Taxes

An Angry Apple


The EU’s ruling that Apple must pay the Irish tax authorities €13 billion in back taxes appears to be a victory for fair tax campaigners. The amount is equal to about 30% of the total tax take in Ireland, or almost €7,000 for every employee in the country.

However, at a macro level, the ruling is profoundly misguided. It is bad news for Apple, the Irish government and the EU’s relations with the US.

Is China's VAT Reform Helping the Economy?


As of 1 May 2016, China has fully replaced its business tax with a value-added tax (VAT) across all industries in a bid to streamline tax structures and reduce the tax burden. China first established the current VAT system back in 1994, applying it to the sale or import of goods as well as processing and repair services. The business tax was applied to other services transactions, intangible assets and real estate.

Australia's Coalition Government has a Plan to Deal with Tax Avoidance


Although the Coalition government has been reinstated, it is still faced with the problem of dealing with multinational tax avoidance. The issue escaped a lot of scrutiny during the election campaign and the current measures designed to address the issue fail to deal with the most common form of avoidance - interest deductions on intra-group debt.

Tax 'Super Changes' are Taxing


Any change in taxation invariably raises questions about distribution. Who loses, who wins – and who loses most – will always be an issue. However, such analysis should be applied with care, lest it miss the bigger picture.

Can Company Tax Cuts Really Benefit Australians?


A long-term plan to cut the company tax rate from 30% to 25% is the centrepiece of the Coalition’s economic plan for jobs and growth. The Coalition maintains the change will boost GDP by more than 1% in the long-term, at a budgetary cost of $48.2 billion over the next 10 years.

Africa's Lost Billions


Over the last 50 years, African countries have lost about $1 trillion to illicit financial flows. This equates to around $50 billion a year and is equivalent to all the official development assistance received by the continent over the same period.