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FBR Extends Tax Filing Date Until October 15

The Federal Board of Revenue (FBR) extended the filing date for tax returns to October 15 on Thursday.

In a notification, the FBR said the September 30 deadline had been extended by 15 days due to “serious technical issues” in the Iris portal for electronic filing of tax returns.

The RBF had already stressed on several occasions that the deadline would not be extended. He had, however, ordered his chief commissioners of the Inland Revenue to “generously grant extensions” for the filing of tax returns to people facing “difficulties of any kind”.

“The system operates transparently and approximately 150,000 returns were filed on September 28, the highest number ever filed in a single day. In the meantime, FBR, like last year, has improved the ability of its system to provide transparent services to taxpayers. the tax collection agency said on Wednesday.

However, many social media users complained on Thursday that the Iris portal was not working.

The RBF had received around 1.4 million tax returns by September 28.

KTBA requests 90 day extension

The Karachi Tax Bar Association (KTBA) previously asked Prime Minister Imran Khan for a three-month extension, that is, until December 31.

The KTBA pointed out that compliance with the 90-day time limit was prescribed by law for filing the income tax return under Article 118 of the Income Tax Ordinance 2001. It further pointed out that ‘unavailability of the FBR portal for 15 days. “The 90-day period should only start when a flawless and error-free return of income in accordance with the provisions of the ordinance is uploaded to the Iris portal, which in itself has not yet been notified,” said the ‘association.

The KTBA further stated that the FBR portal, both e-FBR and Iris “remained hacked and disabled from August 14, 2021” and was intermittently not functioning properly until the end of August 2021, which again denied taxpayers 90 uninterrupted days prescribed by law to file the tax return.

On Tuesday, the RBF issued a circular to make it easier for taxpayers to file their tax returns over the past two days with extended hours for filing returns as well as paying taxes. This was in addition to the massive nationwide awareness campaign involving national heroes, urging people to file their returns to improve tax compliance in the country.

This year, the FBR notified tax returns from July 2021 to meet the 90-day (three-month) requirement under tax law.


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Honesdale can impose a 1% earned income tax on wages

If enacted, the borough would impose a 1% earned income tax on the salaries of residents and non-residents working in the borough.

HONESDALE, Pa .– The proposed labor income tax ordinance would allow Honesdale to collect 1% from everyone who lives in town and many who work there.

In return, the borough would lower its property tax rate.

“We started out by wanting to make things a bit fairer for them, where they might not have as much or no income earned so that we could give them property tax relief, but without hurting the tax base. but also really watching public safety were watching our storm water systems looking for ways to fund them without sending property taxes through the roof, ”said Jared Newbon, a councilor for Honesdale Borough.

District officials say the EIT ordinance will cut property taxes by 11%.

Still, some taxpayers who showed up to Wednesday night’s board meeting were skeptical.

“Honesdale is a federally declared HUBZone and was already a struggling area and adding this tax is an undue burden that people will not be able to face considering the fact that food costs more. , gas costs more if going to cost more to heat your home, ”said Brian Wilken, president of the Greater Honesdale Partnership.

“Our companies are trying to survive, it is hard enough to retain employees and even less to have to tell them because they work in the district were going to take even more money from them,” said Suzie Frisch, member of the community.

If enacted, the borough would impose a 1% earned income tax on the salaries of residents and non-residents working in the borough.

Two things are important to note.

The earned income tax will not affect education property taxes, and the earned income tax only refers to the taxation of money people earn. It doesn’t affect things like social security and insurance.

“A person who earns $ 25,000 is going to pay $ 250 in tax and the person who earns $ 250,000 in investment income will not pay a dime … This is extremely unfair and I strongly advise against it,” said Tom Shepstone, a resident.

The borough points out that of the more than 2,500 municipalities in Pennsylvania, only 93 of them do not have a tax on labor income.


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Pendleton adopts proposed public safety income tax hike | New

PENDLETON – With Police Chief Marc Farrer on the importance of additional funding for public safety, Pendleton City Council has passed a resolution to increase income tax for public safety.

City council voted unanimously on Tuesday to increase the public safety income tax for Madison County by 0.3%.

With the action taken in Pendleton, the 30-day deadline for passing the tax increase began with 50 votes required by the Madison County Tax Board.

Farrer said the town of Pendleton had suffered more arrests than the city of Alexandria in the past year.

“We cannot meet the needs,” he said. “We are going to start losing officers to Hancock County because they are offering a higher salary.”

Farrer said he was “super excited” at the possibility of additional funding for public safety in the community.

“It will benefit all of Madison County,” he said.

George Gasparovic, the Pendleton City Court judge, asked what the impact of the tax increase would be on the citizens of Madison County.

Madison County Sheriff Scott Mellinger said county and local community budgets continued to be squeezed over the past 15 to 20 years.

“We will either continue the public security services or cut other services,” he said.

City Councilor Bob Jones asked about the possibility of the state of Indiana providing more funds to hire assistant prosecutors and public defenders in Madison County.

Andrew Hanna, deputy chief prosecutor, said 91 other prosecutors’ offices would seek additional public funding. He doubted the county would receive additional state aid.

Council Chairman Chet Babb said the town of Pendleton had been doing well in recent years.

Babb said he had supported the hiring of more police officers at Pendleton for several years, but funding was not available.

“I don’t see how we can’t get past this,” he said. “This is a plus for the County and Town of Pendleton.”

Hanna said the proposed tax increase is of paramount importance to every community.

“The $ 8 million will be spent by all municipalities based on population,” he said.

Hanna said the county’s criminal justice system has been underfunded for decades.

He said Pendleton will receive around $ 237,000 starting in 2022 if the 0.3% tax increase is approved.

Hanna said Madison County’s tax burden will still be lower than 26 other counties in Indiana.

“It’s not a big jump,” he said. “The taxes raised will be dollars spent on public safety. The cumulative effect will be a safer Madison County.

Mellinger said the crime rate is a county-wide problem.

“It’s a quality of life issue for every citizen of this county,” he said.

Criminal justice handled the high crime rate as well as possible, Mellinger said.

“To maintain this high level, he needs a bullet in the arm,” he said. “The tax has not been increased for 25 years. The county took money out of the general public safety fund. The well has dried up.

To follow Ken de la Bastide on Twitter @KendelaBastide, or call 765-640-4863.


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Pendleton adopts proposed public safety income tax hike | Local News

PENDLETON – With Police Chief Marc Farrer on the importance of additional funding for public safety, Pendleton City Council has passed a resolution to increase income tax for public safety.

City council voted unanimously on Tuesday to increase the public safety income tax for Madison County by 0.3%.

With the action taken in Pendleton, the 30-day deadline for passing the tax increase began with 50 votes required by the Madison County Tax Board.

Farrer said the town of Pendleton had suffered more arrests than the city of Alexandria in the past year.

“We cannot meet the needs,” he said. “We are going to start losing officers to Hancock County because they are offering a higher salary.”

Farrer said he was “super excited” at the possibility of additional funding for public safety in the community.

“It will benefit all of Madison County,” he said.

George Gasparovic, the Pendleton City Court judge, asked what the impact of the tax increase would be on the citizens of Madison County.

Madison County Sheriff Scott Mellinger said county and local community budgets continued to be squeezed over the past 15 to 20 years.

“We will either continue the public security services or cut other services,” he said.

City Councilor Bob Jones asked about the possibility of the state of Indiana providing more funds to hire assistant prosecutors and public defenders in Madison County.

Andrew Hanna, deputy chief prosecutor, said 91 other prosecutors’ offices would seek additional public funding. He doubted the county would receive additional state aid.

Council Chairman Chet Babb said the town of Pendleton had been doing well in recent years.

Babb said he had supported the hiring of more police officers at Pendleton for several years, but funding was not available.

“I don’t see how we can’t get past this,” he said. “This is a plus for the County and Town of Pendleton.”

Hanna said the proposed tax increase is of paramount importance to every community.

“The $ 8 million will be spent by all municipalities based on population,” he said.

Hanna said the county’s criminal justice system has been underfunded for decades.

He said Pendleton will receive around $ 237,000 starting in 2022 if the 0.3% tax increase is approved.

Hanna said Madison County’s tax burden will still be lower than 26 other counties in Indiana.

“It’s not a big jump,” he said. “The taxes raised will be dollars spent on public safety. The cumulative effect will be a safer Madison County.

Mellinger said the crime rate is a county-wide problem.

“It’s a quality of life issue for every citizen of this county,” he said.

Criminal justice handled the high crime rate as well as possible, Mellinger said.

“To maintain this high level, he needs a bullet in the arm,” he said. “The tax has not been increased for 25 years. The county took money out of the general public safety fund. The well has dried up. “

Follow Ken de la Bastide on Twitter @KendelaBastide, or call 765-640-4863.


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Personal income tax and social insurance obligations for foreigners making an internal transfer within a company

The representative office of a foreign trader in Vietnam (hereinafter referred to as “Representative office”) Is a dependent unit of this foreign trader established under Vietnamese laws. Upon entering the Vietnamese market, foreign traders can choose many different forms to participate. However, the establishment of a representative office is an optimal test step to reduce costs, avoid risks associated with local procedures such as non-application of value added tax, income tax, corporate tax, no financial statement, no independent audit required…. in the early stages of accession. With the function of strengthening and helping foreign traders find customers, promote purchase and sale contracts with local partners, research and develop products, foreign traders usually appoint the employee who has worked for foreign traders for a long time and understood their products to go to Vietnam, take the post of head of representative office and operate representative office business or work as representative office employee in Vietnam. These foreign employees are considered foreigners in internal change within a company.

Social insurance obligations for Foreigner undergoing internal change within a company

Social insurance is a policy of the social security system primarily concerned with the government to provide benefits to employees based on contributions from employees and employers. The essence of social insurance is a guarantee to compensate or partially replace the income of employees when they experience a decrease or loss of income due to illness, maternity, work accident. , occupational disease, unemployment, when they reach the end of working age or die on the basis of contributions to the social insurance fund organized by the government. However, each employee will be subject to different social insurance policies. According to the provisions of clause 1, article 2 of government decree 143/2018 / ND-CP on subjects participating in compulsory social insurance: “Foreign employees working in Vietnam are required to participate in compulsory social insurance. ‘they have work permits, certificates of practice, permits to practice issued in Vietnam, employment contracts of indefinite duration or employment contracts valid for at least one year with employers in Vietnam. In the event of an intra-company move of the foreign employee, the foreign employees sign the employment contract with the foreign traders and are not required to apply for a work permit as provided for in clause 3, article 7 of decree 152/2020 / ND -CP: “Intra-company moving in 11 sectors of the Vietnam-WTO services commitments schedule, including business services, communication services, construction services, distribution services, services education, environmental services, financial services, health services, tourism services, recreational and cultural services, and transportation services.

Consequently, foreigners transferring internally within a company are not subject to compulsory social insurance.

The subjects affiliated to health insurance are employees working under a fixed-term employment contract for a total duration of 3 months or more, employment contracts of indefinite duration. The monthly health insurance payment is equal to 4.5% of the salary serving as the basis for the amount of compulsory social insurance (monthly salary) with the employer contribution of 3% and the employee contribution of 1.5%. Thus, subjects affiliated with health insurance do not discriminate against Vietnamese citizens or foreign employees. In addition, in accordance with Clause 2, Article 1 of the Social Insurance Law 2008 as amended and supplemented in 2014 (hereinafter referred to as “Health Insurance Law 2004”), foreign organizations and natural persons in Vietnam are also subject to the provisions of the Health Insurance Law 2004. Therefore, we believe that the foreigner transferred within a company if he works under an employment contract of indefinite duration or of an employment contract of a duration of 3 months or more is also subject to the Health Insurance Act 2004 and must participate in health insurance under the laws.

However, according to official letter No. 288 / BHXH-QLT dated February 18, 2020, from Ho Chi Minh City Social Insurance Agency, Ho Chi Minh City Social Insurance Agency instructs employers in Ho Chi Minh City than the foreigner transferred internally to a Companies are not subject to health insurance from February 1, 2020. Sharing the same opinion with the Social Insurance Agency of Ho Chi Minh- City, in the online policy explanation on the government portal, the Social Insurance Agency of Vietnam also said that the internal overseas transfer within a company is not eligible to participate in health insurance because foreign workers in Vietnam are not specifically regulated to participate in health insurance under Article 12 of the Health Insurance Law of 2004 and Decree 146/2018 of October 17, 2018 government on detailing and guiding the implementation of cert thus articles of the law on health insurance which do not specifically regulate the mechanism applicable to its group of subjects. However, the Official Dispatch is not a normative legal document and is only an internal administrative document or applicable to regions and localities. Therefore, in our opinion, to avoid risks in determining social insurance obligations for foreign employees making an intra-company move, the representative office should send a written consultation to the social insurance body where it is located. find the office to consult, exchange views in advance to comply with regulations.

Tax obligations of natural persons foreign employees moving within the company

Unlike other matters, foreigners living and working in Vietnam must declare and pay personal income tax. However, it is necessary to determine the residence status of the foreigner (resident or non-resident) to determine the rate of personal income tax payable for foreigners.

Foreigners who make an internal transfer within a company are identified as residing in Vietnam. The representative office must declare a personal income tax similar to that of Vietnamese employees.

For foreign workers who do not reside in Vietnam, it is true that the employee (usually the head of the representative office) is a foreigner making an intra-company move but has not been present in Vietnam for 183 days or more. and does not have a usual address in Vietnam, they are therefore considered a non-resident natural person in accordance with clauses 2 and 3, article 2 of decree 65/2013 / ND-CP. We can consider the tax obligations of natural persons from abroad in internal transfer within a company in the following two cases:

  • Case 1: The foreigner who makes an internal transfer within a company does not reside in Vietnam but generates income in Vietnam. The representative office must declare personal income tax on wages / salaries incurred in Vietnam.
  • Case 2: The foreigner who makes an internal transfer within a company does not reside in Vietnam, does not generate any income in Vietnam and is not entitled to a salary / wages for work performed in Vietnam. Consequently, foreigners are not subject to personal income tax. However, in accordance with the provisions of Clause 2, Clause 3, Article 7 of Decree 126/2020 / ND-CP, the Representative Office must always declare the income tax of foreign workers on a quarterly basis, whether or not they generate income. taxable income from October 1, 2020. On the other hand, Official Letter n ° 2393 / TCT-DNNCN dated July 1, 2021, from the Directorate General of Taxes relating to the personal income tax declaration, in the event that organizations and individuals pay taxable income, they will be subject to personal income tax. declaration. Therefore, if organizations and individuals do not generate and pay taxable income on personal income, they are not subject to the provisions of the Personal Income Tax Act. Therefore, organizations and individuals who do not pay personal income taxable income during a month / quarter are not required to report personal income tax for that month / quarter.

For this case, in our opinion, the official letter 2393 is only used as a reference. According to the official letter 2393, the representative office can explain to avoid administrative penalties for non-declaration of income tax of foreign employees from July 1, 2020 until now. Then, the representative office must declare the income tax of foreign employees, whether or not they have taxable income in accordance with Decree 126/2020 / ND-CP.

In addition, for the declaration of no income in Vietnam, we have come across many cases in our consulting practice where the Representative Office has declared no income. However, the tax authorities still applied personal tax rates for income paid by foreign traders. Therefore, in our opinion, you should consult the tax administration to declare and pay the income tax of foreign workers with no income in Vietnam before doing so to avoid the risk of tax penalties.

The issues of personal income tax and social insurance obligations for foreign employees in Vietnam are complicated in terms of laws and practices, especially in the case of foreign employees making an intra-company move. It becomes even more difficult to determine their obligations as they frequently change their residence address between their country and Vietnam. Therefore, representative offices of foreign traders in particular and employers in general should carefully review, understand legal regulations, and regularly consult with experts to determine income tax and social insurance obligations in order to to avoid violations during implementation.


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RBF Announces Work Hours Extension to Facilitate Income Tax Filers

– APP / File
  • FBR indicates that the affected offices will remain open until midnight on September 29 (Wednesday) and September 30 (Thursday).
  • The deadline for filing tax returns is September 30.
  • The FBR online portal for those wishing to file their returns online has encountered errors on its server.

The Federal Board of Revenue on Tuesday announced an extension of the working hours of its offices to facilitate income tax filers.

According to a statement from the tax administration, the relevant offices will remain open until midnight on September 29 (Wednesday) and September 30 (Thursday).

It can be noted that the FBR online portal for those who wish to file their declarations online has encountered errors in its server, causing immense difficulties for people.

The Pakistan Tax Bar Association has requested an extension of the deadline for filing tax returns.

The deadline for submitting tax returns is September 30, and the RBF has refused to extend the submission date.

Last week, in response to reports of an alleged extension of the date, RBF spokesperson Asad Tahir categorically denied that this was the case, saying no proposal in this regard had been considered at the meeting. headquarters of the FBR.

In an informal conversation with reporters, Tahir said: “So far 0.8 million people have filed their statements.”

He added that no strict action will be taken against merchants, but said that after 15 days, show cause notices will be issued to merchants who do not have point-of-sale (PoS) systems installed.

“Failure to install PoS will result in a fine of 500,000 rupees after 15 days,” the spokesperson said, adding that if traders apply PoS within 15 days, the fine will be waived.

Tahir added that failure to install PoS after one month will result in a fine worth Rs3 million. “Closing down businesses will be the last resort,” he added.

Earlier this month, the RBF advised all taxpayers required to file tax returns by September 30, 2021 to fulfill their legal obligation without waiting until the last date to avoid system delays that occur. when a large number of taxpayers log on to submit returns near the deadline.

FBR also clarified at the time that there would be no extension of the deadline for filing tax returns.


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Income tax reform in Brazil: interest on extinguishment of equity

In September 2021, the Brazilian House of Representatives approved the Income Tax Reform Bill (Projeto de Lei ‘PL’ n ° 2.337 / 2021) under discussion in the Brazilian Parliament. This is not a final version, as it still depends on Senate approval and ratification or presidential veto to come into effect.

It should be noted that the dividend tax rate has been set at 15% (currently the Brazilian system only taxes income as profits, at the corporate level; the participation exemption is in effect, in generally since 1996), but the legislative proposal includes many other different changes in the Brazilian income tax system (personal income tax and corporate tax).

The aim of this article is to analyze one of these other changes: the extinction of the so-called “interest on equity” (IOE) tax system. This article provides a brief overview of the origins of this tax category, as well as the implications its extinction could have on national and international taxation, impacting corporate tax strategies that may need to be reassessed.

The OIE payment rules and its history

The tax regime of the OIE appeared in the Brazilian legal system through Law No. 9.249 / 1995 (a federal law) as an alternative to the remuneration of capital in relation to dividends; it is therefore a sort of “distribution of benefits”.

In short, it granted the possibility to companies operating under the Lucro Real tax regime (taxation of real profits, on the basis of accounting books) to pay interest on the equity of the companies at a given rate (TJLP). This payment is deductible from the corporate tax base, taxable profit (taxed in full at the rate of 34%), on the one hand, but this payment is subject to withholding at the rate of 15%, considered as a tax on the beneficiary of the interest (the shareholder).

This possibility has allowed a better return on the capital invested in Brazilian companies and induces the capitalization of companies by its shareholders. In other words, such a regime induced the financing of companies by equity instead of shareholders instead of debit from third parties. It is out of the question that this financial instrument was created to encourage the expansion of business activity by increasing equity, rather than debt.

The strategy then consisted of aligning the opportunity cost with that of the company’s other creditors. In other words, the tool has a very simple objective: to discourage companies from seeking resources in the financial market, which can rely on the capital of their owners. This could improve the financial health of Brazilian companies. In addition, the objective of neutrality vis-à-vis the source of funding is another hallmark of this regime, since interest in Brazil is generally taxed at 15% at source.

IOE qualification on TNT

From a legal point of view, this instrument has a hybrid character, since the OIE holds both rights and obligations typical of own funds and third party capital. This point alone already brings a multitude of complexities to the treatments accorded by national tax law, but the difficulty is even greater in the international scenario, including its qualification for the purposes of interpretation and application of tax treaties. double taxation (DTC) signed by Brazil.

It should be noted that TNTs use a schedule structure. They divide the items of income into categories, according to an autonomous qualification, in order to distribute the taxing rights among the contracting states. For this reason, they do not take a general and comprehensive consideration of the result. And then the question arises: in which category does IOE belong?

In a preliminary analysis, two possibilities arise for qualifying IOE taking into account the income categories adopted in the OECD model for tax treaties:

  • Interest, provided for in article 11 of the Model, if typical aspects of third party capital are taken into account; Where
  • Dividends, provided for in Article 10 of the Model, if typical aspects of equity prevail.

The difference in categorization leads to the application of different rules for the taxation of this type of income in international transactions: either by mechanisms adopted by the State of residence to avoid double taxation, or by the form of taxation by Source state.

It is important to mention that, contrary to what is adopted in the current model of the OECD, Brazil, in general, uses in its DTAs, for the definitions of dividends and interest, discount clauses integrating into domestic law. . In other words, for the construction of the two concepts, it must be observed that the income should be treated by the treaty in the same way as it was under the tax legislation of the State where the company which received it. payroll is a tax resident.

However, in some cases, the OIE may be qualified in one or the other category depending on the wording adopted in the relevant TNT. Although, after the publication of Law No. 9 249/1995, Brazil adopted an explicit provision in its treaties to qualify the JCP as an interest.

It was done by means of protocols concerning almost all of the TNTs signed thereafter. The only exceptions were the protocols annexed to the DTAs with Finland and Uruguay. It is important to mention that this type of protocol was not annexed to the treaties signed before the publication of the law n ° 9,249 / 1995.

extinction of the OIE

While this qualifying discussion is relevant in determining the tax rules applicable to IOE’s cross-border outbound payment from Brazilian companies, it represents some sort of tax advantage in most cases. For this reason, this form of return on capital has become very common in national and international business structures.

The extinction of the possibility of paying IOE in Brazil provided for in the tax reform under debate, if confirmed, would require the reassessment of general tax strategies regarding the distribution of income of Brazilian companies in many cases. For this reason, we highlight this possible modification of the law which will have a significant impact on the business practices related to Brazil.

Paulo Victor Vieira da Rocha

Partner, VRBF Advogados

Marina da Silva Fernandes

Partner, VRBF Avocats

Murilo Jakuk Ferreira Lopes

Partner, VRBF Avocats

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ITR 2021: the best apps to file an online tax return

The government has extended the deadline for filing an income tax return (ITR) for tax year 2021-22 to December 31, 2021. The deadline for submitting the late / revised return for the year d ‘imposition 2021-22, which was prior to December 31st, 2021 has been extended until January 31st, 2022, is now extended until March 31st, 2022.

“The penalty for RTIs provided on or before December 31st is Rs 5,000, but doubles that amount for subsequent returns. However, if your taxable income is less than Rs 5 lakh, the maximum penalty will be Rs 1,000. On the other hand, if the evaded tax exceeds Rs 25 lakh, the penalty could be from 6 months to 7 years, ”according to the website of the Income Tax Department.

Here is a list of the best apps on Android and iOS for easy RTI filing online.

All India ITR:

All India ITR is a certified government e-intermediary. It offers a 100% paperless process and is available on Android and iOS. Users can simply upload images or PDFs of their Form-16 and other documents, after which the system automatically reads the entries and the forms are automatically completed, making it easy to file your RTI on the go.

Clear tax:

Clear Tax is one of the most used tax apps in India. The Clear Tax app asks users to select and download an appropriate form to file the computer return based on the responses. It allows user details from 26AS and 16 forms to be imported into the application, making it easier to file a computer declaration. It is easy to file an RTI using the Clear Tax app.

H&R Block:

You can also use H&R Block’s MyBlock app to file your income tax returns. It also affects tax experts if your ITR is complex and you find it difficult to file H&R is a good option. Tax experts are appointed after judging the complexity of an IT declaration. H&R Block offers a secure tax safe, tax savings, hassle-free filing experience, accuracy and transparency.

Tax smile:

The Tax Smile app is designed to help yourself. It frames intuitive questions that have been created with in-depth tax law details in mind. Tax Smile provides tax knowledge, accuracy, fast filing, security and post-filing assistance. The app calculates the taxes owed for free and only charges when the income tax is filed.

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Sir Keir Starmer refuses to rule out income tax hike, promising fairer system

All three positions raise the prospect of Sir Keir running in the May 2024 general election by proposing to raise the overall level of taxation in the UK.

Mr Johnson’s decision to break the Tory manifesto pledge not to increase national insurance in order to pay for welfare reforms and increased NHS spending have pushed the tax burden to its highest level since the post-war years.

Ms Reeves had previously told the Sunday Times that she had “no plans” to increase income tax, adding: “I think people who derive their income from wealth should have to pay more.”

A Labor press release explaining the party’s new tax stance says there are up to a thousand different tax breaks that are collectively worth at least £ 174 billion a year.

The statement specified two reliefs that would be removed – the tax break for schools deprived of their charitable status and a tax break for private equity managers.

Non-domiciliary tax status, which allows someone to pay less tax if they live abroad, and tax breaks for investments in venture capital trusts have also been identified as areas to focus on. examine.

Focus on tax relief

The statement said VAT exemptions for food would be maintained, but it was not yet clear what other tax breaks would remain in place.

A Labor source has played down the possibility of changing the pension tax break.

Ms. Reeves will say, “There are hundreds of different tax breaks in the system.

“Some are important, but too many of them just offer loopholes for those who can afford the best advice.

“For businesses, they create additional layers of complexity to navigate, and added together they cost more than our entire NHS budget.

“We will look at every tax break. If it is not profitable for the taxpayer or the economy, we will remove it.

“Labor will tax fairly, spend wisely and run our economy at full capacity.”


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County Council Holds Public Hearing on Income Tax Increase | New

ANDERSON – Public hearings on a proposed Madison County local tax increase to fund construction of a new prison and operating expenses are set for Tuesday.

Madison County Council will hold two separate public hearings at 6 p.m. in the boardroom of the Madison County Government Center.

The two public hearings will take place at the same time.

A hearing is about a 0.2% increase in local income tax to pay for the construction of a new prison.

The council will consider that a 0.2% increase in local income tax would generate $ 5.4 million to cover bail payments when a new prison is built.

This tax can only be implemented by a vote of Madison County Council under legislation passed by the Indiana General Assembly to pay for the costs of building new prisons.

BakerTilly financial consultant Brian Colton said the .2% is the maximum rate allowed by state law.

Colton said the estimated cost of a 400-bed prison would be $ 86 million with the issuance of a bond of $ 72.9 million over 20 years.

The council will also consider a 0.3% increase in income tax for public safety.

This tax increase could take effect from 2022, there must be a majority vote of the county tax council by the end of October.

The proposed 0.3% increase in income tax for public safety would require a majority vote from the Madison County Tax Board.

The tax council is made up of the county council and the council of all other towns and municipalities.

This tax is estimated at $ 8 million.

Council Chairman Ben Gale said the county council could vote to pass the two tax increases at the September meeting, as the ordinances were introduced last month.

Gale said final votes could be delayed until the October board meeting.

“I believe we have the support for the tax increases,” he said.

Gale explained that the public safety income tax increase is intended to provide the funding needed to pay off the jail bail if the county’s income levels were to drop.

“We could keep the first year of public safety tax money in a savings account and use the rest for county expenses,” he said. “I hope the county will be in a better financial position in the future.”

Gale said that currently the Madison County Public Safety Income Tax is the 46e highest among 92 counties in Indiana and a 0.5% increase would make the county 40e the state’s highest on the local income tax rate.

“The prison rent payment would be covered by the correctional rate, and the public safety income tax would cover the bail payment in the event of a drop in income,” said Colton.

The county council initially proposed a 0.15% increase in income tax for public safety, but local criminal justice officials are urging passage of a 0 rate increase. , 3%.

Officials said the tax increase was necessary to adequately fund the Madison County Sheriff’s Department and the prison, court system, and public defender’s office.

If approved at 0.3%, it will generate $ 3 million for the county; $ 3.6 million for Anderson; $ 560,000 for Elwood; $ 364,000 for Alexandria; $ 237,000 for Pendleton; and $ 280,000 for other cities.

Follow Ken de la Bastide on Twitter @KendelaBastide, or call 765-640-4863.


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