Tax evasion – ATO Ogratuit http://atoogratuit.com/ Sat, 18 Sep 2021 03:57:11 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://atoogratuit.com/wp-content/uploads/2021/06/icon-5-150x150.png Tax evasion – ATO Ogratuit http://atoogratuit.com/ 32 32 CUNA Calls on Congressional Leaders to Oppose Increased Reporting Requirements | 2021-09-17 https://atoogratuit.com/cuna-calls-on-congressional-leaders-to-oppose-increased-reporting-requirements-2021-09-17/ https://atoogratuit.com/cuna-calls-on-congressional-leaders-to-oppose-increased-reporting-requirements-2021-09-17/#respond Fri, 17 Sep 2021 20:46:00 +0000 https://atoogratuit.com/cuna-calls-on-congressional-leaders-to-oppose-increased-reporting-requirements-2021-09-17/ CUNA on Friday joined dozens of organizations calling on congressional leaders to oppose any effort to advance the Internal Revenue Service’s expanded reporting requirements. Language demanding increased reporting was discussed as part of the House infrastructure legislation, but the House Ways and Means Committee passed the bill on Wednesday without including it. Provisions requiring financial […]]]>

CUNA on Friday joined dozens of organizations calling on congressional leaders to oppose any effort to advance the Internal Revenue Service’s expanded reporting requirements. Language demanding increased reporting was discussed as part of the House infrastructure legislation, but the House Ways and Means Committee passed the bill on Wednesday without including it.

Provisions requiring financial institutions to track and submit to the IRS information on the inflows and outflows of each account above a de minimis threshold of $ 600 during the year, including breakdowns of treasury, were discussed in the framework of the infrastructure negotiations.

CUNA issued an action alert calling on stakeholders to share their concerns with Capitol Hill, and on Friday more than 170,000 messages were sent.

“While the stated goal of this vast data collection is to uncover tax evasion by the wealthy, this proposal does not remotely target that goal or that population,” reads CUNA’s joint letter to CUNA leaders. bedroom. “In addition to significant privacy concerns, it would create a huge liability for all parties involved in requiring the collection of financial information for almost all Americans without a proper explanation of how the IRS will store, protect and use this enormous treasure trove of personal financial information. . “

A separate joint letter written to House and Senate leaders cites a recent poll by Morning consultation showing that two-thirds of voters (67%) oppose proposals to transfer more bank data to the IRS.

“The opposition is bipartisan, with more than half of voters (53%) strongly opposed and only 22% in favor,” the letter reads. “Comprehensive and indiscriminate data collection would amount to a troubling effort to profile US taxpayers based on the characteristics of accounts without grounds for suspicion of tax evasion. Such profiling is inappropriate in all law enforcement contexts.

CUNA wrote to the House Ways and Means Committee ahead of the markup and asked the leagues to support a letter signed by more than 140 members of Congress sharing similar concerns.

CUNA continues to call on credit union advocates to use its Grassroots Action Center to send a message outlining concerns about the proposal, which was discussed as part of the Build Better Act. Credit unions can also activate their members to send messages to Capitol Hill through the CUNA Member Activation Program (MAP) community.

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Indian authorities use tax evasion charges to silence critics, Human Rights Watch says https://atoogratuit.com/indian-authorities-use-tax-evasion-charges-to-silence-critics-human-rights-watch-says/ https://atoogratuit.com/indian-authorities-use-tax-evasion-charges-to-silence-critics-human-rights-watch-says/#respond Fri, 17 Sep 2021 11:03:00 +0000 https://atoogratuit.com/indian-authorities-use-tax-evasion-charges-to-silence-critics-human-rights-watch-says/ Human Rights Watch accused Indian authorities on Friday of using allegations of tax evasion and politically motivated financial irregularities to “silence human rights activists, journalists and other critics of the government.” In a statement, the human rights group expressed concern over a number of cases, including tax raids against actor Sonu Sood, human rights activist […]]]>

Human Rights Watch accused Indian authorities on Friday of using allegations of tax evasion and politically motivated financial irregularities to “silence human rights activists, journalists and other critics of the government.”

In a statement, the human rights group expressed concern over a number of cases, including tax raids against actor Sonu Sood, human rights activist Harsh Mander and digital media. Laundry and Newsclick.

He was referring to raids against four journalists in Jammu and Kashmir – Hilal Mir, Showkat Motta, Mohammad Shah Abbass and Azhar Qadri. The statement also mentioned the first briefing report filed by the Uttar Pradesh police against journalist Rana Ayyub.

The four journalists were questioned in a case involving a blog called “Kashmir Fight”. A blog post had sought to incite people to oppose the country and slander nationalists in Kashmir, PTI reported, citing sources.

Referring to these cases, Human Rights Watch said the raids were part of the Center’s “growing crackdown” on freedom of expression, association, and peaceful assembly.

“Authorities have initiated politically motivated criminal charges, including under general terrorism and sedition laws, against activists, journalists, academics, students and others,” the rights group said. humans. “They have also used foreign funding regulations and allegations of financial misconduct to target outspoken groups.”

The New York-based organization noted that the Editors Guild of India and the Press Club of India have repeatedly called for an end to the harassment of independent media.

The group said that after the Center removed Jammu and Kashmir’s special status under Article 370 of the Indian Constitution and downgraded the state to two Union Territories, Kashmiri journalists face “increased harassment from the authorities, including arrests for terrorism”.

During the search by the Directorate of Execution of premises linked to Mander, Human Rights Watch said it strongly criticized the Centre’s “discriminatory policies against religious minorities.”

The statement also said Ayyub is a vocal critic of the ruling Bharatiya Janata party government. She has been abused by “government supporters and Hindu nationalist trolls” on social media, he added.

Regarding the income tax raids on Sood’s premises, Human Rights Watch said the action “appeared to be politically motivated as the actor had received high praise from the general public, the media and opposition politicians across the country for his philanthropic work. “

Human Rights Watch South Asia director Meenakshi Ganguly said the Modi government must change course and stand up for the basic rights of Indian citizens.

“The Indian government raids appear intended to harass and intimidate critics, and reflect a wider tendency to try to silence all criticism,” Ganguly said in the statement. “These abuses weaken fundamental democratic institutions in India and shatter fundamental freedoms.

In January, Human Rights Watch released its “World Report 2021,” in which it noted the security crackdown in Jammu and Kashmir, violence in Delhi in February, cases against violence activists in Bhima Koregaon and repression of foreign funds from non-governmental organizations.

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Tax compliance essential to the growth of startups https://atoogratuit.com/tax-compliance-essential-to-the-growth-of-startups/ https://atoogratuit.com/tax-compliance-essential-to-the-growth-of-startups/#respond Thu, 16 Sep 2021 21:10:25 +0000 https://atoogratuit.com/tax-compliance-essential-to-the-growth-of-startups/ For the past two years, Sam Kajubi (not his real name) has been running a web design company that builds e-commerce platforms. But during the period of operation, not once has the company paid its taxes. The company has never been registered with the Uganda Registry Services Bureau (URSB), and its founder also doesn’t know […]]]>

For the past two years, Sam Kajubi (not his real name) has been running a web design company that builds e-commerce platforms. But during the period of operation, not once has the company paid its taxes.

The company has never been registered with the Uganda Registry Services Bureau (URSB), and its founder also doesn’t know where the process of paying his taxes begins or ends.

“I have no idea how much it costs. But also, I think my business must first have enough customer base before I can add revenue costs to my expenses, ”he says.

While these small, informal businesses have been bent on not paying their dues to the tax collection agency, the Uganda Revenue Authority (URA), some have chosen to give Caesar what belongs to Caesar.

Ernest Okot, an innovator in the transportation industry, registered his company, Safari Share from the start.

“As an online innovation, in order to have access to platforms like Mobile Money, we had to be registered as a business, which naturally pushed us in that direction,” he says.

With continued volatile cash flow, the company hasn’t spent a lot of money on taxes. Efforts have been made to keep operating costs as low as possible.

While tax evasion seems like a smart way for startups to stay afloat, there are opportunities they might miss.

“For any business that intends to grow beyond a certain cap, partnerships and investors prefer to deal with legal businesses that comply with tax laws,” Okot said.

On the other hand, as companies fulfill their part of the requirement, he suggests that the government offer special tax incentives to companies such as those offering climate-sensitive solutions to encourage eco-friendly innovation. .

Taxes are an important source of government revenue. It is part of the income he uses to provide services to Ugandans.

Small and medium-sized enterprises, which constitute 90 percent of the private sector, are at the heart of tax collection.

However, just like in other developing countries, many remain non-compliant even amid tax reforms designed to encourage them to pay.

URA Deputy Commissioner for Public and Corporate Affairs Ian Rumanyika says fear of complying with taxes is rooted in the belief that it is costly to formalize a business. Startups also argue that formalization attracts URA into the business and makes operations difficult.

Contrary to what startups think, formal management of a business has many advantages. Companies that have gone through this process gain credibility, move towards growth and continuity while being a magnet for investors.

He also adds that in addition to these advantages, cross-border business grows, resulting in expansion and growth.

While many entrepreneurs complain about unfair taxation for startups and little to no incentives, Rumanyika notes that there are tax incentives and exemptions built into the country’s tax laws.

The non-discriminatory incentives available to national and foreign investment aim to stimulate investment in the country; attract both foreign direct investment and local investment.

It then offers some tax incentives and exemptions that young startups should know about international trade incentives, including exemption from import duties on certain items, reduced import duty rates, rebate on import duties and discounts. high import duty rates on items that can be sold locally. product.

This aims to stimulate local production, promote industrialization, import substitution and protect the local market.

To further address the issues of managing tax and protecting startups from unfair taxation, URA has undertaken to digitize its tax system on a platform called Electronic Fiscal Receipting and Invoicing Solution (EFRIS).

The new smart business solution is used to record business transactions and share information with URA in real time, to generate electronic receipts and invoices.

Under EFRIS, startups can receive reimbursement requests using electronic receipts or expedited electronic invoices as the information must be available in the system.

In addition, the URA provides a report of the taxpayer’s transactional data on sales and purchases during the tax period, which the taxpayer confirms or modifies to include additional information.

Pre-filled tax returns help taxpayers avoid penalties for late filing or non-filing and would allow them to have a fair assessment of their tax situation and reduce unfair competition in business.

The Legal Tech Lab Lead of The Innovation Village, Hellen Mukasa also works on the subject of startup taxation.

One of his many responsibilities at the Lab is to support startups in business registration and tax compliance.

Mukasa says that when startups embrace legal knowledge, it becomes a stepping stone to gaining competitive advantage. She, like other tax professionals, believes entrepreneurs are reluctant to register businesses because of the expected costs once on the tax radar.

As they strive to save money, they end up losing great opportunities for markets that prefer to work with formal companies.

To demystify the process of corporate formalization, the Legal Tech Lab partners with institutions such as the URSB and the Uganda Revenue Authority (URA) to provide information on intellectual property protection and tax compliance, respectively.

The startups of the Innovation Village are welcomed in all regions by various legal partners.

Ultimately, Mukasa says the move towards tax compliance begins with a change in mindset, and she hopes The Legal Tech Lab will help change legal services from a curative to a preventive perspective through the compliance of startups with the law.

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Uncasville woman pleads guilty to tax evasion, serving maximum years in prison https://atoogratuit.com/uncasville-woman-pleads-guilty-to-tax-evasion-serving-maximum-years-in-prison/ https://atoogratuit.com/uncasville-woman-pleads-guilty-to-tax-evasion-serving-maximum-years-in-prison/#respond Thu, 16 Sep 2021 13:42:46 +0000 https://atoogratuit.com/uncasville-woman-pleads-guilty-to-tax-evasion-serving-maximum-years-in-prison/ UNCASVILLE, Connecticut, (WTNH) – An Uncasville woman pleaded guilty to one count of tax evasion on Wednesday, September 16. According to court documents, Kathryn Pocock, 58, has operated a home cleaning business since 1991. Between 2015 and 2019, Pocock withdrew $ 855,000 from her business and did not report this product on the company’s tax […]]]>

UNCASVILLE, Connecticut, (WTNH) – An Uncasville woman pleaded guilty to one count of tax evasion on Wednesday, September 16.

According to court documents, Kathryn Pocock, 58, has operated a home cleaning business since 1991. Between 2015 and 2019, Pocock withdrew $ 855,000 from her business and did not report this product on the company’s tax forms. business and on it. federal income tax returns.

During the investigation, it was revealed that Pocock would cash numerous customer checks that had been paid to his company, deposit some of the checks into his personal bank account, and pay his employees “in the dark”.

Court documents have shown that Pocock issued checks payable in cash from his personal and work accounts, and paid employees cash without properly collecting and paying employment tax to the IRS or on sale. , and use taxes owed to the State of Connecticut.

The investigation also showed that Pocock provided his tax preparer with fake spreadsheets and supporting documents that significantly underestimated his income and employee-related expenses.

Pocock agreed to pay $ 213,965 in restitution to the IRS and $ 33,514 to the state of Connecticut.

Pocock is expected to start her sentence on December 8, 2021, where she faces the maximum sentence of five to five years.

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Deduct from source – Former government deputy https://atoogratuit.com/deduct-from-source-former-government-deputy/ https://atoogratuit.com/deduct-from-source-former-government-deputy/#respond Wed, 15 Sep 2021 01:53:59 +0000 https://atoogratuit.com/deduct-from-source-former-government-deputy/ Former Buem MP, Daniel Kosi Ashiamah Former member of the Buem constituency, Mr. Daniel Kosi Ashiamah calls on the government to put in place better systems to levy taxes on the country’s workers. President Akufo-Addo instructed Ghanaian lawyers to pay their fair share of taxes in Ghana and inspire their clients and Ghanaians in general […]]]>

Former Buem MP, Daniel Kosi Ashiamah

Former member of the Buem constituency, Mr. Daniel Kosi Ashiamah calls on the government to put in place better systems to levy taxes on the country’s workers.

President Akufo-Addo instructed Ghanaian lawyers to pay their fair share of taxes in Ghana and inspire their clients and Ghanaians in general to pay their taxes so that the country undertakes the development projects that everyone wants.

Addressing the 2021 edition of the Ghana Bar Association annual conference held at the Fountain Gate Chapel, Bolgatanga, under the theme: “Ensuring increased revenue mobilization for development national through taxation; The role of the lawyer, ”President Akufo-Addo said, according to Ghana Revenue Authority (GRA) records showing that lawyers across the country are on the list of people who do not pay taxes in the country.

“I must stress that if this campaign you are undertaking is to be successful, you will have to start from home. Mister the outgoing President of the Bar, there is no easy way to say that, we will have to start by making the members of the Bar pay their taxes ”.

“Lawyers’ record in paying taxes is historically poor. It is regrettable but most unpleasant that the members of our profession are not known to set a good example in the matter of paying taxes, ”said President Akufo-Addo.

“They seem to think that being members of the learned profession puts them above respect for daily civic duties like paying taxes. It is embarrassing that lawyers are often at the top of the list of those who flout our tax laws and use their expertise to avoid paying taxes, ”added the President.

According to the president, the GRA and the National Identification Authority (NIA), through a joint effort, have found that around 60,000 professionals in Ghana pay no tax. These professionals are lawyers, accountants, doctors, engineers, architects, among others.

Speaking on Atinka TV’s morning show, Ghana Nie with Ekourba Gyasi Simpremu, Mr. Daniel Kosi Ashiamah noted that the system used to collect taxes has not been sufficiently developed to ensure that everyone pays.

“What arrangement has been put in place to collect taxes from people. If you tell a lawyer to pay taxes, he could take you to court, ”he said.

Sharing his experience, he said he was asked to go pay his taxes when he tried to choose a form to file for an MP position.

The former MP therefore suggested that taxes be collected at source before they reach key account holders in order to fight tax evasion.

He also said lawyers should be required to pay taxes and provide evidence before they are allowed to speak in the lodge in court for anyone.

Mr. Daniel Kosi Ashiamah urged everyone to pay their taxes as they will be used to develop the country instead of loans.

“If everyone is able to pay their taxes, the government will not go to loans to build the country,” he added.

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They denounce Macri in court for having said that in Argentina “to earn money you have to avoid taxes” https://atoogratuit.com/they-denounce-macri-in-court-for-having-said-that-in-argentina-to-earn-money-you-have-to-avoid-taxes/ https://atoogratuit.com/they-denounce-macri-in-court-for-having-said-that-in-argentina-to-earn-money-you-have-to-avoid-taxes/#respond Sat, 11 Sep 2021 00:59:27 +0000 https://atoogratuit.com/they-denounce-macri-in-court-for-having-said-that-in-argentina-to-earn-money-you-have-to-avoid-taxes/ Fernanda Vallejos, Argentinian MP for the ruling Frente de Todos (FdT) party, denounced former President Mauricio Macri in court on Friday for inciting tax evasion, a crime he foresees a sentence of two to six years in prison. The court presentation points to Macri for “inciting a competition with apologies for the crime”, due to […]]]>

Fernanda Vallejos, Argentinian MP for the ruling Frente de Todos (FdT) party, denounced former President Mauricio Macri in court on Friday for inciting tax evasion, a crime he foresees a sentence of two to six years in prison.

The court presentation points to Macri for “inciting a competition with apologies for the crime”, due to recent statements by the leader of Ensemble for Change in a television interview, in which he claimed that “To make money, you have to evade taxes.”

“This morning we denounced Macri for ‘incitement to compete with apologia for crime’ for exalting evasion and inciting large corporations to commit tax crimes and other potential crimes, such as corporate fraud,” Vallejos announced from his Twitter account.

The 52-page memoir emphasizes that the ex-president’s statements “threaten protected legal property, tax collection, the state’s resource base and, more, against the state itself“.

Macri’s claims were made on September 2 and prompted an immediate reaction from the government of Alberto Fernández. It is that the referent of the center-right opposition has various causes pending for fraud and money laundering.

The most resounding of them concerns the non-payment of the cannon which had to be paid to the State for the concession of the Correo Argentino, although it is also accused of creating front companies in the case of the “Panama papers” , and for irregularities in the sale of wind farms.

“We must remove all these taxes that they created [el kirchnerismo], we must continue to collect more taxes. No one is going to come and invest in a country where to earn money you have to avoid taxes. Today, no one who pays all taxes in Argentina can have a return on their capital, ”Macri said on the channel. The Nation +.

“In the complaint,” explained the Peronist legislator, “we underline the ‘criminal responsibility’ and the ‘political and institutional gravity’ of the declarations of the former president, which threaten the state.

Finally, Vallejos expressed concern over what he considered “A message which is mainly addressed to major businessmen”.

“This is the only way to understand the specific reference he made to the media with the aim of increasing returns on capital employed, a language typical of the corporate world,” he said.

Disclaimer: This article is generated from the feed and is not edited by our team.

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ECLAC brings Latin America’s economic growth to 5.9% https://atoogratuit.com/eclac-brings-latin-americas-economic-growth-to-5-9/ https://atoogratuit.com/eclac-brings-latin-americas-economic-growth-to-5-9/#respond Tue, 07 Sep 2021 20:54:51 +0000 https://atoogratuit.com/eclac-brings-latin-americas-economic-growth-to-5-9/ The Economic Commission for Latin America and the Caribbean (ECLAC) has raised Latin America’s growth projection for 2021 to 5.9%, an increase of 0.7% from its July estimate, confirming that the region’s economy is rebounding faster than expected. However, the UN agency warned that the growth rate could decelerate to 2.9% in 2022. Looking at […]]]>

The Economic Commission for Latin America and the Caribbean (ECLAC) has raised Latin America’s growth projection for 2021 to 5.9%, an increase of 0.7% from its July estimate, confirming that the region’s economy is rebounding faster than expected.

However, the UN agency warned that the growth rate could decelerate to 2.9% in 2022.

Looking at the report, economic fundamentals haven’t changed much, even as the region reopens its economy after months of travel restrictions.

“The growth in 2021 is mainly attributable to the weak base of comparison – after the 6.8% contraction recorded in 2020 – as well as the positive effects linked to external demand and the increase in the price of raw materials that the region exports, as well as to increases in aggregate demand, ”ECLAC said.

The report shows that the structural problems that have limited the region’s economic growth for decades have been exacerbated by the pandemic and will limit the resumption of economic activity.

In addition, the region has seen a steady decline in investment, reaching one of its lowest levels of the past three decades in 2020 (17.9% of GDP). Likewise, labor productivity decreases significantly.

To achieve rapid and sustainable growth, the region must invest in education, renewable energy and digital technologies.

ECLAC has insisted the region must end tax evasion, saying it represents around $ 325 billion (or 6.1% of regional GDP).

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Two Arkansas Men Convicted of Fraud and Money Laundering in Elm Springs Wind Farm Project, Arkansas | USAO-WDAR https://atoogratuit.com/two-arkansas-men-convicted-of-fraud-and-money-laundering-in-elm-springs-wind-farm-project-arkansas-usao-wdar/ https://atoogratuit.com/two-arkansas-men-convicted-of-fraud-and-money-laundering-in-elm-springs-wind-farm-project-arkansas-usao-wdar/#respond Fri, 03 Sep 2021 19:42:46 +0000 https://atoogratuit.com/two-arkansas-men-convicted-of-fraud-and-money-laundering-in-elm-springs-wind-farm-project-arkansas-usao-wdar/ FAYETTEVILLE – A federal jury today convicted two men from Arkansas of wire fraud, aiding and abetting wire fraud, money laundering and aiding and abetting money laundering in connection with the development of a wind turbine that has never been operational and a proposed wind farm project in Elm Springs, Arkansas, which was never built. […]]]>

FAYETTEVILLE – A federal jury today convicted two men from Arkansas of wire fraud, aiding and abetting wire fraud, money laundering and aiding and abetting money laundering in connection with the development of a wind turbine that has never been operational and a proposed wind farm project in Elm Springs, Arkansas, which was never built.

According to court documents and evidence presented at trial, Jody Douglas Davis, 46, of Searcy, Arkansas, and Phillip Vincent Ridings 64, of North Little Rock, Arkansas, formed a Texas limited liability company in 2014 called Dragonfly Industries. International, LLC (“Dragonfly”) and Arkansas Wind Power (“AWP”), an Arkansas limited liability company located in Springdale, Arkansas, to develop what they told investors was a revolutionary wind turbine design which was to be installed on a 311 acre wind farm proposed for construction in Elm Springs, Arkansas.

According to the previous indictment, Davis and Ridings conspired with Cody Fell of Springdale, Arkansas and others, from June 2014 through March 2018 inclusive, to obtain money from investors to whom the it was said that investor money would be used to build a prototype of the wind turbine and develop wind farms in Elm Springs, Arkansas, Iowa and other states. Evidence presented at trial showed that Davis and Ridings used most of the $ 700,000 they obtained from investors for the personal use of Davis and Ridings. Specifically, evidence at trial revealed that investors learned that Dragonfly’s wind turbine could produce more power than the traditional three-blade wind turbines commonly used in existing wind farms; that nationally recognized engineering companies and a professor of mechanical engineering at the University of Memphis had “validated” the design of the Dragonfly wind turbine; whereas the Department of Defense has expressed strong interest in acquiring the Dragonfly wind turbines for use in combat zones; that a prototype of the wind turbine was nearing completion; that the leaders of the underdeveloped countries were ready to buy the Dragonfly wind turbines; and that a $ 10 million grant from the Department of Energy was soon to be given to Dragonfly, when in truth and fact none of these representations were true.

Cody Fell pleaded guilty to wire fraud and tax evasion in December 2018 and will be sentenced on September 17, 2021. A sentencing date for Davis and Ridings has yet to be set.

Acting US attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.

The matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation.

U.S. Assistant Prosecutors Kyra Jenner and Kenneth Elser continued the case.

Related court documents can be viewed on the Electronic Documents Public Access website at www.pacer.gov.

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When the BIR rings the notification bell https://atoogratuit.com/when-the-bir-rings-the-notification-bell/ https://atoogratuit.com/when-the-bir-rings-the-notification-bell/#respond Wed, 01 Sep 2021 12:46:01 +0000 https://atoogratuit.com/when-the-bir-rings-the-notification-bell/ It is undeniably an era focused on social media. People from all walks of life are watching the content disseminated by influencers, who have become a formidable source of advice, trendy products and services, news and entertainment, to some extent replacing the hold that traditional celebrities have over their own. fans. Videos that go viral […]]]>

It is undeniably an era focused on social media. People from all walks of life are watching the content disseminated by influencers, who have become a formidable source of advice, trendy products and services, news and entertainment, to some extent replacing the hold that traditional celebrities have over their own. fans. Videos that go viral are a sure-fire way to monetize audiences.

With more subscribers hitting this notification bell icon on social media, the Bureau of Internal Revenue (BIR) recently released Revenue Memorandum Circular (RMC) n ° 97-2021 to remind influencers of their tax obligations.

RMC defined influencers like all taxpayers, individuals or companies, receiving income in cash or in kind, in exchange for services rendered as bloggers, video bloggers or “vloggers”; or any other activity carried out on social media sites and platforms, such as YouTube, Facebook, Instagram, TikTok, etc. Income sources for influencers may include YouTube partner programs, display advertising, sponsored posts, and other marketing and promotional activities.

The RMC is a reminder of a company’s tax obligations, with a stern warning for non-conformers, who face the prospect of a “full-fledged investigation.” The RMC did not mention the tax years to be checked, but can work within the limitation period (either three years from the declaration, or 10 years in the case of fraud). In addition, the BIR intends to take advantage of cross-border data sharing, in accordance with the information exchange clause of various tax treaties, to correctly determine the influencer’s tax liability and help fight against tax evasion.

Under the Tax Code, resident citizens and domestic corporations are taxable on their worldwide income. However, non-resident citizens, foreign nationals and foreign companies are only taxable on their Filipino source income.

Payments received by an influencer for services rendered, regardless of the method or form of payment, are considered business income. These include the free products they receive in exchange for being promoted on the influencer’s accounts or channels, to be declared at fair market value.

However, the RMC did not specify what constitutes Philippine-based content that would form part of a foreigner’s taxable Philippine income. Thus, the burden of proving that the income comes from foreign sources (and therefore tax-exempt) falls on the influencer.

For tax purposes, influencers other than corporations and partnerships are classified as self-employed, as sole proprietorships earning business income. Here is a summary of their tax compliance obligations:

1. Register and obtain a Tax Identification Number (TIN) from the Tax District Office (RDO) having jurisdiction over the place of business or place of residence, or update its existing registration with the appropriate RDO. Not having a TIN / BIR registration does not exempt anyone from paying taxes. A minor who earns an income is also covered by this requirement.

2. Maintain and record books of account to record all transactions and results of transactions.

3. File the relevant tax returns and pay the tax according to its registration. The Annual Income Tax Return (RTI) must be supported by audited financial statements if the gross receipts exceed 3 million pesos and do not benefit from the optional standard deduction (OSD).

4. Withhold and remit taxes (if applicable) from payments to suppliers and employees.

5. For Filipinos, make every effort to avail the benefits of the Foreign Source Income Convention by obtaining a tax residency certificate from the BIR to present to the State of origin. If the benefits of the treaty are not invoked and the taxpayer is subject to ordinary tax in the source state, he is not allowed to claim foreign tax credits greater than the amount of tax qu ‘he would have paid in the State of source if he had invoked the convention. provisions.

TAXATION OF INDIVIDUAL INFLUENCERS
Influencers are subject to tax like any other person carrying out any other activity. If the gross receipts exceed the value added tax (VAT) threshold of 3 million pesos, graduated tax rates from 0% to 35% will apply and it will be subject to VAT. If the earnings are P3 million or less, the taxpayer has the choice between:

• 8% rate based on gross receipts and other non-operating income which will replace any other income or percentage taxes.

• Progressive tax rates from 0% to 35% and percentage tax of 1% (in effect from July 1, 2020 to June 30, 2023, and 3% thereafter).

If the influencer chooses progressive tax rates, they can deduct all ordinary and necessary expenses incurred during the tax year in calculating their taxable income, subject to justification and compliance with withholding rules. at source applicable.

Based on RMC, these expenses may include: filming costs (cameras, smartphones, microphone and other filming equipment); computer hardware, software subscription and license fees; internet and communication costs; home office expenses (proportional rent and utility expenses); Office supplies; business expenses (travel or transportation, payment of video editing, costume design, advertising and marketing costs); depreciation expense; and bank charges and shipping charges.

Alternatively, instead of claiming itemized deductions, the influencer can also choose the optional standard deduction (OSD), or a standard deduction not exceeding 40% of the gross sales / revenue of individual taxpayers. Under this deduction regime, no justification is required. The influencer must however signify the election of OSD in the first quarter ITR.

CONSEQUENCES OF NON-COMPLIANCE
Failure to voluntarily and honestly file returns and pay taxes may result in the payment of a deficit tax plus surcharge (25% or 50% for fraud cases), interest (12% per annum) and penalties. A mind-boggling update not to be missed under the TRAIN Act was the increased penalties ranging from P500,000 to P10,000,000. Criminal liability also applies where a deliberate intention to evade is found. ‘tax.

While I enjoy the way influencers engage followers with their original ideas, I’m just as happy to know that when I hit the subscribe button and click on the bell icon, the he increase in the number of viewers translates into the payment of taxes to enable the government to increase the necessary revenues.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only and should not be used as a substitute to specific advice.

Raymund M. Gutib is a senior executive in the tax services department of Isla Lipana & Co., the Philippine company that is a member of the PwC network.

raymund.m.gutib@pwc.com

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Report – Bitcoin News Regulation https://atoogratuit.com/report-bitcoin-news-regulation/ https://atoogratuit.com/report-bitcoin-news-regulation/#respond Wed, 01 Sep 2021 01:19:28 +0000 https://atoogratuit.com/report-bitcoin-news-regulation/ The Biden administration is reportedly pushing to include global crypto data sharing rules in the $ 3.5 trillion budget. The Treasury wants crypto firms to report information on foreign account holders “so the United States can share information with global trading partners.” Treasury wants to impose more crypto rules The US Treasury is reportedly pushing […]]]>

The Biden administration is reportedly pushing to include global crypto data sharing rules in the $ 3.5 trillion budget. The Treasury wants crypto firms to report information on foreign account holders “so the United States can share information with global trading partners.”

Treasury wants to impose more crypto rules

The US Treasury is reportedly pushing to include more tax compliance rules on cryptocurrency transactions in the upcoming $ 3.5 trillion budget plan.

The Biden administration hopes to add requirements for crypto companies to report information on foreign account holders “so the United States can share information with global trading partners,” Roll Call reported on Monday, citing an official. of the administration who was not authorized to speak for the recording.

According to the Treasury Green Paper, “The global nature of the crypto market offers US taxpayers the ability to conceal assets and taxable income using offshore crypto exchanges and wallet providers. US taxpayers also try to avoid US tax filing by creating entities through which they can act. To combat the potential for crypto assets to be used for tax evasion purposes, third-party reporting is essential to help identify taxpayers and strengthen voluntary tax compliance.

However, to gain access to this information, U.S. officials must be able to provide the same data to other countries about their own citizens with U.S. accounts. This is part of “tax information exchange agreements,” the publication said.

This effort to impose more rules on crypto transactions follows extensive lobbying to limit the definition of a broker in the $ 1.2 trillion infrastructure bill that the Senate recently passed. Following backlash from lawmakers and the crypto community, a Treasury Department official assured that even without an amendment, non-brokers, such as miners and software developers, would not be targeted.

What do you think of the Treasury’s global crypto data sharing proposal? Let us know in the comments section below.

Image credits: Shutterstock, Pixabay, Wiki Commons

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