Governments Worldwide Cutting and Streamlining Taxes
by Mike Godfrey, Tax-News.com, Washington
Washington, D.C., November 13, 2008. A report published on November 11,
2008, shows that tax authorities worldwide are overhauling tax systems
by reducing taxes, streamlining administrative processes and modernising
payment systems.
Paying Taxes 2009,
the third report in an annual series by the World Bank, International
Finance Corporation (IFC) and PricewaterhouseCoopers, is expected to
prompt further dialogue between governments and businesses on improving
tax systems.
The report draws on the Doing Business 2009 report that measures the
ease of paying taxes for mid-size domestic companies in 181 economies,
analyses tax systems and tracks related reform efforts.
Paying Taxes 2009 finds that in 2007/08:
-
Thirty-six economies made it easier to pay taxes. This year’s top
reformer is the Dominican Republic. Malaysia is the runner-up.
-
The most popular reforms were reducing corporate income tax rates (in
21 economies) and improving electronic filing and payments systems
efficiency (in 12 economies).
-
Eight economies reduced the number of taxes paid by business.
-
On average, corporate income tax accounts for only 13% of tax
payments, 26% of compliance time, and 37% of the total tax rate (tax
cost to the case study company).
-
Employment taxes account for 34% of the total tax rate, taking into
account only amounts borne by the employer.
-
Employment taxes are particularly prevalent in the European Union and
account for 65% of the total tax rate for the case study company in
the region.
-
On average, 36% of the overall time to comply with tax systems and 48%
of the number of tax payments are spent on consumption taxes.
Susan Symons, PricewaterhouseCoopers LLP partner, said: “Corporate
income tax reform has had a positive impact for government and business
in a number of economies, yet these benefits could be multiplied if tax
reform is looked at in its entirety. Tax reform should include all
business taxes - not just corporate income tax. It should include all
administrative aspects and the relationships between government and
business generally. These are all fundamental to effective tax systems.”
Rita Ramalho, World Bank-IFC economist, added: “Countries are easing the
complexity of their tax system and reducing the cost burden for
businesses. Since 2004, average total tax rates have been reduced by 3%
and time to comply with taxes decreased by 5%. This reform effort can
broaden the tax base and increase tax revenues.”
Home
Up
2009-Business-Investment-Incentive
New-Investment-Tax-Incentive
Australia-BVI-Tax-Information-Exchange
Australia-Vanuatu-Tax-Evasion-Problem
Australia-Tax-Office-News
Avoid-Australia-Capital-Gains-Tax-Valuation
Australian-Capital-Gains-Tax
Governments-Cutting-Taxes-Worldwide
Australia-Tax-Crime-Investigations
Australian-Tax-Planning-Advice
