US – IRS Issues Virtual Currency Tax Guidance
The IRS has published guidance in respect of the use of Bitcoin and similar digital currencies. These are to be regarded for federal tax purposes as property rather than currency. This should remove uncertainty about the tax treatment of these
See MoreUS – IRS Extends Colorado Storm 2012 Tax Relief Deadline
The deadline for taxpayers in Colorado to make a decision on claiming disaster losses has been extended to 15 October 2014. The disaster relief relates to the severe storms and flooding that also gave rise to landslides in September 2013. Taxpayers
See MoreUK Court of Appeal rules on payment of corporation tax on VAT repayments
In a case concerning an online retail group in the UK the Court of Appeal has determined that the taxpayer must pay corporation tax in respect of VAT repayments received. The consequence of this victory for the tax authority is that many taxpayers
See MoreSpain – New tax measures for corporate debt refinancing and restructuring
Royal Decree Law 4/2014 which is effective from 9 March 2014 contains provisions in respect of corporate debt restructuring. Among the issues covered in the law are the treatment for tax purposes of capital increases through the capitalization of
See MorePhilippines Legislates To Cut Back Income Tax Relief
In the Philippines there is some concern in the Department of Finance (DOF) that tax relief is being granted to applicants without sufficient consideration of their entitlement. The Department is therefore keen for legislation to be passed to
See MoreSouth Korea to Rein In Tax Relief to Fund Welfare Reform
Under the Framework Plan for Tax Expenditures for the year 2014 South Korea is committed to amending the system of tax relief. This could result in the abolition of some tax incentives and taxpayers need to keep a close eye on developments as they
See MoreUnited Kingdom – Conservatives keen to ease IHT
The UK Prime Minister has confirmed that his party still holds the view that the inheritance tax threshold should be raised to GBP 1 million, and that this is likely to be addressed in the party’s manifesto for the next election which is to take
See MoreSouth Africa – tax guide for 2014 / 2015
South Africa has prepared a “tax guide” that includes, among other discussions, an analysis of tax changes for individual and corporate taxpayers, as presented in the 2014 budget speech (February 2014). The tax guide also focuses on the effects
See MoreSingapore – 2014 budget analysis published
Following the Singapore’s 2014 budget statement (presented 21 February 2014), Singapore has prepared an analysis of changes and initiatives in the 2014 budget. This will help taxpayers to digest the changes announced in the budget and allow them
See MoreCanada: No tax rate changes in 2014 budget
In Canada the 2014 budget for Saskatchewan was published on 19 March 2014. There is no increase in the general rate of corporate or individual tax but the dividend tax credit rate in the province is to increase. There would also be a reduction in
See MoreRussia Plans Crimean Special Economic Zone
Russia has confirmed that the process of making the Crimea a part of Russia is likely to require amendments to the tax system and this may involve the provision of temporary tax incentives for companies located in the Crimea. Other changes would
See MoreUS: Important information regarding intra-group services
The regulations of Treasury and IRS final intercompany service were issued on 31 July 2009. Some permitted transfer pricing methods for services are similar to the OECD methods but the services cost method and shared services arrangements are also
See MoreSouth Korea – Seeks Tax from Gold Trading
South Korea is launching the first spot market for gold, in an effort to eliminate underground transactions in gold and boost revenue from tax. The spot market is open to any qualified gold dealer such as an importer or a wholesale or retail
See MoreUS – Tax Foundation Says IRS Mandate Should Shrink
The Tax Foundation (TF) in the US has recently recommended that, as the primary function of the Internal Revenue Service should be to collect tax revenue, it would be best to move the functions of refundable tax credits outside the tax code and
See MoreUS Committee Considers Middle Class Tax Burden
In the US the Senate Finance Committee has been considering policy initiatives that could help to support and expand the middle class. These measures could include improvements to the education system, initiatives to increase the level of savings
See MoreUnited Kingdom: Supreme Court Rules in Travel Agent VAT Case
A recent UK case involved the issue of whether the taxpayer was acting as an intermediary or was subject to the special VAT scheme for travel agents. The UK legislation is based on EU rules that require member states to apply the special scheme for
See MoreUK Budget announcements 2014
The UK budget announcements on 19 March 2014 include a significant change to the pension regime. Currently, most people must invest their pension fund in annuity after receiving a certain percentage of the fund as a lump sum tax free payment.
See MoreUganda – Tax collection shortfall linked to corporation taxes
Uganda has reported a deficit in tax collection for the half year of 2013/2014. This deficit appears to result from problems in the tax administration’s tax collection methodology and the main cause of the problem is attributable to corporation
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