Category: A-E

Bank Leumi Investors Decry Shady Dealings

MANHATTAN (CN) – Israel’s largest bank helped procure sham loans for clients and advised them to dodge taxes in other ways, a shareholder class action says. Michael Porat, a citizen of Israel, filed the 57-page complaint against Bank Leumi and various international subsidiaries in New York County Supreme Court. Sixty-one… – Continue reading

UK finance minister planning ‘diverted profits tax’: Sunday Times

(Reuters) – Britain’s finance minister, George Osborne, is planning to introduce a new “diverted profits tax” targeting multinational companies judged to have shifted profits overseas to avoid tax, the Sunday Times newspaper reported, citing government sources. The 25 percent levy, more than corporation tax which is set at 20 percent,… – Continue reading

Profits, But No Tax Bill

Eleven S&P 500 companies reported profits for calendar 2014 but will be paying no corporate income taxes. Nearly a dozen profitable U.S. companies are paying no corporate income taxes for 2014. A USA Today article on Wednesday said that 11 companies in the Standard & Poor’s 500 had an effective… – Continue reading

11 big profitable companies pay no tax

You’re probably figuring out how much you owe the tax man for 2014 about now. The answer for a handful of big profitable companies is zilch. There are 11 companies in the Standard & Poor’s 500, including tire maker Goodyear Tire & Rubber (GT), electronic component maker Eaton (ETN) and… – Continue reading

How HMRC is tackling tax arrangements similar to Starbucks’

The Public Accounts Committee (PAC) met last month to ask HM Revenue & Customs (HMRC) about its efforts to curb tax avoidance, including how HMRC has developed its transfer pricing approach to counteract tax arrangements such as those by Google, Amazon and Starbucks. Present at the hearing on February 11,… – Continue reading

HSBC ‘not representative’ of Swiss banking

Helping tax cheats or money launderers has never been an integral strategy of the Swiss financial centre, Swiss Bankers Association (SBA) chief executive Claude-Alain Margelisch tells as the HSBC ‘Swiss Leaks’ scandal continues. The unsavoury activities of HSBC, UBS AG (NYSE:UBS) and others, brought into the public domain by… – Continue reading

Drugmaker Mylan’s 4th-qtr profit rises on strong demand in N. America

March 2 (Reuters) – Generic and specialty drugmaker Mylan Inc reported a rise in quarterly profit and revenue, driven mainly by strong demand for its generics in North America. Net profit attributable to the company’s common shareholders rose to $189.2 million, or 47 cents per share, in the fourth quarter… – Continue reading

Commerzbank raided over possible tax evasion

Tax investigators and police have raided commercial offices in Germany as they looked into allegations of large-scale tax evasion with regard to profits made in Luxembourg. Commerzbank was at the center of the searches. Media reports said police had raided scores of office premises across Germany on Tuesday as investigators… – Continue reading

No wonder Nick Clegg has gone quiet on tax dodging: His wife’s paid by law firm that helps rich avoid tax and his father is chairman of bank with ties to tax haven

‘His failure to make more noise is odd’ says prominent tax QC His father, Nicholas, has worked for banks operating in tax havens Wife, Miriam Gonzalez Durantez’s, firm advertises ‘tax-planning services’ Lib Dems insist there is no conflict of interest involved in his position Not long ago, a law firm… – Continue reading

Regulators Increase Scrutiny On Banks Over Tax-Avoidance Derivatives

Bank of America and four other banks have been queried by financial regulators about a complex trading maneuver that allows hedge funds to escape certain taxes. Reuters Financial regulators are heightening their focus on banks involved in complex international trades designed to skirt taxes, the Wall Street Journal reports. The… – Continue reading

Israel regulator seeks bank provisions to cover possible tax settlements-Army radio

Feb 26 (Reuters) – Israel’s banking regulator has demanded that two of Israel’s largest banks set aside money to settle possible U.S. tax evasion investigations, Army Radio reported on Thursday. Citing an unnamed source, the radio said the request was made to Hapoalim, Israel’s largest bank, and Mizrahi Tefahot, the… – Continue reading

Coutts’ Swiss operation faces German investigation over tax evasion claims

Bank’s subsidiary in Switzerland is already being investigated by US authorities about whether it helped Americans evade tax The venerable Coutts bank, home of the Queen’s personal accounts, has been drawn into the mounting controversy about private banking with an admission that its Swiss arm is under investigation for aiding… – Continue reading

Tax break for Gilead as overseas profits jump 81%

Profits outside US exceed non-US sales for company selling $1,000 a pill HepC therapy Gilead Science, whose $1,000-a-pill hepatitis C treatment is one of the world’s most expensive drugs, is avoiding billions of dollars in US taxes by booking profits overseas. The company, which has operations in Ireland, reported foreign… – Continue reading

Citigroup unit probed by more authorities over money laundering

[NEW YORK] Citigroup Inc said additional government authorities have started probes of possible breaches of anti-money laundering laws at its Banamex USA unit. The Financial Crimes Enforcement Network, a unit of the US Treasury, and the California Department of Business Oversight have asked the company for information on its compliance… – Continue reading

HSBC chiefs to testify in tax scandal on tax evasion

First there was money laundering, then foreign-exchange rigging and now tax evasion. Politicians and analysts are asking if big banks became too big to manage from being too large to be allowed to fail HSBC Europe’s biggest bank, has endured a string of scandals and paid millions in penalties to… – Continue reading

FATCA: The End of ‘Shadow Boxing’ in the Offshore Trust Industry

Not long after the U.S. Department of Justice’s Tax Division (“DOJ”) made international headlines in 2009 for its bombshell announcement that it had entered into a deferred prosecution agreement with the United Bank of Switzerland (UBS), lawmakers in Washington, D.C. began reviewing the testimony of hundreds of UBS’s U.S. clients… – Continue reading

We stayed, you didn’t: Post-conflict Africa grapples with tensions of returnees from the diaspora

Although the importance to Africa’s diaspora is largely discussed around remittances, many Africans are also coming back to join the public service. SOMALIA’S parliament just approved a new parliament, a crucial step on the road to voting on a new constitution and presidential elections scheduled for 2016. A key role… – Continue reading

How to navigate transfer pricing in Brazil; Deloitte advises

São Paulo, Brazil. International transfer pricing is able to take place in Brazil, outside of the OECD While Brazil is not a member of the OECD, many multinational groups there are able to successfully navigate international transfer pricing standards, yielding effective results The economic view of Brazil has always been… – Continue reading

Was Bank Leumi too hasty in revealing U.S. clients’ info to the IRS?

The issue of whether Israeli banks should take the Swiss approach and refuse to disclose customer identities may be a moot point, in light of a new international anti-tax-evasion treaty that is taking shape. There is a direct line connecting the disclosure of the identities of 6,200 Israelis with Swiss… – Continue reading

Does tax avoidance among global corporates put UK SMEs at a disadvantage?

The spotlight is firmly on tax reduction among large global firms operating in the UK – but is the practice putting smaller domestic companies on the back foot? The HSBC tax scandal, wilfully fuelled by politicians looking to appear tough on what they call immoral tax practices, has put the… – Continue reading

The Quiet Man Who Made Big Trouble for Little Luxembourg

Antoine Deltour sees himself as “just a little auditor” who copied some tax files. Now he may face jail after those documents helped send a shock wave through Luxembourg that is reverberating across the European Union. (Bloomberg) — Antoine Deltour sees himself as “just a little auditor” who copied some… – Continue reading

Many governmentsare legislating nowrather than awaitingfinal OECD BEPS recommendations

According to Peter Willey, EY’s Channel Islands Head of Tax, the Channel Islands are likely to be impacted by decisions being made now in other jurisdictions. EY recently surveyed its tax policy leaders in 32 jurisdictions to ask them to forecast the tax policy outlook for 2015 in their jurisdiction…. – Continue reading

Tax System Gives Edge To Foreign Buys Of U.S. Firms

The Treasury Department’s crackdown on tax inversions last year has slowed but not stopped the movement of U.S. headquarters abroad as American businesses try to reduce tax bills and foreign firms seek to grow. Indeed, with U.S. companies now virtually barred from relocating overseas in order to trim taxes, the… – Continue reading

MNCs Beware: Country-By-Country Reporting Is Here!

UK, US, Australia, Brazil, India- governments of developed and developing countries are battling profit shifting by MNCs such as Amazon, Google, Apple and Starbucks. The allegation- MNCs are shifting profits to jurisdictions where there is little or no tax to be paid. The solution- OECD’s BEPS action plan which, among… – Continue reading

Daily Telegraph provokes fresh outrage over reporting of ‘suicides’ at News UK

Mental health charities and senior journalists took to social media to urge newspapers to think carefully about how they report suicides, after the Daily Telegraph published a story concerning the death of two employees at News UK, the publisher of the Times and the Sun. On Twitter and various online… – Continue reading

Revealed: Top firm funding Labour is the one savage for promoting tax avoidance!

Labour took £386,000 from PricewaterhouseCoopers in last quarter of 2014 Accountancy company accused of helping clients slash tax bills Former Labour minister says it was ‘inappropriate’ to accept donation Ed had said donors accused of tax avoidance not allowed on his watch Labour was accused of hypocrisy last night as… – Continue reading

Caterpillar Hit With $1 Billion Demand From IRS

Caterpillar, Inc. (CAT), the heavy equipment maker is now under scrutiny as the IRS now demands $1 billion in taxes and penalties. This should come as no shock after the company faced Senate scrutiny in 2014 over its tax plans. Tax Woes The company deals in the designing, manufacturing and… – Continue reading

EU seeks to force firms pay tax where profits earned

A fresh drive by the European Commission to ensure companies pay their tax where they make their profits could have far-reaching consequences for Irish corporate tax revenue. Some new pieces of legislation will be presented over the next few months, but one of the biggest could be the revival of… – Continue reading

Le Perigord owner pleads guilty in tax case

NEW YORK â?? A founder of famed New York City restaurant Le Périgord faces a potential three-year prison sentence that could take him away from the paragon of traditional French cuisine after he pleaded guilty to hiding income in offshore bank accounts. Georges Briguet, 77, admitted during a Brooklyn federal… – Continue reading

Bernie Sanders attacks Business Roundtable, offshore tax havens

Sen. Bernard Sanders took aim at some of America’s biggest corporations Wednesday in his crusade to raise taxes on the wealthy, accusing the companies of “legalized tax fraud” for using off-shore banks to avoid U.S. taxes. Mr. Sanders, the ranking member on the Senate Banking Committee, released a report that… – Continue reading

EU launches drive to stop tax evasion by multinationals, plans for new rules next month

BRUSSELS (AP) — The European Union has launched a drive to combat tax evasion following a series of probes into rules that allow multinationals to slash their bills in Luxembourg, Ireland and the Netherlands. The EU’s executive commission said Wednesday that it will propose new tax legislation next month, including… – Continue reading

Vern Krishna: Corporate barons vote with their feet

The abolition of unfair taxes was one of the foundational principles of Magna Carta, a document that King John assented to on June 15, 1215 at Runnymede, England. Taxation must be fair, and requires the consent of the people. There is no more unfair aspect of fiscal law than retroactive… – Continue reading

International tax cheats in ATO’s sights

The Government may have retreated on its promises to crack down on multinational IT companies avoiding tax, but the Australian Tax Office says it’s on the case. Less than a year ago the ATO appointed Andrew Mills, a tax lawyer from outside the government bureaucracy, to the important role of… – Continue reading

Shire structure puts spotlight on tax

Drug firm has come out fighting after allegations it engaged in tax avoidance on an industrial scale Ireland’s largest drug company has come out fighting following allegations that, with its tax adviser PricewaterhouseCoopers, it has engaged in tax avoidance on an industrial scale – as alleged by the public accounts… – Continue reading

UK financial watchdog investigates HSBC over claims of aiding tax evasion

An FCA spokesman said the regulator faced difficulty in pursuing action against HSBC because the behaviour publicised so far involved its Swiss unit, HSBC Private Banking (Suisse) SA, which the spokesman said was beyond the FCA’s jurisdiction. Britain’s financial watchdog said it was investigating HSBC following reports it helped clients… – Continue reading

Australian Billionaire Gerry Harvey Accuses Tax Lobbyists Of Pushing Multinational Companies’ Interests

Australian retail billionaire Gerry Harvey slammed the country’s powerful business lobby groups for pushing the interests of profit-shifting multinational corporations ahead of Australian companies. Harvey said companies that pay their fair share in taxes have no voice in government. The billionaire retailer spoke after it was publicly revealed that Apple… – Continue reading

The art of not curbing investment

If the Davis tax committee’s recommendations are followed, tax avoidance could be effectively reined in. Zeroing in on the super-wealthy and tax reluctant remains at the top of the global agenda as budgets across the world grow increasingly hungry for extra revenues. Now a draft report from the Davis tax… – Continue reading

Ackman Says Tax Inversion Rules Could Lead to U.S. Drugmakers Selling to Overseas Buyers

(Bloomberg) — The backlash against acquisitions meant to skirt U.S. tax laws could spur more midsize U.S. drugmakers to sell to overseas buyers, Bill Ackman, the billionaire activist hedge fund manager, said Thursday. Takeover activity in 2014 was highlighted by U.S. companies — including Medtronic Inc. and Pfizer Inc. —… – Continue reading

seminar highlights FATCA and CRS challenges for 2015

Local businesses still have a lot to consider for the next stages of the Foreign Account Tax Compliance Act (FATCA) implementation, delegates heard at a recent breakfast seminar hosted by EY. The event, led by Wendy Martin, EY’s Tax Executive Director, highlighted the recent updates made to the FATCA guidance… – Continue reading