The UK government had proposed to reform the income tax for self-employed construction workers. With this new measure, they would have to pay taxes on a ‘pay-as-you earn basis’. The result is that the construction companies will have more administrative work. The construction workers will have to pay almost 13% extra taxes. But they also would not get any benefits packages that are connected with their job, such as pensions,..
According to tax experts this rule will affect a lot of contractors, because the industry in the UK consists of a lot of self-employed labour. Also the hire-agencies of contractors will be affected.
The government has taken many rules in the past years, but none of them seemed to work effectively. By introducing the new legislation, they hope to receive more income from this sector, that was down because of the crisis.Another reason for the new law, is to ensure that the self-employed construction workers pay all the taxes they are due.
In our group we have separate opinions about this subject. Some of us think it is good for the government to receive extra capital to invest in the economy to recover from the crisis. But we also think that these taxes will lower the purchase power of the employees. This is negative for the UK economy. This industry is now the only victim in this crisis. We think all industries should participate for an equal part in the extra taxes. Another advantage of these taxes is that they can contribute in the battle against moonlighting.
Source: http://business.timesonline.co.uk/tol/business/industry_sectors/construction_and_property/article6865978.ece
October 8, 2009
Tim De Backer, Bart Lammens, Gerty Rigaux, Wouter Van Caenegem and Jens Van Nieuwenhove
maandag 12 oktober 2009
zondag 4 oktober 2009
Government intervention ends Air India strike
The management of Air Indie decided last week to cut in to the wages of their best-paid employees. That measure has lead to an strike. This week the government ended this four day strike by overruling this management decision.
The intervention of the government was due to the fact many pilots took sick leave after the decision of their management. At this moment the travelling season in India is very busy. This leaded to chaos on the airport.
The strike was not the only problem of Air India. The company have a losses of around $3bn. Now they have to make a good turnround plan for receiving fresh government funds.
Kapil Kaul, chief executive for India of the Centre for Asia Pacific Aviation said the fundamental problem of Air India is not resolved. The company has a bad cost structure and now with redrawing the cost-cutting measure it will not become better. Along Kapil Kaul, Air India has twice as much employees as it must have to run their operations.
I think the government did a good job by putting an end to the strike. It could have leaded to great losses for the country if the tourist stayed away. Now the government have to help Air India by finding a solution for the financial problems. Otherwise all the problems stay.
source: http://www.ft.com/cms/s/0/452294f2-ae23-11de-87e7-00144feabdc0.html
September 29 2009
The intervention of the government was due to the fact many pilots took sick leave after the decision of their management. At this moment the travelling season in India is very busy. This leaded to chaos on the airport.
The strike was not the only problem of Air India. The company have a losses of around $3bn. Now they have to make a good turnround plan for receiving fresh government funds.
Kapil Kaul, chief executive for India of the Centre for Asia Pacific Aviation said the fundamental problem of Air India is not resolved. The company has a bad cost structure and now with redrawing the cost-cutting measure it will not become better. Along Kapil Kaul, Air India has twice as much employees as it must have to run their operations.
I think the government did a good job by putting an end to the strike. It could have leaded to great losses for the country if the tourist stayed away. Now the government have to help Air India by finding a solution for the financial problems. Otherwise all the problems stay.
source: http://www.ft.com/cms/s/0/452294f2-ae23-11de-87e7-00144feabdc0.html
September 29 2009
Standard income tax ‘raised by 10%’
The Department of Finance concluded the equivalent of an increase of 5.5 % points in the tax rate and a two-point in the standard rate. They also compared the increase incomes taxes to a 46,5% marginal tax rate and a 22% standard tax rate.
Brain Lenihan, the finance minister, is prepared to include the levies into the tax code. But some government sources speculate that payroll staff are wrestling with the system of calculating the impact of it.
An accountancy expert came to an argument that these levies would decrease the level of tax, paid by low and high earners. But the officials will examine the reduce. Due to the raise of the standard income tax, the government will earn an 1.1 billion extra this year and 1.6 billons across a full calendar year. But the calculation doesn’t apply the public pension sector.
The admission of the levies and the tax code would have a positive influence on the business world mentioned Brain Keegan, CAI director of taxation. Not only for employees but also for contributors.
The budget of 2009 showed in October a tax of 1% on low earners, 2% on medium and 3% on high earners. In April they were raised to 2%, 4% and 6%. But the finance minister will not have further increases. In difficult economic situations, the population avoid more taxes. When the government increase the taxes, they won’t necessarily see a rise of revenues.
Now the government departments preparing the budget for December. An Bord Snip Nua recommended to the ministers to avoid the implementations of various spending.
To include the levies into the tax code is a good strategy because it will have a positive influence especially for the employees. But now with the crises, the financial situation of the people will only get worse. The percentage of a medium earner is doubled so I think that here will be more moonlighters at the end of this year.
The cause of the financial crises is the fault of the financial institutions. Instead of paying out dividends to the shareholders, they have to pay back their debts to the government. So the government don’t have to increase the taxes.
The financial minister is determined to avoid any further rises. But what will be his plan to avoid this?
27 September 2009
Gerty Rigaux
Source: http://www.timesonline.co.uk/tol/news/world/ireland/article6851044.ece
Brain Lenihan, the finance minister, is prepared to include the levies into the tax code. But some government sources speculate that payroll staff are wrestling with the system of calculating the impact of it.
An accountancy expert came to an argument that these levies would decrease the level of tax, paid by low and high earners. But the officials will examine the reduce. Due to the raise of the standard income tax, the government will earn an 1.1 billion extra this year and 1.6 billons across a full calendar year. But the calculation doesn’t apply the public pension sector.
The admission of the levies and the tax code would have a positive influence on the business world mentioned Brain Keegan, CAI director of taxation. Not only for employees but also for contributors.
The budget of 2009 showed in October a tax of 1% on low earners, 2% on medium and 3% on high earners. In April they were raised to 2%, 4% and 6%. But the finance minister will not have further increases. In difficult economic situations, the population avoid more taxes. When the government increase the taxes, they won’t necessarily see a rise of revenues.
Now the government departments preparing the budget for December. An Bord Snip Nua recommended to the ministers to avoid the implementations of various spending.
To include the levies into the tax code is a good strategy because it will have a positive influence especially for the employees. But now with the crises, the financial situation of the people will only get worse. The percentage of a medium earner is doubled so I think that here will be more moonlighters at the end of this year.
The cause of the financial crises is the fault of the financial institutions. Instead of paying out dividends to the shareholders, they have to pay back their debts to the government. So the government don’t have to increase the taxes.
The financial minister is determined to avoid any further rises. But what will be his plan to avoid this?
27 September 2009
Gerty Rigaux
Source: http://www.timesonline.co.uk/tol/news/world/ireland/article6851044.ece
JAL requests government rescue.
Last week, Japan Airlines (JAL) has asked the government to intervene by giving them an emergency capital of $2.5bn-$3bn. If the government agrees to this bailout, Tokyo will tighten its grip on the Japanese company.
According to the chief executive of JAL and sources from the company, they need approximately $1.1bn just to keep flying until the end of the year. The capital they ask from the government would consist of new equity and loans. The bailout would re-boost the confidence in JAL after having great debts and a record loss of about $1.1bn last year. Next to the bailout plan, JAL is also planning to sell a minority stake to a foreign partner, this would give JAL an extra $0.33bn.
The money JAL is asking from the government would be provided from a fund that was created earlier in the year as support for companies who had suffered under the credit crunch, such as Elpida Memory, a troubled chipmaker. But taxpayers are already under a lot of pressure and current rumors of JAL cutting of 14% of its workforce and 50 work routes don’t exactly stimulates the confidence.
But there are also other rumors that say that there is a possibility that there will be a partial liquidation of JAL’s assets. But these rumors are denied.
In my opinion it is up to a government to help the companies in their country, but I don’t believe that the governments can keep up with this. Due to the credit crunch, a lot of companies are having trouble sustaining their position. In this particular case I believe it is up to the government to examine the situation of JAL very precise, because it is a company that has already known some difficult times. If the government would decide to agree on the bailout plan, they would have to be sure that JAL has a future. I think that this bailout plan would be a good opportunity for JAL to keep its operations going for a while, but when the credit crunch doesn’t come to an end, JAL will keep having troubles in the future.
Source: http://www.ft.com/cms/s/0/a1e5f35c-a8e5-11de-b8bd-00144feabdc0.html Viewed October 1 2009
According to the chief executive of JAL and sources from the company, they need approximately $1.1bn just to keep flying until the end of the year. The capital they ask from the government would consist of new equity and loans. The bailout would re-boost the confidence in JAL after having great debts and a record loss of about $1.1bn last year. Next to the bailout plan, JAL is also planning to sell a minority stake to a foreign partner, this would give JAL an extra $0.33bn.
The money JAL is asking from the government would be provided from a fund that was created earlier in the year as support for companies who had suffered under the credit crunch, such as Elpida Memory, a troubled chipmaker. But taxpayers are already under a lot of pressure and current rumors of JAL cutting of 14% of its workforce and 50 work routes don’t exactly stimulates the confidence.
But there are also other rumors that say that there is a possibility that there will be a partial liquidation of JAL’s assets. But these rumors are denied.
In my opinion it is up to a government to help the companies in their country, but I don’t believe that the governments can keep up with this. Due to the credit crunch, a lot of companies are having trouble sustaining their position. In this particular case I believe it is up to the government to examine the situation of JAL very precise, because it is a company that has already known some difficult times. If the government would decide to agree on the bailout plan, they would have to be sure that JAL has a future. I think that this bailout plan would be a good opportunity for JAL to keep its operations going for a while, but when the credit crunch doesn’t come to an end, JAL will keep having troubles in the future.
Source: http://www.ft.com/cms/s/0/a1e5f35c-a8e5-11de-b8bd-00144feabdc0.html Viewed October 1 2009
zaterdag 3 oktober 2009
Magna seeks added German government help for Opel: report
Magna can get a multi-billion euros support from the German government when they try to take over the General Motors’ Opel unit. Der Spiegel, a German magazine, published it.
There are 3 parties that can take over the Opel unit. There is Fiat, RHJ and Magna. Magna is a Canadian car parts group and they are the favourite to take over the Opel unit because they published a better plan than their rivals.
The deal with the German government would be a covering of the 3-billion euro pension obligations. There is also a plan that Magna wants Germany to provide loan guarantees of 4.5 billion euros.
The Magna co-Chief Siegfried Wolf said that he will explain the plans of Magna in Germany and that he wants to avoid mass job cuts. Also because there are federal elections in September. They government said that the plan from Magna is to most substainable among the three.
The U.S. government has given a deadline to General Motors. On June 1 they have to prove that they can be viable without state aid and avoid bankruptcy. If they can’t proove this, there will be help needed from Magna, RHJ or Fiat.
With this decision of the German government they play an important role in who gets Opel.
According to me it’s dangerous from the German government. They just try to save their own establishments but they forget that we are living in Europe. We need to do the best for Europe and try to save as much jobs we can in Europe.
Offcourse this is negative news for Opel Antwerpen, the plans of Magna are to close the establishment. But I guess if the Belgium government would get the same resources as the German government we would try to do the same. But now we can’t compete with Germany.
I hope Europe will say that this is not the best solution but I think that what choice Europe take, the establishment in Antwerpen will be closed.
Source: http://www.reuters.com/article/businessNews/idUSTRE54M0LW20090523
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