Foreign investors have every reason to be disappointed with Finance Minister P Chidambaram’s eighth annual budget, which contained fewer business-friendly measures than expected.
Assistant Treasurer David Bradbury has reinforced the Australian government’s stance on tax avoidance by claiming that protection of the tax base is the “most significant challenge to the world’s major advanced economies”.
In his February 17 economic note, Australian Treasurer Wayne Swan talked of the increasing trend of multinational profit shifting, throwing his weight behind earlier comments from his counterparts in France, Germany and the UK. Now, Assistant Treasurer David Bradbury has reinforced the Australian government’s stance by claiming that protection of the tax base is the “most significant challenge to the world’s major advanced economies”.
Taxpayers are often nervous in the lead-up to budgetary announcements, and recent Indian Finance Bills have done nothing to ease those nerves by including legislation to retroactively alter the tax law. With Thursday’s budget speech looming, taxpayers and their advisers are demanding that certainty and stability are the two focal points this time around.
With sequestration – the automatic triggering of a package of spending cuts – due to kick in on March 1, Erskine Bowles and Alan Simpson, who co-chaired the 2010 National Commission on Fiscal Responsibility and Reform, have released a new deficit reduction plan.
The UK and Isle of Man have struck a deal to increase the pressure on tax havens, with the two jurisdictions signing an agreement which will see automatic information exchange (AIE) of tax details in the future.
