South Australian Premier Jay Weatherill has argued for broadening the GST base to include all financial services, something also floated by the Financial System Inquiry. The idea has merit, although the complexity of the issue makes assessing the consequences and merits difficult.
One of the 17 presidential candidates recently said, “I can write a tax code in three pages.” Carly Fiorina is not alone among her fellow 2016 presidential contenders in advocating tax reform and simplification of the tax code. However, none is quite so ambitious.
I suppose that theoretically one could write a tax code on three sheets of paper that would raise enough revenue to fund the US government. Let us consider that challenge for a moment by measuring a baseline first. Then we can consider the issues of simplification.
Last month, England became the latest government – and last among members of the UK – to pass a policy to combat the recent rise in the use of disposable plastic shopping bags, in its case a five-pence charge for each one.
While English newspapers warned that the new policy would create chaos, England is by no means the first to consider such a controversial policy. Several countries across the world and local governments have taken steps to address the environmental consequences of increased plastic bag use through regulation.
Companies such as Apple, Starbucks, and Amazon are well known for legally using international law to their advantage when it comes to tax. Now a small Welsh town is mimicking their tactics. Independent traders in Crickhowell are moving their businesses “offshore” to avoid paying tax.
On Thursday, Australia and Germany signed a new tax treaty, seen by many as the first step towards growing trade and investment between the two European nations. There is a need for greater closeness with regard to the tax systems of these nations in order to help prevent rampant multinational tax evasion.
The European Network on Debt and Development (also known as “Eurodad”), a network of NGOs, has issued a recent report identifying European nations that have served as havens for tax evasion and money laundering. According to the report, Germany, Luxembourg, and Spain are among the most egregious offenders. By turning a blind eye, they support “an unjust global tax system.” The report went on to say that these nations “offer a diverse menu of options for concealing ownership and laundering money.”
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.
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.
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.
