Posts tagged ‘Tax’

May 24, 2011

UK Government agencies lose £527 million in 2010/2011 to fraudsters

[Benedikt Hoffman, Financial Fraud News Contributor]

International Association for Asset Recovery:  The UK government is proving to be a soft touch for fraudsters as it lost taxpayer‘s money to fraudsters to the tune of some £527 million in the period 2010/2011 according to KPMG‘s Government Fraud Barometer published this May.

According to the report, in the past year, there was a 142 percent uplift in fraud incidents against government agencies.

Whereas, the high level of fraud incidents against government agencies had decreased in 2007/2008 as a result of the government’s focus on value added tax (VAT) cheats which led to a high number of prosecutions in that year, but the focus on tax skimming by fraudsters has returned with a vengence according to recent trends.

Around 114 tax fraudsters were prosecuted in the past year in cases representing around £527 million in thefts (up from £277m in 2008/09).

According to Jeremy Outen, UK Head of Fraud at KPMG: “Financial criminals are now becoming more businesslike and methodical ….The current generation of organized crime is targeting fraud – making payment systems, such as banking, tax and benefits vulnerable to attack…..Traditionally, criminals have relied upon physical acts, such as robbery – they can now commit a fraud and achieve the same returns for much less risk. This is fuelling the audacity and ambition of professional criminals, driving up the size of a fraud…..In addition, technology and large scale processing (such as online or call centers) have made large scale frauds easier to accomplish.”

Read more….

March 24, 2011

UK Chancellor opens up Britain for business with bold budget

MailOnline: Britain’s Chancellor, George Osborne, is claiming that he is the ‘man with the plan’ to get Britain’s troubled business industry back on track. In the budget, reckoned to be one of the boldest in Britain’s recent ‘cash-strapped’ financial crisis, his ‘stimulus’ plan includes:-

  • personal tax allowances rise by £630 to £8,105 in April 2012;
  • fuel duty cut by 1p from 6pm tonight
  • interest-free loans to be made available for first-time buyers
  • company tax to be reduced by 2% from April and 1% in each of the following three years until it is at 23%;
  • possible merger of income tax and National Insurance contributions;
  • a promise to keep inflation at between 4% and 5% this year.

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It is estimated that more than 20% of UK taxpayers will see their income tax bills go down by £320 per annum.

In the meantime, a group of women demonstrated outside Downing Street before the budget announcement protesting that it was a ‘banker’s’ budget and would negatively affect lives of women. They are saying that the budget was bad for women as it included the closure of women’s refuges, cutting child benefits, putting back maternity rights and also major public sector job losses.

Demo: Protesters chain themselves together outside the security gates of Downing Street in London in a bid to stop Chancellor George Osborne leaving to go to the House of Commons to present his annual Budget
[Finance and Economy Contributor]
March 13, 2011

US corporation tax rates to be reduced to create ‘level playing field’

According to a recent Breaking Legal News report, Washington is busy with preparing  another stimulus measure designed to get the ‘financial crisis’ hard-hit US economy back on track.

President Obama has now come out in the open with his plans to lower the US’s corporate tax. Currently, US corporate tax rates are the highest in the world as every company has to give out 39.5% of its income. Whilst the majority of US businesses work hard to meet the nation’s tax obligations,  some of them have been managing to manipulate the system considerably to their advantage and the new measure aims, among other things, to reduce/ eliminate this inequality.

According to Mr. Obama, “over the years, a parade of lobbyists has rigged the tax code to benefit particular companies and industries. Those with accountants or lawyers to work the system can end up paying no taxes at all. But all the rest are hit with one of the highest corporate tax rates in the world.”

The president’s initiative has so far been met with a warm response by US business groups, but the country’s liberals are furious saying that it ignores the country’s deficit problem and leaves the rich and the near-rich with most of their cash which is contrary to Mr. Obama’s election promises.

[Financial News Contributor]