Nothing leads to more delays and inefficiencies than a government department/parastatal trying to go it alone. It is therefore refreshing to see more and more public private partnerships in Zimbabwe.
We saw the Justice Service commission partner a globally known company to help establish a tech-first approach. Now, the government has partnered with another global player, this time to help collect taxes on its behalf.
The Zimbabwe Revenue Authority (ZIMRA) is responsible for collecting taxes and other revenues for the govt. But believe it or not, even with over a thousand employees, they are still understaffed. In a mostly informal economy, Zimra would have to employ half the population to keep track of every business venture in the country. Hence why we ended up getting the 2% tax.
Now, the 2% tax was not the last of our finance minister’s revenue generating innovations. He also introduced taxes on companies that provide digital advertising, content, cloud
— source techzim.co.zw | Leonard Sengere | Feb 7, 2022
What if $10 billion were raised over ten years to transform Congress and make it do what it should be doing for the people (See, Think Big to Overcome Losing Big to Corporatism, 1/7/22)? In a more recent column, Facilitating Civic and Political Energies for the Common Good, 2/2/22, I outlined how $1 billion per year could be spent lobbying Congress for a people’s agenda.
First $100 million per year would be used to get through Congress long-overdue legislation such as full Medicare for All, a living wage, preventing corporate abuses, etc. The second $100 million would be devoted to create facilities making it easy for people to band together in their various organized roles (e.g., workers, consumers, patients, savers) so they could counter corporate bosses who unite their investors and many lobbying trade groups.
Now, I wish to suggest the third $100 million per year be used to make Congress change the disgracefully unfair, wasteful, and inefficient tax laws.
Start with Congress providing the Treasury Department with adequate funds to crack down on tax evasion – estimated to be between $600 billion and $1 trillion a year! Republicans
— source nader.org | Ralph Nader | Mar 11, 2022
Amazon’s latest annual financial report released last Friday paints a vivid picture of a company that is edging toward monopoly status—and doing so at the expense of U.S. taxpayers.
The company reported a record $35 billion in U.S. pretax income for fiscal year 2021, a haul that is 75 percent more than its 2020 U.S. earnings of $20 billion. Just as notable, the company’s effective federal income tax rate of 6 percent means it avoided about $5.2 billion of federal income tax in 2021. If Amazon had paid the statutory 21 percent tax rate on its 2021 U.S. income without any tax breaks, that would have meant a tax bill of more than $7.3 billion. Instead, the company reports a current federal income tax expense of $2.1 billion.
Amazon’s 2021 federal income tax payment is comparatively significant for a profitable company that paid less than $0 in the first year of the Trump-GOP tax law. But the company’s continuous tax avoidance adds up over time. Over the past four years, Amazon reported a total federal tax rate of just 5.1 percent on over $78 billion of U.S. income.
The (entirely legal) mechanisms Amazon uses to achieve this are familiar. Tax credits account for $1.1 billion of the company’s tax avoidance, with deductions for excess
— source Institute on Taxation and Economic Policy | Matthew Gardner | Feb 8, 2022
An analysis released Monday shows that Amazon utilized several perfectly legal mechanisms to avoid paying $5.2 billion in federal corporate income taxes in 2021, a year in which the online retail behemoth saw its profits and sales skyrocket.
Matthew Gardner, a senior fellow at the Institute on Taxation and Economic Policy (ITEP), estimated that given Amazon’s record-breaking $35 billion in U.S. pretax income for fiscal year 2021, the Seattle-based corporate giant paid an “effective federal income tax rate of 6%”—far lower than the statutory corporate tax rate of 21%.
Had Amazon paid the latter rate on its 2021 U.S. income, Gardner noted, the company’s federal tax bill would have amounted to more than $7.3 billion.
“Instead, the company reports a current federal income tax expense of $2.1 billion,” Gardner wrote Tuesday. “Amazon’s 2021 federal income tax payment is comparatively significant
— source commondreams.org | Jake Johnson | Feb 8, 2022
A new analysis released Tuesday estimates that an annual wealth tax targeting the world’s millionaires and billionaires would raise enough revenue to lift 2.3 billion people out of poverty, provide universal healthcare to the people of low- and middle-income nations, and produce enough coronavirus vaccines to meet global demand.
The study was carried out by the Fight Inequality Alliance, the Institute for Policy Studies (IPS), Oxfam, and Patriotic Millionaires, advocacy groups that have long warned about and cataloged the corrosive impacts of wealth inequality—which has only gotten worse during the ongoing Covid-19 crisis.
“The insane reality is that whilst billions face a daily struggle to survive during this pandemic, billionaire wealth is spiraling out of control,” Jenny Ricks, global convenor of the Fight Inequality Alliance, said in a statement. “This cannot be right.”
— source commondreams.org | Jake Johnson | Jan 18, 2022
The U.S. corporate tax rate was cut from 35% to 21%, thanks to the Tax Cuts and Jobs Act (TCJA).1 The U.S. tax rate is now much more competitive with other nations, but companies are continuously looking for ways to save money.
The passage of the Tax Cuts and Jobs Act (TCJA) has reduced the corporate tax rate from 35% to 21%.
Large multinational companies can still save billions of dollars by using foreign subsidiaries and tax havens.
Other methods used by Fortune 500 companies to reduce taxes include accelerated depreciation and stock options, while some industries even offer specific tax breaks.
The Real Tax Bill
The Institute on Taxation and Economic Policy (ITEP) found in a 2017 report that over the eight-year period from 2008 to 2015, 258 profitable Fortune 500 companies paid an average effective federal income tax rate of 21.2%—while the federal tax rate was 35% for all those years.2
— source investopedia.com | Matthew Johnston | Jan 27, 2021
Countries are losing almost half a trillion dollars through tax abuse by multinationals and the super-rich, enough to fully vaccinate the global population against Covid-19 three times over, a report has said.
Research by tax campaigners found that estimated losses had risen from $427bn last year to $483bn (£359bn) in 2021, with the UK alone responsible for almost 40% of the total.
Britain facilitates abuse and evasion through a network made up of British overseas territories and the City of London, the report said.
The State of Tax Justice 2021 – jointly published by the Tax Justice Network (TJN), the Global Alliance for Tax Justice and the global union federation Public Services International – said $312bn of the total sum was the result of cross-border corporate tax abuse by multinational corporations and $171bn offshore tax evasion by wealthy individuals.
The report said the total was calculated based on data self-reported by multinational
— source theguardian.com | Larry Elliott | 16 Nov 2021
It was once famously said that the executive (government) is nothing but a committee to manage the affairs of the ruling class in any society. The Narendra Modi-led Bharatiya Janata Party government is a fine example of this truth. The open and brazen way in which it has worked to the advantage of India’s powerful corporate sector has few parallels in the world.
Take the example of taxation, which is the sovereign right only of governments. In the name of spurring ‘growth’ and ‘employment’ the Modi government has decisively reduced taxes levied on big business while increasing the burden on common people through direct and indirect taxation. It has also reduced customs duties (tax on imports) to encourage entry of foreign products into the country, thus damaging domestic industry, especially the medium and small-scale sectors.
Corporate Tax Cuts
As the chart below shows, income tax collections increased from Rs.2.6 lakh crore in 2014-2015 when Modi came to power, to Rs.5.6 lakh crore – a rise of 117%. In the same period,
— source newsclick.in | Subodh Varma | 24 Oct 2021
I think the big picture finding is that this — we hav uncovered a system that benefits the few at the expense of the many. You know, you mentioned at the outset some of the — the video mentioned some of the big names. King Abdullah of Jordan, through a convoluted shell game, offshore shell game, bought mansions in Malibu. The prime minister of the Czech Republic secretly bought a château in France. And hundreds of other politicians besides. And I think that is really the big takeaway for us, at least, is that some of the people who are in a position to potentially stop offshore abuses are in fact themselves benefiting from this dark system, dark money system.
what we see here is jurisdiction shopping, right? Sort of an international game of arbitrage, where companies have built tremendous expertise in helping their clients find places to hide their money in secrecy and legally, quite legally. So, you know, a small jurisdiction — you know, the British Virgin Islands or the Seychelles. You know, these are jurisdictions where it’s possible to set up a company for a few hundred or few thousand dollars and not even disclose the fact that you are the actual owner of the company. You can set them up through front men, through what’s called nominee shareholders and directors. So, you know, this is in fact — it’s a legal system. I will say that some of what we just charted is also illegal money flowing through offshore, and so that’s sort of a different story. But, broadly speaking, yeah, the use of offshore shelters is legal.
— source democracynow.org | Oct 05, 2021
A Treasury Department report released Wednesday estimates that the richest 1% of Americans are responsible for more than $160 billion in unpaid taxes per year, a finding that comes as Democratic lawmakers are working to bolster IRS enforcement capacity in their emerging reconciliation package. Each year, according to the Treasury analysis, the top 1% of earners in the U.S. don’t pay $163 billion in taxes they owe by law. The bottom 10% of earners, by contrast, account for less than $3 billion in unpaid taxes annually. Persistent tax dodging by the wealthiest people in the country has resulted in a staggering $7 trillion “tax gap”—the difference between taxes owed and taxes the federal government actually collects. The sheer magnitude of lost revenue is striking: it is equal to 3% of GDP, or all the income taxes paid by the lowest earning 90% of taxpayers.
— source commondreams.org | Sep 9, 2021