Yearly Archives 2016

Sale of Luxury Property Should Be Taxed in Australia

January 11, 2016 Taxation in Australia

Ireland Property TaxCANBERRA – Australia could earn billions in tax revenues by dropping the tax exemptions for the sale of high priced houses.

In a new research paper released on January 1th the independent think tank the Australia Institute claimed that the exemption of capital gains tax on the sale of property does little to benefit low-income families, instead providing significant benefits to the country’s wealthiest taxpayers.

It is estimated that in the 2015 – 2016 financial year the country’s wealthiest citizens will enjoy tax breaks of AUD 46 billion due to the capital gains tax exemption.

The total amount of the tax exemptions will rise to as much as AUD 189 billion from the tax exemption by the year 2020.

It was suggested that the tax exemptions should no longer apply to the sale of houses w...

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Mexico’s Sugar Tax Sees Success

January 8, 2016 Taxation in Mexico

MEXICO CITY – Despite previous doubts, Mexico’s sugar tax has reduced the consumption of sugary drinks in the country.

The sugar tax recently enacted in Mexico has been shown to have had a positive effect on consumer spending habits, with consumption of sugary beverages having fallen since the measure was put into force.

In 2014 Mexico introduced a tax of 10 percent on the sale of sugar-sweetened drinks, a move which placed Mexico at the forefront of countries introducing tax measures aimed at reducing the consumption of unhealthy foods.

According to the results of the study, the tax led to a 6 percent reduction in the sale of sugary drinks, compared to the average level of sales of the previous two years.

Further, in 2015 the level of sales was 12 percent lower than the previous level...

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Egyptian Companies Take Steps to Avoid Dividend Tax

January 7, 2016 Taxation in Egypt

CAIRO – Egypt’s new tax on dividends is facing a grim future, as companies take steps to circumvent the measure.

Publicly listed companies in Egypt are increasingly opting to forego issuing dividends, in favour of bonus shares, in an effort to bypass the government’s recent tax on cash dividends.
As of July 2014 all cash dividends made by a publicly listed company in Egypt are subject to a tax of 10 percent.

The tax was intended to broaden the government’s tax base, and raise tax collections, following a period of political turmoil.

However, as over the course of 2015 the cumulative value of the cash dividends issued by the companies dropped by 28 percent in comparison to the level of dividends in the previous year, reaching a level of only EGP 9.83 billion, compared to EGP 13...

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Thailand Lowering Taxes

January 5, 2016 Taxation in Thailand

Thai Money Money MoneyBANGKOK – The government of Thailand is hoping to boost tax collections by lowering taxes and looking the other way over businesses’ past tax in-compliance.

On January 4th the Finance Ministry of Thailand announced that in 2017 individual taxpayers may see a cut in the rate of their income taxes, and business may see an easing of their tax obligations from the start of the current year.

Currently, the marginal rate of income tax faced by individuals lies between 5 percent and 35 percent.

However, in 2017 the rate could be reduced, with the top rate falling closer to the corporate tax rate of 28 percent, while the lower tax rates could be reduced further to provide relief to low income families.

The Ministry believes that the reduction of the tax rate may not lead to a reduction in tax...

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New Zealand Hikes Cigarette Taxes

January 4, 2016 Taxation in New Zealand

WELLINGTON – Days after the government of New Zealand hiked the taxes on cigarettes claims have come forward that the rise is nothing but a revenue gathering mechanism.

On January 1st the excise taxes on the sale of cigarettes and tobacco in New Zealand were raised by 10 percent.

The latest tax hike is the fourth annual rise implemented by the government as part of a new regulation enacted in 2014.

Following the hike, the average price of a 20 pack of cigarettes is now well over NZD 20, and it is estimated that the habit costs the average smoker in excess of NZD 7 000 per year.

In previous years the annual tax hikes have led to a surge in use of free public smoking cessation services, with the national Quitline program reporting a 1 685 jump in the number of sign ups within the first wee...

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