More private Swiss banks are suffering slumping profits, with a crackdown by the US authorities on tax cheats having a big effect. A study by consultancy firm KPMG and Switzerland’s University of Saint Gallen found that of the 94 they examined more than a third did not make any profit… – Continue reading
Using the code name Hot Lips with Swiss banking representatives, an 83-year-old Delray Beach man conspired to hide more than $1 million from the Internal Revenue Service in foreign bank accounts. Bernard Kramer pleaded guilty Tuesday in New York federal court before U.S. District Judge Alvin K. Hellerstein, admitting he… – Continue reading
Reasons given by the bank for refusing to publish findings of an investigation into alleged tax evasion remain unconvincing When commodities giant Glencore publishes its half-yearly report on Wednesday, it is unlikely to mention what may be a significant victory for the firm. This relates to an investigation into allegations… – Continue reading
Companies with links to John George Russell are accused of entering into “tax avoidance” arrangements and are in a $3.5 million fight with the IRD. Russell – who developed a template that the Court of Appeal called a “blatant tax-avoidance scheme” – is a 79-year-old accountant being chased by the… – Continue reading
The Foreign Account Tax Compliance Act (FATCA) was enacted in 2010 by the US to target non-compliance by US taxpayers using foreign accounts. FATCA essentially requires foreign financial institutions to report information about financial accounts held by US taxpayers, or by foreign entities in which such taxpayers hold a substantial… – Continue reading
Manila (AFP) – Philippine world boxing champion Manny Pacquiao has won a Supreme Court reprieve in his battle to avoid paying tens of millions of dollars in extra taxes, authorities said Thursday. Pacquiao will not have to post a cash bond of 3.3 billion pesos ($75.2 million) and the government… – Continue reading
If I say that Spain is a country in love with bureaucracy, your response might be: “Really…I don’t believe you for a minute?!” Sarcasm is rarely better suited to a statement than here. Yes, unfortunately a good proportion (not all) of the 2.7 million Spanish civil servants need to move… – Continue reading
Aug 21 (Reuters) – Leumi, Israel’s second-largest bank, reported a smaller-than-expected decline in quarterly net profit, as the lender’s bottom line was hit by a provision to settle a U.S. tax probe. Leumi said on Thursday it earned 290 million shekels ($82 million) in the second quarter, compared with 474… – Continue reading
Medtronic Inc’s Chief Executive Omar Ishrak has insisted that the company’s USD42.9bn deal to acquire Dublin-based Covidien Plc, and, thereby, move its tax residence from the United States to Ireland in a “corporate inversion,” is based on business logic and not corporate tax reduction. Medtronic is among a number of… – Continue reading
A new section 1305A of the UK Corporation Tax Act 2009 (CTA 2009) has been introduced by the UK Finance Act 2014 that applies to payments made from March 19, 2014 under avoidance schemes involving the transfer of corporate profits within a group. This new measure applies if: two companies… – Continue reading
JOHANNESBURG – While numerous asset managers have indicated that global equities currently offer better longer-term investment opportunities than local stocks, some investors are concerned that the rand could strengthen and dilute their offshore gains. Last year, investors with exposure to specific offshore unit trust funds benefited from gains in international… – Continue reading
Authorities in Gibraltar have slammed claims by a top Spanish official that the UK-held territory costs Spain €1 billion ($1.3 billion) a year in lost tax revenues, saying the figure is “a financial flight of fancy”. “The wealth that Gibraltar enjoys cannot continue to be based solely on an economy… – Continue reading
Despite the political and media pressure on offshore financial centers, new incorporations of offshore companies worldwide continue to grow. A new report on offshore company incorporations by law and fiduciary firm Appleby shows that new company registrations increased in most offshore jurisdictions in the second half of 2013. “As the… – Continue reading
The Cayman Islands, an important international business competitor for Bermuda, is expressing “consternation” that they have been included on a new list of high risk jurisdictions for financial crime. There are a total of 95 countries listed including Brazil, Afghanistan, Cuba, Russia, China, Iraq, the Republic of Congo and Jamaica…. – Continue reading
The government will strengthen taxation standards for foreigners as part of efforts to stem tax evasion. The Ministry of Strategy and Finance said Sunday that it will submit a revised tax law to the National Assembly next month. The National Tax Service taxes foreigners residing in Korea based on the… – Continue reading
Serbia’s Information Commissioner has warned that banks must have the full consent of customers before information is passed to US tax authorities under the terms of FATCA, and that it would be illegal for customers to be declined services if they refuse to give consent. The comments were made by… – Continue reading
Never heard of FATCA? You will. FATCA—the Foreign Account Tax Compliance Act—is America’s global tax law. It was quietly enacted in 2010, and after a four-year ramp up, it’s finally in effect. What is most amazing is not its impact on Americans—although that is considerable—but its impact on the world…. – Continue reading
A tax avoidance scheme that routed a film financing venture’s profits via Employee Benefit Trusts at the behest of the venture’s owner, an ex-accountant, has been blocked by a tribunal. Operated by John Dryburgh, a former partner with Deloitte & Touche, the scheme involved extracting profits from a series of companies named… – Continue reading
Legislation which will establish Scotland’s first tax collection system for 300 years will be approved today by Holyrood. MSPs are expected to pass a bill from the Scottish Government which will set up Revenue Scotland – the new body which will collect two newly-devolved taxes. Finance Secretary John Swinney said… – Continue reading
Switzerland is cooperating with French tax authorities over an investigation of alleged tax fraud involving former French footballer Marcel Desailly. The notice of Swiss cooperation was published on Tuesday in the Federal Gazette. Desailly, captain of the French football team from 2000 to 2004, allegedly holds or has held assets… – Continue reading
Most expats forget about their tax status once they have left Britain and assume they pay taxes in the country where they live. To some extent this is true – but HM Revenue & Customs regularly challenges the validity of non-residence claims and the long-arm of the tax man can… – Continue reading
The Spanish Government yesterday stepped up its campaign of unsubstantiated accusations against the Rock by claiming that Spain was losing out on one billion euros in taxes every year because of Gibraltar’s fiscal regime. The spectacular claim was made by Iñigo Méndez de Vigo, Secretary of State for the EU… – Continue reading
US has long tried to block tax inversions – with success – See more at: http://www.independent.ie/business/world/us-has-long-tried-to-block-tax-inversions-with-success-30520958.html#sthash.cT9EIpv4.dpuf US authorities have grappled for more than 30 years with corporate deals known as inversions by which American companies shift their tax domiciles abroad to avoid US taxes. Fifty-two substantial deals like this have occurred… – Continue reading
LONDON: Scottish explorer Cairn Energy plc today said it is working with the newly elected government to resolve a tax dispute that has stalled sale of its 10 per cent stake in Cairn India Ltd. “Cairn continues to seek resolution of the tax issue in India and will take all… – Continue reading
High Court supports Tax Appeal Tribunal’s decision on SBI High Court has approved the decision made by the Tax Appeal Tribunal, which supports the decision made by Maldives Inland Revenue Authority’s (MIRA) for State Bank of India (SBI) to pay MVR 55.6 million in the form of additional tax. The… – Continue reading
Monaco, the tax haven on the French Riviera, is experiencing a luxury-housing boom that includes the world’s most expensive penthouse as developers prepare for an influx of millionaires and billionaires escaping higher taxes or a loss of banking privacy. A “flow” of new residents is emigrating from Switzerland, where financial-secrecy laws… – Continue reading
U.S.-China Agreement Requires Financial Institutions to Increase Transparency and Enhance Reporting Wolters Kluwer Financial Services recommends that financial institutions in China should take steps toward enhancing their data and reporting capabilities on financial accounts held by U.S. taxpayers in China as part of the Foreign Account Tax Compliance Act. This recommendation… – Continue reading
The Isle of Man’s Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital with Luxembourg is now in force. The agreement was signed on April 8, 2013 in London between Eddie Teare MHK, the Isle of Man’s… – Continue reading
(MENAFN – Kuwait News Agency (KUNA)) A double-taxation avoidance agreement between Japan and Oman is expected to enter into force next month, the Japanese Foreign Ministry announced Monday.Japan notified Oman on Sunday of the completion of its internal ratification procedures for the treaty on the avoidance of double taxation and… – Continue reading
The country’s largest biotechnology manufacturer, CSL, says government and community complacency puts Australia at risk of missing out on future jobs as companies invest where workers are more productive, tax rates are lower and governments are more supportive. The $33 billion blood plasma and vaccine maker said Australia urgently needs… – Continue reading
Abu Dhabi, 18 August 2014: Abu Dhabi Commercial Bank ( ADCB ) announced today the launch of commercial offshore banking products through its Jersey branch. Eligible ADCB wholesale banking clients will now have the option to diversify and preserve their resources with full flexibility and control. Clients will be able… – Continue reading
(Reuters) – The U.S. government has grappled for more than 30 years with corporate deals known as inversions in which U.S. companies shift their tax domiciles abroad to avoid U.S. taxes. Fifty-two substantial deals like this have occurred since 1983, about half of them since the 2008-2009 credit crisis, according… – Continue reading
Two women have challenged the constitutionality of a Canada-U.S. agreement to share the tax information of U.S. citizens resident in Canada, with the IRS. But an expert in U.S. tax law says that these individuals, most of whom consider themselves Canadians, could be worse off if the lawsuit succeeds. “If… – Continue reading
Law360, Washington (August 18, 2014, 5:20 PM ET) — Medical device manufacturer Zimmer Holdings Inc. is protesting a $79 million Internal Revenue Service assessment arising from transfer pricing adjustments that the agency made on transactions, including licensing agreements, between itself and a Dutch subsidiary, according to court records made public… – Continue reading
Minister of Finance Bob Richards confirmed this week that under the Bermuda-UK FATCA Intergovernmental Agreement [IGA] model 2, Bermuda and the UK have agreed the inclusion of a Limited Capacity Exempt Beneficial Owner Category in Annex II of the IGA. The effect of this amendment will mean that there will… – Continue reading
On July 21, 2014 the OECD released the full version of a new global standard for the exchange of financial information in tax matters “OECD\Standard for Automatic Exchange of Financial Account Information in Tax Matters” The new standard which will be presented for formal adoption by the OECD Members in… – Continue reading
For years, chief executives have complained bitterly about the United States corporate tax code, arguing that it is too complicated and that rates are too high. The issue has reached a near boiling point this summer as many large American companies have sought to buy smaller foreign rivals so they… – Continue reading
Northern Ireland looks set to be handed the power to slash corporation tax in a move with the potential to significantly boost our stuttering economy. In a development which could transform international investment, senior sources in London and Belfast predict that an announcement will be made no later than October… – Continue reading
To some, US companies switching their tax residency to gain a tax advantage are economic “traitors.” To others, they are victims of a United States tax code that effectively punishes them for investing at home and encourages them to look for opportunities overseas. In this Tax-News Topical Focus, we try… – Continue reading
On 20th of June, the double tax treaty (DTT) between Cyprus and Norway was published in the official Government Gazette. Double taxation avoidance between the two countries is regulated by the 1951 DTT in place between Norway and the UK extended in 1955 to include several British colonies, including Cyprus. The… – Continue reading
SRINGFIELD — Republican Bruce Rauner not only has personal investments in the Cayman Islands, but he presided over his former private equity firm as it set up other investment vehicles in the Caribbean tax haven known for its secrecy. The Chicago Sun-Times verified through the Cayman Islands’ government-run online business… – Continue reading
On 20th of June, the double tax treaty (DTT) between Cyprus and Norway was published in the official Government Gazette. Double taxation avoidance between the two countries is regulated by the 1951 DTT in place between Norway and the UK extended in 1955 to include several British colonies, including Cyprus…. – Continue reading
USA Today published a story last week entitled “20 big profitable companies paid no taxes.” Using data provided by S&P Capital IQ, the newspaper identified 20 firms that paid no federal taxes in the second quarter of this year despite reporting $4.4 billion in second quarter profits. Collectively, these 20… – Continue reading
With new laws in place, recovery from Swiss banks can be little easier provided the government shows sincerity in taking action against tax dodgers Finance Minister Senator Ishaq Dar in recent days has expressed the government’s firm conviction to bring back untaxed money of “US$ 200 billion” stashed in… – Continue reading
The sharemarket has settled into a consolidation phase at between 5400 and 5600 index points, mirroring changes in overseas markets. While analysts are confident the current reporting period will not produce unexpected changes to their forecasts, international political instability makes further upward movement in prices unlikely. Compared with overseas markets… – Continue reading
The Canada Revenue Agency is speeding up the frequency of reassessments of Cameco’s tax returns in what may be an attempt to pressure Cameco to settle out of court. Cameco’s cash is being tied up as they are required to remit 50% of each disputed bill. Cameco could ultimately be… – Continue reading
Urges Illinois-Based Hospira Not To Turn Its Back On America To Dodge Taxes Senator warns of another potential corporate inversion at U.S. taxpayer expense [CHICAGO, IL] – In a letter to the CEO of Lake Forest, Illinois-based Hospira, U.S. Senator Dick Durbin (D-IL) urged the company not to turn its… – Continue reading
Chinese yuan-denominated transactions in Taiwan have increased, according to central bank data. Increased business activity is expected to bolster ties between the two Asian economies. Chinese yuan-denominated deposits in Taiwanese banks increased on a month-on-month basis, for the month of July. The move highlights the growing interest in transactions related to the… – Continue reading
Barack Obama, presiding over an unusually dismal post-recession economy, might make matters worse with a distracting crusade against the minor and sensible business practice called “inversion.” Obama gave a 2013 speech regretting that Maytag workers in Illinois lost their jobs when the plant moved to Mexico but rejoicing that more… – Continue reading
Letter-writer Hank Brennan correctly states that tax inversion is a tax avoidance, rather than evasion (“Inversion not a crime,” Reader Forum, Aug. 11). However, like boards of directors off-shoring American corporations as they earlier off-shored American jobs, he is looking at only one stakeholder: stockholders. There are three other stakeholders… – Continue reading
