Trends and Players in Tax Policy. Editors: Michael Lang Jeffrey Owens Pasquale Pistone Alexander Rust Josef Schuck Claus Staringer Alfred Storck

Transcription

1 Trends and Players in Tax Policy Editors: Michael Lang Jeffrey Owens Pasquale Pistone Alexander Rust Josef Schuck Claus Staringer Alfred Storck LLUJ IBFD Volume 4 W7 Institute for Austrian and International Tax Law European and International Tax Law and Policy Series

2 Preface xliii Part One Chapter 1: General Report 3 Pasquale Pistone 1.0. Introduction Trends in tax policy as from Personal income taxes Corporate income taxes Other business taxes VAT Excise duties Taxes on capital Compulsory social security contributions paid to government Environmental taxes Other taxes Main drivers of tax reforms since Main drivers of tax reforms since Influence of tax reform commissions Influence of independent research Institutes and universities Tax expenditure budget Assessment of the impact of tax reform Drafting and reviewing tax legislation and regulations Drafting of tax legislation The role of outside stakeholders Drafting of tax regulations Influence of tax regulations and secondary sources of law in the design of tax policy Assessing the consistency of drafting with the constitutional, supranational and treaty law 35 v

3 1.4. Building up tax expertise Training of tax professional Professional qualifications and their assessment Ideas for future development The changing relationship between tax administrations and taxpayers General issues The protection of taxpayers' rights: From theory to practice The relations between taxpayers' rights and human rights The consequences of violations in tax matters Legal remedies in tax matters The relations between tax authorities, taxpayers and their advisors The protection of legal certainty in the tax system The protection of the collection of revenue The Status and remuneration of tax officials Major players in tax policy General issues The role of the parliament and government in determining the tax policy Tax policy and regulatory goals The influence of external players The influence of international external players Participation in the debate on international tax policy Tax policy in the global economy Competitiveness Smart tax competition Outward and inward Investment The role of tax treaties in attracting inward Investment Tax incentives and tax sparing Measures against aggressive tax planning The BEPS project Good governance General issues Global tax transparency and good governance 72 vi

4 The expected and desirable developments in international tax coordination Good tax compliance and good corporate governance Conclusions 75 Part Two Chapter 2: Australia 79 Richard Krever and Peter Mellor 2.1. Trends in tax policy as from Personal income tax Corporate income tax Other business taxes VAT Excises Recurrent taxes on capital Non-recurrent taxes on capital Compulsory social security contributions paid to govemment Environmental taxes Other taxes (e.g. natural resources taxes) Main drivers of tax reforms since Main drivers of tax reforms since Major tax reform commissions Influence of independent research institutes and universities Australian tax expenditures budget Data on tax reforms Drafting and reviewing tax legislation and regulations By whom are tax laws drafted? Outside stakeholders Drafting of secondary Instruments Influence of secondary law Verification of proposals Building up tax expertise Formal training Professional qualifications 95 vii

5 Verification of qualifications Teaching of tax law drafting Role of universities in improving development of tax expertise The changing relationship between tax administrations and taxpayers Enactment of taxpayers'rights Taxpayers' rights and human rights Legal sanctions Avenues of appeal for taxpayers Reimbursement of taxpayer expenses Overall relationship between tax administration, taxpayers and advisors Tax administration measures to provide greater certainty Measures to protect the corporate tax base Scope for retroactive tax legislation Social prestige of tax officials Ofßcial measures of tax administration success Major players in tax policy Formal procedure for changes of tax law Relative influence of political parties, lobbying groups and public officials Influence of ministries in use of tax for social engineering Role of other interest groups Adoption of measures against long-term interests or in confiict with culture Role of international and regional organizations Role of government in influencing organizations Special!zed bodies established by government Tax policy in the global economy Competitive considerations in tax policy Moves to "smart tax competition" Tax arrangements and inward and outward Investment Tax treaties and inward Investment Tax incentives, tax sparing arrangements and inward investment 111 viii

6 Measures to reduce cross-border aggressive tax planning Profit shifting and base erosion Barriers to inward Investment Transition time for reforms Good governance Tax administration access to Information Next steps in improved international Cooperation Other actions to strengthen ties Strengthening linkage between good tax compliance and good corporate governance 116 Chapter 3: Austria 119 Alexander Zeiler 3.1. Trends in tax policy as from Taxation of individuals New taxation scheme for capital gains Taxes on capital Corporate taxation Excises Other taxes Main drivers of tax reforms since Main drivers of tax reforms since Data on tax expenditures and reforms Drafting and reviewing tax legislation and regulations Formal framework "Real" tax legislation procedure Secondary Instruments Verordnung (regulation) Richtlinien and Erlässe (directives) Review procedures Building up tax expertise Formal training Qualifications Tax Consultant Certified accountants 130 ix

7 3.5. The changing relationship between tax administrations and taxpayers Avenue of appeal Complaint to the Federal Tax Court Appeal to the Supreme Administrative Court The role of the Constitutional Court Legal sanctions Reimbursement of taxpayer expenses in court proceedings Measures for legal certainty Retroactive tax legislation Major players in tax policy Political parties Government Administration Interest groups International organizations Tax policy in the global economy Domestic tax law Corporations Individuais Austrian treaty policy Anti-avoidance rules Good governance Tax transparency International Cooperation Corporate governance 147 Chapter 4: Brazil 149 Luis Eduardo Schoueri and Mateus Calicchio Barbosa 4.1. Trends in tax policy as from Introduction Individual income tax Corporate income tax General developments in the corporate income tax System Calculating the tax base Simplified tax base 153 x

8 Value added taxation and harmful tax competition Alternative to social security contribution on payroll Environmental taxes Main drivers of tax reforms since Drafting and reviewing tax legislation and regulations Building up tax expertise Tax advisors Tax authorities Training on drafting of tax law The changing relationship between tax administrations and taxpayers The Constitution, taxpayers'and human rights The administrative review procedure Reimbursement of expenses in court proceedings Advance rulings and certainty to taxpayers Protecting the corporate tax base: Brazilian thin cap rules and the general anti-avoidance rule Major players in tax policy Society and lobbying Brazil and the OECD Tax policy in the global economy Controlled foreign Company rules and Brazilian investments abroad Brazilian transfer pricing rules Tax treaties and tax sparing Good governance 186 Chapter 5: Canada 191 Kim Brooks 5.1. Trends in tax policy as from Introduction General trends Tax rates Personal income tax 192 xi

9 Corporate income tax Consumption taxes Capital taxes Tax incentives Personal income tax Corporate income tax Capital gains tax Other developments in domestic tax law Personal income tax Corporate income tax Developments in international taxation Environmental taxes Main drivers of tax reforms since Introduction - Political and economic background The role of governmental institutions Tax reform commissions Availability of data on tax expenditures Drafting and reviewing tax legislation and regulations Building up tax expertise The changing relationship between tax administrations and taxpayers The structure of the tax administration Taxpayers' rights Avenues of appeal Voluntary disclosures program Retroactive legislation Major players in tax policy The role of the courts in Canadian tax law The influence of foreign tax law developments in Canada The role of research organizations The role of professional associations and other interest groups Tax policy in the global economy Good governance 215 xii

10 Chapter 6: China 219 Kang Jia and Na Li 6.1. Trends in tax policy as from Introduction Personal income taxes Corporate income taxes Other business taxes Value added tax VAT reform in VAT Pilot Programme Excises Recurrent taxes on capital Resident property tax pilot projects in Shanghai and Chongqing Compulsory social security contributions paid to government Environmental taxes Other taxes Resource tax reform Abolition of agriculture tax Main drivers of tax reforms since Drafting and reviewing tax legislation and regulations Building up tax expertise The changing relationship between tax administrations and taxpayers Rights of taxpayers Legal sanctions Tax review and litigation Relationship between tax authority and taxpayers Major measures to protect the corporate tax base Social prestige of tax officials Major players in tax policy Tax policy in the global economy Good governance 242 xiii

11 Chapter 7: Colombia 245 Natalia Quinones Trends in tax policy as from Introduction 245 Personal income taxes 245 Corporate income taxes 246 Other business taxes 247 Value added tax 248 Main drivers of tax reforms since Main drivers and tax reform objectives 249 Tax reform commissions 251 Independent research Institutes and universities 252 Measuring tax expenditures 252 Assessment of the impact of tax reforms 253 Drafting and reviewing tax legislation and regulations 253 Drafting of tax law provisions 253 Outside stakeholders and tax legislation 254 Drafting of secondary Instruments of tax policy 255 Verißcation of constitutional consistency 256 Building up tax expertise 256 The changing relationship between tax administrations and taxpayers 257 Taxpayers' rights 257 Taxpayers' rights and human rights 258 Legal sanctions 259 Appeals and tax procedure 259 The taxpayer's expenses in court proceedings 260 Relationship between tax administration, taxpayers and their advisors 261 Tax certainty 261 Protection of the corporate tax base 262 Retroactivity in tax measures 263 Tax officials 264 Measures of the success of tax administrations 265 Major players in tax policy 265 Procedure for changes of tax law 265 xiv

12 Influenae of political parties, lobbying groups, public officials in the Ministry of Finance and in other ministries Academia, media, trade unions, associations of employers or other interest groups Measures that conflict with culture or habits International organizations Tax policy in the global economy Competition considerations Outward Investment and inward investment Tax incentives and tax sparing Cross-border aggressive tax planning Tax-related barriers to inward investment Good governance Information and transparency initiatives Main barriers to the effective use of Information Main risks posed by better transparency The next steps in improved international Cooperation? Other actions to strengthen ties between countries 274 Chapter8: Croatia 275 Hrvoje Arbutina, Tereza Rogic Lugaric, Sonja Cindori, Jasna Bogovac, Nevia dein Sain and Ivan Reiner 8.1. Trends in tax policy as from Introduction Personal income tax Corporate income tax Value added tax Excises Recurrent taxes on capital Non-recurrent taxes on capital Compulsory social security contributions paid to government Main drivers of tax reforms since Drafting and reviewing tax legislation and regulations Building up tax expertise 284 xv

13 8.5. The changing relationship between tax administrations and taxpayers Major players in tax policy Tax policy in the global economy Good governance 294 Chapter 9: Czech Republic 299 D. Nerudovä and L. Moravec 9.1. Trends in tax policy as from Introduction Personal income tax Corporate income tax Value added tax Excises Recurrent taxes on capital Non-recurrent taxes on capital Compulsory social security contributions paid to government Environmental taxes Other taxes Main drivers of tax reforms since Main drivers of tax reforms since The role of independent advisory bodies and research Institutes Data on the impact of the tax reforms Drafting and reviewing tax legislation and regulations The drafting of tax law provisions Consultation on draft legislation The drafting of secondary Instruments Verifying compliance with higher-ranking law Building up tax expertise The changing relationship between tax administrations and taxpayers Taxpayers' rights 314 xvi

14 Avenues of appeal The relationship between tax administration, taxpayers and their advisors Measures protecting the corporate tax base Retroactivity in tax legislation The social prestige of tax officers Major players in tax policy The procedure for changes of tax law The influence on tax policy formulation of political parties, lobbying groups, other ministries, academia and trade unions The role of international and regional organizations in influencing tax policy Tax policy in the global economy Tax competition and its impact on tax policy formulation The role of domestic law measures and tax treaties in attracting inward Investment Measures against cross-border aggressive tax planning Good governance Access of the tax administration to Information The next Steps in international Cooperation Tax compliance and good corporate governance 328 Chapter 10: Germany 329 Gert Müller-Gatermann Introduction Trends in tax policy as from Personal income tax Introduction Discussion of a flat tax Discussion of dual income tax Broadening the tax base Taxation of retirement income Change in the rate structure From synthetic income tax to scheduler taxation From Imputation to the classical system 336 xvii

15 Taxation of private capital gains Taxable entity Corporate income tax Broadening of the tax base Discussion of a uniform business tax Changes in rate or structure Adaptation to international accounting Standards Taxation of foreign income Option for alternative (simplified) tax base Trade tax VAT Introduction Tax rate changes Measures to combat fraud Adaptation to Community law Electronic communication Taxes on capital Inheritance and gift tax Real property transfer tax Motor vehicle tax Excises Environmental taxes Social security contributions and bank levy Main drivers of tax reforms since Drafting and reviewing tax legislation and regulations Building up tax expertise The changing relationship between tax administrations and taxpayers Major players in tax policy Tax policy in the global economy Good governance 363 xviii

16 Chapter 11: Italy 365 Alessandro Turina Trends in tax policy as from Personal income tax Corporate income tax Other business taxes VAT Excises Recurrent taxes on capital Non-recurrent taxes on capital Social security contributions Environmental taxes Main drivers of tax reforms since Objectives of tax reforms Role of tax reform commissions and academia Monitoring tax expenditures Drafting and reviewing tax legislation and regulations Building up tax expertise The changing relationship between tax administrations and taxpayers Taxpayer's rights Legal sanctions Avenues of appeal Judicial fora for tax disputes Taxpayer's expenses in court proceedings Promoting cooperative relationship between tax administration and large taxpayers Providing certainty for taxpayers Retroactivity of tax legislation Anti-abuse measures Measuring the Performance of the tax administration Major players in tax policy Tax policy in a global economy Competitiveness of the Italian tax system Measures against aggressive tax planning 401 xix

17 11.8. Good governance Exchange of Information Cooperation with other law enforcement agencies Italian tax treaty policy Tax and corporate governance issues 408 Chapter 12: Netherlands 411 Sigrid J.C. Hemels Trends in tax policy as from Personal income taxes Corporate income taxes Value added tax Excises Recurrent taxes on capital Non-recurrent taxes on capital Compulsory social security contributions paid to government Environmental taxes Main drivers of tax reforms since Drafting and reviewing tax legislation and regulations Building up tax expertise The changing relationship between tax administrations and taxpayers Major players in tax policy Tax policy in the global economy Good governance 429 Chapter 13: NewZealand 433 Adrian J. Sawyer and Andrew M.C. Smith Introduction Trends in tax policy as from Introduction 433 xx

18 Personal income taxes Corporate income taxes Value added tax (GST) Excises Environmental taxes Other taxes Main drivers of tax reforms since Main drivers of tax reforms since Government tax reform commissions Independent research Institutes Tax expenditure budget Assessment of tax reform Drafting and reviewing tax legislation and regulations Building up tax expertise The changing relationship between tax administrations and taxpayers Major players in tax policy Tax policy in the global economy Good governance Conclusion 458 Chapter 14: Norway 459 Frederik Zimmer, Anna B. Scapa Passalacqua and Lars A. Henie Trends in tax policy as from Personal income taxes The 1992 tax reform The 2006 tax reform Corporate income taxes Rate The 2004 tax reform Timing rule Exit taxation rules 463 xxi

19 Value added tax Excises Recurrent taxes on capital Non-recurrent taxes on capital Compulsory social security contributions paid to government Environmental taxes Other taxes Main drivers of tax reforms since Main drivers of tax reforms since General remarks Secure public revenue Achieve a fair tax system Redistribute wealth Achieve a better environment Promote employment throughout the entire country Provide a competitive tax system Achieve simplicity Transparency Dealing with external constraints Major tax reform commissions Influence of independent research Institutes and universities on reforms Tax expenditures budget Data available to assess the impact of tax reforms Drafting and reviewing tax legislation and regulations Drafting of tax law provisions The influence of outside stakeholders Drafting procedure for secondary Instruments Influence of secondary law in the design of tax policy Consistency of tax law proposals with higherranking law Building up tax expertise Formal training Professional qualifications Verification of qualifications 47g Drafting of tax law 47g Improvement possibilities by universities 479 xxii

20 14.5. The changing relationship between tax administrations and taxpayers Enactment of taxpayers' rights Connection between taxpayers' rights and human rights Legal sanctions Appeals procedures Reimbursement of expenses Overall relationship between tax administration, taxpayers and their advisors Measures to provide greater certainty to taxpayers Major tax measures to protect the corporate tax base Retroactive tax legislation Social prestige of tax ofhcials; corruption Measures of success of the tax administration Major players in tax policy Formal procedure for changes of tax law Relative influence on tax policy formulation Taxes used for social engineering purposes The role of academia and interest groups Membership in the EEA and other international organizations Specialized bodies to provide objective data Tax policy in the global economy Considerations of competition Policies regarding outward and inward Investments Measures to reduce aggressive cross-border planning Transition time for tax reforms Good govemance Access to Information Good tax compliance and good corporate governance 491 Chapter 15: Poland 493 Alicja Brodzka and Krzysztof Biernacki Trends in tax policy as from Personal income tax Corporate income tax Other business taxes Value added tax 496 xxiii

21 Excises Recurrent laxes on capital Non-recurrent laxes on capital Compulsory social security contributions paid to government 49^ Environmental laxes Other laxes Main drivers of tax reforms since Drafting and reviewing tax legislation and regulations Building up tax expertise The changing relationship between tax administrations and taxpayers Taxpayers' rights Legal sanctions and tax proceedings Measures to provide certainty to taxpayers and to protect the corporate tax base The relations between tax authorities, taxpayers and their advisors The social prestige of tax officials and the success measures of the tax administration Major players in tax policy Taxes and social engineering The role of interest groups and their influenae on tax policy decisions The role of international and regional organizations in influencing Poland's tax policy Tax policy in the global economy Competitive considerations in Poland's tax policy Poland's tax arrangements and tax incentives Measures to reduce cross-border aggressive tax planning Good governance The result of the G20 tax transparency initiative Future steps in international Cooperation Strengthening the link between good tax compliance and good corporate governance 523 xxiv

22 Chapter 16: Russia 527 Danil V. Vinnitskiy and Evgeniy Pustovalov Trends in tax policy as from Introduction Personal income taxes Corporate income tax Other business taxes Value added tax Excises Recurrent taxes on capital Non-recurrent taxes on capital Compulsory social security contributions paid to government Environmental taxes Other taxes Main drivers of tax reforms since General background Group of experts Coordination of tax reform Tax expenditures Information about the course of tax reform Drafting and reviewing tax legislation and regulations Legislative initiative Public discussions Secondary Instruments Doctrinal concepts The role of the domestic constitutional law and international treaties Building up tax expertise Professional training Attestation of the officials Federal educational Standards The role of Russian law universities The changing relationship between tax administrations and taxpayers Taxpayers' rights and practice Taxpayers' rights and human rights 540 xxv

23 Legal sanctions Right to appeal Right to compensatio:! The development of the relationship between tax administration, taxpayers and their Consultants Measures to provide greater certainty Measures to protect the corporate tax base Prohibition of retroactivity Social prestige and risks of corruption Ofßcial statistics Major players in tax policy Rules and procedures Major players The role of the Ministry of Finance Academia, media and business associations Principle of tax sovereignty International and global factors Efficiency monitoring Tax policy in the global economy Competitive considerations The concept of neutrality in tax policy Tax sparing arrangements Measures to reduce aggressive cross-border tax planning Tax-related barriers to inward Investment Tax reforms and transition periods Good governance Access to tax Information Good governance and the development of international Cooperation 551 Chapter 17: South Africa 553 Jennifer Roeleveld, Craig West and Riel Franzsen Trends in tax policy as from Introduction Personal income taxes Corporate income taxes Other business taxes 556 xxvi

24 Value added tax Excises Recurrent taxes on capital Non-recurrent taxes on capital Compulsory social security contributions paid to government Environmental taxes Other taxes Main drivers of tax reforms since Main drivers of tax reforms since Addressing the legacies of the past and the dictates of a constitutional State Reducing tax rates of personal and corporate income taxes Improved tax administration and international Cooperation Reducing the compliance bürden for small and medium-sized enterprises Curbing impermissible tax avoidance and regulating tax practitioners Sub-national taxation Regional tax issues Major tax reform commissions and their impact Independent research Institutes and universities' impact on tax reforms Tax expenditures analysis and the impact on tax reform Assessment of the impact of the tax reforms Drafting and reviewing tax legislation and regulations Drafting of tax law provisions Consultation and comment on draft legislation Drafting policy for secondary Instruments Influence of secondary law in the design of tax policy Testing consistency with constitutional law and international agreements Building up tax expertise Formal training for the tax profession Professional qualifications of tax practitioners Verihcation of the qualifications and continuing education of tax Professionals 569 xxvii

25 The drafting of tax legislation The changing relationship between tax administrations and taxpayers Taxpayers'rights and application Human rights Legal sanctions Objection and appeal Legal costs and awards The relationship between tax administration, taxpayers and their advisors Measures to provide greater legal certainty to taxpayers Protection of the corporate tax base Retroactive tax legislation Status of tax ofhcials Measuring the success of the revenue authority Major players in tax policy Process for legislative amendment Influenae on tax policy formulation by other parties Taxes and social engineering The role of academia, media, trade unions, associations of employers or other interest groups The role of international and regional organizations The influenae of government on the international debates Specialized bodies for objective data on public ßnances Tax policy in the global economy Tax competition perspectives Harmful tax competition versus "smart tax competition" Policy effects on outward Investment versus inward Investment Tax treaties and inward Investment Impact of tax incentives and tax sparing arrangements on inward investment Measures to reduce cross-border aggressive tax planning Base erosion and profit shifting 581 xxviii

26 Barriers to inward Investment Transitional rules for major reforms Good governance Access to Information Overcoming the main barriers to the effective use of Information The main risks posed by Information exchange Increased and effective Cooperation between tax administrations and third parties Improving international Cooperation The move from bilateral to multilateral treaties Supplementing exchange on request with automatic exchange of Information Moving from Cooperation to tax coordination Actions to strengthen ties between countries Selection of treaty partners Regional organizations Strengthening the linkage between good tax compliance and good corporate governance The corporate governance agenda Tax strategy and its impact on financial and reputation risk for corporations Compliance of multinational enterprises with the spirit and the letter of the law 585 Chapter 18: Spain 587 Domingo Jimenez-Valladolid de L'Hotellerie- Fallois, Cesar Martinez Sänchez and Felix Alberto Vega Borrego Trends in tax policy as from Personal income taxes Corporate income tax Other business taxes Value added tax Excises Recurrent taxes on capital Non-recurrent taxes on capital Compulsory social security contributions paid to government Environmental taxes 591 xxix

27 Other laxes Main drivers of tax reforms since Main drivers of tax reforms since Tax reform commissions Influence of independent research Institutes, universities and interest groups on the tax reforms Measuring tax expenditures Assessment of the impact of tax reforms Drafting and reviewing tax legislation and regulations Drafting of tax law provisions (Konsultation with outside stakeholders Drafting of secondary Instruments of tax policy Influence of secondary law in the design of tax policy Verifying the compliance of proposals with higher-ranking laws Building up tax expertise Training for tax Professionals Professional qualifications available Verification of the qualifications of Professionals working in the tax area Training for the drafting of tax law The role of universities in training tax Professionals The changing relationship between tax administrations and taxpayers Taxpayers' rights Taxpayers' rights and human rights Legal sanctions Appeals Reimbursement of taxpayer's expenses in court proceedings Relationship between tax administration, taxpayers and their advisors Measures to provide greater certainty to taxpayers Measures to protect the corporate tax base Retroactive tax legislation Social prestige of tax officials Official measures of the success of the tax administration 5Q6 xxx

28 18.6. Major players in tax policy Procedure for changes of tax law Influence of public officials in the Ministry of Finance and in other ministries Influence of interest groups Influence of international Organization^ Objective data on public finances and the impact of any tax reform Tax policy in the global economy Competitive considerations in tax policy Outward and inward Investment Tax incentives and tax sparing Measures against aggressive tax planning and base erosion and profit shifting Transition time in introducing new tax rules Good governance Exchange of Information and limits on the use of Information obtained Next steps in international Cooperation Other actions to strengthen ties between countries Strengthening the link between good tax compliance and good corporate governance 616 Chapter 19: Sweden 617 Björn Westberg Trends in tax policy as from Personal income taxes Corporate income tax Taxation of shipping Value added tax Excises Recurrent taxes on capital Non-recurrent taxes on capital Compulsory social security contributions paid to government Environmental taxes Other taxes Main drivers of tax reforms since xxxi

29 Main drivers of tax reforms since Independent research Institutes and universities Measuring tax expenditures Public evaluations Drafting and reviewing tax legislation and regulations Tax commissions Availability and circulation of government proposals Drafting of secondary instruments Legislation and the issue of binding and non-binding decrees Law Commission Building up tax expertise The changing relationship between tax administrations and taxpayers Taxpayers' rights Legal sanctions Appeal of assessments Reimbursement of costs to taxpayers Relationship between tax administration and taxpayers Tax rulings Protection of the corporate tax base Constitutional prohibition on retroactivity The social prestige of tax officials Major players in tax policy The Parliamentary Committee for Fiscal Affairs The role of the Minister of Finance Influence of NGOs Influence of public opinion International and regional Cooperation Independent expert studies Tax policy in the global economy Competitive considerations Tax incentives Measures to reduce aggressive tax planning The base erosion and profit shifting project Tax-related barrier to inward Investment Transitional periods for new legislation 642 xxxii

30 19.8. Good governance The G20 tax transparency initiative Bilateral or multilateral Conventions? Priorities in respect of treaty negotiations The importance of good tax compliance 644 Chapter20: United Kingdom 645 Christopher John Wales and Caroline Turnbull-Hall Trends in tax policy as front Introduction Personal income taxes Corporate income taxes Other business taxes Value added tax Excise duties Recurrent taxes on capital Non-recurrent taxes on capital Compulsory social security contributions paid to government Environmental taxes Other measures Main drivers of tax reforms since Main drivers of tax reforms since Tax reform commissions and their influence Influence of independent research institutes and universities on reforms The United Kingdom's tax expenditures budget Available data to assess the impact of tax reforms Drafting and reviewing tax legislation and regulations Drafting tax law Opportunities for outside stakeholders to comment on draft legislation The drafting procedura for secondary Instruments The influence of secondary law in the design of tax policy The process for verifying that the proposals are consistent with constitutional law, European law (if applicable), etc. 656 xxxiii

31 20.4. Building up tax expertise Formal training for new entrants to the tax profession Professional qualifications available to tax practitioners Verification of the qualifications of professional working in the tax area Drafting tax law as an academic subject The impact of universities on the drafting of tax Statute The changing relationship between tax administrations and taxpayers Taxpayers' rights in the United Kingdom The interaction of taxpayers' rights and human rights Legal sanctions for tax Avenues of appeal against decisions made by HMRC Procedure for the reimbursement of the taxpayer's expenses in court proceedings The overall relationship between tax administration, taxpayers and their advisors Measures implemented by HMRC to provide greater certainty to taxpayers Major measures to protect the corporate tax base Retroactive tax legislation The social prestige and pay of tax officials Official measures of the success of tax administrations Major players in tax policy The formal procedure for changes of tax law The influence on tax policy formulation of political parties, lobbying groups, etc The use of taxes for social change The role of academia, media, trade unions, associations of employers or other interest groups The adoption of measures which are seen as not being in the long-term interests of the United Kingdom The role of international and regional organizations in influencing tax policy The government's role in international debates Bodies established by government to provide objective data on public finances and the impact of any tax reform 673 xxxiv i

32 20.7. Tax policy in the global economy The importance of competitive considerations in influencing the United Kingdom's tax policy The United Kingdom and "smart tax competition" The balance between outward Investment and inward investment The importance of tax treaties in attracting inward investment The role of tax incentives and tax sparing arrangements in attracting inward investment UK measures to reduce cross-border aggressive tax planning The top three tax-related barriers to inward investment Transition time for business to adapt to new tax measures Good governance Unparalleled access to Information by tax administrations What are the next steps in improved international Cooperation? Other actions to strengthen ties between countries Strengthening the linkage between good tax compliance and good corporate governance 679 Part Three Chapter21: Burundi Thomas Dubut Introduction Trends of the recent Burundi tax reform Main drivers of the tax reform in Burundi Basic features of the tax reform in Burundi Direct taxation Indirect taxation Tax procedures Players in Burundi tax policy Players in the drafting process Funding of the global tax reform in Burundi Conclusion 690 XXXV

33 Chapter 22: Chile Felipe Yanez and Cristiän Gärate Introduction - The Chilean tax System Personal income taxes Corporate income taxes VAT Excises Recurrent taxes on capital Compulsory social security contributions paid to government Natural resources tax Conclusion 703 Chapter 23: Finland 705 Kristiina Äimä and Kenneth Hellsten Introduction Taxation of earned income Household credit Taxation of corporations and shareholders Capital gains on fixed assets Transfer pricing documentation Interest deduction limitation rules Tax incentives Additional deduction for research and development Research, development and innovation box 709 xxxvi

34 23.8. VAT Excises Recurrent taxes on capital Non-recurrent taxes on capital Other taxes 712 Chapter24: Greece 715 Katerina Pantazatou Introduction Personal income taxes Corporate income taxes VAT Excises Recurrent taxes on capital Non-recurrent taxes on capital Compulsory social security contributions paid to government Environmental taxes Conclusion 722 Chapter 25: Hungary 723 Borbäla Kolozs Introduction Description of Hungarian tax policy Personal income tax 726 xxxvii

35 25.3. Corporate income tax Chapter 26: Lithuania Ramünas Riazanskis and Maryte Somare Introduction Personal income taxes Corporate income taxes VAT Excise duties Wealth taxes and taxes on capital Social security contributions Environmental taxes 738 Chapter 27: Luxembourg 739 Anne Seibert and Katharina Schiffmann Introduction Personal income tax Final withholding tax on interest income (for resident and non-resident individuals) Special expat tax regime Fund manager's carried interest regime Crisis contribution Abolishment of net wealth tax for individuals Corporate income tax Common tax regime Decreasing tax rate and minimum income tax Abolishment of the capital duty Specific activity regimes Transfer pricing practice Intellectual property regime 744 xxxviii

36 27.3. Va'lue added tax Introduction E-books E-services and VAT Other taxes Environmental taxes Excises Social security contributions Inheritance tax and gift tax 746 Chapter28: Mexico 749 Daniel Fuentes Introduction Corporate tax amendments in the period from 2000 to Corporate tax amendments in the period from 2006 to Corporate tax amendments in the period from 2012 to date 754 Chapter29: Peru 757 Cecilia Delgado Ratto Introduction Personal income tax Corporate income tax Indirect taxes Taxes on capital Other taxes 760 xxxix

37 29.6. The changing relationship between tax administrations and taxpayers Tax policy in the global economy 761 Chapter30: Portugal 763 Miguel Cortez Pimentel The Portuguese tax System in Brief policy analysis ( ) Developments and ongoing tax reform Corporate income tax Personal income tax VAT and other taxes A note on tax (good) governance 772 Chapter 31: Romania 775 Ciprian Adrian Päun and Drago Päun Personal income tax Corporate income tax Value added tax Compulsory social security contributions paid to government Pension system in Romania 780 Chapter 32: Serbia 781 Svetislav V. Kostic Introduction Personal income taxes Corporate income taxes 784 xl

38 32.3. Value added tax Excises Recurrent taxes on capital Non-recurrent taxes on capital Compulsory social security contributions paid to government Conclusion 788 Chapter 33: Slovenia 789 Sabina Taskar Beloglavec and Lidija Hauptman Introduction Personal income taxes Corporate income taxes Other business taxes VAT Excises Recurrent taxes on capital Non-recurrent taxes on capital Compulsory social security contributions paid to government Environmental taxes Other taxes Conclusions 798 xli

39 Chapter34: Turkey 799 Leyla Ate Introduction Indirect tax reform Direct tax reform Tax incentives reform Tax administration reform Conclusion 805 List of Contributors 807 xlii