Efforts by Google to Avoid Tax Published by MP report
Introduction: A published MPs report alleges that Google has avoided taxes thru questionable tax arrangements.
As Chair of the Committee of Public Accounts, the Right Honorable Margaret Hodge (Member of Parliament) revealed that large internet company Google paid the UK government merely $16 million in taxes despite having accrued substantial turnouts of $18 billion from 2006 until 2011.
According to the MPs report, in an apparent bid to avoid paying taxes, Google allegedly sought refuge from paying its tax obligations to the UK government by focusing its advertising sales outside the UK, specifically in Ireland. Former employees of the giant internet company have revealed that staff based in the UK participates in the company’s advertising sales efforts, thus making the company’s argument highly questionable. In defense, Google strongly contended before the committee that it had practiced arrangements for settling its taxes with the UK government in a tenable and legitimate manner according to established tax codes. The company also agreed that its engineers perform product development in the UK, which renders indefensible its argument for its overly planned tax structure. This arrangement, according the MPs report, was Google’s method to avert paying established corporation taxes to the government of UK.
The allegations of avoidance of taxes against Google and several other large multinational corporations, such as Amazon and Starbucks, have not been centered on the company alone, as they have also rendered questionable Her Majesty’s Revenue and Customs (HMRC) office. The bigger problem lies in large accountancy companies that offer spurious configurations for avoidance of taxes to the UK government.
Conclusion: The reputation of large multinational companies has been damaged by the promotion of artificial tax structures by big accountancy firms in the UK.
Categories: Federal Tax, Income Tax, State Tax, Tax Evasion, Tax Law Tags:
BIR: Nobody is an exception against tax evasion
Politicians and wealthy personalities are not exempted to pay their fair share of taxes to the government.
Bureau of Internal Revenue (BIR) commissioner Kim Henares emphasized in the course of criticism that the BIR has gone cheating on asking the small-time individuals to pay taxes and getting the rich people away from any tax obligations.
Henares also addressed this leakage towards self-employed and professional workers who are not giving up their financial obligation to the government.
The Professional Regulations Commission hereby showed that there were 3 million registered professionals, among them doctors and lawyers who earned more than their waged worker counterparts.
Taxpayers remitting their shares fairly would have had a big impact to the progress of the country and would be able to reach a collection goal of Php 768.3 billion, 62.7 percent of BIR’s total collection goal (Php 1.225 trillion) for this year.
To counter this problem, the government plans to enhance the audit process through the use of technology and information-based solutions. These would help to identify the country’s taxpayers which are at high-risk of non-compliance.
It also intends to improve information linkages with other government agencies through statistical analysis.
If all are traced reasonably, it would be a good implication that the country tends to boost its revenue collection for the implementation of the local and national projects; giving rise to the law-abiding citizens and a fair status at all levels of the society.
Categories: Federal Tax, Income Tax, Tax Evasion, Tax Law Tags:
New Taxes and Fees to Pay for ObamaCare
Even though you may not support the promotion of ObamaCare someone has to pay for it.
The Affordable Care Act has added new fees and taxes to do just that. Some of these new taxes and fees directly affect insurers. The Act has added seventeen new taxes that will affect most Americans directly in some way.
The one question everyone wants an answer to is how much it will cost the world of struggling small businesses. It appears that small businesses with at least 50 employees and do not currently offer health insurance to their employees could take the hardest hit.
The Kaiser report states that, “more than 90 percent of businesses with 51 or more workers already provided coverage in 2011 and only 57 percent of businesses with 50 or fewer employees provided health benefits.”
Critics of ObamaCare believe that it will hurt business expansion and job growth. Advocates feel in the end it will save businesses money.
Here are a few of the new taxes that will go to pay for ObamaCare:
ü “3.8% surtax on investment income. This is for anyone who has an adjusted gross income of more than $200,000.”
ü “0.9% surtax on Medicare taxes. This is for those who make more than $200,000.”
ü “Any Flexible Spending Account contributions will be capped off at $2,500.”
ü “Itemized-deduction for medical expenses is going up to $10,000.”
ü “Penalties on non-medical withdrawals from Healthcare Savings Accounts have risen from 10% to 20%.”
ü “Indoor tanning services will see a tax of 10%.”
ü “Starting in 2018 the “Cadillac Health Care Plans” will get a 40% tax.”
ü “Tax that eliminates the ability to pay for over-the-counter medicines.”
ü “For those who do not purchase health insurance they will see a penalty tax…”
ü “Medical devices that cost more than $100 will also be taxed.”
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