Taxation Law Articles
Articles written by lawyers and expert witnesses worldwide
explaining the different aspects of Taxation.
An outline of the Highly Qualified Persons Rules, 2011 - Managing Growth - Malta has attracted much media attention as an up-and-coming onshore financial centre, particularly since the 2008 economic slowdown.
If you have spent a lifetime building up your estate, then you likely don’t want to lose half of it to estate taxes upon your death. Unfortunately, without careful estate planning, that can happen. Although each estate is entitled to an exemption amount which is subject to change, any estate assets above the exemption amount will be subject to the typically high rate of estate taxes.
Malta and Gibraltar signed a Tax Information Exchange Agreement (TIEA) on the 24th January, 2012. It is understood that the Malta - Gibraltar TIEA is based on the bilateral version of the OECD Model Agreement on Exchange of Information on Tax Matters.
In estate planning circles the estate tax is always a core issue, but it was an especially hot topic in 2010. A provision contained in the Economic Growth and Tax Relief Reconciliation Act of 2001 (commonly referred to as the “Bush tax cuts”) called for a repeal of the estate tax for the 2010 calendar year. It was set to return in 2011 with an exclusion of just $1 million and a top rate of a whopping 55% (it was 45% in '09).
The “death tax” is a euphemism for the estate tax. Estate tax is imposed "on the transfer of the taxable estate of every decedent who is a citizen or resident of the United States.
A Tax Information Exchange Agreement (TIEA) has been signed between Malta and the Bahamas enabling a full exchange of information between the two countries on tax matters.
In 2009, Hawaii enacted a prospective fifteen-year civil statute of limitations for collection for most assessed tax obligations (Net Income Tax, General Excise Tax, Transient Accommodations Tax, Use Tax, Fuel Tax, Conveyance Tax, Rental Motor Vehicle and Tour Vehicle Surcharge, Nursing Facility Tax, and Insurance Premium Tax) via Act 166, Sections 6 through 14.
Payroll tax problems are highly unique by a number of measures. Payroll tax problems are generally regarded much more seriously than other tax issues and are also detected and moved against by the IRS much faster. In addition Payroll Tax Problems are different in another way – the number of people who can be personally liable. When it comes to payroll tax problems it’s not just the business owners or the “corporation” that can be held liable for the back taxes.
Anyone who has a substantial estate knows that avoiding estate taxes is one of the primary goals of estate planning. The estate tax rate changes on a regular basis; however, it is typically high, meaning an estate could lose as much as half of its value to taxes. One option for avoiding estate taxes is to gift assets to family members and loved ones during your lifetime.
Back in 2010, there was a lot of uncertainty surrounding the estate tax. The tax was repealed for that year due to provisions contained within the Bush era tax cuts. However, as the laws stood throughout most of 2010, the estate tax was scheduled to reappear in 2011. At that time the exclusion was scheduled to be $1 million, and the maximum rate was set at 55%.
Taxes are an interesting thing because they can spawn conflicting emotions. Money is hard earned and nobody wants to part with a significant portion their earnings and give them to the tax man. However, the vast majority of thinking people recognize the need to fund certain foundational elements of society.
Under § 16 (1) of the German Law on inheritance and gift tax a tax free amount on the taxable acquisition of up to €500 000 (depending on the degree of kinship) is generally granted. However, this exemption is only €2 000 if both the decedent and the beneficiary are not resident in Germany. The new law now allows to avoid choose the application of the full tax free amount if the beneficiary taxes his worldwide acquisition.
While IRS Tax Liens are not as serious as levies, they are a warning shot across the bow and if action is not taken to satisfy the IRS, a levy or wage garnishment may be in the works. A lien will prevent a property owner from selling their home until the amount in question has been paid, or the lien has been removed by a court order.
The estate tax can have an enormous impact on the family members that you will be leaving behind and it is something to be very aware of when you are making preparations for the future. A single imposition of this federal levy is a big deal because it carries a 35% rate at the present time, and in fact this rate is scheduled to rise to 55% at the beginning of next year. But imagine having to pay this twice.
Many states enacted estate tax programs which supplemented the federal estate income tax laws. Known as “pick-up” taxes, state estate tax programs typically picked up where federal taxes left-off. Thus, since most estates did not owe federal income taxes, a small number of Floridians paid state pick-up estate taxes.
IRS wage garnishment can be stopped in essentially two ways; Either solve your tax problem or to cancel or delay the effects of the wage levy. Obviously it's better to resolve the IRS problem than to delay it however often an individual’s situation may require some actions to delay or negate the wage garnishment, giving the troubled taxpayer time to resolve the tax issues.
Below are answers to common questions troubled taxpayers ask when deciding on whether or not to retain the services of a tax attorney.
In most cases, the Internal Revenue Service does not impose federal income taxes on inheritances. Thus, recipients of large inheritances may not have to pay income taxes on the value of their gifts. Instead, Congress enacted tax laws imposing the federal income tax liabilities on estates.
Planning all corporate taxes: income taxes, VAT, withholding taxes, dividends taxes and considering the tax impact on your business, should play a significant role in every financial step your company in Bulgaria undertakes. Even if you consider that your business is not currently in need, you can seek for taxing information as at the moment Bulgarian system almost apply tax free levying of income for residents and non residents.
The purpose of this Memorandum is to discuss certain procedures and operations relevant to a newly-formed California corporation. The summaries below are not a complete analysis of the areas discussed, rather they are provided to give a basic understanding of the legal requirements which California corporation should follow.
In America, it seems as though we are always worrying about one tax obligation or another. Everything from our income to the food we purchase is taxed. Most Americans devote a considerable amount of time and effort to limiting their tax burden throughout the year and looking for every possible deduction and credit at the end of the year.
Loan agreement is one of the most common ways of financing in Belarusian companies when a foreign shareholder provides a loan to the Belarusian Company. This article covers some crucial issues of receiving loans from foreign companies including currency and tax regulations.
Almost unknown in 1960, the value added tax (VAT) is now found in more than 130 countries, raises around 20 percent of the world’s tax revenue , and has been the centerpiece of tax reform in many developing countries including the Democratic Republic of Congo.
It could seem as though there should be no problem transferring assets to others without incurring any undue expenses. Unfortunately, the IRS code does in fact stand in the way of cost-free asset transfers in many cases and this is largely due to the existence of the gift tax.
When the tax relief measure was signed into law in December that extended the Bush era tax cuts the estate tax parameters were affected. If the Bush cuts would have been allowed to sunset with no new legislation having been passed the estate tax would have returned to the 2001 level of 55%, and the estate tax exclusion would have been just $1 million. Instead we now have a $5 million exclusion and a 35% maximum rate of taxation.
On the surface it would seem as though you no longer have to worry about the estate tax if your estate is worth $5 million or less. Unfortunately, this is not completely true because the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 is going to expire at the end of 2012.
There are a lot of things about the estate tax that many people simply can't digest, and this is why there is always pressure being applied from some quarters to repeal the tax permanently. At the top of the list is the fact that the estate tax is imposed on assets that you have been able to accumulate after paying taxes throughout your life.
The article outlines the rules of tax Liability in Germany. According to § 2 Erbschafts- und Schenkungsteuergestz (ErbStG) unlimited inheritance tax liability results from the fact that either the deceased or the heir is a resident taxpayer upon his death.
The article outlines the new regulations for situs taxation in Germany. Pursuant to Section 16(1) of the German Law on inheritance and gift tax (Erbschaftsteuer- und Schenkungssteuergesetz) a taxpayer is entitled to acquire up to €500 000 tax-free depending on the degree of kinship. A taxpayer is entitled to acquire up to €500 000 tax-free over a ten year period.
A lot of people call the federal estate tax the "death tax, “and many consider it a sarcastic term. Some probably do use it in this spirit, but the reality is that there is literal truth in this description.The assets that you accumulated throughout your life after paying taxes are sitting safely in the bank or otherwise invested.
Many businesses pay two different kinds of workers: contractors and regular employees. Come tax time, many businesses face worker classification law questions. How do they know how employees are classified for tax purposes? How do these classifications affect which taxes the employer pays? A New Jersey tax lawyer can answer such questions and take away the guesswork for you.
We have all experienced the indescribably pleasant feeling that goes along with an act of giving. Making someone else happy is a great experience because, as they say, it is better to give than to receive. However, the powers that be seem to take a dim view of giving for some reason.
Significant gifts come with a cost in the United States via the imposition of the federal gift tax. This tax is carrying a 35% rate at the present time, and any tax that consumes over a third of the amount in question is attention-getting. However, 35% looks almost good when you consider the fact that the gift tax is scheduled to rise to 55% once 2013 rolls around.
We have a federal gift tax in place, and at the present time it is carrying a 35% rate. When you think about any tax that will consume over a third of the resources in question such a high rate may get your attention. And when you are talking about a levy that is imposed when you are attempting to engage in an act of generosity this rate and the tax itself may cause you to scratch your head a bit.
The Mexican Constitution expressly forbids the direct acquisition of real estate by foreign individuals or foreign entities in the so-called “restricted zone”. The restricted zone comprises an area of 100 kilometers along the borders and 50 kilometers along the seashores. In this restricted zone, only Mexican individuals and Mexican companies (notwithstanding any foreign investment in them) may directly acquire land and buildings.
The “green” tariff for electricity (also known in many other jurisdictions as the “feed-in” tariff) was introduced in Ukraine relatively recently – only in 2008. Since that time it has evolved substantially and now appears to be quite mature in terms of the legislative base.
There are those who refer to the federal estate tax as the "death tax, «and though this can sound like a flippancy there is actually reasonable logic to support this name. To explain, let's take a look at the anatomy of this levy.
The federal estate tax looms as a significant source of asset erosion and taking steps to mitigate your estate tax exposure is a big part of what estate planning is all about.
Taxation is an interesting thing, and a lot of people would question why you should have to pay a tax when you give someone a gift.
Taxes get the distinction of being called delinquent by the IRS under a specific set of circumstances. Once the due date of a tax liability assessment has passed or the time allowed for tax appeals has expired. Once this designation has been assigned to the back taxes the amount of delinquent taxes will be targeted by the IRS for collection procedures.
When you are inventorying your assets in anticipation of distributing them to your loved ones after your death you may find that your home is your single most valuable asset.
Much of estate planning focuses on the reduction or elimination of taxes, with good reason. Consider the “hand of taxation «which represents all the taxes during your lifetime and at your death.
The U.S. is a signatory to several important estate, gift, and generation-skipping transfer tax treaties. The article gives a short introduction to the requirements and the benefits of the existing treaties.
This article shares the views on the Foreign Investment Operations in the Democratic Republic of Congo including Employment, Business Taxation, Environment, Physical Planning, Health & Safety, Consumer Protection, Competition Policy & Law, Monetary Policy, Foreign Exchange and Foreign Investors, Public Procurement, Intellectual Property, Investment Protection and Dispute Settlement.
This articles discusses the Investment Legislation and its Reasoning; Foreign Investment Establishment, Registering and Licensing Processes; Registering a company; Establishing a Bank; Investing in the Mining Sector; Mining Prospecting; Mining Exploration; Investing in the Forestry, Gold and Diamond Sectors; Foreign Employment & Residence and; Foreign Investor Access to Land and Property Rights within the Democratic Republic of Congo.
As we allow the impact of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 to set in some of the finer details are starting to come into focus.
Law Firm Glimstedt presents the overview of tobacco industry in Belarus. The article covers the following matters: current business trends and opportunities, restrictions and advertisement, prices and taxations, production and import requirements.
One of the things that you have to keep in mind when you are serious about crafting your legacy is the fact that updates to your estate plan are probably going to be necessary.
Giving to charity is something that is personally rewarding, but it can also have value from a tax perspective.
A classic case of a dispute that is mostly just a case of disagreement between the government and the taxpayer is an IRS valuation dispute in Washington, D.C. or Maryland or Virginia.
Many people from all walks of life can end up with unwanted attention from the Internal Revenue Service. From the average Joe to self employed professionals to officers in large corporations. Even the odd politician here and there ends up in the spotlight for serious tax problems.
IRS Tax problems can quickly get out of control. It is crucial any taxpayer who has fallen behind on their federal taxes review their situation and get help fast. If the tax debt lingers for too long the IRS may begin collection actions including some of the tax problems below.
If you owe money to the IRS and they find that you are not paying your taxes they will take money from you right out of your bank account. Tax liens and levies are used by the IRS to take over your bank accounts, property, and other assets.
The IRS has made some changes, taking advantage of new payment technologies that remove any wiggle-room for employers to make the payroll tax payments. As of January 1, 2011 Employers are required to make their federal tax payments through the electronic federal tax payments system. This system is free but employers must register to get started. To make things more complex the employer must make separate payments for each different tax return type including tax forms 940, 941 and 945.
They say that the only constant is change, and some of these changes are for the better while some of them are for the worse.
Of all of the methods the IRS can employ to collect on back tax debt none are worse than the Wage Levy. Also called wage garnishment, an IRS wage levy is when the Internal Revenue Service forcibly takes or “levies” up to 85% of your wages prior to writing your paycheck. Many people have a hard enough time making ends meet with their full check and will find it impossible to get by with most of the check gone.
While there are many reasons to hire a local tax attorney for tax problem resolution there are two major reasons above all others.
Learn The Truth About The OIC Program - By now, most troubled taxpayers looking for a way to resolve their IRS debt have seen commercials from large tax debt relief services claiming taxpayers paid tens of thousands of dollars by paying only pennies on the dollar. Reactions to these commercials by taxpayers vary from "Wow I won’t have to pay all this tax debt" to "It's scam no one really gets out of paying that much money to the IRS".
Life insurance is a key component to the estate planning process. Gone are the days when life insurance was primarily thought of as a means to pay for funeral expenses and burials.
In 2011 and 2012, your estate will pay up 35% of any assets that go over your federal tax exemption amount.
You have to keep abreast of the ever-changing tax laws if you want to be prepared every step of the way as you are crafting your legacy over the years.
Do you want to know about areas of investment permitted for investment according to Ethiopian law? Below you will find these areas of investment divided by sector of investment.
Brief note on the various tax laws of Ethiopia. In Ethiopia there are two types of tax. These are direct and indirect tax.
Chicago’s 2012 budget was recently released and includes a newly proposed “parking tax” which is proving to be unpopular with many Chicagoans. In a Chicago Tribune article, the tax is described as follows:
In December 2010, Congress quickly passed some changes to the Estate and Gift Tax law that increased the lifetime gifting exclusion from $1,000,000 to $5,000,000.
A new double tax agreement between Malta and China entered into force. The new agreement replaces the previous long-standing double tax treaty between the two States and applies in respect of income or gains derived on or subsequent to 1 January, 2012.
Section 170 of the Israeli Tax Ordinance (New Version), 5721-1961 (hereinafter: "the Ordinance”) that is titled "Duty of a person making payment to a non- resident”, provides the duty to deduct tax at source (withholding tax) from payments to a foreign resident.
Many people have heard or seen advertisements from tax help firms tax speak of settling back tax debt for “Pennies on the dollar”. The program these advertisements are referring to is called the offer in compromise. While in some cases is really is possible to have this successful outcome, a debt stricken taxpayer should know they will have to qualify for the OIC first. The next question asked of course will be “How do I qualify for the offer in compromise program?”
A lot of businesses are skating on thin ice when it comes to trust fund taxes. However easy it may be to rationalize using the payroll taxes withheld from your employees to help keep the lights on, you might as well be waiving a red cape in front of an angry bull.
Bank Levies and wage garnishment are often confused. Many times a bank levy is mistakenly referred to as a "Garnishment". The main differences are as follows - a bank levy is when the IRS will gain legal access to a taxpayers assets for the purpose of paying off the taxpayers tax liability.
An eggshell audit is an audit in which the returns you have filed contain an understatement of income, an overstatement of deductions or something else that led to you—even by accident—paying less in taxes than you technically owed.
There is no doubt that Steve Jobs was a visionary. From the mouse to the iPad, Steve Jobs forever changed the way we communicate. Soon after the tragic news broke of the passing of the Apple co-founder, people began wondering what would become of his $6.7 billion fortune and how much, if any, would be paid to Uncle Sam in the form of estate taxes.
A Convention for the Avoidance of Double Taxation has been signed by Malta and Israel. The Convention fixes maximum withholding tax rates chargeable in the source State on interest payments at 5% and on dividends derived from portfolio investments at 15%.
An introduction to U.S. Capital Gains for international clients.
The following is a summary of the main tax proposals by the Trajtenberg committee:
Whether you are the gambling type or not, you have no choice but to be involved in a high-stakes gamble regarding the estate tax. Depending on the whims of the lawmakers in Washington, your family may wind up paying nothing at all to the IRS or millions of dollars on the same amount of money.
Many purchasers of real estate in Thailand are not using their newly purchased home as a permanent personal residence. Such assets are often meant to be used as a holiday home only and are unoccupied for the remainder of the year. This article will discuss the taxation of individuals who own real estate in Thailand and who receive rental income from renting out the property.
What people commonly suspect in the Thai real estate market is that if a company sells immovable property such as land it is subject to a specific “capital gains tax” or that the sale of that land is taxed at the corporate income tax (“CIT”) rate of 30%. However, such is not necessarily the case.
If you or your company own a condominium unit or villa here in Thailand that was used for even one day (with or without having actually received rental income) during the tax (i.e. generally the "calendar") year then you or your company will most likely be obliged to pay an annual “house and land tax” (“HLT”) in accordance with the House and Land Tax Act (A.D. 1932) and as further amended.
The use of off-shore entities, such as a company incorporated in the British Virgin Islands (“BVI”) to own real estate is not uncommon in Thailand. This article will analyze the tax consequences of an off-shore entity renting out real estate it owns in Thailand.
A Limited Liability Company (LLC) is an important investment vehicle for Israelis who operate in the US. An LLC is a company incorporated under the laws of one of the US states. In practice, LLC’s are often formed in the state of Delaware for administrative ease. They are relatively cheap to form and run. An LLC does not have shareholders, but rather members.
Excise taxes are taxes on the purchase of a particular quantity of a particular item, such as gallons of wine or gasoline, much like a sales tax. An excise tax, however, is very different from a sales tax. A sales tax is paid by the buyer; an excise tax, by the manufacturer or retailer. A sales tax is not included in the purchase price; an excise tax is. A sales tax is generally state or local, not federal; an excise tax may be state or federal.
Finance ministers and Central Bank governors of European Union Member States debated during the last informal Economic and Financial ECOFIN Council of September 17, the current condition of the economy and the situation in sovereign bond markets. The debate on the European Union’s financial stability was also attended by representatives of European financial oversight authorities.
Malta’s finance minister Tonio Fenech announced this morning that a High Net Worth Individuals Scheme will be replacing the now obsolete Permanent Residency Scheme.
Without being partisan in any way, the fact is that the results of the midterm elections had a lot to do with the extension of the Bush tax cuts.
Most people know that the proceeds of a life insurance policy are generally free of income taxes. What many do not realize, however, is that life insurance proceeds are included in their estate for estate tax purposes.
In difficult economic times just maintaining enough sales to keep your doors open and business operation can be a real challenge. So it's easy to see why many businesses under financial pressure to either buy the supplies they need to continue fulfilling orders, pay their employes or other essential operating bills or skip make sure they are able to pay the payroll taxes.
The estate tax is one of the first things that you should take into consideration when you are planning your estate.
A treaty for the avoidance of double taxation has been signed between Israel and Malta, and a treaty for the avoidance of double taxation has been initialed between Israel and Panama. These treaties will enter into force on completion of ratification proceedings in the two countries.
One of the reasons why it is advisable to retain the services of an experienced estate planning attorney is to guide you in a manner that enables you to gain tax efficiency
There are a lot of people who think that the estate tax is fundamentally unfair for a number of different reasons.
The Czech Republic has concluded another agreement on exchange of information on tax matters (TIEA). Following the signing of similar agreements with the British Virgin Islands on 13 June 2011 and the Isle of Man on 18 July 2011, the Czech Republic concluded and signed a TIEA with Bermuda on 15 August 2011.
Royalties accruing to a person ordinarily resident and domiciled in Malta would be subject to tax in Malta – regardless of the source of such royalties. However, should non-Malta source royalties accrue to a person who is not both ordinarily resident and domiciled in Malta, such royalties would not be chargeable to tax in Malta except to the extent that they are received in Malta.
People who are interested in estate planning are well aware of the fact that there were some significant changes to the estate tax parameters included in the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
As you probably know, beginning January 1, 2010, Washington loosened rules for converting traditional IRAs (with taxable withdrawals) to “Roth” IRAs (with tax-free withdrawals). The full amount you convert (minus any “basis” in nondeductible contributions) is taxed as ordinary income now when you convert. However, future withdrawals will be tax-free.
Unfortunately, many of the latest statistics suggest that the majority of Americans nearing their 60s are not ready for retirement. Although recent findings indicate that people are better prepared for retirement than they were less than a decade ago, all is still not well.
There are those who are under the impression that they will somehow automatically retire when they reach their mid-60s. They think that they will enjoy their golden years and all of the free time they will have on their hands.
Many parents choose to create a will so that their minor children are always protected. While a will allows you to appoint a guardian for the care of your minor children, it doesn’t allow you to fully explain the level of care that is needed.
If you want to have some control over your future, then you need to create a will. Many people assume that their wishes will be respected, even if they don't have a will in place
1 Introduction: The Law Decree dated 13.5.2011 no. 70 (called “Development LD”), enforced on 14.5.2011, has been converted in the Law dated 12.7.2011 no. 106, enforced on 13.7.2011.