Meet the Co-chairs - TIAG
Mercer & Hole
Fineman West & Co. LLP
Meet the Co-chairs - TAGLAW
Williams Mullen (VA)
After two full Budgets in 2017, this Spring Statement was a less dramatic affair, with no announcements of tax changes. These will come in the Autumn Budget.
The Chancellor launched a number of consultations and other papers about future proposals. The subjects ranged from ways to squeeze more tax from international digital businesses to a proposal for extending entrepreneurs’ relief to some shareholders whose holdings drop below the qualifying 5% level. He has also been mulling the possibility of lowering the VAT threshold.
Last week’s Spring Statement may not have been full of headlines, but there are plenty of changes ahead for farmers and rural businesses, according to accountant Old Mill.
“Whether it’s a reduction in business rates, taxes on red diesel, relaxed planning permission regulations or tightening of Inheritance Tax relief, there is potentially a lot in the pipeline,” says Victoria Paley, manager at Old Mill.
As you may be aware, the US Government passed significant tax reforms in late 2017, and one of the major reforms was the wholesale conversion of its system of taxing corporate business income from a worldwide taxation system to a territorial taxation system. Under the old worldwide taxation system, business profits earned in a foreign subsidiary and repatriated to a US parent corporation were taxable in the US, with credit being provided for the foreign taxes paid by the foreign subsidiary. This meant that business profits earned in a lower tax jurisdiction would be subject to a “top-up” tax on repatriation to the US. Under the new territorial taxation system, business profits earned in a foreign subsidiary may be repatriated to the US without additional US income tax being applied.
Contact: Gary Sigman, CPA, M.Tax, PFS, AEP
The recent enactment of the Tax Cuts and Jobs Act (TCJA) brought many changes to how individuals and businesses are affected by our tax system.
Among the deductions affected was the deduction for meals and entertainment incurred in the course of operating a business. Prior to the enactment of the TCJA, which took effect for many provisions on January 1, the allowable deduction for meals and entertainment expenses was capped at 50% of the allowable amount of such costs that were incurred. Under the old law, no deduction was allowable unless the cost was either directly related to or associated with the conduct of business.
The Indian Union Budget 2018 has been presented recently in the Indian Parliament.
In the guide linked below, Ashok Maheshwary & Associates LLP presents the highlights of the tax proposals of the Indian Union Budget 2018 introduced by the Honourable Finance Minister. This is the last full budget by the current government before the elections. On the tax front, one of the biggest changes in the budget is the reintroduction of Long Term Capital Gains tax @ 10% on sale of listed Indian shares and mutual funds. India has also clearly stated that it would come down heavily on cryptocurrencies.