European Nations Leading in Top Tax Rates

October 6, 2010 International Tax CooperationTaxation in UK

Lost...Countries within the European Union are leading the world in levying high top personal income tax rates, with a regional average of 37.2 percent.

Governments across the European Union (EU) are reevaluating their tax policies in the wake of the global financial crisis and the ensuing rise in budget deficits, with the UK making the most significant upward tax rate revision. According to 2010 Individual Income Tax and Social Security Rate Survey, a report released by the international accounting firm KPMG, the UK now has the 4th highest top personal income tax rate in the EU, at a level of 50 percent. The rate is only beaten by Sweden, Denmark, and the Netherlands, at 56.6 percent, 55.4 percent and 52 percent respectively.

The report shows that governments of the EU have predominantly opted t...

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Irish Tax Receipts Still Down

October 5, 2010 Taxation in Ireland

Brian Lenihan (Irish minister of finance)Tax receipts for the Government of Ireland are down 6.5 percent for the first nine months of the year, although the Minister of Finance claims that there are emerging signs of stabilization in the tax national economy.

On October 4th the Irish Department of Finance released the latest Exchequer Statement, showing that EUR 22.2 billion of tax revenue was collected by the Government between January 1st and September 30th. The revenue figure is EUR 1.5 billion below the same period in 2009, and only 0.02 percent below the Government’s previous estimates. Brian Lenihan, Minister for Finance, claimed that although revenues had fallen, there are signs of economic recovery and the revenue gap between 2009 and 2010 will narrow further by the end of the year.

According to the statement, customs d...

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Taxes Spurn UK Business Migration

October 4, 2010 Taxation in SwitzerlandTaxation in UK

Day 62UK based high earning individuals are reportedly leaving the country in droves in response to recently implemented tax rules, but international companies are returning their headquarters to London.

The UK’s HM Revenue and Customs (HMRC) is set to lose an approximate GBP 500 million annually in tax revenues, after numerous high-income earners left the country to escape their high personal tax rates. According to new research published by the consultancy firm Kinetic Partners, nearly one quarter of the UK’s hedge fund managers have moved already. Perceived tax legislation unpredictability is generally regarded as the primary drivers behind the exodus.

According to the research, the UK Government’s introduction of a 50 percent top personal tax rate was the catalyst for the mass departures...

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Canada Cracking Down on Swiss Accounts

October 1, 2010 International Tax CooperationOffshore BankingTaxation in Canada

The Plaque of the Hong Kong and Shanghai BankCanadian and French tax authorities are cooperating in an investigation into potentially undeclared offshore accounts held by Canadians in the Swiss division of the HSBC bank.

On September 30th Keith Ashfield, Canadian Minister of National Revenue, revealed that the Canada Revenue Agency (CRA) has received extensive information regarding national taxpayers with offshore accounts held with the Swiss division of the Hong Kong and Shanghai Banking Corporation (HSBC). This data contains details regarding approximately 1 800 accounts linked to Canadian taxpayers. The CRA has already launched audits into the largest accounts, to determine whether the holder has fully complied with national tax law...

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IMF Urges Mining Tax Expansion

September 30, 2010 Taxation in Australia

on the inside the rigs still pileThe International Monetary Fund has praised Australia for its plans to implement a tax on the extraction of national mineral resources, however it has also stated that the levy needs to be broadened across the mining and resource industry.

On September 30th an early draft of an International Monetary Fund (IMF) report on the Australian economy was made available. The publication showed that the IMF was generally pleased with the Australian Government’s current economic and fiscal direction, however it did raise some concerns about the current implementation of tax measures for the mining sector.

The IMF report stated that the new Minerals Resource Rent Tax (MRRT) system was only a “…step in the right direction...

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