Snehasish Barua’s Post

The latest Deloitte UK #BusinessTaxBriefing (29 November 2024, https://lnkd.in/edhTV3Nf) includes items on: 🔹 #FinanceBill 💷 The Finance Bill 2024-25, to enact many of the Autumn Budget’s tax announcements, has had its Second Reading in the House of Commons. The Bill will now move on to its Committee Stages. 🔹 #CompanyCars 🚗 HMRC have published new advisory fuel rates for company cars applicable from 1 December 2024. Compared to the previous rates, each of the advisory fuel rates for petrol and diesel engines have decreased by 1p. 🔹 #OECDStatistics 🌎 The OECD has released its annual 'Revenue Statistics' and 'Consumption Tax Trends' reports, providing internationally comparative data on tax levels and tax structures in OECD member jurisdictions. 🔹 #GamblingLevy 🎲 The government has announced the introduction of a statutory levy on gambling operators, to be charged at a set rate for holders of Gambling Commission operating licences, depending on the sector and nature of the gambling activity. There are two EMEA #Dbriefs tax and legal webcasts this week: 🔹 '#PillarTwo and M&A – A practical guide' (Tuesday 3 December 2024, 12:00 GMT) - https://lnkd.in/eeqhFWRb 🔹 '#e–invoicing – A journey of compliance and transformation' (Thursday 5 December 2024, 12:00 GMT) - https://lnkd.in/erQKZAaP As ever, you can subscribe to receive the #BusinessTaxBriefing and our other tax update publications first, by email, here: https://lnkd.in/e9SJQnsw  #businesstax #uktax #DeloitteTax

🚨 New Insights on CRA's Revised APA Circular 🚨 🌞 As summer winds down and we get back into the swing of things, it's the perfect time to revisit important updates from earlier this year. 🌞   In February, the Canada Revenue Agency released a Revised Circular on Advanced Pricing Arrangements (APAs) that could significantly impact businesses with complex cross-border transactions.   In our latest article, we break down what these changes mean for Canadian taxpayers and why many may reconsider applying for an APA. The CRA's tightened criteria could lead to more audits and lengthy dispute resolution processes—outcomes that run counter to the APA program's goal of providing tax certainty. Additionally, the Revised Circular fails to recognize and leverage previous due diligence work done by CRA officials, making the renewal process—including prefile meetings and functional interviews—just as onerous as the first time around.   If your business is navigating intercompany transactions or considering an APA, this article is a must-read. 💼   #TransferPricing #TaxLaw #APAs #CrossBorderTransactions #CanadaRevenueAgency #TaxCompliance #InternationalTax #TaxPlanning #TaxUpdates #BusinessStrategy https://lnkd.in/gpG8JPw9

🚨 Heads Up, Entrepreneurs & Consumers! 🚨 Ever felt like VAT is a complex maze that's just too hard to navigate? We've all been there. Wondering "How much will this add to my costs?" or "Why does VAT vary from one place to another?" If these questions have crossed your mind, you're not alone. 🔍 Dive into the world of VAT with our latest article – where we decode the mysteries of Value-Added Tax! It’s not just a tax; it’s a crucial aspect of our daily transactions that can significantly impact your budget or business expenses. 💡 Discover hidden insights on how VAT works, what it costs, and why the rates change depending on your location. We're talking about the kind of knowledge that turns confusion into clarity, and challenges into opportunities. 🤑 Whether you’re a savvy shopper or a business owner looking to optimize costs – understanding VAT can save you money and avoid hefty surprises. Don’t miss out on the chance to make smarter financial decisions! Take action NOW! 💼📈 👉 Click the link to gain a clear understanding and take control of your financial future: https://lnkd.in/e9PKtRU5 #VAT #FinanceTips #BusinessStrategy #CostSavings #TaxKnowledge #

Capital Gains Tax (CGT) is normally charged at a simple flat rate of 20% and this applies to most chargeable gains made by individuals. If taxpayers only pay basic rate tax and make a small capital gain, they may only be subject to a reduced rate of 10%. Once the total of taxable income and gains exceed the higher rate threshold, the excess will be subject to 20% CGT. #CGT #CGTrates

Capital Gains Tax (CGT) is normally charged at a simple flat rate of 20% and this applies to most chargeable gains made by individuals. If taxpayers only pay basic rate tax and make a small capital gain, they may only be subject to a reduced rate of 10%. Once the total of taxable income and gains exceed the higher rate threshold, the excess will be subject to 20% CGT. #CGT #CGTrates

If the Government Asks, “Where Should VAT Go?” What Would You Say? – A Letter to you from Rome. Imagine you’re standing in the middle of a busy modern city. Businesses are bustling, goods are moving from one place to another, and services are being rendered everywhere you look. Now, picture government officials gathering to debate a critical issue: Should VAT be collected and used by the state where goods and services are consumed, or should it go to the state where they are produced? This is the essence of the Derivation vs. Destination Principle in VAT. Some argue for the Destination Principle—taxing where goods and services are consumed. They say it’s fairer because it benefits the regions where consumers actually live and spend their money. It ensures that the infrastructure and services they use daily are adequately funded. After all, why should a remote state fund roads it may never drive on? But others advocate for the Derivation Principle—taxing where the value is created. They believe that states producing the goods and services deserve the tax revenue, as they provide the resources, labor, and infrastructure that make production possible. “We built it,” they say. “Shouldn’t we benefit?” In this debate, every policymaker and taxpayer has a choice to make: Should VAT follow the consumer, or should it stay with the producer? It’s a fundamental question that affects not just tax revenue but the economic balance between regions. what would you choose if you had the power to decide?

At KC Accountancy, we understand that navigating the intricacies of tax obligations can be daunting, especially when it comes to self-assessment. Whether you are self-employed, a landlord, or have other untaxed income, registering for self-assessment with HM Revenue and Customs (HMRC) is a crucial step. Our latest blog aims to simplify the process and ensure you are fully informed. https://lnkd.in/eSBtQZEE

**Last Chance to Book** 📢 Join Our VAT & Tax Returns Course! 📢 📅 When: Tuesday, 8th October, 6pm - 9:30pm 💻 Where: Online Gain a clear understanding of your responsibilities as a self-employed person and how your business fits into the self-assessment tax system. Learn how to calculate Income Taxes on your business profits and get tips to pay less tax. Understand VAT and the implications of VAT registration on your business. Course Highlights: Who pays Income Tax and on what income? Business Profits/Losses and allowable expenses Income Tax Rates, USC, PRSI Tax Credits, Reliefs, and Capital Allowances Preliminary Tax and important filing dates Registering for VAT and allowable VAT expenses VAT Thresholds, Rates, and Reverse Charge VAT on EU transactions and Post-Brexit implications VAT calculations and record-keeping By the end of this course, you’ll have the knowledge to confidently manage your VAT and tax returns. Don’t miss out on this essential training! 🌟 https://ow.ly/E1HP50TnUak

ICAP contribution: Around 5 years ago a question was placed before the ICAP Fiscal Laws Committee head regarding the response of FBR to ICAP suggestions as well as the financial impact of reforms accepted by FBR. Committee head was of the view that FBR current system is unable to measure the impact of any policy change. This is the background of FBR's frequent policy changes in the past and currently. Furthermore, they gave very short time to listen to ICAP suggestions.  I have worked in ICAP committees. They suggest without any data backup. Resultantly, not much weightage by FBR to implement suggestions. Furthermore, committee members are hardly given enough time to prepare suggestions. Hardly, two months before budget instead of the whole year. Subcommittee heads are too preoccupied with their professional assignment and pay minimum time. Hundreds of suggestions instead of few quality suggestions duly supported by data (despite ICAP members in each industry). They can even command access to FBR data to develop a solid foundation of policy-making. However, no such practices, result in a copy-and-paste approach toward policy reforms/suggestions.                  The empirical study concluded with an innovative lowest tax regime of 3 to 5% turnover tax or 30% normal tax whichever is lower (Currently, it is whichever is higher). The lowest tax range was according to sector maturity and other factors. At that time the European Union was also contemplating in(2019)applying turnover tax as Corporate Income tax in the case of Tech companies like Google, Amazon, Facebook etc. due to their lowest tax ratio like Pakistan. Subsequently, France applied a 3% turnover tax as corporate Income tax liability.      A- Empirical study findings:  1. The lowest tax rate of @3 to 5% of turnover or normal tax @29 whichever is lower. 2. Rate would be industry-specific keeping in view industry and business maturity.  3. There would not be any revenue loss to FBR 4. This turnover tax is as per the international practice like France's 3% as corporate Income tax. it is being considered all over the world in other jurisdictions as well. 5- Tax increase would be manifold because tax collections from 1% to 3 to 5% range. Every business would be ready to pay tax up to 5% of turnover. Within three to five years tax to GDP ratio would be as per advanced countries. 6- No more black economy and money laundering. The tax rate would be equal to money laundering cost. 7- A technology based data integration model as well to identify the companies declaring losses or lowest profits. This exercise will help to restructure any sector with new incentives like China did in 2000 in the textile sector. Close loss making units and incentives for high performing units.

With the release of last night's Federal Budget, it's evident the government's focus on large global corporate groups isn't slowing down. The introduction of penalties for mischaracterized cross-border royalty payments, a widened scope of transactions on which foreign residents may be subject to CGT, and increased funding for the ATO's Tax Avoidance Taskforce are just a few of the announced measures. For more details on these measures and how they may affect you, check out the Grant Thornton 2024-25 Budget summary here.