Category: A-E

Labor’s senate inquiry wants a ‘name and shame’ register for tax dodgers

New transparency requirements could see tax-dodging companies being listed on a ‘name and shame’ register, a Senate committee has proposed. The Australian Tax Office would also be forced to disclose all tax avoidance settlements which exceed a proposed $100 million threshold, Fairfax has reported. In addition, companies based in Australia… – Continue reading

The tax planner’s tightrope: morality and politics now in play

Introduction In 1934 distinguished US jurist Judge Learned Hand famously opined that “one may so arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to… – Continue reading

Companies hold cash offshore until tax reform; Jeff Flake the unorthodox Republican; and Oregon presses for fire funds

U.S. COMPANIES HOLDING CASH ABROAD WAITING FOR TAX REFORM. The high U.S. tax rate continues to encourage companies to stash cash and profits offshore while executives wait for tax reform. The Street has an interview with computing giant Cisco’s CFO Kelly Kramer on the company’s plans for more the more… – Continue reading

Tax authorities urged to be more vigilant over the super-rich

Revenue authorities need to be “vigilant” in monitoring the super-rich, according to research that called on many of them to improve their scrutiny of their richest taxpayers, reports the Financial Times. The study by the Paris-based OECD is a further sign of the pressure on tax departments to squeeze more… – Continue reading

Islamic banking ‘a possible option’ for BMIO as reorganization plan is implemented

(Seychelles News Agency) – Onshore banking activities, including the possibility of introducing Sharia-compliant banking are being considered for the Seychelles-registered Bank of Muscat International Offshore (BMIO). The Al Salam Bank of Bahrain, which now owns 50 percent shares in the Seychelles-registered Bank is engaging with the Seychelles authorities on the… – Continue reading

The Rules: Forcing companies to disclose tax strategy risks confidentiality issues

A “legislative requirement” for large businesses to publish their tax strategy could create commercial confidentiality risks IN an age where large corporates continue to engage in tax avoidance or aggressive tax planning, compelling businesses to disclose their tax strategies is, at heart, a good idea. There is a risk, however,… – Continue reading

Tax return preparers sentenced for hiding offshore account

WASHINGTON, D.C. (WDAM) –This is a news release from the U.S. Department of Justice. Two tax return preparers with offices located in California, Maryland and New York were sentenced today in Los Angeles for facilitating an offshore tax fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the… – Continue reading

China policy lenders to issue 15 bln yuan in bonds offshore

[BEIJING] China’s top economic planning agency approved two policy lenders – China Development Bank Corp (CDB) and Agricultural Development Bank of China – to issue renminbi-denominated bonds offshore, the National Development and Reform Commission (NDRC) said on Tuesday. CDB, the country’s biggest policy lender and responsible for funding large infrastructure… – Continue reading

Businesses seek cross-border tax clarity, but would they really pay more?

Would businesses really be willing to pay more tax if they had more certainty on what is acceptable for cross-border tax planning? According to a recent Grant Thornton International Business Report, three quarters of business leaders would in fact be ready to pony up more taxes in exchange for greater… – Continue reading

Tax rate on intellectual property profits would be cut to approximately 10% and appreciated intellectual property could be repatriated free of current tax under bipartisan innovation box proposal

On July 29, 2015, Charles Boustany (R-LA) and Richard Neal (D-MA) released a bipartisan discussion draft of proposed Internal Revenue Code (the “Code”) amendments that would cut the United States income tax rate on corporate profits generated from patents and certain other intellectual property to approximately 10% (the “Tax Rate… – Continue reading

…but Larger Jurisdictions are Determined to Destroy Offshore Sector in Smaller Countries

While CIBC FirstCaribbean and Heritage Bank are working to formalize the sale of assets, another offshore institution operating from Belize is yet to secure a correspondent bank. As we’ve reported previously, Bank of America has severed ties with Atlantic International Bank Limited as part of an ongoing de-risking exercise. The… – Continue reading

Prison for Accountants’ Offshore Tax Fraud

LOS ANGELES (CN) – Two tax preparers convicted of running an offshore tax-fraud scheme were given federal prison sentences on Monday, the Justice Department said. David Kalai and his son Nadav, both principals of United Revenue Service, were convicted of one count of conspiracy to defraud the Internal Revenue Service… – Continue reading

Shell pumped $20 billion a year from motorists but paid no company tax

For the third year on the trot, Shell service stations generated billions of dollars and revenue but not a cent in company tax. In fact the owners of the sunny yellow servos reported tax benefits in all three years despite total sales which may be in excess of $60 billion…. – Continue reading

Tax Horror Defying Modi Causes AIG to Shun Cover for India Deals

Prime Minister Narendra Modi needs to offer much more than just his best intentions to clean up India’s whimsical tax regime to help convince insurers. Companies from Allianz SE to American International Group Inc. are avoiding offering tax-liability coverage in India’s cross-border mergers and acquisitions market because of a relatively… – Continue reading

Tax Court: Stock based Compensation Costs Need not be Included in International Cost-Sharing Arrangements

The Stunning Altera Case Employee stock options are an important part of compensation—both as income to the executives and as a deduction for the employer. But when stock options are used by multinational companies, the tax implications are complex and sometimes baffling. A new Tax Court case has just given… – Continue reading

Luxembourg’s Euro Note Love Affair Raises Eyebrows Over Taxes

While the European single currency’s existential crisis drags on in Athens, it turns out Luxembourg likes its euros — a lot — as foreigners with accounts in the Grand Duchy try to stay one step ahead of the taxman. Luxembourg’s central bank issued 15 percent more euro notes in 2013,… – Continue reading

Ireland’s favourable tax base drives further pharmaceutical activity

Shire, the giant pharmaceutical company that relocated its head office from the UK to Ireland for tax reasons a number of years ago has surprised investors by launching a US$30bn hostile bid to acquire the American company, Baxalta, which is also involved in the manufacture of drugs to combat rare… – Continue reading

ZETI HATCHET JOB SPLASHED ONLINE: Jho Low accused of ‘PROXY WAR’ to defend ROSMAH & himself

KUALA LUMPUR – As speculation intensifies that Malaysian Prime Minister Najib Razak is on the verge of sacking central bank governor Zeti Aziz, an expose on her family’s ‘dealings’ has been splashed online. Critics of the Prime Minister claim the article was sponsored by 1MDB figure Jho Low and his… – Continue reading

CRA targeting mining-sector tax havens

Tax evasion by Canadian companies using offshore havens promises to become election issue Canadian corporations that use tax havens like Switzerland and the Cayman Islands to reduce the taxes they pay at home have good reason to worry. The Canada Revenue Agency (CRA) has been stepping up its scrutiny of… – Continue reading

Microsoft’s Offshore Profit Pile Surges Past $100 Billion Mark

Microsoft Corp.’s stockpile of offshore profits rose to $108 billion, with a 17 percent increase over the past year as the company continues reaping profits in low-tax foreign jurisdictions. The company crossed the $100 billion mark, making it just the second U.S. corporation — after General Electric Co. — to… – Continue reading

Axa Wealth sees offshore jump despite ‘unsettled’ 2015

Axa Wealth International saw its funds under management grow by 3% to reach £9.1bn over the first half of 2015, despite a changing distribution landscape creating “unsettled” conditions. Following the release of Axa Wealth’s H1 2015 results, Mike Foy, managing director at the company’s international division, said increasingly fluid distribution… – Continue reading

China Thwarts Morgan Stanley, UBS as It Opens Yuan Bond Market

When it comes to opening its $5.7 trillion bond market to global central banks, China is rolling out the red carpet. The world’s top underwriters are struggling to get in the back door. Morgan Stanley set up a joint venture that’s helped manage 30.2 billion yuan ($4.9 billion) of note… – Continue reading

US$21tril to US32tril stashed away in tax havens pose economic challenge

CAPITAL flight to offshore tax havens, estimated at between US$21 trillion to US$32 trillion, poses a major challenge especially in tackling income inequality, poverty and debt issues. In total, 10 million individuals around the world hold assets offshore, with almost half of the minimum estimate of US$21 trillion to US$9.8… – Continue reading

Justice Department Announces That Three More Swiss Banks Reach Agreements Over Tax Evasion Claims

On July 30, 2015, the Justice Department’s Tax Division announced that three more Swiss banks — PKB Privatbank AG, Falcon Private Bank AG and Credito Privato Commerciale in liquidazione SA (CPC) – have cut deals with the U.S. to resolve allegations that those institutions assisted their U.S. customers in hiding… – Continue reading

Focus on tax avoidance, not GST hikes

What is the difference between 30 per cent of zero and 20 per cent of zero? Correct: precisely $5227.27 less than a Bronwyn-Bishop-taxpayer-funded helicopter trip from Melbourne to Geelong. A reduction in the corporate tax rate, as unrelentingly espoused by the business lobby in its pro-GST campaign, may be a… – Continue reading

The World’s Wealthy are Hiding Up to $32 Trillion in Offshore Accounts

The world’s wealthiest people are hiding trillions of dollars in offshore tax havens to avoid paying their fair share of taxes, reported the Guardian. New research found that the amount of money hidden around the world is larger than what’s in the American economy. James Henry, economist and researcher with… – Continue reading

intellectual property state aid apple fiat starbucks jean-claude juncker ireland luxembourg netherlands automatic exchange of information eu legislation Tax Information Exchange Agreements

Governments that offer multi-national firms sweetheart tax deals should not be allowed to benefit if the European Union orders them to claw back the aid, according to a new report by the European Parliament’s special committee on tax rulings. Instead, the proceeds should be “returned to the member states which… – Continue reading

IRS Offshore Account Penalties Go Up, More Banks Listed

Since July 1, eleven more Swiss banks have entered deferred prosecution agreements with the U.S. government. The subject is tax evasion involving American account holders. Today, banks everywhere want to know if you are compliant with the IRS. Under FATCA, the entire world is lending the IRS a hand. Meanwhile,… – Continue reading

How did London become ground zero for the global plutocracy?

The opening of Arthur Conan Doyle’s A Study in Scarlet finds Afghanistan veteran Dr John Watson pondering his future. Inevitably, he finds himself in London, “that great cesspool into which all the loungers and idlers of the Empire are irresistibly drawn”. The century that followed saw London lose much of… – Continue reading

Lux Leaks panel banks on voter rage : New draft report calls on national governments to ‘eliminate mismatches’ in policy.

Anticipating a tough legislative fight, the European Parliament’s special committee investigating tax shelters plans to play its trump card: citizen outrage. The committee’s co-rapporteur Michael Theurer, a German MEP from the Alliance of Liberals and Democrats for Europe, told POLITICO’s German podcast that he expected “objections, difficulties and political resistance”… – Continue reading

Burger King wanted Tims HQ in U.K. for tax reasons

While preparing its bid for Tim Hortons Inc. last year, Burger King Worldwide Inc. initially wanted to set up the new parent company of Canada’s iconic supplier of double-doubles and maple-glazed doughnuts across the Atlantic in Britain, to avoid taxes. Miami-based Burger King’s first offer to buy the doughnut chain… – Continue reading

EU Urged to Ban Windfalls for Nations Giving Illegal Tax Aid

Governments that dole out tax subsidies to big companies shouldn’t be allowed to reap multibillion-euro windfalls if the European Union orders them to claw back the aid, lawmakers probing tax loopholes said. Instead, the EU should consider changing the law so that money is shared among neighboring nations that played… – Continue reading

Tax Savings Drove Valeant, Burger King Deals, Senate Report Says

Tax savings drove the acquisition strategy of Valeant Pharmaceuticals International Inc. and led to Burger King’s move to Canada, according to a U.S. Senate committee report. Taxes appear to be much more important to the deals than the companies say, according to an advance copy of the report and testimony… – Continue reading

Global Tax Transparency: FATCA, CRS, European FATCA

Understanding FATCA and having a comprehensive FATCA compliance program is essential for financial firms to limit non-compliance risk and meet obligations with relevant IGA’s. The US has made inroads on the Exchange of Information front and tax havens like Switzerland have declared a willingness to meet or even exceed OECD… – Continue reading

Look Out, Washington: Goldman-Busting Senate Panel Now Sets Sights on Government

A U.S. Senate investigative subcommittee, which has used its power for more than a decade to scrutinize corporations and financial institutions for wrongdoing, is shifting its focus to keeping tabs on the government. The U.S. Senate Permanent Subcommittee on Investigations is slated to hold its first hearing under new leadership… – Continue reading

The $100 Billion Deal Is Still Out There for Pharma

Why stop at $221 billion? Drug companies are entering another round of dealmaking, after plowing past the global record. Teva Pharmaceutical Industries Ltd.’s $40.5 billion agreement Monday to purchase Allergan Plc’s generic-medicines business puts the mechanism in place to trigger more takeovers. For starters, the remaining Allergan company — with… – Continue reading

Pharmaceutical companies accused of profit shifting not being taken to court

None of the pharmaceutical companies that are accused of profit shifting have been taken to court, the Australian Taxation Office has said in written responses to the Senate inquiry into corporate tax avoidance. Earlier in July executives from the largest global pharmaceutical companies operating in Australia were hauled before the… – Continue reading

Canadian General Investments, Limited Declares Dividend on Common Shares

TORONTO, CANADA — (Marketwired) — 07/29/15 — Canadian General Investments, Limited (“CGI” or “the Company”) (TSX:CGI)(TSX:CGI.PR.C)(TSX:CGI.PR.D)(LSE:CGI) has declared a quarterly dividend of $0.14 per share payable on September 15, 2015 to common shareholders of record at the close of business on August 31, 2015 (“the Dividend”). The Dividend is a… – Continue reading