Taxation Law Articles

If you are a business company intending to open a new business here in Ethiopia or have an already established business, here is a list of taxes imposed on business companies operating in Ethiopia.

This article will briefly discuss the advantages and disadvantages of the two common structures – share purchase or asset purchase arrangements.

China State Administration of Taxation issued on 20 February 2010 the Provisional Measures for Tax Collection and Administration for Foreign-Enterprise Representative Office (“Provisional Measures”). The Provisional Measures bring significant changes to the existing taxation rules and should have significant implications on the tax liabilities of representative offices.

Both the Delaware and Vermont captive insurance statutes are modern statutes, with leading edge provisions, carefully tended by thoughtful and committed local captive insurance communities.

Tax law in U.S. is getting very stringent over the foreign bank accounts holders. New administration in U.S. is keeping strict vigil to undisclose the foreign bank accounts. So every foreign bank account holder should know the details or take advises from an expert to stay away from any kind tax related disputes.

The term “beneficial owner” has been used in various tax treaties between mainland China and other foreign countries (including the double taxation arrangements with Hong Kong and Macao) and the status is often a pre-requisite for non-resident enterprises claiming preferential tax treatment in the PRC.

What is a CFC? How is the Israeli tax authority treats these type of corporations after the new (132) amendment all in the following article.

The following article will explain the changes in the Israeli income tax ordinance regarding trusts. Through it we will stand on the main affects the amendment has on those who have established or planning on establishing a trust that has any relations to the state of Israel weather by having an Israeli settlor or an Israeli beneficiary.

VAT applies to all individuals and enterprises engaged in supplying goods or rendering services or in importing goods (not services). Provision of services that are not covered by VAT may be subject to Business Tax (see below).

The much awaited Goods and Service Tax was proposed to be introduced on 1st April 2010 by the Finance Minister. However, the deadline of April 1, 2010 is likely to be missed due to differences among states and the Center over various aspects of GST. The principal broad based consumption taxes that the GST would replace are the CENVAT & the Service Tax levied by the center and VAT levied by the states. All these are multi stage Value added taxes.

The author describes what GST is and its effect on consumers.

Which business entity is the best from a legal, tax, and business standpoint? In this article, we discuss three major points that business owners should touch upon when considering a choice of entity.

The new PRC Enterprise Income Tax Law (the “New Law”) , which took effect on January 1st 2008, levels the playing field between foreign invested enterprises (“FIEs”) and domestic enterprises. The New Law sets an enterprise income tax (“EIT”) rate of 25% applicable to both FIEs and domestic enterprises.

The authors explain the possibilities of tax relief for an average client as he seeks tax help from the IRS. He is single and owes the IRS $80,000 in back taxes for tax years 2000 through 2003. He thinks he probably owes some money to the State of Ohio and he currently makes $40,000 per year. He just received a Notice of Levy, which states that the IRS plans to garnish his wages. He knows he will be fired, if his employer finds out. What can he do?

Payment to the executor's or fiduciary of an estate is taxable income on Line 21 "other income" on the Form 1040. This income isn't subject to self-employment tax unless the executor is in the routine business of handling estates or unless there was an actual business in the estate which the executor was paid to run (see Publication 559 as a google search).

HMRC announced on 15 October 2009 that anti-avoidance legislation will be included in the next Financial Bill, but which will have retrospective effect from 15 October 2009, and which affects debt buybacks.

Following up on my recent articles about Ontario limited partnerships, what they’re all about, how a limited partner can lose their limited partner status, how a limited partnership is not a separate legal person, and securities laws compliance, this article discusses certain tax considerations for limited partnerships.

The article reflects on the outcomes of the summit G20, which occurred in April 2009. White, grey and black lists of jurisdictions are described and analyzed. Latest tendencies in the offshore world are represented.

The article was done to follow the new amendments in the Taxation system of Kuwait , especially when Kuwait brought the rate of taxation to 15% only after it was 55% for foreign companies. The article is focused on the practical applications for the foreign companies , when they do business in Kuwait ...

One sided lease agreements in the Philippines are the rule of thumb and don’t imagine for a second that they are in favor of the lessee.

There is a significant hidden federal tax lien that may attach to real property conveyed by a foreign Seller. It may not turn up in a search of the public records and, ultimately, impose an obligation on the Buyer to pay a portion of the Seller’s income tax obligation.

For many, especially non-experts on taxation, tax time can be daunting. Should you go for the standard deduction or itemize?

Due to the number of taxpayers, you may think that what you do will be unnoticed by the IRS.

There are experts qualified to assist you if you are daunted by the tax laws' complicated loopholes. Tax attorneys from Tampa can assist you with the deductions and the different forms to fill out so you'll grasp them better.

Because IRS jurisdiction is a little murky, protesters normally attempt to dispute the power of the IRS to avoid paying taxes. To avoid having IRS issues in the future, have a look at how wide the jurisdiction of the Internal Revenue Service extends.

Root canals and IRS audits are two things that can make you wince. You will be able to steer clear of a root canal if you take care of your teeth. Likewise, you'll be able to steer clear of an IRS audit by avoiding certain practices and look after your financial well-being.

In general, people feel anxious when confronted with possible IRS penalties like the payment of back taxes. Unbeknownst to them, there are actually guidelines and strategies that will help them contend these issues.

It is always in your best interest to file for an amended tax return if you realized that there were mistakes on last year's tax return or the one you just sent off in the mail. You do not want the IRS to learn about the discrepancy because this could lead to serious IRS problem for you in the future.

There are two primary methods that the IRS uses in order to collect tax debts from taxpayers: wage levies and bank account levies. Regardless of which technique the IRS chooses to implement, both points out that you have a grave IRS problem.

The ultimate purpose of an Offer in Compromise or an OIC, is the settlement and elimination your tax debt. This is an arrangement where both parties, made up of you as the taxpayer and the IRS, arrive at a mutually beneficial agreement.

Most people are usually rather afraid of a tax audit. Although there are several frightening stories out there from people who have undergone tax audits, an unfortunate fact is that many of them are factual. At any moment, the Internal Revenue Service can audit individual taxpayers or businesses.

The IRS collections process begins with your submission of your tax return, excluding the amount of taxes due. It will be the IRS who will determine the taxes owed and they will send this to you through a bill.

It seems that the IRS makes itself known in everything you do in your life. Getting married, getting divorced, having a baby, getting a new job, buying a house and even purchasing an energy efficient car have tax implications.

People do not file their taxes for many reasons. But while some reasons are acceptable, the IRS still requires that late and back taxes be filed. To define, late taxes include those returns that should have been filed for a particular year while back taxes are the tax dues dating as early as the mid 1980s. Doing so will certainly help you alleviate and avoid possible problems with the IRS.

Numerous people have to pay money because of financial issues. Among creditors, the IRS is the most ruthless and utilize certain techniques to collect tax debts. You can get the IRS off your back with the protection made available by a bankruptcy claim.

A checklist ensures that you have everything you need when it is time to settle taxes. The process will not be nearly as stressful, because it will be simplified.

In essence, bankruptcy already has a bad connotation, and this negativity is increased with the latest amendments in the laws pertaining to it. For a number of people, on the other hand, this becomes their best option. Thus, it is important that we understand what the concept really is, what the filing requisites and procedures are and what the process is. The need to refer to a Tampa tax lawyer should not be missed as his expert opinion is instrumental in bankruptcy filings.

What is the Automated Collection System? The Automated Collection System (ACS) controls Integrated Data Retrieval System (IDRS) balance due and non-filer cases requiring telephone contact for resolution. Simply put, the ACS is a computerized network which communicates with taxpayers who owe money to the IRS, which is a huge IRS problem.

The argument can be heard each time. The IRS and the government tax everyone else and collect more money from the poor than they do from the rich. The rich are forever applying tax loopholes so that they don't have to settle any taxes. They're getting away with criminal activities!

The strangest things are applied by people to attempt to deduct from their taxes. One woman attempted to deduct a $5000 mink coat as a business expense. A man attempted to deduct a fallout shelter he built as "preventive medical expense."

Intelligent taxpayers are aware that they should not pay the IRS any more than what they need to in taxes. They are aware that receiving a huge refund every year means that they overpaid and essentially loaned money to the government entirely interest-free. Of course, you do not want to end up underpaying and having to owe the government tax money, as it may lead to a potential IRS issue.

Many people are dealing with IRS tax problems as the deadline for filing taxes comes ever nearer. From surprise penalties to excessive tax debt, these IRS issues can be daunting, complex, and costly.

Common IRS issues such as late settlement of taxes lead to serious consequences like an IRS levy. A levy entitles the IRS to garnish wages, seize property, and empty bank accounts to be able to satisfy a taxpayer's debt or unpaid penalty.

Because creditors collect settlements direct from paychecks, salary garnishment is a tough situation for people in debt. For a score of reasons, people can have their wages garnished.

If you hear about the IRS garnishing somebody's wages, you have to understand that it is absolutely as terrible as it looks. Before you even get the chance to see it, they take your money from your paycheck. It goes directly from your employer to the Internal Revenue Service, and you don't receive any of that money.

You do not want to end up paying the IRS too little or too much at tax time. Filling out your W-4 form can be tricky, but if you adjust your tax withholding correctly, you will be maximizing your efficacy in paying taxes.

What kind of estate planning is advisable for individuals with a non US citizen spouse? In this article, San Francisco Bay Area attorney John C. Martin discusses three reasons why individuals with a non US citizen spouse should consider estate planning with QDOTs, and how to avoid several pitfalls.

The Internal Revenue Service no longer conducts face-to-face file reviews for every taxpayer who has been flagged for an audit. Instead, most audits take place either by mail correspondence or telephone. These less intrusive types of file reviews are not as likely to become confrontational, and the taxpayer is usually able to keep the matter private, without as much interruption to their daily lives.

The federal estate tax is defined by the Internal Revenue Service as a tax on the right to transfer property at death. The tax is imposed on the taxable estate, which is the total fair market value of the property transferred at death (called the gross estate) minus allowable deductions. Deductions allowed under the Internal Revenue Code include administration expenses, funeral expenses, charitable transfers and property that will be passed on to a surviving spouse.

The State Administration of Taxation issued Notice on Administration of Individual Income Tax Collection regarding Stock Transfer (hereinafter “Notice”) on May 28, 2009. The Notice emphasizes the liability of individual income tax payment by individual shareholders for the stock transaction and a strict procedure is set to avoid tax evasion.

Several years ago the Ontario government allowed dentists and doctors to incorporate professionally such that professionals were able to take advantage of the small business deduction limit. If your articles were amended sometime after January 2006 with subsequent share issuances to family members, you would want to ensure that the amendments and reorganization of the corporation was done properly.

Thinking of starting a new business but are confused whether it should be a sole proprietorship, a partnership or a corporation? Each form has its disadvantages and advantages.

International taxation of E-commerce

In California, Proposition 13 has revolutionized the property tax system. Parents can pass on a house to their children without any reassessment of property tax. However, one might lose the exception from reassessment if one fails to structure the transaction perfectly. In this article, attorney John Martin explores three ways that the exception from reassessment can be lost, and what to do about it.

The economy is in a temporary mess with home prices diminishing and the stock and bond market falling. Yet, for anyone with a federal estate tax issue potentially at his or her death, this is a good time to give as many assets as one can. This is one of the best opportunities to transfer wealth to younger generations, without incurring the federal estate tax in the process.

With all the turmoil that has taken place in the financial markets, many Naperville residents question what distribution they must take out of their IRA by law this year. In the past years, once a retiree attained the age of 70 1/2, that retiree was required to take a distribution from the IRA each year based on the life expectancy tables provided by the IRS, whether they desired to take the distribution or not.

Working out your issues with your lender. It is a fair statement that no one could have predicted the direction of the economy and the havoc that the economy would play in the commercial real estate market. Investing in real estate seemed like the ideal investment at the time—several years ago.

International clients living in the United States face a number of Estate Planning challenges. For the unwary, a lack of planning can lead to disaster. In this article, attorney John C. Martin discusses four traps for the unwary expatriate who passes through, lives, or works in the United Sates.

This briefing looks at how the bail out of the banking industry will affect Tax Grouping Rules.

The UK, along with many other Member States of the EU, limits tax reliefs for donations to charity to charities based in the UK. Following the Persche ruling, HMRC will have to find practical ways of recognising foreign charities, whose constitutional documents may not be in English, for the purposes of granting similar tax reliefs.

This information is designed to provide a general overview with regard to the subject matter covered. The author and publisher and host are not providing legal, accounting, or specific advice to your situation. You should consult with the professional advisor of your choice for specific advice.

Before the accession of Romania in the European Union there existed strict rules that prevented foreign investors, either legal or natural persons, to purchase land in Romania. After January 1st, 2007 when Romania joined the European Union these rules have been changed and as such presently foreign investors are allowed to purchase land in Romania under certain conditions.

The development of the law, legal events and time have been complimentary for centuries. Every standard law will require updating after the occurence of influential events especially comparative global trends in corporate law and practices. One of such laws is the Nigerian Companies and Allied Matters Act 1990 which remains the most single significant corporate law in Nigeria. Some of the required updating are new business laws, new corporate regulatory practices, corporate ethics, etc...

In the following we would like to generally refer to the conditions, costs, steps and time frame for setting up a limited liability company in Romania.

Most importers applauded Ukraine’s entry into the World Trade Organization in May 2008, which resulted in a decrease of import duty (including the duty for the automobiles) from 25% to 10%.

The Madoff scandal has affected a very large and diverse pool of Investors, some of whom are reported to have lost most of their life savings... To help provide clarity and to assist Taxpayers the IRS is today issuing guidance articulating the tax rules that apply and providing “safe harbor” procedures for Taxpayers who sustained losses in certain investment arrangements discovered to be criminally fraudulent.”

On December 18th, 2008 was passed Law No. 26,476, published on December 24th, 2008. This law is known as the Law on Tax Regularization and Repatriation of Capitals (the “Law of Regularization”).

On January 9th, 2009 the Official Gazette of the City of Buenos Aires published Law No 2,997 (the “Law”) that amends the Fiscal Code of the City of Buenos Aires, reestablishing the stamp tax in the scope of the City of Buenos Aires.

This article will help to explain some similarities and differences in the taxation systems of Russia and the United States. First, an overview of the various tax systems will be presented followed by the analysis.

Private placement life insurance is a pre-emptive IRS audit tax strategy that transforms taxable ordinary income and capital gains into tax-free income (with no income tax reporting required under current U.S. Law). Please reference IRS Private Letter Ruling 200244001 (May 2, 2002). For U.S. Persons with investment income, private placement life insurance provides for compliant, tax-free compounded earnings.

The article details the effects of the new bankruptcy law on income tax discharges.

In Kazakhstan, taxation is governed by the Tax Code, which came into force on the 1st of January 2009. Kazakhstan is also a party to more than 35 double tax treaties with various countries. The double tax treaties prevail over the Tax Code, but their application must comply with established procedures.

Spanish Inheritance Tax, and Spanish Inheritance Law

Nigerian Government may debt finance and/or equity finance its 2009 joint venture cash call obligations.

For decades, many companies whose names appear in the Registry of Companies with the Corporate Affairs Commission (CAC) fail to pay annual corporate taxes or file annual returns.

Summary of the new legislation for the financing of German limited companies.

The Technical Committee on the Nigerian National Tax Policy has announced that the draft document of the tax policy is to be submitted to the Federal Executive Council for approval before the end of the year 2008.

The IRS Qualified Intermediary Program has heightened scrutiny as a result of the federal investigation into the Swiss Bank, UBS (the world's largest private bank). U.S. Prosecutors allege UBS deliberately abused the Qualified Intermediary Program ("QI Program"), selling offshore banking services to U.S. Taxpayers to evade taxes.

This article reports on the amendment of the Assessment and Collection of Taxes Law to incorporate the exchange of information provisions of Article 26 of the OECD Model Tax Convention of 2005 in double taxation agreements which have been concluded between Cyprus and other jurisdictions.

Overview of tax law in Costa Rica.

Overview of different organizational forms available in Spain as well as tax implication to the US citizen participating in a Spanish business venture.

Overview of US tax laws affecting both US and non-US residents/citizens.

In an attempt to revive a tax incentive regime from 2004, the Argentine Congress enacted Law No. 26,360 (the “Investment Regime”) to stimulate investments in (i) capital assets (excluding automobiles) to be used in industrial activities and (ii) infrastructure works.

Governor Schwarzenegger has signed into law tax legislation with immediate and retroactive negative tax effects along with some future positive tax changes.

HMRC has published a briefing which confirms that withholding tax does not apply to interest which is re-categorized as a distribution.

When the ECJ decided the case of Marks & Spencer Plc v David Halsey it found that the UK group relief rules where mostly consistent with European law.

On 16 September 2008 HMRC published guidance on the consequences of Demibourne Limited v HMRC [2005] which concerned an employer failing to operate PAYE and the employee paying tax on the income under self-assessment on the basis that he or she was self-employed.

One of the most paramount questions on the mind of every entrepreneur on the verge of starting their own business or intending to expand their business is how to raise capital. This article seeks to consider the various types of financing options and the legal considerations that are available to start up businesses and companies with the desire to expand in Nigeria.

Among the appraisal methods focused on a firm’s ongoing operations, many use a multiple on the firm’s revenues, earnings, or cash flow. Each of these calculations will lead to a different estimation of a company’s worth.

This overview of estate planning shows how you can reduce your estate taxes and also previews the changes to the estate taxes that are scheduled to take effect in the years 2009, 2010 and 2011.

The author discusses Law No. 5 of January 25, 2006 modifying Article 5 of Law 108 of 1974 which grants incentives for exports and indicates other provisions.

Business owners are well aware of how federal estate taxes can prevent the family business from passing to the next generation.

Since 1999 Nigeria has experienced a profound level of structural, political and economic changes that have made it one of the emerging markets in Africa. Nigeria has evolved to the point where there are excellent investment opportunities in multiple asset classes, including public equities, debt, and private equity.

Ukrainian tax legislation is built on the principle of non-discrimination and equal terms of taxation for any business entity in the Ukraine. An overview of the taxation system for foreign investors and individuals.

On March 3rd 2008, the Official Gazette published Resolution N° 150 of the Labor Authorities establishing the Tax Credit Regime of the Labor Authorities (the “Regime”) meant to contribute with companies promoting social inclusion, improving the work quality of their staff and to allow unemployed people to prepare for the work.

Various issues relating to under the Sales Tax Law in India.

Constitutional restrictions of levy of sales tax on imports and exports are to be found in Article 286 of the Constitution of India. The said Article makes it clear that, the States have no power to levy sales tax on imports and exports.

China's tax refund policy for re-investment with profit by foreign investor

The Capital Markets Board of Turkey (CMB) released the restrictions governing the some of the financial operations of sports activities business listed corporations with a set of principles.