Category Taxation In Europe

Value Added Tax to Increase in Switzerland

September 28, 2009 Taxation in Switzerland  No comments

Swiss voters have approved an increase in the country’s Value Added Tax (VAT).

In a nation-wide referendum, held on the 27th of September, Swiss voters approved raising each of Switzerland’s three VAT rates. As of January 2011, the standard VAT rate in Switzerland will be 8%, compared to the current 7.6%. The VAT for lodging services will increase by 0.2% to 3.8%, and reduced rate items like food, newspapers and medicine will see a rate rise of 0.1% to a level of 2.5%.

The VAT increase, which won 54.5% voter approval, is expected to raise an approximate CHF1.1 billion annually, over the course of the next 7 years. The temporary tax increase is aimed at dealing with the CHF13 billion shortfall in Switzerland’s federal disability insurance regime...

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Sweden Cutting Income Tax

September 25, 2009 Taxation in Sweeden  No comments

The Swedish government has announced their plans to reduce the country’s income tax levels.

In an effort to bolster the ailing employment market, the Swedish Government has announced another round of income tax cuts. The tax cut will see a cut of SEK250 from the average worker’s monthly tax duty. It is intended that the lowered income tax levels will encourage Swedish citizens to return to the work force. Prior to the tax cuts, governmental estimates had placed unemployment in Sweden at 8.8% in 2009, reaching 11.4% in 2010.

The cut was announced by Fredrik Reinfeldt, Swedish Prime Minister, on 19th of September. It is scheduled to be presented to parliament on the 28th of September. If accepted, the income tax cuts will come into effect on the 1st January 2010...

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Broadband Tax Promised for UK

September 24, 2009 Taxation in UK  No comments

The British Government has promised to implement a £6 annual tax on every fixed telephone line in the country.

Stephen Timms, Financial Secretary to the Treasury, has stated that the British Government will instate a 50 pence monthly tax on landlines. The levy will be used to fund improvements and infrastructure upgrades of high-speed internet access across the country. The levy is expected to raise approximately £175 million per year.

The tax, which has been dubbed “the broadband tax”, is set to be introduced in November, through the upcoming Finance Bill. Government predictions foresee the tax coming into effect before the end of 2009. Stephen Timms justified the proposed levy at its announcement, saying “We want to make high speed networks nationally available...

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UK Promises to Further its Fight on Tax Evasion

September 22, 2009 International Tax CooperationOffshore BankingTax HavensTaxation in EUTaxation in UK  No comments

The United Kingdom looks set to increase efforts to combat tax evaders.

Speaking on the 21st of September in regards to the upcoming G20 summit in Pittsburg, Stephen Timms, UK Financial Secretary, has decried tax evasion as being morally wrong, he then proceeded to claim that further efforts will soon be made to “tilt the game back towards honest, hard-working taxpayers”.

It was announced on the same day that Alistair Darling, Chancellor of the Exchequer, will use his Pre-Budget Report to instate tougher penalties for tax avoiders, attempt to close loop-holes which make it easier to utilize offshore accounts in avoiding tax liability, strengthen means by which tax avoiders are sought and increase the amount of information available to HM Revenue and Customs.

Alistair Darling also promised...

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IRS Leniency Program to be Extended

September 21, 2009 Offshore BankingTaxation in EUTaxation in SwitzerlandTaxation in USA  No comments

The US Internal Revenue Service (IRS) will extend the deadline for those wishing to apply for the offshore account declaration leniency program.

Originally scheduled to end on the 23rd of September, the IRS’s leniency program promised to reduce penalties paid by those declaring their UBS accounts. Applications for the program have significantly increased following a settlement between the IRS and Swiss bank UBS, which saw the details of 4,450 American owned accounts promised to the IRS. According to IRS officials, over 3,000 applications for the leniency program have been received since the institution of the program. The IRS has stated that approximately 10,000 cases are expected to arise in regards to UBS, half of these will be through the voluntary disclosure program.

Typically, the ...

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