Accounting News

As the economic crisis driven by the pandemic has continued, a troubling trend in tax policy discussions has arisen. It is common these days to hear finance ministers refer to tax increases that would be narrowly targeted at a particular business model or industry simply based on the fact that those businesses appear to be
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A recent report from the Organisation for Economic Co-operation and Development (OECD) on tax reforms during the past year reveals a tendency towards higher property taxes, often in the form of base broadening, tax rate increases, or both. Even though countries have increasingly targeted property taxes as a source of revenue, on average, they still
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In 2017, Value-Added Tax (VAT) accounted for 62.3 percent of consumption tax revenues in the OECD on average, making it an important source of government revenue. The European Commission (EC) recently published the latest version of their annual report on the “VAT Gap” in 2018 for the 28 Member States of the European Union at
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In an increasingly globalized world, many individuals and corporations work and do business abroad. As a result, jurisdictions need to define how income earned in foreign countries is taxed. Otherwise, income could be taxed in more than one country, resulting in double taxation. To avoid this, countries negotiate double tax agreements (DTAs). Tax treaties usually
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High-tax countries create an incentive for companies to finance investments with debt because interest payments are tax-deductible, which is usually not the case for equity costs. This encourages global businesses to lend money internally from entities in low-tax countries to entities in high-tax countries. Tax savings in high-tax countries can exceed the increased tax paid
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High-net-worth individuals are being identified by tax policymakers these days in various ways. While Portugal recently approved a 10 percent tax on foreign pension income, putting an end to the tax-free regime for foreigners approved during the financial crisis, Greece is looking into attracting foreigners with tax reductions. In order to transfer their tax residency
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Keep this checklist in mind as you find someone to manage your books. May 5, 2020 3 min read This story appears in the April 2020 issue of Entrepreneur. Subscribe » 1. Stress Your Unique Needs From Frank Leggio, audit & assurance partner, Deloitte & Touche You need a firm that can support your specific operation
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May 12, 2020 5 min read Opinions expressed by Entrepreneur contributors are their own. For most people, personal-finance mistakes affect only themselves. For entrepreneurs, a personal-finance slip-up can have far-reaching consequences. People who get into tight financial spots while running their businesses must make difficult choices about which bills to pay, which opportunities to let
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Many businesses around the world operate in more than one country, making them subject to multiple tax jurisdictions. To prevent businesses from minimizing their tax liability by taking advantage of cross-country differences in taxation, countries have implemented various anti-tax avoidance measures, one known as Controlled Foreign Corporation (CFC) rules. CFC rules apply to certain income
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New research on the impact of energy taxes and the EU’s cap-and-trade system has been released. Both articles were published by the American Economic Journal in 2020. In “Energy Cost Pass-Through in US Manufacturing: Estimates and Implications for Carbon Taxes,” the authors study the welfare effects of changes in energy input costs—such as energy tax
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Countries around the world are experiencing a sharp downturn in economic activity as an impact of the COVID-19 health crisis. To cushion the immediate liquidity effects of containment and mitigation policies, governments responded rapidly with emergency tax and fiscal policy measures. As these short-term measures are starting to expire, policymakers are increasingly looking at mid-
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Up until now value-added taxes (VAT) were considered to be highly regressive taxes. Numerous studies have found that VAT appears to be regressive when measured as a percentage of current income. Nevertheless, a recent OECD paper used household expenditures microdata from 27 OECD countries to reassess this often-made conclusion that VAT is regressive. Value-added taxes
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As with capital investment, businesses cannot immediately deduct the full cost of inventory purchases against taxable income. Instead, the cost of inventories is deducted when sold. The deduction amount depends on the inventory valuation method. Today’s map shows which of the three inventory valuation methods European OECD countries require their businesses to use for tax
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Key Findings The fiscal responses to the COVID-19 pandemic will require policymakers to consider what revenue resources should be used to fill budget gaps. Tax policy experts have proposed wealth taxes, (global) corporate minimum taxes, excess profits taxes, and digital taxes as opportunities for governments to raise new revenues. Instead of designing novel taxes, however,
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