UK Conservative Party Promising Tax Cuts

October 6, 2009 Taxation in UK  No comments

The UK Conservative Party has announced a proposal under which taxes would be cut for firms creating new jobs. Hints have also been given regarding the cut of UK’s 50% top personal tax bracket.

George Osborne, UK Conservative Party member and Shadow Chancellor of the Exchequer, stated on the 5th of October that under a Conservative Party government, employers would not be required to pay National Insurance contributions for two years. Cutting the levy, which amounts to 12.8% of an employee’s salary, is estimated to ultimately cost the Government £250 million. Funding for this move would come from budget cuts in other areas, although exact details will be provided at the Conservative Party Conference, October 8th.

The tax exemption is applicable only to newly created businesses, and on...

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UK Scrapping International Issuance Tax

October 5, 2009 Taxation in UK  No comments

Following a European Court of Justice (ECG) ruling, the UK Government has ceased levying 1.5% on all shares issued or transferred to a clearance service by British companies, internationally.

The 1st of October saw the ECG rule against the HM Revenue & Customs (HMRC), saying that the 1.5% Stamp Duty Reserve Tax (SDRT) is against European Community Law. The tax was levied on British companies which issued or transferred securities through a clearance service within the EU or the US. Typically such a situation would arise in merger or takeover situations. Estimates have placed the annual income figure from the SDRT to the British Government at over £10 million, though the HMRC have refused to confirm such figures.

The ECG ruling came as part of court action taken up by British-based HSBC, w...

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Tax Whistblowing on the Rise in US

October 2, 2009 Taxation in USA  No comments

Figures released by the Internal Revenue Service (IRS) show a significant increase in the number of American citizens providing information on underpaid taxes of other’s.

The IRS Whisltleblower Office, in its Annual Report to Congress, released October 1st, has stated that 1,246 individual cases have been brought forward throughout the 2008 fiscal year with information regarding tax evaders and individuals committing significant levels of tax fraud. Of the 1,246 cases brought forward, 994 made specific allegations regarding the amount of tax evaded, within these, 228 concern tax underpayments exceeding US$10 million, and 64 cases involve tax liabilities of over US$100 million.

The IRS has had provisions for whistleblowing since 1867...

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India Expanding Gift Tax

October 1, 2009 Taxation in India  No comments

India’s Government is expanding its gift taxation laws to include a larger lists of items, not just cash.

According to India’s Central Board of Direct Taxes (CBDT), from the 1st of October, new tax rules will take effect mandating that any and all gifts received, valued at over Rs. 50,000, will be required to be declared and taxed by the receiver. Since the 1st of April 2006, cash gifts of Rs. 50,000 were subject to a tax liability, but the regulation has now been expanded to include land and buildings, shares and securities, jewellery, drawings, paintings, archaeological collections and other works of art . The value of the gift must be disclosed in the 2010-11 tax assessment year and the following years...

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Tax Overhaul for California

September 30, 2009 Taxation in USA  No comments

The taxation landscape of the US state of California could face unprecedented changes in the near future, seeing the removal of traditional forms of sales and corporate taxation.

Arnold Schwarzenegger, Governor of California, has called for a special Legislature sessions to approve the transformation of California’s taxation system. The changes which he seeks to be approved are detailed in a report published on the 29th of September by the Commission on the 21st Century Economy, a fourteen member group appointed by California’s Democratic leaders to report on improvements to the tax system.

If approved, California’s tax system will see the removal of its traditional sales tax of 5% and corporate taxes of 8.84%. Personal taxation will lose its six tax rates and be replaced with two...

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