DOCSLIB.ORG

Tdas: an Investment in Your Future

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Tdas: an Investment in Your Future TDAs: An Investment In Your Future Have you thought lately about your retirement? About what you want to do? About whether you’ll have enough money to live comfortably and pursue your interests? Chances are, if you’ree young, you haven’t givengiven retirementretirementetirement much much thought. thought.And, if you’re And, olderif you’r, youe older may , haveyou maygiven have it some given thought, it some butthought, you may but younot havemay notdone have what done you what need you to do need to ensureneed to financial do to ensur security.e financial No matter security.what your No age, matter now whatis the your best age,time now to start is the preparing best time for to retirstart preparing forbecause retirement Congress because has made Congr savingess has for made retirement saving morfor retirement more attractiveever.ever This thanbrochur ever. This brochure describes one of the best ways toetire- begin yourretirement planning.e’s why: Here’s why: YourYour retir retirement income will basically come from threeee sources: sources: • RetirRetirementement plans:plans: YourYour benefitbenefit frfrom Teacher Retirementement System System (TRS) (TRS)or the Optionalor the Optional Retirement Retir ementPr Program (ORP) and possibly other employers’ retirement plans • Social Security • Your personal savings Most retireesrretirees fifind that income fromom theirtheir employeremployer retirementretirement plans plans and and Social Security is not enough to maintain the standardd of living of living they theywould would like tolike enjoy to enjoy during during r ement.retirement. Too be To truly be trulycomfortable, comfortable, most most people need personal savings as well. One of the best ways to build personal savings is by etirementusing a Tax is -Deferredby Account (TDA). Throughed Account the A&M(TDA). System, Throughough you the can A&M contribute System, to you a traditional or Roth TDA through convenient payrollough convenientdeduction. Withpayroll the Tdeduction.raditional WTDA, yourraditional contributions TDA, TDA, your contributionsyour contributions aree from are before-from before-tax income.tax income. W With a Roth TDA, your contributionse from are after-tax from after- tax income. And the earlier you start, the moree you you can cansave save for foryour your future. future. TThishis brochurbrochure describes how a TDA works, its advantages and how you advantagescan enroll. Tand how you can enroll. Take a few minutes nowe. to invest in your future. What is a Tax-Deferred Account? A Tax-Deferred Account (TDA) is a way for you to save for retire- TDA Advantages ment. All A&M System employees, including wage employees TDAs have many advantages over traditional savings: and graduate students, can use the traditional and/or Roth TDA • You choose how much to save through convenient to lower current federal income tax liability or future federal tax payroll deduction. liability upon retirement. • You choose how to invest your money and have fl exibility in changing investments. When you enroll in a traditional or Roth TDA, you agree to have • You choose how to receive your money when you a specifi c amount or percentage deducted from each of your pay- retire, from the choices offered by your investment vendor. checks and sent to the investment vendor you choose from the A&M System list of active vendors. Traditional TDA Advantages • You can save before-tax money for retirement, With a traditional TDA, your contribution is deducted from your lowering your current income taxes. pay before federal income tax is calculated, so you do not pay cur- • While your taxable income is lower, your Social Security and A&M System benefi ts, such as life rent income tax on your contributions and the money does not show insurance, will be based on your total salary. up on your W-2 form as income. Likewise, you do not pay current • If you believe your tax bracket will be lower when income tax on the investment earnings on your TDA savings. you retire, the tax you eventually pay on your TDA money will probably be less than if you were taxed With a Roth TDA, your contribution is deducted from your pay now. • Your savings will grow faster because taxes on after federal income tax is calculated, so you pay current income earnings are deferred. tax on your contributions and the money is included on your W-2 form as income. You do not pay income tax on your invest- Roth TDA Advantages ment earnings now or in the future. • You withdraw contributions and earnings tax-free when you retire. • If you believe your tax bracket will be higher when The money you save through your TDA, as well as the invest- you retire, the tax you pay today will be less than ment earnings it generates, will be paid to you during retirement. in the future. When you begin receiving your traditional TDA money, you will • Contributing to a Roth TDA may reduce your tax- then have to pay income tax on it. When you begin receiving able income later if your Social Security benefi ts your Roth TDA money, the contributions and earnings are not are near or exceed the limit. • The Roth TDA became a permanent provision part of your taxable income. with the Pension Protection Act of 2006. The Tax Advantage of a Traditional TDA: Investment Earnings Deferring taxes on your investment earnings until retirement is a major advantage. Because you do not pay income tax- es each year on earnings, money that would otherwise go to pay taxes remains in your account and is invested to help your account grow even faster. Here’s an example of how the same amount of savings grows over the years, one with tax-deferred earnings and one with earnings taxed each year. For purposes of the example, we’ll assume you contribute $100 to the account each month, earn 8% and are in a 27% tax bracket. Tax-deferred 5 years 10 years 15 years 20 years 25 years 30 years $7,397 $18,417 $34,835 $59,295 $95,737 $150,030 After-tax 5 10 15 20 25 30 $5,027 $11,754 $20,756 $32,802 $48,922 $70,492 Even if you pay 27% in taxes on your account balance at withdrawal, a total of $40,508, you’ll still end up with $109,522 from your traditional TDA, $39,030 more than in the after-tax account. And, your tax bracket may be lower at retirement than during your working years, giving you an even larger advantage. the following month, as often as Comparison of Traditional and Roth TDA you like. Contributions on Monthly Income And, you may change vendors for already invested money, for future Traditional Roth contributions or for both. Gross Income $ 50,000 $ 50,000 Traditional Contribution <5,000> N/A Any investment involves some risk. Taxable Income $ 45,000 $ 50,000 Often, those investments with the most 25% Income Tax <11,250> <12,500> risk also have the highest potential for After-Tax Income $ 33,750 $ 37,500 growth. You are fully responsible for Roth Contribution N/A <5,000> choosing your investment vendor(s) Take-home Pay $ 33,750 $ 32,500 and fund(s) and for any gains and losses in your account value. Questions to Consider Before Deciding on a A variety of vendors are authorized by the A&M System so that you can Traditional or Roth TDA choose the type of investment and the The more you answer “yes,” the more likely the Roth TDA may be right for you. amount of risk you are willing to as- • Do I plan to work quite a few more years before retiring? sume. You may want to talk to a num- • Do I think my tax rate will be higher by the time I retire? ber of vendors and carefully review • Am I willing to swap a current tax break for a longer-term tax benefi t? • Can I afford to spend more of my annual salary now so I can contribute the same their investment options, charges and to an after-tax Roth TDA as I would to a pre-tax traditional TDA? past investment performance before • Do I like the idea of diversifying my tax strategy, just like I diversify my invest- making a choice. You may also want to ment strategy? consult a professional investment and • Am I focused on passing as much as possible to my heirs? tax advisor about the best types of in- Contributions If you and your spouse are both em- vestments for your personal situation and which TDA works best for you. You may contribute as little as $25 per ployed by the A&M System, you may month to a TDA. The maximum con- each have your own TDA and the con- Information on retirement products tribution amount for both traditional tribution limits will apply separately. offered by active vendors can be found at each vendor’s web site. Links to and Roth TDAs, which is set by the You may begin a TDA or change your vendor web sites are located at IRS, will be as follows in 2019: contribution amount once each tamus.edu/offices/benefits/retirement/. month. Also, you may stop If you are younger than 50 contributing to your TDA at any time Distributions • $19,000 if you have less than 15 by updating your amount percentage Because the purpose of a TDA is to years of A&M System service to $0 in Workday. Changes are provide retirement income, you may effective the 1st of each month begin receiving distributions from If you are 50 or older following the day you make the your account without penalty any time • $25,000 if you have less than 15 change.
Load more

Recommended publications
  • Creating Market Incentives for Greener Products Policy Manual for Eastern Partnership Countries
    Creating Market Incentives for Greener Products Policy Manual for Eastern Partnership Countries Creating Incentives for Greener Products Policy Manual for Eastern Partnership Countries 2014 About the OECD The OECD is a unique forum where governments work together to address the economic, social and environmental challenges of globalisation. The OECD is also at the forefront of efforts to understand and to help governments respond to new developments and concerns, such as corporate governance, the information economy and the challenges of an ageing population. The Organisation provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice and work to co-ordinate domestic and international policies. The OECD member countries are: Australia, Austria, Belgium, Canada, Chile, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The European Union takes part in the work of the OECD. Since the 1990s, the OECD Task Force for the Implementation of the Environmental Action Programme (the EAP Task Force) has been supporting countries of Eastern Europe, Caucasus and Central Asia to reconcile their environment and economic goals. About the EaP GREEN programme The “Greening Economies in the European Union’s Eastern Neighbourhood” (EaP GREEN) programme aims to support the six Eastern Partnership countries to move towards green economy by decoupling economic growth from environmental degradation and resource depletion. The six EaP countries are: Armenia, Azerbaijan, Belarus, Georgia, Republic of Moldova and Ukraine.
    [Show full text]
  • Alternative Approaches to Designing Financial Incentives
    OECD PROJECT ON FINANCIAL INCENTIVES AND RETIREMENT SAVINGS POLICY BRIEF N°3 DECEMBER 2018 Alternative approaches to designing financial incentives The most common type of financial incentive savings are taxed upon withdrawal. In contrast, used by governments to promote savings for individuals would be better-off paying taxes retirement, is to defer taxation by taxing upfront when they expect tax rates during individuals only on their pension benefits retirement will be greater than when they are (“EET”). Governments are alternatively using working. other approaches to providing financial In the long run, upfront taxation may translate incentives, either through the tax system (e.g. into a higher fiscal cost than taxation upon upfront taxation or tax credits) or outside the tax withdrawal. Figure 2 compares the yearly fiscal system (e.g. matching contributions and fixed effects of the two tax regimes. It shows that, in nominal subsidies). the short term, upfront taxation leads to a lower Taxing retirement savings upfront or upon fiscal cost than taxation upon withdrawal. Taxing withdrawal only withdrawals and thus deferring tax collection, brings the full cost of tax revenues Taxing retirement savings upfront (i.e. taxing forgone on contributions upfront. With upfront only contributions, “TEE”) is often seen as an taxation, the fiscal cost is just equal to tax equivalent approach to taxing retirement savings revenues forgone on returns. In the long term, upon withdrawal (“EET”). Both tax regimes do once the two systems reach maturity, the fiscal indeed provide the same overall tax advantage to impact is reversed with taxation upon withdrawal individuals when their income is subject to the leading to a lower annual fiscal cost than upfront same marginal tax rate throughout working and taxation.
    [Show full text]
  • European Parliament Resolution of 26 March 2019 on Financial Crimes, Tax Evasion and Tax Avoidance (2018/2121(INI)) (2021/C 108/02)
    C 108/8 EN Official Journal of the European Union 26.3.2021 Tuesday 26 March 2019 P8_TA(2019)0240 Report on financial crimes, tax evasion and tax avoidance European Parliament resolution of 26 March 2019 on financial crimes, tax evasion and tax avoidance (2018/2121(INI)) (2021/C 108/02) The European Parliament, — having regard to Articles 4 and 13 of the Treaty on European Union (TEU), — having regard to Articles 107, 108, 113, 115 and 116 of the Treaty on the Functioning of the European Union (TFEU), — having regard to its decision of 1 March 2018 on setting up a special committee on financial crimes, tax evasion and tax avoidance (TAX3), and defining its responsibilities, numerical strength and term of office (1), — having regard to its TAXE committee resolution of 25 November 2015 (2) and its TAX2 committee resolution of 6 July 2016 (3) on tax rulings and other measures similar in nature or effect, — having regard to its resolution of 16 December 2015 with recommendations to the Commission on bringing transparency, coordination and convergence to corporate tax policies in the Union (4), — having regard to the results of the Committee of Inquiry into money laundering, tax avoidance and tax evasion, which were submitted to the Council and the Commission on 13 December 2017 (5), — having regard to the Commission’s follow-up to each of the above-mentioned Parliament resolutions (6), — having regard to the numerous revelations by investigative journalists, such as the LuxLeaks, the Panama Papers, the Paradise Papers and, more recently, the cum-ex scandals, as well as the money laundering cases involving, in particular, banks in Denmark, Estonia, Germany, Latvia, the Netherlands and the United Kingdom, — having regard to its resolution of 29 November 2018 on the cum-ex scandal: financial crime and loopholes in the current legal framework (7), (1) Decision of 1 March 2018 on setting up a special committee on financial crimes, tax evasion and tax avoidance (TAX3), and defining its responsibilities, numerical strength and term of office, Texts adopted, P8_TA(2018)0048.
    [Show full text]
  • Flat Tax: an Overview of the Hall-Rabushka Proposal
    . Flat Tax: An Overview of the Hall-Rabushka Proposal James M. Bickley Specialist in Public Finance November 29, 2011 Congressional Research Service 7-5700 www.crs.gov 98-529 CRS Report for Congress Prepared for Members and Committees of Congress c11173008 . Flat Tax: An Overview of the Hall-Rabushka Proposal Summary The President and leading Members of Congress have stated that fundamental tax reform is a major policy objective for the 112th Congress. The concept of replacing individual and corporate income taxes and estate and gift taxes with a flat rate consumption tax is one option to reform the U.S. tax system. The term “flat tax” is often associated with a proposal formulated by Robert E. Hall and Alvin Rabushka (H-R), two senior fellows at the Hoover Institution. In the 112th Congress, two bills have been introduced that included a flat tax based on the concepts of Hall- Rabushka: the Freedom Flat Tax Act (H.R. 1040) and the Simplified, Manageable, and Responsible Tax Act (S. 820). In addition, Republican presidential candidate Herman Cain has proposed a tax reform plan that includes a modified H-R flat tax. This report analyzes the Hall- Rabushka flat tax concept. Although the current tax structure is referred to as an income tax, it actually contains elements of both an income and a consumption-based tax. A consumption base is neither inherently superior nor inherently inferior to an income base. The combined individual and business taxes proposed by H-R can be viewed as a modified value- added tax (VAT). The individual wage tax would be imposed on wages (and salaries) and pension receipts.
    [Show full text]
  • Anti-Avoidance and Tax Laws: a Case of Fiji
    International Journal of Business and Social Research Volume 09, Issue 03, 2019: 01-20 Article Received: 03-07-2019 Accepted: 28-04-2019 Available Online: 22-07-2019 ISSN 2164-2540 (Print), ISSN 2164-2559 (Online) DOI: http://dx.doi.org/10.18533/ijbsr.v9i3.1165 Anti-Avoidance and Tax Laws: A Case of Fiji Shivneil Kumar Raj1, Mohammed Riaz Azam2 ABSTRACT The pervasiveness of tax avoidance is undoubtedly linked to the tax policies of any country. In Fiji, residents for tax purpose have to disclose income from all sources within and outside Fiji whereas non- resident has to disclose income derived from sources in Fiji. Fiji has a comprehensive tax system put in place with tax laws continued to be amended to curb any loopholes in the system so that everyone pays their fair share of tax. Thus, this research paper applied document analysis methodology. The objective of this research was to highlight Fiji’s position on tax avoidance and how has Fiji addressed such issues identified in Base Erosion Profit Shifting (BEPS). Furthermore, the paper has discussed, Fiji’s tax laws relating to anti-avoidance and provide recommendations to further strengthen and protect Fiji’s tax base from being eroded away through various schemes or arrangements that taxpayer’s might indulge into for the purpose of paying less tax or avoiding tax. The findings indicated that Fiji’s position on tax avoidance issues has remained firm, pro-active and have made substantial progress in regulatory framework and in tax compliance culture. Keywords: Tax, Tax Avoidance, Tax Evasion, Anti-Avoidance, BEPS and Fiji Income Tax Act.
    [Show full text]
  • Spectrum Tax Advantage SMA Select UMA Principal Global Investors
    Spectrum Tax Advantage SMA Select UMA Principal Global Investors Style: Preferred Securities Year Founded: 1983 Sub-Style: Preferred Securities GIMA Status: Approved 888 7th Ave; 25th Flr Firm AUM: $28.5 billion Firm Ownership: Principal Financial Group New York, New York 10019 Firm Strategy AUM: $1.5 billion Professional-Staff: 23 PRODUCT OVERVIEW TARGET PORTFOLIO CHARACTERISTICS PORTFOLIO STATISTICS Principal Global Investor, LLC's (Principal Global) investment Number of bond holdings: 80 to 100 ---------------06/21------ 12/20 philosophy is based on the belief that preferred securities have the ---------- Average maturity: 17.0 to 100.0 years Principal Index*** Principal potential to provide investors with the opportunity to receive relatively Global Global 5.0 to 10.0 years high current income and enhanced diversification. While Preferred Average duration: Number of bond holdings 105 — 116 Security strategy is classified as fixed income for allocation purposes, Average coupon: 4.0 to 9.0% the preferred securities in the strategy may be equity preferred Yield 4.6 — 4.8 securities (an equity position in the issuer, pay dividends at the Average turnover rate: 10 to 30% Distribution Rate — — — discretion of the issuer's board, and usually has no set maturity date) or debt preferred securities (a debt obligation of the issuer, pay Avg maturity 87 yrs. — 86.7 yrs. monthly or quarterly interest income, and may have fixed, long-term maturities), have other equity-like and/or debt-like features depending Avg duration 2.49 yrs. — 2.66 yrs. on terms of issue, and may be shown in account statements and on Avg coupon 5.0% — 5.2% trade confirmations as either equity or fixed income.
    [Show full text]
  • Tax Strategies for Making the Most of Your Wealth Maximizing Your Options in Each Phase of Life Table of Contents
    Tax Strategies for Making the Most of Your Wealth Maximizing your options in each phase of life Table of Contents Introduction: The most basic economics . .3 . Part I: Tax strategies for building wealth . 4. Part II: Tax strategies for accessing your wealth . 8. Part III: Wealth transfer . .11 Part IV: Special business owners’ section . .13 . TAX STRATEGIES FOR MAKING THE MOST OF YOUR WEALTH | 2 Building & Accessing The most basic economics In the simplest terms, financial life can be divided into Tax-aware wealth two phases: building wealth and accessing it. In modern society, you often hear about these in terms of working planning provides a to accumulate wealth, fully accessing it in retirement, and eventually transferring it to the next generation. But often lifetime advantage . these phases happen simultaneously. And when you’re It creates a talking about a high-net-worth portfolio, the building and stewarding of assets can be complicated even more by a framework to sea of regulations and tax laws, as well as many different transfer strategies. maximize returns This e-book lays out what Laird Norton Wealth Management across your entire (LNWM) uses to help our clients manage taxes when asset base now building, accessing and transferring wealth. In it, we’ll introduce you to our unique framework and how it applies and for generations before and after retirement. And finally, if you own a to come . business, we’ll offer you specific insights and ideas on optimizing your after-tax returns. TAX STRATEGIES FOR MAKING THE MOST OF YOUR WEALTH | 3 PART I: Tax strategies for building wealth Do you have a tax-aware mindset? A tax-aware mindset isn’t about avoiding taxes; it’s about having the largest possible return in your pocket after paying them.
    [Show full text]
  • GOODS and SERVICE TAX (GST) Seminar Compendium
    GOODS AND SERVICE TAX (GST) Seminar Compendium Editor–in–Chief: Rev. Dr. Daniel Fernandes, SJ. ii GOODS AND SERVICE TAX (GST) Editor–in–Chief: Rev. Dr. Daniel Fernandes, SJ. Editors CMA. Ravidarshini Dr. Shubhra Rahul Dr. Mohan P.Philip Dr. Raja Jebasingh POST GRADUATE AND RESEARCH DEPARTMENT St. Joseph’s College of Commerce (Autonomous) 163, Brigade Road, Bangalore–560 025 iii Editorial Team Rev. Dr. Daniel Fernandes, SJ. Editor-In-Chief Editors: CMA. Ravidarshini Dr. Shubhra Rahul Dr. Mohan P. Philip Dr. Raja Jebasingh Edited & Published By: Post Graduate and Research Department, St. Joseph’s College of Commerce (Autonomous), 163, Brigade Road, Bangalore – 560 025, Karnataka Email: [email protected] Copyright@2015: Rev. Dr. Daniel Fernandes, SJ. St. Joseph’s College of Commerce (Autonomous), Bangalore – 560 025. Published: 2015 ISBN: 978-81-924180-4-9 Disclaimer: Responsibilities for the content of the full papers included in the publication remain with these respective authors. Typesetting and Printed at iv PREFACE I have great pleasure in publishing a compendium of proceedings of the national seminar organized by the post graduate department of Commerce on ‘Goods and Services Tax Bill’. The proposed Goods and Service Tax Bill or GST Bill, officially referred to as the Constitution (One Hundred and Twenty-second Amendment) Bill, 2014 is expected to reform the regulatory framework that governs the indirect tax regime within India. By the implementation of GST, the central government is hoping to create a common Indian market and thereby to reduce the cascading effect of tax on the cost of goods and services. GST bill is expected to impact the present tax structure, tax incidence, tax computation, credit utilization and reporting, which may lead to a complete overhaul of the current indirect tax system.
    [Show full text]
  • Tax Crimes Handbook
    TAX CRIMES HANDBOOK Office of Chief Counsel Criminal Tax Division 2009 PREFACE The goal in developing this handbook was to provide a resource for Criminal Tax Attorneys to use in the course of advising their client on criminal tax matters, and in evaluating recommendations for prosecution. This handbook is not intended to create or confer any rights, privileges, or benefits on any person. It is not intended to have the force of law, or of a statement of Internal Revenue Service policy. See, United States v. Caceres, 440 U.S. 741 (1979). _________/s/______________ EDWARD F. CRONIN Division Counsel/Associate Chief Counsel (Criminal Tax) Internal Revenue Service This Page is Blank – NO BORDER CHAPTER 1 TITLE 26 TAX VIOLATIONS SECTION 1 TAX EVASION - I.R.C. § 7201 1-1.01 Statutory Language 2 1-1.02 Generally 2 1-1.03 Evasion of Assessment 4 [1] Elements of the Offense 4 [2] The Attempt 4 [3] Additional Tax Due and Owing 6 [4] Willfulness 9 [5] Venue 13 [6] Statute of Limitations 14 1-1.04 Evasion of Payment 15 [1] Elements of the Offense 15 [2] The Attempt 15 [3] Additional Tax Due and Owing 17 [4] Willfulness 17 [5] Venue 18 [6] Statute of Limitations 18 1-1.05 Collateral Estoppel 18 1-1.06 Lesser Included Offenses 19 1-1.07 Table of Cases 20 i CHAPTER 1 TITLE 26 TAX VIOLATIONS SECTION 2 WILLFUL FAILURE TO COLLECT OR PAY OVER TAX I.R.C. § 7202 1-2.01 Statutory Language 30 1-2.02 Generally 30 1-2.03 Elements of the Offense 30 [1] Duty to Collect and/or to Truthfully Account for and Pay Over 31 [2] Failure to Collect or Truthfully Account for and Pay Over 31 [3] Willfulness 31 1-2.04 Motor Fuel Excise Tax Prosecutions 33 1-2.05 Venue 33 1-2.06 Statute of Limitations 33 1-2.07 Table of Cases 35 ii CHAPTER 1 TITLE 26 TAX VIOLATIONS SECTION 3 FAILURE TO FILE, SUPPLY INFORMATION OR PAY TAX - I.R.C.
    [Show full text]
  • The Economic and Social Consequences of Tax Havens in the World
    SHS Web of Conferences 83, 01041 (2020) https://doi.org/10.1051/shsconf/20208301041 Current Problems of the Corporate Sector 2020 The Economic and Social Consequences of Tax Havens in the World Gizela Lénártová1* 1 University of Economics in Bratislava, Faculty of Business management, Department of Corporate Finance, Dolnozemská 1, 851 04 Bratislava, Slovak Republic Abstract. The tax havens in the world have become the global phenomenon related tax avoidance, tax fraud and evasion and money laundering. The aim of the paper is to analyze their scope and to assess economic and social consequences of their existence in the world society, world economy, international and national tax systems. Many analyzes of the current situation and reported cases show that tax havens are threatening the stable development of the world economy, causing negative consequences of the economic, social, security and humanitarian nature of the global scale. Combating tax avoidance, tax fraud and evasion through tax havens must be stronger and more effective all around the world. 1 Introduction Globalization significantly affects all ongoing processes in the world economy, while its positive and negative consequences can be observed throughout society. Piketty [1] has analyzed the current problems of the world economy, examining the causes of inequality, and his former doctoral student Gabriel Zucman [2] has focused on tax havens in the world. Tax havens are used for a variety of purposes, in particular to achieve tax savings, exploit anonymity, and protect assets and hide wealth. Tax savings may or may not mean tax evasion. Sometimes it is about tax avoidance. There is no big difference between them.
    [Show full text]
  • Global Indirect Tax News- November 2016
    Global Tax & Legal | Global Indirect Tax | November 2016 Global Indirect Tax News Your reference for indirect tax and global trade matters Welcome to the November 2016 edition of GITN, covering updates from the Americas, Asia Pacific and EMEA regions. Features of this edition include indirect tax reforms in Colombia and Mexico, increased export VAT refund rates in China and indirect tax measures set out in the UK’s Autumn Statement. If you have any queries or comments about the GITN, I would be delighted to hear from you. David Raistrick Deloitte Global Leader – Indirect Tax In this edition of GITN: OECD InCountry this edition summaries of GITN: Americas OECDAsia Pacific CountryEMEA summaries AsiaEurasian Pacific Economic Union EMEAContacts Eurasian Economic Union ContactsOECD OECD The OECD has launched a Read More business survey on direct and indirect tax certainty. Country summaries Americas Colombia The draft tax reform includes a Read More number of changes to indirect taxes, including: Changes to the events that trigger VAT, such as, VAT on real property, intangible goods, lotteries, and services rendered both on Colombian territory and abroad if recipients are located in Colombia. A consumption tax on sugary drinks and an increase in consumption tax for cigarettes. The creation of a new tax on the sale of gasoline by oil refiners and importers. The creation of a new tax on carbon. Mexico Congress has approved the 2017 Read More tax reforms, including VAT changes in the following areas: VAT paid to outsourcing companies. VAT paid during preoperational periods. VAT on tangible goods when rent is paid abroad.
    [Show full text]
  • Developing Countries' Role in International Tax Cooperation
    Developing Countries’ Role in International Tax Cooperation Working Paper commissioned by the G-24 as part of its work program on how developing countries can effectively tap into international tax cooperation 25 May 2017 Martin Hearson1 1 The author is Fellow in International Political Economy at the London School of Economics and Political Science. Information about countries’ participation in multilateral organisations and initiatives is correct as of 25 May 2017. Haiti and Morocco joined the G-24 in April 2017, after the analysis in this paper was finalised. Introductory note International tax cooperation has become a high-profile and controversial area in recent years, the product of media scandals about corporate tax avoidance, and disagreements between countries about how best (and perhaps how much) to tackle it. This document sets out brief background on a number of these international tax areas of interest to developing countries, where the G-24 may have a role to play in ensuring that these views are represented in global discussions. It is intended as a scoping document to aid consultations with G-24 members and other stakeholders. Section 1 will give some background explaining the importance of taxation to G-24 members, and their success at raising revenue up to now. It also explains the general nature of international tax cooperation. The following four sections outline the strengths and weaknesses of international tax cooperation from a developing country perspective, in three different areas. Section 2 covers tax planning, avoidance and evasion, where the OECD and G-20 have led considerable progress in recent years, but there are some questions about the relevance of the steps they have taken to developing countries.
    [Show full text]