Tax

‘Less than 91 days’ alone can’t save you from tax

‘Less than 91 days’ alone can’t save you from tax Writer: Rajvir Khanna High net worth individuals and celebrities, who manage to bluff the UK tax department by not staying more than 90 days in the country, may need to pay millions now as a court of appeal decided against a similar British businessman who is based in Seychelles.

Under the existing norms a person is liable to British tax if he or she has spent more than 90 days in the country in a particular financial year.

France and Switzerland agreed on taxation deal

According to a statement from the Federal Department of Finance in Bern said." Switzerland and France have formally agreed on the interpretation of the renegotiated double taxation

agreement."

The finance ministry added that it "no longer considers that there is any impediment to the revised double taxation agreement being approved rapidly by parliament."

Swiss ministry also said that none of the information would be used in requests for administrative assistance. This comment was regarding a data leak from HSBC Private Bank in Geneva.

The statement further said "France has fulfilled a further condition by delivering a copy of the data stolen from HSBC in Geneva to the Swiss authorities."

Tax code errors may hit pensioners

Tax-codeMillions of incorrect tax code forwarded to taxpayers in the UK has left tax payers high and dry which could prove detrimental for the pensioners as the problem may go deep to any length. These ambiguity may result in people paying over £100 extra tax a month at a tough times of global slowdown.

HM Revenue and Customs, under going complete computerization, has been facing problems to identify the exact number of UK taxpayers who got the incorrect tax code.

Centre asks for timely payment of Taxes

Centre asks for timely payment of TaxesThe Central Government has asked the private sector companies to pay advance taxes on time so that the government is able to meet its target of Rs 4 lakh crore in revenues in this fiscal.

The Central Board of Direct Taxes (CBDT) in a meeting today with the Income Tax department officials discussed measures for timely collection and also asked them to try to bring in the remaining collections for the year by March.

Central Board of Direct Taxes implements efficient tax refund system

Central Board of Direct Taxes implements efficient tax refund systemThe Central Board of Direct Taxes (CBDT) announced the revivification of all high-value refunds issued during the current fiscal year. A more foolproof system would also be implemented for the refunds of taxes.

Earlier it was detected on January 12 by an officer in the Income-Tax Department, Mumbai that refunds were made without his or his superior's permission. An enquiry within the IT department found that user Ids and passwords of certain officers were used fraudulently for the purpose of refunds.

Centre offers 50% compensation to bear Sales Tax losses to states

The central government today decided to offer 50% of the total revenue loss arising due to the reduction in the Central Sales Tax (CST) as compensation to the states.

The Empowered Committee of State Finance Ministers was asked by the Finance Minister Pranab Mukherjee to design a package comprising 50% compensation from the centre and the other
50% burden to be shared by the states for the losses arising as a result of the cut in sales tax.

However, the Finance minister’s new proposal comes with a rider where States will be required to levy VAT on sugar and textiles. Presently none of the states have levied VAT on the products.

Italian tax amnesty nets 95 bn euros

Italian tax amnesty nets 95 bn eurosRome, Dec 30 - The Italian government's tax amnesty scheme has netted a record 95 billion euros from funds and assets held abroad, Economy Minister Giulio Tremonti has said.

The controversial three-month amnesty was due to expire Dec 15 but has been extended until the end of April, due to a late rush of applicants who were offered generous terms and anonymity.

"These numbers indicate an extraordinary success. They are a sign of the strength of our economy and of confidence in Italy," Tremonti said in a statement Tuesday.

Coastal security still a concern

income taxEven a year after the 26/11 terror attack in Mumbai, the city’s coastline is still vulnerable. The Customs department, which is involved in the country’s coastal surveillance, still does not have a foolproof plan for coastal security.

The lack of a comprehensive coastal security plan in the current scenario is evident from the minutes of the annual All India conference of chief commissioners and Directors General (of Customs and Central Excise) held recently. Hindustan Times has a copy of the minutes.

Tax refund now straight in your account

income taxIt could mean the end of certain income tax officials releasing your tax refund only after you’ve paid up.

From October 1, the I-T department is crediting tax refunds directly to the bank accounts of taxpayers.

The Central Board of Direct Taxes that governs the department has said refunds should be transferred directly from the department’s online system to taxpayers’ accounts. The idea is to reduce direct interaction between assessment officers and taxpayers.

Net tax collection increased marginally by 3.27% in April-June quarter

RefundNet tax collection in the country increased marginally by 3.27 percent during April-July period, largely led by high tax refunds. Direct tax collection stood at Rs 73,990 crore as compared to Rs 71,648 crore in the corresponding period last year, as per figures released by the Union Finance Ministry.

Total tax refund outgo stood at Rs 20,768 crore, indicating an increase of 53.36 percent during the period. The decision of revenue department to install nationwide computer network, having a capacity to process up to 200000 returns every day, helped to increase refunds.

GST unlikely to be implemented from April 2010

GST unlikely to be implemented from April 2010The unified goods and services tax (GST) is unlikely to come into force from April 1, 2010 - the deadline fixed by central government - due to stiff opposition by some Indian states. GST is aimed at integrating the tax structure in the country, by doing away with different levies and tax rates by states and the union. It will unify direct and indirect taxes, which would be levied at the point of sale instead of point of origin.

Rich Germans ask for a tax increase: 'We are not naive crackpots'

Rich Germans ask for a tax increase: 'We are not naive crackpots'Berlin - A group of 23 wealthy Germans caused a stir Tuesday by demanding that rich people should pay higher taxes to counter the economic crisis.

People with a combined wealth of more than 500,000 euros (674,000 dollars) should contribute an additional 5 per cent annually for the next two years, said members of the initiative started by 31-year-old company heir Bruno Haas.

Rich Germans ask for a tax increase: 'We are not naive crackpots'

Rich Germans ask for a tax increase: 'We are not naive crackpots'Berlin - A group of 23 wealthy Germans caused a stir Tuesday by demanding that rich people should pay higher taxes to counter the economic crisis.

People with a combined wealth of more than 500,000 euros (674,000 dollars) should contribute an additional 5 per cent annually for the next two years, said members of the initiative started by 31-year-old company heir Bruno Haas.

Almost half of all Malaysians guilty of tax evasion

Almost half of all Malaysians guilty of tax evasion Kuala Lumpur - At least 900,000 Malaysians are guilty of not paying their taxes, prompting the government to track down the evaders, a news report said Monday.

There were an estimated 2 million people with taxable earnings in the country, but only 1.1 million are currently paying, Deputy Finance Minister Kong Cho Ha told parliament.

Companies fared even worse, with only 104,000 corporations paying taxes on their profits, out of the 500,000 firms registered, Kong was quoted as saying by the official Bernama news agency.

SEZs get service tax boost

In order to increase the ambit of service tax exemption to special economic zones (SEZs), the Union government has allowed units and developers in SEZs to claim refund of tax paid irrespective of whether the services are consumed inside or outside the zones.

Earlier, only the service provider was eligible for tax exemption for services which were consumed within an SEZ by a developer or a unit.

Now, with this new notification, the revenue department has shifted the exemption from the service provider to the developer, and extended the scope of tax exemption on services provided inside or outside an SEZ unit.

Service providers can claim any Cenvat credit on any input or services that are used in providing services at an SEZ.

CM to hike excise duty on beer, IMFLs

A chilled mug of beer will cost you more this summer, what with the state government announcing a hike in excise duty on beer, Indian Made Foreign Liquor (IMFL) and other beverages with low alcohol content.

Chief Minister BS Yeddyurappa made this declaration during the two-day debate on the budget proposals in the legislative assembly on Friday.

He added that the maximum retail price (MRP) on these products would be raised, thus reducing the profit margins for all liquor joints.

Yeddyurappa added that the government hoped to earn Rs820 crore revenue by enhancing excise duty and that a notification in this regard will be issued soon. Revenue earned from this hike will be directed to fund budget programs.

No tax hike in the election year

The civic budget has crossed Rs3,000-cr mark for the first time

Citizens have been spared from paying higher taxes this year.

Standing committee chairman Shyam Deshpande on Friday presented a Rs3,027.41-crore budget for 2009-10, which is a little over Rs346 crore as proposed earlier by municipal commissioner Praveensingh Pardeshi.

This is the first time that the civic budget has crossed the Rs3,000 crore mark. In the budget tabled before the general body, a sum of Rs1,929.86 crore has been earmarked for development works.

Advance Tax Collection Declines

Advance Tax Collection DeclinesThe advance tax collection of the country declined over 22 per cent for the third quarter of the current financial year. Tax collection was Rs 54,900 crore in the same period last year and it now stands at Rs 42,600 crore. The decline in the advance tax collection indicates the grim situation following the economic slowdown which may further worsen in the coming times. Now, the growth rate in direct tax collections for the first nine months stands at 12%. Government has set a target to achieve the tax growth rate of 15 per cent with net tax collection of Rs 3,65,000 crore for the current financial year.

Corporate advance tax collection registers decline

Corporate advance tax collection registers declineCorporate advance tax collections in Mumbai give warning signals, indicating the tough situation ahead, following the global slowdown. The tax collection in Mumbai failed to meet its revenue target of 1.57 lakh crore for FY09 (April 2008-March 2009). Mumbai corporate tax collection contributes around 35-40% to the country's tax kitty. Tax collection has increased just 20% in the current financial year up to December, as compared to 60% in the same period last year.

Direct tax growth slows to 22.2%

Direct tax growth slows to 22.2%Direct tax growth declined to 22.2 per cent, following the global financial crisis. Government collected Rs 1,77,251 crore as direct taxes between April to November this fiscal. The collection was Rs 1,45,053 crore till November last year. Low economic activities impacted the state revenue significantly as companies are facing low demand amid tight monetary policy and global slow demand. Tax growth witnessed 45% increase earlier this year while 29.5% growth a month ago.




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