Jérôme Cahuzac, appointed by Hollande to lead clampdown on wealthy avoiders, hid cash in a secret Swiss account for 20 years Jérôme Cahuzac, the minister who led François Hollande’s drive for a more honest tax system, has been sentenced to three years in prison for tax fraud and secretly stashing… – Continue reading
The South African Revenue Service (SARS) has released guidance, in a question and answer format, for financial institutions (FIs) seeking to understand the impact of the OECD’s Common Reporting Standard (CRS). The Organisation for Economic Co-operation and Development’s CRS obliges countries and jurisdictions to obtain financial information from their FIs… – Continue reading
Amazon effectively offers a safe haven for businesses that want to avoid sales tax, German revenue officials told Handelsblatt on condition of anonymity. In June, authorities raided eight Amazon locations across Germany as part of an investigation into a Chinese trader who had sold goods through the online marketplace without… – Continue reading
A new report says little has changed after a number of global tax scandals… Ireland is entering unfair tax deals with developing countries according to a new report on ‘sweetheart deals’ in the EU. Of the 18 countries in the study, Ireland is found to have on average “introduced the… – Continue reading
The new 9 percent flat corporate profit tax – to be introduced 1st of January 2017 – will put Hungary in a very good position in the international race for investments as Hungary will offer even better conditions than Ireland and Cyprus, which are both often regarded as the European… – Continue reading
The Netherlands is still making secret tax deals with multinational companies, according to an European report on which Dutch research foundation SOMO worked. The Netherlands remains one of the ost important countries in Europe when it comes to tax evasion, the report states according to ANP. Last year the Netherlands… – Continue reading
After recent scandals, many financial and wealth management centres are losing their allure and ‘mid-shore’ options are taking their place, argues Philip Marcovici. Will all existing financial and wealth management centres survive? Are tax-free secrecy havens (the “offshore world”) a feature of the past? Is there room for entry of… – Continue reading
Controversy over giant corporations paying dwarfed tax bills has put finance chiefs in the media and public spotlight When giant companies with devilishly complex tax arrangements are accused of unethical behaviour, the stock response is “we act within the rules”. If the public and politicians don’t like it, the argument… – Continue reading
In Depth There is mixed news for affected individuals, including far-reaching changes relating to offshore trusts and a further wait (possibly until March 2017) for the rest of the draft legislation. The following are highlights from the government’s response and the draft legislation. Deeming Provisions Deemed Domiciled: Non-doms will become… – Continue reading
The International Chamber of Commerce (ICC) welcomes the Organisation for Economic Co-operation and Development’s (OECD)’s release last week of a multilateral convention which allows for swift implementation of a series of tax treaty measures encompassed in the OECD/G20 Base Erosion and Profit Shifting (BEPS) project. The release follows the conclusion… – Continue reading
Also commits to country-by-country reporting Cayman has committed in principle to a project reforming the application of tax rules in cross-border business to combat the erosion of tax bases and the artificial shifting of profits to low or no-tax jurisdictions. Developed by the Organization for Economic Cooperation and Development, base… – Continue reading
Draft legislation for the public sector IR35 reforms was published yesterday and several firms have responded concernedly to the publication of the documents. IR35 legislation reforms were proposed recently during the Autumn Statement. Julia Kermode, chief executive of The Freelancer & Contractor Services Association, commented on the publication of the… – Continue reading
There are signs of a growing urgency in mainland China to better understand the implications of next year’s introduction of the Common Reporting Standard (CRS). Institutions from within China’s trust and banking sectors, as well as private clients, are increasingly seeking guidance from jurisdictions which were early adopters of the… – Continue reading
New laws to punish those who help set up offshore schemes to enable tax evasion were revealed Monday, as the U.K. government cranks up the heat on advisers and planners. Britain’s government has widened the Finance Bill 2017 to include further measures that will tackle tax evasion, avoidance and aggressive… – Continue reading
Common reporting standard: Implementation in Asia The Common Reporting Standard (“CRS”) is an internationally agreed standard for automatic exchange of financial account information (“AEOI”) on financial account information, endorsed by the OECD and the Global Forum for Transparency and Exchange of Information for Tax Purposes. The CRS framework requires financial… – Continue reading
The USA Tax and Financial Consultants Office in the Middle East confirmed that Kuwait has revealed the accounts of about 7,000 Kuwaitis who hold dual citizenship and are covered by the US tax laws according to the Foreign Account Tax Compliance Act (FATCA), reports Al-Anba daily quoting informed sources. Sources… – Continue reading
Switzerland, which has been working to end its years-long practice of banking secrecy, on Thursday said it aimed to dramatically increase the number of countries it cooperates with toward international fiscal transparency. The Swiss government said in a statement that it wanted to extend the automatic exchange of information (AEOI)… – Continue reading
The United States has not agreed to participate in the Common Reporting Standard (CRS), relying instead on the Foreign Account Tax Compliance Act (FATCA) regime enacted in 2010 and initiated in 2014. United States participation in CRS is highly unlikely. Even with a change in control of Congress, CRS may… – Continue reading
The amount of tax potentially underpaid by big businesses by shifting profits to other jurisdictions has increased by 60 percent in the last year, to GBP3.8bn (USD4.8bn), according to figures obtained by international law firm Pinsent Masons. The figure is the “tax under consideration” by HMRC’s Large Business Directorate, being… – Continue reading
Taxpayers with offshore assets urged to get affairs in order before May clampdown Taxpayers with offshore assets ranging from foreign properties to deposit accounts or structured investments are being urged to get their affairs in order ahead of a May clampdown by the Revenue Commissioners – even if they believe… – Continue reading
The Kenya Revenue Authority has signed an international memorandum of understanding on tax collaboration with Botswana, to provide administration assistance from next year. Tax officials from Kenya and Botswana on Thursday agreed to the assistance project that marks the first South-South cooperation pact under the Tax Inspectors Without Borders programme… – Continue reading
Pyrenees principality approves automatic sharing of information on accounts held by non-residents from EU countries Andorran lawmakers have agreed to end banking secrecy in the Pyrenees mountains principality, approving automatic sharing of information on accounts held by non-residents. The General Council, Andorra’s unicameral parliament, approved a measure that will come… – Continue reading
The Organization for Economic Co-operation and Development (OECD) issued the Standard for Automatic Exchange of Financial Information in Tax Matters (Standard for AEOI) in July 2014, which aims to prevent offshore tax evasion and maintain the integrity of tax systems. Over 100 jurisdictions have committed to comply with the Standard… – Continue reading
European Union member countries are considering a “substance test” to determine whether a country or jurisdiction with a zero corporate tax rate qualifies as a tax haven that doesn’t reflect “real economic activity.” After a host of EU member countries rejected in early November the use of a zero corporate… – Continue reading
When introducing the draft legislation for the Diverted Profits or so-called “Google Tax”, Federal Treasurer Scott Morrison claimed it would: …reinforce Australia’s position as having amongst the toughest laws in the world to combat corporate tax avoidance. Australia is the second country to introduce this type of tax, after the… – Continue reading
The Governments of the United States and Grenada have signed the Foreign Account Tax Compliance Act (FATCA) that will enforce a requirement for US citizens to file yearly reports on their non-US financial accounts. “This allows us to work together to ensure that financial institutions here in Grenada can help… – Continue reading
President-elect Donald Trump fired another warning shot Sunday at U.S. companies considering moving their operations out of the country, threatening “retributions or consequences” such as a hefty border tax if they do. The pronouncements came in a string of early morning tweets. Trump declared that he intends to incentivize businesses… – Continue reading
Indonesia is widening its tax net to target global technology giants like Google and Facebook Inc., a strategy that’s raising red flags for fear it may deter foreign investment. Finance Minister Sri Mulyani Indrawati is seeking to squeeze more revenue out of an economy that’s been hit by weak commodity… – Continue reading
The OECD’s ground-breaking multilateral tax treaty, which will potentially amend thousands of bilateral tax treaties, will add “another layer” to treaty administration—but actual changes to bilateral agreements will be clear to both tax administrations and multinational companies, the organization’s tax chief said. Taxpayers and tax administrations “will know what the… – Continue reading
Small businesses in the U.S. have to shoulder, on average, an extra $5,128 in taxes to make up for the revenue lost due to the abuse of offshore tax havens by multinational corporations, according to a new report by U.S. Public Interest Research Group Education Fund. As a new administration… – Continue reading
The UAE’s Ministry of Finance and the Central Bank of the UAE are working with banks and other financial services companies in the country to prepare for the Common Reporting Standard (CRS), which will come into effect starting 2018. The CRS is a system developed by the Organisation for Economic… – Continue reading
A resurgent U.S. economy would help offset softness elsewhere in the world. Global growth will pick up faster than previously expected in the coming months as the Trump administration’s planned tax cuts and public spending fire up the U.S. economy, the OECD said on Monday, revising up its forecasts. In… – Continue reading
For myriad reasons, Malta has over the years established itself as an ideal jurisdiction to hold intellectual property rights. The country offers many tax benefits on income derived from Intellectual Property. Apart from the tax exemption on income derived from patents, copyrights and trademarks as will be further explained below,… – Continue reading
A major Revenue crackdown on tax-avoidance schemes used by Ireland’s richest people has clawed back more than €36m for the taxpayer in the past year. The tax-avoidance team at Revenue’s large cases division has agreed settlements with a number of high-wealth individuals – defined as those with net assets greater… – Continue reading
Giants Real Madrid and Barcelona are among five La Liga clubs from whom the Spanish taxman is looking to recover €52 million (RM244 million), online newspaper El Confidencial claimed yesterday. Alongside Atletico Madrid, Sevilla and Valencia, the big two are accused of having avoided tax by paying player’s agents directly…. – Continue reading
94 countries have committed to implement the joint disclosure system by 2017 and 2018 Abu Dhabi: The Ministry of Finance (MoF) has announced that the UAE will begin implementing the standards of joint disclosures and the exchange of information for tax purposes set out by the G20 and Organisation for… – Continue reading
The government plans to bring in amendments to the Income Tax Act, 1961 (Act) to tax unexplained cash deposits, a finance ministry official told reporters in an informal briefing on Friday. As per this official, two amendments are likely to be tabled in the parliament next week. One, voluntarily disclosed… – Continue reading
Switzerland’s Ordinance on the International Automatic Exchange of Information (AEOI) in Tax Matters will enter into force on January 1, 2017. The Swiss Federal Council adopted the ordinance on November 23. The ordinance contains the Federal Council’s implementing provisions for the Federal Act on the International Automatic Exchange of Information… – Continue reading
In light of the Coinbase case, expert Perry Woodin explains how the American tax system needs to deal with Bitcoin. It was recently reported that the IRS filed a petition in US federal court seeking full disclosure of Coinbase’s American customers records over just two alleged cases of tax avoidance… – Continue reading
The U.K. government said it would investigate bringing nonresident companies’ income into the country’s corporation tax regime. The consultation on the move is expected to begin at Budget 2017 in March, the Treasury said in its Autumn Statement Nov. 23. “The government wants to deliver equal tax treatment to ensure… – Continue reading
The double taxation agreement (DTA) between Switzerland and Liechtenstein will enter into force on 22 December 2016. The DTA contains a provision on the exchange of information upon request according to the internationally applicable standards. The DTA will contribute to the development of good economic relations between Switzerland and Liechtenstein…. – Continue reading
On 24 November 2016, Switzerland and South Africa signed a joint declaration on the introduction of the automatic exchange of information (AEOI) in tax matters on a reciprocal basis. Both countries intend to start collecting data in accordance with the global AEOI standard in 2018 and to exchange it from… – Continue reading
On November 22, 2016, the Minister of Finance of Ukraine handed an official letter on Ukraine’s accession to the BEPS (Base Erosion and Profit Shifting) plan to the Secretary-General of OECD. Being the final stage in the process of joining the project, Ukraine is to become a member of the… – Continue reading
Romania’s National Tax Agency (ANAF) may drop the criminal charges for damages of up to RON 50,000 (EUR 11,000) from tax evasion if the accused pays the amount and penalties before the first court hearing, according to Finance Minister Anca Dragu. The taxpayers will be able to benefit from this… – Continue reading
Tax authorities across Europe will be able to automatically share information about bank account holders, according to a Council position approved by the European Parliament on November 22. It was passed by 590 votes to 32 votes, with 64 abstentions. According to a European Parliament press release, the new rules… – Continue reading
The financial regulator of Central American nation Belize has issued a public warning against XMAXBIT, a company that claims to provide returns for investors by investing in cryptocurrencies like bitcoin. Published on Monday, the Office of the International Financial Services Commission (IFSC), Belize’s financial regulator, has warned users against dealing… – Continue reading
Advisers will need to inform clients of new changes to offshore tax disclosure as the government introduces a new legal requirement to correct past failures, experts warn. As part of the Autumn Statement today, the Government said it would put in place a new legal “requirement to correct” a past… – Continue reading
Minister of State (Finance) Santosh Kumar Gangwar on Tuesday said action against tax evasion/black money, including in respect of black money stashed away abroad, is an ongoing process and such action under direct tax laws includes searches, surveys, enquiries, assessment of income, levy of penalties and filing of prosecution complaints… – Continue reading
Panama can remain a competitive financial center while cracking down on tax evaders and other criminals who have used the country to launder money, according to the panel formed by the government after the “Panama Papers” scandal broke in April. The five-member “Committee of Independent Experts”, including a former boss… – Continue reading
The Australian government is one of the most aggressive in highlighting the issue of multinational corporations avoiding taxes through extensive use of tax havens. Microsoft’s Australian subsidiary will start disclosing the amount of tax it pays in Australia, opting in to a government-transparency program aimed at shedding light on the… – Continue reading
