A quiet revolution is taking place across Europe. It isn’t playing out on the streets of capital cities or in the debating chambers of national parliaments. It has been slowly happening with every newspaper headline about how little corporation tax some companies pay relative to their size. It is also… – Continue reading
What is FATCA? FATCA refers to US legislation more fully known as the Foreign Account Tax Compliance Act and includes the US Treasury regulations implementing it. It was enacted as part of the Hiring Incentives to Restore Employment Act of 2010 (otherwise known as the, “HIRE Act”) on 18 March… – Continue reading
On February 15, 2016, the President of the Russian Federation signed Federal Law No. 32-FZ “On Amendments to the First and Second Parts of the Russian Tax Code (with Respect to the Taxation of Controlled Foreign Companies and the Income of Foreign Organizations)”, introducing a new set of amendments to… – Continue reading
Having launched and led the battle against offshore tax evasion, America is now part of the problem DEVIN NUNES raised eyebrows in 2013 when, as chairman of a congressional working group on tax, he urged reforms that would make America “the largest tax haven in human history”. Though he was… – Continue reading
Mumbai Tribunal rules buyback transaction taxable as capital gains, exempt under India-Mauritius Tax Treaty; even if considered as dividend, tax withholding does not apply This EY Tax Alert summarizes a recent ruling of the Mumbai Income Tax Appellate Tribunal (Tribunal) in the case of Goldman Sachs (India) Securities Pvt. Ltd…. – Continue reading
Axis Bank, India’s third-largest private bank by assets, is aiming to open branches in Sharjah and Bahrain by March next year as part of plans of increasing its presence in the Arabian Gulf region, a senior executive said. Axis Bank has nine overseas offices: branches at Singapore, Hong Kong, Dubai-DIFC,… – Continue reading
The 15 part action plan aims to tackle global inequalities in taxation income, increasing transparency for tax administrators and significantly improving Multinational Enterprises’s compliance. With tax regulations of large corporations at the forefront of all policy makers’ minds, this latest endeavour from the OECD and G20 will address the varying… – Continue reading
Last month the European Commission launched its Anti Tax Avoidance Package, propelled by unprecedented political support for the fight against perceived tax avoidance by multinationals. In it the European Union stresses its full support for recent recommendations of the Organisation for Economic Cooperation and Development’s (OECD) BEPS project and it… – Continue reading
As part of strategic effort to tackle cases of international tax avoidance and evasion, Kenya has joined the league of 93 global nations; united to address the economic vices and has now signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters. The signing of the crucial agreement, last… – Continue reading
CAN NEPAL IMPOSE CAPITAL GAINS TAX ON NCELL BUYOUT DEAL? This question has been making rounds ever since TeliaSonera, the largest shareholder in Nepali telecom operator, Ncell, announced its decision to sell 60.4 per cent of its stake in the telecom company to Malaysian giant, Axiata, for $1.03 billion. Divergent… – Continue reading
Wealthy taxpayers who split time between states should be prepared to prove where their true home lies. You’re lounging by the pool of your second home in Florida, chuckling as you think of your friends back home braving the blizzard in Massachusetts. And you’re musing: Perhaps it’s time to escape… – Continue reading
The Royal Bank of Scotland has worked accounting magic by investing in the distribution of movies such as Harry Potter, Batman Begins and Troy. It put money into 25 companies to enjoy a billion pounds worth of tax breaks between 1998 and 2007, according to Bloomberg. The deals involved a… – Continue reading
Apple has sold $12billion in bonds as part of another scheme to lower its tax bill. The tech giant got itself further into debt even though it has $215billion in the bank, more than the US Treasury. California-based Apple sold the bonds under a complicated scheme which is reportedly designed… – Continue reading
In the aftermath of the latest global financial crises, government have sought to recoup lost revenue through tax reform. This has put the spotlight on the issue of gaps in the current international taxation system that created opportunities for Base Erosion and Profit Shifting (BEPS) schemes. Simply put, BEPS are… – Continue reading
ST. GEORGE — The Internal Revenue Service has announced that avoiding taxes by hiding money or assets in unreported offshore accounts remains on its annual list of tax scams known as the “Dirty Dozen.” “Our continued enforcement actions should discourage anyone from trying to illegally hide money and income offshore,”… – Continue reading
Pinsent Masons has accused HM Revenue & Customs (HMRC) of hypocrisy over its recent approach to tax planning and avoidance. Fiona Fernie, a partner at the law firm, said many of the government department’s investigations of late had been politically motivated, “concentrating on the best soundbites for ministers”. Tax avoidance… – Continue reading
Pfizer, one of the largest multinational pharmaceutical companies in the world, recently announced plans to merge with Allegran, Plc, a pharmaceutical company based in Ireland. The new merged corporation, worth a total of $160 billion, will move its headquarters to Dublin, Ireland to avoid the U.S. government’s “double taxation” of… – Continue reading
Over the last two decades, an increasing number of companies have set up subsidiaries in offshore financial centres. So why don’t they move the entire business, and establish headquarters there too? While it seems prestigious—and tax-savvy—to be based in the Cayman Islands or Luxembourg, companies that choose to do so… – Continue reading
NEW DELHI: The tax department today said it has resolved disputes totalling Rs 5,000 crore with foreign companies in sectors like software and consultancy under the Mutual Agreement Procedure(MAP) in about two years time. The countries with which the cases have been resolved are the US, Japan, the UK and… – Continue reading
EU finance ministers will attempt to reach agreement by March on a directive requiring EU-wide country-by-country reporting for large multinationals and by July on a directive requiring EU states to adopt six anti-tax avoidance measures for corporations, Jeroen Dijsselbloem Dutch finance minister and president of the Eurogroup announced at an… – Continue reading
Proposals to repeal inventory and watercraft taxes or alter their credits have resurfaced a year after similar proposals were squelched following an outcry from industry and local government officials. The taxes that contribute a combined $85 million to Lafourche and Terrebonne government agencies are caught up in the battle of… – Continue reading
(Special) – If you’re planning on leaving Canada soon, don’t give up on contributing to your Registered Retirement Savings Plan (RRSP). If you become a non-resident of Canada, you can still contribute to an RRSP provided you still have accumulated contribution room available. “Your contribution room is determined by your… – Continue reading
The Government recently introduced into the Legislative Council a bill to provide a legal framework for the implementation of automatic exchange of financial account information in tax matters (“AEOI”). This would have significant implications both for financial institutions and, in a cosmopolitan city like Hong Kong, for many of their… – Continue reading
The Chancellor has been pressed to take “urgent action” and cut the headline rate of tax for the struggling North Sea oil industry in his Budget next month. Deputy First Minister John Swinney has written to George Osborne highlighting the “substantial challenges” the sector is facing amid plummeting prices, and… – Continue reading
MANILA, Philippines – Corporations may soon be subject to a transfer pricing audit, a new type of tax audit, from the Bureau of Internal Revenue (BIR). Transfer pricing is used to describe inter-company pricing arrangements relating to transactions between related entities. These can include transfers of intellectual property, tangible goods,… – Continue reading
The Irish Revenue has launched a new webpage that contains guidance on what it considers to be tax avoidance and information on the legislative tools available to detect and tackle avoidance arrangements. Revenue said its policy is “to challenge tax avoidance schemes and [the] unintended use of the legislation which… – Continue reading
A protocol on changes to the Uzbekistan-Pakistan agreement on double taxation avoidance and prevention of income tax evasion has been approved upon the Uzbek President Islam Karimov’s decree. The presidential decree was disseminated by the Uzbek media Feb. 15. Under the decree, the country’s foreign ministry was tasked to send… – Continue reading
Taipei, Feb. 15 (CNA) The Ministry of Foreign Affairs said Monday that Taiwan and Italy have completed an agreement to avoid double taxation and tax evasion. The Ministry of Foreign Affairs said Monday that Taiwan and Italy have completed an agreement to avoid double taxation and tax evasion. The ministry… – Continue reading
Malta’s Minister of Finance, Edward Scicluna, has expressed disappointment that the proposed EU Anti-Tax Avoidance Directive was not accompanied by an impact assessment for member states. Speaking at the ECOFIN meeting of EU Finance Ministers in Brussels, he said that such an impact assessment is necessary, including to measure the… – Continue reading
Only 3 per cent of India’s over 1 billion people are estimated to pay taxes It is that time of the year, when the salaried class starts praying for incremental tax concessions in the annual budget. Analysts, however, say that the government should focus on increasing the tax net instead… – Continue reading
Abu Dhabi Commercial Bank (ADCB), today announced the launch of “ADCB Private” , a new private banking proposition providing globally sophisticated banking and wealth management solutions for high-net-worth customers, delivered from the UAE. Wealthy clients in the region and the UAE have historically had to seek international banking and investment services… – Continue reading
In almost every field of legal work, privacy is regarded as a primary and legitimate concern to protect the interests of individuals and organisations. This was confirmed recently when the European Court of Justice (ECJ) struck down the US-EU data exchange agreement amid fears that data transferred to the US… – Continue reading
Kenya will now be able to pursue individuals who use offshore companies to evade taxes and commit other economic crimes, after it signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters last week. The agreement is the most comprehensive multilateral instrument available for all forms of cooperation to… – Continue reading
Similar trade agreements have been used to facilitate apparent tax avoidance in the past A controversial new trade deal between the EU and the United States could make it more difficult to fight tax avoidance, a new report has warned. TTIP, the Transatlantic Trade and Investment Partnership, is expected to… – Continue reading
On February 15, 2016 the President of the Russian Federation signed Federal Law No. 32-FZ on Amendments to Parts One and Two of the Russian Federation Tax Code (Regarding Taxation of Profits of Controlled Foreign Corporations and Income of Foreign Entities) (the “Law”). The Law introduces a number of amendments… – Continue reading
Where the United States leads on legislation, foreign jurisdictions slavishly follow Hongkongers will need to declare all their assets abroad by 2025. No, the government has not announced the policy yet. But academics have noticed a trend which strongly suggests Hong Kong will follow the US example in foreign tax… – Continue reading
The 2016 Singapore Transfer Pricing Guidelines on related-party loans The Inland Revenue Authority of Singapore published the 3rd edition of its Transfer Pricing Guidelines on the second working day of the New Year. In this new edition, the IRAS’ expectations concerning related-party loans have been slightly elaborated. The guidelines now… – Continue reading
The push for a tax amnesty has attracted a fair amount of criticism and even rebuke from analysts, the International Monetary Fund, the Organization for Economic Cooperation and Development (OECD), the World Bank and even the Corruption Eradication Commission (KPK). Yustinus Prastowo, a respectable tax analyst, went so far as… – Continue reading
In line with international developments, the Italian Government has been focusing on fighting tax evasion and avoidance in recent years. Studies and in-depth analyses on evasion and aggressive avoidance, conducted under the OECD BEPS project, which was delivered in October 2015, have led to the issuing of a series of… – Continue reading
Let me give you a heads up: First, I’m going to tell you some things that will make you ill. Then I’m going to present a cure. It will make you feel better—until, of course, you realize that knowing the cure brings us as close to implementing it as buying an… – Continue reading
A while back in Germany, I was driving on the straight as an arrow B-1. That is Bundesstrasse, the equivalent of a U.S. highway, a notch below the Autobahn. Roads tend to curve around farmers’ fields, having been there first. The B-1 from Cologne on the Rhine toward Berlin was… – Continue reading
A 30% tax bracket. A rise in the standard rate, with a rebate for lower earners. Higher taxes all round to finance more spending. In Scotland, ahead of May’s elections for the devolved parliament, a fascinating debate on tax and spending is under way, with the main parties setting out… – Continue reading
Russia has come close to blacklisting the UK as a tax haven as concerns grow over Scotland’s booming offshore business. The Kremlin’s Finance Ministry had announced that it would officially equate Britain with traditional “fiscal paradises” like Panama, the British Virgin Islands and the Caymans. Such a humiliating move would… – Continue reading
Action Plan 15 of the Organisation for Economic Co-operation and Development’s (OECD’s) Base Erosion Profit Shifting (BEPS) Project discusses the desirability and technical feasibility of a multilateral instrument to implement the treaty-related measures in the other BEPS Action Plans (discussed in previous articles in this column). Action Plan 15 proposes… – Continue reading
SACRAMENTO — After months of uncertainty, the Legislature appears poised to approve a tax on health care plans that would generate $1.27 billion annually and could substantially boost funding for developmentally disabled Californians for the first time in more than a decade. If lawmakers approve the tax in a series… – Continue reading
Rules should require foreign owners of prime London homes to come clean about beneficiary owners, say anti-corruption groups Large parts of London’s Baker Street, including the Beatles store, are owned by offshore trusts. New laws that aim to stop the UK being a magnet for money launderers – by forcing… – Continue reading
EU countries may have lost out on more than €1 billion in tax revenues between 2009 and 2014 due to aggressive tax strategies by furniture giantIkea, a new report has claimed. The report, commissioned by the Green/EFA group in the European Parliament into the tax affairs of the private company,… – Continue reading
BRATISLAVA, Feb. 12 (Xinhua) — Preventing VAT evasions should be one of the priorities of the Slovak EU Presidency starting this July, confirmed Andrej Kralik, head of the European Commission’s Representation in Slovakia. Europe is annually losing as much as 168 billion euros (189.5 billion U.S. dollars) on tax evasions… – Continue reading
If the apparent demise of the Coalition’s push to increase the GST shows anything, it’s that Australians are unwilling to accept tax reform unless it is obviously fair. It is right to think that rich people should pay more tax than the poor. Happiness studies show an extra dollar means… – Continue reading
If Swiss banking secrecy laws gave Switzerland the world banking capital status, Monaco’s residence policy gives its realtors a thriving business. What is common between the Canadian Raonic who lost in the Australian Open semifinals and the Serbian Djokovic who won it? Well, they are both residents of Monaco, and… – Continue reading
