The overflowing rubbish tips of Lagos, the Pacific Ocean garbage patch, and the huge electronic graveyard of Guiyu, China might seem irrelevant to Australia’s current debate over reforming the Goods and Services Tax. Yet all three of these far-flung places are testament to the world’s incessant habit of buying stuff and then later throwing it away – and Australian consumers are just as culpable as any.
Australia is engaged in an ongoing debate about the fairness of the superannuation system. Those on the highest incomes are extracting the greatest and an unfair advantage from tax benefits currently available. This problem of perception is inevitable in a system where contributions come out of our pre-tax income.
There was a time when, from a tax perspective, South Africa’s “mini budget” used to be a non-event. The main emphasis was on the annual budget speech delivered in February each year when they announced tax policy proposals.
India is moving towards introducing a Goods and Services Tax (GST). The GST would be a multistage comprehensive value added tax (VAT) encompassing both goods and services. Given the federal structure of India and the fact that taxation powers have been constitutionally assigned to different governments, the introduction of a GST would be a major indirect tax reform since independence. Both the federal and state governments will have concurrent taxation rights at every stage of production and distribution.
Credit card surcharging is in the news. Apparently, consumers are going to benefit by new surcharge limits that will be imposed on retailers. However, what is surcharging? In addition, why does it need limits? Moreover, is surcharging a good or a bad thing for customers?
What is a credit card surcharge?
When you buy something from a retailer, you usually have a choice of payment instruments. You can pay by cash, direct debit (EFTPOS), credit card, or sometimes more exotic options like BPAY or PayPal.
With tax reform back on the agenda, the future of dividend imputation remains uncertain.
Allowed in Australia since 1987, dividend imputation ensures companies and shareholders don’t end up paying tax on the same income, commonly known as “double taxation”. It means local company dividends come with a tax credit.
There is a perception among some that the early benefits of dividend imputation have been eroded due to the increasing globalisation of markets, and the dominance of international investors in determining share prices.
Recently, the Economic Society of Australia polled 49 prominent Australian economists on the issue of GST reform.
They asked each member of the panel whether they agreed with the following statement:
Increasing government revenue collected through the Goods and Services Tax (GST) by removing exemptions (such as food, health, and education) is better than achieving the same extra revenue by increasing the GST rate while retaining the existing exemptions.
The government has today accepted virtually all of the recommendations of the expert panel behind last year’s Financial System Inquiry. Clearly, we can argue about some, and people would prefer to pick and choose depending on their predilections, but rather than allow the reform process to be unpicked by stealth, the government has opted to support its experts. That is a welcome change.
Corporate tax policy says more about power than anything else does. Corporations seek to minimise the tax they pay – and, while governments ordinarily try to maximise their revenues, in the case of transnational corporations (TNCs) they understand that they have to tread carefully. Governments have come to accept that they hold fewer and fewer cards as capital has become more mobile.
American companies avoid paying taxes by holding over $2 trillion in assets outside of the country; a new study shows.
A total of $2.1 trillion are abroad, according to a report co-authored by Citizens for Tax Justice and the U.S. Public Interest Research Group Education Fund. This money is largely held abroad to avoid paying taxes on corporate profits in the United States, helping companies escape paying about $620 billion to the U.S. government.
