Monthly Archives August 2017

UK Landlords Persistently Dodging Taxes

August 19, 2017 Taxation in UK

Rental in the UKLONDON – The UK could be GBP 1 billion better-off if landlords didn’t dodge their taxes.

Landlord across the UK are avoiding billions in taxes by simply not declaring their rental incomes, according to new information released by Richard Murphy, a professor at the City University of London.

The researcher bases his claim on his own analysis of tax dodging in the Newham Council in London.

He estimated that approximately half of the landlords in the area have not registered for the self-assessment of their taxes.

The lack of registration equates to approximately GBP 200 million in missed annual taxes in London.

Richard Murphy believes that if the data and assumptions are extrapolated to a national level, then the annual loss of tax income could be in excess of GBP 1 billion.

Under current ...

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Sedans May See tax Break in Indonesia

August 15, 2017 Taxation in Indonesia

Sedan taxJAKARTA – Indonesia is mulling cutting taxes on sedans in order to boost the national car market, while potentially also enticing manufacturers to move more production to the country.

On August 14th an official at the Ministry of Finance of Indonesia Goro Ekanto said that the tax rate applied to sedans may be dropped from the current level of 30 percent to 40 percent.

The rate varies based on the engine capacity of the car, with vehicles of over 1.5 litres seeing a tax of 40 percent, while those with smaller engines faced the reduced rate of 30 percent.

Comparatively, multi-purpose vehicles face a tax rate of 10 percent to 20 percent.

Indonesia has the biggest market for cars in Southeast Asia, with approximately 1.1...

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P2P Taxes Must be Considered Now

August 11, 2017 International Tax Cooperation

p2p taxationWASHINGTON D.C. – Governments can longer ignore the growing influence of the global P2P economy and must choose how they will tax such businesses in the future.

The International Monetary Fund has released a new working paper which prompts governments around the world to consider the taxation measures that they will implement in regards to P-2-P economies and businesses.

Over the last several years, peer-to-peer businesses have played an increasingly important role in the economy.

However, the nature of peer-to-peer business means that the fundamentals of taxation that governments have relied on for decades are now being disrupted.

It was noted that the disruption comes from the comparative ease of avoiding tax obligations on incomes earned through P2P activity.

Further, P2P businesses ...

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South Korea Eyes Robot Tax

August 9, 2017 Taxation in South Korea

Robot taxSEOUL – The government of South Korea could be the first one in the world to implement a “robot tax”.

The government of South Korea is mulling extending a tax break available for businesses investing in automation technology, but reducing the rate of the deduction.

Currently, any business in South Korea which invests in industrial automation technology is eligible to receive a corporate tax deduction of 3 percent to 7 percent, with the exact rate varying based on the scope and size of the business in question.

The policy is currently scheduled to end this year.

However, the government is now mulling the potential implications of extending the program out until the end of 2019, but reducing the rate of the deduction by 2 percent
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Some experts have dubbed the potential move as a “robot t...

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Cigarette Taxes Lead to Robberies

August 8, 2017 Taxation in New Zealand

taxes on cigarettesWELLINGTON – The spike in break-ins in New Zealand has been linked to taxes on cigarettes, and the situation does not look set to improve.

British American Tobacco has suggested that the steady increases in the taxes charged on the sale of cigarettes in New Zealand could be the reason behind the recent spike in robberies around the country.

Currently, approximately 75 percent of the cost of cigarettes in New Zealand is comprised of taxes, with the average cost of a pack of 20 sitting at NZD 23.40.

Only 5 years ago the average price was approximately NZD 14.50.

The 60 percent increase has been blamed for the recent spike in robberies and break-ins, especially in cases where small corner stores were the victims.

New Zealand has raised taxes on cigarettes by 10 percent per year for the las...

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