I note that Brazil made its mark in international tax in two areas this month.
Firstly the EU announced it was going to the World Trade Organisation over alleged problems with high Brazilian import tariffs in the car sector, amongst others, which the EU says are discriminatory. What struck me about this was that since Brazil is such a big trading partner the EU now has to negotiate on equal terms with Brazil, and a good thing too.
Secondly, Brazil has imposed a much increased tax on overseas tourism spending by its citizens, charged and collected through the bank card and travellers’ cheque systems. The right or wrongs of the tax aside the clever part about its collection was using the payments system to do it.
The Parliamentary Public Accounts Committee this month lambasted HMRC over taking a soft approach with overseas multi-nationals making vast profits in the UK, which they collect through the payments system, but then not paying much or any UK tax.
Tax Barrister, Accountant