Monthly Archives November 2016

Canada Needs Tax Changes to Remain Competitive

November 30, 2016 Taxation in Canada

Taxes in CanadaOTTAWA – Canada needs to consider significant changes to its tax system, if it wants to remain competitive against major economies such as UK and USA.

In a new report, researchers from the Canadian School of Public Policy claimed that Canada may be losing out on international business and investment due to a local trend of raising the rate of taxes faced by businesses.

It was noted that in the report that the climate, vastness, and cost of doing business in Canada has been a detraction for international businesses looking at the country, although, in recent times Canada has been increasing its attractiveness as a business destination through a concentration on tax competitiveness.

However, recently the federal and provincial governments of Canada have opted to raise the taxes on business...

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Australian Backpacker Tax to Be Set at 15%

November 29, 2016 Taxation in Australia

Backpacker tax in AustraliaCANBERRA – Australia has reached a compromise on its controversial “backpacker tax” which will now be set at 15 percent.

On November 29th the One Nation party of Australia pledged its support to the government of Australia to implement a special tax rate for travellers working in Australia, ending months of debate and controversy on the issue.

Currently, backpackers working in Australia face the same system of personal taxes as Australian citizens, and are not liable for personal income tax until their annual earnings exceed AUD 18 500 per year.

However, in its latest budget proposal the government stated that it intends to see backpackers pay a rate of 32.5 percent from the first dollar earned.

Following the announcement of the 32...

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IMF Evaluates Gulf Tax Plans

November 28, 2016 International Tax Cooperation

Taxes in the GCCRIYADH – The countries of the GCC should continue to make joint progress toward implementing a VAT, but should approach sin taxes and remittance taxes with caution.

Last week the International Monetary Fund issued a new report on the potential for tax diversification in the countries of the Gulf Cooperative Council.

It was noted that due to the region’s relatively low tax burdens, the governments of GCC countries have the opportunity to create a modern and efficient tax system by eliminating any wasteful and inefficient existing taxes to be replaced with new highly targeted levies.

However, while there is significant room to implement a new tax system, it was warned that any changes should be paced to allow businesses and taxpayers to adjust, in order to ensure the long-term sustainabi...

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Wealth Tax Evaluated for Ireland

November 25, 2016 Taxation in Ireland

Tax on Wealth in IrelandDUBLIN – A wealth tax in Ireland, as applied elsewhere in the EU, could raise as little as EUR 22 million per year, or as much as EUR 1.3 billion per year.

In a report released earlier this week researchers from the Economic and Social Research Institute of Ireland attempted to ascertain the potential revenues which may be raised from the imposition of a tax on household wealth in the country.

The researchers did not propose any particular set of parameters for the wealth tax, and, instead, opted to examine the impact that already implemented taxes from around Europe would have in Ireland.

It was found that if the French wealth tax system was transferred to Ireland, it would only result in tax collections of EUR 22 million per year, as it is only applied in cases where an individual has as...

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Family Tax Breaks Cause Disparity in S.Korea

November 24, 2016 Taxation in South Korea

Tax breaks for Korean families with childrenSEOUL – Efforts by the government of South Korea to boost the national birthrate through tax breaks have led to a growing divide between the taxes paid by families and single people.

Tax benefits available to couples with children in South Korea have effectively increased the disparity between taxes paid by families and single taxpayers in the country, according to the results of new research released in the journal of the Korea Academic Society of Taxation.

South Korea has several tax breaks available for families with children, with the breaks being cumulative for more than one child.

The tax measures were enacted in order to counter the country’s dwindling birth rate, which currently sits at approximately 1...

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