Indirect Tax

ANALYSIS: How political pressure is preventing a US VAT

Fri, 24 Feb 2012 00:00:00 GMT

With the US needing to cut its deficit, it is inevitable that talk in some corners is turning to VAT once again, but the fierce political backlash unleashed whenever a politician supports the idea could prove an insurmountable barrier to it ever becoming a reality.

Why African nations are turning to VAT to limit tax abuse

Fri, 24 Feb 2012 00:00:00 GMT

More than 70% of African countries have now adopted a VAT, and it increasingly seems to be the tax of choice for states across the continent looking to generate extra revenue, because it is a hard tax to avoid.

Why the EU remains defiant as global opposition to ETS intensifies

Thu, 23 Feb 2012 00:00:00 GMT

The EU is remaining defiant in the face of increasing international opposition to the extension of its Emissions Trading Scheme (ETS) to cover the aviation industry, which took effect on January 1 2012.

Carbon tax could hit South Africa within a year

Wed, 22 Feb 2012 00:00:00 GMT

As part of finance minister Pravin Gordhan’s 2012 budget, it was announced today that South Africa is considering the introduction of a carbon tax as early as next year.

UK must cut compliance burden and complexity of tax regime, says CBI

Wed, 22 Feb 2012 00:00:00 GMT

The Confederation of British Industry (CBI) signalled a general approval of Chancellor George Osborne’s tax policy yesterday, but warned he must get the details right to make the UK the most competitive regime in the G20.

Draft RDR guidance on VAT liability could lead to additional charges

Fri, 17 Feb 2012 00:00:00 GMT

HMRC’s revision of draft Retail Distribution Review (RDR) guidance on VAT liability has been well received by most financial advisers, but could lead to additional charges.

Gillard’s indirect tax plans still ruffling feathers

Fri, 17 Feb 2012 00:00:00 GMT

Not only has opposition to the Australian government’s carbon and mining taxes failed to subside as the implementation dates grow closer, it has even had a resurgence in recent weeks.

India: Negative list of services – a pre-cursor to GST?

Fri, 17 Feb 2012 00:00:00 GMT

The concept of having a negative list of services, taxing all services comprehensively with a small list of exempt services, has been a frequent subject matter of discussion in recent past especially since India is on a cusp of undertaking sweeping reforms of its taxation regime with the advent of the Direct Taxes Code and unified GST, explains Sachin Menon, head of indirect tax at KPMG India.

Tax transparency in the spotlight like never before

Fri, 17 Feb 2012 00:00:00 GMT

Companies around the world are beginning to understand the importance of transparency about their tax affairs and the reputational benefits of eschewing aggressive tax planning. They will have the opportunity to debate these crucial issues with administrators, activists and practitioners at International Tax Review's first Tax & Transparency Forum on May 2.

Why HMV and Channel Islands’ resistance to scrapping tax relief is futile

Thu, 16 Feb 2012 00:00:00 GMT

As the Channel Islands prepare to fight the scrapping of the UK’s low value consignment relief (LVCR) in a judicial review next month, Simon Fox, CEO of music retail company, HMV, argues that it may cause companies like his to relocate to Switzerland. Both, however, are likely to be shouting at the wind.

European Tax Awards 2012: Entries close on February 14

Mon, 13 Feb 2012 00:00:00 GMT

Firms with offices throughout Europe and South Africa have until tomorrow to enter for International Tax Review's European Tax Awards

COMMENT: Why the UK’s tax regime means it is open for business

Mon, 13 Feb 2012 00:00:00 GMT

Opinion is divided as to what path UK chancellor George Osborne should take in his 2013 budget next month. The coalition government has consistently delivered the statement that “Britain is open for business”, but how is the UK ensuring it remains an attractive location for business and investment?

EXCLUSIVE: EC’s Manfred Bergmann cautions France against going it alone with the FTT

Mon, 13 Feb 2012 00:00:00 GMT

Manfred Bergmann, director for Indirect Taxation and Tax Administration at the European Commission, nicknamed Mr FTT in EU circles, is the man behind the EU’s proposed financial transactions tax. In part two of an exclusive interview, he discusses France’s decision to implement the tax unilaterally, looks at the problem of banks passing it on to customers and outlines the Commission’s timetable.

European VAT rises create compliance headaches

Fri, 10 Feb 2012 00:00:00 GMT

France, Cyprus and Croatia have become the latest European countries to hike VAT rates as taxpayers look on increasingly concerned.

FTT will hit end-users hardest, says EACT chairman

Fri, 10 Feb 2012 00:00:00 GMT

A European financial transaction tax (FTT) will hit end-users in the real economy – such as companies and pension funds – hardest, according to European Association of Corporate Treasurers (EACT) chairman Richard Raeburn.

The challenge of Mexico’s rapid transition to electronic customs reporting

Fri, 10 Feb 2012 00:00:00 GMT

Companies importing or exporting to Mexico must use an electronic reporting system to file customs information from March 1 2012, but despite the long-term benefits, there may be short-term headaches.

Cyprus confirms VAT hike

Thu, 09 Feb 2012 00:00:00 GMT

ANALYSIS: Why taxpayers should consider relocating to the UK

Wed, 08 Feb 2012 00:00:00 GMT

Slashing the corporate tax rate, reforming the controlled foreign company rules and blocking plans for a financial transactions tax are just three ways the government hopes to attract multinationals to relocate to the UK. International Tax Review investigates whether these steps will tempt companies to make the move.

EXCLUSIVE: EC’s Manfred Bergmann reveals why the FTT’s critics are wrong

Tue, 07 Feb 2012 00:00:00 GMT

Manfred Bergmann, director for Indirect Taxation and Tax Administration at the European Commission, nicknamed Mr FTT in EU circles, is the man behind the EU’s proposed financial transactions tax. In part one of an exclusive interview, he explains why critics are wrong to claim it will harm growth, and why the UK has nothing to fear.

COMMENT: Why protests against EU carbon tax on airlines are a load of hot air

Mon, 06 Feb 2012 00:00:00 GMT

Since airlines were brought into the EU Emissions Trading Scheme (ETS) last month, long-haul countries have been stepping up the noise of protests which will only hurt the environment and taxpayers.

Electronic Customs reporting to make Mexican trade more efficient

Fri, 03 Feb 2012 00:00:00 GMT

Companies importing or exporting to Mexico must use an electronic reporting system to file Customs information from March 1 2012.

EXPOSED: The “highway robbery” of Germany’s interest regime

Fri, 03 Feb 2012 00:00:00 GMT

Taxpayers are angry over Germany’s unfair enforcement of interest on old VAT errors even when there has never been any loss to the exchequer. International Tax Review investigates.

Belgium: Company cars: important retro-active changes on the VAT deduction rules

Wed, 01 Feb 2012 00:00:00 GMT

In an administrative decision, published on October 25 2011, the VAT authorities clarified the new rules on the input VAT deduction on company cars that are used both for business and private use purposes. The VAT deduction method to be applied will significantly change. The changes take effect retroactively from January 1 2011.

French FTT will only benefit UK, says Financial Secretary

Wed, 01 Feb 2012 00:00:00 GMT

Banks will leave France and relocate their financial transaction branches to the UK and other jurisdictions if President Nicolas Sarkozy goes ahead with the financial transactions tax (FTT), according to UK Financial Secretary to the Treasury Mark Hoban.

Vietnam: Amendments to expect in 2012

Wed, 01 Feb 2012 00:00:00 GMT

A number of amendments to the Vietnamese tax regulations are proposed to take place throughout 2012, including changes to foreign contractor tax, thin capitalisation regulations, and advanced pricing agreements; all of which we intend to discuss in the next issue. Recent updates have also been made to corporate income tax and VAT regulations.

COMMENT: France’s decision to unilaterally tax financial transactions is a risk, but one worth taking

Mon, 30 Jan 2012 00:00:00 GMT

French President Nicolas Sarkozy has followed through with his promise to go it alone with a financial transactions tax (FTT). The announcement has already hit shares in the banking sector, but France should weather the short-term pain to see long-term gain.

SPECIAL REPORT: Everything you need to know about the Vodafone ruling

Mon, 30 Jan 2012 00:00:00 GMT

International Tax Review has compiled a special free pdf report on Vodafone’s Indian Supreme Court victory. View the ruling, read what industry had to say, and uncover what this decision means for your business.

Indian indirect tax collection surges

Fri, 27 Jan 2012 00:00:00 GMT

Indirect tax collections – comprising customs, central excise and service tax – rose to Rs 2,85,787 crore ($58 billion) during April to December. It is a significant boost to the government ahead of its plans to introduce GST.

What a Greek VAT U-turn would mean for multinationals

Fri, 27 Jan 2012 00:00:00 GMT

Rumours are rife that the Greek government will opt to reduce the VAT rate when it drafts a Bill for a new tax system next week.

Nike Thailand victory brings good news for importers

Thu, 26 Jan 2012 00:00:00 GMT

The Supreme Court of Thailand has ruled in favour of Nike in a dispute over royalties with the Customs Department. The case sets a welcome precedent for companies looking to import goods from a third party.