that capital is not transferred overseas.

Earlier this week the head of the Central Bank of Azerbaijan Elman Rustamov announced that new tax measures will soon be implemented to help reign in capital outflows from the country, and to encourage deposits to be kept in locals banks.

From February 1st this year, all interest paid on deposits held in local banks and local branches of foreign banks will be exempt from taxation, which was previously set at 10 percent.

Further, all money transfers abroad, including, foreign direct investment, foreign securities purchases, and foreign property purchases, will be taxed at a rate of 20 percent, however, the tax will not apply to forei...

Read More

Australian Cut Corporate Tax, If GST is Hiked

January 19, 2016 Taxation in Australia

CANBERRA – New research points has highlighted the potential benefits of cutting corporate tax in Australia, but it has also detailed the extra GST costs which need to be paid by everyday taxpayers.

On January 18th the Financial Service Council of Australia published the results of new research which indicated that the government should drastically cut the rate of corporate income tax to 22 percent from the current level of 30 percent.

It is estimated that implementing such a significant cut will help boost the national GDP by 1.9 percent, increase labor productivity and real wages by 1.8 percent and 1.4 percent respectively, while employment and investment levels would rise by 0.1 percent and 3.7 percent.

Further it was claimed that the reduction in the tax rate would reduce the governm...

Read More

UK Hospitals to See Sugar Tax

January 18, 2016 Taxation in UK

LONDON – The UK will see a sugar tax within 5 years, but, so far, it will be implemented only in hospitals and health centres.

The CEO of the UK National Health Service Simon Stevens is urging for a sugar tax to be enacted in all vending machines and cafes in the UK by the year 2020.

The so-called sugar tax will be enacted on the sale of sugary drinks and other sugar laden foods provided in all local health centres in the country, and most acute, mental health and community services hospitals.

No set rate has yet been proposed for the tax, but it was revealed that the price increases will be enacted over the next few years as new supply contracts and product lines are launched.

It is estimated that if the tax was set at approximately 20 percent, it could raise approximately GBP 40 million...

Read More