Category Taxation in South America

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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Paraguayan Farmers Protesting New Export Tax

June 22, 2017 Taxation in Paraguay

export tax on soyASUNCION – Farmers in Paraguay are fearing that a new tax could spell the end of corn and wheat exports in the country, while also crippling the vital soy production sector.

Farmers in Paraguay gathered on June 21st to protest a proposed tax measure which, they claim, could shrink the level of exports of agricultural products from the country.

The new tax would be levied at a rate of 15 percent on the export of soy, corn, and wheat products leaving the country.

It is expected that the government could vote on the tax this week, as early as June 22nd.

Supporters of the tax claim that the agricultural sector enjoys an overly beneficial tax environment, and could pay more in order to raise revenue and help fund development projects.

It is estimated that the agricultural industry saw exports...

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Taxes on E-Books Dropped in Brazil

March 14, 2017 Taxation in Brazil

tax on ebooksBRASILIA – Digital books and e-book readers in Brasil will soon be cheaper, as they have just received the same protection from taxation as physical books.

A new ruling by the Supreme Court of Brazil has enshrined the idea that digital books should enjoy the same tax treatment as their physical counterparts.

In September 2016 a debate began regarding the taxation of e-books, with some parties claiming that the digital products should not face taxation, while opponents claimed that the rules should be restricted to physical books only.

The tax breaks on books stems from legislation in Brazil which protects books from taxation as a matter of freedom of speech.

The Supreme Court has now ruled that the digital versions of books are practically indistinguishable from their physical versions, ...

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Mexico’s Soda Tax Cuts Consumption

March 5, 2017 Taxation in Mexico

Soda Tax in mexicoMEXICO CITY – Mexico’s tax on sugary beverages has slackened the country’s thirst for added sugar, and has decreased soda consumption for the second year in a row.

New research conducted by Shu Wen Ng, health economist and a professor at the University of North Carolina in Chapel Hill, has indicated that the recent tax on the sale of sugary beverages in Mexico has significantly cut down the consumption of such drinks.

It is estimated that in 2015 the sale of sugary drinks fell by 9.7 percent, compared to the level that the sales would have been had the tax not been enacted.

In the prior year, the consumption fell by 5.5 percent, bringing the average to the 7.6 per year over the course of the tax so far.

The tax did not have an equal effect on consumers from various socio-economic groups,...

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Tax Revenues Rise 24.4% in Argentina

November 2, 2016 Taxation in Argentina

Tax revenues in ArgentinaBUENOS AIRES – Argentina’s inflation has continued to see double-digit jumps in tax collections, although the improvement may be attributed the country’s sky-high inflation levels.

New information released by the tax authority of Argentina Administración Federal de Ingresos Publicos (AFIP) shows that over the 12 months ending October 2016, the level of tax revenues collected rose by 24.4 percent compared to the same timeframe in 2015.

Over the 12 months tax authorities collected a total of ARS 167.196 billion, compared to the last year’s 12 month total of ARS 134.417 billion.

The significant rise in tax collections is not the highest seen over the course of the year, as total tax collections for the 12 months ending September 2016 were 30 percent higher than in the previous year.

It i...

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