If dealing with one tax administration isn’t bad enough, try the United States, where of course tax doesn’t stop at federal level because there are 50 states also waiting to ensnare unwitting taxpayers. Large companies operating across national and sub-national boundaries are largely able to cope with corporate tax compliance issues by employing teams of tax experts to figure out what the firm’s tax obligations are and the best ways to fulfill them. However, for individual mobile workers, this issue can be very daunting and can even stretch the mental resources of companies that employ them. As the National Association of Manufacturers recently observed, the “increasingly mobile workforce is subject to an ever-changing hodgepodge of state tax laws, creating a compliance and fiscal nightmare for both companies and their employees on temporary assignments to other states.”
And if this problem currently … Read More »
You’d think in this new age of transparency, governments would be more accountable for their actions than they used to be. But apparently not. Which is why we have institutions like the Government Accountability Office (GAO) in the United States, to augment the work of Congress in holding the Government to account. And by all accounts, it seems to be doing a fairly good job, including in the area of tax administration. Indeed, barely a month goes by without the GAO calling out the Internal Revenue Service and other agencies for such things as lapses in protecting taxpayer information, ongoing vulnerability of systems to fraud, and various other forms of maladministration and wastage. While the GAO has no legal authority as such, the fact that it is able to expose administrative shortcomings is often enough in itself to bring about … Read More »
To Germany now. And what’s this? A proposal by the Finance Minister to cut taxes? There must be an election coming up! And indeed there is. Elections to the Bundestag, the lower house of parliament, are due to take place no later than October 2017, and the seemingly unflappable, rock-like Angela Merkel is perhaps facing the first ratings crisis of her long stint in power.
Germany has a budget surplus and is therefore well-placed to afford tax cuts. But while the EUR15bn (USD16.9bn) figure mentioned by Finance Minister Schäuble looks impressive, tax cuts worth that would be equal to just 0.4 percent of Germany’s USD3.5 trillion gross domestic product – they’re small fry, in other words.
It’d be unwise to expect a reversal of Germany’s policy of fiscal responsibility and restraint. The migrant crisis has pushed up expenditure, and Germany remains ever-conscious of … Read More »
It’s quite a feat on the tax front that war-torn Ukraine has a substantially better tax system than Brazil, according to Paying Taxes. But at 107th in the league table, it is an understatement to suggest that there is still ample room for improvement. But, unlike Brazil, Ukraine is at least making an attempt to remedy the problem. The launch of a public consultation on the state of the tax system, intended to supply the Government with ideas on how things can be improved, is the latest in a number of recent initiatives designed to ease the country’s tax and regulatory burden. Other examples include the launch of a new customs management system earlier this month, the creation of an expert working group on tax reform in June, and the approval of draft tax administrative reforms in April, aimed at bringing … Read More »