Taxation Law Articles
Articles written by attorneys and experts worldwide discussing legal aspects related to Taxation.
It is important for charities to be flexible in their thinking when raising funds. In this way, charities may be able to amass donations of items they would otherwise never have sought let alone receive. One such area that deserves further focus by charities is that involving life insurance.
The first and most obvious way is that charities dedicated to relieving poverty obviously have greater restraints put upon them in times when more people are suffering from poverty. Unfortunately, just as the individual suffers from these economic troubles, so too does the charity.
The first interesting change is the abolishment of the PST and the adoption of the HST. While the official government announcement indicated that the rebates available to charities under the HST effectively made charities revenue neutral between it and the PST.
In 1999, Parliament amended the Income Tax Act (the "Act") to create what are commonly called Third Party Civil Penalties. The provisions, which are broadly worded, ostensibly target those individuals who assist others in making what the CRA would believe is a false statement or omission on their tax returns.
For the second time in six years the Federal government is changing the disbursement quota calculation for charities. Originally instituted in 1976 as a way to force charities to spend their funds on their charitable activities, the quota has turned into a cross between a math nightmare and an obstacle for the growth of small charities.
Homeowners in most provinces know that the land transfer tax due on purchase of the home can be the straw that breaks the camel's back as far as affordability goes. Most provinces have a version of the land transfer tax (as called in Ontario, or the Property Transfer Tax or Land Purchase Tax in other provinces). The tax is generally calculated as a percentage of the property being transferred, so the higher the value of the property the greater the tax.
The advent of the HST system in Ontario has been treated with a distinct lack of enthusiasm by charities. On the one hand, as the HST system is based on the GST regime some may feel comfortable with HST as simply being an extension of the GST (the only problem is that the GST is an enigma to most). On the other hand, the silence about the HST in the charities community is in some ways surprising given the now enhanced consequences to directors and charities for misunderstanding the law.
We are periodically faced with the unfortunate situation when a charity or not for profit is forced into bankruptcy or receivership. Unfortunately, giving clear advice in the area is complicated by the relative lack of applicable law. In one circumstance we were confronted with a situation as to whether a going concern operating as a charitable trust could make a proposal in bankruptcy.
This case serves as a warning to any advisors that receive commissions paid by promoters to avoid potentially conflicting situations regardless of their confidence in the shelter. And perhaps more importantly, advisors should hold themselves to the highest fiduciary standards in all cases, even if their relationship with the donor is more fleeting thatn was the one between the Lembergs and Mr. Perris.
The first and likely most recurring situation is a return of member's dues. In theory, there is nothing wrong with the organization returning amounts paid by the members to the organization. However, in circumstances where the organization has provided some (non monetary) benefits to its members the organization would have to deduct the value of these benefits from the amounts being returned to the member.
Recently, there was a report that President Barack Obama and Democratic lawmakers planned to freeze the estate tax at the current level of $3.5 million exemption per estate, which would prevent the temporary one year repeal of federal estate taxes in 2010, with the tax returning in the following year with only a $1.0 million exemption, along with a tax rate of as much as 55%.
Ask a tax professional before losing or walking away from your home. These days in this shaky economy and what the experts are calling the “jobless recovery,” there are many people still out of work. Perhaps the reader of this article has friends or family that are currently out of work, but have been actively seeking work.
As many Napervillians become more successful in their businesses, they may purchase another residence in another state. As time goes on, they may choose to spend more time in that state (especially in the wintertime). The other state may be more attractive, because that state might not have an income tax or an estate tax upon death. Thus, even if people choose to spend a substantial amount of time at their Illinois residence, they may declare they are a resident of another state.
September 17, 2010 By Chang & Diamond, APC
It often happens that for one reason or another you owe back taxes. The IRS can be relentless in their pursuit for payment. It may seem like filing for Bankruptcy would get the tax man off your back, but this is not necessarily the case. The Franchise Tax Board and the Internal Revenue Service really don't like to lose money.
September 17, 2010 By M. Korelis & Co LLC
The mechanism of Cyprus International Trusts in Tax Planning.
September 3, 2010 By The Law Offices of Philip F. Counce
Many people incorrectly believe that they cannot discharge unpaid tax debt in bankruptcy. While this is a very complicated area of bankruptcy law, it is possible to obtain a bankruptcy discharge of many tax debts, including the penalties and interest owed thereon. In fact, bankruptcy can be the best available option for individuals with unpaid tax debt to relieve some or all of the financial and personal hardship caused by owing money to the IRS.
August 11, 2010 By Oldham, Li & Nie Lawyers
Hong Kong signed comprehensive agreements with the UK and Ireland on the avoidance of double taxation in June 2010.
July 29, 2010 By Dr. Zoltan K. Toth, Attorney at Law
They say there are two things that are almost sure in your life: death and taxes. It is likely that none of these problems will ever be completely “solved”, however as medical professionals are continuously working on expanding life expectancy, we, tax professionals are always trying to offer cosmetic solutions for lowering the overall tax burden of businesses.
July 26, 2010 By Angela Wang & Co.
Although representative offices (“RO”) are legally only allowed to conduct limited activities in China e.g. liaison, research and marketing for their foreign holding companies, it has been a popular form of business entity for foreign companies to set up due to its simple registration requirements and no registered capital payment is needed. Recent changes to the tax rules for ROs may however affect this trend.
July 23, 2010 By Dardikman Law Offices
How to establish a Limited Liability Corporation, Joint Stock Corporation from a practical point of view.
July 23, 2010 By Dr. Zoltan K. Toth, Attorney at Law
The Hungarian Parliament passed a bill on 22/07/2010 which brings company tax exposure of Hungarian companies down to 10% on profits up to EUR 1,8 million.
July 16, 2010 By Molina & Co.
The term to exercise the right to be reimbursed any overpaid or improperly paid amounts to the Treasury is reduced from 7 to 3 years, counted from the last day of the year on which payment was made.
July 16, 2010 By Molina & Co.
The rates for natural person shall be as follows:
July 16, 2010 By Diaz Reus LLP
Does your company make payments to foreign entities or non-U.S. individuals? If yes, you may have tax withholding requirements under US Tax Code Section 1441: Withholding and Reporting Requirements.
July 11, 2010 By MMLC Group
The China State Administration of Taxation ("SAT") issued Circular Guoshuihan  No.507 “Notice of the State Administration of Taxation about the Issues Relevant to the Execution of the Royalty Clauses of Tax Treaties” (“Circular 507”) on 14 September 2009 clarifying some issues on implementation of the Royalty Clauses under the tax treaties between the PRC and various countries. This article reviews the major issues of that Circular.
July 11, 2010 By Angela Wang & Co.
The Mainland and Hong Kong signed an Arrangement between them for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (the “Arrangement”) on 21 August 2006 to eliminate any situation of double taxation that might otherwise be faced by a Mainland or Hong Kong investor or resident in the conduct of cross border activities.
July 8, 2010 By Molina & Co.
With the enactment of Law No.8 of 2010, new rates will take effect on income tax for both legal entities and for individuals. Note that the application of these rates is retroactive, so their entry into force is from January 1, 2010. In addition, it includes tariff changes regarding ITBMS (similar to the VAT), ISC and Stamps, which take effect from July 1, 2010.
July 7, 2010 By Anastasios Antoniou LLC
The following piece details the business-friendly tax regime of Cyprus and how it can be harnessed through the establishment of a Cyprus Holding Company, the most tax-efficient holding corporate vehicle in the EU with a corporate tax at 10% and zero withholding tax on dividends in most cases
June 29, 2010 By Frishberg & Partners
Looks like the Yanukovich government is finally turning its attention to the Ukrainian taxpayer (physical and legal entities alike). Is that good news or bad? To answer this question, we provide you with a brief analysis of the new-and-improved draft Tax Code that is currently under consideration.
June 28, 2010 By Domański Zakrzewski Palinka
A Q & A guide to corporate real estate law in Poland. © This chapter was first published in the PLC Cross-border Corporate Real Estate Handbook 2011/2012 and is reproduced with the permission of the publisher, Practical Law Company.
June 14, 2010 By George R. Belche, Attorney at Law
IRS section 529 or Qualified Tuition Programs (QTP's) are found under Title 26, Subtitle A, Chapter 1, Subchapter F, Part VIII, Section 529 of the Internal Revenue Code or "IRC". It is considered the most complicated and hard to read section of the Code and a good treatment for insomnia. This section deals with special tax breaks for families, hence the "insomnia effect".
May 26, 2010 By Law Offices of John C. Martin
The myriad options presented to home buyers when titling real estate have significant tax, asset protection, and estate planning consequences.
May 19, 2010 By Clark Law Offices
As more families refinance their mortgages, are forced into foreclosure or find other ways to cancel their mounting debt, the last thing that may be on their minds is the potential tax consequences of their actions.
China Clarifies Procedures of Tax Refund and Exemption for Foreign-invested Research and Development Centers
May 13, 2010 By Guo Lian Law Firm
On 22 March 2010, China’s Ministry of Commerce, Ministry of Finance, General Administration of Customs and the State Administration of Taxation jointly issued Circular on Measures of Qualification Review for Tax Refund and Exemption Granted to Foreign-invested Research and Development Centers concerning Equipment Purchases to clarify the procedures that foreign-invested R&D Centers shall follow when claiming refund or exemption of import taxes imposed on purchase of equipment.
May 5, 2010 By Fikadu Law Office
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.
April 17, 2010 By Anurag Gupta Professional Corporation
This article will briefly discuss the advantages and disadvantages of the two common structures – share purchase or asset purchase arrangements.
April 1, 2010 By Guo Lian Law Firm
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.
March 24, 2010 By The Stewart Law Firm
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.
March 17, 2010 By Thorn Law Group, PLLC
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.
February 28, 2010 By Angela Wang & Co.
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.
January 18, 2010 By Dardikman Law Offices
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.
January 15, 2010 By Dardikman Law Offices
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.
January 14, 2010 By Simon Shang & Partners
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).
December 5, 2009 By KNJ Partners
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.
November 17, 2009 By KNJ Partners
The author describes what GST is and its effect on consumers.
November 3, 2009 By Law Offices of John C. Martin
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.
November 3, 2009 By UB & Co. Attorneys and Counselors
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.
October 30, 2009 By Jones & Ryan Tax Attorneys
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?
October 23, 2009 By Cornelius Law, LLC
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).
October 23, 2009 By Burges Salmon LLP
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.
October 18, 2009 By Michael Carabash Attorney
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.
August 27, 2009 By Carlo Scevola & Partners
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.
August 26, 2009 By The Law Firm of Labeed Abdal
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 ...
August 23, 2009 By Kittelson & Carpo Consulting
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.
August 20, 2009 By Pohl & Short, P.A.
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.
August 3, 2009 By Law Offices of John C. Martin
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.
July 27, 2009 By Law Offices of Steven N. Klitzner, PA
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.
July 17, 2009 By Prince P. C.
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.
July 9, 2009 By V&T Law Firm
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.
June 28, 2009 By Anurag Gupta Professional Corporation
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.
June 15, 2009 By Anurag Gupta Professional Corporation
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.
June 10, 2009 By S.R. Dinodia & Co.
International taxation of E-commerce
June 5, 2009 By Law Offices of John C. Martin
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.
June 4, 2009 By The Gierach Law Firm
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.
June 3, 2009 By The Gierach Law Firm
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.
June 3, 2009 By The Gierach Law Firm
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.
May 14, 2009 By Law Offices of John C. Martin
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.
May 11, 2009 By Burges Salmon LLP
This briefing looks at how the bail out of the banking industry will affect Tax Grouping Rules.
May 11, 2009 By Burges Salmon LLP
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.
May 8, 2009 By Leighton Legal Group LLC
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.
April 24, 2009 By Ion Florin Chivu Law Offices
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.
April 16, 2009 By Brooke Chambers
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...
April 3, 2009 By Ion Florin Chivu Law Offices
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.
March 31, 2009 By Frishberg & Partners
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%.