Emphasis on Indirect Taxes Set to Increase

May 5, 2010 International Tax CooperationTaxation in EU

The ManA new study has shown that Governments worldwide are increasingly reliant on revenues collected from indirect taxes. The trend is set to continue, with indications that authorities will soon begin to concentrate even more on Indirect Taxes for their simpler administration and stability.

International accounting KPMG recently published a white paper Driving Indirect Tax Performance Managing the Global Reform Challenge, analyzing trends in the international implementation of indirect taxes, like Goods and Service Tax (GST) and Value Added Tax (VAT). According to the study, Governments worldwide have been experiencing fluctuations and decreases in revenues from direct taxes...

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Tax Revenues Fall in Hong Kong

May 4, 2010 Taxation in Hong Kong

Honk-KongAt a recent press conference the Commissioner of Inland Revenue of Hong Kong revealed that tax revenues in the special administrative region of the People’s Republic of China fell by 6 percent during the 2009-2010 financial year.

On May 3rd Chu Yam-Yuen, Commissioner of Inland Revenue Department of Hong Kong, held a press conference publicizing the 2009-2010 financial year tax revenue results. In total, HKD 179.1 billion (approx. USD 23.07 billion) was collected, compared to HKD 190.53 billion (approx. 24.5 billion) in the 2008-09 financial year. Corporate tax revenues were reported to have fallen by 26 percent, to HKD 76.6 billion (approx. USD 9.7 billion). Conversely, personal tax revenues and property tax revenues rose by 6 percent and 79 percent respectively...

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Australian Tax Review Report Released

May 3, 2010 Taxation in Australia

Prime Minister of Australia, Kevin Rudd addresses the world's mediaThe long-awaited review of Australia’s tax system has been released, marking the initial steps in the Government’s promised overhaul of the nation’s tax system. According to Government statements, the tax reforms recommended in the review are refined to work in unison with the recovering international economy, while making the national tax system simpler, fairer and more beneficial to Australia.

On May 2nd the Australian Government released its Australia’s Future Tax System report, which has come to be commonly called the “Henry Review”. The release was accompanied by the Australian Government’s immediate initial assessment of the report’s recommendations...

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UK Needs Tax Rise for Financial Safety

April 30, 2010 Taxation in UK

Dirty MoneyA new report from a prominent UK think-tank has recommended increases to personal taxation, and full implementation of Value Added Tax (VAT), along with significant public spending cuts. The proposed changes are claimed to be necessary in order to decrease the Government deficit sooner.

On April 30th UK’s National Institute of Economic and Social Research (NIESR) released the quarterly Prospects for the UK Economy report, which valuates the current state of the UK economy. According to the report, the UK economy is in worse shape than commonly portrayed by politicians, and drastic changes will need to be made to rectify the situation...

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New Salary Laws for Switzerland

April 29, 2010 Taxation in Switzerland

Doris Leuthard - World Economic Forum Annual Meeting Davos 2008The Federal Council (FC) of Switzerland has instructed the Swiss Federal Department of Finance (FDF) to create three new pieces of legislation regarding salary schemes and compensation practices, targeting primarily inappropriate pay packages in financial institutions.

In a meeting held on April 28th the FC issued a directive to the FDF to create drafts for three new laws concerning the regulation and taxation of compensation issued in Switzerland. With the current international focus on financial sector salaries and bonuses, Switzerland has already begun making strides toward stricter compensation regulations. The current proposed legislation changes are aimed at supplementing current standards and binding them into law, while allowing for competitive remuneration and industry stability.

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