Monthly Archives March 2017

Kenya to Launch Tax Amnesty

March 30, 2017 Taxation in Kenya

Kenyan tax amnestyNAIROBI – Kenya is offering a generous tax amnesty to local taxpayers, however, those skipping out on the offer will face investigation.

On March 28th the Deputy Commissioner of the Kenya revenue Agency James Ojee announced that the tax authority would be opening a tax amnesty to allow national tax payers to come clean about their hidden offshore wealth.

Kenyan taxpayers will now be offered the opportunity to file by December 31st 2017 the correct tax returns for the year ending December 31st 2016.

Taxpayers who make use of the tax amnesty to disclose their businesses, property, income and assets overseas, will enjoy a waiver for the taxes, interests and penalties for the years up, and including, to 2016.

Those who do not make use of the tax amnesty will face an investigation to determin...

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Saudi Arabia Slashing Tax for Oil Companies

March 28, 2017 Taxation in Saudi Arabia

Oil producers taxRIYADH – Saudi Arabia is eye tax changes which are stacked to heavily benefit the IPO of the state oil producer.

The government of Saudi Arabia has now announced that it will retroactively reduce the income tax paid by oil companies operating in the country, although some experts believe that the move is intended to increase the interest in the IPO of the state oil producer Saudi Aramco.

Currently, oil producers in Saudi Arabia are charged a rate of income tax of 85 percent, which would now be reduced to a rate of 50 percent, applicable for all incomes from January 1st this year.

The rate of the tax will vary based on the amount of investment committed by each respective firm, with lower levels of investment seeing a higher rate, maxing out at the current level of 85 percent.

It is expe...

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EU Banks Booking Profits in Tax Havens

March 27, 2017 International Tax CooperationOffshore Banking

Taxes on banksOXFORD – EU’s biggest banks are seeing millions of dollars being made in profits, in countries where they have no branches or staff.

According to the information contained a in a new report released by Oxfam International on March 27th, approximately a quarter of all profits and activity booked by the 20 biggest banks in Europe is booked through entities located in tax havens.

Oxfam suggested that the activity which is said to transpire in tax havens is actually booked through locations which have few, if any, any bank staff, and, therefore the proportion of profits moving through tax havens is well out of proportion to the economic realities of the bank’s business.

However, if the activity in the tax havens is real, then it would mean that the employees located in tax havens are, on a...

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GST Applies to Uber in Canada

March 25, 2017 Taxation in Canada

Taxes on Uber ridesOTTAWA – Uber users will soon be coughing up a little bit extra for their rides, as the Canadian government slaps GST on all ride-sharing services.

Uber and similar applications and services will soon fall under the scope of the Canadian GST system, according to an announcement made during the release of the latest national budget.

Currently, Uber and similar ride-hailing services in Canada do not fall under the scope of GST, unlike traditional taxis services.

According to the Finance Minister of Canada Bill Morneau, the move to apply GST to Uber rides already has precedent, as traditional taxis are taxed, meaning that the moves is “consistent with what Canadians expect”.

He added that the change is part of the government’s efforts to make the tax system fairer, more consistent, and ...

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Poland Eyes Detection System for Tax Cheating

March 23, 2017 Taxation in Poland

Tax collections in PolandWARSAW – Poland hopes to catch out tax cheats by automatically monitoring bank transactions for high risk deals.

The Finance Ministry of Poland has announced that it will soon establish an electronic verification system using bank data to catch out VAT fraud.

The new system is meant to catch out tax cheats who issue fake invoices in order to claim unwarranted tax VAT rebates.

The system will work by conducting risk analysis of transaction going through the national finance sector.

If initiated, the new system could be functional as early as June this year.

In the first year of operations, the tax system could help recover 10 percent to 15 percent of the fake tax claims.

Based on the estimated recovery rate, the government of Poland could see tax revenues rise by as much as PLN 600 mil...

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