Now that it is almost settled that the U.S. presidential nominees are known – barring any huge U-turns or assassinations – both candidates have been setting out their plans for economic transformation to make the USA great again. What is very interesting is that both Donald Trump and Hilary Clinton are aiming their reforms at the super-rich.
As we all know we have been told time and time again that, because of the world´s economic state, we all have to pay as much tax to the governments as humanly possible and that, if we try to hide any money, we will be heavily penalised. Well, yet again it has been proved that there is one rule for us and another rule for them – by them I mean the 1% that are super wealthy, politicians, or large corporations.
Governments, tax authorities, journalists and experts on tax evasion and avoidance on Monday were digesting news of a major leak of confidential and reportedly revealing documents from a Panamanian law firm. Some are calling it the biggest leak of confidential information ever to hit the global financial services industry.
Dot com boom, dot com bust! High Interest rates low interest rates, Strong Euro, weak Euro. What was a good thing last year is the worst thing this year. ‘The only thing certain in Life is death and Taxes’ quote made famous by Benjamin Franklin 1789.
Many ex-pats are still suffering from the cuts in income that have taken place due to the very low interest rates they continue to endure on their savings.
Well brace yourselves for more! Any of you who rely on dividends from shareholdings to supplement your income are about to see a whole new look to the tax regime associated with them.
Dividends are annual cash payments made to holders of certain shares, they provide a vital source of income to many pensioners who rely on savings in retirement. The way dividends are to be taxed is to change from April 2016 and will see basic-rate taxpayers subject to a new levy of up to 7.5 per cent.
One of the most important parts of financial planning is the use of tax allowances. I would say at least equal to, potentially more than sound investment advice. There are several ways to consider your tax bills both annually and in retirement…. Pay today, pay in the future, transfer to other people or reduce future tax bills today, using legal financial advice.
A common misconception is that people reduce their tax bills by using complicated, unethical tax schemes using multi jurisdictional allowances, without looking into the use of completely legitimate and simple planning. In the UK that is available for everyone.
Have you restructured your international investments?
On the 1st of January 2015, the Portuguese Tax Authorities brought about sweeping changes to its Personal Income Tax Legislation, specifically aimed at but not limited to, previously sheltered international investment structures. Six months into the 2015 fiscal tax year, there seems to be a wait and see attitude to the impending punitive tax burden that will be levied on investments held by both Portuguese nationals and Expat Tax Residents in Portugal.
One thing I do know and that is many international and national people still live in the past, thinking Portugal is a laissez-faire country unable to, with efficacy, diligently collect its taxes.
The offices of the taxman are not usually credited with efficiency and success. But there is one aspect of HM Revenue & Customs which is terrifyingly efficient, and that is its powerful computer program which is accessing and trawling databases of personal financial information on an unprecedented scale.