personal income tax tagged posts

New Tax in Pakistan to Adress Hidden Incomes

May 2, 2011 Taxation in Pakistan

Asset Tax in PakistanThe federal government of Pakistan is looking to address the issues of tax evasion and disproportionately low collection of tax revenues in the country by instating a new tax on assets in the next budget.

Over the weekend the representatives of the Economic Advisory Council (EAC) and the Revenue Advisory Council (RAC) of Pakistan held a joint meeting to plan the potential makeup for the government’s next financial budget. During the meeting it was decided that a new asset tax should be imposed in the country to help bring more high-income individuals into the national tax net. The rate for the new tax has not yet been finalized, with the Councils currently proposing a levy of 1.25 percent or 1.5 percent.

According to press communiqué released following the Councils’ meeting, the asset tax...

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Millions of Wealthy Individuals Not Registered for Tax in Pakistan

March 21, 2011 Taxation in Pakistan

M A JinnahNearly 700 000 people throughout Pakistan will be issued with notices today, ordering them to register for a national taxpayer number and fulfill their tax obligations.

While speaking at a conference organized by the Korangi Association of Traders and Industry (KATI) on March 19th, the Chairman of the Federal Board of Revenue (FBR) of Pakistan Salman Siddique revealed that a list has been compiled of 2.3 million high earning individuals who currently pay no personal income taxes and are not even registered for a national taxpayer number (NTN). All the persons named in the list will be contacted in the near future, however the FBR will initially only address a selection of 700 000.

The investigation was carried out with the assistance of the National Database and Registration Authority (NAD...

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VAT Increase Delays Tax Freedom Day

December 30, 2010 Taxation in UK

Few PoundsThe UK Government’s upcoming increase to the national Value Added Tax rate will push the country’s Tax Freedom Day back by three more days.

On December 29th the UK Adam Smith Institute (ASI), an independent financial think tank, revealed that the average UK taxpayer will spend approximately 149 days worth of income in 2011 just to pay their personal tax bill. The Institute completes the calculation every year, based on the latest average earnings levels of UK taxpayers and the country’s applicable tax rates. The calculated date is commonly referred to as the national Tax Freedom Day (TFD).

The UK TFD date for the 2011 year will fall on May 30th, compared to May 27th in 2010...

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Scottish Budget Gives Rise to Tax Autonomy Scandal

November 22, 2010 Taxation in UK

Alex SalmondThe recent release of the Scottish national budget is being overshadowed by a revelation that the Scotland’s leading government party secretly abandoned its only independent tax power, leaving the country with no tax autonomy for at least two years.

Last week the Scottish National Party (SNP) revealed the country’s budget for the upcoming year. However, the announcement was marred when a round of in-Parliament questioning led the Finance Minister to disclose that the Party opted to forgo the opportunity to keep the Scottish Variable Rate (SVR) system, without consulting or informing the national Parliament.

Under current regulations, the only autonomous tax revenue raising power the Scottish Government can exercise is the SVR, otherwise known as the “tartan tax”...

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111 000 US Taxpayers Missing Their Tax Refunds

November 19, 2010 Taxation in USA

Yay! Ta Cash bonus day!!! WOOOO!The US Internal Revenue Service currently holds USD 164.6 million worth of tax refunds that are yet to be delivered to taxpayers, mainly due to clerical errors or outdated delivery and personal details.

The US Internal Revenue Service (IRS) is actively urging taxpayers to migrate to an electronic tax return filing system, pointing to the fact that a vast number of people are yet to receive their tax refunds simply because they could not be delivered to the right address due to old or inaccurate personal records. On November 17th the IRS reveled that a total of 111 893 taxpayers across the country are still waiting for their refunds, which were sent to them in the form of a cheque but were subsequently returned or deemed undeliverable.

According to the IRS, in 2010 the average tax refund am...

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