It is unacceptable that the public should be expected to wait for an election campaign before a debate around tax levels.
This report issued by BDO Stoy Hayward calls for greater clarity over the tax policies of the main political parties. It urges that, should it become inevitable that there will be a need for tax increases, in tandem with spending cuts, due to the ongoing size of the national deficit, now is the time for the main political parties to break the silence over where tax increases might be – and comes in the same week that Alistair Darling has said there should be more openness over potential spending cuts.
The newly approved Tax Code in Ukraine is set to gradually lower the corporate tax rate from 25% to 16% by 2014 and cut the VAT rate to 17% in 2014. It also grants tax exemptions to various industries. While benefiting large businesses, it may negatively impact small private entrepreneurs. The Tax Code approval facilitates drafting of the 2011 budget in line with IMF requirements and bodes well for endorsement of other IMF-backed reforms. The overall impact on the economy is expected to be neutral to positive, with gains for large companies offsetting effects on small businesses. Budget revenue impacts are seen as insignificant.
The document summarizes TXU's third quarter results for 2001. Earnings increased 14% compared to the same period last year, to $1.42 per share, on record revenues of $6.6 billion, up 13%. Key events in the quarter included strengthening the balance sheet through asset sales, launching new subsidiaries and services, and ongoing preparations for electric industry restructuring in Texas. TXU expects to meet its full-year earnings guidance of $3.65 to $3.70 per share for 2001. Segment results were strong across the US, Europe and Australia.
CSC reported strong revenue growth and financial results for the second quarter of fiscal year 2004. Revenue increased 32% to $3.59 billion compared to the same period last year, driven by growth in the federal government sector from the DynCorp acquisition. Net income was $108.1 million. For the third quarter, CSC expects revenue in the range of $3.6 billion and earnings per share between $0.68 to $0.70. CSC also highlighted major new contracts signed during the quarter with customers such as Providian Financial and the U.S. Air Force.
- Governments raise revenue through taxes, which are the single most important source of revenue.
- There are criteria for effective taxes including that they must not significantly distort economic behavior or damage incentives for productivity and growth. Taxes also should be fair and equitable in their impact.
- The economic impact of taxes includes how they can affect resource allocation, consumer behavior, productivity, and economic growth. The burden of a tax may not always fall directly on those being taxed.
This document is the 9-month report from Deutsche EuroShop for 2011. It provides the following key information:
1) Business has remained stable despite cautious German consumption, with high occupancy rates and low rent receivables. Revenue increased 29% to €138 million compared to the same period last year.
2) Funds from operations per share increased 10% to €1.12, while earnings per share dropped 7% to €0.78 due to higher tax expenses.
3) Deutsche EuroShop acquired a 50% stake in the Allee-Center shopping center in Magdeburg for €118 million, increasing its portfolio to 19 centers valued at €3.6 billion.
The document discusses the alternative minimum tax (AMT), including its history and structure. It provides examples to illustrate how the AMT calculation differs from the regular tax calculation. Key differences include fewer allowed deductions, no personal exemptions, and lower exemption amounts that are not indexed for inflation. As a result, taxpayers with high incomes but not extremely high incomes are most likely to face the AMT, referred to as the "sweet spot." The document also outlines some common tax planning strategies to minimize AMT liability.
UnitedHealth Group reported first quarter 2009 financial results. Revenues increased 8% year-over-year to $22 billion. Earnings from operations were $1.67 billion. Net earnings were $984 million, stable compared to the prior year. The operating margin decreased to 7.6% due to reduced investment income and a change in business mix toward lower margin government business. UnitedHealth continues to project full year 2009 net earnings between $2.90 to $3.15 per share.
The newly approved Tax Code in Ukraine is set to gradually lower the corporate tax rate from 25% to 16% by 2014 and cut the VAT rate to 17% in 2014. It also grants tax exemptions to various industries. While benefiting large businesses, it may negatively impact small private entrepreneurs. The Tax Code approval facilitates drafting of the 2011 budget in line with IMF requirements and bodes well for endorsement of other IMF-backed reforms. The overall impact on the economy is expected to be neutral to positive, with gains for large companies offsetting effects on small businesses. Budget revenue impacts are seen as insignificant.
The document summarizes TXU's third quarter results for 2001. Earnings increased 14% compared to the same period last year, to $1.42 per share, on record revenues of $6.6 billion, up 13%. Key events in the quarter included strengthening the balance sheet through asset sales, launching new subsidiaries and services, and ongoing preparations for electric industry restructuring in Texas. TXU expects to meet its full-year earnings guidance of $3.65 to $3.70 per share for 2001. Segment results were strong across the US, Europe and Australia.
CSC reported strong revenue growth and financial results for the second quarter of fiscal year 2004. Revenue increased 32% to $3.59 billion compared to the same period last year, driven by growth in the federal government sector from the DynCorp acquisition. Net income was $108.1 million. For the third quarter, CSC expects revenue in the range of $3.6 billion and earnings per share between $0.68 to $0.70. CSC also highlighted major new contracts signed during the quarter with customers such as Providian Financial and the U.S. Air Force.
- Governments raise revenue through taxes, which are the single most important source of revenue.
- There are criteria for effective taxes including that they must not significantly distort economic behavior or damage incentives for productivity and growth. Taxes also should be fair and equitable in their impact.
- The economic impact of taxes includes how they can affect resource allocation, consumer behavior, productivity, and economic growth. The burden of a tax may not always fall directly on those being taxed.
This document is the 9-month report from Deutsche EuroShop for 2011. It provides the following key information:
1) Business has remained stable despite cautious German consumption, with high occupancy rates and low rent receivables. Revenue increased 29% to €138 million compared to the same period last year.
2) Funds from operations per share increased 10% to €1.12, while earnings per share dropped 7% to €0.78 due to higher tax expenses.
3) Deutsche EuroShop acquired a 50% stake in the Allee-Center shopping center in Magdeburg for €118 million, increasing its portfolio to 19 centers valued at €3.6 billion.
The document discusses the alternative minimum tax (AMT), including its history and structure. It provides examples to illustrate how the AMT calculation differs from the regular tax calculation. Key differences include fewer allowed deductions, no personal exemptions, and lower exemption amounts that are not indexed for inflation. As a result, taxpayers with high incomes but not extremely high incomes are most likely to face the AMT, referred to as the "sweet spot." The document also outlines some common tax planning strategies to minimize AMT liability.
UnitedHealth Group reported first quarter 2009 financial results. Revenues increased 8% year-over-year to $22 billion. Earnings from operations were $1.67 billion. Net earnings were $984 million, stable compared to the prior year. The operating margin decreased to 7.6% due to reduced investment income and a change in business mix toward lower margin government business. UnitedHealth continues to project full year 2009 net earnings between $2.90 to $3.15 per share.
Pay It Forward - Doing the Public’s Business with Digital Technologies while ...NIC Inc | EGOV
This document discusses strategies for reducing reliance on general funds through the use of information technology. It outlines 13 options for doing so, including increasing revenues without raising taxes, reducing upfront IT investment costs through third-party financing, and realizing operational efficiencies. Examples show savings of 12-30% through automation, transformation, and process replacement. The strategies have resulted in over $1 billion in increased revenue without tax hikes. The document argues that the current fiscal crisis provides an opportunity to rethink how government operates through the strategic use of IT.
TRC reported financial results for the first quarter of fiscal year 2014. Net service revenue increased 6% year-over-year to $81.3 million. Backlog remained stable at $247 million. TRC continues executing its growth strategy focused on high-margin organic growth in utility/power, oil and gas, and infrastructure markets. The company also pursues strategic acquisitions to enhance its service offerings and geographic footprint. TRC is well positioned in markets with solid medium- to long-term growth opportunities and maintains a strong balance sheet and cash position.
Actuant reported financial results for its fourth quarter and fiscal year ended August 31, 2009. Net sales declined 26% to $290 million for the quarter and 23% to $1,240 million for the full year. Earnings per share were $0.24 for the quarter and $0.24 for the full year, which included various restructuring and impairment charges. Cash flow from operations remained strong at $49 million for the quarter and $147 million for the full year. Looking ahead, Actuant expects fiscal 2010 sales to decline 5-10% from fiscal 2009 levels.
progress energy 3Q 02.earnings.release.andfinancialsfinance25
- Progress Energy reported ongoing quarterly earnings of $1.53 per share and GAAP earnings of $0.71 per share. It expects 2002 ongoing earnings to be within its target range of $3.90 to $4.00 per share.
- It announced an agreement to sell NCNG to Piedmont Natural Gas for $425 million, which will be used to pay down debt.
- For 2003, it expects 3% earnings growth over 2002 through cost management, sales growth at its electric utilities, and additional revenues from its non-regulated business.
Continental AG saw a significant decline in sales and earnings in Q1 2009 due to the slump in the global auto market. Sales fell 35.2% to €4.3 billion while EBIT turned negative at -€165 million, down from €456.7 million in Q1 2008. Both the Automotive and Rubber Groups were affected, with sales down 40% and 22% respectively. The company was still able to meet financial covenant requirements and expects sales and profits to improve in Q2 despite continued difficult market conditions.
- Revenues for Hera Group decreased 16% to €2,574.5 million due to decreased electricity trading and lower gas prices, though gas/electricity sales and environmental services increased
- EBITDA increased 10.6% to €431.4 million due to growth across all business areas
- Net profit increased 62.6% to €68.4 million as all economic indicators grew compared to the previous year
Q2 2009 Earning Report of Datalink Corp.Manya Mohan
Datalink Corporation reported its financial results for the second quarter of 2009. Revenue was $43.7 million, up 10% from the first quarter but down from $49.7 million in the second quarter of 2008. Net income was $283,000 or $0.02 per share. The company expects revenues in the third quarter to be between $41-45 million with GAAP earnings of -$0.01 to $0.04 per share and non-GAAP earnings of $0.01 to $0.06 per share. While the economy remains challenging, the company saw increases in customer support revenues, virtualization activity, and tools-based services engagements.
Duke Energy reported third quarter 2003 earnings per share of $0.05 compared to $0.27 in third quarter 2002. Excluding special items, earnings per share was $0.35 compared to $0.51 the previous year. The company implemented a cost reduction plan expected to reduce annual pretax expenses by over $200 million. Duke Energy is on track to pay down $1.8 billion in debt by the end of the year and $5.5 billion by the end of 2005.
This document is NSP-Minnesota's Form 10-Q quarterly report filed with the SEC for the third quarter of 1997. It includes:
1) Consolidated financial statements for NSP-Minnesota including statements of income and cash flows for the three and nine month periods ended September 30, 1997 showing revenues, expenses, and net income.
2) Notes to the consolidated financial statements providing additional details.
3) Management's discussion and analysis of the financial condition and results of operations.
4) Disclosures regarding legal proceedings and exhibits and reports filed with the SEC.
The report provides NSP-Minnesota's required quarterly financial disclosures and analysis to the SEC
UAL provided an investor update on its estimated Q3 2008 performance. Key points include:
- Capacity and traffic declined year-over-year for mainline and consolidated operations.
- PRASM is expected to increase 4.5-5.5% for mainline and 4-5% for consolidated, excluding special items.
- Fuel prices increased significantly year-over-year and UAL incurred losses on settled hedges. CASM is estimated to be up 1-1.5% excluding fuel.
ual UAL Investor Update: Q4 December 17, 2008finance13
The United Airlines investor update provides estimates for the 4th quarter of 2008. It estimates that capacity will be down 11.7% and traffic will be down 12.5-13.5% compared to 4Q2007. Revenue per available seat mile is expected to increase 2.5-3.5% excluding accounting changes but decrease 0.3-0.7% including them. Operating costs per seat are estimated to rise 1-1.5% excluding fuel. The company expects to end with $2 billion in unrestricted cash and $0.9 billion in fuel hedge collateral.
TXU reported strong financial results for the second quarter of 2003, with earnings from continuing operations exceeding market expectations. Earnings from continuing operations were $171 million, or $0.49 per share, compared to expectations of $0.35 per share. Total earnings, including discontinued operations, were $105 million or $0.31 per share. TXU reaffirmed its full year guidance for earnings from continuing operations of $2.00 to $2.10 per share.
This document discusses fiscal and monetary policy. It covers the nature of fiscal policy including the purpose of fiscal policy, government finances, and public sector deficits/surpluses. It also discusses the effectiveness of fiscal policy including automatic stabilizers and problems with discretionary fiscal policy. The document covers varieties of monetary policy including different policy approaches and techniques to control money supply and interest rates. It concludes by discussing problems with monetary policy implementation including difficulties controlling money supply and interest rates.
The Board of Directors of Hera Group approved the 2010 financial results, which showed strong growth. Revenues were €3.7 billion, EBITDA was €607.3 million (+7.1%), and net profit was €117.2 million (+65%). All business areas contributed to increased EBITDA. The dividend per share will increase 12.5% to 9 cents. The results demonstrate the success of Hera Group's strategy and continued focus on operating efficiency.
- Southwestern Public Service Company filed a Form 10-Q for the quarterly period ended March 31, 2005.
- The filing includes the company's consolidated statements of income and cash flows, which show that net income for the quarter was $14.1 million and net cash provided by operating activities was $49.5 million.
- It also includes notes and disclosures regarding the company's business, accounting policies, and other required regulatory information.
This document is a quarterly report filed with the SEC by Northern States Power Company (NSP-Minnesota) and several subsidiaries. It summarizes financial results for the third quarter and first nine months of 2002, including operating revenues of $752 million and $2.1 billion respectively. Net income was $83 million for the quarter and $158 million year-to-date. The report provides income statements, cash flow statements, and notes on special charges and the number of outstanding shares of common stock for each subsidiary.
- El Paso Electric Company filed a quarterly report with the SEC for the period ending June 30, 2013.
- For the six months ended June 30, 2013, the company reported net income of $36.8 million on revenues of $417.4 million.
- As of June 30, 2013, the company's assets totaled $2.7 billion, including $2.2 billion in net utility plant assets.
Advisory Circle - Tax investigations & Share incentive plansAmy Goold
The document summarizes a presentation given by Mazars LLP on tax matters. It discusses HMRC investigations and introduces the new Contractual Disclosure Facility (CDF) which allows taxpayers to disclose tax fraud to HMRC for a non-criminal resolution. It provides details on the CDF process, including making an outline disclosure within 60 days, preparing a full disclosure report, and the potential for criminal investigation if full cooperation is not provided. It also summarizes information on share option schemes for employees including EMI, CSOP and unapproved schemes.
This document provides an overview of Riskpro India, a risk management consulting firm with offices in New Delhi, Mumbai, and Bangalore. It details Riskpro's mission to provide integrated risk management solutions to mid-large sized corporates and financial institutions in India. The document outlines Riskpro's value propositions including affordable services delivered by skilled professionals. It also summarizes Riskpro's service offerings such as Basel compliance advisory, corporate risk advisory, IT risk advisory, and corporate restructuring advisory.
On Top of Tax - preparing for the upturn: debt restructuring, anti-avoidance ...BDO
The document summarizes strategies for companies and individuals to mitigate the impact of the upcoming increase in the UK tax rate to 50% for those earning over £150,000.
It discusses advancing salary and bonus payments before April 2010 to avoid the higher tax rate. It also covers salary sacrifice arrangements, emigration, expatriate assignments, bonus deferral with loans, clawing back bonuses, accelerating share option vesting, approved share option plans, partly paid shares, growth shares, and growth shares in a subsidiary. Key issues addressed include employment law, cash flow, accounting impacts, and tax authority approval for some strategies.
With the onset of higher personal tax rates, more complex rules on the tax deductibility of interest and an election round the corner, now is the time to be thinking about structuring your tax affairs.
BDO ran a seminar for private equity executives that demonstrated:
- How to structure your fund
- How to plan during the life of your fund
- Latest techniques for structuring transactions
- Minimising VAT leakage
Find out more in the slides of the presentation.
Pay It Forward - Doing the Public’s Business with Digital Technologies while ...NIC Inc | EGOV
This document discusses strategies for reducing reliance on general funds through the use of information technology. It outlines 13 options for doing so, including increasing revenues without raising taxes, reducing upfront IT investment costs through third-party financing, and realizing operational efficiencies. Examples show savings of 12-30% through automation, transformation, and process replacement. The strategies have resulted in over $1 billion in increased revenue without tax hikes. The document argues that the current fiscal crisis provides an opportunity to rethink how government operates through the strategic use of IT.
TRC reported financial results for the first quarter of fiscal year 2014. Net service revenue increased 6% year-over-year to $81.3 million. Backlog remained stable at $247 million. TRC continues executing its growth strategy focused on high-margin organic growth in utility/power, oil and gas, and infrastructure markets. The company also pursues strategic acquisitions to enhance its service offerings and geographic footprint. TRC is well positioned in markets with solid medium- to long-term growth opportunities and maintains a strong balance sheet and cash position.
Actuant reported financial results for its fourth quarter and fiscal year ended August 31, 2009. Net sales declined 26% to $290 million for the quarter and 23% to $1,240 million for the full year. Earnings per share were $0.24 for the quarter and $0.24 for the full year, which included various restructuring and impairment charges. Cash flow from operations remained strong at $49 million for the quarter and $147 million for the full year. Looking ahead, Actuant expects fiscal 2010 sales to decline 5-10% from fiscal 2009 levels.
progress energy 3Q 02.earnings.release.andfinancialsfinance25
- Progress Energy reported ongoing quarterly earnings of $1.53 per share and GAAP earnings of $0.71 per share. It expects 2002 ongoing earnings to be within its target range of $3.90 to $4.00 per share.
- It announced an agreement to sell NCNG to Piedmont Natural Gas for $425 million, which will be used to pay down debt.
- For 2003, it expects 3% earnings growth over 2002 through cost management, sales growth at its electric utilities, and additional revenues from its non-regulated business.
Continental AG saw a significant decline in sales and earnings in Q1 2009 due to the slump in the global auto market. Sales fell 35.2% to €4.3 billion while EBIT turned negative at -€165 million, down from €456.7 million in Q1 2008. Both the Automotive and Rubber Groups were affected, with sales down 40% and 22% respectively. The company was still able to meet financial covenant requirements and expects sales and profits to improve in Q2 despite continued difficult market conditions.
- Revenues for Hera Group decreased 16% to €2,574.5 million due to decreased electricity trading and lower gas prices, though gas/electricity sales and environmental services increased
- EBITDA increased 10.6% to €431.4 million due to growth across all business areas
- Net profit increased 62.6% to €68.4 million as all economic indicators grew compared to the previous year
Q2 2009 Earning Report of Datalink Corp.Manya Mohan
Datalink Corporation reported its financial results for the second quarter of 2009. Revenue was $43.7 million, up 10% from the first quarter but down from $49.7 million in the second quarter of 2008. Net income was $283,000 or $0.02 per share. The company expects revenues in the third quarter to be between $41-45 million with GAAP earnings of -$0.01 to $0.04 per share and non-GAAP earnings of $0.01 to $0.06 per share. While the economy remains challenging, the company saw increases in customer support revenues, virtualization activity, and tools-based services engagements.
Duke Energy reported third quarter 2003 earnings per share of $0.05 compared to $0.27 in third quarter 2002. Excluding special items, earnings per share was $0.35 compared to $0.51 the previous year. The company implemented a cost reduction plan expected to reduce annual pretax expenses by over $200 million. Duke Energy is on track to pay down $1.8 billion in debt by the end of the year and $5.5 billion by the end of 2005.
This document is NSP-Minnesota's Form 10-Q quarterly report filed with the SEC for the third quarter of 1997. It includes:
1) Consolidated financial statements for NSP-Minnesota including statements of income and cash flows for the three and nine month periods ended September 30, 1997 showing revenues, expenses, and net income.
2) Notes to the consolidated financial statements providing additional details.
3) Management's discussion and analysis of the financial condition and results of operations.
4) Disclosures regarding legal proceedings and exhibits and reports filed with the SEC.
The report provides NSP-Minnesota's required quarterly financial disclosures and analysis to the SEC
UAL provided an investor update on its estimated Q3 2008 performance. Key points include:
- Capacity and traffic declined year-over-year for mainline and consolidated operations.
- PRASM is expected to increase 4.5-5.5% for mainline and 4-5% for consolidated, excluding special items.
- Fuel prices increased significantly year-over-year and UAL incurred losses on settled hedges. CASM is estimated to be up 1-1.5% excluding fuel.
ual UAL Investor Update: Q4 December 17, 2008finance13
The United Airlines investor update provides estimates for the 4th quarter of 2008. It estimates that capacity will be down 11.7% and traffic will be down 12.5-13.5% compared to 4Q2007. Revenue per available seat mile is expected to increase 2.5-3.5% excluding accounting changes but decrease 0.3-0.7% including them. Operating costs per seat are estimated to rise 1-1.5% excluding fuel. The company expects to end with $2 billion in unrestricted cash and $0.9 billion in fuel hedge collateral.
TXU reported strong financial results for the second quarter of 2003, with earnings from continuing operations exceeding market expectations. Earnings from continuing operations were $171 million, or $0.49 per share, compared to expectations of $0.35 per share. Total earnings, including discontinued operations, were $105 million or $0.31 per share. TXU reaffirmed its full year guidance for earnings from continuing operations of $2.00 to $2.10 per share.
This document discusses fiscal and monetary policy. It covers the nature of fiscal policy including the purpose of fiscal policy, government finances, and public sector deficits/surpluses. It also discusses the effectiveness of fiscal policy including automatic stabilizers and problems with discretionary fiscal policy. The document covers varieties of monetary policy including different policy approaches and techniques to control money supply and interest rates. It concludes by discussing problems with monetary policy implementation including difficulties controlling money supply and interest rates.
The Board of Directors of Hera Group approved the 2010 financial results, which showed strong growth. Revenues were €3.7 billion, EBITDA was €607.3 million (+7.1%), and net profit was €117.2 million (+65%). All business areas contributed to increased EBITDA. The dividend per share will increase 12.5% to 9 cents. The results demonstrate the success of Hera Group's strategy and continued focus on operating efficiency.
- Southwestern Public Service Company filed a Form 10-Q for the quarterly period ended March 31, 2005.
- The filing includes the company's consolidated statements of income and cash flows, which show that net income for the quarter was $14.1 million and net cash provided by operating activities was $49.5 million.
- It also includes notes and disclosures regarding the company's business, accounting policies, and other required regulatory information.
This document is a quarterly report filed with the SEC by Northern States Power Company (NSP-Minnesota) and several subsidiaries. It summarizes financial results for the third quarter and first nine months of 2002, including operating revenues of $752 million and $2.1 billion respectively. Net income was $83 million for the quarter and $158 million year-to-date. The report provides income statements, cash flow statements, and notes on special charges and the number of outstanding shares of common stock for each subsidiary.
- El Paso Electric Company filed a quarterly report with the SEC for the period ending June 30, 2013.
- For the six months ended June 30, 2013, the company reported net income of $36.8 million on revenues of $417.4 million.
- As of June 30, 2013, the company's assets totaled $2.7 billion, including $2.2 billion in net utility plant assets.
Advisory Circle - Tax investigations & Share incentive plansAmy Goold
The document summarizes a presentation given by Mazars LLP on tax matters. It discusses HMRC investigations and introduces the new Contractual Disclosure Facility (CDF) which allows taxpayers to disclose tax fraud to HMRC for a non-criminal resolution. It provides details on the CDF process, including making an outline disclosure within 60 days, preparing a full disclosure report, and the potential for criminal investigation if full cooperation is not provided. It also summarizes information on share option schemes for employees including EMI, CSOP and unapproved schemes.
This document provides an overview of Riskpro India, a risk management consulting firm with offices in New Delhi, Mumbai, and Bangalore. It details Riskpro's mission to provide integrated risk management solutions to mid-large sized corporates and financial institutions in India. The document outlines Riskpro's value propositions including affordable services delivered by skilled professionals. It also summarizes Riskpro's service offerings such as Basel compliance advisory, corporate risk advisory, IT risk advisory, and corporate restructuring advisory.
On Top of Tax - preparing for the upturn: debt restructuring, anti-avoidance ...BDO
The document summarizes strategies for companies and individuals to mitigate the impact of the upcoming increase in the UK tax rate to 50% for those earning over £150,000.
It discusses advancing salary and bonus payments before April 2010 to avoid the higher tax rate. It also covers salary sacrifice arrangements, emigration, expatriate assignments, bonus deferral with loans, clawing back bonuses, accelerating share option vesting, approved share option plans, partly paid shares, growth shares, and growth shares in a subsidiary. Key issues addressed include employment law, cash flow, accounting impacts, and tax authority approval for some strategies.
With the onset of higher personal tax rates, more complex rules on the tax deductibility of interest and an election round the corner, now is the time to be thinking about structuring your tax affairs.
BDO ran a seminar for private equity executives that demonstrated:
- How to structure your fund
- How to plan during the life of your fund
- Latest techniques for structuring transactions
- Minimising VAT leakage
Find out more in the slides of the presentation.
Beyond The Election: the three main political parties' plans for local govern...BDO
The three main UK political parties - Labour, Conservatives, and Liberal Democrats - have different plans for local government and public services. In education, Labour wants to maintain local authority control over most schools while expanding academies. Conservatives want academies to become the norm with less local authority oversight. Liberal Democrats would give schools more autonomy but maintain strategic local authority role. In health, all parties pledge more local accountability but differ on structures, with Conservatives wanting to decentralize public health initiatives and Labour strengthening local authority scrutiny powers over local services.
Artificial intelligence (AI) is everywhere, promising self-driving cars, medical breakthroughs, and new ways of working. But how do you separate hype from reality? How can your company apply AI to solve real business problems?
Here’s what AI learnings your business should keep in mind for 2017.
Study: The Future of VR, AR and Self-Driving CarsLinkedIn
We asked LinkedIn members worldwide about their levels of interest in the latest wave of technology: whether they’re using wearables, and whether they intend to buy self-driving cars and VR headsets as they become available. We asked them too about their attitudes to technology and to the growing role of Artificial Intelligence (AI) in the devices that they use. The answers were fascinating – and in many cases, surprising.
This SlideShare explores the full results of this study, including detailed market-by-market breakdowns of intention levels for each technology – and how attitudes change with age, location and seniority level. If you’re marketing a tech brand – or planning to use VR and wearables to reach a professional audience – then these are insights you won’t want to miss.
This document analyzes the potential economic and fiscal effects of President Obama's proposed tax increases. It finds that enacting these tax increases would:
1) Slow economic growth significantly over the next decade, reducing GDP by $1.1 trillion total and eliminating hundreds of thousands of jobs each year on average.
2) Reduce business investment, personal savings, consumer spending and disposable income while increasing unemployment.
3) Have widespread negative impacts beyond just high-income taxpayers by slowing the overall economy, reducing job opportunities and income.
4) Exacerbate the country's fiscal problems by reducing the tax base as taxpayers adapt to higher rates, rather than solving the deficit issue through higher revenues alone. Congress should
Financial transaction tax small is beautiful (english)ManfredNolte
The document discusses financial transaction taxes and makes three key points:
1) The volume of financial transactions has grown rapidly in recent decades, reaching about 70 times world GDP in 2007. However, the financial crisis reduced trading volumes by around half.
2) Only a few countries currently have financial transaction taxes in place. Proponents argue they could raise revenue and reduce harmful transactions, while critics say the costs outweigh benefits.
3) A small financial transaction tax may be justified to limit socially undesirable transactions that contribute to systemic risk. However, targeted remedies are preferable to address specific issues.
President Obama introduced several new tax increases and incentives in a 2011 budget proposal that includes over a trillion dollars in tax changes. Most of the tax proposals are unchanged from those in last year’s budget proposal, but several important provisions were added that involve international taxes, worker classification, job creation and energy incentives.
Tax expenditure in sub saharan africa the nigerian experience.Alexander Decker
This document summarizes a research paper on tax expenditures in Nigeria. It discusses how the Nigerian government uses tax incentives and concessions to achieve economic goals, but this results in significant losses of potential tax revenue. Between 2004-2006, revenue losses from various tax exemptions and concessions totaled over N54 billion, N71 billion, and N56 billion respectively. The document examines how tax expenditures are less transparent than direct spending and can undermine fiscal accountability if not properly integrated into budgeting processes. It analyzes the effects of tax expenditures on Nigeria's budget and the economy.
The document discusses key questions around the UK's public finances in light of the 2021 budget. It notes that while the economic outlook has improved, the pandemic will likely leave lasting scars and elevated public borrowing. The Chancellor has extended many COVID support measures but only announced limited tax rises. There is debate around whether now is the right time to tackle high debt levels, as growth is the priority, but consideration of fiscal sustainability is also important. Any future deficit reduction would likely rely more on tax rises than spending cuts due to public sentiment against austerity.
Rarely has there been more uncertainty regarding the course of the public finances over the next five years. In this note we aim to answer some of the big questions for the economy in light of the 2021 budget.
Rarely has there been more uncertainty regarding the course of the public finances over the next five years. In this note we aim to answer some of the big questions for the economy in light of the 2021 budget.
This report analyzes the relationship between top tax rates and economic growth in the United States since 1945. It finds that while the top marginal tax rate has decreased from over 90% to 35% over this period, there is no conclusive evidence of a clear relationship between the tax rate reductions and economic growth. The data suggest tax rate reductions have had little association with key factors like saving, investment and productivity growth. However, tax rates appear related to rising income inequality, with higher-income groups receiving a larger share of total income as rates have declined.
This report analyzes the relationship between top tax rates and economic growth in the United States since 1945. It finds that while the top marginal tax rate has decreased from over 90% to 35% over this period, there is no conclusive evidence of a clear relationship between the tax rate reductions and economic growth. The data suggest tax rate reductions have had little association with key factors like saving, investment and productivity growth. However, tax rates appear related to rising income inequality, with higher-income groups receiving a larger share of total income as rates have declined.
The document discusses interest rates, which are the amount charged by a lender to a borrower for using assets. Interest rates affect businesses and banks. During periods of high interest rates, businesses earn more from investments but are less likely to invest in equipment or improvements. Banks also earn more interest but have less to loan out if businesses are not investing. When interest rates are low, businesses may invest more in capital goods but banks earn less interest. Overall, interest rates impact borrowing costs for businesses and banks' profits from lending.
This document summarizes a chapter about tax inefficiencies and their implications for optimal taxation. The chapter discusses several topics:
- Taxation and economic efficiency, including how elasticities determine tax inefficiency and deadweight loss.
- Optimal commodity taxation, including Ramsey taxation and the inverse elasticity rule.
- Optimal income taxes, including balancing vertical equity and behavioral responses.
- Tax-benefit linkages and financing social insurance programs, examining how taxes paid may be linked to benefits received.
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1. Autumn 2009
Time to break
the silence?
Assessing the tax options available to help
rebuild the UK Government’s fiscal policy
2. Contents:
02 Assessing the tax options available to help rebuild the
UK Government's fiscal finances
04 The worst options
05 Reading between the lines – political choices, policies
and tax
08 Finding the elusive balance
09 Appendix
3. Time to break the silence? 01
Assessing the tax policy options available
Preface
Hard decisions will need to be made about the best ways to
address the scale of the Government’s £175bn fiscal deficit.
All the political parties are – or should be – more than aware
of this.We believe that the public deserves to be fully engaged
in the process of debating the key taxation priorities well before
the election is called. The electorate is becoming increasingly
alive to the fact that there will be both cuts in public spending
and increases in taxation. However, voters need to have a clear
idea about the level of pain they are expected to endure and
where exactly it is going to hurt.
We have identified a number of areas of tax policy where the
three main parties could raise the additional £25bn a year, which
a prudent estimate suggests is now necessary to rebuild national
finances. It is important to stress, of course, that none of these
are, as yet, the stated policies of any of the three major parties.
We believe that the onus is now on all three parties to share
their projected tax policies – it is time to break the silence.
Stephen Herring
Senior Tax Partner
4. 02 Time to break the silence?
Assessing the tax policy options available
Assessing the tax options available
to help rebuild the UK Government’s
fiscal finances
The 2009 Budget revealed that the fiscal deficit for a single year return the Government’s finances to a more sustainable footing
had reached an alarming £175bn with no prospect of significant is urgently needed. A prudent estimate suggests that an
reduction in the next two years.The ensuing political debate additional £25bn of tax revenue could well be required to help
has initially focused on the inevitability of cuts in public address the deficit and place the UK’s public finances on a path
spending that will be needed to address such a large shortfall. to long term sustainability and ultimate balance.
However, a less openly discussed painful truth is that there will,
almost without a doubt, be a need for some taxes to rise – at The recent deterioration in tax collections
least in the medium term. Political debate about which taxes as the impact of the credit quake works its
these will be, and at what levels they will be imposed, is
remarkable by its absence.The three major political parties are
way through to businesses, employees and
understandably reticent to provide details of their proposed tax
the consumer, is highlighted in Government
increases. However, while no politician is keen to discuss statistics (Table 2) demonstrating the
taxation (unless popular tax cuts are being proffered), a debate dramatic falls in tax collections in the first
about the contribution that increased taxes will make to helping half of the calendar year.
Table 1 – The scale of the Government deficit
Source – HM Treasury “Budget 2009 Building Britain’s future”, April 2009. Actual 2007/08; Estimate 2008/09; Projections 2009/10 and 2010/11
800
700
2007/08
600
2008/09
500
2009/10
400
£bn 300 2010/11
200
100
0
-100
-200
-300
Government Spending Tax Receipts Deficit
5. Time to break the silence? 03
Assessing the tax policy options available
Table 2 – Tax collections from largest Uncomfortable truths
Analysis of the public pronouncements from the major parties
taxes are falling
(All figures £bn) (Note 1)
and reading between the lines of other areas of their policies,
suggests that there are some common areas of tax policy that
TAX 2006(H1) 2007(H1) 2008(H1) % (Falls) 2009(H1)
all may agree will receive relatively little challenge politically and
[2008(H1)
to will raise useful tax revenues without crushing the fragile tips of
2009(H1)] the ‘green shoots’ of economic recovery.These measures which
all three political parties might consider ‘acceptable’ tax rises
Income tax 76.0 81.3 88.7 (6.5) 82.9
include leaving personal allowances to lag behind inflation,
Corporation tax 21.1 18.5 21.3 (25.4) 15.9 increasing alcohol and tobacco duties at a rate above inflation,
VAT (note 2) 36.3 39.6 39.9 (15.5) 33.7 increasing fuel and road duties by an inflation-exceeding
amount and increasing insurance premium tax by four per cent.
National Insurance
Contributions
45.9 49.7 51.0 (3.5) 49.2
Notes
1. Source for all figures is Office for National Statistics “Statistical Bulletin; Public Sector
Finances” for June 2009 published 21st July 2009. Table 3 – The tax rises all three parties might
2. Includes effect of temporary reduction in VAT standard rate from 17.5% to 15% in consider acceptable
December 2008.
Source – HM Treasury “Tax ready reckoner and tax reliefs” November 2008
• Do not increase income tax allowances in line £5bn
The art of the possible? with inflation
• Increase alcohol and tobacco duties by £1bn
The discussion of tax policy typically takes place in at least two
12 per cent above inflation
related but distinct realms: the economic and the political.
There have been a number of tax measures proposed or
• Increase fuel and road duties by 3 per cent £1bn
enacted in recent years that illustrate the tension between
above inflation
these two perspectives. Politicians are acutely sensitive to how
their policies are perceived.The Finance Act 2009 increase in
• Increase insurance premium tax by 4 per cent £2bn
income tax to 50 per cent, from 2010/11, for those earning
over £150,000 or more, may secure significant and
controversial coverage from the media, but in economic terms, Total increases predicted for all parties £9bn
it barely registers with regard to the extra revenue it will raise.
In fact, history suggests that taxing high earners at a higher rate
can, counter intuitively, lead to a decline in the tax revenues Using HM Treasury’s data collected in the Government’s “Tax
collected from them.This is because the incentive at the margin Ready Reckoner and Tax Reliefs (November 2008)” publication,
for those taxpayers is to arrange their affairs so that they applying these measures would generate an annual revenue
sidestep the impact of higher tax rates. Other measures may increase of £9bn. The more interesting – and much more
be designed to appeal to ‘ordinary voters’ – such as the difficult – question is where additional tax increases could be
temporary reduction in VAT from 17.5 per cent to 15 per cent applied that would produce an additional £16bn, making a total
but have had little impact on actual economic behaviour £25bn in additional taxes that a prudent analysis suggests may
through increased consumer spending. be required to help address and reduce the budget deficit.
6. 04 Time to break the silence?
Assessing the tax policy options available
The worst options
There are particular areas that we consider must be wholly out illustrated in the table below. Even substantial increases in the
of bounds to all three of the major parties. While all tax rises rates of inheritance tax, capital gains tax and stamp duties
may be regrettable, some are simply out of the question for could not go far towards achieving any major reduction of the
either economic or political reasons. deficit, as their prospective yields are both very low and will
continue to be severely depressed for years to come by the
The economic impact of some tax increases could be severe. impact of the credit crunch.
For example, raising the level of UK corporation tax, already
among the highest rates imposed by an EU Member State, Regardless of political persuasion, future Chancellors may feel
would undoubtedly inflict significant damage upon the UK under pressure to tax the more wealthy taxpayers. However
economy, damaging its prospects for foreign inward investment the recent increase in income tax to 50 per cent for those
and diminishing the ability of UK businesses to compete. In earning more that £150,000, for example, will result in less
much the same way, an increase in employers’ national than £2bn in extra revenue, even according to the Treasury’s
insurance could be seen as a tax on jobs. Given the very own forecasts (our estimates would be much lower due to
significant and potentially persistent increase in unemployment behavioural changes by entrepreneurial companies).The
arising from the economic downturn, this is unlikely to be perception is that this change is driven more by politics than
politically or, more importantly, economically sensible unless and economics. Restricting future increases to target the wealthiest
until it can be seen that unemployment is reducing. cannot raise significant amounts and would also have damaging
macro-economic impacts.The wealthy targeted by such
On the other hand some superficially more politically increases will inevitably seek ways to mitigate the impact of
acceptable tax increases simply would not make a noticeable such tax increases through planning and behavioural changes
dent in the £175bn deficit. Even before the credit crisis, certain that may well lead to a decline in economic activity which
high profile taxes raised a very small proportion of revenues as generates sustainable tax receipts.
Table 4 – The amounts raised by key taxes
Source – HM Treasury “Budget 2009 Building Britain’s future”, April 2009. Actual 2007/08; Estimate 2008/09; Projections 2009/10
160
140 2007/08
2008/09
120
2009/10
100
£bn 80
60
40
20
0
Income tax National insurance VAT Corporation tax Capital gains tax Inheritance tax Stamp duties
7. Time to break the silence? 05
Assessing the tax policy options available
Reading between the lines –
political choices, policies and tax
Given these challenges, what are some of the choices that the
three main parties might consider? Our analysis of each political
party’s stated policies, political priorities and past history
suggest a number of areas of which they may consider raising
current levels of tax. Of course, it is important to stress that
none of these are stated party policy – indeed, perhaps
unsurprisingly, they have said little on this matter.
A summary of our analysis is set out in the table below:
Table 5 – Potential options aligned to party priorities and preferences
Sources – HM Treasury “Tax ready reckoner and tax reliefs”, November 2008.
HM Treasury “Budget 2009 Building Britain’s future”, April 2009. Estimate 2008/09; Projections 2009/10.
Labour Conservatives Liberal Democrats
Abolish all higher rate Raise VAT by 2.5% £12bn Apply CGT at 10%
income tax relief on on principal private
pension contributions £6bn residence £3bn
Apply full VAT to
books and magazines £2bn
Raise NIC by 1% Charge full VAT rate
for employers on domestic fuel £3bn
and employees £10bn Increase VAT on
domestic fuel from
5% to 9% £1bn Increase green taxes
by 25% over inflation £1bn
Increase green taxes
by 25% over inflation £1bn Reduce capital
allowances by 25% £6bn
Abolish relief for
savings and investment £3bn
Labour total £16bn Conservative total £16bn Liberal Democrat total £16bn
8. 06 Time to break the silence?
Assessing the tax policy options available
Labour Conservatives
Labour’s likely intentions should be easier to predict as it has The Conservative Party has already expressed its concern
set out its fiscal priorities in the 2009 Budget Report. We about what it believes to be the damagingly high rate of
consider, however, that it is inevitable that the figures already corporation tax when compared to the UK’s European and
announced by the Treasury will have to be supplemented international competitors. It is not unreasonable to infer that
with additional and far reaching tax raising measures for the they would view many other increases in direct taxation in
next Parliament. much the same way.
The Chancellor has already introduced restrictions on the If previous behaviour is a guide to any
pension contributions tax relief available to taxpayers potential future steps they make take,
earning in excess of £150,000 but this is only estimated to
raise an additional £0.2bn. Abolishing the relief on pensions
then indirect taxes are a strong candidate
contributions for all taxpayers would see this increase to
for a potential Conservative Government’s
a much more substantial £20bn. However political taxation agenda.
considerations would almost certainly prevail, meaning
that a more realistic restriction could be applied only to The standard rate of VAT was increased by almost
higher-rate taxpayers (ie those earning £44,000 and above) ten percentage points (from 8 per cent to 17.5 per cent)
which would raise £6bn. under the previous Conservative administrations.
An increase of 2.5 percentage points by a future Chancellor
would not seem out of the question. Indeed, a VAT rate of
20 per cent would be comparable to many of the UK’s
Another well-tried instrument in the
European neighbours and would raise an additional £12bn.
Labour tax repertoire has been National
Insurance increases, applied to employees Other possible areas in the VAT area might include the full
and employers. Raising contributions for imposition of VAT on books and magazines but this and
both by one per cent would generate an similar reforms would inevitably be more controversial.
The Conservatives have given prominence to their
additional £10bn.
The combined impact of both measures could realise a total commitment to introducing measures aimed at cutting
of £16bn in additional revenue. greenhouse gas emissions.There are a number of existing
green taxes and levies including air passenger duty, landfill
tax, the climate change levy and the aggregates levy. It is
reasonable to assume that a Conservative administration
would fulfil their stated commitment by increasing those
green taxes by, perhaps, 25 per cent above the rate
of inflation.
A more politically controversial step, but one that would
have a green rationale, would be an increase in the reduced
rate of VAT payable on domestic fuel bills.These are
currently set at five per cent. Increasing them to nine per
cent would yield an additional £1bn in revenue.
9. Time to break the silence? 07
Assessing the tax policy options available
Liberal Democrats
The Liberal Democrats’ policies and public statements on
various aspects of government policy suggest two particular
avenues for their possible future tax policies.The first of
these, and certainly the most politically controversial, would
be the possible reduction or even abolition of the capital
gains tax exemption applying to the sale of principle private
residences.The party’s finance spokesman,Vince Cable, has
been highly critical of what he characterises as the persistent
reliance on asset bubbles in the housing market to boost the
economy and tax revenues. It does not stretch credulity too
far to suggest that a partial restriction on principal private
residence relief may therefore be a possibility for a Liberal
Democrat administration. Doing so could yield an extra
£3bn in revenue.
A second major policy area that seems likely to drive Liberal
Democrats’ tax policies is the environment.They have
arguably made the boldest claims about their intentions to
introduce measures to address climate change, green
taxation and encourage green living. We infer from the
boldness of their statements that they would be willing to
make bold changes in the tax arena on this. One way could
be to apply the standard rate of VAT on domestic fuel, as
well as increase green taxes by at least 25 per cent above
the rate of inflation.Taken together, these measures would
result in an increase of £4bn.
The Liberal Democrats are also likely to
look for additional tax rises by restricting
reliefs that favour the affluent and
business owners as opposed to less
affluent families. This could mean the
abolition of a wide range of the reliefs
currently applying to various investment
incentives – ISAs, VCTs, EIS, SIPs, EMIs,
etc – and, possibly, a reduction in the
capital allowances available to businesses
for their capital expenditure.
10. 08 Time to break the silence?
Assessing the tax policy options available
Finding the elusive balance
There is no doubt that the UK faces an unprecedented and
bleak fiscal outlook over the next few years. Hard decisions will
need to be made about the best ways to address the scale of
deficit and return Government finances to balance or, to an
acceptable medium term deficit at least. All the political parties
are more than aware of this.The electorate is becoming
increasingly alive to the fact that there will be both cuts in
public spending and increases in taxation. However, for voters
to make informed decisions about the level of pain they are
expected to endure and where exactly it is going to hurt, they
need to have a clear idea of the choices that each party is
prepared to make and the impact those choices will have on
the economy generally, as well as their own personal finances.
It is beyond the remit of this paper to discuss the political
fall-out that may arise from a failure to conduct an intelligent and
‘grown-up’ debate about the harsh choices ahead. However a
failure to communicate and debate these key issues transparently
will only generate ill-will towards the political parties.We believe
that the public deserves to be fully engaged in the process of
debating the key taxation priorities and choosing between the
tough choices that undoubtedly lie ahead.
Call for tax policy
honesty… now!
Assuming, as we do, that the political parties say that we
have made incorrect inferences about what tax increases
they might have in mind, the onus is on all three parties to
share their tax policy alternatives with the electorate well
before the election is called.Three weeks in the run up to
an election is not enough to debate the complex tax
options and make properly informed decisions.
11. 09
Appendix
The appendix contains all sources used, and reproduced below is an extract from one of the sources
(1) Office for National Statistics “Statistical Bulletin; Public Sector Finances” for June 2009 published 21st July 2009.
(2) HM Treasury “Tax ready reckoner and tax reliefs”, November 2008.
(3) HM Treasury “Budget 2009 Building Britain’s future”, April 2009.
Extracts from "Tax ready reckoner and tax reliefs", November 2008.
Table 5: Direct effects of illustrative changes in other direct taxes and national insurance contributions
£m
National insurance contributions 2009-10 2010-11 2011-12
Rates
Change Class 1 employee main rate by 1 percent pt 3,900 4,100 4,300
Change Class 1 employee additional rate by 1 percent pt 950 1,000 1,100
Change Class 1 employer by 1 percentage point 4,950 5,200 5,500
Change Class 2 rate by £1 per week 155 165 170
Change Class 4 main rate by 1 percentage point 340 350 365
Change Class 4 additional rate by 1 percentage point 180 190 205
Table 6: Direct effects of illustrative changes in indirect tax rates
£m
VAT 2009-10 2010-11 2011-12
VAT: change reduced rate by 1 percentage point 250 260 270
VAT: change standard rate by 1 percentage point 4,600 4,800 5,000