Сергей Панов, Author at Finance Business Service

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...

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...

EU Council approves the following actions of international tax reform

Published: Sergey Panov | 09/12/2016 | news

On December 6 meeting, the EU's Economic and Financial Affairs Council (ECOFIN) approved a number of measures for improvement international observance of the tax legislation. Specifically, the ECOFIN provides access for tax authorities to information, held by authorities responsible for prevention of money laundering; reached a consensus on the Directive project that aimed at closing of “hybrid mismatches” with the taxation systems of three countries; also made the decision concerning the offer to recommence the common consolidated corporate tax base (CCCTB). The Directive on exchange of information on beneficial owners of the companies it is intended to support tax authorities controlling the correct application of tax rules, thereby helping to prevent tax avoidance and tax fraud. At the second stage after the intensive discussions, Council agreed to stabilize the document for the majority of provisions Directive's plan about hybrid mismatches, leaving only two questions to solve them on the next weeks: rules that would allow Member States to apply the limited benefits and date of realization. “This directive will prevent corporate taxpayers for exploiting...

Spain increases the burden of the corporate tax

Published: Sergey Panov | 06/12/2016 | news

The government of Spain declared growth of a budget income on December 2, that will increase tax revenues from corporations. In spite of the fact that recently created government decided to leave the 25 percent corporate tax rate untouched, Spain will limit the corporate tax deductions. They will contribute the most part of 7 billion euros in the new income at which the government is aimed. The Budget imposes new limits on loss carry backs and restrictions for use of the pecuniary losses connected with shareholdings in the companies located in "tax harbors or in the territories with not appropriate level of a tax" in number with other changes. New measures of the corporate tax, as expected, raise the additional amount of 4.65 billion euros in revenue for the government. Besides, real estate value will be updated for property tax to increase revenues. Also, the government intends to lift a number of "guilty" taxes, including on alcohol, tobacco, and sweet drinks. Other changes are directed on modernization VAT and the fight against fraud VAT. It includes a new reporting system of the VAT in real time which announced in 2014. Taxpayers will be obliged to report about...

Australian pension tax reforms are approved

Published: Sergey Panov | 01/12/2016 | news

On November 23 the amendment of Treasurer laws (fair and stable pension) the bill of 2016 and contributions to the pension fund (excess tax balance transfer) taxation bill in 2016 was adopted. In joint release, the Treasurer Scott Morrison and the minister of the income Kelly O'Dwyer told: "The package of proposals on reform of pension fund contributions, the best purpose of tax benefits to make our pension system fair and stable as aging of the population and tax difficulties increase." The legislation performs following operations: allows for pensioners to make, "approximation" to concessional contributions with balance below 500,000 Australian dollars; introduce the maximum amount of the transfer balance of 1.6 million Australian dollars, sets the amount of restriction, which person can transfer into the pension phase of the non-taxable income; removes "10 percent rule" (the profitable test) to provide equal conditions for access to pension fund contributions of tax benefits, irrespective of a situation of employment person; introduces tax compensation of the pension low income. Such measures will come into force since July 1, 2017. "Ninety six percent of people...

The new Law about International business companies on the Seychelles came into force

Published: Sergey Panov | 28/11/2016 | blog

Within the Global forum FATF and OECD on transparency and exchange of information in the tax sphere, on July 26, 2016 in Seychelles the new law about International business companies was adopted (further in the text – "The new law"). The new law offers tough, but at the same time the attractive regulatory base promoting development of competitiveness and continuation of a strong growth of popularity of the Seychelles as the international center of financial services. Fixing of regulatory aspects of the law, for the purpose of compliance to international standards, reflects interest and observance of Seychelles Republic advanced international experience, in particular, concerning an international initiative on improvement of information openness that will affect reputation of the Seychelles in the opinion of the international community positively. From the moment of adoption of law about International Business Companies, 1994 (further – "The law of 1994"), international business companies have become very successful in the Seychelles in the sector of non-bank financial services. Despite success of the 1994 Law the Republic of Seychelles has noted the need to improve the...

Seychelles – problems of acceptance of the final decision on expenses deduction

Published: Sergey Panov | 25/11/2016 | news

The Seychelles Revenue Commission (SRC) has published the second and final Public Ruling of 2016, for provision of clarity concerning methodology, used the additional emergency tax deduction permitted for marketing and promotion of expenses for calculation. SRC confirmed that some entities in the Seychelles are resolved, in addition to their normal deduction on the business tax (i.e. their actual marketing and the helping expenses), special subtraction equals to five percent of their leviable tax from the business income or from their actual expenses during the marketing and promotion, depending on what income is smaller. The special deduction is allowed for farms; agricultural enterprises and exporters; boat owners; fishery entities; hotels, guest houses and organizations with own kitchen; cafe and restaurants; internal suppliers of air transport services; internal suppliers of ferry transportations; boats or charter companies of the yacht; companies of a car hire; divings and operators of water sports; travel agents, tour guides and/or guides; and gambling/casino operators. Author: Olena Kutova senior lawyer of the Finance Business Service company ...

The Commission of US recommends anti-Chinese trade laws

Published: Sergey Panov | 22/11/2016 | news

The US Congress and the US-China Economic and Security Review Commission in its report 2016, has recommended strengthening of the American procedures of a labor dispute and the legislation for counteraction of China of "refusal to support the liabilities of the World Trade Organization". In 2015, the American trade deficit of goods with China increased by 6.5 percent to record 367.2 billion US dollars. Last year the United States had essential, but much more a smaller positive trading balance with China in services of 29.5 billion US dollars. The commission says that China continues to brake on liberalization of key sectors in which the United States are competitive in the world market on services. Also, the Commission specified that "within the last 20 years, anti-dumping (AD) and the countervailing duty (CVD) were often pushed against China, about more than 1000 cases of AD initiated against China around the world since 1995. The Commission also considered demand of China, about its provision on market economy (ME) till December 11 of this year, and also the Commission confirmed that the US Commerce Department is now responsible for determining "whether is a country ME...

Kevin Brady:” The American tax reform won’t influence the income of the state”

Published: Sergey Panov | 18/11/2016 | news

The representative of the budget committee Houses of Representatives Kevin Brady pointed out, that the American tax reform, which he expects to offer at the beginning of 2017, "will break even" on a dynamic basis of winning, which is additional revenue from increased economic growth. During a television interview with Fox News on November 16, Brady discussed how the Republican faction and president-elect Donald Trump will "co-operate to ensure for pro-growth tax reform." He explained that "we provide tax code so honestly and simply, that 95 percent of Americans will be able to use a file with a card system. Second, we reduce the rates for our local businesses and redesigning the way they are taxed, so that they can compete and win anywhere in the world, but especially here at home. And finally ... we propose to destroy the IRS, to redesign it in a much smaller, bespoke agency focused on customer service. This is our 'Built for Growth' tax plan." He told that the plan instead of reducing the tax revenue and to increase the American financial deficit, "will become profitable within the budget, knowing that from it the economy will grow. By our estimates, it will raise economy...

Australia declares tax returns in 2016

Published: Sergey Panov | 08/11/2016 | news

The Australian Tax Office (ATO) has stated that the highest level of online tax innings was issued in 2016. According to the latest ATO, more than three million Australians have filed their tax returns on time on the Internet via myTax. More than 6.5 million people filed through the tax agency. More than 100,000 people, which is used myTax, received a return on their submission until 31 October, that is, until the expiry of the deadline.Assistant Commissioner Graham White said: "We had a lot of answers to myTax and figures show how well our system works this year, 84 percent of people also told us that this system is easy to use." White added that it is still possible for the taxpayers, who have missed the deadline for filing claims to return, and stressed the need to do so as soon as possible. "If you are having problems with your tax return, we encourage you to contact us before we contact you. We can work with you to help you avoid penalties," he said.White also said that taxpayers with debt as a whole should pay the outstanding amount at 21 November. "The majority of registered agents have a program that allows them to file returns for their individual customers after the...

Author: Сергей Панов