Monthly Archives July 2017

Panama Papers Scare Pakistan’s PMs into Compliance

July 28, 2017 Taxation in Pakistan

Pakistan taxISLAMABAD – MPs in Pakistan have started to report their full incomes and pay their full tax obligations, with some MPs reporting a 3 900 percent spike in payments.

Parliamentarians in Pakistan are owning up to the extent of their personal incomes and declaring levels which are closer to the truth in the new Parliamentarian Tax Directory released earlier this week.

The Parliamentarian Tax Directory is a recent initiative aimed at encouraging PMs to declare and pay their full tax obligations.

It is believed that the cause of the spike in tax payments is a combination of the efforts made by the government to encourage tax compliance and the after-effects of the infamous Panama Papers scandal.

It is thought the increasing likelihood of illicit tax behaviour coming to light has scared some p...

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Electric Cars Will Lead to Tax Changes

July 27, 2017 Taxation in UK

electric cars in the UKLONDON – Electric cars may be good for the environment, but they will not be good for the UK’s tax revenues.

Taxation and car experts in the UK have come forward to warn that the government will need to implement new car taxes in the future.

The warning has come within days of the government of the UK announcing that by 2040 all new vehicles purchased in the country will need to be electric.

Currently, approximately 65 percent of the purchase price of fuel in the UK is made up of taxation, in the form of VAT and fuel duties.

As an increasing number of consumers switch to electric vehicles, the revenues drawn from fuel sales will fall.

It is estimated that for every GBP 1 spent on charging a car, the government will earn approximately GBP 0.05.

Further, as home solar-arrays become more rel...

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Tax Breaks for Start-Ups Fall Flat in South Africa

July 25, 2017 Taxation in South Africa

Tax breaks for startupsPRETORIA – Tax breaks aimed at fostering a thriving small-business and start-up environment in South Africa have been labelled a resounding failure.

New information released by the South African Revenue Service indicates that the government’s endeavour to boost investment into small business has failed, as over the last two years only one entity has taken advantage of a special tax break for businesses making grants to small businesses.

Currently, an entity which makes grants to small businesses is able to enjoy tax exemptions, if it is registered for the exemption with tax authorities.

The businesses which receive the grants from a registered entity would also enjoy exemptions.

The program of exemptions was started in March 2015, and was intended to encourage a greater level of inves...

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New Zealanders Mull Tourist Tax

July 25, 2017 Taxation in New Zealand

Tourism Tax in New ZealandWELLINGTON – New Zealanders are looking to tax incoming tourists in order to help pay for the maintenance of national parks, reserves, and huts.

The results of a new survey released in New Zealand on July 24th has shown that local taxpayers support the prospect of a new tax to be paid by tourists.

Approximately 64 percent of respondents said that they would support a so-called “tourist tax” which would be paid by international tourists upon arrival to the country.

The funds from the proposed tax would be diverted to the national Department of Conservation, for the development of national reserves, huts, and for conservation efforts.

The public call for a tourist tax comes as the government funding for the Department of Conservation continues to dwindle, while the number of tourists c...

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South Africa Eyes Global Income Tax

July 21, 2017 Taxation in South Africa

Income Tax in South AfricaPRETTORIA – Within 2 years South Africans working overseas will be paying taxes in South Africa on their foreign incomes.

South African taxpayers working overseas may soon see a drastic rise in their tax bill, as tax authorities make moves to begin levying income tax on money earned while working overseas.

The South African Revenue Service released a proposed amendment to the national tax code, which would require any South African taxpayer working outside the country to continue paying income tax on their foreign earnings.

Under current regulations, any South African taxpayer who is out of the country for 183 per year, and meets some pre-set income thresholds will not be required to pay income tax on their overseas earnings.

The proposed legislation does allow for a rebate on the taxe...

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