Сергей Панов, Author at Finance Business Service

The EU consults concerning reform of VAT rates

Published: Sergey Panov | 22/12/2016 | news

The European commission began process of consultations on reforming of the rules regulating value added (VAT) rates. An autumn 2017, the commission intends to provide official proposal about reform of the VAT Directive. The directive sets common rules that restrict the right of choice for the Member States to establish VAT rates, and is intended to guarantee neutrality, simplicity and technological effectiveness of the VAT system. The system was created more than two decades ago, for the purpose of achievement of the final VAT system based on the "principle of origin" amely - system in which location of the seller determines a tax regime including rates. As a result, state members will be obliged to tax the same goods at very similar rates, and the directive established the minimum levels of the taxation in hope that over time VAT rates will meet. The Commission stated that the implementation of the target system, has opened an opportunity to reform the rules and rates to make them less constraining for the Member States. At a meeting look for feedback about need of actions of the EU in the field of VAT rates and between harmonization, and autonomy of state members in...

New rules of financial services licensing: simplified conditions of the license

Published: Sergey Panov | 22/12/2016 | blog

New licensed conditions of implementation of economic activity on provision of financial services (except professional activity in the security market) were approved by the Order of the Government No. 913 of December 7 and came into force on December 10, 2016. The license on provision of financial services can be obtained quickly and cheap. Unless, of course, all documents are in order. According to Licensed conditions, the licensing authority issues licenses for such types of financial services: providing of borrowed money, including credit and financial conditions; attraction of financial assets with an obligation to follow their return; services in the sphere of insurance regarding carrying out the specific types of insurance determined by the legislation; services in system of accumulative provision of pensions regarding administration of non-state pension funds; property management for the financing of construction projects and / or implementation of real estate transactions in accordance with the Law of Ukraine "About financial and credit mechanisms and management of property under construction housing and real estate transactions"; trust management of financial...

Australia needs tax reform

Published: Sergey Panov | 20/12/2016 | news

James Pearson, the CEO of the Australian chamber of commerce and the industry (ACCI) told that the country "needs tax reform on a wide basis, but not gradual approach for the purpose of stimulation of economic growth". The real gross internal product (GIP) as predict, grows for two percent in 2016-17, and for 2.75 percent in 2017-18. The main cash deficit as expect, will fall from 2.1 percent of GDP in 2016-17 to 0.5 percent in 2019-20. The net debt as it is supposed, will reach a maximum in 19 percent of GDP in 2018-19, and then will decrease for the medium-term period approximately to 10 percent. The size on recovery of the budget that took place from a general election in May, costs more than 22 billion Australian dollars (16 billion US dollars). The treasurer Scott Morrison told that for maintenance of economic growth, the government will continue to perform the plan for workplaces and growth that will allow to raise level of living and will support a profit increase. He told that the government remains careful in taxation by high taxes of the Australian economy on the ground that it limits growth and therefore the income. This assumption provides to the government...

The Council of Europe approved the Directive on access to information about beneficial owners

Published: Sergey Panov | 19/12/2016 | blog

On December 6 at a meeting of the EU Council on financial and economic questions the Directive of the EU Council concerning access of tax authorities to information on counteraction to money-laundering was approved. This document obliges EU Member States to provide access to information on beneficial owners of the companies, which dispose the authorities responsible for counteraction to money-laundering. It will allow tax authorities to perform monitoring of application of the rules of automatic exchange information established by the Directive 2014/107/EU, and finally will contribute to the prevention of tax evasion and tax fraud. The new Directive is one of a number of measures developed by the Commission in July 2016 in response to the Panama scandal. Its adoption by the need to ensure wider access to the tax authorities information about the beneficial owners of the intermediary organizations, and also other information of complex legal evaluation of clients. Let's remind that according to the Directive 2015/849/EU in the event that the owner of the financial account is an intermediary structure, financial institutions should conduct an audit and to identify its...

The contribution of UK’s largest taxpayers increased in 2016

Published: Sergey Panov | 19/12/2016 | news

This year, the largest companies of Great Britain paid for taxes 82.3 billion pounds sterling (103.2 billion US dollars), in comparison with 2015, they paid 80.5 billion pounds sterling, despite reducing corporate tax rate, according to the report of PwC. Tax deposits from 100 largest companies in Great Britain constituted 13,3 percent of the state receipts and it turned out 23.7 billion pounds sterling in a type of tax which become covered at the expense of companies and 58.6 billion pounds sterling of taxes which were collected by the entities on behalf of the government, such as the VAT and a tax which they created in 2016. Taxes increased by 3.6 percent since 2015, due payments increasing of the corporate tax. PwC says, while the corporate tax is at the lowest level, elimination of a capability of banks to offset the losses or to make compensation payments for the purpose of the taxation, led to increase amount of the corporate tax. Revenues from banking tax rose by 24.4 per cent in 2016, after the rate increase. The tax contribution from the financial sector, increased over the past six years, it currently accounts for 43 percent of the taxes collected from 100...

Increasing of tax risk abroad

Published: Sergey Panov | 16/12/2016 | news

Companies are faced with a more thorough check of taxes, as more and more employees are working at the international level, 24 percent of enterprises reported a recent call by tax authorities. According to PwC, minimization of the taxation and removal of profit of OECD aggravated attention on the risks connected with mobility of employees as the international organizations. The governments are aimed at providing profit that is assessed with a tax on the territories where business activities are performed. 31 percent of the companies say that they don't know the exact number of the employees working at the international level. 58 percent of the companies realize consequences of this tax provision and they don't know how to cope with such changes. Most of them understand that it is necessary to make changes before tax rules are put into operation. According to the report, informally migrating population creates special problems and risks for employers. Nearly a quarter (23 percent) of respondents told that they didn't know who bears responsibility for business travelers and only a third of the companies worry about the taxes. Ben Wilkins, the partner of global mobility told...

EU in search of successful promotion tax

Published: Sergey Panov | 15/12/2016 | news

The Presidents of the European Parliament, the Council and the Commission gave their consent that the successful promotion of taxes just need "to eliminate the tax fraud, tax evasion and for safe, fair tax system." Schultz, Fico and Juncker signed (in December) a declaration in which they are given direct EU objectives and priorities of the legislation process in 2017. Even if the impact and changes in tax process was not one of the most issues, it was one of the "four main tasks that need to pay special attention to further progress in 2017," and what about draft laws, presidents of the three state institutions have stated that "draft laws have to be fast tracked." Therefore, the institutions have decided to set up a joint monitoring and track the progress of tax, when it is said about the implementation of the joint statement. Meetings of the three state institutions will be held in the spring, summer and autumn of 2017, and implementation of such declaration will be verified on a regular basis of the interdepartmental working group on coordination of activities. Author: Sergey Panovmanaging partner Finance Business...

Seychelles planning considerable tax changes in 2017

Published: Sergey Panov | 14/12/2016 | news

The Seychelles will finish considerable reforms on the main taxes in 2017. Since July 1, 2017 the new assessed tax on the land property in the Seychelles will be imposed, it will be levied only for foreigners, and purchases of the private land by foreigners will also attract the high state fee. Also, the government suggests to change the law on taxes for entrepreneurs. The limit taxable for the separate entities, such as individual dealers or partners, will remain in SCR150,000. Besides, the government offers that the expected rate of a tax was changed further. The rate of a tax on the entities with turnover to SCR0.5m shall remain at the level of 1,5 percent, but the tax on three percent will be imposed on the entities with turnover from SCR0.5m. Professional taxpayers, such as accountants and engineers, will pay a rate of five percent. The government will exempt the entities with an annual gross income to SCR1m from the tax discharge in the first year of operation to help small and medium scale enterprises. Larose told that at the moment the purpose is "to turn Seychelles into the capital of small and medium business of the Indian Ocean". Larose also announced an...

Scotland urged to provide independence of new tax court

Published: Sergey Panov | 13/12/2016 | news

New tax appeal court in Scotland should be independent from the national new tax authority, the group of tax reform with the low level of the income declared. Simultaneously with the introduction of the new Scottish tax inspection to manage taxes, transferred from the UK, Scotland suffers an existing tribunals service to the Scottish Tribunals on 1 April 2017 and brings a lot of related changes, according to the legislative offers. These offers include drafts of procedural rules for new court of the first level for tax chamber of Scotland which will be similar to an operating mode of present tax court of the first level. Reacting to negotiations on new system, the group of tax reform with the low level of the income declared that tax chamber and tax court of the first level "actually, both shall be both conscious, and absolutely independent of the income of Scotland". Also noted that the system of court shall be "available to all" and asked that the government considered a question of providing free legal services tax and accounting services to help people with low incomes. Author: Sergey Panovmanaging partner Finance Business...

The Canadian tax benefits are profitable for rich persons

Published: Sergey Panov | 12/12/2016 | news

Tax expenditures on the income of physical persons of Canada bring benefit for more than 50 percent of persons which gain income, according to the new report of the Canadian center of political alternatives (CCPA). Using data of 2011, it was established that 59 of 64 tax expenses, provide more benefit to 50 percent of the persons gaining income. It shows that in 2011 39 percent of profitable tax expenses provided to more than 10 percent of persons which gain income, and less affluent taxpayers saw only 16 percent of the benefits. The report states that there are only five taxes: a tax on working income, a guaranteed income without tax, social security without taxation, reimbursement of medical costs and disability tax credit - they can be described as "relatively progressive" with maximum benefit CAD1,110 ($ 840 USA). The Canadian government is currently carrying out a comprehensive review of federal tax expenditures. The goal is to ensure that the tax costs are fair, effective and have financial responsibility. The Canadian center of political alternatives has recommended that the annual tax expenditure report from Finance Canada, included the distribution of tax...

Author: Сергей Панов