India Releases Good and Service Tax Proposal

November 11, 2009 Taxation in India  No comments

The outlines of India’s Good and Service Tax (GST) plans are starting to emerge, with the first discussion paper on the idea being released on November 11th.

The initial details concerning the structure of India’s upcoming GST implementation have been released by the Empowered Group of State Finance Minister. Though the paper is not a complete account of every aspect of the new GST system, it is the first comprehensive discussion to both its format and implementation.

The group has stated that the new GST system will have two components: Central GST and State GST, both of which will be levied concurrently. Further, there will be two rates set for the GST: a lower rate for items that are deemed necessary, and a standard rate for those that are considered to be general goods...

Read More

UK and Australia Seeking UBS Data

November 10, 2009 International Tax CooperationOffshore BankingTaxation in AustraliaTaxation in SwitzerlandTaxation in UK  No comments

Swiss bank UBS has confirmed that the governments of the UK and Australia, amongst others, are seeking information about possible tax evasion from their own nationals.

According to the notes within the UBS third quarter report, following the settlement of its case with the US Department of Justice and Internal Revenue Services, UBS began to receive request from other jurisdictions for similar information. The UBS report said that “In particular, the revenue services of the UK and Australia have served upon UBS and other Swiss and non-Swiss financial institutions providing cross-border wealth management services requests for information relating to such services that is located in the respective jurisdictions”...

Read More

Tobin Tax Splits G20 Summit

November 9, 2009 International Tax CooperationTaxation in CanadaTaxation in EUTaxation in FranceTaxation in GermanyTaxation in UKTaxation in USA  No comments

Gordon Brown, UK Prime Minister, brought forward a suggestion at the G20 summit, to instate a global foreign currency transaction tax on banks (commonly referred to as a Tobin Tax). The idea created an almost immediate split of opinion within the G20.

At the G20 Summit on November 7th, in St. Andrews, Scotland, the UK Prime Minister suggested banks be levied with a tax on their financial transactions. Gordon Brown made it clear that he wishes to see the burden of bank bailouts shifted from the tax payers to the institutions themselves and that this tax was one form of doing that...

Read More

US Extends Homebuyer Tax Credit

November 6, 2009 Taxation in USA  No comments

The US House of Representatives voted to extend the deadline of the country’s first-time homebuyer tax credit, expanding it to also include those who already own homes.

The US Senate, on November 4th, approved through a 98-0 vote, the bill extending the country’s first-time homebuyer tax credit. The US House of Representatives passed the bill in a 403-12 vote on November 5th. President Barack Obama is required to sign off on the scheme before it is enacted, this is expected to take place on November 7th.

Under the scheme, those who are buying their first home, or have not owned a home for the last three years, can receive up to US$8,000 in the form of a tax credit. The credit amount is pegged at 10% of the home’s purchase price, up to $800,000...

Read More

Swiss Suspend Tax Talks with Italy

November 5, 2009 International Tax CooperationOffshore BankingTaxation in ItalyTaxation in Switzerland  No comments

The Swiss Government has put a halt on Double Taxation Agreement (DTA) procedures with Italy.

Following Italy’s raid on Swiss banks located in Italy, the Swiss government announced on November 1st that it has suspended its negotiations regarding their DTA with Italy. In retaliation, Giulio Tremonti, Italy’s Finance Minister, threatened to “dry out” Lugano, Switzerland’s most prominent financial center after Zurich and Geneva.

Hans-Rudolf Merz, Swiss President and Finance Minister, said “The accord was ready for ratification from our side. But now the negotiations are being suspended until further notice”. Though no direct confirmation has been given, negotiations are not expected to be reinstated until the commencement of Italy’s current tax amnesty.

Further, Hans-Rudolf Merz, descri...

Read More