Monthly Archives October 2017

South Korea to Tax Vapes

October 31, 2017 Taxation in South Korea

Vape taxSEOUL – E-cigarettes and other cessation devices may soon be taxed the same as cigarettes in Korea.

The government of South Korea is mulling a change in tax legislation which could see a significant spike in the price of-cigarettes.

In November this year, lawmakers are expected to vote on a bill to enact a 90 percent tax on the sale of e-cigarettes and heat-not-burn cigarettes.

The tax will roughly match the tax treatment of regular cigarettes and tobacco products.

If the measure is approved, it could come into effect as early as December this year.

E-cigarettes have proved to be highly popular in South Korea, with imports of e-liquids rising from 12 tons in 2015 to 61 tons in the first eight months of 2017.

Some industry experts noted that over the last few years, the government has e...

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HMRC Chasing Down Big Tax Cheats

October 26, 2017 Taxation in UK

Tax on big businessLONDON – The HMRC may be upping their game when it comes to chasing down big businesses who stash their profits overseas.

New data obtained by the UK law firm Pinsent Masons has shown the extent of tax avoidance in the country.

The new information has suggested that over the course of the year to March 2017, large businesses in the UK avoided as much as GBP 5.8 billion by transferring profits to low tax jurisdictions.

The amount avoided is rising, having grown by GBP 2 billion compared to the level seen 12 months ago.

The amount of tax avoided is likely to be even higher, as the amount quoted is only for the 2 000 largest businesses in the country.

The experts at Pinsent Mason suggested that the increase could be caused by increased aggressiveness by the tax authorities or concentrated s...

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Germany Should Abolish Air Taxes

October 24, 2017 Taxation in Germany

German air passenger dutyBERLIN – Germany will see an overall economic benefit to the country if it drops its taxes on air passengers.

The results of a study completed by PWC and released on October 23rd suggests that dropping Air Passenger Duty in Germany would result in a boost to the number of travellers coming to the country, and a subsequent increase in tax revenues.

Removing all APD would lead to a total of 24.6 million passengers arriving in Germany by 2020, with more than half coming for tourism.

The increase in tourist and traveller numbers would lead to an economic boost of as much as EUR 67 billion over the next 12 years.

The boost and the increase in tax collections would exceed the EUR 1 billion annual loss which would arise by dropping the tax.

The air passenger duty in Germany is levied at a rat...

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Slashing Taxes Improves States’ Business Environments

October 19, 2017 Taxation in USA

US state taxesWASHINGTON D.C. – Dropping taxes or keeping rates low is the key to having the best business environment in the USA, say researchers.

On October 17th the US think tank, the Tax Foundation, released its annual State Business Tax Climate Index.

The Index is designed to show how each state compares in terms of the taxes applied to businesses, their incomes, to property ownership, or employee salaries.

The top 10 states were Wyoming, South Dakota, Alaska, Florida, Nevada, Montana, New Hampshire, Utah, Indiana, and Oregon.

The lowest 10 states were Rhode Island, Louisiana, Maryland, Connecticut, Ohio, Minnesota, Vermont, California, New York, and New Jersey.

Researchers at the Tax Foundation noted that a common element among the top-ranked states was the absence of a major tax, such as corpor...

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Canada Cuts Business Tax

October 18, 2017 Taxation in Canada

Small business in CanadaOTTAWA – Small businesses in Canada will see their tax bill slashed significantly in the years to come, as the government sets out to let them “keep more of their hard-earned money”.

The government of Canada has announced that it will be dropping the rate of income tax to be paid by small businesses, making the rate the lowest in the G7.

From January 1st 2018 the rate of income tax paid by small businesses will drop to 10.5 percent.

Further, one year later the rate will be dropped to an even lower 9.5 percent.

It is expected that the two measures together will result in tax savings of as much as CAD 2.9 billion for small businesses over the 2022 year.

When combined with the provincial taxes which will also be paid by small businesses, the tax rate will average out to a level of 12...

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