IRS Holding $1.3 Billion in Refund

March 3, 2010 Taxation in USA

Form 1098In a statement released on March 2nd, the US Internal Revenues Services (IRS) is reminding US taxpayers that it holds USD 1.3 billion in unclaimed tax refunds for nearly 1.4 million individuals who did not file 2006 tax returns.

At the same time, the IRS has stated that in order to receive any refunds, the taxpayer is required to submit a paper return (as electronic returns are not available for previous years) by April 15th 2010. The US Government grants a three year window for tax refund claims, upon the expiry of which any unclaimed funds will become property of the US Treasury. According to the IRS, the median refund is calculated to be approximately USD 604...

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Isle of Man Begins Tax Reform Consultation

March 2, 2010 International Tax CooperationOffshore BankingOffshore TaxationTax HavensTaxation in EUTaxation in Isle of ManTaxation in UK

National Transport Leyland Atlantean PDR1 C57 MAN (86) Douglas, Isle of Man.The Government of Isle of Man, a self-governing British Crown dependency, has begun public consultation on the potential tax changes which could be implemented on the island nation.

As reported earlier, at the Budget reading held on February 16th, Allan Bell, Isle of Man Treasury Minister, stated that the jurisdiction would hold an investigation into possible changes to its current tax regime in order to address issues raised by previous discussions held with the EU and its member states, particularly the UK. The scope of the consultation includes ascertaining the nature of changes which could be implemented for the jurisdiction, and the optimality of the proposed options.

Throughout the consultation the Government is seeking options which will fulfill conditions of the current EU Codes of...

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Ratings Required for NZ Non-Bank Institutions

March 1, 2010 Taxation in New Zealand

The Seat of GovernmentThe New Zealand Government has announced that from March 1st 2010 credit ratings will be mandatory for non-bank deposit-takers (NBDT) operating within the country.

In a press conference held on March 1st Alan Bollard, New Zealand Reserve Bank Governor, said that the Reserve Bank intends to progressively introduce prudential measures to insure the resilience of New Zealand’s non-banking finance sector, and mandatory credit ratings for deposit-taking institution are an invaluable step in towards the goal.

By the new regulation, the largest finance companies, building societies and credit unions, are required to receive a credit rating by Fitch Ratings, Moody’s Investors Service, or Standard & Poor’s Ratings Services. Organizations with consolidated liabilities below NZD 20 million (approx...

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Brazil Reports Significant Budget Improvement

February 26, 2010 Taxation in Brazil

To the groupThe Central Bank of Brazil has reported that the national budget surplus rose to BRL16.19 billion (approx. USD 8.8 billion) in January, a marked improvement over the previous month, and over the same period in 2009.

Signaling an economic recovery for the country, the Brazilian Government has announced that it has experienced the second highest budget surplus ever recorded in the month of January for the country. The surplus, which included revenues from the federal government, local governments and state enterprises, had increased to BRL16.19 billion (approx. USD 8.8 billion), compared to BRL7.36 billion (approx. USD 4.05 billion) indicated in January 2009, and compare to BRL276 million (approx. USD152 million) in December 2009...

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European Commission Refers Greece to Court

February 25, 2010 Taxation in EUTaxation in Greece

European flags flying in front of the BerlaymontGreece has been referred to the Court of Justice of the European Union, after the European Commission (EC) deemed a series of tax exemptions issued by the jurisdiction to be illegal.

On February 24th the EC released a statement referring Greece to the EU Court of Justice for breaking clauses within the Treaty on the Functioning of the European Union (TFEU). The EC claims that Greece broke EU legislations when it failed to comply with a decision passed by the Commission in July 2007, which ordered Greece to recover funds issued to businesses under the national tax exemptions.

The provision within the Greek national tax legislation, which was examined by the EC, allowed for businesses to deduct 35 percent from their taxable income, on the condition that the benefits would be used to fund n...

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