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...

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...

Since January 1, 2017 Ukraine will join to the Plan of BEPS

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

Such news was told by the Ministry of Finance of Ukraine after transfer on November 22 by the Minister of Finance of the official letter on accession to the General secretary of OECD (Organization for Economic Cooperation and Development) which is the author of this Plan. The plan of BEPS (Base Erosion and Profit Shifting) was developed for fight, which connected with tax evasion and creating of equal conditions for all taxpayers companies. In general the plan of BEPS provides large-scale reorganization of the existing system of the cross-border taxation. It contains 15 points of counteraction to aggressive tax planning among which there are enhancements of rules of transfer pricing, the income taxation of the controlled foreign companies, prevention of avoiding taxation by international treaties, exchange of financial information, etc. With acquisition of official membership in BEPS Ukraine will undertake the liability to implement the minimum standard of the Plan including four points: fight against the tax speculation connected with use of special tax regimes; avoidance of abuses in case of application of tax conventions; disclosure of information on using schemes of...

Compensation to individuals for damage caused by the abuse of the financial services industry

Published: Sergey Panov | 23/11/2016 | blog

Began operating a law on compensation to individuals for damage caused abuse in financial servicesOn November 18 it was officially published, and on November 19 the Law of Ukraine came into force "About introduction of amendments to some laws of Ukraine concerning compensation to physical persons, through system of guaranteeing household deposits, the harm done by abuses in the sphere of banking and other financial services", in consequence of that in some way were changed the "rules of the game" in the field of guaranteeing deposits of individuals. The main innovation is equating with a contribution of loans and household deposits in the non-bank financial institutions performed through bank which acted as the attorney under the relevant agreement and and on the date of entry into force of the Law it is recognized as insolvent. An obligatory condition for the acceptance of such funds contribution and the physical persons which performed their placement / provision – investors, is lack of the written prevention of the bank signed by the investor that the guarantees provided by the law on system of guaranteeing household deposits don't extend to these means. In practice, this...

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...

The tax residency

Published: Sergey Panov | 04/11/2016 | blog

Against the background of the active introduction of more and more countries, the automatic exchange of financial accounting information provided by the multilateral agreement of the competent authorities ("The Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information", abbr. "MCAA") becomes apparent inevitability of joining in the near future Ukraine's this agreement. Recall that the MCAA involves automatic annual exchange of information on the accounts of non-residents between the competent (tax) authorities of countries that have signed the agreement. This fundamental question is the definition of tax residence of the account holder, as the information about it will be sent to the competent tax authorities of the country, the tax which he is a resident. Tax residency financial institution is determined primarily through independent determination of the account holder, on the basis of the information specified in the documentation to open an account. If the account holder declares the absence of residence for tax purposes, the financial institution determines its residency at the main office location. It is important to understand that...

Author: Сергей Панов