Monthly Archives August 2017

Cuba Worries About Tax Evasion

August 7, 2017 Taxation in Cuba

CubaHAVANA – Tax evasion and smuggling have forced the government of Cuba to stop issuing new licenses for some businesses.

The government of Cuba is ceasing the issuance of business licenses until the problems associated with self-employment have been perfected.

Previously, Cubans who wanted to strike out and be self-employed could be issued a license by the government to run their own business.

However, the growing prosperity of some business owners displeased government officials.

Of particular ire to lawmakers were bed and breakfast owners who, in one night, could see incomes equivalent to the average weekly wage of a state-employed worker.

The government also noted that the self-employed may be neglecting to pay their full tax obligations, or even evading their taxes entirely.

In order t...

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New Zealand Closing Tax Loopholes

August 4, 2017 Taxation in New Zealand

Taxes in New ZealandWELLINGTON – The options for multinationals trying to dodge taxes in New Zealand are numbered, as the local government proposes new measures to tackle tax dodging.

On August 4th the government of New Zealand confirmed its plans to tackle tax avoidance of multinational businesses by introducing several new anti-avoidance measures.

The government hopes to see an extra NZD 200 million in extra taxes drawn from large multinational companies.

It is expected that the focus of any changes would be targeted at tech firms, which have recently been in the international spotlight for their tax behaviours.

The proposed changes revolve around stopping international parent companies charging exorbitant interest rates to their New Zealand subsidiaries; elimination of artificial arrangements which allow c...

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NZ Researchers Say Double Tax Hikes on Cigarettes

August 2, 2017 Taxation in New Zealand

Smokefree NZWELLINGTON – New Zealand needs to double-down on its fight against smoking, if it wants to reach its goal of a smoke-free nation.

The result of joint research conducted by the University of Otago in New Zealand and the health advocacy group H?pai te Hauora have led to a push for a doubling of the tax hikes on tobacco products sold in New Zealand.

Currently, the tax rate on tobacco in New Zealand is scheduled to be increased by 10 percent per year on January 1st, until 2020.

The hikes are part of the government’s “Smokefree 2025” strategy, which is intended to see a reduction in smoking rates in the country, to the point where less than 5 percent of New Zealanders are smokers by 2025.

The researchers are now claiming that in order to meet the goal, the government will need to incre...

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Audits Scare Businesses into Paying Tax

August 1, 2017 International Tax Cooperation

Tax auditWASHINGTON D.C. – Business can be scared into paying more tax, simply by being shown the likelihood of being audited.

Statistical information about the possibility and repercussions of audits can scare businesses into paying more tax, according to the results of new research published by the National Bureau of Economic Research.

The results were derived by a team of researchers who worked with the Internal Revenue Service of Uruguay to send letters to more than 20 000 companies across the country.

The companies received letters either providing generic information about taxes and audits, or a letter containing information about the statistical probability of being audited, and the likely penalties from the audit.

The researchers found that the letters presenting statistical information ...

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