The issue of tax avoidance and evasion has been hotly debated over recent weeks, and the European Commission are now urging European Union governments to automatically exchange information on a wide range of financial income which is earned in their country by non-residents.
Under the proposals, governments would automatically exchange information on income including dividends and capital gains of non-residents, with the residents’ home country, enabling the correct tax to be taken.
The latest proposals by the European Commission, if approved, will build on existing agreements in place to tackle tax evasion, including the automatic exchange of non-residents’ savings – which is set to be strengthened by the end of the year.
In addition, the latest proposals by the European Commissions will build on the pilot multilateral exchange facility, which was set up in April between Britain, Germany, Spain and France; and sees the five countries share similar information to the information they share with the United States as part of FATCA, amongst themselves.
It is now widely expected that the European Union will push at the G8 Summit for a similar system to tackle tax evasion to be rolled out worldwide, enabling developing countries to collect more tax.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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( 3 / 492 )A leading think-tank, the National Institute of Economic and Social Research have suggested that after two years of stagnation, the UK economy is set to grow this year, after gathering pace over the last few months.
In recent weeks, various surveys have reported growth in a number of sectors, including construction and the service sectors, prompting renewed hope that the economy is beginning to recover.
Following the significant improvements which have been seen in the economy, the think-tank have updated their original forecast for April, from 0.8 percent to 1 percent.
In addition, the National Institute of Economic and Social Research have also said that their earlier estimates for the economies growth during this year and 2014 – which currently sit at 0.9 percent and 1.5 percent respectively – could be revised upwards.
Although the think-tank are optimistic that the economy is beginning to show signs of recovery, their recent report has suggested that the economic output still remains two percent below its pre-recession levels, and is not likely to reach such figures until 2015 at the earliest.
The latest figures from the National Institute of Economic and Social Research come after the British Chamber of Commerce revised their own forecasts upwards, from 0.6 percent growth this year, to 0.9 percent growth.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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( 3 / 489 )Ahead of the G8 summit, where tax avoidance is likely to be a hot topic, results of a new poll have found that forty-percent of UK consumers would consider boycotting a company or brand, over claims of tax avoidance.
The results of the poll come following news over the weekend that one of the UK’s largest water companies has deferred their tax, in the year where bills rose by over six percent; and a leading telephone provider also paid zero corporation tax, despite UK profits of over £200 million.
According to the results of the poll, as many as twenty-one percent of consumers said they were “very likely” to refuse to use brands who are associated with tax avoidance; whilst a further twenty-percent said that it was “quite likely” that they would boycott a brand.
In addition, the results of the poll have shown that the likelihood of boycotting a brand over tax avoidance allegations depends on the consumers’ age, with twenty-eight percent of 18 – 24 year olds claiming that they would support a boycott; compared to forty-one percent of 35 – 64 year olds.
Although the poll suggests that many consumers would support a boycott, the findings also suggest that thirty-one percent were not very likely to stop using a brand based on tax avoidance claims.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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( 3 / 471 )Figures published as part of a leading business survey, have revealed that throughout May, business activity within England rose at their fastest rate in more than a year.
According to the latest figures, business activity increased from 52.2 in April to 54.8 in May of this year, remaining comfortably above the all-important fifty mark which separates growth and contraction.
In addition to remaining comfortably above the fifty-mark, the latest figures posted are the best recorded since March 2012.
Along with highlighting the growth in business activity as a whole, the recent survey also revealed that for the first time since January last year, activity within all nine English regions increased.
The latest figures have shown that in the East of England, business activity climbed for the sixth month running; whilst Yorkshire and Humber, and London were the two best performing regions, posting figures of 57.6 and 56.4 respectively.
Meanwhile, output growth for private sector firms throughout the West Midlands increased from 49.8 in April to 53.9.
The latest data adds to the growing optimism surrounding the UK economy and businesses, following positive results from construction and service sector surveys earlier this month.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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( 3 / 498 )The Chancellor George Osborne has launched a fresh attack on the EU’s proposed financial transactions tax (FTT), calling it “poorly designed”, “badly timed” and “unlawfully extraterritorial” and has urged the EU to scale the proposals back.
Mr Osborne made the comments in a letter responding to complaints about the proposed tax from major EU financial services trade bodies, including the European Banking Federation and the International Capital Markets Association (ICMA).
The current EU proposals state that any trade in euro-dominated financial instruments and any transaction with a bank from the 11-nation group that has signed up to it, or one of its overseas branches, would be subject to the tax, regardless of where the deal took place.
However, the Chancellor feels that this aspect of the levy would have serious implications for financial institutions in non-participating member states, such as the UK. Indeed, the Government is so opposed to this that it launched legal proceedings against the tax in protest at how the knock-on effects could adversely impact the economy
Mr Osborne added that the proposed tax calls into question the EU's commitment to growth and its standing in key global talks on regulatory reform, saying it would “disrupt the diverse markets used by corporates to raise financing for long-term investment”.
In the Chancellor’s view, the single market would also be undermined by the tax, which would split the tax treatment of derivatives into two regimes and would also "conflict with G20 regulatory reforms in numerous ways including in relation to collateral and bank funding instruments.”
There have already been suggestions that some of the 11 member states that signed up originally to the tax may be having a change of heart, amid predictions that it could end up only raising a tenth of the €35bn originally forecast.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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