Category Taxation in North America

Tax Overhaul for California

September 30, 2009 Taxation in USA  No comments

The taxation landscape of the US state of California could face unprecedented changes in the near future, seeing the removal of traditional forms of sales and corporate taxation.

Arnold Schwarzenegger, Governor of California, has called for a special Legislature sessions to approve the transformation of California’s taxation system. The changes which he seeks to be approved are detailed in a report published on the 29th of September by the Commission on the 21st Century Economy, a fourteen member group appointed by California’s Democratic leaders to report on improvements to the tax system.

If approved, California’s tax system will see the removal of its traditional sales tax of 5% and corporate taxes of 8.84%. Personal taxation will lose its six tax rates and be replaced with two...

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New Jersey and New York Worst for Tax

September 29, 2009 Taxation in USA  No comments

The states of New York and New Jersey are the worst in the US for doing business, due to their taxation policies.

According to a study published by the Washington D.C. based Tax Foundation, New York and New Jersey are the worst in the country for doing business, as ranked by the State Business Tax Climate Index. New Jersey was ranked last amongst the 50 states, with New York following at 49th. The study aims to create an index to compare state tax policy by analysis of a state’s corporate, personal, sales, property unemployment insurance tax burdens.

The fall in rankings for the two states came during the country’s financial downturn, when state tax deficits forced a rise in personal taxation levels. According to Kail Padgitt, lead economist on the study, the top personal tax rate of 8...

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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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Tax Information Exchange Agreement Update

September 10, 2009 International Tax CooperationOffshore BankingTax HavensTaxation in AustraliaTaxation in British Virgin IslandsTaxation in CanadaTaxation in Cayman IslandsTaxation in EUTaxation in FranceTaxation in GermanyTaxation in IrelandTaxation in LiechtensteinTaxation in MonacoTaxation in New ZealandTaxation in Turks & Caicos IslandsTaxation in UKTaxation in USA  No comments

Since the April G20 summit, over 50 new TIEA agreements have been signed across the globe.

The London G20 Summit, held on the 2nd of April this year, heralded an unprecedented wave of Tax Information Exchange Agreement (TIEA). In what was described as “revolutionary” by Angel Gurría, OECD Secretary-General, the number of completed TIEAs has almost doubled since their inception in late 2000.
Since the G20 summit, and subsequent global push for greater tax transparency and compliance, the following 53 agreements have been signed.

United States – Monaco (8 September 2009)
Denmark – Turks & Caicos Islands (7 September 2009)
Netherlands – Antigua & Barbuda (2 September 2009)
Denmark – Gibraltar (2 September 2009)
Denmark – Anguilla (2 September 2009)
Germany – Liechtenstein (2 September ...

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Monaco and US Sign Tax Agreement

September 9, 2009 International Tax CooperationOffshore BankingTaxation in MonacoTaxation in USA  No comments

Monaco and the US signed a bilateral Tax Information Exchange Agreement on the 8th of September.

The Taxation Information Exchange Agreement (TIEA) between the city-state of Monaco and the US will allow each jurisdiction a greater set of capabilities in fighting cross border tax evasion. The agreement will allow either nation to request bank, tax and other information from the other jurisdiction on the grounds that there have already been reasonable attempts made to obtain it by other means. The agreement also extends to allow officials from one country to enter the other for the purpose of conducting necessary interviews. Although, these capabilities are restricted to a case by case basis and have absolutely no scope “information fishing”...

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