The week's tax news in one handy summary.
New Zealand Tax
- With provisional tax due next Monday, here's an excellent article on why many small businesses struggle to pay tax on time | Getting paid is hard to do: Why being a small business owner in New Zealand sucks
- Mulling further on this issue, I wonder whether delays in payment indirectly encourage tradies to pursue "cashies". Maybe what's good for Fonterra is bad for the wider economy?
- Some interesting snippets here | How much tax is the Government collecting?
- Remember GST for 30th November 2017 and the second instalment of provisional tax for the 2018 income year are both due today
- See here for my initial take on the taxation of cryptocurrencies
- Interesting paper examining the effects of penalties on GST late payers. Author's research suggests "taxpayers were unresponsive to penalties"
- Non payment of PAYE is pretty much always a red flag for a failing business | Failed recycling boss guilty of $385k tax rort
Inland Revenue news
- This is a cautious approach. My understanding is that draft guidance will be issued shortly | What the IRD is (loosely) advising cryptocurrency investors to do
- This is a huge win for due process. Will be interesting to see if IRD appeal | Auckland accountants Chatfield & Co win tax document fight with IRD
- OECD Tax @OECDtax We are seeking stakeholder input on new #tax rules requiring disclosure of #CRS avoidance arrangements and offshore structures. Send us your comments by 15 January
- This was just the tax it saved in 2016 | Google slammed for using controversial tax haven that saved it $5.1 billion in taxes
United States Tax
- A few years back I had some very heated debates with Inland Revenue about a similar initiative. My view was, & remains, farming out tax collection is a bad idea | IRS private debt-collection program hurts low-income Americans
- You can be sure @NZInlandRevenue is also monitoring crypto trading activity | The ATO is coming for crypto traders (via @BIAUS)
United Kingdom Tax
- There aren't any direct comparisons available but according to its annual report during the year ended 30th June 2017 @NZInlandRevenue completed 114 prosecutions for tax evasion, knowledge & Crimes Act 1961 offences
- One of the sections to the original 1799 legislation was included in the Income & Corporations Tax Act 1988 (it allowed a deduction for horse expenses wholly exclusively and necessarily incurred)
- According to Financial Times calculations Apple paid just €344m of tax in its main European markets over the decade to 2015
- The 30 day timeline is ridiculously shortl A better solution would be to lay the onus on the solicitors acting to report the sale | HMRC maintains tough attitude on non-resident capital gains tax
- Penalties start at 20% of tax for first defeat, rising to 60% for three or more | HMRC issues guidance on how the UK serial tax avoidance regime is being
I follow interesting tax news stories from around the world and share them on Twitter.
These are a selection of our best tweets from the previous week.