NZ Retirement Savings Overtaxed, Claims Expert

October 11, 2017 Taxation in New Zealand

Kiwisaver taxationWELLINGTON – Property investors in New Zealand are seeing tax liabilities which are only a fraction of those paid by people saving for their retirement.

In a statement issued on October 10th, Peter Neilson, the former chief executive of the Financial Services Council of New Zealand, called for a rethink of the taxation of the country’s retirement savings system, KiwiSaver.

KiwiSaver is a nationwide retirement savings system, whereby a percentage of an employee’s pay is deducted from their wages and invested into a managed fund.

Over the previous financial year, approximately NZD 25.4 million was invested in the default funds assigned to taxpayers upon entry into KiwiSaver, and a further NZD 140.8 million was deposited into funds which were specifically chosen by the saver.

Currently,...

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France Replaces Wealth Tax with Luxury Tax

October 9, 2017 Taxation in Japan

Tax on luxury yachtsPARIS – France will soon tax luxury goods and vehicles, as taxing them will not be detrimental to the economy.

Over the weekend the ruling political party of France indicated that in the near future it will propose the implementation of a tax on non-productive luxury items, such as gold, luxury yachts, and supercars.

The leading party campaigned on a promise of removing the long-standing wealth tax, which is levied on all French taxpayers with assets exceeding EUR 1.3 million in value.

The party leader, Emmanuel Macron, has come to be criticised as a “president of the rich”.

The party has now said that while the wealth tax will be dropped, it will be replaced with the tax on luxury items.

It is expected that the new tax will result in greater levels of tax revenues for the governme...

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German Tax Court Dictates a Good Breakfast

October 5, 2017 Taxation in Germany

Taxes on breakfastBERLIN – A tax court in Germany has dictated what constitutes a breakfast, saying that bread without toppings does not make the cut.

The tax court of Muenster in Germany have recently ruled that bread and coffee do not count as breakfast, at least for the purposes of calculating tax obligations.

The question of the definition of breakfast arose due to a tax dispute with a local company over food given away on the business premises.

The company, a tech firm, would routinely provide free coffee and bread rolls to employees and customers.

The tax authorities claimed that the food constituted breakfast, and therefore should be treated as a complimentary meal, and taxed as such.

However, the tax court ruled that in order for the foods to be regarded as a breakfast, the bread would need to hav...

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Ireland Chasing Down Deficit Gap

October 4, 2017 Taxation in EU

Tax revenue in IrelandDUBLIN – Ireland’s tax collection level is below the mark set by the government, but it seems that the chances of closing the gap are realistic.

On October 3rd the Minister of Finance of Ireland stated that the tax shortfall seen so far through this year has narrowed, and that the deficit could even be eliminated by the end of the year.

The tax revenues collected by the Ministry of Finance have been above target for several years, however, this year has proven to be an exception, with a drop in collections.

In April this year, the deficit was at approximate 2.4 percent below the government’s own target.

The gap had dropped to 0.8 percent by July, and an even lower 0.7 percent by August.

The deficit has now dropped to a level of 0.6 percent.

It is now believed that the gap could be c...

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Ghana Needs Drain Tax

October 3, 2017 Taxation in Ghana

The Drain (i)ACCRA – Ghana needs to tax property owners in order to fund anti-flooding measures.

The World Bank is recommending that the government of Ghana begins levying a new tax to help pay for the construction of drainage and anti-flood measures in the country.

The suggestion for a so-called drainage tax came after a tour of selected flood-prone areas by a working group at the bank.

It was suggested that a drainage tax be set up to be directly property owners, hotels, and individuals who live in flood-prone lowland areas.

In addition to funding flood-water drainage infrastructure, the funds raised by the tax could also be used to build and maintain wastewater disposal facilities in cities.

Flooding is a significant problem in Ghana, with recent floods in 2015 killing hundreds of people.

The gov...

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