All Posts By Robert B. Jackson

Why no consultation on threats to Malta’s tax system, asks PN

The Maltese tax system is under threat and the government appears to be doing very little to protect it, the Nationalist Party said in a statement expressing concern at the lack of consultation with stakeholders.

“Again, the opposition, business leaders, unions and stakeholders were not consulted on the government’s decision to cede to international institutions and lose its fiscal independence by accepting a decision on a rate common minimum tax for foreign companies, ”said Mario, spokesperson for PN Finance. said of Marco.

“We must have heard from the media,” he added, noting that the government’s failure to raise the issue in parliament suggested contempt for this institution.

The PN spokesperson was referring to reports that Malta would present proposals to protect its corporate tax system at the OECD later this month.

Malta attracts foreign investment by offering foreign companies a series of discounts and benefits that allow them to reduce their corporate tax rate to an effective tax rate of 5%.

This competitive advantage could, however, be eroded by a high-level agreement between more than 130 countries to establish a global minimum tax rate of at least 15 percent.

Malta was among the signatories to the deal, with Finance Minister Clyde Caruana having previously said it would have been left out of the negotiations if it had not accepted the deal.

Ireland and Estonia, which also use tax incentives to attract foreign investment, agreed to join the deal this week.

Details of the deal – and exceptions – are still being negotiated.

Sources said Malta timetables that the Maltese government is keen to propose that the minimum rate of 15 per cent only apply to companies with enormous turnover.

But no official details of Malta’s position have been released so far, prompting the PN opposition to worry about a lack of transparency.

In its statement, the PN said the two sides had worked together for decades to protect Malta’s tax system and financial services sector. But that job had now been called off, he said, the finance minister “having said there was no point in trying to oppose it.”

“In other words, our voice as a nation ended up being powerless,” the PN said.

He said he expects the government to be open about its negotiating position and explains what it has asked for Malta, what its reservations are and how it plans to minimize the impact of this tax on Malta. .

“We need to discuss these things as soon as possible, at the national level, to make sure we find a national problem that preserves our future,” the PN said.

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Estonia joins comprehensive income tax reform

The declaration being prepared at the OECD concerns large global companies and does not change the current tax regime for Estonian companies. As a next step, Estonia is now entering close negotiations with EU member states and the European Commission to protect Estonia’s interests in developing an EU directive implementing the agreement. of the OECD.

“The Estonian corporate tax system has been one of the cornerstones of the international competitiveness of the Estonian business environment, which must be firmly protected. As Estonia opposed the introduction of a global minimum tax, we conducted intense negotiations throughout the summer to achieve a situation where this global tax would affect Estonian entrepreneurs as little as possible. Following the successful negotiations, the minimum tax will not change anything for most Estonian entrepreneurs and will only apply to subsidiaries of large international groups, ”Prime Minister Kaja Kallas explained.

“At the same time, the taxation of digital giants has long been a problem. However, such a digital tax can only work if all countries have a similar approach towards tech giants, as digital services know no borders. The large digital business tax affects groups with a turnover of 20 billion dollars and therefore does not affect any business in Estonia, ”Kallas said.

The Prime Minister explained that the tax environment for large multinational companies is changing anyway, regardless of Estonia’s decisions. “We therefore adhere to the global tax agreement. By actively making proposals and vigorously defending our positions, we have the best opportunities to ensure that Estonia’s business environment and fiscal policy continue to work in the interests of a better future for all of us. . ”

Tomorrow, October 8, there will be a meeting of the 140 countries involved in the reform, with a view to approving the two-part tax package. The first pillar of the reform concerns the tax on group profits with a turnover of 20 billion, or so-called digital tax, which Estonia supports.

The second pillar of the reform concerns an overall minimum corporate income tax of at least 15 percent. The minimum tax would only apply to groups with a consolidated turnover of at least 750 million euros per year. The OECD wants to achieve political consensus tomorrow in favor of this proposal, and the countries joining the reform promise to develop and implement the necessary laws in 2023.

If the effective tax rate of a subsidiary operating in a country other than the head office of the group is less than 15 percent, the country of the head office has the right to impose itself the difference between the effective tax and the ‘minimum tax, which means that in the case of Estonia, these subsidiaries may be taxed by another country.

In order to protect its interests, Estonia has conducted intense negotiations to give local subsidiaries of international groups the longest possible tax deferral period, which would allow companies more flexibility in deciding their cash flow. throughout the business cycle, rather than forcing us to tax immediately profits. As a compromise, a period of four years was proposed.


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Recent changes in the highest personal income tax rates in Europe, 2021

In 2019, personal income tax revenue represented 24% of total tax revenue in OECD countries. Countries tax labor income in a variety of ways through payroll taxes, personal income taxes and, in some cases, surcharges.

Between 2018 and 2021, eight European OECD countries changed their top personal income tax rates. Of these eight countries, four have reduced their highest personal income tax rates while the other four have raised their highest rates.

The Czech Republic, Latvia and Lithuania have moved from flat-rate personal income taxes to progressive tax structures. Spain has increased its highest personal income tax rate. Sweden has removed a surcharge. A surcharge in Greece has been temporarily suspended. The Netherlands have slightly changed their personal income tax rates. Turkey has added a new upper personal income tax bracket.

Czech Republic

From 2021, the Czech Republic reintroduced progressive taxation with a maximum rate of 23% on income above 1 million Czech crowns (US $ 78,000). Previously, a flat tax of 15 percent applied.

Greece

Greece reduced the top personal income tax tax rate from 55% to 54% (44% income tax plus 10% solidarity surcharge) in 2020. In 2021, the solidarity surcharge has been suspended for all types of income, other than income from public sector employment and pensions. . The maximum rate applies to income over 40,000 € (45,610 USD).

Latvia

In 2018, Latvia moved from a flat-rate personal income tax to a progressive tax. Prior to this change, Latvia applied a flat tax of 23%. The new system has three separate tranches, at 20%, 23% and 31% (31.4% before 2021). The maximum rate applies to income over € 62,800 (US $ 71,608) in 2021.

Lithuania

In 2019, Lithuania moved from a fixed personal income tax of 15% to a progressive income tax initially with two brackets with rates of 20% and 27%. The current maximum rate is now 32%. The upper bracket applies to income over € 81,162 (US $ 92,545).

Netherlands

The progressive tax system in the Netherlands has gone from four brackets with a maximum personal income tax rate of 52% to three brackets with a maximum rate of 51.75% in 2019. The structure of the brackets has been further improved. amended in 2020, reducing the top personal income tax bracket. at 49.5%.

Spain

Spain has a fiscally decentralized system with personal income tax rates which are a combination of national and regional policies. Madrid has the lowest combined personal income tax rate in the country: a local tax rate of 21% plus the current national tax rate of 24.5% gives a combined rate of 45.5 %. The highest rate is 54 percent in the Valencian Community. In 2020, the national rate rose from 22.5 to 24.5, increasing rates across the country.

Sweden

Sweden removed its highest personal income tax rate in 2020, which added a 5% surtax on income above SEK 703,000 (US $ 76,372). Sweden levies a 20% tax rate on income over SEK 523,200 (US $ 56,839) as well as a variable municipal tax rate. The current average municipal rate is 32.85%.

Turkey

In 2020, Turkey introduced a new personal income tax rate of 40% that applies to income above TRY 650,000 (US $ 92,527). The new rate has been added to Turkey’s tax brackets of 15, 20, 27 and 35 percent.

European OECD countries with changes in the highest personal income tax rates between 2018 and 2021
Country 2018 tax rate 2019 tax rate 2020 tax rate 2021 tax rate
Czech Republic (CZ) 15% 15% 15% 23%
Greece (GR) 55% 55% 54% 44%
Latvia (LV) 31.4% 31.4% 31.4% 31%
Lithuania (LT) 15% 27% 32% 32%
Netherlands (NL) 52% 51.75% 49.5% 49.5%
Spain (ES) (Madrid) 43.5% 43.5% 43.5% 45.5%
Sweden (SE) 57.1% 57.2% 52.3% 52.9%
Turkey (TR) 35.8% 35.8% 40.8% 40.8%

Note: Income tax rates in Spain vary by region. In 2021, they range from 45.5% in Madrid to 54% in the Valencian Community.

Source: OCDE.Stat, “Table I.7. Highest personal income tax tax rates ”, 2020, https://stats.oecd.org/index.aspx?DataSetCode=TABLE_I7; KPMG, “Personal Income Tax Rate Table,” accessed 23 August 2021, https://home.kpmg/xx/en/home/services/tax/tax-tools-and-resources/tax- rates-online / individual-income-tax-rate-table.html.

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Ohio Municipal Income Tax COVID-19 Case Reviewed by Court of Appeals

There has been an ongoing fight in Ohio since the first stay-at-home order was issued: Should commuters pay income taxes to towns where they no longer physically worked?

The cities said yes. A conservative group called the Buckeye Institute said no. And now three judges from the Tenth Ohio District Court of Appeals will decide who is right.

Ohio law allows local governments like cities to tax people who live and work within their borders. The idea being that the people who work there should help pay for the services they use like sidewalks, roads, police and ambulances.

And cities are quite dependent on this type of tax.

For example, the six largest cities in Ohio (Cleveland, Columbus, Cincinnati, Akron, Toledo, and Dayton) derive about 88% of their income from income tax, a substantial portion of which comes from commuters.

“Cities across the state stand at risk of losing a huge amount of tax revenue,” Columbus City Attorney Zach Klein said in a statement when first filing the complaint in July 2020.

That’s why state lawmakers passed a bill during the shutdown that allowed municipalities to continue collecting taxes from these former commuters until the governor ends the state of emergency. from Ohio.

They then changed their minds and decided that Ohioans could get reimbursements for the days they worked from home in 2021 but not in 2020.

The big legal question

The Buckeye Institute was happy with the legislature’s decision on 2021, lawyer Jay Carson said. But he still believes thousands of Ohioans owe money for 2020.

“We believe that if the General Assembly is to help cities, there are many constitutional avenues they could take to do so,” Carson said.

But letting cities tax people who don’t live or work within their borders is not one of them. He argued that what lawmakers passed in March 2020 violated the state’s constitution and should be struck down by the court as a matter of principle.

“The city has to have some sort of jurisdictional hook,” Carson said.

A Franklin County judge disagreed.

“Put simply, the Ohio General Assembly has a long history of regulating municipal tax authority,” Justice Carl Aveni wrote in his April ruling.

And that’s the point made by Diane Menashe, lawyer for Columbus City auditor Megan Kilgore.

She argued that state lawmakers simply extended a concept existing in state law that allows employees to work away from the main workplace during certain periods while paying municipal income taxes.

“It was aimed at maintaining the status quo during a time of chaos,” Menashe said.

What is happening now?

The three judges who heard the case on Wednesday will have to render a decision, which could be made next week or next year.

“Usually it takes about three to six months,” Carson said. “But you never know.”

Both sides have made it clear that they will appeal if the decision goes wrong with them, which could mean this case is headed to the Ohio Supreme Court.

It is also not the only ongoing trial in the system. The Buckeye Institute appealed a similar case in Hamilton County. And he has two more pending in other parts of the state.

In other words, anyone looking for a refund of their 2020 municipal income taxes should be prepared to wait.

Anna Staver is a reporter for the USA TODAY Network Ohio Bureau, which serves Columbus Dispatch, Cincinnati Enquirer, Akron Beacon Journal, and 18 other affiliated news organizations across Ohio.


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What is Adjusted Gross Income (AGI) and Modified Adjusted Gross Income (MAGI)? – Councilor Forbes

Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but this does not affect the opinions or ratings of our editors.

Your Adjusted Gross Income (AGI) is what it sounds like your gross income minus some adjustments. You will most often come across this term when filing your taxes.

Your AGI plays a vital role in determining the tax credits or deductions you can claim on your tax return. Generally, if your AGI is too high, you will not be eligible for tax deductions such as the interest deduction on student loans, education credits, and certain itemized deductions. Your AGI also determines your tax bracket and how much you will pay in income taxes.

The Median AGI for the 2018 tax year (the latest data available) was $ 43,614, although this amount differs from person to person.

Here’s what you need to know about your AGI and why it’s so important.

What is Adjusted Gross Income (AGI)?

Adjusted Gross Income (AGI) is defined as your gross income less some adjustments. Your gross income only includes taxable income, such as:

  • Wages
  • Dividends
  • Business income Other types of income, such as capital gains and retirement distributions

To calculate your AGI, you may be able to subtract expenses from this gross income figure, including:

  • Educator’s expenses
  • Student loan interest
  • Support payments
  • Contributions to a retirement account

Your AGI will never be more than your total gross income reported on your tax return and, as a rule, it is less than your gross income. However, if you are not entitled to any deduction, your AGI may be equal to the total amount of your gross income. You can find your AGI on line 11 of your Form 1040.

How to calculate adjusted gross income (AGI)

To calculate your AGI, you must first start with your gross income, that is, any income you receive that is subject to tax. You will then need to subtract your adjustments from your total gross income to calculate your AGI.

Add up the gross taxable income:
  • Business income
  • Rental income
  • Salary, salary and tips
  • Unemployment benefits
  • State taxable refunds
  • Taxable social security
  • Dividends
  • Interest
  • Net sale of assets
  • IRA Distributions
  • Pensions and annuities
  • Other income, such as support payments received
Minus any adjustment:
  • Charitable donations
  • Educator’s expenses
  • Moving expenses
  • Deductible self-employment taxes
  • Health savings account deduction
  • Health insurance for self-employed workers
  • Alimony paid
  • Deduction of tuition and fees
  • Early penalty on savings withdrawals
  • Other adjustments
Total IGA Total gross income subject to tax less total adjustments

Adjusted gross income (AGI) vs modified adjusted gross income (MAGI): what’s the difference?

Modified adjusted gross income (MAGI) is slightly different from AGI. Unlike your AGI which is a number, your MAGI may differ depending on the tax credit or deduction for which you are claiming. But like the AGI, it can also determine any tax deductions or credits you may be entitled to on your tax return.

Typically, your MAGI is your adjusted AGI for certain expenses and income. Generally, your MAGI calculation is your AGI but adding the interest of the student loan. However, the IRS may calculate your MAGI differently based on the tax credit or deduction.

Here are some examples of how MAGI determines certain tax deductions and credits:

Premium tax credits: Your MAGI for premium tax credits and other tax savings for Health insurance market is your AGI plus any non-taxable foreign income, non-taxable Social Security benefits, and tax-exempt interest.

Child tax credit: Your MAGI for Child Tax Credit and Child Tax Credit Advance Payments is your AGI plus certain foreign income sources.

The American Opportunity Tax Credit: Your MAGI for American Opportunity Tax Credit is your AGI as well as certain foreign income sources.

For many taxpayers, their MAGI total is the same or very close to their AGI, since the adjustments some taxpayers make will only slightly change the final number.

Deductions and tax credits calculated using your AGI or MAGI

After determining your AGI or MAGI, you can choose which tax deductions or tax credits you can claim on your tax return. Here are the main tax credits and deductions depending on your AGI or MAGI.


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Elizabeth Warren probes the ‘corrupt’ link between the tax system and the private sector

Senator Elizabeth Warren (D-Massachusetts) and Representative Pramila Jayapal (D-Washington) ask for information on “corrupt schemes” to cover the profits of accounting firms involving the Treasury Department, the Internal Revenue Service (IRS) and other government agencies.

Lawmakers have sent letters to five major accounting firms asking them to detail their revolving door relationship with the government. The request comes after a September New York Times report expose how the staff and leaders of accounting firms like PwC take positions within the Treasury Department and other agencies to help draft tax codes that will benefit their old businesses – then return to those businesses with raises or promotions.

The New York Times discovered 35 examples of the practice over the past four presidential administrations, calling it “a remarkably effective behind-the-scenes system to promote [accounting firms’] interests in Washington. Even veterans of the accounting industry admit revolving doors are one of the main reasons the rich can benefit from and exploit the American tax code.

“The accounting giants abuse public trust and take advantage of the turn between public service and private profit”, Jayapal and Warren wrote in letters to Deloitte, PwC, EY, KPMG and RSM.

Lawmakers went on to quote the Law on the fight against corruption and public integrity. “Americans are fed up with these corrupt schemes,” they continued. “The decades-long scam in which major accounting firms abused the revolving door between government and the private sector to help their high net worth clients avoid paying their fair share of taxes demonstrates precisely why this legislation is necessary.”

Law on the fight against corruption and public integrity would draw stricter lines between the private and public sectors. It prohibits private companies from immediately hiring people who have just left a government post, and prohibits them from inducing executives to enter the public sector by offering them high salaries, or “golden parachutes”. The bill would also establish a separate government office to monitor ethics and corruption in government.

Lawmakers then asked companies to disclose whether, since 2001, any employees had held positions in the Treasury Department, the Internal Revenue Service (IRS), or elsewhere in government, and then returned to the company through the following. They also asked for details about this job, including the positions they have held, their clients, and their compensation over time.

In at least 16 of the cases where the New York Times Discovered in September, the former government officials were promoted to partners and rewarded with double their salaries when they returned to their private sector companies.

Lawmakers have drawn a direct line between revolving doors and the tax code. “Major accounting firms have spent decades unethically abusing the revolving door between government and the private sector to help high net worth clients avoid paying their fair share of taxes. It is corruption. Jayapal wrote on Twitter.

“The unethical revolving door of staff enters [the Treasury Department] and the biggest accounting firms must stop ”, said Warren. “Americans should be confident that our policies are working for them, not the wealthiest corporations.”

A report from the Institute on Taxation and Economic Policy released earlier this year found that 55 large companies, including FedEx, Nike and American Electric Power, paid $ 0 federal income tax in 2020. In fact, the effective tax rate was negative for many of these businesses, in part thanks to the 2017 tax cuts implemented by former President Donald Trump and the GOP.

Recent plans tax corporations by lawmakers like Warren have been met with coldness by congressional conservatives, however. Many of them – like Senator Kyrsten Sinema (D-Arizona) – have close relationships with deep-pocketed lobbyists. And despite the fact that big accounting firms like Deloitte and PwC have a revolving door relationship with the government, which skews tax policy in their favor, they are still spending hundreds of thousands or even millions of dollars on lobbying.



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The Nigerian Tax System: Through the Prism of a Futurist (2)

Nestoil

By Kriz David

The current crisis of the tax system in Nigeria is mainly driven by an inappropriate mix and design of tax policy. The Nigerian tax system is contrary to national prosperity, and this is the reason for extreme poverty in Nigeria.

Not only is the economy burdened with systemic corruption, but Nigeria’s tax system has also failed to spur economic development and inclusive prosperity due to low tax revenues.

The tax is a derivative of the economic activity carried out in a nation. A nation’s gross domestic product (GDP) includes personal consumption, business investment, government spending, and exports less imports.

The highest annual amount of value added tax (VAT) generated in Nigeria since 1994 is 1.53 trillion naira, which was in 2020. Does the amount of VAT generated annually really reflect taxable consumption in Nigeria?

And does the total tax revenue of 7 trillion naira in 2020 really reflect the economic activities carried out in Nigeria? These are the relevant questions which require sincere answers. This should be the immediate concern of state governors.

The low tax-to-GDP ratio of 6% theoretically suggests that Nigerians are not paying enough taxes. In reality, Nigerians are overburdened with taxes. Paying taxes shouldn’t be a burden.

Paying taxes becomes a burden when the combination of tax policies and the design of a nation are inappropriate. Taxation is a strategic fiscal tool for economic development and prosperity; it is not just a fundraising tool.

The two most expensive “products” in Nigeria today are education and health care. These are valuable goods that should not be bought and sold by individuals, but should be provided by the government from tax revenues.

Nigerians pay for their children’s education from preschool to college, as well as for health care. In addition, Nigerians pay for public goods such as safety and the construction of public roads in their place of residence.

Meanwhile, governments in developed countries are offering free education and health care to citizens for paying their taxes. Nigeria has failed embarrassingly in this regard because its tax policy and design are misguided.

The problem is not that Nigerians do not pay enough taxes; the real problem is that the wrong mix and design of tax policies cannot capture the right people in the tax net and pay the right tax.

While the rich get richer by not paying their fair share of taxes, the middle class has struggled and got poorer by paying for education, health care, safety and road construction or repair, after paying their fair share of taxes.

With the right mix and design of fiscal policies, citizens will pay the right taxes without being unduly burdened, and the government will have enough revenue to provide valuable goods and other social services.

One of the inappropriate tax policies and designs in Nigeria today is personal income tax. Globally, personal income tax offers the highest tax return among all types of taxes, but this is not the case in Nigeria, as the consolidated relief, the tax bracket income and tax rates are poorly designed.

For example, the highest personal income tax rate in Nigeria is 24% for the income bracket over N 3,200,000. This means that people earning N 3,500,000, N 35,000,000, N 350,000 N,000,000 and NN 3,500,000,000 per year are all taxed at the same tax rate.

Graduated tax rates are unfair and inequitable. This is the reason for the low tax yield of personal income tax and the great inequality of income in Nigeria.

A comparison between Nigeria (Africa’s largest economy) and South Africa (the second largest economy) amplifies the loophole in Nigeria’s income tax law. In 2018, South Africa, with 21 million registered taxpayers, generates more than N10.9 trillion in personal income tax for 6.4 million people, with the highest tax rate of 45%.

The richest 1% pay more taxes than the poorest 90% in South Africa. This is possible because the tax breaks, income bracket, and tax rates are fair and equitable. In 2018, the total tax revenue generated by state governments in Nigeria is less than N1 trillion. With a well-designed personal income tax law, state governments are expected to generate more than N15 trillion from 10 million people in Nigeria.

The line on who should collect value added tax is only a fragment of the problem. Instead of the legal struggle between South and North over VAT, the Nigerian Governors Forum should seek fiscal sustainability by rethinking the mix and design of Nigeria’s fiscal policy to achieve lasting prosperity for Nigerians.

Dr. Kriz David PhD, FCA, FCTI, is a futurist and tax expert. He is the author of “Tax Strategy” and “The Tax Manual”. He can be contacted at [email protected] or 08034033979.


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The local property tax system is evolving

PLUS TT THIS YEAR the government announced that the Irish local property tax (LPT) system will change from November.

About 1.4 million letters are being sent to landowners across the country explaining the changes, which will apply each year from 2022 to 2025.

The tax applies to all residential properties in the country, including vacant properties, properties that were not subject to the LPT since 2013, and properties not yet registered for the LPT.

More than half of homeowners won’t have any change to their LPT fees, but just over a third of people can expect an increase.

Here’s an overview of what you need to know about the new system and how to make sure you’re paying the right amount.

How do I know if my LPT bill will change?

Despite the changes to the system, the LPT tariff will not necessarily be different if you are already paying it. However, you should still check it out anyway.

The new system was designed to take into account the sharp rise in house prices in recent years, but the number of LPT tapes remains at 20, just like the old system.

What is different is that the boundaries of these bands have grown and widened.

For example, the valuation of houses in tranche 10 was previously between € 500,001 and € 550,000 but is now between € 875,001 and € 962,500.

This is what the groups now look like:

download (7)

As the last line indicates, the effective rate of the LPT will be 0.1029% (excluding those in bands 1 and 2) – down from the current rate of 0.18%.

For the majority of homeowners, the value on which their LPT is calculated will increase, but the percentage they pay will decrease.

One of the most significant changes to the system concerns homes built or purchased since 2013.

In the old system, those who bought a house for the first time or properties built since 2013 were not responsible. This is no longer the case, which means that 140,000 additional owners will be included for the next three years.

How do I value my property?

As a self-assessed tax, Revenue requires owners to self-assess their properties. To do this, you look at what value (s) your property (or your property) will be valued on November 1 of this year.

As noted above, the LPT structure is based on 20 appraisal brackets, so homeowners don’t have to appraise their home at a specific amount (unless your property costs more than $ 1.75 million). , in which case you do).

To help determine which category a property falls into, Revenue has created a rating tool on its website, which allows users to submit their Eircode to find their property and select it on a map. Users will then be assigned a price range for their address.

This tool is intended as a guide only. Revenue told homeowners that they should take into account the specifics of the property and assess whether its value falls within the strip in their area – for some, the value may actually be less than what the tool says.

Revenue has also published guidelines to help those looking for other sources of information they can use to assess the value of their property.

It’s also important to note that some land and buildings should be included in your assessment, not just the main residential building itself. This includes gardens, walkways, garages, and outdoor structures like grandma’s apartments or home offices.

However, only land up to an acre should be included: this means that farmers do not need to include adjacent farmland or animal shelters.

Can I benefit from an exemption?

Certain residential properties will not fall under the LPT regime.

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These include homes that are certified as having a significant level of pyrite or mica damage, residential properties owned by charities or public bodies for accommodation purposes, and properties built or adapted for people with disabilities.

A full list of properties eligible for the exemptions is available here (but note that references to properties built or purchased since 2013 will not apply).

Revenue said those who are eligible to apply for an exemption are still required to provide a self-assessed appraisal of their property, but must select the appropriate exemption category on their LPT return.

How do I tell Revenue the value of my property?

After you have assessed your property and verified if you qualify for an exemption, the next step is to submit your LPT income tax return. You must do this by November 7, 2021.

You can submit your return online at Revenue.ie (using myAccount, ROS, or the LPT online service), or by mail.

Even if you miss the deadline, you still need to submit an assessment and Revenue will pursue the estimated liability amount.

How to pay the LPT?

You can pay the fee online through the Revenue website, or by using a paper form if you prefer to do it in person (although your options are more limited for the latter). More details are available here.

You can pay your bill in a single payment or in several installments during the year.

Payments will start from January 2022 and the deadline for full payment is January 12.

Contains a report by Rónán Duffy.


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Worthington collects tax revenue for the Township of Sharon through JEDD

The Town of Worthington begins collecting tax revenue for the Township of Sharon as part of a Joint Economic Development District.

On September 20, the city council created a special JEDD income fund with the aim of collecting tax revenue.

“Worthington will collect income tax for the Township of Sharon,” said board chair Bonnie Michael. “We will receive a fee for our processing, then the majority of the income tax will go to Sharon Township.”

The arrangement will apply to around $ 3 million in payroll for workers employed in the JEDD zone at the Olentangy Valley Center shopping complex, according to Worthington executive assistant Ethan Barnhardt, who is the city’s representative to of JEDD and vice-president of the board of directors of JEDD. .

The 2.5% tax rate is expected to generate about $ 75,000 per year, he said. Of that amount, about $ 60,000 will go to Sharon Township and about $ 15,000 to Worthington for the maintenance and administration of the JEDD, Barnhardt said, although there is still additional revenue for the town after the fees. administrative.

“It’s a win-win solution for both communities and it further deepens our collaborative relationship,” said Barnhardt.

The arrangement was due to start on October 1, he said.

Barnhardt said townships are unable to collect income taxes under Ohio law, and the JEDDs help fill in the gaps and help townships meet their economic development goals.

“The JEDDs were created so that the townships and municipalities can collaborate and agree to extend the fiscal authority of municipalities with the aim of facilitating economic development within the township,” said. “The main advantage for the township is that it does not have to annex its land and that it can start collecting part of the income from income tax that otherwise would not have been collected in the area. unincorporated area. “

The JEDD was created on July 20, 2020, when city council voted to allow City Manager Matt Greeson to enter into a contract with the Township of Sharon, Barnhardt said.

It is an extension of the city and township partnership in which the city provides fire extinguishing and emergency medical services to township residents and businesses.

Sharon Township approved the JEDD in May, according to administrator John Oberle, who is a member of the JEDD board.

Barnhardt said the JEDD was created to “help facilitate economic development and create jobs and economic opportunities” within its borders.

He said the JEDD consists of five plots in Sharon Township at the Olentangy Valley Center – a commercial development in the township off Highway 315 just north of Interstate 270, which is due to be redeveloped in recent years. and received tax incentives from Franklin County in 2018 to stimulate redevelopment of the site, as reported by The Columbus Dispatch in February 2018. These plots include the Hills Market at 7860 Olentangy River Road, the new Bristol Senior Living facility at 7780 Olentangy River Road and several other businesses.

“Worthington and the Township of Sharon have always had a close bond, and it was a logical way for Worthington to help the Township in the redevelopment of the Olentangy Valley Center by generating new income for the Township,” said Barnhardt.

Because the commune was waiving taxes in the Center of the Olentangy Valley as a result of the tax incentives, Oberle said, JEDD was needed to help recover some of that income.

“We are comfortable with this, but we also have a duty to our residents to make sure (that) if we are going to forgo certain tax incentives, we thought that one way to compensate was to create the JEDD”, did he declare. noted. “I anticipate this will help us with some of the costs that have been lost for investment in the development. And it will go to other township costs that are ingrained for the benefit of our residents. It will be a win-win.

“It won’t be a godsend, but it will help us with our budget.”

Oberle said the township was not losing any income because of the tax incentives.

Sharon Township’s annual operating budget for the current fiscal year is approximately $ 3 million, he said.

According to Barnhardt, taxes levied on an employee in JEDD must be withheld by the employer. If there is a tax in the municipality where that person’s residence is located, that municipality can choose to give full or partial credit for taxes paid at a workplace, he said.

“The logic behind this tax system is that people pay taxes where they live and work because they use city services provided both at the workplace and at residence, such as driving. , police and firefighters, ”he said. “If a person works in Sharon Township but does not live there, it is very likely that the employee is already taxed on their income elsewhere.

“With the JEDD, the income tax which was previously withheld where the employee lived would be redirected to the JEDD to cover the costs linked to the redevelopment of the Center de la Vallée d’Olentangy.”

Oberle said tax incentives for owners of Olentangy Valley Center, Columbus-based Continental Real Estate Cos., Include a district tax increase funding through the township and an incentive for the community redevelopment through Franklin County.

Oberle said TIF is redirecting money that would normally be paid in taxes to infrastructure development in support of the site. The CRA “provides property tax exemptions for homeowners who renovate existing buildings or construct new buildings,” according to ohio.gov.

The redevelopment of the center of the Olentangy Valley is complete, with the exception of a plot on the north side of the site which is still under development, Oberle said.

A Sheetz gas station and convenience store were offered for this plot, but Sheetz announced that it had withdrawn its proposal in August 2020.

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@ThisWeekSteve


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The Minister of Finance amends the implementing regulations of the Income Tax Act

Mohamed Maait, Minister of Finance, issued Resolution No. 491 for 2021 in order to amend certain provisions of the Regulations for the execution of the Income Tax Law promulgated by Law No. 91 of 2005.

Reda Abdel Qader, chairman of the Egyptian Tax Authority (ETA), said on Monday that the first paragraph of article 51 of the executive regulations will be replaced by the following:

“Pursuant to the provisions of article 42, the competent tax authority is notified of the taxpayer to pay tax on the form (8 buildings), and the taxpayer is required to inform the competent tax administration of the building taxable transfers via the electronic portal of the Egyptian tax administration or by any electronic means on the form (16 bis).

Abdel Qader added that in order to facilitate the procedures and complete the electronic services provided by ETA, a 16-bis form (notification of the transfer of a built property or a building plot) has been made available. available electronically on both the electronic declaration and the automated tax procedures system, and therefore the financier is required to submit a form (16 bis) electronically from the date on which it was made available on the electronic system.

He pointed out that in accordance with Article 42 of the Income Tax Law, property tax is levied at the rate of (2.5%) of the value of the property sold, without any reduction in the total value of the sale of built buildings. real estate or building land, as well as whether the contracts for these transactions are made public or not.

He explained that all real estate and residential units in the villages are exempt from property tax, as well as the actions of the heir until the promulgation of Law No. 158 of 2018 amending Law No. (91) of 2005, amending article 42., in buildings devolved by succession in their inheritance condition, in addition to buildings presented in kind in the capital of joint-stock companies on condition that the corresponding shares are not sold for a period of five years, as well as endowment contracts between assets and branches, nor is it considered a taxable assignment of forced sales and expropriation for the public good or improvement.

He stressed that the delivery of proofs indicating the payment of the property tax has been canceled in the event of a real estate declaration or provision of a service on the real estate being transferred, by Law n ° (5) of 2021.

He added that the owner is required to pay the tax within 30 days from the date of the “land transfer” and that it applies in return for the delay provided by the income tax law to counting from the day after the end of the thirty days. .

He added that in the case of the only act of a natural person with a tax file, the taxpayer is obliged to submit a form (16 bis) on the automated system of tax declarations, as well as to pay the value of the tax on real estate transactions on the system.

In the case of the only act of a natural person who does not have a tax file, Abdel Qader indicated that the financier undertakes several steps, which consist in going to the competent tax office with a copy of the contract of sale and the original visit contract, as well as a copy of the identity document, to open a tax file and obtain a tax identification number. Then the taxpayer creates an account on the automated tax declaration system under the tax registration number, to submit a form (16 bis) on the automated tax declaration system, as well as to pay the value of the tax on real estate transactions on the system.

Abdul Qader said that a form (16 bis inventory) is submitted electronically on the electronic reporting system www. Incometax.gov.eg. and on the automated tax procedures system www.eta.gov.eg

He explained that the Integrated Communication Center receives all inquiries on hotline 16395 or via email [email protected]




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