Tax (Non)-Compliance Research: A New Zealand Perspective
|
|
- Sibyl Amber Simmons
- 6 years ago
- Views:
Transcription
1 Tax (Non)-Compliance Research: A New Zealand Perspective Norman Gemmell Chair in Public Finance Victoria University of Wellington Cash & Hidden Economy International Revenue Conference Auckland, April
2 Introduction Question: What do we know (and not know!) about taxpayers compliance responses to changes in tax policy and compliance efforts? Three research areas: 1. Taxpayers responses to taxation 2. Taxpayers responses to audits 3. Lessons for tax gap measures
3 1. Taxpayers responses to taxation
4 Taxpayers responses to taxation An (Australian) illustration: Australian vehicle fringe benefit tax (FBT) applies to private kms. travelled using company-provided vehicle. Till 2011, tax rate applied to kms travelled at three different tax rates: lower tax rate if travel more (above 3 annual kms travelled thresholds) Some facts : (Henry Review (2009) data for ) Total of around 15,000 cars (reported for FBT) On average FBT payers say they travel 22,000 (private) kms/year. Some as low as 3,000 kms., some over 40,000 kms. Question: In absence of tax, what pattern of kms. travelled would we expect? Perhaps a Normal Distribution around the average (22,000kms)?
5 1,000 3,000 5,000 7,000 9,000 11,000 13,000 15,000 17,000 19,000 21,000 23,000 25,000 27,000 29,000 31,000 33,000 35,000 37,000 39,000 41,000 Behavioural responses: Australian Vehicle FBT Perhaps something like this? Number of cars 1, Number of vehicles by kilometers travelled Total no. of cars 15,000 Number of cars 1, Annualised distance travelled in the FBT year (km)
6 1,000 3,000 5,000 7,000 9,000 11,000 13,000 15,000 17,000 19,000 21,000 23,000 25,000 27,000 29,000 31,000 33,000 35,000 37,000 39,000 Actually observe this Three thresholds: Number of cars 2,500 Number of vehicles by kilometers travelled Total no. of cars 15,000 25k Number of cars 2,500 2,000 15k 40k 2,000 1,500 1,500 1,000 1, Annualised distance travelled in the FBT year (km) Lesson: Our ability to enforce compliance depends on tax policy design
7 Measuring taxpayers response elasticities Economic researchers measure responses formally by the: elasticity of taxable income (ETI) = percentage change in taxable income in response to a 1% change in the net-of-tax rate (1 t) e.g. if top income tax rate: t = 0.5 then (1 t) = 0.5 At t = 0.5: ETI = 1 implies: a 10% decrease in t, increases taxable income by 10% [t: 0.50 to 0.45 ; (1- t): 0.50 to 0.55] ETI = 0.5 implies: a 10% decrease in t, increases taxable income by 5% ETI values are specific to each tax structure - depend on policy settings, legal regime, compliance effort etc. International estimates of ETI 0.1 to >1.0. Generally around What about New Zealand s ETI values?
8 Measuring NZ income tax responses NZ income tax: top rate raised in 2001 from 33% to 39% for incomes > $60k ( 10% fall in (1 t): 67% to 61%) Introduction of 39% rate: Estimate ETIs for top income decile & percentile ETIs are higher in the short-run (95% confidence interval in brackets)
9 Measuring NZ income tax responses NZ income tax: top rate raised in 2001 from 33% to 39% for incomes > $60k ( 10% fall in (1 t): 67% to 61%) Introduction of 39% rate: Estimate ETIs for top income decile & percentile ETIs are higher in the short-run Recent ETI regression estimates: Average across all taxpayers 0.68 Taxpayers with non-w&s income 0.51 Taxpayers without non-w&s income 0.19 Taxpayers with non-w&s income: All taxable income 0.22 Non-W&S income 2.84
10 20,000 23,000 26,000 29,000 32,000 35,000 38,000 41,000 44,000 47,000 50,000 53,000 56,000 59,000 62,000 65,000 68,000 71,000 74,000 77,000 80,000 83,000 86,000 89,000 92,000 95,000 98, , , , , , , , , , , , , , , , , ,000 Measuring NZ income tax responses Other evidence of responses to tax rate/threshold changes: Spikes in the income distribution Aggregate taxable income ($m) 1,600 1,400 1,200 1, Taxable Income Band ($)
11 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 $55,000 $60,000 $65,000 $70,000 $75,000 $80,000 $85,000 $90,000 $95,000 $100,000 $105,000 $110,000 $115,000 $120,000 $125,000 $130,000 $135,000 $140,000 $145,000 $150,000 Measuring NZ income tax responses Other evidence of responses to tax rate/threshold changes: Spikes in the income distribution Total taxable income ($m) 2,500 2, , , taxable income band
12 Measuring NZ income tax responses Other evidence of responses to 2001 top rate change: The growth rate of top incomes & trusts after 2001 (Tax Working Group, 2009) Trustee income rises faster after 39% tax rate applies to beneficiary income (33% for trustees)
13 Measuring NZ income tax responses Other evidence of responses to 2001 top rate change: The growth rate of top incomes & trusts after 2001 (Tax Working Group, 2009)
14 2. Taxpayers responses to audits
15 Taxpayers responses to audits Audits are designed to raise more revenue! Well-targeted audits should do just that! But with random audits? more compliant taxpayers likely to be audited When audits reach a verdict of compliant, how do those taxpayers respond after the audit? What if: The audit fails to find avoidance/evasion? The audit is only partially successful identifies just some evasion? The audit process & the extent of audit success conveys information to compliant and non-compliant taxpayers Examine evidence from UK self-assessment income tax audits
16 Taxpayers responses to audits We expect different reactions to audits depending on: whether audit verdict is compliant or non-compliant random audits are conducted with/without replacement Gemmell & Ratto (2012): Examined: effect of random audits in 2000 on before/after declared incomes [ to ] Compare audited treatment group with control group of non-audited. Examine medium & small businesses, and personal taxpayers Estimate preventive yield : additional revenue (+ or -) resulting from audit.
17 Taxpayers responses to audits We expect different reactions to audits depending on: whether audit verdict is compliant or non-compliant random audits are conducted with/without replacement
18 Taxpayers responses to audits
19 Taxpayers responses to audits
20 3. Lessons for tax gap measures
21 Tax gap measures Tax gap measures capture differences between tax paid and theoretical tax liability. G = T * T = t(b * B) where B * (B) is the theoretical (observed) tax base; T = tax revenue B = qb * where q is the fraction declared for tax [(1 q) is hidden ] effective tax rate T = tqb * and G = t(1 q)b * Conventional tax gap measures based on answering question: If q is increased to 1, how much missing revenue would be raised? But crucially assumes B * remains unchanged by changes in q
22 Tobacco Excise Example 1 $3 Sales $3 million Tax Revenue $1 million ½ million $2 Missing Tax Revenue $ ½ million Tax gap $½ million 33% (0.5/1.5). But: Many cigarettes purchased illegally at $2 will no longer be bought when successful compliance effort pushes up the price to $3. i.e. Anyone who values cigarettes between $2 and $3 will smoke less If smuggled cigarette sales cut in half when extra $1 tax applied to all (& formerly legal cigarettes unaffected): True tax gap = $250,000. i.e. only half of conventional tax gap depends on which taxpayers respond to changes in compliance effort.
23 Tax gap measures Observed/declared tax D (when q = 0.5); Total tax C (= H )
24 Tax gap measures Tax (base) gap = G (= HF) ; declared base = q 1 B * ; hidden base = (1 - q 1 )B *
25 Tax gap measures A higher effective tax rate (due to higher q) reduces the tax base from H to E. Raising q reduces both tax gap measures to zero (at H or E) but quite different revenues
26 Tax gap measures With a sufficiently large response, the tax base may be lower when q = 1 (E below F)
27 Tax gap measures A form of ETI C E = change in tax base in response to a change in the compliance rate
28 Amending conventional tax gap measures Where does this leave us? Are taxpayer responses to changes in q like their responses to changes in t? Evidence from audit responses etc. may help If so, ETI estimates &/or observed audit responses may give some clues to the potential loss of total tax base when full compliance achieved. Conventional tax gap: compliance ETI = zero. Surely this is wrong? For some taxes this clearly not true: smuggled goods (tobacco, alcohol), corporate tax? Corporate tax: do some governments turn a blind eye to tax avoidance (e.g. profit-shifting) because otherwise the total tax base would be lower?
29 Conclusions 1. Research has now identified a variety of taxpayer behavioural responses to tax policy (e.g. tax rates) and compliance enforcement 2. Compliance enforcement, not just tax policy, should take these into account 3. The consequences of these behavioural responses can be quite different depending on: Are they real (changed economic activity) or apparent ( rearranged activity)? Is avoided tax paid under a different (lower rate) tax? 4. Measuring tax gaps: finding hidden economic activity may reduce total economic activity (as well as the hidden share)
30 Questions?
Estimating the Distortionary Costs of Income Taxation in New Zealand
Estimating the Distortionary Costs of Income Taxation in New Zealand Background paper for Session 5 of the Victoria University of Wellington Tax Working Group October 2009 Prepared by the New Zealand Treasury
More informationTaxes and Subsidies. Government Intervention
Taxes and Subsidies Government Intervention Link these words in a sentence Demerit goods Consumed Externalities Social Intervention Examples Aim Taxation In this lesson we will Discuss how governments
More information0-14, % 14,001-48, % 48,001-70,000 30% Over 70,000 33%
TAX FACTS 2015 Income Tax s INDIVIDUALS Income 0-14,000 10.5% 14,001-48,000 17.5% 48,001-70,000 30% Over 70,000 33% COMPANIES Companies (including branches or permanent establishments of non-resident companies
More informationThe Elasticity of Taxable Income in New Zealand
Department of Economics Working Paper Series The Elasticity of Taxable Income in New Zealand Iris Claus, John Creedy and Josh Teng July 2010 Research Paper Number 1104 ISSN: 0819 2642 ISBN: 978 0 7340
More informationNovated Leasing for Employers and Employees. Boost Salary Packaging
Novated Leasing for Employers and Employees What is a novated lease? To attract and retain the best people there are many factors in an employee s choice of employer but none more important than the salary
More informationExaminer s report F6 Taxation (LSO) June 2013
Examiner s report F6 Taxation (LSO) June 2013 General Comments The examination consisted of five compulsory questions. Question 1 for 30 marks and question 2 for 25 marks. The three further questions carried
More informationFiscal Drag and Trans-Tasman Income Differentials
Fiscal Drag and Trans-Tasman Differentials Patrick Nolan 1 New Zealand Institute of Economic Research In New Zealand since 1 April 1998 the lower and middle personal income tax rates and thresholds have
More informationTax Rates Tables REVISED VERSION. September 2017
Tax Rates Tables 2017-18 REVISED VERSION September 2017 Individual income tax rates Residents 2016-17 Taxable income Marginal rate Tax on this income $0 $18,200 Nil Nil $18,201 $37,000 19% 19c for each
More informationGST, FBT and Tax Guidelines for Churches
GST, FBT and Tax Guidelines for Churches An overview of some New Zealand taxation provisions, as applying to registered Charities and Churches August 2017 Tax/Topics/ICB GST FBT & Gen Tax guidelines August
More informationTax basics. Tax basics for business operators. The basics:
Main topics - Tax basics - How tax works for different business structures - Summary of business taxes and payments - Claiming deductions for business expenses - Why keep good business records? - Contacts
More information2009 Minnesota Tax Incidence Study
2009 Minnesota Tax Incidence Study (Using November 2008 Forecast) An analysis of Minnesota s household and business taxes. March 2009 For document links go to: Table of Contents 2009 Minnesota Tax Incidence
More informationFederal Budget
Federal Budget 2011-12 The bottom line The Federal Government handed down its budget for 2011-12 Tuesday night with an estimated cash deficit of $22.6 billion to be followed by an estimated cash surplus
More informationTax and fairness. Background Paper for Session 2 of the Tax Working Group
Tax and fairness Background Paper for Session 2 of the Tax Working Group This paper contains advice that has been prepared by the Tax Working Group Secretariat for consideration by the Tax Working Group.
More informationA Clear Direction Financial Planning Level 19, 10 Eagle Street, Brisbane QLD 4000 (07) ABN:
A Clear Direction Financial Planning Level 19, 10 Eagle Street, Brisbane QLD 4000 scottk@acleardirection.com.au (07) 3379 6068 ABN: 85 147 572 870 The budget has provided a number of significant changes
More informationThe Elasticity of Taxable Income in New Zealand
The Elasticity of Taxable Income in New Zealand Iris Claus, John Creedy and Josh Teng N EW ZEALAND T REASURY W ORKING P APER 12/03 A UGUST 2012 NZ TREASURY WORKING PAPER 12/03 The Elasticity of Taxable
More informationGlobal Employer Services tax summary. For the year ending 30 June 2009
Global Employer Services tax summary For the year ending 30 June 2009 November 2008 Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of
More informationUnderstanding and Measuring Tobacco Tax Avoidance and Evasion: A Methodological Guide. Hana Ross, PhD School of Economics University of Cape Town
Understanding and Measuring Tobacco Tax Avoidance and Evasion: A Methodological Guide Hana Ross, PhD School of Economics University of Cape Town Overview Motivation for developing the Guide What the Guide
More informationThe New Zealand tax system and how it compares internationally
The New Zealand tax system and how it compares internationally Prepared by Inland Revenue, October 2017 Contents An overview of tax revenue... 1 Personal income tax... 3 GST... 6 Company tax... 6 Progressivity
More information2007 Minnesota Tax Incidence Study
2007 Minnesota Tax Incidence Study (Using November 2006 Forecast) An analysis of Minnesota s household and business taxes. March 2007 2007 Minnesota Tax Incidence Study Analysis of Minnesota s household
More informationTAX INFORMATION BULLETIN VOLUME TWO, NO. 2 AUGUST 1990 CONTENTS. Living Alone Payments 3. Donations and School Fees Rebate 3
TAX INFORMATION BULLETIN VOLUME TWO, NO. 2 AUGUST 1990 BUDGET CHANGES CONTENTS Living Alone Payments 3 Donations and School Fees Rebate 3 Additional Bloodstock Expenses now Allowable 3 "Test Period" Motor
More informationPRACTICE EXAM ANSWER & MARKING GUIDE
PRACTICE EXAM ANSWER & MARKING GUIDE Certificate in Foundation Tax V1 2012 2012 The Tax Institute. These materials are copyright. Apart from any fair dealing for the purpose of private study, research,
More informationTAXABLE INCOME RESPONSES. Henrik Jacobsen Kleven London School of Economics. Lecture Notes for MSc Public Economics (EC426): Lent Term 2014
TAXABLE INCOME RESPONSES Henrik Jacobsen Kleven London School of Economics Lecture Notes for MSc Public Economics (EC426): Lent Term 2014 AGENDA The Elasticity of Taxable Income (ETI): concept and policy
More informationMeasuring Revenue-Maximising Elasticities of Taxable Income: Evidence for the US Income Tax
Measuring Revenue-Maximising Elasticities of Taxable Income: Evidence for the US Income Tax John Creedy and Norman Gemmell WORKING PAPER 02/2014 January 2014 Working Papers in Public Finance Chair in Public
More informationThe Australia Taxation reflects legislation in place at 1 November Exam questions will be based upon the tax year.
AUSTRALIA TAXATION CPA Program subject outline First edition A professional accountant is required to possess fundamental tax law knowledge and skills. Australia Taxation introduces fundamental concepts
More informationThe Elasticity of Taxable Income and the Tax Revenue Elasticity
Department of Economics Working Paper Series The Elasticity of Taxable Income and the Tax Revenue Elasticity John Creedy & Norman Gemmell October 2010 Research Paper Number 1110 ISSN: 0819 2642 ISBN: 978
More informationGOVERNOR S Supplemental Budget Tax Proposals
Tax Incidence Analysis Prepared by the Tax Research Division, Minnesota Department of Revenue REVISED May 11, 2013 GOVERNOR S Supplemental Budget Tax Proposals HF 677 (Lenczewski) and SF 552 (Skoe) As
More informationPN 02: Income tax allowances, National Insurance contributions, Child and Working Tax Credit rates and other rates
HM Revenue & Customs: PN 02: Income tax allowances, National Insurance contribution... Page 1 of 11 PN 02: Income tax allowances, National Insurance contributions, Child and Working Tax Credit rates 2007-08
More informationBest practices. Chapter V
103 Chapter V Best practices This chapter describes best practices for tobacco tax policy, emphasizing the public health impact of tobacco taxes while also recognizing the importance of the revenues generated
More informationThe tax implications of pay, salary sacrifice, KiwiSaver and PIEs
The tax implications of pay, salary sacrifice, KiwiSaver and PIEs RPRC Briefing Paper 06/2007 ------------------------------------------------------------------------------------------------------- Introduction
More informationNovated leases and FBT explained
September 2014 Novated leases and FBT explained Wrapping a car into a salary package is a very popular choice, and doing so as part of a salary sacrifice arrangement often r aises the topic of novated
More informationPOLICY AND PROCEDURE
POLICY AND PROCEDURE Policy Name: Section: Approved By: Motor Vehicles General E- Focus Last Reviewed: June 2012 SECTION 1 INTRODUCTION PURPOSE To advise staff on their rights, obligations and responsibilities
More informationCigarette smuggling and the financial damage for the EU
Cigarette smuggling and the financial damage for the EU State of play, possible solutions and emerging threats the perspective of the affected tobacco industry Stephen J S Payne September 17, 2012 Illicit
More informationAP Microeconomics Chapter 16 Outline
I. Learning objectives In this chapter students should learn: A. The main categories of government spending and the main sources of government revenue. B. The different philosophies regarding the distribution
More informationFringe Benefits Tax ATO Update for Intermediaries
Fringe Benefits Tax 2018 ATO Update for Intermediaries Presented by: Taras, Izzy and Chris, Australian Taxation Office / 18 October2018 Session overview What attracts our attention Tips for common errors
More informationHow does the Treasury s Long-Term Fiscal Model work, and what is our initial analysis showing?
How does the Treasury s Long-Term Fiscal Model work, and what is our initial analysis showing? Speech delivered by Girol Karacaoglu Chief Economist, the Treasury Affording O ur Future Conference 2012 Victoria
More informationDECEMBER 2015 BUSINESS NEWSLETTER
DECEMBER 2015 BUSINESS NEWSLETTER Example industries include; Exploration and Mining; Manufacturing; Education; Building and Construction; Offshore Oil and Gas Support Services; Retail and Hospitality;
More informationGuide to Self-Invested Personal Pensions
NOVEMBER 2017 Guide to Self-Invested Personal Pensions Putting you in control of your financial future 02 GUIDE TO SELF-INVESTED PERSONAL PENSIONS Welcome Putting you in control of your financial future
More informationTax and the sharing economy
Information Newsletter - Tax & Super March 2017 Tax and the sharing economy The concept of a sharing economy has been around for long enough now to have had a very real impact on how we transact with each
More informationLodgment rates and thresholds guide
Taxation and Superannuation Newsletter September 2017 Lodgment rates and thresholds guide 2017-18 Table of Contents To save you having to laboriously search for the right tax rate or relevant threshold,
More informationSelf-Invested Personal Pensions Putting you in control of your financial future
NOVEMBER 2017 Guide to Self-Invested Personal Pensions Putting you in control of your financial future 02 GUIDE TO SELF-INVESTED PERSONAL PENSIONS GUIDE TO SELF-INVESTED PERSONAL PENSIONS Contents 02 Welcome
More informationPractice Questions and Answers from Lesson I-8: Taxes. Practice Questions and Answers from Lesson I-8: Taxes
Practice Questions and Answers from Lesson I-8: Taxes The following questions practice these skills: Compute the effects of an excise tax on price, quantity, and tax revenue. Show how the tax burden is
More informationDFK AUSTRALIA NEW ZEALAND BUSINESS & TAXATION BULLETIN. keeping you informed autumn 2017 IN THIS ISSUE ATO & DATA MATCHING
DFK AUSTRALIA NEW ZEALAND BUSINESS & TAXATION BULLETIN IN THIS ISSUE ATO & Data Matching Tax Rate Changes for Temporary Working Holiday Makers GIC & SIC Rates Fringe Benefits Tax Fuel Tax Credits FEATURE
More informationMeasuring Indirect Tax Losses October 2007
Measuring Indirect Tax Losses - 2007 October 2007 Contents 1. Introduction 3 2. Estimating VAT Losses 4 Methodology 4 Results 5 MTIC 6 3. Estimating Excise Losses 7 Methodology 7 Alcohol 9 Tobacco 10 Hydrocarbon
More information2013 Omnibus Tax Bill
Tax Incidence Analysis Prepared by the Tax Research Division, Minnesota Department of Revenue June 24, 2013 2013 Omnibus Tax Bill Chapter 143 (H.F. 677 as enacted on May 23, 2013) The 2013 Omnibus Tax
More informationTAXES CHANGE BEHAVIOR
LESSON 7 TAXES CHANGE BEHAVIOR FOCUS: UNDERSTANDING ECONOMICS IN CIVICS AND GOVERNMENT COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY 81 LESSON 7 TAXES CHANGE BEHAVIOR INTRODUCTION Many people view taxes
More information2011 Minnesota Tax Incidence Study
2011 Minnesota Tax Incidence Study (Using February 2011 Forecast) An analysis of Minnesota s household and business taxes. March 2011 For document links go to: Table of Contents 2011 Minnesota Tax Incidence
More informationCASINO CONTROL ACT AMEND- MENTS TO THE GOODS AND SERVICES TAX ACT 1985
CASINO CONTROL ACT 1990 - AMEND- MENTS TO THE GOODS AND SERVICES TAX ACT 1985 SUMMARY This item explains the amendments contained in the Casino Control Act 1990 which amend the Goods and Services Tax Act
More informationI. Capital Gains Tax
I. Capital Gains Tax The date of disposal is assumed to be the date the contract was signed, i.e. August 2015. Cost base elements include: a) Acquisition costs: $100,000 incurred in March, 1987. b) Incidental
More informationMeasuring tax gaps 2013 edition. Tax gap estimates for
Measuring tax gaps 203 edition Tax gap estimates for 202 An Official Statistics release October 203 Contents Summary 6 Key findings 6 Definition, scope and measurement 7 Tax gap components: 202 8 Tax gap
More informationImpacts of Socio-Demographic Changes on the New Zealand Land Transport System
Impacts of Socio-Demographic Changes on the New Zealand Land Transport System Adolf Stroombergen, Infometrics Michael Bealing & Eilya Torshizian, NZIER Jacques Poot, Waikato University Presentation to:
More information` CHARTERED ACCOUNTANTS. Making Your Business Count
` CHARTERED ACCOUNTANTS Making Your Business Count 2016 Federal Budget Overview The Federal Budget for the coming year was handed down on Tuesday 3rd May 2016. With an election due to be held on 2 July
More informationPackaged Cars Remain Effective
Packaged Cars Remain Effective By Gary Fitton Remuneration Strategies Group On Tuesday, 16 July 2013, the Government issued an Announcement that it would be removing the FBT statutory formula method for
More informationModelling the distributional aspects of KiwiSaver: methodology and results
Modelling the distributional aspects of KiwiSaver: methodology and results RPRC PensionBriefing 2009-6 The taxpayer-funded subsidies to KiwiSaver are distributed to members based on the contributions made
More informationBusiness News June 2018
Business News June 2018 Federal Budget tax measures that may impact your business Small and medium sized businesses received a bit of attention from the Government in this year s 2018-19 Budget. Making
More informationIndividual Income Tax Gap
Individual Income Tax Gap Tax Year 1999 WARNING: While attempting to update this study, we discovered that its methodology was flawed. We no longer believe that the portions of the tax gap estimate derived
More informationExploring the Personal Income Tax System
www.pwc.com.au 19 November 2018 Exploring the Personal Income Tax System Paper Three Removal of the Tax-Free Threshold Exploring the Personal Income Tax System November 2018 Paper Three Removal of the
More informationTAXWISE. BUSINESS NEWS September Tax Time 2012 ATO Compliance Program
TAXWISE BUSINESS NEWS September 2012 IN THIS ISSUE Tax Time 2012 ATO Compliance Program; Loss Carry-Back for Small Business; Living-Away-From-Home Allowance Changes; Superannuation Changes; Anti-Avoidance
More informationTaxes and Commuting. David R. Agrawal, University of Kentucky William H. Hoyt, University of Kentucky. Nürnberg Research Seminar
Taxes and Commuting David R. Agrawal, University of Kentucky William H. Hoyt, University of Kentucky Nürnberg Research Seminar Research Question How do tax dierentials within a common labor market alter
More informationCONTENTS. Vol 30 No 3 April In summary
Vol 30 No 3 April 2018 CONTENTS 1 In summary 3 New legislation Order in Council CRS reportable jurisdictions amendment regulations 4 Binding rulings BR Pub 18/01-BR Pub 18/05: Income tax - Australian limited
More informationCIE Economics AS-level
CIE Economics AS-level Topic 3: Government Microeconomic Intervention b) Taxes (direct and indirect) Notes Direct Taxes Direct taxes are paid directly to the government from the tax payer. Examples include
More informationIndependent Auditor s Report To the Trustees of Foundation North Report on the consolidated performance report Opinion In our opinion, the accompanying consolidated performance report of Foundation North
More informationVIEWPOINT state tax notes
Multi-Tax Incidence Analysis In a Microsimulation Environment by Eric Cook Eric Cook began his career as a revenue estimator with Congress s Joint Committee on Taxation in 1983. He joined PwC in 1987,
More informationLabour s plan will make KiwiSaver compulsory for every employee aged 18 to 65 from 2014.
SAVINGS POLICY: QUESTIONS AND ANSWERS Universal KiwiSaver Why is Labour introducing universal KiwiSaver? We are heavily indebted as a country. Our private debt is now over $140 billion (70 per cent of
More informationMeasuring tax gaps 2017 edition Tax gap estimates for
Measuring tax gaps 2017 edition Tax gap estimates for 2015-16 An Official Statistics release 26 October 2017 Contents 3 Introduction 4 At a glance 6 1. Summary 24 2. VAT 32 3. Excise 34 3.1. Alcohol 38
More informationTaxWise. Business News February Focus on small business. What the ATO is seeing in the small business market. To do!
TaxWise Business News February 2019 Focus on small business What the ATO is seeing in the small business market On 2 November 2018, the Deputy Commissioner of Small Business, Deborah Jenkins, delivered
More informationContributions & tax relief
Spotlight on: In this Spotlight, we explain how employee pension contributions may receive tax relief. Inside you will find information on; how the tax relief works for each method some example calculations
More information2015 Tax Bills reported back. A pre-easter legislative rush brings some welcome amendments and clarifications to the RLWT and GST proposals
23 March 2016 Regular commentary from our experts on topical tax issues Issue 2 A pre-easter legislative rush brings some welcome amendments and clarifications to the RLWT and GST proposals 2015 Tax Bills
More informationFraud in the supply chain
www.pwc.co.uk Fraud in the supply chain July 2006 Loss of the right to claim input tax Kittel In Axel Kittel v Belgium (Joined cases C-439/04) and C-440/04), the CJEU held that where the recipient: knew
More informationTOPIC 10 TAXATION OF DIFFERENT BUSINESS STRUCTURES & ENTITIES COMPANY TAXATION. After studying the material for this week you should be able to:
TOPIC 10 TAXATION OF DIFFERENT BUSINESS STRUCTURES & ENTITIES COMPANY TAXATION LEARNING OBJECTIVES After studying the material for this week you should be able to: Define what a company is for tax purposes
More informationAm I my brother s keeper?
28 June 2016 Regular commentary from our experts on topical tax issues Issue 1 The triple release is a mix of the high-level, the detailed and the theoretical. The New Zealand foreign trust recommendations
More informationLaws 2018, Chapter 205 (H.F. 947, 1 st Engrossment) Vetoed Omnibus Tax Bill
Tax Incidence Analysis Prepared by the Tax Research Division, Minnesota Department of Revenue August 30, 2018 Laws 2018, Chapter 205 (H.F. 947, 1 st Engrossment) Vetoed Omnibus Tax Bill The bill, which
More informationBUDGET HIGHLIGHTS 2019 BUSINESS TAX CORPORATION TAX RATE FILM RELIEF
SHEEHAN QUINN HLB Sheehan Quinn Suite 7, The Courtyard Carmanhall Road Sandyford Dublin 18 Ireland T +353 1 291 52 65 F +353 1 291 52 67 E info@hlbsheehanquinn.com www.hlbsheehanquinn.com BUDGET HIGHLIGHTS
More information2 National tax systems: Structure and recent developments
2 National tax systems: Structure and recent developments United Kingdom Structure and development of tax revenues Table UK.1: Tax Revenue (% of GDP) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
More informationTHE INTERACTION BETWEEN THE GOODS AND SERVICES TAX AND THE FRINGE BENEFITS TAX
THE INTERACTION BETWEEN THE GOODS AND SERVICES TAX AND THE FRINGE BENEFITS TAX By James Leeken * The Fringe Benefits Tax legislation is relatively complicated partly due to the vast number of fringe benefits
More informationAverage Marginal Income Tax Rates in New Zealand,
Average Marginal Income Tax Rates in New Zealand, 1907-2009 Debasis Bandyopadhyay, Robert Barro, Jeremy Couchman, Norman Gemmell, Gordon Liao and Fiona McAlister WORKING PAPER 01/2012 July 2012 Working
More informationMotor Vehicle Deductions Guide
Motor Vehicle Deductions Guide For motor vehicles acquired on or after 1 April 2011 Introduction Contents There are a number of different treatments in operation to obtain income tax deductions for motor
More informationNovated Lease. Lease provider takes care of administration of the arrangement Provides figures to employer for payroll processing
What is a Novated Lease? Novated Lease Employee Employee enters into a 3-way written agreement with lease provider and employer Recieves benefit of reduced taxable income and pays costs exclusive of GST
More informationBUSINESS NEWS. Welcome to the June 2018 Edition Of our PBD Business Newsletter. I trust the following items are informative and interesting.
BUSINESS NEWS Welcome to the June 2018 Edition Of our PBD Business Newsletter I trust the following items are informative and interesting Regards, Pio De Corso ABN 26 645 374 624 15 Gorge Road, Paradise
More informationLEGAL UPDATE: 2014/15 BUDGET HIGHLIGHTS
LEGAL UPDATE: 2014/15 BUDGET HIGHLIGHTS Introduction In his fifth and final national budget speech under the current administration of President Jacob Zuma, Finance Minister Pravin Gordhan began by quoting
More information2013 Minnesota Tax Incidence Study
Revised April 24, 2013 to correct errors for taxes projected to 2015. Changes were made to each of the following: Executive Summary Chapter 1 Chapter 3 Tables 4-3, 4-4, and 4-5. Please discard earlier
More informationBudget 2010 tax changes at a glance
20 May 2010 Budget 2010 tax changes at a glance Rewards effort and helps families get ahead Attracts and retains skilled people in New Zealand Encourages savings and productive investment Makes the tax
More informationTAX SUMMARY 2018/2019. Lodgment and Payment dates. Companies and Superannuation Funds tax return (30 Jun year end) Lodgment date.
TAX SUMMARY 2018/2019 Lodgment and Payment dates Companies and Superannuation Funds payer 2018 tax return (30 Jun year end) Lodgment date Payment date All entities with one or more outstanding tax returns
More informationNEWSLETTER APRIL 2015
NEWSLETTER APRIL 2015 SERVICES WE OFFER: Accounting Auditing Tax planning Due diligence Planning and installation of information systems Management and financial advisory services Registration of trusts
More informationPart 5: Building up saving, and running nest eggs down
Part 5: Building up saving, and running nest eggs down Looking at the tax settings on savings and capitalare we there yet? Broad base, low rate and superannuation taxation Questions about whether tax is
More informationBWR Accountants & Advisers
BWR Accountants & Advisers June 2013 Newsletter Special points of interest: A large number of tax changes apply in the 2012/13 income year. A brief summary is provided in this newsletter. There may be
More informationGuide. for. Income Tax & other taxes for Individuals. Tax Thresholds, Tax Rates & Tax Rebates
Guide for Income Tax & other taxes for Individuals South Africa has a hybrid tax system i.e. residents are taxed on their world-wide income (residence-based system of taxation) and non-residents are taxed
More informationTaxWise Business News February 2019
TaxWise Business News February 2019 Focus on small business What the ATO is seeing in the small business market On 2 November 2018, the Deputy Commissioner of Small Business, Deborah Jenkins, delivered
More informationUNIVERSITY. Fringe Benefits Tax. Guide
UNIVERSITY Fringe Benefits Tax Guide 2015 FRINGE BENEFITS TAX GUIDE 1. Introduction.....3 2. General Information...3 3. Car Fringe Benefits 4 4. Meal Entertainment Fringe Benefits...9 5. Expense Payment
More informationNEW ZEALAND TRUSTS AND INTERNATIONAL TAX PLANNING
NEW ZEALAND TRUSTS AND INTERNATIONAL TAX PLANNING In the last decade, New Zealand has become an attractive option for the international financial planning community, specifically in regards to high-net
More informationFactors influencing the reliability of policy proposal costings. Technical note no. 01/2017 Date issued: 13 September 2017
Factors influencing the reliability of policy proposal costings Technical note no. 01/2017 Date issued: 13 September 2017 This note supersedes Technical note no. 01/2015 PBO technical notes PBO technical
More informationTaxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Bill
Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Bill Commentary on Supplementary Order Paper No. 167 to the Bill Hon Peter Dunne Minister of Revenue First published in December
More informationThe amount received by Blue Octopus will be treated in Australia as per its taxation law in the following way:
Answer-to-Question-_1_ Blue Octopus Pty Ltd ("Blue Octopus") is an Australian resident company and hence liable to tax on its worldwide income as per the Australia tax law. Deduction (general or specific)
More informationGot your car log book ready?
Client Information Newsletter - Tax & Super February 2016 Got your car log book ready? When claiming for work-related car expenses, many taxpayers miss out on maximising their claim due to inadequate record
More informationNotice of change of General Partner details Excluding NZ registered companies Limited Partnerships Act 2008
Page 1 of 9 Form version October2017 www.limitedpartnerships.govt.nz 0508 266 726 Post your completed form to: National Processing Centre, Private Bag 92061, Victoria Street West, Auckland 1142 Notice
More informationCrown Service Enterprise ( CSE ) Tax Policies. GST, FBT, PAYE and Withholding Tax
Crown Service Enterprise ( CSE ) Tax Policies GST, FBT, PAYE and Withholding Tax Last updated: 8 February 2018 Disclaimer: This document is intended only as a general guide, and should not be used or relied
More informationCompany tax return guide 2008
IR 4GU June 2008 Company tax return guide 2008 This guide is to help you complete your 2008 income tax, annual imputation and dividend withholding payment account returns. Complete and send us your IR
More informationModelling of UUK s proposed USS benefit changes
UUK Date: 12 December 2017 Prepared for: Mary Lambe - UUK Prepared by: Steven Leigh John Coulthard Modelling of UUK s proposed USS benefit changes Introduction This paper sets out the results of our initial
More informationWorld Conference on Health or Tobacco, Singapore. March 20-24, 2012
World Conference on Health or Tobacco, Singapore March 20-24, 2012 Symposium: Impact of Tobacco Pricing and Taxation: Economic Analysis Using the ITC Project Data Chair: Frank Chaloupka 1. Emmanuel Guindon:
More informationCommonwealth Budget Report
PERSONAL TAX RATES The income tax thresholds and tax rates for residents (excluding the Medicare levy) are: 2013-2014 Income year (current) 2014-17 Income years Taxable income Rate Taxable income Rate
More informationTax Incidence Analysis First & Second Omnibus Tax Bills
Tax Incidence Analysis Prepared by the Tax Research Division, Minnesota Department of Revenue June 18, 2014 2014 First & Second Omnibus Tax Bills Chapter 150 (H.F. 1777 as enacted on March 21, 2014) and
More information