Individual Taxation


Canada Facilitates Home Office Deductions

Posted on December 18th, by Global Tax Weekly in Individual Taxation. No Comments

The Canada Revenue Office (CRA) has simplified the way employees can claim the home office expenses deduction and expanded eligibility for the 2020 tax year.

On December 15, 2020, the CRA said that employees who worked from home more than 50 percent of the time over a period of at least four consecutive weeks in 2020 due to COVID-19 will now be eligible to claim the home office expenses deduction for 2020. The use of a shorter qualifying period will mean that more employees can claim the deduction than would otherwise have been possible under longstanding practice.

The CRA also said that a new temporary flat rate method will allow eligible employees to claim a deduction of CAD2 for each day they worked at home in that period, plus any other days they worked from home in 2020 due to COVID-19, up … Read More »


Germany And Luxembourg Help Frontier Workers

Posted on November 5th, by Global Tax Weekly in Individual Taxation. No Comments

Germany and Luxembourg recently announced that they had reached a new agreement on the treatment of frontier workers who may be caught between their respective tax systems as a result of the changed working practices necessitated by the pandemic.

The authorities explained that they have signed a new agreement providing for concessionary tax treatment for frontier workers during the COVID-19 crisis which confirms that employees working from home due to the COVID-19 crisis may remain taxable in the state in which they exercised their professional activity before the health crisis.

This agreement applies to income from employment, including from public sector employment, and replaces the cross-border worker deal that had been agreed in April 2020. The new agreement applies from March 11, 2020, until December 31, 2020, and will be automatically extended on a monthly basis until it is cancelled by one … Read More »


Jersey Belatedly Provides Equal Tax Rights To Married Women

Posted on February 13th, by Global Tax Weekly in Individual Taxation. No Comments

Married women will soon be able to discuss their tax affairs with the Jersey tax authority, without their husband’s permission, following Parliamentary approval of an update to Jersey’s tax rules.

On February 4, lawmakers approved the proposed change by 40 votes to two, with two abstentions.

Under the current rules, married women are prevented from discussing their tax affairs with Revenue Jersey without their husband’s permission, with married women only permitted to file their own tax return if they have opted for a separate assessment.

Dragging things kicking and screaming into the modern era, from January 1, 2021, both spouses and civil partners will be able to contact Revenue Jersey to discuss the couple’s tax affairs and update their tax information.

The changes will mean that in 2022 (for the 2021 tax year of assessment), the couple will still receive a joint tax return, … Read More »


Slovenia Announces Tax Changes

Posted on November 21st, by Global Tax Weekly in Individual Taxation. No Comments

In Slovenia, the government recently announced plans to implement sweeping changes to corporate, personal, and capital gains taxes.

Under proposed legislation, a corporate minimum tax of seven percent will be introduced. This is intended to ensure that companies which substantially reduce their tax liabilities by utilizing tax credits and offsets, including loss carryforwards, pay a minimum level of corporate tax.

For personal income tax payers, the amendments increase tax thresholds and reduce the tax rates for the second and third tax brackets by one percent to 26 and 33 percent.

The proposed amendments also include changes to the rate of taxation for capital income, rental income and income from derivatives, which will increase from 25 to 27.5 percent. For capital gains and derivatives income, the tax rate falls depending on the length of time an asset is held. For assets held for between … Read More »


Individual Income Tax Changes In Irish Budget

Posted on October 18th, by Global Tax Weekly in Individual Taxation. No Comments

We often refer to Ireland’s corporate tax advantage when discussing international tax issues and the competition for foreign investment. Less discussed beyond Ireland’s shores, I’m sure, is its individual income tax disadvantage.

While Ireland’s top rate of personal income tax at 40 percent (recently reduced from 41 percent) is broadly in line with other European countries, it kicks in at a relatively low amount of income (EUR33,800 in 2017). When Universal Social Charge – brought in as part of Ireland’s fiscal retrenchment deal with its bailout creditors – is factored into the equation, this has resulted in a marginal tax rate of over 50 percent for some, which places Ireland among the Nordic nations in terms of individual tax.

By comparison, the UK’s higher 40 percent rate of tax applies to income exceeding GBP45,000 this year, which is the equivalent of more … Read More »


Controversy Surrounds Canadian Tax Reform Proposals

Posted on October 10th, by Global Tax Weekly in Individual Taxation. No Comments

While the US Government is attempting to reduce the tax burden on small businesses, Canada seems to want to go the other way. At least its Government does.

Governments these days are fond of claiming their openness, and their willingness to listen to taxpayers. In Canada’s case, the Government says it will ”act on what it has heard” during a consultation on controversial reform of tax planning rules surrounding the use by middle- and high-income taxpayers of corporate entities as tax planning vehicles.

But even without an official consultation exercise, the Government would have been hard-pressed not to have noticed the stir these proposals caused within Canada’s business community. Barely a week has gone by since the draft legislation was published that somebody hasn’t spoken out in vociferous tones against the reforms. Indeed, the small business community’s “spontaneous, grassroots response,” as Dan Kelly, President … Read More »


Brazil Extends Tax Amnesty

Posted on September 13th, by Global Tax Weekly in Individual Taxation. No Comments

Some things in the world of tax seem to never change however. Particularly governments’ apparent fixation with tax amnesties. Brazil is the latest in a long list of jurisdictions that have announced an amnesty-related development of one sort or another recently. In Brazil’s case, it has decided to extend the deadline for its latest disclosure scheme by one month to September 29.

The success or otherwise of an amnesty is likely to depend hugely on its terms and conditions – too much stick and taxpayers might stay below the radar, too much carrot and the rule of law could be undermined. Still, I don’t remember seeing too many headlines recently proclaiming that a disclosure scheme has been a roaring success. Indeed, the word “flop” is more readily used to describe the outcome of a tax amnesty. And notable flops have been reported in … Read More »


Denmark Looking To Cut Taxes

Posted on September 6th, by Global Tax Weekly in Individual Taxation. No Comments

Denmark is a benchmark country. It is the archetype of a high-tax, high-spend northern European economy. So, when politicians in various parts of the world debate fiscal policy, they sometimes ask the electorate if they would rather live in a country like Denmark in preference to their own i.e. would they be prepared to put up with high taxes in return for a welfare state in which nobody is left behind economically. Indeed, the small Scandinavian nation, barely twice the size of Massachusetts, became an unexpected focal point in the last election campaign, and was held up by Democratic candidate Bernie Sanders as a model of social democracy.

Those on the right tend to argue of course that prosperity and individual liberty go hand-in-hand with low taxes and a small government. Singapore, for example, would be much closer to their ideal … Read More »


Italian Revenue Agency Reaches Agreement With National Soccer Federation

Posted on May 10th, by Global Tax Weekly in Individual Taxation. No Comments

This week, I’ll be looking at the often-murky world of soccer. It is the planet’s most-watched sport, but it’s never far from controversy, as the FIFA corruption scandal demonstrated. It also has its fair share of run-ins with the taxman too, with the recent raids of two prominent English soccer clubs the latest such development.

However, this is an issue of wider significance, rather than one confined to the tax controversies at the top end of sport. And, appropriately enough, it also touches on the subject of tax competition too.

Some governments are more than willing to offer tax concessions to attract highly skilled – and highly remunerated – workers and investors to their shores. But, to my knowledge, such concessions rarely seem to be extended to professional sports people, including in the soccer world.

The issue of executive pay, the king’s ransom that some … Read More »


Greece To Lower Personal Income Tax Threshold By 2020

Posted on April 20th, by Global Tax Weekly in Individual Taxation. No Comments

How exactly do you solve a problem like Greece? Well, all I can say is, I’m glad I’m not the one who has to try! It does seem fairly obvious though that part of the problem is that Greece doesn’t collect enough tax.

Now, I’m all for low taxation of course. And I think raising rates of tax in Greece will, for the most part, be counterproductive. Because not only will this endanger the nascent economic recovery, but probably encourage yet more tax avoidance and evasion in a country that seems to have transformed tax dodging into an art form – the amount of tax evaded each year in Greece can be as much as 14 percent of gross domestic product, according to EY.

What seems to be the root of the problem is a narrow tax base and relatively high tax rates. If … Read More »





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