By Dan Walters, CALmatters | PUBLISHED: June 25, 2018 at 12:00 pm | UPDATED: June 25, 2018 at 12:34 pm When President Donald Trump signed an overhaul of the federal tax system six months ago, there was much complaining from politicians in California, New York and other high-taxing – and politically blue – states. They particularly disliked a new $10,000 limit on deductibility of state and local taxes because it would make their taxpayers, particularly the most affluent, feel the full financial effects of high state taxes. They feared that those highly impacted taxpayers would find ways to reduce or eliminate their state tax liabilities since they could no longer write them off on federal tax returns, and that would cut into state revenue streams. The potential impact would be especially heavy in California because of the state’s lopsided dependence on its highest-income residents. The top 1 percent of California taxpayers account for nearly half of the … [Read more...] about Walters: IRS nixes California’s federal tax dodge scheme
Tax saving schemes
The taxman has teamed up with the advertising watchdog to crack down on companies touting schemes to avoid tax. The complicated arrangements, which often involve a bewildering array of loans or shell companies, offer to limit their user’s liability for income tax, national insurance or stamp duty. HM Revenue & Customs is active in challenging them, saying these “tax avoidance” plans aren’t likely to hold up to scrutiny. But now it seems to be trying out a new tactic. Rather than attempting to close the schemes down, HMRC is reporting firms that make spurious claims about tax mitigation to the Advertising Standards Authority (ASA). The watchdog yesterday published its ruling on a company called CDP Tax and Wealth, which trades under the name Fiducia Wealth and Tax. The firm’s website claimed the scheme would “save you a minimum of 60pc” on stamp duty and that the company was endorsed by the Solicitors Regulation Authority. The ASA ruled … [Read more...] about Taxman and advertising watchdog get tough on dubious tax avoidance schemes
Opinion By David Sirota Published 5:59 pm, Thursday, August 28, 2014 READ ANOTHER OPINION Potent legal claims throw Trump on the defensive A reminder of just how wrong Trump apologists were Republicans demonstrate they aren't up to the task of... What authoritarians do: Attack the apolitical administration... Reading companies' annual reports to the Securities and Exchange Commission is a reliable cure for insomnia. Every so often, though, there is a significant revelation in the paperwork. This year, one of the most important revelations came from Microsoft's filings, which spotlighted how the tax code allows corporations to enjoy the benefits of American citizenship yet avoid paying U.S. taxes. According to the SEC documents, the company is sitting on almost $29.6 billion it would owe in U.S. taxes if it repatriated the $92.9 billion of earnings it is keeping offshore. That amount of money represents a significant spike from prior years. To put this in … [Read more...] about Should companies have to pay taxes?
The Childcare Voucher scheme has had its deadline extended for new members by another six months following a Commons debate. The Government initiative, which means parents can save up to £933 a year on childcare, was supposed to be closed to new members on April 6 making way for Tax-Free Childcare, another scheme that was launched last year. Both schemes reduce the cost of childcare but one may suit your circumstances better. For example, the vouchers are not offered by all employers, meaning that many people miss out. Sodexo Benefits and Rewards Services, a facilities management company that runs a voucher scheme, suggested that many parents would do better to stick with childcare vouchers, although some current voucher users will in fact be better off with the new scheme. Tax-Free Childcare benefits self-employed people and parents with high childcare costs, but will leave some basic-rate taxpayers and single parents worse off, according to one … [Read more...] about Childcare voucher scheme extended by another six months for new members
A HOST of top BBC presenters have accused the corporation of forcing them into an “industrial-level tax avoidance” scheme. A tax tribunal found that BBC beancounters pressured stars to set up "personal service companies" - saving telly chiefs millions by not paying National Insurance. But several presenters who set up the companies are being hit by tax demands from HMRC - and think the BBC should foot the bill. One presenter, who is a household name, told the Sunday Telegraph: “If the BBC had held its hands up and said, ‘We shouldn’t have done this’, people would have accepted it. “But we have sat by for years watching the BBC say this is nothing to do with them, as if we all spontaneously and independently decided to set up personal service companies at the same time. “We were never given the option of being staff. This was industrial level tax avoidance by the BBC." They added that there is a reluctance to speak out over fears of being … [Read more...] about BBC presenters slam corporation over tax ‘stitch up which has left them being chased for hundreds of thousands of pounds’