Category Taxation in South America

Mossack Fonseca Closing Down

March 15, 2018 Taxation in Panama

Mossack FonsecaPANAMA CITY – The scandal behind the Panama Papers has now brought down the firm at the centre of the controversy.

On March 14th the infamous law firm at the centre of the Panama Papers scandal, Mossack Fonseca, announced that they are ceasing their operations.

The Panama Papers scandal revolved around a large collection of documents which were stolen and leaked to media and investigative journalists, which detailed the clients of the firm, and how they used offshore structures to hide their wealth and assets.

In a statement, the firm said: “The reputational deterioration, the media campaign, the financial circus and the unusual actions by certain Panamanian authorities, have occasioned an irreversible damage that necessitates the obligatory ceasing of public operations at the end of the...

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Argentina’s Gambling Tax An Utter Flop

February 2, 2018 Taxation in Argentina

gambling taxBUENOS AIRES – Argentina’s online gambling tax has seen a spectacular failure, having brought in a total of ARS 0 during the course of 2017.

Argentina’s online gambling tax not only failed to bring in the revenues expected by the government, but also failed to raise any money at all in 2017, according to new information released in the local press.

From January 1st 2017 all online gambling activity of taxpayers in Argentina was subject to a federal tax of 2 percent.

The tax was meant to be collected by credit card issuers when a deposit was detected into the account of a gambling website, regardless of whether the operator was based in Argentina or not.

However, the tax has so far failed to raise any tax revenues as all payments into the gambling websites moved away from credit card pa...

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Cuba’s FDI Reaches $2 Billion

November 6, 2017 Taxation in Cuba

Cuban foreign investmentHAVANA – Cuba’s tax breaks may have proven effective at attracting new investment into the country.

Last week the government of Cuba announced that it has so far attracted more than USD 2 billion worth of foreign investment into the country.

Cuba needs approximately USD 2 billion in investment per year in order to keep its economy afloat.

The new investments are spread out over the 30 agreements signed so far this year.

Additionally, a further 80 deals are under negotiation, with 15 being nearly complete and potentially being ready to sign this year.

Out of the 30 deals, 11 are for businesses with 100 percent foreign ownership, and 14 are for administrative and production agreements.

It is widely believed that the new businesses are mainly involved in the tourism and energy industries.

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Cuba to Doll Out Farm Land And Tax It

September 29, 2017 Taxation in Cuba

Cuba taxing farmsHAVANA – Cuba hopes to wean itself off its reliance on foreign nations for food and money by granting more land to farmers, and then taxing them on it.

Last week the government of Cuba unveiled a series of new rules regarding land ownership and the gradual implementation of taxes on land ownership.

The new rules are aimed at simultaneously boosting the country’s ability to grow its own foods, while also increasing tax revenues.
Currently, the government doles out idle land to private citizens or entities, if the land will be used for food production.

Under the new rules, the land given to farmers will now be granted for a period of 20 years, instead of the previous period of 10 years, and, further, the lease on the land will be renewable upon expiry.

The amount of land granted for agri...

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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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