ASB Could Settle in IRD’s Tax Hunt

October 19, 2009 Taxation in New Zealand  No comments

New Zealand’s ASB bank has given indicators that it may settle with the Inland Revenue Department (IRD) in their structured financing tax evasion case against the bank.

Warwick Bryan, Investor Relations Analyst for the Commonwealth Bank of Australia (CBA), made indications that ASB Bank might opt for an out of court settlement with the IRD, who is pursuing the bank for allegedly evaded tax liabilities.

While commenting on Westpac Bank’s loss of a similar case against the IRD, Warrick Bryan said that there had not been a court hearing date set for ASB. Further, he claimed that the bank might not receive a date in the current fiscal year, and went on to say “But then it may never go to court and it may be settled in some way”.

At the same conference, it was revealed that ASB expects its to...

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EU and South Korea Initial FTA

October 17, 2009 International Tax CooperationTaxation in EUTaxation in South Korea  No comments

The European Union (EU) and South Korea have initialed a Free Trade Agreement (FTA).

After a series of negotiations and two legal review meetings in July and September, the FTA between South Korea and the EU came to be initialed on the 15th of October. The FTA document was signed by Catherine Ashton, EU Trade Commissioner, and Kim Jong-hoon, South Korean Trade Minister, in a ceremony in Brussels.

The Free Trade Agreement is heralded as one of the most important agreements of its kind to be signed by the EU. Virtually all tariffs charged on the approximate €65 billion worth of trade between EU and South Korea will be eliminated within seven years of the official signing of the document. Estimates have placed the value of the agreement at €19 billion.

Remarking on the signing of the trea...

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7,500 American Offshore Accounts Admitted To

October 15, 2009 Offshore BankingOffshore TaxationTax HavensTaxation in USA  No comments

According to the US Internal Revenue Service (IRS), 7,500 offshore account holders have revealed their details in exchange for leniency on their subsequent judgment.

In an effort to curb tax evasion and retrieve tax liabilities avoided through offshore accounts, the IRS is offering a tax amnesty program which sees lower penalties and prosecution avoidance for those harboring money overseas. The program which requires submissions to be made by 5pm on October 15th, has now received over 7,500 applications. According to IRS statements, admittances of offshore accounts have ranged from US$10,000 to over US$100 million in value...

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Debt an Issue for German Tax Cuts

October 14, 2009 Taxation in Germany  No comments

The newly elected German coalition featuring the Free Democratic Party (FDP) has refused to fund tax cuts for the nation with further debt increases.

Germany’s 27th of September election saw creation of a Christian Democratic Union (CDP), Christian Social Union (CSU) and FDP coalition. While campaign promises of all parties have maintained that tax cuts would be a priority for the coalition, contentions arisen as to the matter of their funding.

The newly formed coalition will undergo a final round of negotiations regarding the party’s vastly different tax cut promises, throughout the weekend beginning on the 17th of October. CDP has campaigned for tax breaks equivalent to approximately €15 billion, with no specific mention of timing or fund sourcing...

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South Korea Expects to Increase Tax Take

October 13, 2009 Taxation in South Korea  No comments

The South Korean Government expects its tax collection to grow by 9.2% annually, between 2011 and 2013.

According to the report submitted by the Finance Ministry to the National Assembly of Korea, the nation will see an annual increase of approximately 9.2% in its tax collection and a 5% rise in GDP, annually between the years of 2011 and 2013. Government figures place the expected income at approximately KRW187 trillion for 2011, KRW 204 trillion in 2012 and KRW223 trillion in 2013. Plans for the increase were outlined in the submitted report, which stated “We plan to go aggressive in securing our tax sources, such as cutting tax exemption or tax reduction cases and strengthening transparency in tax collection”.

Concerns have been raised about rising difference between tax collection grow...

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