Yearly Archives 2017

Korea Clamping Down on Cryptocurrency

December 14, 2017 Taxation in South Korea

litecoinSEOUL – Korea’s booming cryptocurrency market may come to a halt due to the government’s planned restrictions.

The government of South Korea has announced that it will take active measure to help quell dangerous speculation and abuse of cryptocurrencies.

Over the last week the international prices for cryptocurrencies have seen wild swings, which have been magnified in South Korea due to the popularity of such technology in the country.

During the course of a few weeks, the price of Bitcoin, the most popular coin in South Korea, has swung from KRW 14 million to KRW 25 million per coin.

The government has now announced that it will restrict access to cryptocurrencies and cryptocurrency based accounts in Korea, specifically banning minors and non-residents from accessing coins in South Kor...

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Kenya’s Tax Revenue Slowing Down

December 13, 2017 Taxation in Kenya

Kenyan tax revenueNAIROBI – Tac collections in Kenya have slowed down, when compared to growth in the economy.

New information released by the World Bank in its 16th Kenya Economic Update report has shown that the tax-to-GDP ratio in Kenya has fallen to its lowest level in a decade.

Over the 2016/17 financial year, the tax-to-GDP ratio fell to approximately 16.9 percent, even though the total level of revenues rose by 13.3 percent.

However, the growth in the level of tax revenues was outpaced by growth of the nominal GDP levels, which reached 14.9 percent in the same time period.

The World Bank explained that while the economy in Kenya grew at an impressive rate, the government coffers didn’t enjoy the same positive boost due to inadequate efforts to ensure tax compliance.

It was noted in particular tha...

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Meat Tax on the Way

December 12, 2017 International Tax Cooperation

taxing meatLONDON – Meat production is too damaging to the environment to remain untaxed.

In a press release issued on November 11th, the investor advocacy group Farm Animal Investment Risk and Return (FAIRR) warned that there is a very high chance that governments around the world will introduce a tax on meats in the near future.

The group claimed that the likelihood of a tax on meat will increase with the global implementation of the Paris Agreement, which will place stringent requirements on environmentally damaging practices and substances.

The impact of the Agreement may be to increase the effective cost and difficulty of raising animals for meat.

It was argued that it is becoming “increasingly probable” that some governments will choose to tax meat in a similar fashion to sugars, tobacco, or ...

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NZ Cracks Down on Tax Avoiders

December 8, 2017 Taxation in New Zealand

New Zealand tax rulesWELLINGTON – New Zealand may soon step up against large multinational businesses arranging their affairs to skip paying taxes in the country.

On December 8th the Taxation (Neutralising Base Erosion and Profit Shifting) Bill was introduced into parliament in New Zealand.

The bill will, if approved, help control the occurrence of tax evasion and avoidance committed in New Zealand by multinational companies.

The newly proposed rules are based on similar rules enacted and proposed around the world for combating tax evasion and base erosion.

The key points in the bill revolve around aggressive tax planning and the misuse of intercompany loans, hybrid mismatches, artificial arrangements, and illicit transfer pricing practices.

It is expected that if the new rules are implemented, they will lea...

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Seoul Wants Income Tax on Bitcoin

December 7, 2017 Taxation in South Korea

cryptocurrencySEOUL – Korean taxpayers love cryptocurrencies, and the government is hoping to cash in with an income tax on digital coins.

During the National Tax Administration Forum in Korea earlier this week, Kim Byung-il, a professor of the economics and taxation department at Kangnam University, called on the government to create a comprehensive framework for the taxation of cryptocurrencies.

Korea is currently one of the hotbeds of cryptocurrencies, with many coins trading at a significant premium on local exchanges.

The government was called on to thoroughly research and implement a tax on incomes garnered by Korean taxpayers on the sale of cryptocurrencies.

Systems would also need to be implemented to ensure that taxpayers are not able to avoid their income tax obligations by obfuscating the...

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