Canada and UK Shut Down Carousel Scheme

June 15, 2017 Taxation in Canada

Carousel CanadaONTARIO – Tax investigators hope they have put an end to a CAD 50 million carousel scheme reaching from the UK to Canada.

The tax authorities of Canada and the UK have revealed that this week they carried out simultaneous raids on addresses associated with large-scale tax fraud across the two countries.

Accusations of fraud revolve around an alleged CAD 52 million in false tax refunds obtained by a group of 11 people based in the UK.

The fraud is understood to be a “carousel scheme”, which has become common in the EU and UK, but is still relatively rare.

The scheme involves a series of businesses, which purchase goods from each other, with some businesses in the chain claiming refunds on the GST paid on goods, without ever paying any GST themselves.

Often the goods are passed continual...

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Taxes Could Fix Inequality in Hong Kong

June 12, 2017 Taxation in Hong Kong

Hong KongHONG KONG – The who may be the next Welfare Minister of Hong Kong is calling for taxes to fund anti-inequality measures in the city.

Hong Kong should considering levying a capital gains tax or amending the rates charged on personal incomes, according to a statement made by Law Chi-kwong, a prominent academic in Hong Kong.

While giving a televised interview over the weekend, Law Chi-kwong, who is expected to be appointed the next Welfare Minister of Hong Kong, said that income inequality in Hong Kong is rising.

The creeping inequality is most apparent among the elderly, many of whom are on the verge of poverty.

The academic suggested that a capital gains tax could be used to reduce the level of income inequality in the country.

He added that the standard 15 percent rate of tax on income co...

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Saudi Arabia Launches Cigarette Tax

June 12, 2017 Taxation in Saudi Arabia

Smoking in Saudi ArabiaRIYADH – Smoking in Saudi Arabia is about to double in price, as the government begins taxing harmful activities.

On June 11th the sale of cigarettes in Saudi Arabia became taxable, resulting in a significant hike to the price of tobacco sold in the kingdom.

The tax on tobacco is set at a rate of 100 percent, and is expected to be passed on entirely to the consumer.

Similarly, a new tax was also enacted on the sale of energy drinks, with a rate set at 100 percent.

Soft drinks have also now fallen into the tax net, however, the rate on such drinks is only 50 percent.

The average price of a pack of cigarettes in Saudi Arabia has now risen to between SAR 18 and SAR 24.

The new tax is intended to raise extra revenues for the government, which has been suffering in the wake of falling oil pri...

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Tourism Tax Coming to Malaysia

June 9, 2017 Taxation in Malaysia

Kuala Lumpur.KULA LAMPUR – Within a month tourist coming to Malaysia will be forced to pay an extra tax for their accommodation.

Malaysia will implement a tax on tourist accommodation on July 1st, according to a statement made on June 8th by the Minister of Tourism and Culture of Malaysia Mohamed Nazri Abdul Aziz.

The tax was previously expected to be enacted on August 1st, and details to that effect were made public on the Royal Malaysian Customs Department’s website.

However, the references to August 1st have now been taken down.

The tax will be levied at rates between MYR2.5 per room per night for small unrated hotels, and to a maximum rate of MYR 20 per room per night for 5-star hotels.

The tax is expected to bring in approximately MYR654...

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Germany Forced to Drop Nuclear Tax

June 8, 2017 Taxation in Germany

Nuclear Power Plant, GermanyBERLIN – Nuclear power generators in Germany are set to see a windfall of billions of euros, after a court ruled that a six year old tax on nuclear power was unconstitutional.

The Constitutional Court of Germany has ruled that the government’s tax on the use of nuclear fuel rods by energy producers is unconstitutional and void.

The ruling means that the billions of euros paid by the energy producers since 2010 will be refunded.

It has been estimated that the payout by the government could reach EUR 6 billion, even before interest is taken into account.

The German government has been taking repeated actions to diminish the use of nuclear power in the country, after vowing in 2011 that by 2022 Germany would no longer rely on nuclear-power generation.

The plan to close down the plants is ...

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