“Off the fees? You have to tackle that big ‘

In order to get rid of the allowances, D66 not only wants to drastically change the tax system, but also make childcare free, increase the minimum wage, increase the social assistance benefit and the AOW and abolish the mortgage interest deduction. Member of Parliament Steven van Weyenberg thinks that major interventions are needed to abolish the benefits without people with lower and middle incomes falling back. And to make work pay for those groups more. “You have to do this big.”

The fact that the allowances are a major problem is recognized by the Cabinet and the House of Representatives: the care, rental and childcare allowance too often lead to financial problems for households. A motion to investigate whether the allowance system could disappear was supported by all 150 MPs at the end of 2019. D66 Secretary of State Menno Snel had to resign at the end of 2019 because of the affair around the childcare allowance, in which many thousands of families were wrongly labeled as fraudulent due to an overly rigid investigation policy of the Tax and Customs Administration. MPs Pieter Omtzigt (CDA) and Renske Leijten (SP) played a major role in putting the abuses on the political agenda. Van Weyenberg acknowledges that it took too long for the magnitude of the errors to be realized. “The problem is bigger than just the very serious surcharge affair. The system doesn’t work. ”

Van Weyenberg is submitting an initiative note to the House of Representatives on Monday on behalf of his group. A Member of Parliament can make proposals with such a note and ask the cabinet for a response. Van Weyenberg hopes to enter into discussions with scientists and political parties in the Chamber before the elections in March 2021. “Otherwise, we will soon conclude with the formation of a new cabinet that it is too complicated to abolish the surcharges. And do we not help those hundreds of thousands of people who are now broken in the allowance system? We don’t have that luxury. ”

Van Weyenberg had his plan calculated by the Central Planning Board. This warns that the plan is so comprehensive that its economic effects are highly uncertain. In general, households are improving, with the exception of the highest incomes. They are deteriorating. But the differences are large, also within income groups: from a plus of more than 10 percent to a minus of more than 6 percent.

Redeemable tax credit

The core of the plan is that every household receives a ‘redeemable tax credit’ from the tax authorities. For people with a high income it is deducted from the tax. People with a low income are actually paid that discount. D66 does not want to make the discount dependent on what people earn, but on whether they live together or have children. This would amount to EUR 2,600 per year for couples, EUR 3,600 for singles, EUR 7,000 for single parents and EUR 2,300 per child.

According to Van Weyenberg, this solves one of the current problems: the retrospective assessments if it turns out afterwards that people received too much allowance. “Now you can just lose a bonus if you earn a little more. As a result, there are hundreds of thousands of people in debt with the Tax Authorities, or people dare not apply for a supplement. The redeemable tax credit is simpler: you don’t have to apply for it, it goes through your tax return. ”

The redeemable tax credit costs a lot of money: almost 40 billion euros. While the abolition of the surcharges only yields 17 billion euros. That is why D66 wants to increase the income tax rates (by more than 9 billion euros), to abolish the mortgage interest deduction (almost 9 billion euros) and to make pensioners pay more tax (more than 5 billion euros).

To make the allowances less necessary for people with low incomes, D66 wants to increase social assistance and the AOW by 5 percent and the minimum wage by 10 percent. D66 wants to make the childcare allowance superfluous by making childcare free: 4 days for children under 4 and completely free up to 12 years. Costs: 3 billion euros. The care allowance could lapse because D66 wants to halve the care premium. The government should compensate health insurers for that loss of income.

A gap of 8 billion euros

All in all, Van Weyenberg shifts by 100 billion euros. There is a gap of 8 billion according to the CPB. D66 wants to fill that gap with higher taxes on pollution, companies and wealth, Van Weyenberg writes in the initiative note. But he did not pass on those taxes. “At one point I was writing half of our election program. That went too far for me. I don’t pretend it’s finished. There are also positive income effects that CPB does not include now: a higher minimum wage can lead to higher wages. I wanted to know if the surcharges could be abolished at all, without lowering people through the ice. Well, it is possible. ”

Why this great renovation? Couldn’t it be simpler?

“No. The allowances are extremely important for people’s income. If you only enter the redeemable tax credit, the highest incomes will improve significantly, and the low and middle incomes will decrease. I want to support low incomes and I want more work to be more rewarding than it is now. Because now you quickly lose your right to allowances. That is why I also look at the systems behind the allowances and I take tough measures. ”

Do you cycle all kinds of D66 wishes?

“I admit that free childcare is an ardent desire of D66, as is a housing market reform. But if you abolish the housing benefit, it is wise to also abolish that other subsidy, the mortgage interest deduction. Then you disrupt the housing market less. And no, I did not opt ​​for a national healthcare fund, as the SP wants. This is intended as a kick-off. It is clear that each party wants different things. Will it be difficult to compromise on this? Yes. But we must now begin this discussion. The solution lies in the political center. ”

You take measures that have nothing to do with allowances, such as a higher property tax of 3 billion euros. Doesn’t that cloud the results?

“Abolishing the allowances without hitting people on low incomes costs a lot of money. I need this kind of item to pay for this. But they are separate from the core of this proposal. ”

The CPB shows that there are large differences in people’s incomes.

“Yes, but in general all groups are improving, except the highest incomes. I think that is justifiable, so that people with low incomes can no longer be completely ground up in the allowance system. We now have a super-detailed system that is precisely geared towards certain households. If you replace that, people will inevitably deteriorate. ”

Retirees are not progressing.

“People with only AOW pension do. We ask a contribution from people with a higher pension. ”

This plan is drastic, while the Tax and Customs Administration is struggling with problems and in need of rest, officials said.

“Ultimately, this is a huge simplification; we will abolish the complex allowance system. The redeemable tax credit is new and that demands something from the tax authorities. But we cannot afford to do nothing. I’m not going to accept that. ”

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Heavier paycheck in July, 110% eco-bonus also arrives

Wealthier paycheck in July: in fact it starts on Wednesday cutting the tax wedge as required by the latest Budget law. A benefit that affects many workers affected by the tax change in different ways. For employees with income from 8,174 to 26,600 (ex Renzi bonus) the bonus from 80 euros to 100 (20 euros more); for workers with income of 26,600 and 28 thousand euros, an increase in the pay packet of 100 euros is expected; for workers with income between 28 thousand and 40 thousand euro of income, the wedge cut is configured as a decreasing deduction until exhaustion.

Payroll increases, the table with the amounts

Here is a table with the amounts by income brackets.

To obtain the discount in the paycheck it will not be necessary to make a request, the discount will be made directly by the employer, who plays the role of substitute tax.

Ecobonus and 110% bonus earthquake

From 1st July, theecobonus e SISMI good 110%: a maxi tax credit to revive the economy by looking at the greens and safety introduced in the relaunch decree now under consideration in the Chamber. The bonus allows interventions with an improvement of the energy class and reduction of seismic risk practically free thanks to the mechanism of the discount on the invoice and the assignment of credit. Second homes are currently excluded, but there is an amendment in Parliament to include them.

110% restructuring bonus: free jobs, but how many doubts. Who risks “mockery”

Also from July 1st, you can request the holiday bonus from 500 euros. Households with Isee will be able to obtain up to 40,000 euros and is valid until 31 December 2020. The bonus amount will be modulated according to the size of the household: 500 euros for those made up of three or more people; 300 euros for two people and 150 euros for one person.

It is important to remember that for the Holiday Bonus it is necessary to have a “digital identity”: the discount is obtained through an app which can be accessed exclusively via Spid (the Public Digital Identity System) or the Electronic Identity Card. After checking if you are entitled to the bonus, the user will get a unique code and a QR-code that can be used for the use of the bonus.

Payments, the cash cap starts from 1 July: watch out for penalties

Finally on Wednesday the new one also comes into force limit on the use of banknotes which goes from 3,000 to 2,000 euros as established by the tax decree linked to the budget law. As we explain in this fact sheet, the goal is to counter tax evasion by promoting electronic payments. From Wednesday therefore – except for some special cases – it will be mandatory use of traceable systems (cards, bank transfers, etc.) for expenses in excess of 1,999 euros, whether they are between private individuals or between private individuals and merchants. Penalties for those who do not comply with the rules: there is a risk of a fine of 3,000 euros and up to 50,000 euros for a single transaction, according to the gravity of the infringement.

Less cash in circulation, but no specific limit on cash withdrawals and payments to the bank. And ‘black’ payments are in fact still free for mini purchases, even taking advantage of the trick of split payments. “The new thresholds will be easily circumvented – notes a company – with the result that tax revenues will not suffer particular advantages”.

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“Non-repayable loans or in October it will be hard to keep open”

The nightmare of economic analysts is called deflation: as reported by the CGIA Research Office without liquidity, the country “could see the consumer price index drop (already in May it was -0.2%)”. Deflation, we recall, is manifested by a progressive drop in the prices of goods and services. A situation that is far from positive: it is good to note that although prices are decreasing, families do not buy because of lower financial resources or negative expectations. The little that is sold entails increasingly narrow profit margins for retailers. The goods, remaining on the shelves of supermarkets and shop windows, cause a situation of difficulty for traders, but also for manufacturing companies which, in the face of so much unsold, are forced to reduce production.

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In the US payments coronavirus has received over one million “dead souls” :: Society :: RBC

In the United States because of the rush of recipients of incentive payments were not associated with the database registration of deaths, and as a result of funds received over a million “dead souls”, said the audit chamber of the country

Photo: Drew Angerer / Getty Images

The U.S. government paid more than $1.4 billion “to dead souls” as incentive payments on the background of the pandemic coronavirus, says the report of the accounting chamber.

“According to the main inspector of the Ministry of Finance for taxes, as of April 30, nearly 1.1 million payments in the amount of $1.4 billion was sent to the deceased”, — stated in the document.

The authors noted that the IRS and the Treasury “promptly started paying 160.4 million payments in the amount of $269 billion,” but “experienced difficulties in the delivery of payments to certain individuals and additional risks in respect of payments to those who had no right to receive payments is deceased or fraud.”

The chamber found that because of the rush of recipients of incentive payments were not associated with the database registration of deaths, and the tax office found no legal grounds to refuse compensation to those who filed a tax return in 2018 and 2019, but later died.

For payments to families with children up to 16 years will receive more than 270 billion rubles.

Photo: Komsomolskaya Pravda / Global Look Press

In this regard, the chamber recommended that the US tax service “to consider cost-effective ways of warning” about the way of repayment of payments received in error.

At the end of March the US President, Donald trump has signed the law on allocation of $2 trillion to help the economy of the country because of the virus. This financial aid package was the largest in the history of the country. Funds were allocated for additional funding of the health system, business support and direct payments to Americans.

Citizens with an annual income up to $75 million will receive $1.2 thousand, while families with children by $500 per child. Support is provided for those who have lost their jobs and who cut wages. On loans for small businesses, the U.S. government will direct $367 billion, another $130 billion will go to the hospitals.

According to the Johns Hopkins University, in the United States since the beginning of the pandemic coronavirus infected 2.4 million people. At the same time, the Director of the Center for control and prevention of diseases of the USA Robert Redfield announced that the country may be about 25 million cases, ten times more than official figures. “This virus often causes asymptomatic disease. We’ve identified roughly 10% [от масштабов] outbreak” — he said, reports The Hill.

The spread of the coronavirus Covid-19 in the world

The number of confirmed cases of infection

Source: JHU

Data for the world i


Victoria Polyakova

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Russia is ready to terminate the tax Treaty with Malta

The Ministry of Finance of Russia has prepared a draft agreement on the denunciation of the Convention between the governments of Russia and Malta for the avoidance of double taxation. On the portal of projects of normative legal acts is the procedure of public discussion of the draft document, the text is not yet published. In late March President Vladimir Putin has proposed to raise the income tax on dividends transferred to accounts abroad.

Recall letter about changing the tax agreement was submitted to the authorities of Malta, Luxembourg and Cyprus in April. In June, the newspaper “Vedomosti”, citing sources reported that Russia’s negotiations with Cyprus on the change in the tax agreement have stalled and the agreement itself may be terminated.

Now the income tax on dividends transferred to accounts abroad, is 5-10%. Proposed by the Russian President, the new tax will come into effect in 2021 and will be 15%.

On increasing taxes — in the material “Kommersant”: “Vladimir Putin raises the stakes”.

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Russia prepared to terminate the taxation agreement with Cyprus :: Economy :: RBC

Moscow’s proposal to increase taxes for a resident of Cyprus to 15% did not meet with understanding from the authorities of Nicosia

Photo: Petros Karadjias / AP

Russia intends to break the current agreement with Cyprus on avoidance of double taxation (DTT). The reason is that the authorities of the island state has not presented Moscow his proposals for changes in rates, told RBC Federal official.

Vedomosti, citing its sources reported that the talks about changing the tax treaties with Cyprus stalled. According to them, Cyprus in response to Moscow’s proposal to increase when current rates offered to save them, tightening the control over foreign entities of the Russian business. However, Moscow insists on raising them, threatening to denounce the current agreement in the autumn, the newspaper writes.

Now a tax Treaty with Cyprus provides that the payment of dividends in favor of residents of Cyprus from Russia can be reduced to 5 or 10%, and the interest on the loans to 0%.

The Finance Ministry has proposed to Cyprus to remove all tax benefits on dividends from Russia

Photo: Kirill Kallinikov / RIA Novosti

After the unilateral withdrawal from the DTT with Cyprus all payments (dividends, interest, royalties) in favor of residents of Cyprus from Russia will be taxed in accordance with Russian Tax code, i.e. at the rate of 15% (dividends) and 20% (interest, royalties). Can also hurt Russian companies and natural persons, who receive income from Cyprus, since the taxation of these payments will be effected under the laws of Cyprus, without applying the DTT.

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Niece trump was going to reveal the “indecent story” about the President :: Policy :: RBC

Mary trump previously disclosed tax schemes of his uncle, and now decided to talk about the President’s role in the death of her father

Photo: Patrick Semansky / AP

Daughter Fred trump (the late brother of the US President) Mary trump plans in the summer of 2020 to produce a book containing “obscene and heartbreaking” story about Donald trump. This publication reports The Daily Beast.

According to the portal, a 55-year-old Mary trump plans to publish a book called Too Much And Never Enough on August 11. Its content is kept secret by the publisher but the sources said that one of the major “revelations” of the book will be the story of the niece of the President about how she has played a crucial role in the publications of the New York Times about the tax schemes of Donald trump.

In the investigation of the NYT, which was awarded the Pulitzer prize, said that trump used fraudulent tax schemes to withdrawal from the business his father Fred trump more than $400 million in terms of the present money.

Trump accused the media of concealing information about the situation in Seattle

The Daily Beast writes that Mary trump gave the NYT the confidential information, tax returns and other financial documents which were the basis for publications.

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Tokaev proposed to introduce a progressive income tax scale in Kazakhstan

President of Kazakhstan Kassym-Zhomart Tokayev has proposed the introduction of a progressive scale of individual income tax. Now the country has a single rate of 10%. The head of state also proposed changing the structure of the country’s economy.

“In the name of social justice, the time has come to work out the issue of introducing a progressive scale of individual income tax in respect of wages and other types of income,” Mr. Tokayev said during a meeting of the state commission on the state of emergency. His words are given on the website of the head of state. He explained that citizens with low salaries would pay less, and highly paid workers more.

The President believes that in this way it will be possible to achieve the goal of removing from the “shadow” the “opaque lower wage segment. “If the rate on them is reduced, there will be less incentive to pay in an envelope,” Mr. Tokayev said.

The head of state also urgently urged the creation of a new economic structure. In his opinion, the energy sector requires significant reforms. He called urgent the movement towards green energy. Mr. Tokaev considers the competent use of public procurement as a means of restoring economic activity. “We will have to take a fresh look at the future structure of the Kazakhstani economy, determine the role of each of its main sectors … In other words, we urgently need to build a new structure of the economy,” said the President of Kazakhstan.

Recall that earlier Mr. Tokaev signed a decree on the deprivation of Dariga Nazarbayeva, daughter of the first president of the country Nursultan Nazarbayev, the powers of a member of the Senate. This automatically deprived her of the post of the speaker of the legislative body, which is key in the country’s political system.

On the changes in Kazakhstan – in the material “Kommersant” “The daughter of the leader of the nation was removed from power.”

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Real estate wealth tax and donations: the way forward

The property wealth tax (IFI) is a declaratory tax. It is therefore the taxpayer who must calculate if his real estate assets exceed 1.3 million euros, triggering threshold of the IFI.

► Who should pay the IFI?

Successor of the wealth tax (ISF) since 2018, the IFI has taken up the main characteristics (amount, calendar, rate …). With one major difference: the tax base only takes into account the property assets.

→ READ. Coronavirus: the re-establishment of the ISF again in debate

The exclusion of all financial assets (equities, life insurance, etc.) mechanically reduced the number of taxable persons. In 2019, just under 140,000 households were subject to the IFI, while the former ISF had affected more than 350,000 households in 2017, the last year before its replacement.

Taxpayers declaring a taxable net property heritage of more than 1.3 million euros are liable to the IFI. In this case, they must fill out a specific form which must be returned or validated online at the same time as the traditional tax return, the deadline for which was extended by the Covid-19 crisis, spanning between June 4 and 12 depending on the departments.

► What goods, what rate?

The IFI relates to the net real estate assets, after deducting what remains to be paid from the related loans. It concerns all real estate, primary or secondary residence as rental property.

The goods must be assessed by the taxpayer according to their theoretical value at 1er January of the tax year. The main residence nevertheless benefits from a 30% discount and the goods necessary for professional activity are excluded from the assessment.

► Calculation by tax household

The IFI also concerns the “paper stone”, that is to say the securities of companies managing a property portfolio, SCI or SCPI. As for the ISF, the base of the IFI is calculated at the level of the tax household: whether the household has one or two parents, and whatever the number of children, the threshold remains the same.

The tax rate is similar to that of the former ISF. It starts at 0.5% and peaks at 1.5% for the share exceeding 10 million euros. However, there is a cap limiting the taxation of households with large real estate assets but low incomes. In this case, the IFI is reduced so that the total of contributions and taxes (IFI included) of the household does not exceed 75% of this income.

► What reduction for donations?

The transition from the ISF to the IFI eliminated the reduction formerly granted to wealthy households investing in the capital of certain companies. However, it did not change anything for donations, neither on the amount of the reduction nor on its ceiling.

Donations can be made until the day taxpayers file the IFI declaration. They are entitled to a tax reduction equal to 75% of the amount of the donation, up to a limit of € 50,000.

Unlike donations deducted from income tax, IFI donations must however be made for the benefit of certain very specific categories of organizations, in particular foundations recognized as being of public utility, as well as research centers or insertion through activity.

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The declaration of the IFI is compulsory

The procedures for declaring property tax (IFI) are the same for all taxpayers. The declaration is compulsory. Those subject to the IFI are excluded from the new tacit agreement which consists of not changing anything in their pre-filled tax return. Any French resident (or non-resident but with a tax obligation in France) can declare his IFI with his declaration of income using the online declaration (you must then check the box “real estate” in the table at the beginning of the step 3). Since 2019, taxpayers whose main residence is equipped with Internet access must do so. From 2020, they will no longer receive a paper pre-filled declaration by post. If the IFI is declared with the paper form, the taxpayers concerned will receive a form 2042-IFI at their home. As with income tax, the paper declaration must be returned to the managing department. Important point: the deadline for filing will depend on the method of declaring income (paper or online) and the department of domicile, and no longer according to the value of the property assets held.

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The Tax Agency will reinforce the telephone service to make the Personal Income Tax Declaration

The Tax Agency, as the main novelty in this campaign of the income statement, fwill promote the systematic use of the telephone, instead of face-to-face care, which will probably be subject to limitations, although in principle the current state of alarm will last until May 9 and care at the Treasury offices is scheduled to start on May 13. This was stated this morning by the director general of the Tax Agency, Jesús Gascón, who announced that Starting May 7, the institution will launch a reinforced telephone system. This, says Gascón, makes it possible for officials to work both from the Administration offices and from home.

This service will be available by appointment, which can be requested from May 5, which could be for a specific day and time slot.

In any case, Gascón has highlighted that the current income campaign, active since April 1, has started in a very strong way with the use by taxpayers of telematic applications. At the moment, more than five million tax returns have already been filed, including those that are to be paid, not only those that are entitled to a refund. Gascón has also had an impact on 450,000 respondents who last year completed the procedures in person at the Treasury offices, this year have already opted for filing online.

Everything seems to be prepared, therefore, so that the income campaign maintains the planned schedule and ends on June 30, despite the fact that in recent weeks there have continued to be requests that it should be extended until September since some deputations Provincial governments are already taking measures of this type.

Even though Gascón has not ruled out any possibility, nor that of extending the period to make the personal income tax declaration, by affirming that the Tax Agency has enormous operational capacity to adapt to the country’s health situation.

Tax deferral

Jesús Gascón has also referred to the respondents, mainly autonomous and small and medium-sized companies, favored by the measure approved by the Government and which allows them to defer the payment of 30,000 euros in taxes (as long as their turnover last year was less than six million euros) for six months, three of which without interest. As of Wednesday, 550,000 deferral requests had been filed for 361,000 taxpayers.

Furthermore, with regard to the latest measures adopted by the Government, which allow the self-employed to switch from the module system to that of direct estimation this year; or for those who remain under the same taxation mechanism, the number of days on which the state of alarm is in force is reduced; as well as companies to calculate their tax bill for their real income this year and not taking their results from last year as a reference; Gascón explained that for those who have already submitted their statements previously, a refund system is being used that takes as a reference the one applied for the one made for undue withholding of maternity benefits.

Regarding the controversy of why the council of ministers decided to wait until April 14 to approve the extension of the term for personal income tax, VAT and companies from April 20 to May 20 (or from April 15 to 15 of May for direct debit payments), Gascón has pointed out that most taxpayers wait until the last minute to comply with the treasury.

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Taxpayers Adjust Their Income Tax

Particularly affected by the coronavirus crisis, many independents have used the source deduction device (PAS) in place since 2019, which allows to adjust the level of taxation in real time. For this category of taxpayers, “withholding tax has played its role as a shock absorberSaid Bercy, who launched the 2019 income tax declaration campaign on Monday. Between March 16 – start of confinement – and April 16, more than 100,000 freelancers have canceled or postponed their installments which are withdrawn monthly or quarterly. In detail, the ministry records 37,776 deferred payments, against 540 in normal period. As for the deletions, they climb to 63,003 instead of 45,000.

Concerning other taxpayers such as employees, the ministry records 38,681 downward modulations of the rates of withholding tax at source since the beginning of the confinement. This adjustment in taxation during this period of crisis is less significant, in particular due to the massive deployment of the partial unemployment scheme which limits the layoffs of employees and helps to contain this downward modulation of the rate.

In any case, the executive is already counting on a reduction in tax receipts for income tax of 6 billion euros for the year 2020. “This is very predictive at the moment. And everything will depend on the duration of the confinement“Said Minister of Action and Public Accounts Gérald Darmanin at a press conference on Monday.

The ministry also drew up a first assessment of taxpayer behavior in 2019, the first year of application of the withholding tax. A total of 8.2 million actions were carried out. Among them, 3.3 million relate to changes in rates or deposits and 1.1 million represent changes in family status.

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