Apple's clash with EU competition regulators comes to a head on Wednesday as Europe's second-highest court rules on whether it has to pay 13 billion euros ($15 billion) in Irish back taxes, a key part of the EU's crackdown against sweetheart tax deals.

In its order four years ago, the European Commission said Apple benefited from illegal state aid via two Irish tax rulings that artificially reduced its tax burden for over two decades - to as low as 0.005% in 2014.

Defeat for European Competition Commissioner Margrethe Vestager could weaken or delay pending cases against Ikea's and Nike's deals with the Netherlands, as well as Huhtamaki's agreement with Luxembourg.

Also read:&nbsp;<a href="/technology/apple-reportedly-paid-almost-1-billion-to-samsung-for-faltering-on-order-for-screens-313197" hreflang="en">Apple reportedly paid almost $1 billion to Samsung for faltering on order for screens</a>

Vestager, who has made the tax crackdown a centrepiece of her time in office, saw the same court last year overturn her demand for Starbucks to pay up to 30 million euros in Dutch back taxes. In another case, the court also threw out her ruling against a Belgian tax scheme for 39 multinationals.&nbsp;

The Apple dispute is seen by some analysts as a lose-lose situation for Ireland, which has appealed against the Commission's order alongside the iPhone maker.&nbsp;

While 14 billion euros - including interest - would go a long way to plugging the coronavirus-shaped hole in the state's finances, Dublin is seeking to protect a low tax regime that has attracted 250,000 multinational employers.

If Ireland's appeal succeeds, the government will be ridiculed by opposition parties for not taking the cash, which could cover at least half of a budget deficit forecast to balloon to as much as 10% of GDP this year.

Also read:&nbsp;<a href="/technology/apple-supplier-foxconn-to-invest-1-billion-in-india-sources-312563" hreflang="en">Apple supplier Foxconn to invest $1 billion in India: Sources</a>

Should Ireland lose, the government will be castigated by the same politicians for launching the appeal. A ruling in favour of the Commission could also raise questions about the application of Ireland's tax code at a sensitive time, when new global rules for taxing digital giants are being debated.

Defeat could also hurt Ireland's ability to attract investment, although the promotional blitz undertaken after the Commission's 2016 decision appears to have worked. The numbers employed by multinationals like Apple, Facebook and Google have grown by 25%, accounting for one in ten Irish workers.

For Apple, defeat would be a blow, but manageable given its cash holdings topped $190 billion at the end of its fiscal second quarter.&nbsp;

The cases are T-778/16 Ireland v Commission and T-892/16 Apple Sales International and Apple Operations Europe v Commission. The defeated side can appeal on points of law to the EU Court of Justice, Europe's highest court.

Apple's clash with EU competition regulators comes to a head on Wednesday as Europe's second-highest court rules on whether it has to pay 13 billion euros ($15 billion) in Irish back taxes, a key part of the EU's crackdown against sweetheart tax deals.

Apple's clash with EU competition regulators comes to a head on Wednesday as Europe's second-highest court rules on whether it has to pay 13 billion euros ($15 billion) in Irish back taxes, a key part of the EU's crackdown against sweetheart tax deals. In its order four years ago, the European Commission said Apple benefited from illegal state aid via two Irish tax rulings that artificially reduced its tax burden for over two decades - to as low as 0.005% in 2014. Defeat for European Competition Commissioner Margrethe Vestager could weaken or delay pending cases against Ikea's and Nike's deals with the Netherlands, as well as Huhtamaki's agreement with Luxembourg. Also read: Apple reportedly paid almost $1 billion to Samsung for faltering on order for screens Vestager, who has made the tax crackdown a centrepiece of her time in office, saw the same court last year overturn her demand for Starbucks to pay up to 30 million euros in Dutch back taxes. In another case, the court also threw out her ruling against a Belgian tax scheme for 39 multinationals. The Apple dispute is seen by some analysts as a lose-lose situation for Ireland, which has appealed against the Commission's order alongside the iPhone maker. While 14 billion euros - including interest - would go a long way to plugging the coronavirus-shaped hole in the state's finances, Dublin is seeking to protect a low tax regime that has attracted 250,000 multinational employers. If Ireland's appeal succeeds, the government will be ridiculed by opposition parties for not taking the cash, which could cover at least half of a budget deficit forecast to balloon to as much as 10% of GDP this year. Also read: Apple supplier Foxconn to invest $1 billion in India: Sources Should Ireland lose, the government will be castigated by the same politicians for launching the appeal. A ruling in favour of the Commission could also raise questions about the application of Ireland's tax code at a sensitive time, when new global rules for taxing digital giants are being debated. Defeat could also hurt Ireland's ability to attract investment, although the promotional blitz undertaken after the Commission's 2016 decision appears to have worked. The numbers employed by multinationals like Apple, Facebook and Google have grown by 25%, accounting for one in ten Irish workers. For Apple, defeat would be a blow, but manageable given its cash holdings topped $190 billion at the end of its fiscal second quarter. The cases are T-778/16 Ireland v Commission and T-892/16 Apple Sales International and Apple Operations Europe v Commission. The defeated side can appeal on points of law to the EU Court of Justice, Europe's highest court.

Crunch time for Apple in fight against $15 billion EU tax order

Europe's second-highest court on Wednesday rejected an EU order for&nbsp;Apple&nbsp;to pay 13 billion euros ($15 billion) in Irish back taxes, dealing a blow to the bloc's attempts to crack down on sweetheart tax deals.

In its order four years ago, the European Commission said&nbsp;Apple&nbsp;benefited from illegal state aid via two Irish tax rulings that artificially reduced its tax burden for over two decades - to as low as 0.005% in 2014.

Also read:&nbsp;<a href="/technology/apple-to-give-25-compensation-to-eligible-users-for-deliberately-slowing-down-older-iphones-313401" hreflang="en">Apple to give $25 compensation to eligible users for deliberately slowing down older iPhones</a>

"The General Court annuls the contested decision because the Commission did not succeed in showing to the requisite legal standard that there was an advantage for the purposes of Article 107(1) TFEU1," judges said, referring to EU competition rules.&nbsp;

The defeat for European Competition Commissioner Margrethe Vestager could weaken or delay pending cases against Ikea's and Nike's deals with the Netherlands, as well as Huhtamaki's agreement with Luxembourg.

Vestager, who has made the tax crackdown a centrepiece of her time in office, saw the same court last year overturn her demand for Starbucks to pay up to 30 million euros in Dutch back taxes. In another case, the court also threw out her ruling against a Belgian tax scheme for 39 multinationals.&nbsp;

Also read:&nbsp;<a href="/technology/over-2500-games-removed-from-apples-china-app-store-after-loophole-shuts-313379" hreflang="en">Over 2,500 games removed from Apple's China App Store after loophole shuts</a>

While 14 billion euros - including interest - would have gone a long way to plugging the coronavirus-shaped hole in Ireland's finances, Dublin appealed against the Commission's order alongside&nbsp;Apple&nbsp;because it wanted to protect a low tax regime that has attracted 250,000 multinational employers.

However, the government is likely to face strong criticism from opposition parties for not taking the cash, which could cover at least half of a budget deficit forecast to balloon to as much as 10% of GDP this year.

&nbsp;The defeated side can appeal on points of law to the EU Court of Justice, Europe's highest court.

Europe's second-highest court on Wednesday rejected an EU order for Apple to pay 13 billion euros ($15 billion) in Irish back taxes, dealing a blow to the bloc's attempts to crack down on sweetheart tax deals.

Europe's second-highest court on Wednesday rejected an EU order for Apple to pay 13 billion euros ($15 billion) in Irish back taxes, dealing a blow to the bloc's attempts to crack down on sweetheart tax deals. In its order four years ago, the European Commission said Apple benefited from illegal state aid via two Irish tax rulings that artificially reduced its tax burden for over two decades - to as low as 0.005% in 2014. Also read: Apple to give $25 compensation to eligible users for deliberately slowing down older iPhones "The General Court annuls the contested decision because the Commission did not succeed in showing to the requisite legal standard that there was an advantage for the purposes of Article 107(1) TFEU1," judges said, referring to EU competition rules. The defeat for European Competition Commissioner Margrethe Vestager could weaken or delay pending cases against Ikea's and Nike's deals with the Netherlands, as well as Huhtamaki's agreement with Luxembourg. Vestager, who has made the tax crackdown a centrepiece of her time in office, saw the same court last year overturn her demand for Starbucks to pay up to 30 million euros in Dutch back taxes. In another case, the court also threw out her ruling against a Belgian tax scheme for 39 multinationals. Also read: Over 2,500 games removed from Apple's China App Store after loophole shuts While 14 billion euros - including interest - would have gone a long way to plugging the coronavirus-shaped hole in Ireland's finances, Dublin appealed against the Commission's order alongside Apple because it wanted to protect a low tax regime that has attracted 250,000 multinational employers. However, the government is likely to face strong criticism from opposition parties for not taking the cash, which could cover at least half of a budget deficit forecast to balloon to as much as 10% of GDP this year. The defeated side can appeal on points of law to the EU Court of Justice, Europe's highest court.

Apple, Ireland win fight against $15 billion EU tax order

New York City prosecutors are very likely to obtain President Donald Trump`s tax returns after a major U.S. Supreme Court ruling, but it may not happen before the Nov. 3 election if he argues in lower courts as expected that their request was too broad and made in bad faith, legal experts said.

Manhattan District Attorney Cyrus Vance is seeking eight years of Trump`s business and personal tax returns and other financial documents as part of a criminal investigation involving a grand jury into the Republican president and the Trump Organization, his family`s real estate business.

<a href="https://www.wionews.com/videos/us-supreme-court-rules-on-donald-trumps-tax-records-312115">Also watch:&nbsp;US Supreme Court rules on Donald Trump's tax records</a>

"I believe the district attorney and the grand jury will get the requested documents, but not right away," said Jessica Roth, a professor at Cardozo School of Law in New York and a former federal prosecutor. "We have many weeks and months of further litigation ahead."

The Republican president, a wealthy real estate developer who refused to give up his holdings in the family business after taking office, has fought hard to keep details of his finances secret.The Republican president, a wealthy real estate developer who refused to give up his holdings in the family business after taking office, has fought hard to keep details of his finances secret. Trump has refused to release his tax returns as other presidents have done and sued to try to block enforcement of subpoenas by Democratic lawmakers and prosecutors for his financial records.

The Supreme Court on Thursday ruled against Trump`s bid to block Vance`s subpoena to Trump`s accounting firm Mazars USA for the financial records, rejecting the president`s claim of absolute presidential immunity from criminal proceedings.

But the justices sent the matter back to lower courts for further litigation, giving Trump the opportunity to object to the subpoena on other grounds.

The ruling, written by Chief Justice John Roberts, said Trump "can challenge the subpoena as an attempt to influence the performance of his official duties. And he can argue that compliance with a particular subpoena would impede his constitutional duties."

"We`re evaluating the appropriate next course of action," Jay Sekulow, Trump`s personal lawyer, said on Friday.

Trump could argue that the subpoena is too burdensome or was issued in bad faith because of political motivations, said George Washington University law professor Jonathan Turley, who testified last year as a Republican witness in House of Representatives Trump impeachment hearings.

'Really hard argument'

Trump is unlikely to convince a court that the subpoena is too burdensome because it seeks information from Mazars, a third party, and not the president himself, said Harry Sandick, a former federal prosecutor in Manhattan. 
"Burden is a really hard argument to make," Sandick said.

U.S. District Judge Victor Marrero, who is presiding over the case, said last October he had seen little evidence of political bias in Vance`s pursuit of the financial records.

Roth said evidence that has been public, including congressional testimony by Trump`s former personal lawyer Michael Cohen, provides a "reasonable basis" for Vance`s investigation. Cohen told lawmakers that Trump had inflated and deflated certain assets on financial statements between 2011 and 2013 in part to reduce his real estate taxes.

A loss for Trump before Marrero could still be appealed to the Manhattan-based 2nd U.S. Circuit Court of Appeals, likely delaying production of the documents until after the presidential election in which Trump is seeking a second four-year term in office against Democratic candidate Joe Biden.

Sandick said he expects that prosecutors will obtain the tax returns from Mazars in late 2020 or early 2021. 
Roth said prosecutors could get hold of the documents by November if Marrero rules quickly, which he has shown a tendency to do so far, and his ruling is quickly upheld on appeal.

Even if the financial records are turned over before the election, they likely would not be made public quickly barring an illegal leak to media, Sandick said. Under U.S. law, grand jury materials must be kept secret, though they could eventually end up in publicly available court filings if a criminal case is brought in the investigation against Trump or someone else.

"This process is going to be frustrating for many members of the public," Sandick said. "But it is just the price we pay for having a legal system that lets people make arguments."

Vance`s investigation was launched after disclosures of hush payments to two women who said they had past sexual relationships with Trump, pornographic film actress Stormy Daniels and former Playboy model Karen McDougal - relationships he has denied.

New York City prosecutors are very likely to obtain President Donald Trump`s tax returns after a major U.S. Supreme Court ruling, but it may not happen before the Nov.

New York City prosecutors are very likely to obtain President Donald Trump`s tax returns after a major U.S. Supreme Court ruling, but it may not happen before the Nov. 3 election if he argues in lower courts as expected that their request was too broad and made in bad faith, legal experts said. Manhattan District Attorney Cyrus Vance is seeking eight years of Trump`s business and personal tax returns and other financial documents as part of a criminal investigation involving a grand jury into the Republican president and the Trump Organization, his family`s real estate business. Also watch: US Supreme Court rules on Donald Trump's tax records "I believe the district attorney and the grand jury will get the requested documents, but not right away," said Jessica Roth, a professor at Cardozo School of Law in New York and a former federal prosecutor. "We have many weeks and months of further litigation ahead." The Republican president, a wealthy real estate developer who refused to give up his holdings in the family business after taking office, has fought hard to keep details of his finances secret.The Republican president, a wealthy real estate developer who refused to give up his holdings in the family business after taking office, has fought hard to keep details of his finances secret. Trump has refused to release his tax returns as other presidents have done and sued to try to block enforcement of subpoenas by Democratic lawmakers and prosecutors for his financial records. The Supreme Court on Thursday ruled against Trump`s bid to block Vance`s subpoena to Trump`s accounting firm Mazars USA for the financial records, rejecting the president`s claim of absolute presidential immunity from criminal proceedings. But the justices sent the matter back to lower courts for further litigation, giving Trump the opportunity to object to the subpoena on other grounds. The ruling, written by Chief Justice John Roberts, said Trump "can challenge the subpoena as an attempt to influence the performance of his official duties. And he can argue that compliance with a particular subpoena would impede his constitutional duties." "We`re evaluating the appropriate next course of action," Jay Sekulow, Trump`s personal lawyer, said on Friday. Trump could argue that the subpoena is too burdensome or was issued in bad faith because of political motivations, said George Washington University law professor Jonathan Turley, who testified last year as a Republican witness in House of Representatives Trump impeachment hearings. 'Really hard argument' Trump is unlikely to convince a court that the subpoena is too burdensome because it seeks information from Mazars, a third party, and not the president himself, said Harry Sandick, a former federal prosecutor in Manhattan. "Burden is a really hard argument to make," Sandick said. U.S. District Judge Victor Marrero, who is presiding over the case, said last October he had seen little evidence of political bias in Vance`s pursuit of the financial records. Roth said evidence that has been public, including congressional testimony by Trump`s former personal lawyer Michael Cohen, provides a "reasonable basis" for Vance`s investigation. Cohen told lawmakers that Trump had inflated and deflated certain assets on financial statements between 2011 and 2013 in part to reduce his real estate taxes. A loss for Trump before Marrero could still be appealed to the Manhattan-based 2nd U.S. Circuit Court of Appeals, likely delaying production of the documents until after the presidential election in which Trump is seeking a second four-year term in office against Democratic candidate Joe Biden. Sandick said he expects that prosecutors will obtain the tax returns from Mazars in late 2020 or early 2021. Roth said prosecutors could get hold of the documents by November if Marrero rules quickly, which he has shown a tendency to do so far, and his ruling is quickly upheld on appeal. Even if the financial records are turned over before the election, they likely would not be made public quickly barring an illegal leak to media, Sandick said. Under U.S. law, grand jury materials must be kept secret, though they could eventually end up in publicly available court filings if a criminal case is brought in the investigation against Trump or someone else. "This process is going to be frustrating for many members of the public," Sandick said. "But it is just the price we pay for having a legal system that lets people make arguments." Vance`s investigation was launched after disclosures of hush payments to two women who said they had past sexual relationships with Trump, pornographic film actress Stormy Daniels and former Playboy model Karen McDougal - relationships he has denied.

Prosecutors may not get Trump tax records until after election, experts say

Berlin on Tuesday said it had sent proposals for a new European financial transactions tax (FTT) to nine member state capitals, as Germany hopes for a rapid conclusion to the drawn-out project.

Finance minister <a href="https://www.wionews.com/world/how-europe-reacted-to-brexit-deal-defeat-190587">Olaf Scholz</a> on Monday offered a "final proposition" to hit trades in shares of companies worth more than one billion euros ($1.1 billion) with a 0.2-percent levy, his ministry said.

Ten countries Germany, France, Belgium, Italy, Spain, Portugal, Greece, Austria, Slovakia and Slovenia have agreed to close cooperation on FTT plans.

But talks have been going on for years and had appeared stalled.

"We are now in a position to reach an agreement under enhanced cooperation for the first time since 2011," Scholz wrote in a letter to his fellow finance ministers.

Berlin's planned tax would not be raised on trades in bonds and financial derivatives.

Even in share trading, certain operations could be exempt, including new flotations (IPOs) or pension funds' stock market activities.

In an initial reaction, Austria's finance ministry complained Scholz had opted for a "minimal" range of transactions to tax and left bugbears like high-frequency trading untaxed.

Germany estimates that this form of FTT would bring in around 1.5 billion euros of tax revenue a year.

Much of the sum has already been earmarked to pay for an increase in pensions for the worst-off old people, agreed in principle by Chancellor <a href="https://www.wionews.com/world/merkels-coalition-in-crisis-talks-after-european-union-vote-debacle-221923">Angela Merkel</a>'s coalition government last month.

Dating back to the 1970s, the FTT concept was reinvigorated in 2011 as the financial crisis was at its worst in the EU.

France, Italy, and Britain already tax some financial transactions.

But even within Germany, center-left SPD party politician Scholz's version has already come in for criticism from elsewhere on the political spectrum, including from the ranks of his coalition partners in Merkel's center-right CDU.

"The proposals are an attack on small German investors," CDU MP Christoph Ploss told the Funke newspaper group.

Greens MEP Sven Giegold also told Funke that the latest plan was a "farce, not a real financial transactions tax" that would be paid only by "small investors".

Berlin on Tuesday said it had sent proposals for a new European financial transactions tax (FTT) to nine member state capitals, as Germany hopes for a rapid conclusion to the drawn-out project.

Berlin on Tuesday said it had sent proposals for a new European financial transactions tax (FTT) to nine member state capitals, as Germany hopes for a rapid conclusion to the drawn-out project. Finance minister Olaf Scholz on Monday offered a "final proposition" to hit trades in shares of companies worth more than one billion euros ($1.1 billion) with a 0.2-percent levy, his ministry said. Ten countries Germany, France, Belgium, Italy, Spain, Portugal, Greece, Austria, Slovakia and Slovenia have agreed to close cooperation on FTT plans. But talks have been going on for years and had appeared stalled. "We are now in a position to reach an agreement under enhanced cooperation for the first time since 2011," Scholz wrote in a letter to his fellow finance ministers. Berlin's planned tax would not be raised on trades in bonds and financial derivatives. Even in share trading, certain operations could be exempt, including new flotations (IPOs) or pension funds' stock market activities. In an initial reaction, Austria's finance ministry complained Scholz had opted for a "minimal" range of transactions to tax and left bugbears like high-frequency trading untaxed. Germany estimates that this form of FTT would bring in around 1.5 billion euros of tax revenue a year. Much of the sum has already been earmarked to pay for an increase in pensions for the worst-off old people, agreed in principle by Chancellor Angela Merkel's coalition government last month. Dating back to the 1970s, the FTT concept was reinvigorated in 2011 as the financial crisis was at its worst in the EU. France, Italy, and Britain already tax some financial transactions. But even within Germany, center-left SPD party politician Scholz's version has already come in for criticism from elsewhere on the political spectrum, including from the ranks of his coalition partners in Merkel's center-right CDU. "The proposals are an attack on small German investors," CDU MP Christoph Ploss told the Funke newspaper group. Greens MEP Sven Giegold also told Funke that the latest plan was a "farce, not a real financial transactions tax" that would be paid only by "small investors".

Germany launches new plan for EU financial transaction tax

Unfavourable trends in tax revenue collections suggest that a fiscal slippage in the current financial year 2019-20 (FY20) appears likely, according to investment information firm ICRA. 
 
The fiscal deficit rose by 9.6 per cent to Rs 6.5 lakh crore in the April to September period (H1 FY20) from Rs 5.9 lakh crore in H1 FY19. This was equivalent to 92.6 per cent of the revised budget estimate for FY20, largely similar to the situation in H1 FY19 (92.2 per cent of the FY19 provisional accounts). 
 
Gross tax revenues rose by a muted 1.5 per cent in H1 FY20, considerably undershooting the 18.3 per cent growth included in FY20 revised budget estimate, with a modest rise in direct taxes and a contraction in indirect tax collections. 
 
The net tax revenues have grown by a somewhat faster 4.2 per cent in H1 FY20 since the taxes devolved to the states contracted by 3.4 per cent to Rs 3.1 lakh crore in H1 FY20 from Rs 3.2 lakh crore in H1 FY19. 
 
The transfer of a higher-than-budgeted Rs 1.76 lakh crore from the Reserve Bank of India (RBI) has boosted the growth of non-tax revenues to 91.8 per cent in H1 FY20. This has cushioned the impact of the muted performance of the government's tax revenues on its overall revenue receipts. 
 
The pace of government's expenditure growth has improved sharply, following the presentation of the Union Budget in July. The growth in revenue spending rose to 23.3 per cent in Q2 FY20 from 6.1 per cent in Q1 FY20. 
 
Moreover, capital expenditure and net lending expanded by a sharp 69.7 per cent in Q2 FY20 in contrast to the year-on-year contraction of 28.6 per cent in Q1 FY20. 
 
"Looking ahead, we estimate that the gross tax revenues of the government will need to expand by a sharp 31.3 per cent in H2 FY20 to meet the FY20 revised budget estimate," said ICRA's Principal Economist Aditi Nayar. 
 
"With both direct and indirect tax revenues reporting a subdued performance in the recent months, a mixed outlook for economic growth in H2 FY20 and the anticipated impact of the cut in corporate tax rates, ICRA expects the government's gross tax revenues to trail the FY20 revised budget estimate of Rs 24.6 lakh crore by a considerable Rs 2.5 lakh crore to 3 lakh crore," she said. 
 
A portion of this will be shared by the states through lower tax devolution to them, added Nayar. 
 
Moreover, taxes devolved to the states in FY19 were higher than required, as per ICRA's analysis. "Adjusting for this excess transfer of Central tax devolution in FY19, which we peg at around Rs 0.6 lakh crore to 0.7 lakh crore, we estimate the net Central tax shortfall at Rs 0.7 lakh crore to 1.3 lakh crore in FY20." 
 
A portion of this shortfall will be offset by transfers from the RBI which are higher than budgeted by Rs 0.6 lakh crore. 
 
"Therefore, we estimate the revenue receipts of the government to be Rs 0.1 lakh crore to 0.7 lakh crore lower than the FY20 revised budget estimate which can translate into a fiscal slippage of up to 40 basis points in FY20," said ICRA. 
 
The extent to which disinvestment revenues can be shored up in H2 FY20 will be crucial in determining the final extent of fiscal slippage in the current year. Expenditure cuts may have to be undertaken to prevent the fiscal deficit from rising too sharply in FY20, which can emerge as a risk to the pace of economic growth in H2 FY20.

Unfavourable trends in tax revenue collections suggest that a fiscal slippage in the current financial year 2019-20 (FY20) appears likely, according to investment information firm ICRA.

Unfavourable trends in tax revenue collections suggest that a fiscal slippage in the current financial year 2019-20 (FY20) appears likely, according to investment information firm ICRA. The fiscal deficit rose by 9.6 per cent to Rs 6.5 lakh crore in the April to September period (H1 FY20) from Rs 5.9 lakh crore in H1 FY19. This was equivalent to 92.6 per cent of the revised budget estimate for FY20, largely similar to the situation in H1 FY19 (92.2 per cent of the FY19 provisional accounts). Gross tax revenues rose by a muted 1.5 per cent in H1 FY20, considerably undershooting the 18.3 per cent growth included in FY20 revised budget estimate, with a modest rise in direct taxes and a contraction in indirect tax collections. The net tax revenues have grown by a somewhat faster 4.2 per cent in H1 FY20 since the taxes devolved to the states contracted by 3.4 per cent to Rs 3.1 lakh crore in H1 FY20 from Rs 3.2 lakh crore in H1 FY19. The transfer of a higher-than-budgeted Rs 1.76 lakh crore from the Reserve Bank of India (RBI) has boosted the growth of non-tax revenues to 91.8 per cent in H1 FY20. This has cushioned the impact of the muted performance of the government's tax revenues on its overall revenue receipts. The pace of government's expenditure growth has improved sharply, following the presentation of the Union Budget in July. The growth in revenue spending rose to 23.3 per cent in Q2 FY20 from 6.1 per cent in Q1 FY20. Moreover, capital expenditure and net lending expanded by a sharp 69.7 per cent in Q2 FY20 in contrast to the year-on-year contraction of 28.6 per cent in Q1 FY20. "Looking ahead, we estimate that the gross tax revenues of the government will need to expand by a sharp 31.3 per cent in H2 FY20 to meet the FY20 revised budget estimate," said ICRA's Principal Economist Aditi Nayar. "With both direct and indirect tax revenues reporting a subdued performance in the recent months, a mixed outlook for economic growth in H2 FY20 and the anticipated impact of the cut in corporate tax rates, ICRA expects the government's gross tax revenues to trail the FY20 revised budget estimate of Rs 24.6 lakh crore by a considerable Rs 2.5 lakh crore to 3 lakh crore," she said. A portion of this will be shared by the states through lower tax devolution to them, added Nayar. Moreover, taxes devolved to the states in FY19 were higher than required, as per ICRA's analysis. "Adjusting for this excess transfer of Central tax devolution in FY19, which we peg at around Rs 0.6 lakh crore to 0.7 lakh crore, we estimate the net Central tax shortfall at Rs 0.7 lakh crore to 1.3 lakh crore in FY20." A portion of this shortfall will be offset by transfers from the RBI which are higher than budgeted by Rs 0.6 lakh crore. "Therefore, we estimate the revenue receipts of the government to be Rs 0.1 lakh crore to 0.7 lakh crore lower than the FY20 revised budget estimate which can translate into a fiscal slippage of up to 40 basis points in FY20," said ICRA. The extent to which disinvestment revenues can be shored up in H2 FY20 will be crucial in determining the final extent of fiscal slippage in the current year. Expenditure cuts may have to be undertaken to prevent the fiscal deficit from rising too sharply in FY20, which can emerge as a risk to the pace of economic growth in H2 FY20.

India: Fiscal slippage likely in 2020 as tax revenue growth stumbles

A US appeals court ruled on Monday that <a href="https://www.wionews.com/world/white-house-witnesses-are-no-shows-in-impeachment-probe-259947">President Donald Trump</a> must release eight years of tax returns, dealing a blow to his attempts to keep his personal earnings private.

The decision is the latest development in a years-long effort to obtain copies of Trump's taxes, which he promised during the campaign to make public after an audit but has since refused to share.

A three-judge panel in Manhattan rejected an appeal by the president's lawyers challenging a subpoena by New York prosecutors that demanded that his accounting firm hand over the records.

The federal judges, however, refused to take a position on claims by Trump's attorneys that as America's leader he is immune from any criminal investigation.

"We emphasize again the narrowness of the issue before us," they wrote in their decision.

"This appeal does not require us to consider whether the president is immune from indictment and prosecution while in office, nor to consider whether the president may lawfully be ordered to produce documents for use in a state criminal proceeding," the judges added.

The president's legal team did not immediately respond to a request for comment but it is likely that the case will end up in the Supreme Court.

Trump had filed suit against Manhattan District Attorney Cyrus Vance Jr, a Democrat who had subpoenaed the accounting firm Mazars USA, seeking access to the president's returns dating back to 2011.

Vance is investigating payments made by Michael Cohen, Trump's former personal attorney, to Stormy Daniels, an adult film actress who claimed to have had a sexual liaison with Trump before he ran for president in 2016.

Cohen is currently serving three years in prison after admitting paying hush money,&nbsp;in violation of campaign finance laws,&nbsp;to Daniels and another woman, tax fraud, and lying to Congress.

<a href="https://www.wionews.com/world/donald-trump-threatens-to-withhold-emergency-aid-from-fire-hit-california-259805">Trump's lawyers</a> claimed in court that their client doesn't need to abide by Vance's injunction because as president of the United States he cannot be prosecuted for an offence.

But the judges ruled that presidential immunity was not an issue here because it was the accounting firm that had been subpoenaed for the documents.

Trump broke with a long-established norm during the 2016 presidential election by refusing to release his tax returns as most presidents have done since the 1970s even though it is not required by law.

He has claimed that they are under audit by the Internal Revenue Service, and there have been various attempts to obtain them, including by the Democratic-led House of Representatives.

A US appeals court ruled on Monday that President Donald Trump must release eight years of tax returns, dealing a blow to his attempts to keep his personal earnings private.

A US appeals court ruled on Monday that President Donald Trump must release eight years of tax returns, dealing a blow to his attempts to keep his personal earnings private. The decision is the latest development in a years-long effort to obtain copies of Trump's taxes, which he promised during the campaign to make public after an audit but has since refused to share. A three-judge panel in Manhattan rejected an appeal by the president's lawyers challenging a subpoena by New York prosecutors that demanded that his accounting firm hand over the records. The federal judges, however, refused to take a position on claims by Trump's attorneys that as America's leader he is immune from any criminal investigation. "We emphasize again the narrowness of the issue before us," they wrote in their decision. "This appeal does not require us to consider whether the president is immune from indictment and prosecution while in office, nor to consider whether the president may lawfully be ordered to produce documents for use in a state criminal proceeding," the judges added. The president's legal team did not immediately respond to a request for comment but it is likely that the case will end up in the Supreme Court. Trump had filed suit against Manhattan District Attorney Cyrus Vance Jr, a Democrat who had subpoenaed the accounting firm Mazars USA, seeking access to the president's returns dating back to 2011. Vance is investigating payments made by Michael Cohen, Trump's former personal attorney, to Stormy Daniels, an adult film actress who claimed to have had a sexual liaison with Trump before he ran for president in 2016. Cohen is currently serving three years in prison after admitting paying hush money, in violation of campaign finance laws, to Daniels and another woman, tax fraud, and lying to Congress. Trump's lawyers claimed in court that their client doesn't need to abide by Vance's injunction because as president of the United States he cannot be prosecuted for an offence. But the judges ruled that presidential immunity was not an issue here because it was the accounting firm that had been subpoenaed for the documents. Trump broke with a long-established norm during the 2016 presidential election by refusing to release his tax returns as most presidents have done since the 1970s even though it is not required by law. He has claimed that they are under audit by the Internal Revenue Service, and there have been various attempts to obtain them, including by the Democratic-led House of Representatives.

United States judges reject Trump appeal over tax returns

A decision to impose a 100 per cent tax on bills at restaurants that serve shisha has ignited criticism on social media in Saudi Arabia, where the water pipes are a popular pastime.

The furore has also been fuelled by confusion over how the tax is applied.

In the meantime, some restaurants have stopped offering shisha, while others have lowered their prices to appease customers.

The government's official gazette said earlier this month that the tax will apply to all tobacco products.

However, the ruling from the ministry of rural and municipal affairs said it will apply "to the total invoice of the business serving tobacco products".

A number of restaurants and cafes contacted by AFP said they believed that the tax applies to all table orders in any establishment that serves tobacco products, whether or not the order included shisha.

The decision sparked an avalanche of criticism on social media networks where the Arabic hashtag "tax on hookah restaurants" is trending in the kingdom.

Many people posted photos of their restaurant bills, with totals of more than double the initial amount when taking into account the new 100 per cent tax and a still-unpopular five per cent value-added tax which went into effect last year.

"Tobacco tax, controversy and confusion," read a headline in the Al-Madina newspaper on Monday.

In the face of persistent budget deficits, the world's top crude oil exporter has resorted to measures like cutting subsidies on fuel and power and imposing new taxes including on cigarettes and soft drinks.

There were also suggestions that the new shisha tax could be a measure to protect public health.

"This is an indirect way to prohibit shisha without actually prohibiting it," tweeted Electronic Lawyer, a popular commentator who has more than 80,000 followers.

Other Twitter users said the new decision goes against the country's Vision 2030 ambitions to change its ultra-conservative image and revamp the economy.

Encouraging investment and kickstarting tourism is part of a reform programme envisaged by Crown Prince Mohammed bin Salman to wean the kingdom off its reliance on oil.

Saudi columnist Bassam Fatiny criticised the size of the tax as ill-considered.

"Let us assume that tax on tobacco has environmental and health benefits, is it logical that it be 100 per cent!" he said on Twitter. "The ministry must have misunderstood Vision (2030)."

A decision to impose a 100 per cent tax on bills at restaurants that serve shisha has ignited criticism on social media in Saudi Arabia, where the water pipes are a popular pastime.

A decision to impose a 100 per cent tax on bills at restaurants that serve shisha has ignited criticism on social media in Saudi Arabia, where the water pipes are a popular pastime. The furore has also been fuelled by confusion over how the tax is applied. In the meantime, some restaurants have stopped offering shisha, while others have lowered their prices to appease customers. The government's official gazette said earlier this month that the tax will apply to all tobacco products. However, the ruling from the ministry of rural and municipal affairs said it will apply "to the total invoice of the business serving tobacco products". A number of restaurants and cafes contacted by AFP said they believed that the tax applies to all table orders in any establishment that serves tobacco products, whether or not the order included shisha. The decision sparked an avalanche of criticism on social media networks where the Arabic hashtag "tax on hookah restaurants" is trending in the kingdom. Many people posted photos of their restaurant bills, with totals of more than double the initial amount when taking into account the new 100 per cent tax and a still-unpopular five per cent value-added tax which went into effect last year. "Tobacco tax, controversy and confusion," read a headline in the Al-Madina newspaper on Monday. In the face of persistent budget deficits, the world's top crude oil exporter has resorted to measures like cutting subsidies on fuel and power and imposing new taxes including on cigarettes and soft drinks. There were also suggestions that the new shisha tax could be a measure to protect public health. "This is an indirect way to prohibit shisha without actually prohibiting it," tweeted Electronic Lawyer, a popular commentator who has more than 80,000 followers. Other Twitter users said the new decision goes against the country's Vision 2030 ambitions to change its ultra-conservative image and revamp the economy. Encouraging investment and kickstarting tourism is part of a reform programme envisaged by Crown Prince Mohammed bin Salman to wean the kingdom off its reliance on oil. Saudi columnist Bassam Fatiny criticised the size of the tax as ill-considered. "Let us assume that tax on tobacco has environmental and health benefits, is it logical that it be 100 per cent!" he said on Twitter. "The ministry must have misunderstood Vision (2030)."

Saudi Arabia's new 100% shisha tax sparks fury

The Bharatiya Janata Party (BJP) on Friday urged Pakistani Prime Minister Imran Khan to take back proposed service charge of US $20 for each visiting pilgrim to Kartarpur Sahib and said if the neighbouring country, which is facing financial crisis, needs the money invested there in the development of the Sikhs shrine, the Sikhs will transfer the amount.

"It is very sad that in the name of pilgrimage services, the Pakistan government is charging `jazia` (a tax on non-Muslims) of US $20 for each devotee visiting Kartarpur Sahib Gurudwara. If you calculate together, it will be around Rs 255 crore annually, the amount Pakistani government would be getting through this. I appeal Pakistani Prime Minister Imran Khan Sahib. Please don`t charge this," BJP National Secretary R P Singh told ANI.

He said the proposed Pakistani service charge of US $20 a visitor was against the basic spirit of Sikh ideology and Imran Khan should understand it.

"I have been told that they invested money in Kartarpur Sahib. Let us know one time the amount you invested there. We would request SGPC to open an escrow account. And Sikhs will send the money to you," Singh, a prominent Sikh face of BJP in Delhi said.

He said the devotees wishing to visit Kartarpur are not only Sikhs but Sindhis and from other religious communities and there are many who can`t even afford $20.

"We know that you need money. We know your government is in financial crisis. Let us know how much money you have invested in Kartarpur Sahib Corridor or how much money you need for its maintenance. Let us know. We would make a request to SGPC. Money can be transferred to Pakistan government," said Singh.

Calling the service charge as "jazia tax", the BJP leader said he will write a letter to Imran Khan requesting "please don`t charge this tax".

Singh also slammed Congress and former Prime Minister Indira Gandhi for missing the opportunity to barter over 90,000 Pakistani prisoners of war in 1971 for Kartarpur Sahib and said, even Nankana Sahib could have been brought to Indian side on this account.

"Sikhs at large pray that all those places left behind Pakistan should get the opportunity to visit there. But the people who decided demarcation at that time did not think of it. Not only that, in 1971, when over 90,000 Pakistani soldiers were with us, we could have decided to bring Kartarpur Sahib to our side," he said.

"Even Nankana Sahib could have been brought to our side. Indira Gandhi could have taken a call and could have barter that soldiers for Kartarpur Sahib and Nankana Sahib. The rulers that time didn`t think of it. We are thankful to PM Modi who has taken initiative to for Kartarpur Sahib," he added.

In 1971, India won the war against Pakistan that resulted in the birth of Bangladesh (then East Pakistan). On August 2, 1972, India and Pakistan signed the Shimla Agreement under which India agreed to release all the 93,000 Pakistani prisoners of war. It was also the largest military surrender after World War II.

The Bharatiya Janata Party (BJP) on Friday urged Pakistani Prime Minister Imran Khan to take back proposed service charge of US $20 for each visiting pilgrim to Kartarpur Sahib and said if the neighbouring country, which is facing financial crisis, needs the money invested there in the development of the Sikhs shrine, the Sikhs will transfer the amount.

The Bharatiya Janata Party (BJP) on Friday urged Pakistani Prime Minister Imran Khan to take back proposed service charge of US $20 for each visiting pilgrim to Kartarpur Sahib and said if the neighbouring country, which is facing financial crisis, needs the money invested there in the development of the Sikhs shrine, the Sikhs will transfer the amount. "It is very sad that in the name of pilgrimage services, the Pakistan government is charging `jazia` (a tax on non-Muslims) of US $20 for each devotee visiting Kartarpur Sahib Gurudwara. If you calculate together, it will be around Rs 255 crore annually, the amount Pakistani government would be getting through this. I appeal Pakistani Prime Minister Imran Khan Sahib. Please don`t charge this," BJP National Secretary R P Singh told ANI. He said the proposed Pakistani service charge of US $20 a visitor was against the basic spirit of Sikh ideology and Imran Khan should understand it. "I have been told that they invested money in Kartarpur Sahib. Let us know one time the amount you invested there. We would request SGPC to open an escrow account. And Sikhs will send the money to you," Singh, a prominent Sikh face of BJP in Delhi said. He said the devotees wishing to visit Kartarpur are not only Sikhs but Sindhis and from other religious communities and there are many who can`t even afford $20. "We know that you need money. We know your government is in financial crisis. Let us know how much money you have invested in Kartarpur Sahib Corridor or how much money you need for its maintenance. Let us know. We would make a request to SGPC. Money can be transferred to Pakistan government," said Singh. Calling the service charge as "jazia tax", the BJP leader said he will write a letter to Imran Khan requesting "please don`t charge this tax". Singh also slammed Congress and former Prime Minister Indira Gandhi for missing the opportunity to barter over 90,000 Pakistani prisoners of war in 1971 for Kartarpur Sahib and said, even Nankana Sahib could have been brought to Indian side on this account. "Sikhs at large pray that all those places left behind Pakistan should get the opportunity to visit there. But the people who decided demarcation at that time did not think of it. Not only that, in 1971, when over 90,000 Pakistani soldiers were with us, we could have decided to bring Kartarpur Sahib to our side," he said. "Even Nankana Sahib could have been brought to our side. Indira Gandhi could have taken a call and could have barter that soldiers for Kartarpur Sahib and Nankana Sahib. The rulers that time didn`t think of it. We are thankful to PM Modi who has taken initiative to for Kartarpur Sahib," he added. In 1971, India won the war against Pakistan that resulted in the birth of Bangladesh (then East Pakistan). On August 2, 1972, India and Pakistan signed the Shimla Agreement under which India agreed to release all the 93,000 Pakistani prisoners of war. It was also the largest military surrender after World War II.

Don't charge jazia tax, if you need money, Sikhs will send to Pakistan government : BJP leader RP Singh to Imran Khan

Italy is readying a new tax on digital companies in its 2020 budget, as it seeks alternative revenues that will allow it to scrap a scheduled increase in sales tax, two coalition sources told on Monday.

The levy will oblige multinational web-based giants to pay a 3 per cent levy on internet transactions, the sources said, adding that some changes were possible due to ongoing negotiations among the ruling parties.

The scheme is expected to yield around 600 million euros each year, and will apply to companies with annual global revenues worth at least 750 million euros and digital services exceeding 5.5 million euros in Italy.

The plan is broadly in line with proposals from the Paris-based Organisation for Economic Cooperation (OECD), which last week urged governments to redraw rules for taxing global giants.

Rome is struggling to find resources to avoid a hike in sales tax worth some 23 billion euros ($26 billion), due to kick in from January, which could hurt already weak domestic demand.

The coalition of the anti-establishment 5-Star Movement and the centre-left Democratic Party has to send the draft budget to the European Commission by October 15.

Italy and fellow European Union members have long complained about the way Facebook, Google and other web giants collect huge profits in their countries but pay taxes of a few million euros per year at most.

Big internet firms have pushed tax rules to the limit as they can shift earnings to low- or no-tax locations such as Ireland, regardless of where their customers are.

Italy originally set out plans for a web tax in 2018 under the previous coalition of 5-Star and the right-wing League, but that government collapsed in August this year and the levy was never implemented.

The new scheme will take effect from January, sources said. It will operate under a "self-assessment taxation regime" by which the companies submit a calculation of the amount owed. This will be subject to possible checks by the Italian authorities.

If the European Union manages to introduce common rules for a web-tax covering the whole 28-nation bloc, Italy will adjust its own plan accordingly, they added.

Rome has asked the European Commission to present a proposal on minimum taxation for companies across Europe, Economy Minister Roberto Gualtieri told a parliamentary hearing on October 8.

Italy is readying a new tax on digital companies in its 2020 budget, as it seeks alternative revenues that will allow it to scrap a scheduled increase in sales tax, two coalition sources told on Monday.

Italy is readying a new tax on digital companies in its 2020 budget, as it seeks alternative revenues that will allow it to scrap a scheduled increase in sales tax, two coalition sources told on Monday. The levy will oblige multinational web-based giants to pay a 3 per cent levy on internet transactions, the sources said, adding that some changes were possible due to ongoing negotiations among the ruling parties. The scheme is expected to yield around 600 million euros each year, and will apply to companies with annual global revenues worth at least 750 million euros and digital services exceeding 5.5 million euros in Italy. The plan is broadly in line with proposals from the Paris-based Organisation for Economic Cooperation (OECD), which last week urged governments to redraw rules for taxing global giants. Rome is struggling to find resources to avoid a hike in sales tax worth some 23 billion euros ($26 billion), due to kick in from January, which could hurt already weak domestic demand. The coalition of the anti-establishment 5-Star Movement and the centre-left Democratic Party has to send the draft budget to the European Commission by October 15. Italy and fellow European Union members have long complained about the way Facebook, Google and other web giants collect huge profits in their countries but pay taxes of a few million euros per year at most. Big internet firms have pushed tax rules to the limit as they can shift earnings to low- or no-tax locations such as Ireland, regardless of where their customers are. Italy originally set out plans for a web tax in 2018 under the previous coalition of 5-Star and the right-wing League, but that government collapsed in August this year and the levy was never implemented. The new scheme will take effect from January, sources said. It will operate under a "self-assessment taxation regime" by which the companies submit a calculation of the amount owed. This will be subject to possible checks by the Italian authorities. If the European Union manages to introduce common rules for a web-tax covering the whole 28-nation bloc, Italy will adjust its own plan accordingly, they added. Rome has asked the European Commission to present a proposal on minimum taxation for companies across Europe, Economy Minister Roberto Gualtieri told a parliamentary hearing on October 8.

Italy readies 'web tax' in its 2020 budget: Sources

A&nbsp;<a href="https://www.wionews.com/world/britain-and-eu-spar-over-brexit-as-clock-ticks-down-250908">European Union (EU)</a> court on Tuesday annulled an order by Brussels that Starbucks pay 30 Million Euros to the Netherlands, saying regulators had failed to demonstrate it received illegal state aid.

In a separate decision, however, the same court said Fiat must pay roughly the same amount to Luxembourg, upholding a similar EU order from 2015.

The split decision will be closely watched by Apple, which was ordered to repay Ireland 13 Billion Euros in 2016 in a blockbuster case that is also making its way through EU courts.

The cases can now be appealed at the EU's highest court, the European Court of Justice.

"The general court annuls the commission's decision on the aid measure implemented by the Netherlands in favour of Starbucks," the statement said.

"The commission was unable to demonstrate the existence of an advantage in favour of Starbucks," it added.

The cases from 2015 were the first out of the gate in the crackdown by the EU's anti-trust supremo Margarethe Vestager against member states that had sealed sweetheart tax deals with multinationals.

In her landmark rulings, Vestager said Dutch authorities must recoup unpaid taxes from Starbucks because it illegally allowed an elaborate tax set-up that allowed it to shift revenue abroad.

"I am pleased that the European Commission's case on Starbucks against the Netherlands on state aid has been clarified," Dutch secretary of state for finance Menno Snel said in a statement.

"This decision proves that the Dutch tax authorities treated Starbucks like any other company, and no better or different," he added.

The <a href="https://www.wionews.com/world/starbucks-opens-silent-cafe-in-china-220127">Starbucks</a> and <a href="https://www.wionews.com/videos/volkswagen-fiat-chrysler-could-face-2021-eu-emissions-fines-study-230743">Fiat</a> cases are dwarfed by the blockbuster order in 2016 that Apple repays Ireland 13 Billion Euros.

That case drew global attention, helping Vestager become the EU's highest-profile official.&nbsp;

In the new commission, she has been promoted to Executive Vice President and will effectively become Europe's tech regulation czar, while still holding on to her powerful anti-trust portfolio.

EU member states such as Belgium, Ireland, Luxembourg, and the Netherlands have attracted multinationals over many years by offering extremely favourable tax deals to generate jobs and investment.

The issue hit close to home in 2014 with the LuxLeaks scandal which revealed that European Commission President Jean-Claude Juncker's native Luxembourg gave companies favourable tax deals while he was prime minister.

Luxembourg has also been ordered&nbsp;by Brussels to recoup 250 million euros from Amazon and 120 million euros&nbsp;from French energy giant Engie.

The same court handed the commission the first setback in 2019, when it threw out a tax deal decision against Belgium, but mainly on procedural grounds. The commission last week refiled the case.

The commission is also investigating tax deals with Ikea and Nike in the Netherlands. Brussels dropped a keenly-watched case against McDonald's.

A European Union (EU) court on Tuesday annulled an order by Brussels that Starbucks pay 30 Million Euros to the Netherlands, saying regulators had failed to demonstrate it received illegal state aid.

A European Union (EU) court on Tuesday annulled an order by Brussels that Starbucks pay 30 Million Euros to the Netherlands, saying regulators had failed to demonstrate it received illegal state aid. In a separate decision, however, the same court said Fiat must pay roughly the same amount to Luxembourg, upholding a similar EU order from 2015. The split decision will be closely watched by Apple, which was ordered to repay Ireland 13 Billion Euros in 2016 in a blockbuster case that is also making its way through EU courts. The cases can now be appealed at the EU's highest court, the European Court of Justice. "The general court annuls the commission's decision on the aid measure implemented by the Netherlands in favour of Starbucks," the statement said. "The commission was unable to demonstrate the existence of an advantage in favour of Starbucks," it added. The cases from 2015 were the first out of the gate in the crackdown by the EU's anti-trust supremo Margarethe Vestager against member states that had sealed sweetheart tax deals with multinationals. In her landmark rulings, Vestager said Dutch authorities must recoup unpaid taxes from Starbucks because it illegally allowed an elaborate tax set-up that allowed it to shift revenue abroad. "I am pleased that the European Commission's case on Starbucks against the Netherlands on state aid has been clarified," Dutch secretary of state for finance Menno Snel said in a statement. "This decision proves that the Dutch tax authorities treated Starbucks like any other company, and no better or different," he added. The Starbucks and Fiat cases are dwarfed by the blockbuster order in 2016 that Apple repays Ireland 13 Billion Euros. That case drew global attention, helping Vestager become the EU's highest-profile official. In the new commission, she has been promoted to Executive Vice President and will effectively become Europe's tech regulation czar, while still holding on to her powerful anti-trust portfolio. EU member states such as Belgium, Ireland, Luxembourg, and the Netherlands have attracted multinationals over many years by offering extremely favourable tax deals to generate jobs and investment. The issue hit close to home in 2014 with the LuxLeaks scandal which revealed that European Commission President Jean-Claude Juncker's native Luxembourg gave companies favourable tax deals while he was prime minister. Luxembourg has also been ordered by Brussels to recoup 250 million euros from Amazon and 120 million euros from French energy giant Engie. The same court handed the commission the first setback in 2019, when it threw out a tax deal decision against Belgium, but mainly on procedural grounds. The commission last week refiled the case. The commission is also investigating tax deals with Ikea and Nike in the Netherlands. Brussels dropped a keenly-watched case against McDonald's.

EU loses big Starbucks tax case, wins on Fiat

In order to help entrepreneurs to carry out their business, Finance Minister Nirmala Sitharaman on Tuesday said she has directed the tax administrators to be restraint in the tax collection process and also asked them to understand the businesses.

"Deadlines regarding tax collection, which have been given in consultation with all authorities, are all not impossible but are achievable deadlines. Therefore, my request was not to overreach, not to overstate themselves in the collection process. It is achievable if they are able to go with a bit of restraint," she told reporters here.

The minister said that tax administrators should facilitate businesses, which essentially create jobs.

"Whatever be the size small, medium, micro, nano or large entrepreneurs of this country, we want them to carry out their business without a worry... So that everyone carries on with their business, which essentially creates jobs," she said.

"It is important that tax administrators do their job of tax collection and enforcement of tax rules. They also need to understand businesses and ways to facilitate these as well," she said.&nbsp; 
&nbsp;

In order to help entrepreneurs to carry out their business, Finance Minister Nirmala Sitharaman on Tuesday said she has directed the tax administrators to be restraint in the tax collection process and also asked them to understand the businesses.

In order to help entrepreneurs to carry out their business, Finance Minister Nirmala Sitharaman on Tuesday said she has directed the tax administrators to be restraint in the tax collection process and also asked them to understand the businesses. "Deadlines regarding tax collection, which have been given in consultation with all authorities, are all not impossible but are achievable deadlines. Therefore, my request was not to overreach, not to overstate themselves in the collection process. It is achievable if they are able to go with a bit of restraint," she told reporters here. The minister said that tax administrators should facilitate businesses, which essentially create jobs. "Whatever be the size small, medium, micro, nano or large entrepreneurs of this country, we want them to carry out their business without a worry... So that everyone carries on with their business, which essentially creates jobs," she said. "It is important that tax administrators do their job of tax collection and enforcement of tax rules. They also need to understand businesses and ways to facilitate these as well," she said.

Sitharaman gives mantra of restraint to tax collectors but says deadlines are realistic

US President Donald Trump threatened to slap heavy tariffs on French wine in response to taxes on American tech companies just before heading to France for a summit of G7 leaders.

"Those are great American companies, and frankly, I don't want France going out and taxing our companies. Very unfair," he told reporters outside the White House shortly before boarding his helicopter.

"And if they do that, we'll be taxing their wine or doing something else. We'll be taxing their wine like they've never seen before. That's for us to tax them, not for France to tax them."

US President Donald Trump threatened to slap heavy tariffs on French wine in response to taxes on American tech companies just before heading to France for a summit of G7 leaders.

US President Donald Trump threatened to slap heavy tariffs on French wine in response to taxes on American tech companies just before heading to France for a summit of G7 leaders. "Those are great American companies, and frankly, I don't want France going out and taxing our companies. Very unfair," he told reporters outside the White House shortly before boarding his helicopter. "And if they do that, we'll be taxing their wine or doing something else. We'll be taxing their wine like they've never seen before. That's for us to tax them, not for France to tax them."

Trump threatens tariffs on French wine as he heads to G7

US-China trade war in 10 dates

Polish lawmakers have approved a measure that would exonerate most workers under the age of 26 from income taxes as the country seeks to stem the flow of its young people to other EU nations in search of better-paying jobs.

The lower house of parliament approved the measure introduced by the ruling conservatives in a vote late Thursday by an overwhelming majority.

The bill would exonerate workers under the age of 26 from Poland's 18 per cent personal income tax for those whose gross earnings don't surpass 85,500 zlotys (20,000 euros, $22,500) per year.

That level is higher than Poland's average income, estimated to be around 60,000 zlotys per year before tax.

The approval of the measure by the upper house of parliament and its signature by the president is widely expected.

Some two million people could benefit from the measure, according to supporters of the legislation, which should enter into force from August 1.

Poland has long been haemorrhaging skilled workers to other EU states where they can find better-paying jobs, posing both a long-term demographic risk and short-term problem finding enough labourers to continue the country's streak of economic growth since the fall of communism in 1989.

The measure was one of the campaign promises made by the ruling Law and Justice party ahead of the European parliamentary elections in May, which it won, and legislative elections scheduled for later this year. 
&nbsp;

Polish lawmakers have approved a measure that would exonerate most workers under the age of 26 from income taxes as the country seeks to stem the flow of its young people to other EU nations in search of better-paying jobs.

Polish lawmakers have approved a measure that would exonerate most workers under the age of 26 from income taxes as the country seeks to stem the flow of its young people to other EU nations in search of better-paying jobs. The lower house of parliament approved the measure introduced by the ruling conservatives in a vote late Thursday by an overwhelming majority. The bill would exonerate workers under the age of 26 from Poland's 18 per cent personal income tax for those whose gross earnings don't surpass 85,500 zlotys (20,000 euros, $22,500) per year. That level is higher than Poland's average income, estimated to be around 60,000 zlotys per year before tax. The approval of the measure by the upper house of parliament and its signature by the president is widely expected. Some two million people could benefit from the measure, according to supporters of the legislation, which should enter into force from August 1. Poland has long been haemorrhaging skilled workers to other EU states where they can find better-paying jobs, posing both a long-term demographic risk and short-term problem finding enough labourers to continue the country's streak of economic growth since the fall of communism in 1989. The measure was one of the campaign promises made by the ruling Law and Justice party ahead of the European parliamentary elections in May, which it won, and legislative elections scheduled for later this year.

Poland moves to exempt young workers from income tax

<a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/sports/barca-haunted-by-ghosts-of-rome-in-nightmare-loss-to-liverpool-gerard-pique-221387&amp;sa=U&amp;ved=2ahUKEwjr7NTMqKrjAhWJ7nMBHbHxALYQFjACegQIDxAC&amp;usg=AOvVaw2oDybOjO8_ZKjEV_-5o--P">Barcelona's</a> Gerard Pique will be forced to pay ‎€2.1 million ($2.36 million) to Spain's tax authorities after his conviction for rights-image fraud was confirmed, a legal source told AFP on Wednesday.

According to a May 13 decision the country's National Court rejected Pique's appeal against the 2016 sentence which required the former Spain international to pay ‎€1.5 million in tax arrears and a 600,000 euros fine.

The tribunal concluded <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/sports/gerard-pique-speaks-on-facing-former-manchester-united-teammate-ole-gunnar-solskjaer-209171&amp;sa=U&amp;ved=2ahUKEwjr7NTMqKrjAhWJ7nMBHbHxALYQFjAAegQIAxAC&amp;usg=AOvVaw0qJp4Ynfeqr-KtEPU4f7f5">Pique</a> had faked the handover of his rights images to his Kerad Project company to pay less tax for 2008, 2009 and 2010.

Pique, a World Cup and European Championships winner retains the right to appeal to Spain's supreme court.&nbsp;

The verdict comes a month after his wife, Colombian musician Shakira, was questioned by a judge near the Catalan city over alleged evasion of ‎€14.5 million in taxes.

Her press team released a statement in which they said the artist was innocent.

The centre-back's former teammate at the Camp Nou <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/sports/brazil-authorities-put-freeze-on-neymar-mansions-amid-tax-dispute-228093&amp;sa=U&amp;ved=2ahUKEwj4nev1qKrjAhVb8XMBHedlAoEQFjAAegQIAxAC&amp;usg=AOvVaw0QC6QZH7keaR4NhXxf_-z7">Neymar </a>is under investigation by Spain's fiscal authorities over a bonus he received at Barca as well as his world-record transfer to Paris Saint-Germain.

Another of Pique's fellow club squad members Lionel Messi paid a two-million-euro fine in 2016 in his own tax wrangle and received a 21-month jail term.

The prison sentence was later reduced to a further fine of ‎€252,000, equivalent to ‎€400&nbsp;per day of the original term.

A Spanish court in January handed Portuguese forward Cristiano Ronaldo a suspended two-year prison sentence for committing tax fraud when he was at Real Madrid.

The player, who joined Italian side Juventus last year, also agreed to pay ‎€18.8 million in fines and back taxes to settle the case, according to judicial sources.

Newspaper El Mundo reported in April authorities had accused Atletico Madrid attacker <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/sports/diego-costa-banned-for-eight-games-for-insulting-referee-209665&amp;sa=U&amp;ved=2ahUKEwixw7KLqarjAhXQ73MBHYpFBk0QFjABegQIEBAC&amp;usg=AOvVaw18LDXzRpJ7yjCSUIpXgG2i">Diego Costa</a> of fraud totalling ‎€1.1 million related to taxes related to his image rights in 2014.&nbsp;

Barcelona's Gerard Pique will be forced to pay ‎€2.1 million ($2.36 million) to Spain's tax authorities after his conviction for rights-image fraud was confirmed, a legal source told AFP on Wednesday.

Barcelona's Gerard Pique will be forced to pay ‎€2.1 million ($2.36 million) to Spain's tax authorities after his conviction for rights-image fraud was confirmed, a legal source told AFP on Wednesday. According to a May 13 decision the country's National Court rejected Pique's appeal against the 2016 sentence which required the former Spain international to pay ‎€1.5 million in tax arrears and a 600,000 euros fine. The tribunal concluded Pique had faked the handover of his rights images to his Kerad Project company to pay less tax for 2008, 2009 and 2010. Pique, a World Cup and European Championships winner retains the right to appeal to Spain's supreme court. The verdict comes a month after his wife, Colombian musician Shakira, was questioned by a judge near the Catalan city over alleged evasion of ‎€14.5 million in taxes. Her press team released a statement in which they said the artist was innocent. The centre-back's former teammate at the Camp Nou Neymar is under investigation by Spain's fiscal authorities over a bonus he received at Barca as well as his world-record transfer to Paris Saint-Germain. Another of Pique's fellow club squad members Lionel Messi paid a two-million-euro fine in 2016 in his own tax wrangle and received a 21-month jail term. The prison sentence was later reduced to a further fine of ‎€252,000, equivalent to ‎€400 per day of the original term. A Spanish court in January handed Portuguese forward Cristiano Ronaldo a suspended two-year prison sentence for committing tax fraud when he was at Real Madrid. The player, who joined Italian side Juventus last year, also agreed to pay ‎€18.8 million in fines and back taxes to settle the case, according to judicial sources. Newspaper El Mundo reported in April authorities had accused Atletico Madrid attacker Diego Costa of fraud totalling ‎€1.1 million related to taxes related to his image rights in 2014.

Barcelona's Gerard Pique handed €2.1 million tax bill

The French government is to impose a tax of up to 18 euros ($20) on plane tickets for all flights from airports in <a href="http://wionews.com/world/france-president-emmanuel-macrons-advisor-heads-to-iran-to-calm-nuclear-tensions-234122">France</a> to fund less-polluting transportation projects, a minister said Tuesday.

The move, which will take effect from 2020, will see a tax of 1.5 euros imposed on economy-class tickets on internal flights and those within <a href="http://wionews.com/world/europe-needs-to-find-candidate-to-head-imf-france-233585">Europe</a>, with the highest tariff applied to business-class travellers flying outside the bloc, Transport Minister Elisabeth Borne said.

The new measure is expected to bring in some 182 million euros a year which will be invested in greener transport infrastructures, notably rail, she said.&nbsp;

It will only be applied on outgoing flights and not those flying into the country, Borne added.&nbsp;

A similar tax was introduced in <a href="http://wionews.com/entertainment/us-rapper-aap-rockys-europe-tour-in-jeopardy-after-sweden-arrest-233121">Sweden</a> in April 2018, which imposed an added charge of up to 40 euros on every ticket in a bid to lessen the impact of air travel on the climate.

The French government is to impose a tax of up to 18 euros ($20) on plane tickets for all flights from airports in France to fund less-polluting transportation projects, a minister said Tuesday.

The French government is to impose a tax of up to 18 euros ($20) on plane tickets for all flights from airports in France to fund less-polluting transportation projects, a minister said Tuesday. The move, which will take effect from 2020, will see a tax of 1.5 euros imposed on economy-class tickets on internal flights and those within Europe, with the highest tariff applied to business-class travellers flying outside the bloc, Transport Minister Elisabeth Borne said. The new measure is expected to bring in some 182 million euros a year which will be invested in greener transport infrastructures, notably rail, she said. It will only be applied on outgoing flights and not those flying into the country, Borne added. A similar tax was introduced in Sweden in April 2018, which imposed an added charge of up to 40 euros on every ticket in a bid to lessen the impact of air travel on the climate.

France to impose green tax on plane tickets

New York state on Monday cleared the way for Democrats in the US Congress to obtain <a href="https://www.wionews.com/world/us-president-donald-trump-seeks-to-override-supreme-court-ruling-on-census-233448">President Donald Trump's state tax</a> returns, raising the possibility of fresh avenues of inquiry for lawmakers investigating his finances.

Governor Andrew Cuomo signed an amendment to a tax law that would require the commissioner of the Department of Taxation and Finance to share state income tax returns and reports when certain congressional committees request them.

"This bill gives Congress the ability to fulfil its constitutional responsibilities, strengthen our democratic system and ensure that no one is above the law," said Cuomo, a Democrat.&nbsp;

Trump's attorney Jay Sekulow responded to the law by calling it an example of "more presidential harassment."

"We will respond to this as appropriate," he said in a statement.

The law, effective immediately, opens a new avenue for the Democratic majority in Congress to investigate <a href="https://www.wionews.com/world/at-rally-trump-says-russia-probe-backers-tried-to-steal-power-illegally-206396">Trump's business affairs</a>.

New York's state legislature has had a Democratic majority in both the House and the Senate since Democrats won control of the Senate in 2018.

US congressional Democrats have pushed for the release of Trump's tax returns since he took office.

In May, Treasury Secretary Steven Mnuchin denied the House Ways and Means committee's request that the Internal Revenue Service turn over six years of Trump's federal tax returns, citing his belief that the committee did not have a legitimate legislative reason for the request.

The committee sued Mnuchin and the Treasury Department last week to appeal to Mnuchin's decision.

New York state on Monday cleared the way for Democrats in the US Congress to obtain President Donald Trump's state tax returns, raising the possibility of fresh avenues of inquiry for lawmakers investigating his finances.

New York state on Monday cleared the way for Democrats in the US Congress to obtain President Donald Trump's state tax returns, raising the possibility of fresh avenues of inquiry for lawmakers investigating his finances. Governor Andrew Cuomo signed an amendment to a tax law that would require the commissioner of the Department of Taxation and Finance to share state income tax returns and reports when certain congressional committees request them. "This bill gives Congress the ability to fulfil its constitutional responsibilities, strengthen our democratic system and ensure that no one is above the law," said Cuomo, a Democrat. Trump's attorney Jay Sekulow responded to the law by calling it an example of "more presidential harassment." "We will respond to this as appropriate," he said in a statement. The law, effective immediately, opens a new avenue for the Democratic majority in Congress to investigate Trump's business affairs. New York's state legislature has had a Democratic majority in both the House and the Senate since Democrats won control of the Senate in 2018. US congressional Democrats have pushed for the release of Trump's tax returns since he took office. In May, Treasury Secretary Steven Mnuchin denied the House Ways and Means committee's request that the Internal Revenue Service turn over six years of Trump's federal tax returns, citing his belief that the committee did not have a legitimate legislative reason for the request. The committee sued Mnuchin and the Treasury Department last week to appeal to Mnuchin's decision.

New York clears way for release of Donald Trump's state tax returns

<a href="https://www.wionews.com/business-economy/budget-2019-finance-minister-nirmala-sitharaman-to-present-maiden-budget-today-at-11-am-233079">Union Finance Minister Nirmala Sitharaman</a> will be unveiling Modi-government 2.0's first Union Budget on Friday. As the finance minister, this will be Sitharaman's maiden budget.&nbsp;

Here's taking a quick look at what all is likely to announced as the finance minister presents the government's first full-year budget today.&nbsp;

Relief to tax payers

Experts suggest Sitharaman is likely to pronounce relief to the common tax payers today by raising the personal income tax threshold for certain categories.

In the Interim Budget, the government had proposed a rebate on all payable taxes if an individual's taxable income is up to Rs 5 lakh per annum. But it kept the basic exemption levels unchanged.&nbsp;

Sources said that the Budget 2019-20 will take the sops announced in the Interim Budget further by raising the basic tax exemption limit for an individual income tax payee to Rs 3 lakh from Rs 2.50 lakh at present to cover for the inflationary impact over the years.

Watch:&nbsp;Key Expectations From Indian Budget 2019-20

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/budget-2019-key-expectations-from-indian-budget-2019-20-233113/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Push to agriculture, infrastructure, healthcare spending

It is also anticipated that spending on agriculture, healthcare, social sectors and infrastructure would get a push.&nbsp;

The budget is likely to feature schemes for ushering in a "blue revolution". The BJP's promise of allocation of Rs 10,000 crore for providing infrastructure like storage and marketing for small fishermen is likely to be fulfilled.&nbsp;

Pradhan Mantri Fasal Biima Yojana (Prime Minister's Crop Insurance) scheme will be improved. Proposals with a focus on micro-irrigation and new agriculture warehouses along national highways are also on the cards, said sources.

Slew of measures

It is widely expected that the budget will have a slew of measures which will support the economic growth both in the short-term and the long-term. It may be noted that the economic expansion during last fiscal has slowed down to a five-year low of 6.8 per cent, with growth for the running fiscal (2019-20) pegged down substantially by the Reserve Bank of India.

New industrial policy&nbsp;

Sitharaman is expected to make public the new industrial policy today which primarily centres around the "Make in India" theme and was first envisaged in Modi's first term.&nbsp;

Disinvestment, RBI dividend

Today's budget may feature the government's plan to raise the funds required to boost the economy through welfare measures. The disinvestment target is likely to be raised whereas the Reserve Bank of India may be nudged for a higher dividend. The 5G spectrum auction, due in October, is also likely to find a mention today.&nbsp;

Air India woes

As per reports, cash-strapped, privatisation-bound Air India may not get financial support from the budget today. &nbsp;

Sitharaman, on Thursday, tabled the <a href="https://www.wionews.com/business-economy/india-needs-to-sustain-8-gdp-growth-to-become-5-trillion-economy-in-2025-economic-survey-232945">Economic Survey</a>&nbsp;in Rajya Sabha which said India needed to sustain a GDP growth rate of 8 per cent in order to become a $5 trillion economy by 2025.

The economic survey has predicted seven per cent Gross Domestic Product (GDP) growth in FY20 on stable macro-economic conditions.

The survey said oil prices were expected to decline in 2019-20.

According to the survey, the general fiscal deficit is seen at 5.8 per cent in FY19 against 6.4 per cent in FY18. "The government stood by the fiscal consolidation path," the report said.

&nbsp;

 
&nbsp;

Union Finance Minister Nirmala Sitharaman will be unveiling Modi-government 2.0's first Union Budget on Friday. As the finance minister, this will be Sitharaman's maiden budget.

Union Finance Minister Nirmala Sitharaman will be unveiling Modi-government 2.0's first Union Budget on Friday. As the finance minister, this will be Sitharaman's maiden budget. Here's taking a quick look at what all is likely to announced as the finance minister presents the government's first full-year budget today. Relief to tax payers Experts suggest Sitharaman is likely to pronounce relief to the common tax payers today by raising the personal income tax threshold for certain categories. In the Interim Budget, the government had proposed a rebate on all payable taxes if an individual's taxable income is up to Rs 5 lakh per annum. But it kept the basic exemption levels unchanged. Sources said that the Budget 2019-20 will take the sops announced in the Interim Budget further by raising the basic tax exemption limit for an individual income tax payee to Rs 3 lakh from Rs 2.50 lakh at present to cover for the inflationary impact over the years. Watch: Key Expectations From Indian Budget 2019-20 Push to agriculture, infrastructure, healthcare spending It is also anticipated that spending on agriculture, healthcare, social sectors and infrastructure would get a push. The budget is likely to feature schemes for ushering in a "blue revolution". The BJP's promise of allocation of Rs 10,000 crore for providing infrastructure like storage and marketing for small fishermen is likely to be fulfilled. Pradhan Mantri Fasal Biima Yojana (Prime Minister's Crop Insurance) scheme will be improved. Proposals with a focus on micro-irrigation and new agriculture warehouses along national highways are also on the cards, said sources. Slew of measures It is widely expected that the budget will have a slew of measures which will support the economic growth both in the short-term and the long-term. It may be noted that the economic expansion during last fiscal has slowed down to a five-year low of 6.8 per cent, with growth for the running fiscal (2019-20) pegged down substantially by the Reserve Bank of India. New industrial policy Sitharaman is expected to make public the new industrial policy today which primarily centres around the "Make in India" theme and was first envisaged in Modi's first term. Disinvestment, RBI dividend Today's budget may feature the government's plan to raise the funds required to boost the economy through welfare measures. The disinvestment target is likely to be raised whereas the Reserve Bank of India may be nudged for a higher dividend. The 5G spectrum auction, due in October, is also likely to find a mention today. Air India woes As per reports, cash-strapped, privatisation-bound Air India may not get financial support from the budget today. Sitharaman, on Thursday, tabled the Economic Survey in Rajya Sabha which said India needed to sustain a GDP growth rate of 8 per cent in order to become a $5 trillion economy by 2025. The economic survey has predicted seven per cent Gross Domestic Product (GDP) growth in FY20 on stable macro-economic conditions. The survey said oil prices were expected to decline in 2019-20. According to the survey, the general fiscal deficit is seen at 5.8 per cent in FY19 against 6.4 per cent in FY18. "The government stood by the fiscal consolidation path," the report said.

Budget 2019: Slew of measures to boost economy, relief to tax payers likely in Sitharaman's maiden budget today

<a href="https://www.wionews.com/world/fear-of-change-negative-politics-wins-australia-election-219890">Australia's re-elected conservative government</a> might not meet a June deadline for tax breaks that policymakers had been counting on to give the slowing economy a much-needed boost, after Prime Minister Scott Morrison said parliament may be unable to convene in time.

The Reserve Bank of Australia (RBA) in particular would have welcomed the fillip to consumer demand as it wrestles with whether to cut interest rates from already record lows.

If the tax breaks are delayed, maybe for months or even a full year, it would add to the case for at least one cut in the current 1.5% cash rate, perhaps as early as next month.

The tax rebates were a much-touted pledge from Morrison during the election campaign and may have played a part in his surprise defeat of the opposition Labor party.

Morrison's Liberal-National coalition had promised tax rebates to around 10 million middle- and low-income earners from July 1 worth up to A$1,080 per person.

It was to be paid once they lodged their tax returns for the financial year to the end of June.

However, to take effect the tax package has to be passed by lawmakers by the end of June and parliament cannot be recalled until the official writs from Saturday's election are returned.

That turns out to be an extensive process of vote checking which might not finish until late June, giving little time to pass the laws.

"We obviously have to wait for the writs to be returned and there's a formal process for that," Morrison told Sky News. "At the moment, that's not looking until very late into the back end of June."

"So, that really does make very narrow that opportunity to do it before 30 June," he added. "I think that's very unlikely, with the advice I've received."

Any delay to the rebates would be badly timed for the economy given that annual growth in the March quarter likely slowed to its lowest since the global financial crisis at under 2%.

The first-quarter growth numbers will be released on June 5, a day after the RBA holds its next policy meeting where a cut in rates is certain to be discussed.

Economists had estimated the tax breaks would inject about A$7.5 billion ($5.18 billion) into the economy over 2019/20, lessening the need for a reduction in interest rates.

Australia's re-elected conservative government might not meet a June deadline for tax breaks that policymakers had been counting on to give the slowing economy a much-needed boost, after Prime Minister Scott Morrison said parliament may be unable to convene in time.

Australia's re-elected conservative government might not meet a June deadline for tax breaks that policymakers had been counting on to give the slowing economy a much-needed boost, after Prime Minister Scott Morrison said parliament may be unable to convene in time. The Reserve Bank of Australia (RBA) in particular would have welcomed the fillip to consumer demand as it wrestles with whether to cut interest rates from already record lows. If the tax breaks are delayed, maybe for months or even a full year, it would add to the case for at least one cut in the current 1.5% cash rate, perhaps as early as next month. The tax rebates were a much-touted pledge from Morrison during the election campaign and may have played a part in his surprise defeat of the opposition Labor party. Morrison's Liberal-National coalition had promised tax rebates to around 10 million middle- and low-income earners from July 1 worth up to A$1,080 per person. It was to be paid once they lodged their tax returns for the financial year to the end of June. However, to take effect the tax package has to be passed by lawmakers by the end of June and parliament cannot be recalled until the official writs from Saturday's election are returned. That turns out to be an extensive process of vote checking which might not finish until late June, giving little time to pass the laws. "We obviously have to wait for the writs to be returned and there's a formal process for that," Morrison told Sky News. "At the moment, that's not looking until very late into the back end of June." "So, that really does make very narrow that opportunity to do it before 30 June," he added. "I think that's very unlikely, with the advice I've received." Any delay to the rebates would be badly timed for the economy given that annual growth in the March quarter likely slowed to its lowest since the global financial crisis at under 2%. The first-quarter growth numbers will be released on June 5, a day after the RBA holds its next policy meeting where a cut in rates is certain to be discussed. Economists had estimated the tax breaks would inject about A$7.5 billion ($5.18 billion) into the economy over 2019/20, lessening the need for a reduction in interest rates.

Australia's re-elected government may miss tax break deadline

US President Donald Trump`s businesses lost a total of more than $1 billion from 1985 to 1994, according to the New York Times, which said it obtained printouts from Trump`s official Internal Revenue Service tax transcripts.

The newspaper said Trump posted losses in excess of $250 million in both 1990 and 1991, which appeared to be more than double any other individual US&nbsp;taxpayer in an annual IRS sampling of high-income earners.

Trump lost so much money that he was able to avoid paying income taxes for eight of the 10 years, the Times said.

Over the 10 years, Trump`s core businesses, including casinos, hotels and apartment buildings, lost $1.17 billion, according to the newspaper.

The White House did not immediately respond to a request for comment.

The Times quoted a lawyer for the president, Charles Harder, as saying the tax information was "highly inaccurate."

Trump, a real estate magnate who turned over the running of his businesses to his sons after his election in 2016, touted his business acumen and negotiating skills on the campaign trail.&nbsp;

Trump broke with a decades-old precedent by refusing to release his tax returns as a presidential candidate in 2016 or since being elected, saying he could not do so while his taxes were being audited.

On Monday, US Treasury Secretary Steven Mnuchin refused a request by the Democratic chairman of the House of Representatives Ways and Means Committee for Trump`s tax returns.

Democrats want Trump`s tax data as part of their investigations of possible conflicts of interest posed by his continued ownership of extensive business interests, even as he serves as president.&nbsp;

US President Donald Trump`s businesses lost a total of more than $1 billion from 1985 to 1994, according to the New York Times, which said it obtained printouts from Trump`s official Internal Revenue Service tax transcripts.

US President Donald Trump`s businesses lost a total of more than $1 billion from 1985 to 1994, according to the New York Times, which said it obtained printouts from Trump`s official Internal Revenue Service tax transcripts. The newspaper said Trump posted losses in excess of $250 million in both 1990 and 1991, which appeared to be more than double any other individual US taxpayer in an annual IRS sampling of high-income earners. Trump lost so much money that he was able to avoid paying income taxes for eight of the 10 years, the Times said. Over the 10 years, Trump`s core businesses, including casinos, hotels and apartment buildings, lost $1.17 billion, according to the newspaper. The White House did not immediately respond to a request for comment. The Times quoted a lawyer for the president, Charles Harder, as saying the tax information was "highly inaccurate." Trump, a real estate magnate who turned over the running of his businesses to his sons after his election in 2016, touted his business acumen and negotiating skills on the campaign trail. Trump broke with a decades-old precedent by refusing to release his tax returns as a presidential candidate in 2016 or since being elected, saying he could not do so while his taxes were being audited. On Monday, US Treasury Secretary Steven Mnuchin refused a request by the Democratic chairman of the House of Representatives Ways and Means Committee for Trump`s tax returns. Democrats want Trump`s tax data as part of their investigations of possible conflicts of interest posed by his continued ownership of extensive business interests, even as he serves as president.

Trump tax returns from 1985 to 1994 show $1 billion in losses: Report

Jyotiraditya Scindia says, ''Lower tax is best way to increase revenue''

The French government must implement bold tax cuts, the prime minister said Monday, after a mass public consultation called in the wake of "<a href="https://www.google.com/url?q=https://www.wionews.com/world/hundreds-march-in-paris-as-childminders-join-yellow-vest-protests-202223&amp;sa=U&amp;ved=0ahUKEwiUxc6qwsDhAhW47XMBHVITBgIQFggFMAA&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw2sZ8uXhzJM61w-Tg3WVWqc">yellow vest</a>" protests that shook President <a href="https://www.google.com/url?q=https://www.wionews.com/world/clashes-erupt-in-paris-as-yellow-vests-protest-at-unrepentant-macron-188487&amp;sa=U&amp;ved=0ahUKEwjtu-6TwsDhAhXD8HMBHajYAXgQFggLMAI&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw3uwWs0KJhF-6ruIA9BucPg">Emmanuel Macron</a>.

Giving the first conclusions of a "Great National Debate" which was launched in January in response to the protests, Prime Minister Edouard Philippe said French citizens had expressed "an enormous exasperation" over the heavy tax burden.

"The debates show us very clearly which way to go. We need to lower taxes, and lower them more quickly," he told an audience in Paris.

The "yellow vest" protests, so called for the fluorescent vests worn by demonstrators, began in mid-November initially over fuel taxes before morphing into a nation-wide revolt against Macron.

The 41-year-old centrist came to power in May 2017 promising pro-business reforms and he has focused his tax cuts so far on companies and high-earners in a bid to increase investment and lower unemployment.

The president is expected to announce new policies in a major speech planned in the middle of the month.

The "Great National Debate" involved 10,000 meetings in community halls around the country, around two million online contributions and saw Macron join local events for nearly 100 hours in total.

As well as lower taxes, Philippe said that several other themes which had emerged during the consultation, which was designed to draw the anger out of the "yellow vest" protest movement.

Citizens wanted a more direct say in the running of the country -- so-called "participatory democracy" -- and action to combat climate change.

"We have reached a point where hesitating would be worse than an error, it would be an offence," Philippe added. "The need for change is so radical that any conservatism, any feebleness would be unforgivable in my view."

France has the highest taxation rate in the developed world, according to the Paris-based Organisation for Economic Cooperation and Development.

The French government must implement bold tax cuts, the prime minister said Monday, after a mass public consultation called in the wake of "yellow vest" protests that shook President Emmanuel Macron.

The French government must implement bold tax cuts, the prime minister said Monday, after a mass public consultation called in the wake of "yellow vest" protests that shook President Emmanuel Macron. Giving the first conclusions of a "Great National Debate" which was launched in January in response to the protests, Prime Minister Edouard Philippe said French citizens had expressed "an enormous exasperation" over the heavy tax burden. "The debates show us very clearly which way to go. We need to lower taxes, and lower them more quickly," he told an audience in Paris. The "yellow vest" protests, so called for the fluorescent vests worn by demonstrators, began in mid-November initially over fuel taxes before morphing into a nation-wide revolt against Macron. The 41-year-old centrist came to power in May 2017 promising pro-business reforms and he has focused his tax cuts so far on companies and high-earners in a bid to increase investment and lower unemployment. The president is expected to announce new policies in a major speech planned in the middle of the month. The "Great National Debate" involved 10,000 meetings in community halls around the country, around two million online contributions and saw Macron join local events for nearly 100 hours in total. As well as lower taxes, Philippe said that several other themes which had emerged during the consultation, which was designed to draw the anger out of the "yellow vest" protest movement. Citizens wanted a more direct say in the running of the country -- so-called "participatory democracy" -- and action to combat climate change. "We have reached a point where hesitating would be worse than an error, it would be an offence," Philippe added. "The need for change is so radical that any conservatism, any feebleness would be unforgivable in my view." France has the highest taxation rate in the developed world, according to the Paris-based Organisation for Economic Cooperation and Development.

France needs tax cuts in response to 'yellow vests': PM Edouard Philippe

The Income-Tax Department has attached a house of hardline Kashmiri separatist Syed Ali Shah Geelani located in Delhi in connection with an over Rs 3.62 crore tax evasion case against him.

The flat is located in south Delhi's Malviya Nagar area and the Tax Recovery Officer (TRO) of the department has sealed the house for allegedly "failing" to pay Rs 3,62,62,160 income tax for assessment years 1996-97 to 2001-02, as per an order accessed by PTI.

The department has undertaken the action under section 222 of the I-T Act (assessee deemed in default of tax payment) and it has "prohibited and restrained" the Hurriyat Conference leader from transferring the asset.

The TRO is an enforcement action taking arm of the tax department and it deals with cases of wilful defaulters. The authority is empowered to attach an asset and subsequently auction it to realise the tax dues.

The Enforcement Directorate (ED), last month, had levied a penalty of Rs 14.40 lakh on Geelani in a 17-year-old case of illegal possession of USD 10,000 in alleged contravention of the foreign exchange law, officials said Friday.

The Income-Tax Department has attached a house of hardline Kashmiri separatist Syed Ali Shah Geelani located in Delhi in connection with an over Rs 3.62 crore tax evasion case against him.

The Income-Tax Department has attached a house of hardline Kashmiri separatist Syed Ali Shah Geelani located in Delhi in connection with an over Rs 3.62 crore tax evasion case against him. The flat is located in south Delhi's Malviya Nagar area and the Tax Recovery Officer (TRO) of the department has sealed the house for allegedly "failing" to pay Rs 3,62,62,160 income tax for assessment years 1996-97 to 2001-02, as per an order accessed by PTI. The department has undertaken the action under section 222 of the I-T Act (assessee deemed in default of tax payment) and it has "prohibited and restrained" the Hurriyat Conference leader from transferring the asset. The TRO is an enforcement action taking arm of the tax department and it deals with cases of wilful defaulters. The authority is empowered to attach an asset and subsequently auction it to realise the tax dues. The Enforcement Directorate (ED), last month, had levied a penalty of Rs 14.40 lakh on Geelani in a 17-year-old case of illegal possession of USD 10,000 in alleged contravention of the foreign exchange law, officials said Friday.

I-T dept attaches Geelani's Delhi house on wilful tax evasion charges

Various initiatives in the interim budget such as tax rebates for the middle class will benefit the travel and tourism sector, industry players said.&nbsp;

"On the whole, the interim budget is promising for the travel industry, complemented by further tax rebate for the middle-income group more savings, more travel," said FCM Travel Solutions MD Rakshit Desai.

Expressing similar views, EaseMyTrip Co-Founder &amp; CEO Nishant Pittie said the budget announced promising initiatives that will definitely augur well for the Indian travel and tourism industry.&nbsp;

The focus on tax rebates for the middle class has brought a sigh of relief for them and now they will be able to spend more on vacations.

The government has increased the funds for the tourism ministry to Rs 2,189.22 crore for 2019-20.

"The exemption of income tax for middle and lower class segment of the society will increase the disposable income, which in line will trigger demand across consumer focused industries," Royal Orchid Hotels MD Chander Baljee said.

Highlighting that tax exemptions will provide a boost to the sector, Cox &amp; Kings Group CEO Peter Kerkar said the move will lead to additional savings thereby leading to more discretionary spends and travel and tourism can be one of the beneficiaries.

Thomas Cook India ED and CEO Mahesh Iyer said: "While the interim budget 2019 has seen no direct mention of the travel and tourism sector, focus on tax breaks for the middle class will result in increased disposable income and a cascading boost to consumption- offering the sector an opportunity for increased travel and tourism spends."&nbsp;

Sambhav Rakyan, Head of Talent and Rewards Consulting, India at Willis Towers Watson said measures on taxation front will have a positive impact on disposable income and savings, which in turn can increase domestic expenditure and enhance the sense of security amongst salaried class.

L Badri Narayanan, Partner, Lakshmikumaran &amp; Sridharan attorneys said the tax exemptions will go a long way in providing relief. At the same time, the tax mop-up may not be affected too severely as the total contribution as percentage of overall tax may be low.

Co-Founder and Co-CEO of Drip Capital, Pushkar Mukewar said the finance minister has announced a few steps that could prove beneficial to MSMEs, including lower interest rates and tax changes.

Various initiatives in the interim budget such as tax rebates for the middle class will benefit the travel and tourism sector, industry players said. "On the whole, the interim budget is promising for the travel industry, complemented by further tax rebate for the middle-income group more savings, more travel," said FCM Travel Solutions MD Rakshit Desai.

Various initiatives in the interim budget such as tax rebates for the middle class will benefit the travel and tourism sector, industry players said. "On the whole, the interim budget is promising for the travel industry, complemented by further tax rebate for the middle-income group more savings, more travel," said FCM Travel Solutions MD Rakshit Desai. Expressing similar views, EaseMyTrip Co-Founder & CEO Nishant Pittie said the budget announced promising initiatives that will definitely augur well for the Indian travel and tourism industry. The focus on tax rebates for the middle class has brought a sigh of relief for them and now they will be able to spend more on vacations. The government has increased the funds for the tourism ministry to Rs 2,189.22 crore for 2019-20. "The exemption of income tax for middle and lower class segment of the society will increase the disposable income, which in line will trigger demand across consumer focused industries," Royal Orchid Hotels MD Chander Baljee said. Highlighting that tax exemptions will provide a boost to the sector, Cox & Kings Group CEO Peter Kerkar said the move will lead to additional savings thereby leading to more discretionary spends and travel and tourism can be one of the beneficiaries. Thomas Cook India ED and CEO Mahesh Iyer said: "While the interim budget 2019 has seen no direct mention of the travel and tourism sector, focus on tax breaks for the middle class will result in increased disposable income and a cascading boost to consumption- offering the sector an opportunity for increased travel and tourism spends." Sambhav Rakyan, Head of Talent and Rewards Consulting, India at Willis Towers Watson said measures on taxation front will have a positive impact on disposable income and savings, which in turn can increase domestic expenditure and enhance the sense of security amongst salaried class. L Badri Narayanan, Partner, Lakshmikumaran & Sridharan attorneys said the tax exemptions will go a long way in providing relief. At the same time, the tax mop-up may not be affected too severely as the total contribution as percentage of overall tax may be low. Co-Founder and Co-CEO of Drip Capital, Pushkar Mukewar said the finance minister has announced a few steps that could prove beneficial to MSMEs, including lower interest rates and tax changes.

Tax rebates for middle class to benefit travel, tourism sector: Industry

One of the world's favourite holiday destinations Bali makes a clean-up move.&nbsp;

Bali proposed a tax of up to 10 dollars on visitors to remove tourism-generated trash.

The Bali authorities are working on a bylaw which will make tourists accountable for environmental and cultural preservation.

The revenue collected from the 10 dollar tax will be used to fund programmes for preservation. The levy is still under discussion.

The authorities are deliberating on how the tax should be collected, whether it should be included in the airfare, or if it should be collected at separate airport counters.

But, the policy is expected to be imposed only on foreign tourists.

This plan comes at a time when the province is fighting against the growing volume of plastic waste on its beaches.

Bali is particularly popular among Chinese and Australian holidaymakers -- it welcomed up to six million visitors in 2018.

An environment agency recorded that the island produced 38-hundred tonnes of waste every day -- out of this, only 60 per cent ends up in the landfill.

This is not Bali's first step towards environmental conservation. Free plastic bags in supermarkets and grocery stores have been banned in Bali's capital since the beginning of this year.

Other parts of Indonesia are also struggling with the problem of excessive plastic waste. The Pisang Batu river in west java is one of the country's most polluted rivers. Hundreds of tonnes of rubbish collect there every monsoon.

One of the world's favourite holiday destinations Bali makes a clean-up move. Bali proposed a tax of up to 10 dollars on visitors to remove tourism-generated trash.

One of the world's favourite holiday destinations Bali makes a clean-up move. Bali proposed a tax of up to 10 dollars on visitors to remove tourism-generated trash. The Bali authorities are working on a bylaw which will make tourists accountable for environmental and cultural preservation. The revenue collected from the 10 dollar tax will be used to fund programmes for preservation. The levy is still under discussion. The authorities are deliberating on how the tax should be collected, whether it should be included in the airfare, or if it should be collected at separate airport counters. But, the policy is expected to be imposed only on foreign tourists. This plan comes at a time when the province is fighting against the growing volume of plastic waste on its beaches. Bali is particularly popular among Chinese and Australian holidaymakers -- it welcomed up to six million visitors in 2018. An environment agency recorded that the island produced 38-hundred tonnes of waste every day -- out of this, only 60 per cent ends up in the landfill. This is not Bali's first step towards environmental conservation. Free plastic bags in supermarkets and grocery stores have been banned in Bali's capital since the beginning of this year. Other parts of Indonesia are also struggling with the problem of excessive plastic waste. The Pisang Batu river in west java is one of the country's most polluted rivers. Hundreds of tonnes of rubbish collect there every monsoon.

Bali thinking of taxing all foreign tourists

<a href="http://www.wionews.com/india-news/23-goods-and-services-to-get-cheaper-from-january-1-as-reduced-gst-rates-kick-in-187607">GST collection</a> dropped to Rs 94,726 crore in December 2018, lower than Rs 97,637 crore collected in the previous month.&nbsp;

The total number of sales returns or GSTR-3B filed till December 30, 2018, is 72.44 lakh, the finance ministry said in a statement.

Compensation released to states for August-September stood at Rs 11,922 crore.&nbsp;

Of the Rs 94,726 crore collected, Central GST (CGST)collection is Rs 16,442 crore, State GST (SGST) is Rs 22,459 crore, Integrated GST (IGST) is Rs 47,936 crore and Cess is Rs 7,888 crore.

The government has settled Rs 18,409 crore to CGST and Rs 14,793 crore to SGST from IGST as regular settlement, it said.&nbsp;

The total revenue earned by the central government and state governments after regular settlement in December is Rs 43,851 crore for CGST and Rs 46,252 crore for SGST, the ministry added.&nbsp;

The Goods and Services Tax (GST) collection stood at Rs 1.03 lakh crore in April, Rs 94,016 crore in May, Rs 95,610 crore in June, Rs 96,483 crore in July, Rs 93,960 crore in August, Rs 94,442 crore in September, Rs 1,00,710 crore in October and Rs 97,637 crore in November.&nbsp;

The total number of sales returns or GSTR-3B filed till December 30, 2018, is 72.44 lakh, the finance ministry said in a statement.

GST collection dropped to Rs 94,726 crore in December 2018, lower than Rs 97,637 crore collected in the previous month. The total number of sales returns or GSTR-3B filed till December 30, 2018, is 72.44 lakh, the finance ministry said in a statement. Compensation released to states for August-September stood at Rs 11,922 crore. Of the Rs 94,726 crore collected, Central GST (CGST)collection is Rs 16,442 crore, State GST (SGST) is Rs 22,459 crore, Integrated GST (IGST) is Rs 47,936 crore and Cess is Rs 7,888 crore. The government has settled Rs 18,409 crore to CGST and Rs 14,793 crore to SGST from IGST as regular settlement, it said. The total revenue earned by the central government and state governments after regular settlement in December is Rs 43,851 crore for CGST and Rs 46,252 crore for SGST, the ministry added. The Goods and Services Tax (GST) collection stood at Rs 1.03 lakh crore in April, Rs 94,016 crore in May, Rs 95,610 crore in June, Rs 96,483 crore in July, Rs 93,960 crore in August, Rs 94,442 crore in September, Rs 1,00,710 crore in October and Rs 97,637 crore in November.

GST collection drops to Rs 94,726 crore in December

India has cut import taxes on crude and refined palm oil from Southeast Asian (ASEAN) countries after a request from suppliers, a government notification said.

The reduction will lead to higher imports of palm oil by the world's biggest edible oil buyer in coming months as it would narrow the difference between the tropical vegetable oil and competitors such as soy oil and sunflower oil.

The duty on crude palm oil was lowered to 40 per cent from 44 per cent, while a tax on the refined variety was cut to 50 per cent from 54 per cent, according to the notification issued late on Monday. The cuts took effect on Tuesday.

Malaysian shipments of refined palm oil will be taxed at 45 per cent compared with 54 per cent earlier, the government said in a separate notice.

In March 2018, India raised the import tax on crude palm oil to 44 per cent from 30 per cent and lifted the tax on refined palm oil to 54 per cent from 40 per cent.

Palm oil has been more competitive due to the duty reduction and this will lead to higher imports from January onwards, said Sandeep Bajoria, chief executive of the Sunvin Group, a Mumbai-based vegetable oil importer.

India primarily imports palm oil from Indonesia and Malaysia and soy oil from Argentina and Brazil. It also buys small volumes of sunflower oil from Ukraine and canola oil from Canada.

Its palm oil imports dropped 6.4 per cent from a year ago to 8.7 million tonnes in the 2017/18 marketing year ended in October, according to Solvent Extractors' Association (SEA), a Mumbai-based trade body.

Indonesia and Malaysia, the top two palm oil producers, were seeking a reduction in the import tax by New Delhi as inventories were rising in both countries due to higher output.

India's palm oil imports could have fallen in December but will jump this month as some importers had delayed shipments in anticipation of tax cuts, said B.V. Mehta, executive director of the SEA.

The effective duty difference between crude and refined palm oil has narrowed to 5.5 per cent from 11 per cent for shipments from Malaysia, which could lead to higher imports of refined palm oil, Mehta said.

"This is a death knell for the domestic refining industry and will halt the expansion of palm plantations in the country," he said.

India relies on imports for 70 per cent of its edible oil consumption, up from 44 per cent in 2001/02.

"Traditionally, Indonesia corners the bulk of India's palm oil market. The duty reduction will now allow Malaysia to raise its share," said a Mumbai-based dealer with a global trading firm.

India's palm oil imports could have fallen in December but will jump this month as some importers had delayed shipments in anticipation of tax cuts, said B.V. Mehta, executive director of the Solvent Extractors' Association (SEA).

India has cut import taxes on crude and refined palm oil from Southeast Asian (ASEAN) countries after a request from suppliers, a government notification said. The reduction will lead to higher imports of palm oil by the world's biggest edible oil buyer in coming months as it would narrow the difference between the tropical vegetable oil and competitors such as soy oil and sunflower oil. The duty on crude palm oil was lowered to 40 per cent from 44 per cent, while a tax on the refined variety was cut to 50 per cent from 54 per cent, according to the notification issued late on Monday. The cuts took effect on Tuesday. Malaysian shipments of refined palm oil will be taxed at 45 per cent compared with 54 per cent earlier, the government said in a separate notice. In March 2018, India raised the import tax on crude palm oil to 44 per cent from 30 per cent and lifted the tax on refined palm oil to 54 per cent from 40 per cent. Palm oil has been more competitive due to the duty reduction and this will lead to higher imports from January onwards, said Sandeep Bajoria, chief executive of the Sunvin Group, a Mumbai-based vegetable oil importer. India primarily imports palm oil from Indonesia and Malaysia and soy oil from Argentina and Brazil. It also buys small volumes of sunflower oil from Ukraine and canola oil from Canada. Its palm oil imports dropped 6.4 per cent from a year ago to 8.7 million tonnes in the 2017/18 marketing year ended in October, according to Solvent Extractors' Association (SEA), a Mumbai-based trade body. Indonesia and Malaysia, the top two palm oil producers, were seeking a reduction in the import tax by New Delhi as inventories were rising in both countries due to higher output. India's palm oil imports could have fallen in December but will jump this month as some importers had delayed shipments in anticipation of tax cuts, said B.V. Mehta, executive director of the SEA. The effective duty difference between crude and refined palm oil has narrowed to 5.5 per cent from 11 per cent for shipments from Malaysia, which could lead to higher imports of refined palm oil, Mehta said. "This is a death knell for the domestic refining industry and will halt the expansion of palm plantations in the country," he said. India relies on imports for 70 per cent of its edible oil consumption, up from 44 per cent in 2001/02. "Traditionally, Indonesia corners the bulk of India's palm oil market. The duty reduction will now allow Malaysia to raise its share," said a Mumbai-based dealer with a global trading firm.

India cuts tax on palm oil imports; Malaysia to gain most

Bihar Deputy Chief Minister Sushil Kumar Modi Friday said the state government has collected around Rs 15,466 crore in taxes from 2017 to November 2018, which is 38 per cent higher compared from last fiscal year for the same period.

Speaking at Aranya Bhawan during an inauguration of training programme meant for newly recruited officers of Bihar Finance Service, Sushil said: "The revenue collection for the financial year 2018-19 is Rs 27,000 crore and so far, we have achieved a target of Rs 15,466 crore till November, which is an increase of 38 per cent as compared to last fiscal year for the same period," he said.

Stressing that the strength of tax-payers has seen a remarkable growth of 3.87 lakh against 1.69 lakh registered during VAT regime, Sushil stated that out of 3.87 lakh, 2.18 lakh are new tax-payers.

"In order to provide relief to small taxpayers, the GST council may soon enhance the limit of Rs 20 lakh turnover to Rs 75 lakh under composition scheme. We are also planning to bring composition scheme for service providers who have the turnover of Rs 50 lakh and reduce tax on goods in the construction sector from existing 12 and 18 per cent to 5 per cent," he added.

Talking about the taxes levied on auto and cement sectors, he asserted that the GST Council is considering a plan to reduce the 28 per cent tax rate on cement and auto parts as the average monthly collection of GST has witnessed an increase in tax collections, which was earlier set at Rs 89,700 crore (2017-18) and now kept at Rs 97,100 crore for 2018-19.

Praising Prime Minister Modi for implementing GST in the country, Sushil said that it is the biggest indirect tax reforms after independence.

Before the implementation of GST, around 17 different types of taxes were levied which have been now included in the GST.

GST has put an end to the check-posts system across the country and it has turned the concept of "one nation, one tax, one market" into reality.

He further said that several parts of the world saw a surge in prices after the introduction of GST, however, India is the only country, which witnessed fall in prices of various products after the implementation of GST.&nbsp;

Bihar Deputy Chief Minister Sushil Kumar Modi Friday said the state government has collected around Rs 15,466 crore in taxes from 2017 to November 2018, which is 38 per cent higher compared from last fiscal year for the same period.

Bihar Deputy Chief Minister Sushil Kumar Modi Friday said the state government has collected around Rs 15,466 crore in taxes from 2017 to November 2018, which is 38 per cent higher compared from last fiscal year for the same period. Speaking at Aranya Bhawan during an inauguration of training programme meant for newly recruited officers of Bihar Finance Service, Sushil said: "The revenue collection for the financial year 2018-19 is Rs 27,000 crore and so far, we have achieved a target of Rs 15,466 crore till November, which is an increase of 38 per cent as compared to last fiscal year for the same period," he said. Stressing that the strength of tax-payers has seen a remarkable growth of 3.87 lakh against 1.69 lakh registered during VAT regime, Sushil stated that out of 3.87 lakh, 2.18 lakh are new tax-payers. "In order to provide relief to small taxpayers, the GST council may soon enhance the limit of Rs 20 lakh turnover to Rs 75 lakh under composition scheme. We are also planning to bring composition scheme for service providers who have the turnover of Rs 50 lakh and reduce tax on goods in the construction sector from existing 12 and 18 per cent to 5 per cent," he added. Talking about the taxes levied on auto and cement sectors, he asserted that the GST Council is considering a plan to reduce the 28 per cent tax rate on cement and auto parts as the average monthly collection of GST has witnessed an increase in tax collections, which was earlier set at Rs 89,700 crore (2017-18) and now kept at Rs 97,100 crore for 2018-19. Praising Prime Minister Modi for implementing GST in the country, Sushil said that it is the biggest indirect tax reforms after independence. Before the implementation of GST, around 17 different types of taxes were levied which have been now included in the GST. GST has put an end to the check-posts system across the country and it has turned the concept of "one nation, one tax, one market" into reality. He further said that several parts of the world saw a surge in prices after the introduction of GST, however, India is the only country, which witnessed fall in prices of various products after the implementation of GST.

Bihar government collected 38% more tax than last year: Sushil Kumar Modi

The GST Council on Saturday held a meeting in New Delhi and decided to <a href="http://www.wionews.com/india-news/gst-council-slashes-rates-of-7-items-from-28-jaitley-calls-meeting-fruitful-185843">slash rates for items from 28 per cent</a>. Union Finance Minister Arun Jaitley told media that rates on 23 commonly used goods and services, including TV screens, movie tickets and power banks have been slashed in a move billed to bring relief to the common man.&nbsp;

The council rationalised the 28 per cent slab by bringing down the tax rate on seven items in the highest tax bracket, thereby leaving only 28 items in the slab.

The new tax rates will come into effect from January 1, 2019.&nbsp;

Puducherry Chief Minister V Narayanasamy also interacted with reporters and informed that 33 items have come down from 18% to 12% &amp; 5% as they are common to man’s consumption goods.&nbsp;

Here's taking a look at the revised rates and commodities that will now be available at cheaper prices.&nbsp;

<table border="1" cellpadding="1" cellspacing="1" style="width: 500px;">
	<tbody>
		<tr>
			<td>Items</td>
			<td>Previous rate</td>
			<td>New rate</td>
		</tr>
		<tr>
			<td>
			Cinema tickets above Rs 100
			</td>
			<td>28</td>
			<td>18</td>
		</tr>
		<tr>
			<td>
			Cinema tickets up to Rs 100
			</td>
			<td>18</td>
			<td>12</td>
		</tr>
		<tr>
			<td>
			Power banks of lithium ion batteries
			</td>
			<td>28</td>
			<td>12</td>
		</tr>
		<tr>
			<td>
			Monitors and TVs up to 32 inches
			</td>
			<td>28</td>
			<td>18</td>
		</tr>
		<tr>
			<td>
			Digital cameras and video camera recorders&nbsp;
			</td>
			<td>28</td>
			<td>18</td>
		</tr>
		<tr>
			<td>
			Video game consoles, others under HS code 9504
			</td>
			<td>28</td>
			<td>18</td>
		</tr>
		<tr>
			<td>
			Third party insurance premium of goods carrying vehicles
			</td>
			<td>18</td>
			<td>12</td>
		</tr>
		<tr>
			<td>
			Vegetables frozen, branded and stacked in a unit container
			</td>
			<td>5</td>
			<td>0</td>
		</tr>
		<tr>
			<td>Vegetable provisionally preserved but unsuitable in that state for immediate consumption 
			&nbsp;</td>
			<td>5</td>
			<td>0</td>
		</tr>
	</tbody>
</table>

The new tax rates will come into effect from January 1, 2019. Other items with reduced GST rates include music books, pulleys, transmission shafts, gear boxes, accessories for the carriages for disabled people, among others.

According to the finance minister, the annual revenue implication of the rate cuts would be Rs 5,500 crore.

"Movie tickets up to Rs 100 brought down to 12% and above Rs 100 has been brought down to 18% from 28%. Monitors and Television screens, Tyres, Power banks of Lithium-ion batteries have brought down from 28% to 18% slab. Accessories for carriages for specially abled persons have been brought down to 5%," the finance minister informed.&nbsp;

The GST Council on Saturday held a meeting in New Delhi and decided to slash rates for items from 28 per cent. Union Finance Minister Arun Jaitley told media that rates on 23 commonly used goods and services, including TV screens, movie tickets and power banks have been slashed in a move billed to bring relief to the common man.

The GST Council on Saturday held a meeting in New Delhi and decided to slash rates for items from 28 per cent. Union Finance Minister Arun Jaitley told media that rates on 23 commonly used goods and services, including TV screens, movie tickets and power banks have been slashed in a move billed to bring relief to the common man. The council rationalised the 28 per cent slab by bringing down the tax rate on seven items in the highest tax bracket, thereby leaving only 28 items in the slab. The new tax rates will come into effect from January 1, 2019. Puducherry Chief Minister V Narayanasamy also interacted with reporters and informed that 33 items have come down from 18% to 12% & 5% as they are common to man’s consumption goods. Here's taking a look at the revised rates and commodities that will now be available at cheaper prices. Items Previous rate New rate Cinema tickets above Rs 100 28 18 Cinema tickets up to Rs 100 18 12 Power banks of lithium ion batteries 28 12 Monitors and TVs up to 32 inches 28 18 Digital cameras and video camera recorders 28 18 Video game consoles, others under HS code 9504 28 18 Third party insurance premium of goods carrying vehicles 18 12 Vegetables frozen, branded and stacked in a unit container 5 0 Vegetable provisionally preserved but unsuitable in that state for immediate consumption 5 0 The new tax rates will come into effect from January 1, 2019. Other items with reduced GST rates include music books, pulleys, transmission shafts, gear boxes, accessories for the carriages for disabled people, among others. According to the finance minister, the annual revenue implication of the rate cuts would be Rs 5,500 crore. "Movie tickets up to Rs 100 brought down to 12% and above Rs 100 has been brought down to 18% from 28%. Monitors and Television screens, Tyres, Power banks of Lithium-ion batteries have brought down from 28% to 18% slab. Accessories for carriages for specially abled persons have been brought down to 5%," the finance minister informed.

Revised GST rates: What is likely to become cheaper

Congress leader P Chidambaram Wednesday slammed Prime Minister Narendra Modi for declaring that his government has won in the Supreme Court, which ordered that income tax cases against Sonia and Rahul Gandhi be reopened.&nbsp;

The former finance minister said whoever has briefed the Prime Minister on the proceedings in the apex court on Tuesday in the income tax cases “deserves to be sacked”. 
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“If nobody briefed him and it was the Prime Minister’s own conclusion that he had ‘won’ in the SC, the government deserves to be thrown out,” Chidambaram said.

On Tuesday, the Supreme Court allowed the Income Tax Department to reopen the tax assessment of Congress president Rahul Gandhi and his mother Sonia Gandhi for 2011-12 in connection with the National Herald case.&nbsp;

Taking on the Gandhi family a day after the Supreme Court order, the prime minister said at an election rally in Rajasthan on Wednesday that his government had scored a win thanks to the courage of a “chaiwala”.

Alleging that the Gandhi family had been enjoying privileges for four generations, Modi said the court order was the “victory of the honest”.

“Now I will see how you escape… Look at the courage of a ‘chaiwala’ who took those running countries for four generations to the court’s door,” Modi said.

Congress leader P Chidambaram Wednesday slammed Prime Minister Narendra Modi for declaring that his government has won in the Supreme Court, which ordered that income tax cases against Sonia and Rahul Gandhi be reopened.

Congress leader P Chidambaram Wednesday slammed Prime Minister Narendra Modi for declaring that his government has won in the Supreme Court, which ordered that income tax cases against Sonia and Rahul Gandhi be reopened. The former finance minister said whoever has briefed the Prime Minister on the proceedings in the apex court on Tuesday in the income tax cases “deserves to be sacked”. Advertising “If nobody briefed him and it was the Prime Minister’s own conclusion that he had ‘won’ in the SC, the government deserves to be thrown out,” Chidambaram said. On Tuesday, the Supreme Court allowed the Income Tax Department to reopen the tax assessment of Congress president Rahul Gandhi and his mother Sonia Gandhi for 2011-12 in connection with the National Herald case. Taking on the Gandhi family a day after the Supreme Court order, the prime minister said at an election rally in Rajasthan on Wednesday that his government had scored a win thanks to the courage of a “chaiwala”. Alleging that the Gandhi family had been enjoying privileges for four generations, Modi said the court order was the “victory of the honest”. “Now I will see how you escape… Look at the courage of a ‘chaiwala’ who took those running countries for four generations to the court’s door,” Modi said.

Chidambaram slams PM for saying govt ‘won’ in SC in tax case against Sonia, Rahul

The Goods and Services Tax (GST) has been hailed as the biggest tax reform in India after independence. One of the principal advantages of the GST is that it is a tax on the value added. So, a firm producing a particular good or service has to pay tax only on the value it adds to the product, while deducting the tax payments made on its inputs (which have already been paid by the input supplier). These tax deductions on inputs are called Input Tax Credits (ITCs).

Firms can avail ITCs from the tax authorities only if they can show that their supplier of inputs paid GST on those inputs. This forces all firms in the value chain to maintain records of their tax payments as firms higher up the value chain will demand these records to avail their respective ITCs.

This self-policing feature of the GST is therefore expected to raise compliance and increase government revenues. It also has one more advantage. Firms in the informal sector are by definition out of the tax net. If these firms are suppliers of inputs to formal sector firms (that pay taxes), then they will be forced to register with the tax authorities and get their GSTIN numbers.

Otherwise, the formal sector firms that procure their products as inputs will switch over to formal sector suppliers as they can use the suppliers’ GSTIN numbers to avail ITCs. Thus, the GST is also expected to formalise the economy, as more and more hitherto informal firms register with the tax authorities.

But there is a reverse possibility also. Consider two firms A and B. A is the supplier of inputs to B. Assume A is in the informal sector and B is in the formal sector. According to the previous paragraph, B will force A to get a GSTIN number so that B can avail ITC.

So, A registers and comes into the formal sector. However, if the cost of GST compliance is very high, then B might instead be tempted to stop paying taxes or de-register and join the informal sector.

As a result, both A and B are now part of the informal sector and the entire value chain slips out of the tax net. Thus, if the costs of compliance are high enough, GST can actually shrink the formal economy and lower revenues.&nbsp;

Two American economists, de Paula and Scheinkman, studied the effects of the introduction of Value Added Tax (VAT) on Brazil. They found that the costs of compliance were so high that it marginally shrank the Brazilian formal sector initially. Later tax reforms reversed this trend and the formal sector expanded as expected. Has something like that happened in India?

It is too early to say given the limited data. No doubt there has been a 50 per cent increase in the indirect taxpayer base (according to the Economic Survey). But there is clear anecdotal evidence to suggest that firms are evading the payment of GST.

Thus, value chains are slipping out of the tax net. Steps are, therefore, being taken to reduce the costs of compliance and incentivise firms to pay GST. The attempts by various stakeholders to make this tax reform work is promising.

(This article was originally published on DNA. Read the <a href="https://www.dnaindia.com/analysis/column-impact-of-gst-on-the-formal-sector-2688997">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

The Goods and Services Tax (GST) has been hailed as the biggest tax reform in India after independence. One of the principal advantages of the GST is that it is a tax on the value added.

The Goods and Services Tax (GST) has been hailed as the biggest tax reform in India after independence. One of the principal advantages of the GST is that it is a tax on the value added. So, a firm producing a particular good or service has to pay tax only on the value it adds to the product, while deducting the tax payments made on its inputs (which have already been paid by the input supplier). These tax deductions on inputs are called Input Tax Credits (ITCs). Firms can avail ITCs from the tax authorities only if they can show that their supplier of inputs paid GST on those inputs. This forces all firms in the value chain to maintain records of their tax payments as firms higher up the value chain will demand these records to avail their respective ITCs. This self-policing feature of the GST is therefore expected to raise compliance and increase government revenues. It also has one more advantage. Firms in the informal sector are by definition out of the tax net. If these firms are suppliers of inputs to formal sector firms (that pay taxes), then they will be forced to register with the tax authorities and get their GSTIN numbers. Otherwise, the formal sector firms that procure their products as inputs will switch over to formal sector suppliers as they can use the suppliers’ GSTIN numbers to avail ITCs. Thus, the GST is also expected to formalise the economy, as more and more hitherto informal firms register with the tax authorities. But there is a reverse possibility also. Consider two firms A and B. A is the supplier of inputs to B. Assume A is in the informal sector and B is in the formal sector. According to the previous paragraph, B will force A to get a GSTIN number so that B can avail ITC. So, A registers and comes into the formal sector. However, if the cost of GST compliance is very high, then B might instead be tempted to stop paying taxes or de-register and join the informal sector. As a result, both A and B are now part of the informal sector and the entire value chain slips out of the tax net. Thus, if the costs of compliance are high enough, GST can actually shrink the formal economy and lower revenues. Two American economists, de Paula and Scheinkman, studied the effects of the introduction of Value Added Tax (VAT) on Brazil. They found that the costs of compliance were so high that it marginally shrank the Brazilian formal sector initially. Later tax reforms reversed this trend and the formal sector expanded as expected. Has something like that happened in India? It is too early to say given the limited data. No doubt there has been a 50 per cent increase in the indirect taxpayer base (according to the Economic Survey). But there is clear anecdotal evidence to suggest that firms are evading the payment of GST. Thus, value chains are slipping out of the tax net. Steps are, therefore, being taken to reduce the costs of compliance and incentivise firms to pay GST. The attempts by various stakeholders to make this tax reform work is promising. (This article was originally published on DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Impact of GST on the formal sector

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