Tax system – Im Just Sayin http://imjustsayin.net/ Sun, 21 Nov 2021 05:02:11 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://imjustsayin.net/wp-content/uploads/2021/10/icon-5-120x120.png Tax system – Im Just Sayin http://imjustsayin.net/ 32 32 Lack of Understanding of Tax System by MSMEs Affecting Compliance – Professor of Law https://imjustsayin.net/lack-of-understanding-of-tax-system-by-msmes-affecting-compliance-professor-of-law/ Fri, 19 Nov 2021 11:33:45 +0000 https://imjustsayin.net/lack-of-understanding-of-tax-system-by-msmes-affecting-compliance-professor-of-law/ Legal practitioner and lecturer Clara Beeri Kasser-Tee calls for effective policies to regulate the tax system in the informal sector. According to Clara Bee Kasser-Tee, most micro, small and medium-sized enterprises (MSMEs) are overtaxed, hence their failure to comply with tax laws. Speaking at the launch of a research paper by the Ghana Center for […]]]>

Legal practitioner and lecturer Clara Beeri Kasser-Tee calls for effective policies to regulate the tax system in the informal sector.

According to Clara Bee Kasser-Tee, most micro, small and medium-sized enterprises (MSMEs) are overtaxed, hence their failure to comply with tax laws.

Speaking at the launch of a research paper by the Ghana Center for Democratic Development (CDD), she said the majority of informal sector actors have no problem parting with money, but do not understand how the tax system works.

“I always make the joke in my tax class that Ghanaians don’t seem to have a problem paying taxes if we look at the culture. They sow seeds all the time, they give first and second harvests so that they have no problem parting with the money. So if they can understand the tax system and know that they are fair, I think they will be good corporate citizens.

“We need to tailor policies to company size and gender balance. Women-owned businesses have a greater need for information and training as well as education on the dangers of handing over paperwork to someone else, ”she said.

The research paper, “Access to Justice and Public Services: Experiences of MSMEs in Ghana”, was written by Mavis Zupork Dome and Daniel Armah-Attoh.

According to Mavis, MSMEs in Ghana are not growing, hence the need to take the results seriously.

“The findings are very revealing and timely given the recent budget presentation. It is time for policy makers and local assemblies to take a look at it. The worrying part of the research is that MSMEs are not growing. “

“Some of the challenges we encountered were access to capital, high interest on loans, financial management and access to justice services,” she said.

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The survey found that the majority of MSME owners are aware of the obligations and requirements to obtain a certificate of business registration from the Registrar General and obtain a business license from the local government authority.

However, around 87% of companies are not in compliance, while 62% of MSMEs are unwilling to pay taxes.

According to the results, business owners are dissatisfied with public services and the inaccessibility of information on how taxes are used, hence the refusal to be consistent in payment.

The research paper also documented MSMEs’ experiences with the judiciary.

It showed that less than a fifth of businesses use the formal court system.

About 87% expressed a lack of confidence in the system.

The study suggests a gap between the state’s capacity to provide a platform, tools and services to MSMEs. It therefore stresses the need to create a mutually beneficial system by making services easily accessible to MSMEs.

The research further recommended the need to computerize and improve knowledge of the justice system. These, when taken into consideration, felt that they would enhance business confidence in the system.


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PM and renowned economist discuss tax system https://imjustsayin.net/pm-and-renowned-economist-discuss-tax-system/ Thu, 18 Nov 2021 23:41:25 +0000 https://imjustsayin.net/pm-and-renowned-economist-discuss-tax-system/ ISLAMABAD: Prime Minister Imran Khan said on Thursday that the government is trying to improve and simplify the tax system. The Prime Minister said this, while speaking to an economist, Arthur Betz Laffer, who, along with financial adviser Shaukat Tarin, appealed to him. The collection of tax records reflects the confidence of the people in […]]]>

ISLAMABAD: Prime Minister Imran Khan said on Thursday that the government is trying to improve and simplify the tax system.

The Prime Minister said this, while speaking to an economist, Arthur Betz Laffer, who, along with financial adviser Shaukat Tarin, appealed to him.

The collection of tax records reflects the confidence of the people in the government, he said.

According to the Prime Minister’s office, during the meeting, the innovation of the tax system was discussed in addition to the negative impacts of the tax system around the world.

During the meeting, discussions were also held on increasing Pakistan’s tax base, improving and innovating as well as reducing the tax burden of the people and simplifying the system.

Tax collection up 32pc contrary to propaganda: PM

Earlier today, according to the Department of Finance, Shaukat Tarin held a meeting with Dr. Arthur Laffer and members of the American Business Council. The finance secretary and senior staff also attended the meeting.

Welcoming Dr Laffer, the advisor highlighted the current economic situation in Pakistan and explained the steps taken by the current government to address the challenges facing the Pakistani economy and put it on the path to progress and growth.

The adviser stressed that priority sectors such as the modernization of agriculture, information technology and industry are essential for increasing exports and economic growth.

The government has taken pragmatic measures to fight inflation, stabilize foreign currencies and increase productivity, he added.

Dr Laffer appreciated the efforts of the current government in various sectors for economic progress and development.

Citing examples of the United States, Turkey and China to achieve economic stability, he suggested key economic reforms to boost prosperity and economic growth in Pakistan.

He cited great potential in accelerated privatization, tax simplification and strengthening the exchange rate to move the economy forward.

The advisor applauded Dr Arthur’s suggestions in the field of economics and the valuable support to bring economic progress to Pakistan.

Copyright Business Recorder, 2021


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Lawsuit has been filed to challenge Louisiana’s sales tax system by an out-of-state company https://imjustsayin.net/lawsuit-has-been-filed-to-challenge-louisianas-sales-tax-system-by-an-out-of-state-company/ Mon, 15 Nov 2021 20:46:15 +0000 https://imjustsayin.net/lawsuit-has-been-filed-to-challenge-louisianas-sales-tax-system-by-an-out-of-state-company/ An out-of-state company today sued Louisiana and several parishes to challenge the state’s patchwork approach to collecting sales taxes, days after voters rejected a constitutional change that would have centralized these tax collections in a single tip. Halstead Bead Inc., an Arizona-based company that sells jewelry making supplies online, takes issue with Louisiana’s approach of […]]]>

An out-of-state company today sued Louisiana and several parishes to challenge the state’s patchwork approach to collecting sales taxes, days after voters rejected a constitutional change that would have centralized these tax collections in a single tip.

Halstead Bead Inc., an Arizona-based company that sells jewelry making supplies online, takes issue with Louisiana’s approach of collecting parish-by-parish sales taxes and forcing businesses outside of it. State filing reports in every parish where sales are made creates a “compliance nightmare.”

The company is asking the court to declare that Louisiana’s fragmented sales tax registration and remittance requirements constitute an unconstitutional burden on interstate commerce, among other violations of federal constitutional protections.

Halstead Bead is represented by small right-wing government groups including the National Taxpayers Union Foundation, the Pelican Institute for Public Policy, and the Goldwater Institute.

“Louisiana makes it extremely difficult to do business in the state because of the countless hours and dollars it takes to ensure precise compliance with all tax jurisdictions,” said Brad Scott, chief financial officer of Halstead, in a statement released by the Pelican Institute. “We don’t have the tools, we don’t have the resources, but we still have outrageous compliance requirements. “

The lawsuit was filed this morning in federal court in New Orleans. He names Secretary of State for Revenue Kimberly Lewis and the sales tax collectors in the parishes of Lafourche, Tangipahoa and Washington as defendants. Read the full story.


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Editorial: What would you change in the state tax system? https://imjustsayin.net/editorial-what-would-you-change-in-the-state-tax-system/ https://imjustsayin.net/editorial-what-would-you-change-in-the-state-tax-system/#respond Thu, 11 Nov 2021 09:30:00 +0000 https://imjustsayin.net/editorial-what-would-you-change-in-the-state-tax-system/ By the Herald Editorial Board Now’s your chance to not only complain about taxes, but – maybe – to help make Washington’s tax system fairer and easier to understand. A task force comprised of state lawmakers and other state and local officials continues its efforts to consider potential reforms of the state tax system by […]]]>

By the Herald Editorial Board

Now’s your chance to not only complain about taxes, but – maybe – to help make Washington’s tax system fairer and easier to understand.

A task force comprised of state lawmakers and other state and local officials continues its efforts to consider potential reforms of the state tax system by the legislature in the coming years.

While the State Tax Structure Task Force has completed a series of online town halls that have garnered public comment on the tax system and several proposed reforms, the task force is still collecting feedback by the through online surveys – one brief, the other more detailed – which allow the resident state to comment on several ideas being considered.

Polls ask questions about tax fairness; options to maintain or reform the current state system of sales, property, business and occupancy taxes and other taxes; and various proposals that would reduce or replace the current list of state taxes.

The task force – which includes lawmakers from both parties and chambers and representatives from the governor’s office, the State Department of Revenue, the Association of Washington Cities and the Association of Counties of the Washington State – examines changes to the state’s tax system that would provide more fairness and justice, greater stability and predictability in meeting state revenue needs, and more transparency regarding the tax system.

The working group is expected to consider public comments and continue discussions over the coming year, with the possibility of legislation in 2023.

Potential reforms seek to be revenue neutral, which means the intention is not to raise more or collect less taxes and revenues, but to find a better combination of taxes that would improve the structure. fiscal.

And there is no choice but to defend the state in terms of tax fairness.

Washington state ranks at the bottom of the 50 states in the most recent report from the Institute on Taxation and Economic Policy, a non-partisan tax advocacy group. His report “Who pays? Is its state-by-state assessment of tax systems. The ITEP ranked Washington last in tax fairness, leading its “Terrible Ten” states, based on the percentage that the state’s lowest income families pay in taxes compared to the little that they pay. the richest in the state pay in taxes.

“Washington has the most unfair national and local tax system in the country. Incomes are more unequal in Washington after collecting state and local taxes than before, ”revealed the sixth edition of the report.

Take a look: Washington state families in the bottom 20% in income – those earning less than $ 24,000 a year – pay about 17.8% of what they earn in taxes, while the richest 1% – those who earn at least $ 545,900 or more per year – pay only 3% of their income in taxes. Those in the middle of 20%, with incomes between $ 44,000 and $ 70,100, pay 11% of their income in taxes.

This disparity – giving Washington the dubious distinction of having the nation’s most regressive tax system – is the result of a system that has no income tax and instead relies heavily on national sales taxes. and local.

ITEP, in its “Who pays? report, notes that states with the fairest tax systems rely less on regressive sales taxes and instead use broad brackets and progressive income tax rates; and offer targeted and refundable tax credits for low-income people.

Of the state’s total tax revenue for 2020 of $ 26.83 billion in 2020, about 45% – $ 12.1 billion – was generated by sales taxes, according to the State Revenue Department. ; another 11 percent – $ 3 billion – came from the sales tax on tobacco, alcohol, and the state tax on gasoline and diesel fuel. Business and operating taxes, also known as B&O, generated 17% of revenue, or $ 4.6 billion; while property taxes accounted for 14 percent of revenue or $ 3.6 billion. Other taxes accounted for the remaining 13 percent, or $ 3.6 billion.

Where is this money going? About 47 percent support public education from kindergarten to grade 12; 33 percent is spent on human services; nearly 7 percent on higher education; and the balance goes to government, natural resources, debt service and other spending.

Among the proposals being studied and included in the online survey:

One, regarding property taxes – currently capped at no more than 1% increase without voter approval – would tie increases to the state’s population and inflation.

A second would forgo property tax on the first $ 250,000 of the assessed value of a primary residence and replace lost income with a 1% wealth tax on stocks and bonds valued at more than $ 1. ‘a billion dollars.

One-third would reduce state sales tax by 2 percentage points; reduce property taxes by 25% and forgo the first $ 250,000 of assessed property value and eliminate B&O tax, while adopting fixed income taxes for corporations and individuals.

A fourth, with the reductions and eliminations described above, would adopt graduated rates for corporate and personal income tax.

Washington State has no income tax; voters approved a state income tax in 1931, but the law was successfully challenged in 1933, with the state Supreme Court ruling it unconstitutional. Other court cases and elections kept the state’s tax package exempt from income tax, but some suggested the ruling aimed for a progressive income tax and that a flat income tax could pass the constitutional course. Passing a progressive income tax would require a two-thirds vote in the legislature and a constitutional amendment approved by voters.

State residents and businesses will have their own opinions on what is fair and what is not about the state tax system and any reform proposals being considered; but that is why these thoughts are needed now.

The task force co-chairs – State Senator Keith Wagoner, R-Sedro-Woolley, and State Representative Noel Frame, D-Seattle – also disagree on the best options for reform, “but we are aligned with the process. Wagoner told Washington Wire in September.

“And I think it was really helpful. (Frame) and I… disagree on a lot of things. But let’s agree on a process where we can hear people. That’s what it’s about.

Take the survey

Washington residents can take the Tax Structure Work Group short or long survey at taxworkgroup.org/survey. More information about the task force, the state’s tax system, and the proposals under consideration – including calculators that show what your tax bill might be under different proposals – is available at taxworkgroup.org / learn.



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German tax system: competitiveness rankings https://imjustsayin.net/german-tax-system-competitiveness-rankings/ https://imjustsayin.net/german-tax-system-competitiveness-rankings/#respond Tue, 09 Nov 2021 11:55:24 +0000 https://imjustsayin.net/german-tax-system-competitiveness-rankings/ In the wake of Halloween, the leaders of the world’s 20 largest economies approved a 15% global minimum tax on large multinational corporations. The minimum tax, signed in Rome and announced by the Organization for Economic Co-operation and Development (OECD), aims to curb profit shifting and limit competition in tax rates between governments. However, in […]]]>

In the wake of Halloween, the leaders of the world’s 20 largest economies approved a 15% global minimum tax on large multinational corporations. The minimum tax, signed in Rome and announced by the Organization for Economic Co-operation and Development (OECD), aims to curb profit shifting and limit competition in tax rates between governments.

However, in the shadow of this deal lies a chilling truth. A country’s tax code is not limited to the rate at which the government taxes a company.

For example, Germany has the fifth highest combined corporate tax rate among OECD countries, at 29.9%. Italy has a much lower rate, at 24 percent. Considering the lower rate and the fact that Rome has just hosted such a historic tax agreement, Italy must have a more competitive tax code than Germany, if?

The short answer is nein.

How then to measure the competitiveness of a country’s tax code? More useful, how to compare the tax codes of the most impactful economies in the world like those of the G7? In what ways should governments strive to be competitive without harming economic growth or using narrow preferences to attract investment?

The Tax Foundation recently released 2021 International tax competitiveness index (ITCI) provides many of these answers. The Index aims to assess the competitiveness and neutrality of a country’s tax code by measuring more than 40 tax policy variables. Competition and neutrality are essential to a strong tax code because they promote economic growth and investment while generating sufficient revenue for government priorities.

So how do Germany and Italy rank this year compared to their G7 partners?

Germany retains most competitive G7 tax code despite slipping 15e to 16e overall among OECD countries from 2020 Index. Canada ranks second in the G7 with 20 yearse across the OECD, followed by the United States at 21st, the United Kingdom at 22sd, Japan at 24e, and France at 35e. Italy is the least competitive tax code of the G7 and the OECD at 37e globally.

How can Germany be the first G7 tax code with such a high corporate tax rate? Doesn’t this rate make Berlin less competitive? Are Tax Foundation Experts Using the Wrong Formula?

Germany scores well on several important tax policies compared to its G7 partners beyond its corporate tax rate. Impressive, Germany’s property tax score ranks best in the G7 and 11e across the OECD. This is mainly due to a decrease in the tax burden on companies looking to improve their property through renovations or the expansion of a factory and the absence of wealth tax, wealth tax or on financial transactions.

Second, Germany’s cross-border scores rank second among G7 countries and sixth among OECD countries. This is due to the combination of Germany’s vast network of tax treaties with 96 countries and competition rules that facilitate cross-border investments.

Some G7 countries outperform Germany in specific cross-border policies, such as the UK, with the most extensive network of tax treaties (132 countries), and Canada, with more flexible anti-tax avoidance rules. However, only the UK has a best combined average score for the four G7 cross-border policies.

Finally, Germany’s consumption tax scores rank 11e best among OECD countries. Although this is only the fourth best score in the G7, the German value added tax (VAT) or consumption tax is 19%, practically the same as the OECD average (19.2 %). In addition, the German VAT compliance burden is relatively low and has an above average base rank. These above-average scores keep the German general tax code relatively competitive in the G7.

If Germany tops the G7, what can other G7 countries learn from its tax code?

Other G7 countries should think about the types of tax policies they rely on for their income in relation to their impacts on economic growth. Countries like France and Italy rank lower than Germany on all major indicators of the Index although France has lowered its corporate tax rate in recent years and Italy lowered its corporate tax rate from 31.4% to 24% in 2017. Several countries, including Canada, US and UK rank better than Germany for corporate and individual tax rates. Japan’s rank on corporate tax rates is lower than Germany’s but ranks better on personal tax rates.

These countries were unable to overtake Germany’s top G7 rank in the Index because they are not competitive in other important tax areas, such as cross-border tax rules, consumption taxes, and property taxes, all of which contribute to a well-designed tax system.

Germany’s relatively competitive and neutral tax policies strike an effective balance. The government raises enough revenue to support the German social system while promoting investment and economic growth. This balance has enabled the German economy to withstand the economic fallout from the COVID-19 pandemic and the resulting supply chain issues.

However, Germany still has room for improvement compared to other OECD countries. Personal income tax in Germany, for example, is complex with an associated compliance charge of 134 hours. It is the third highest among OECD countries. In addition, as mentioned earlier, Germany has the fifth highest corporate tax rate in the OECD. While the German tax code does a lot of things right, reforming these policies to increase economic growth would make investments in Germany much more competitive.

In a world dominated by corporate tax rate headlines and fears of a race to the bottom, governments and citizens should focus on what really makes a tax code neutral and competitive. More often than not, taking the German tax code as an example, G7 countries can improve the stability of their incomes and the lives of those they represent.

Launch 2021 International tax competitiveness index

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Community update on the proposal to modernize the state tax system | Characteristic https://imjustsayin.net/community-update-on-the-proposal-to-modernize-the-state-tax-system-characteristic/ https://imjustsayin.net/community-update-on-the-proposal-to-modernize-the-state-tax-system-characteristic/#respond Fri, 05 Nov 2021 14:15:00 +0000 https://imjustsayin.net/community-update-on-the-proposal-to-modernize-the-state-tax-system-characteristic/ Jim Smith, the former Papillion State Senator and Platte Institute’s director of strategy, was in Norfolk Thursday morning for coffee downtown. Smith, who is also president of the Blueprint Nebraska economic initiative, was in town for lunch Thursday to discuss tax modernization with a group of area chamber of commerce members and community leaders. He […]]]>

Jim Smith, the former Papillion State Senator and Platte Institute’s director of strategy, was in Norfolk Thursday morning for coffee downtown.

Smith, who is also president of the Blueprint Nebraska economic initiative, was in town for lunch Thursday to discuss tax modernization with a group of area chamber of commerce members and community leaders. He said while in the city center he noticed a mix of people including many young people.

“It’s a city that has a lot going on,” Smith said. “It really paves the way for our state in terms of growth, dynamism and unity. “

Comments from the former chairman of the Legislative Revenue Committee came over lunch and was consistent with his update on modernizing the tax structure. The goal is to make Nebraska more competitive, especially with young people between the ages of 18 and 34.

Blueprint Nebraska has developed a statewide strategic plan to grow the economy by attracting talent and encouraging business investment. This includes its vision for 2030 to “make Nebraska the most welcoming state in the Midwest for young people, talent, investment and commerce and a national model of continued growth and prosperity.”

Blueprint Nebraska plan proposes to reduce state income tax rates, completely eliminating state income taxes on income up to $ 50,000 – or $ 100,000 for married couples jointly filing – increasing property tax relief by an additional $ 2 billion over the next decade and eliminating Nebraska inheritance tax.

The changes would be funded by eliminating many sales tax exemptions, income tax deductions and corporate tax credits. The current sales tax rate would remain the same and the sales tax exemption for unprepared groceries and most medical services would remain in place.

Blueprint Nebraska’s alliance partners are the Platte Institute, Aksarben, and the Nebraska Chamber of Commerce.

Among other projections, it is expected to generate more than $ 2 billion in additional tax relief over 10 years and provide nearly $ 470 million in new revenue created by economic growth.

Among the questions asked was the type of reaction state senators have had so far.

Smith said the state has various tax proposals to consider, including a consumption tax that would propose eliminating taxes on property, income, sales, inheritance and inheritance.

“There are challenges there because the devil is in the details,” he said.

And with surplus income next year, there might be an interest in lowering tax rates, Smith said.

With only a 60-day session next year, Smith said, it could be that the Blueprint Nebraska initiative will be introduced next year but not be implemented until 2023.

“We have a new governor coming in,” Smith said. “I think maybe some of the lawmakers could mean, ‘We don’t want to tie (the new governor’s) hands. We do not want to implement any major tax reform. I wish I could tell you I’m an optimist, but I don’t think there’s much going to happen in 2022. I think it will happen in 2023, but until then I think we really need to control the narrative. of what we want the state to look like going forward.

Another reaction at the lunch included that removing the inheritance tax could be costly for counties and should be replaced if removed; and that state support should be increased for public schools, especially if property taxes are reduced.


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Court declares tax system discriminatory for backpackers https://imjustsayin.net/court-declares-tax-system-discriminatory-for-backpackers/ https://imjustsayin.net/court-declares-tax-system-discriminatory-for-backpackers/#respond Thu, 04 Nov 2021 13:35:44 +0000 https://imjustsayin.net/court-declares-tax-system-discriminatory-for-backpackers/ In a ruling that could impact future worker-vacationers and lead to significant “backpacker tax” refunds, the High Court of Australia has granted British national Catherine Addy an appeal against a decision by the Federal Court which has favored the Australian Taxation Office (ATO) “heavy” tax assessment of its income. The test case was conducted by […]]]>

In a ruling that could impact future worker-vacationers and lead to significant “backpacker tax” refunds, the High Court of Australia has granted British national Catherine Addy an appeal against a decision by the Federal Court which has favored the Australian Taxation Office (ATO) “heavy” tax assessment of its income.

The test case was conducted by the legal team of Ms Addy, who arrived in Australia on a working holiday visa in August 2015 and lived and worked as a waitress in Sydney until May 2017. In January 2017, a new one tax rate applicable to persons holding a working holiday visa has been promulgated and inserted in the Income Tax Rates Act 1986.

This new section applied a flat rate to tax 15 percent of the first $ 37,000 of an individual’s “taxable working vacation income” and a maximum tax payable of $ 5,500.

In the income year this took effect, Ms. Addy earned taxable income of $ 26,567 from her casual work as a restaurant waitress.

A British convention, to which Australia had subscribed in 2003, provided that nationals of the United Kingdom should not be subject in Australia to “any other or heavier taxation” than that which might be imposed on Australian nationals in the same circumstances. , in particular with regard to their residence in the country of the other.

In a unanimous decision, Chief Justice Susan Kiefel and Justices Stephen Gageler, Michelle Gordon, James Edelman and Jacqueline Gleeson concluded that on the basis of this
UK-Australia Convention – and Australia’s alleged violation of it – Ms Addy has been discriminated against on the basis of her nationality.

“The question is whether this heavier tax was imposed on Ms Addy because of her nationality. The short answer is “yes,” the High Court said.

“The tax rate was more onerous for Ms Addy, a UK national, than an Australian national under the same circumstances – doing the same job, earning the same income, under the same ordinary tax laws. “

The High Court ultimately concluded that Ms Addy’s situation in the 2017 income year, including her residence in Australia for tax purposes, was the same as that of an Australian national. In other words, she was doing the same job and earning the same amount from the same source, but had to pay more taxes.

The case began in December 2017 when Ms Addy received an amended notice for the 2017 income year. Ms Addy objected to this assessment on the grounds that her taxable income was contrary to the UK treaty.

The Tax Commissioner dismissed this objection and concluded that Ms Addy was an ‘Australian resident for tax purposes during the year 2017. [income] year ”and a“ working vacation worker ”receiving“ taxable working vacation income ”within the meaning of Tariff Act and was “therefore subject to tax rates”.

Ms. Addy brought an action in the Federal Court, which allowed the appeal and ordered that the matter be remitted to the Commissioner for a modified assessment accordingly. However, another appeal by the Commissioner before the full panel of the Federal Court overturned this first decision.

In response to the High Court’s decision to overturn the entire judiciary’s decision in favor of the commissioner, the ATO said it is currently reviewing the decision and will provide further guidance soon as soon as possible. , especially for vacationers who could potentially be affected. by this decision.

These workers are encouraged to check the ATO website for updated guidance “before filing or amending a return or filing an objection”. Employers should continue to follow rates in published deduction tables for working vacationers until the ATO website has been updated with additional guidance.

“The ruling is only relevant when the working holiday worker is both an Australian resident for tax purposes and Chile, Finland, Japan, Norway, Turkey, UK, from Germany or Israel, ”the ATO said in a statement shortly after the judgment.

“The tax residence status of a working holidaymaker is determined by the personal situation of the taxpayer. Most of the working holidaymakers will be non-residents in accordance with their goal of being in Australia for the holiday and working to support that holiday. “

Court declares tax system discriminatory for backpackers



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“A fairer tax system is needed so that shopping streets can compete with online shops,” says Bexhill MP https://imjustsayin.net/a-fairer-tax-system-is-needed-so-that-shopping-streets-can-compete-with-online-shops-says-bexhill-mp/ https://imjustsayin.net/a-fairer-tax-system-is-needed-so-that-shopping-streets-can-compete-with-online-shops-says-bexhill-mp/#respond Wed, 03 Nov 2021 15:35:37 +0000 https://imjustsayin.net/a-fairer-tax-system-is-needed-so-that-shopping-streets-can-compete-with-online-shops-says-bexhill-mp/ MP Huw Merriman in the Commons. SUS-200212-101415001 The city’s chamber of commerce said small businesses working from home and selling online are “discouraged” from expanding and acquiring premises due to “fear” of high business rates. The comments come as Bexhill and Battle MP Huw Merriman called for reform of the system during a debate in […]]]>
MP Huw Merriman in the Commons. SUS-200212-101415001

The city’s chamber of commerce said small businesses working from home and selling online are “discouraged” from expanding and acquiring premises due to “fear” of high business rates.

The comments come as Bexhill and Battle MP Huw Merriman called for reform of the system during a debate in the House of Commons.

Commercial rates currently vary depending on the size and location of the business premises and are based on the property valuation.

Mr Merriman said: “The UK has the biggest property taxes. It is a tax on jobs and a tax on businesses, and I would like them to be reformed.

“We have had a number of reviews and the last one referenced in last week’s budget does not bring in the sweeping reforms I want to see.

“I would love to see corporate tariffs replaced.

“I represent a constituency in Sussex that is dependent for employment on small businesses in recreation, tourism and retail. Corporate rates are a tax on businesses and jobs and lead to uncertainty. “

Speaking after the debate in the House of Commons, Mr Merriman added: “We need to make the tax system fairer to ensure that all businesses contribute fairly and so that our shopping streets can compete more favorably with online-only stores. .

“In order to do that, we need to make sure that the tax is based on turnover or sales rather than ownership and that is what I have called for in the support for small business debate.”

Howard Martin, President of the Bexhill Chamber of Commerce, said: “The Bexhill Chamber of Commerce has long advocated for a complete overhaul of the trade rate tax system.

“As a property tax, it stifles investment and restricts the growth of small businesses. A very successful micro-business working from home and selling online is discouraged from expanding and taking premises due to fear of high commercial rates.

“The local government’s rate relief system is excessively complex and time consuming. We would like to see a turnover tax system in which business taxation is based on turnover rather than the size of premises, thus creating a level playing field for everyone, from Amazon smaller businesses operating from home.

“It could easily be linked to the VAT threshold to completely exclude some small businesses.

“We fully support Huw Merriman in this campaign and hope it will be successful as soon as possible. Businesses need all the help they can get.


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A Plan for a Better Nebraska Tax System | Chroniclers https://imjustsayin.net/a-plan-for-a-better-nebraska-tax-system-chroniclers/ https://imjustsayin.net/a-plan-for-a-better-nebraska-tax-system-chroniclers/#respond Wed, 03 Nov 2021 11:00:00 +0000 https://imjustsayin.net/a-plan-for-a-better-nebraska-tax-system-chroniclers/ Three years ago, near the end of my unicameral tenure, a group of leaders from across the state asked me to help craft a plan for economic growth and competitiveness, from Scottsbluff to Omaha and McCook. to Valentine. Through surveys, statewide public forums, and ideas from hundreds of initiative volunteers, we developed Blueprint Nebraska, a […]]]>

Three years ago, near the end of my unicameral tenure, a group of leaders from across the state asked me to help craft a plan for economic growth and competitiveness, from Scottsbluff to Omaha and McCook. to Valentine.

Through surveys, statewide public forums, and ideas from hundreds of initiative volunteers, we developed Blueprint Nebraska, a 15-point plan to make Nebraska communities prosperous and more. attractive to people, business investment and growth.

These 15 initiatives have an impact on different economic areas, including agriculture, broadband, housing, diversity, etc. But each comes down to promoting high-wage, high-growth industries, improving our workforce, investing in infrastructure that connects our communities, and building leaner, more efficient and more efficient government.

You can read more about these recommendations at Blueprint-Nebraska.org.

As part of this process, Nebraskans identified tax structure as one of the top three concerns for individuals and businesses. Nebraska’s current tax system places too heavy a strain on the workforce, housing, technology, and investment we need to grow.

The 21st the economy of the century is increasingly service-based and mobile. Nebraska’s tax system must be modernized to align with these trends and to increase competitiveness and fairness.

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With input from Nebraskans, academic tax research, and economic analysis from Regional Economic Models Inc., Blueprint Nebraska has developed a new framework for tax modernization that achieves three bold, non-partisan goals.

1. The Nebraska Blueprint Tax Plan rebalances the tax code to increase the workforce. Individual taxpayers earning less than $ 50,000 a year would pay absolutely no state income taxes, new student loan relief credits would recruit graduates in high-demand fields, and $ 2 billion would be added. ten-year land tax relief.

2. Wealthier Nebraskans would pay more than they do today, but at competitive tax rates that reward investment. The plan contains three revenue-raising provisions that conservative and progressive tax experts agree on: ending sales tax exemptions, eliminating tax deductions and reducing corporate tax credits. Sales taxes would not increase and would not be applied to groceries or most exempt medical purchases. State revenues would increase, but at lower tax rates more comparable to our peer states.

3. Independent economic analysis shows that the Blueprint Framework benefits all income groups, communities and industries statewide. In all parts of Nebraska, taxpayers earning less than $ 50,000 would see, on average, a reduction of about 20% in the tax burden. And with higher wages, lower property taxes, and no county estate taxes, the personal incomes of middle-class Nebraskans earning more than $ 50,000, but less than $ 200,000, would increase by $ 10.4 billion. additional dollars by 2031.

Until the end of 2021, the Platte Institute will hold town halls and sessions statewide to present and explain the tax modernization framework and why it is an important part of a larger economic plan for the future. of Nebraska.

Of course, major change is never easy. Asking Nebraskans to pay sales tax on currently exempt purchases is new and different. But now we have a model for the best tax system that we can create in return. We envision a state where average Nebraskans pay little or no income tax, landowners and landowners get more tax relief, and all of our loved ones have the same opportunities as residents of 45 other states, where there is no inheritance tax.

Building this fairer and more balanced system will place taxes on a lower level of economic concern for Nebraskans. It will also strengthen our many other efforts to retain and attract future leaders who will help make Nebraska an even more welcoming state.

Jim Smith, of Papillion, is President of Blueprint Nebraska and Director of Strategy at the Platte Institute.


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Expert advice on delays in tax system changes https://imjustsayin.net/expert-advice-on-delays-in-tax-system-changes/ https://imjustsayin.net/expert-advice-on-delays-in-tax-system-changes/#respond Tue, 02 Nov 2021 09:30:00 +0000 https://imjustsayin.net/expert-advice-on-delays-in-tax-system-changes/ Posted: 9:30 a.m. on November 2, 2021 Making Tax Digital (MTD) for income tax has been delayed for a year, alongside proposed changes to aligning corporate tax dates with the fiscal year of the treasury. Graham Doubtfire, Tax Partner at Scrutton Bland, explains the latest developments. Graham Doubtfire, Tax Partner at Scrutton Bland – Credit: […]]]>

Posted:
9:30 a.m. on November 2, 2021



Making Tax Digital (MTD) for income tax has been delayed for a year, alongside proposed changes to aligning corporate tax dates with the fiscal year of the treasury. Graham Doubtfire, Tax Partner at Scrutton Bland, explains the latest developments.


Graham Doubtfire, Tax Partner at Scrutton Bland
– Credit: Scrutton Bland

Who will it affect?

The delay means more than four million businesses, freelancers and owners with incomes of over £ 10,000 a year will have their MTD start date postponed from April 2023 to April 2024.

At this point, they will need to keep accounting records in digital form and file quarterly updates with HM Revenue & Customs instead of a single annual update. MTD for general partnerships has been pushed back until April 2025, with no date given for other types of limited partnerships such as LLPs.

Why has MTD been delayed?

The digitization of the tax system through Making Tax Digital (MTD) has been widely described as the biggest tax change in a quarter of a century, but the difficulties faced by businesses in the wake of the Covid-19 pandemic have created challenges additional at all levels. .

The delay will provide respite for small businesses and self-employed people with incomes over £ 10,000, many of whom have expressed concern over the extra work this administrative change will bring. We always recommend that you speak to one of our tax advisers who can give you professional advice and practical help on what needs to be done to become BAT compliant.

The reform of the base period has also been delayed

The Treasury also announced a year of delay in the planned modification of the “base period” of tax returns. This reform would have forced the self-employed and members of partnerships to align their accounting dates with the April date used by the Treasury and many others.

The proposed change of date for the base period would have meant, in many cases, that income tax had to be paid earlier than the current system, and despite the potential funds the government could have raised, it decided to postpone the move until April 2023.

The postponement of the change in the base period will no doubt be welcomed by many, but remains a change that could occur and needs to be incorporated into business plans. The surprising aspect is that despite the postponement of MTD for income tax until 2024, plans to change the base period appear to remain for 2023, which is likely to be the most disruptive aspect. for business owners who may well have an accounting period that does not coincide with the end of the tax year.

Our tax team can help you predict these additional taxes and suggest planning opportunities that will help reduce the amount of tax owed. This can include things like using multiple tax breaks and adjusting the capital expenditure schedule so that the capital allocations are used in the correct accounting period.


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