Taxation Law Articles
Articles written by lawyers and expert witnesses worldwide
explaining the different aspects of Taxation.
When you are a child you are taught to understand right from wrong. Because so much effort is put into making this point to you, unfairness can seem like a very big deal when you are a youngster. Then, little by little, the landscape of childhood starts to pass away, and you come to understand that the way of the world as we know it is inherently unfair in some ways. But that doesn't mean you lose your ability to see right from wrong.
As we watch the countdown on New Year's Eve it is a heady time indeed. Another year beckons, full of change and pregnant with possibility. Before you know it, that fateful time arrives and champagne corks take flight, people break into heartfelt song, and anything seems possible. But when you wake up the next morning and make it to work a day or two later, you tend to find the world looking pretty much the same as it did before all of that change that went down on New Year's Eve.
There are two primary advantages to utilizing gift giving as a part of your inheritance planning strategy. For one thing you get to enjoy the simple pleasure of doing something nice for a loved one while you are still alive. This is good for you emotionally, but it is good for your heir as well because he or she doesn't have to juggle the grief/happiness conundrum that goes along with receiving an inheritance.
You might have heard that you can give some of your money to your heirs before you pass away without any tax consequences. While this is sometimes the case, if you do not speak to an estate planning attorney before you give your money away, you might be making a big mistake. A well-intentioned, but improperly given, gift can cause more problems and greater financial burdens than anyone wants deal with.
It would be logical to consider giving gifts to people that you would otherwise be leaving inheritances to while you are still alive in an effort to gain estate tax efficiency. However, the powers that be are well aware of this logic as well. Therefore, there is a gift tax in place that is unified with the estate tax.
Trusts, both revocable and irrevocable, offer a variety of options that allow you to tailor your estate plan to your specific needs and desires. If you have an estate that extends beyond a basic Last Will and Testament, you should understand the differences between these two types of Trusts.
Federal estate taxes are taxes that will be owed upon your estate after you pass away. Your estate will owe taxes if your assets are worth more than a certain amount. The maximum estate tax rate is quite high, so finding ways to decrease your taxable estate is vital.
You can withdraw money from your IRA at any time, but there are sometimes penalties or income tax associated. The rules vary depending on whether you have a Roth or a traditional IRA and, as with a 401(k), the “magic” age is 59 ½.
Over the last few years Israel has become an attractive jurisdiction for tax planners, the following article will provide information on some of the tax benefits which new immigrants or returning residents can obtain.
A comprehensive double tax agreement between Guernsey and Malta was signed on the 12th March, 2012.
While the ability to decide who will receive your assets upon your death is certainly an important feature of estate planning, the ability to reduce, or even avoid, the tax consequences of transferring wealth and assets upon your death is an equally important facet of estate planning.
After much debate the House of Representatives finally voted into law the new Cyprus International Trust Law. The bill that was enacted on the 9th of March 2012 aims to modernise the framework of international trusts and have positive impact on investment.
The Israeli Tax Authority issued recently a tax circular entitled: Determining the date of ceasing to be Israeli resident and the date when a foreign resident becomes Israeli resident.
From a purely legal perspective, there is no such term as “raid” in the Tax Code. All the necessary forms, legal grounds and procedure for carrying out inspections of the subjects of entrepreneurial activity, as well as the procedure for execution of documents per results of such inspections, are regulated by the Tax Code of Ukraine. From a practical perspective, however, tax inspection visit can quickly escalate into a battle for your company’s survival.
On 10 February 2012, the income tax treaty (Treaty) between Belgium and the Democratic Republic of Congo (DRC) was published in the Belgian Official Gazette. As Belgium is the first country with a treaty with the DRC, the Treaty may be an important impetus for bilateral financial, commercial and trade relationships between the DRC and Belgium. This can also be beneficial in an international context.
As a Leominster resident, you have probably given considerable thought and consideration to how you wish to structure your estate plan in order to transfer your estate assets to family members and loved ones upon your death.
San Jose estate planning attorneys invariably speak to many clients who feel as though the estate tax is fundamentally unfair. Their clients register multiple complaints, but the primary reason that they cite is the fact that the estate tax is an instance of double taxation.
Home ownership has long been the foundation of wealth building in the United States. If you are like most Americans, your home is your single most valuable possession. As a result, if you were to reduce the taxable value of your home you could go a long way toward mitigating your estate tax exposure.
TEFRA stands for the Tax Equity and Fiscal Responsibility Act of 1982; however, it has evolved into a much different use in the parlance of New Jersey tax lawyers. TEFRA is the common acronym used to describe the judicial, examination, and processing requirements that apply to most entities treated as partnerships for income tax purposes.
Like all tax systems, the Congolese tax system is characterized by the multiplicity of taxes notably: direct taxes on revenue; indirect taxes on spending; and taxes on capital. Taxation can be either spontaneous or organized by the authorities. To encourage certain business, the State generally grants aid in two forms: through subsidies and very low interest loans or through exemptions or reductions in tax payments. This article gives the Tax highlights of the Democratic Republic of Congo [DRC].
There are two basic reasons why estate planning is so important. First, estate planning allows you to decide what will happen to your assets upon your death. Second, by planning ahead, you can substantially decrease the tax consequences of transferring your estate assets to family members or loved ones. In the absence of planning, your estate assets may be subject to either estate or gift taxes, both of which can significantly drain estate assets.
With the ever increasing amount of taxes, consumers have found ways around some of the rules for the time being. One recent way in which they have been able to avoid the high expense of taxes is through online purchases. Buying items online is not a completely new concept, but is more recent and has been steadily gaining greater popularity.
After you pass away, the transfer of assets to your loved ones may seem like a relatively simple and straightforward task. It should be but the realities of the tax code can make it rather challenging to avoid a significant portion of your legacy being consumed by the IRS.
For anyone with a substantial estate, the never-ending search for mechanisms to transfer those estate assets without incurring estate taxes should include the use of both the gift tax exemption and the yearly gift tax exclusion. With estate taxes typically running at 35 percent or more, any tactic that can be employed in the estate planning arsenal to avoid the payment of estate taxes should be considered.
Double-Taxation Agreements in Spain Expands and the List of Countries Classified as Tax Havens is Shortened
To date there are 80 Double Taxation Agreements in force in Spain. For some years, the number of these agreements has been increasing significantly, and this makes international tax planning much easier. Among recent agreements, we can highlight: Among recent agreements, we can highlight the one existing with Panama, which came into force last July, which aims for this country to be removed from the list of countries regarded by Spanish tax authorities as tax havens.
In the context of a severe lack of liquidity in the Spanish public finances and with the purpose of increasing revenue for Corporate Tax collection, on August 19, 2011, the government urgently approved two significant changes for Corporate Tax in relation to offsetting the losses incurred by Spanish companies.
Entry Into the Spanish Market Through a Representative Office and the Implications for VAT and Corporate Tax
Our firm often deals with consultations on the effects of VAT for a foreign company developing an activity in Spain through a representative office. This is one of the easiest ways of entering into the Spanish market. In that scenario, the foreign company does not need to incorporate any companies in Spain nor create a branch.
For parties with assets and or beneficiaries in multiple jurisdictions it is imperative to ensure a proper estate plan is in place. Unless proper steps were taken in estate planning there could be adverse tax consequences that could have otherwise been planned for and perhaps avoided to achieve the testator’s goals. This article examines the consequences of failing to make such a plan where the deceased resided in both Israel and Canada with beneficiaries and assets in both jurisdictions.
As part of the Federal Economic Growth and Tax Relief Reconciliation Act of 2001, Congress temporarily eliminated estate taxes for the year 2010 only. However, they returned in 2011. Currently, estates worth over $5.12 million owe federal estate taxes. In some states, these large estates owe state death taxes, too.
If you were to ask the typical person walking down the street he or she would probably tell you that a certain amount of taxation is necessary. Most Americans don't mind paying their fair share of taxes. The problem arises when you feel as though you're being taxed unfairly or taxed twice on the same resources. When you look at the federal estate tax closely you see that it is in fact an instance of double taxation and this rubs a lot of people the wrong way.
Although it has been long time to have CFC regulation in Turkey, in parallel with the increasing rate of growth of Turkish economy, many major entrepreneurs making Turkey related businesses required to focus on management of their taxation policies in consideration of CFC regime in Turkey.
In accordance with national law, free economic zones (free enterprise zones) are part of the customs territory of the Republic of Moldova, economically separated, with strictly demarcated perimeter, where for local and foreign investors, according to the law, are allowed on preferential conditions different types of business activities.
The Cyprus Parliament approved last December the increase of the VAT rate by 2%, i.e. from 15% to 17%, and this new 17% VAT rate will be implemented on 1 March 2012. The VAT Service has clarified that the increase does not affect the products and services that fall under the reduced VAT rates of 5% or 8% or zero VAT rate, according to the VAT legislation.
You’ve probably heard a lot about Ponzi schemes recently in the news — about people becoming unimaginably wealthy through fraud, only to watch their empires, built on dishonesty, collapse about them — but how many people who are not NJ tax attorneys truly understand what a Ponzi scheme is and how it works? Grasp the fundamentals of a Ponzi scheme, and you too can keep yourself from being victimized by perpetuators of this white collar crime.
Israeli tax law system, tax rates, and update of new changes following Israel Tax Reform: Trajtenberg Proposals.
You gain a sense of satisfaction from acts of generosity that really cannot be adequately described in words. Being in a position to help others can be extremely rewarding, and even if you are giving in a totally selfless manner, there could be tax advantages realized through acts of giving.
It’s vital to understand how much your property taxes are going to cost before you purchase a property. If complications with your taxes arise after you have purchased your property, a real estate attorney can help you address any legal issues and find a resolution. Property tax is a tax assessed on real estate by the local government. The tax is based on the value of the property (including the land) that you own.
Most people are accustomed to taking into account the tax ramifications of purchases expenses and investments as they apply to personal income taxes; however, estate taxes can potentially have an even bigger impact, yet are often forgotten.
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.
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.
Tax scams involve trying to cheat individuals out of their money. But it can also involve cheating the government, too. While some of these scams can be very persuasive, it is possible to stay out of their cross-hairs, if you know what to be on the lookout for.
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.
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.
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%.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 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.
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.
Giving to charity is something that is personally rewarding, but it can also have value from a tax perspective.
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.
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.
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.
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.
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.
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.
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.
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.
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.
While there are many reasons to hire a local tax attorney for tax problem resolution there are two major reasons above all others.
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.
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.
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.
In 2011 and 2012, your estate will pay up 35% of any assets that go over your federal tax exemption amount.
Brief note on the various tax laws of Ethiopia. In Ethiopia there are two types of tax. These are direct and indirect tax.
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.
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.