Category: Goods and Services Tax

Heat on tax evaders could be endgame for black money

Chances of tax evaders coming under the scanner is rising due to the implementation of the GST, greater use of technology and exchange of information between countries New Delhi: The noose is tightening around tax evaders. Be it the implementation of the goods and services tax (GST) or the greater… – Continue reading

Cabinet approves formation of Goods and Services Tax Council, which will set the tax rate

The council will be chaired by Finance Minister Arun Jaitley and will make all the major decisions on the implementation of the new regime. The Union Cabinet on Monday notified and approved the formation of the Goods and Services Tax Council, the body that will oversee various issues regarding the… – Continue reading

ATO Issues Anti-Avoidance Warnings For Multinationals

The Australian Taxation Office (ATO) has issued a series of taxpayer alerts that caution large companies against using contrived arrangements to avoid their tax obligations. The first alert concerns arrangements where Australian consolidated groups use offshore permanent establishments that have entered into intra-group transactions. Deputy Commissioner Jeremy Hirschhorn explained: “Through… – Continue reading

GST will reduce tax evasion, improve business environment

The implementation of the goods and services tax (GST) will reduce tax evasion and improve ease of doing business by engendering a common market throughout the country, finance minister Arun Jaitley said on Monday, as he moved the modified constitution amendment bill in the Lok Sabha. “GST will ensure one… – Continue reading

Global Tax Update – June 2016

Asia Pacific The January – March edition of tax highlights for the Asia Pacific region highlights industry developments from Australia, China, Hong Kong, India, Indonesia, Korea, Malaysia and Singapore including: Australia’s new tax system for Managed Investment Trusts The final stage of China’s B2V reform to be rolled out from… – Continue reading

Australia Moves to Remove ‘Double Taxation’ on Digital Currency

For a month starting May 3, The Treasury of the Australian government will be accepting submissions from interested parties to comment on a newly-released discussion paper entitled ‘GST treatment of digital currency’ as part of the 2016-17 Budget. The Treasury says the government has realized that consumers are ‘double taxed’… – Continue reading

In Absence of GST, Service Tax Lawsuits on Rise: Experts

Service tax litigations have risen substantially in recent years and that may be because of the absence of a pan-India Goods and Services Tax (GST) regime that can potentially remove several ambiguities around indirect taxation, experts maintain. A total of 75,314 litigations were pending with the Department of Revenue, the… – Continue reading

Australian Government Seeks End to Double Taxation of Bitcoin

The Australian government has announced that it will back a legislative solution to tax concerns surrounding bitcoin as part of a broad policy statement on financial technology. Under current tax guidance in the country, bitcoin is considered a form of barter rather than a form of money. Australian businesses must… – Continue reading

The rich people who pay no tax

Only the little people pay taxes. For a small, select cohort of rich Australians, the famous quote of New York property billionaire Leona Helmsley rings not as an outrage but as an inspiration. In the most recent documents released by the Australian Tax Office, there were 55 people who had… – Continue reading

Taxation reform has to be holistic

The government reportedly wants to extend to three years the holding period for investments in listed shares to qualify for capital gains tax exemption. This accepts the need to change the present capital gains tax regime but might not be the best way to go about it. It would discriminate… – Continue reading

How to hit the rich where it really hurts

If the apparent demise of the Coalition’s push to increase the GST shows anything, it’s that Australians are unwilling to accept tax reform unless it is obviously fair. It is right to think that rich people should pay more tax than the poor. Happiness studies show an extra dollar means… – Continue reading

‘Unavoidable’ Netflix Tax enters Parliament

Australian Treasurer Scott Morrison says overseas companies selling digital products to Australians will not be able to avoid paying the GST. The so-called Netflix Tax that would see overseas-based businesses selling digital products to Australians collect 10 percent GST has entered the House of Representatives. Introduced by Treasurer Scott Morrison,… – Continue reading

Canada: Voluntary Disclosure CRA Latest Statistics – Toronto Tax Lawyer Commentary

Voluntary Disclosure & CRA Annual Report to Parliament – General Information CRA has provided the latest statistics about the tax amnesty or voluntary disclosure program (VDP) for the previous fiscal year. CRA provides an annual report to parliament that provides a wealth of information about its activities over the past… – Continue reading

What’s ahead for 2016 in taxation – will the rubber hit the road?

Many serious reforms have been implemented, and very strong Federal political will, together with strong state-based political consensus, will be needed for any further tax reform in 2016. Over the last couple of years, there has been a lot of talk about tax reform, notably base erosion profit shifting (BEPS)… – Continue reading

McDonald’s halves its tax bill, back pays $78m

McDonald’s Australia was able to more than halve its tax bill last year after routing payments via the low-tax nation of Singapore. Each year McDonald’s reduces its profit, and thus its local tax bill, by paying McDonald’s Asia Pacific based in Singapore, and registered in Delaware, a “service fee” amounting… – Continue reading

Budget cost of family home tax breaks close to $55bn a year, says Treasury

Surge in revenue foregone by exempting family home from capital gains tax – largely driven by higher property prices – fuels fiscal policy debate The budget cost of tax breaks on family homes has reached nearly $55bn a year, fuelling debate about alternative options as the Turnbull government prepares its… – Continue reading

Service tax exemption limit to be raised to Rs 25 lakh in Budget

The Ministry of Finance is planning to make the forthcoming general budget people-friendly. According to informed sources, the service tax exemption limit is expected to be increased from Rs 10 lakh at present to Rs 25 lakh. This is being seen as a major step aimed at benefitting traders and… – Continue reading