The semiconductor shortage is increasingly obvious, from the automotive industry to consumer electronics. In fact, the chip shortage has even been referenced as a potential matter of national security. H.R. 4346, better known as the CHIPs and Science Act, was signed into law by President Biden on 9 August 2022 and seeks to promote semiconductor supply chain resilience by establishing incentives to increase the production of microchips and related devices, including through an effectively refundable tax credit, as well as through other measures.
The Tax Administration Act in South Africa permits the warrantless search and seizure of a taxpayer’s property by the South African Revenue Service, which plays an essential role in ensuring that taxes are collected in an efficient and effective manner. However, this has been under scrutiny for many years due to its potential to infringe the right to privacy as enshrined in the South African Constitution. A recent case highlighted this matter and the circumstances under which such procedures may be carried out.
On 17 August 2022, the Joint General Resolution No. 5249/2022 of the Federal Tax Authority and the Ministry of Labor and General Resolution No. 5250/2022 of the FTA was published in the Official Gazette. It expanded the application of the “Digital Salary Book” system, which now includes employers who have not opted for the modality of mobile sheets.
Resolution No. 625/2022 of the Secretary of Energy included new hydrocarbon ventures in the regime of tax and customs benefits created by Law No. 19,640 for the Province of Tierra del Fuego. The Regime refers to the Special Custom Area and includes: a) exemptions of federal taxes applicable to activities or operations to be performed in the Special Custom Area or upon goods located in the Special Custom Area; and b) customs benefits applicable to the reception or delivery of merchandise that a company located in the Special Custom Area can make from or to companies located in any of the other operative areas. The exemptions apply to income tax, value-added tax and excise tax.
On 18 August 2022, a webinar entitled Managing Customs Disputes in the Philippines took place as part of the Asia Pacific IMT webinar series. The collection targets of both the Philippine Bureau of Internal Revenue and the Bureau of Customs have increased to recover the lost government revenue caused by the pandemic. This has resulted in a rise in the imposition of penalties on importers for non-compliance. The webinar provides a brief discussion of the common issues raised during border disputes and post clearance audits, and the remedies available to the importers.
On 26 July 2022, the UK Government published its responses to the 2018 consultation on employment status. The consultation had invited stakeholders to make online submissions on how to address various issues with the UK’s current framework for the employment and tax statuses of individuals. At present, for tax purposes, there are two tax statuses: (i) self-employed and (ii) employed; while for employment law purposes there are effectively three statuses: (i) worker; (ii) employee and (iii) self-employed.
In this newest episode of Baker McKenzie’s Global Tax Policy Video Series, Kate Alexander, Miles Humphries and Nick Evans discuss recent UK perspectives on Pillar Two. They also discuss what UK businesses are doing now to prepare for implementation of the proposed Pillar Two changes, despite a welcome delay to the UK’s implementation schedule.
This article, by Francis Mayebe, Candidate Attorney in the Tax Practice in Johannesburg and Virusha Subban, Head of the Johannesburg Tax Practice, looks at the criteria and guidelines for voluntary tax disclosure in South Africa. The article outlines a recent case, and analyses the meaning of “voluntary” within the context of the voluntary disclosure program in South Africa.
The Kenyan Government, in its latest Finance Act 2022, has enacted some key changes in the area of direct tax. This article, written by Francis Mayebe, Candidate Attorney in Johannesburg, and Virusha Subban, Partner and Head of the Johannesburg Tax Practice, highlights an important update on the country-by-country reporting threshold for multinational companies.
General Resolution (AFIP) 5228, published in the Official Gazette on 7 July 2022, established the rules for the payment of the tax on online gambling. The rates applicable for the payment of the Tax were set forth by Decree 293/2022, published in the Official Gazette on 2 June 2022. The Resolution also included the list of the non-Argentine residents in charge of organizing/operating the online gambling subject to the Tax.