Category: Multinational Corporations

Tax Havens Impact Canadians Too

Tax havens have become increasingly formidable players in the global economy. With increased globalization and financialization of the global economy, tax havens have become important players in the world economy. According to a report by Tax Justice Network, $21 to $32 trillion is stashed offshore. According to the World Bank, the GDP… – Continue reading

New Report Finds Corporate Offshore Tax Avoidance ‎a Growing Problem

According to a new report, secretive offshore tax avoidance practices are on the rise among multinational businesses. The report, released from the Financial Accountability and Corporate Transparency Coalition (FACT), finds that these practices put investors at risk because they are caught off guard when governments act to collect the lost… – Continue reading

UK bill to open details on multinational tax avoidance

A legislative amendment in the UK this week will give the British government the power to publish details of tax payments made by UK-based multinational corporations on a country by country basis, as tax authorities try to clamp down on the abuse of tax laws and aggressive tax avoidance. The… – Continue reading

Tax reform as new human rights agenda

Today, we see more enthusiasm for tax reform in Indonesia. Although opposed by some civil society groups, President Joko “Jokowi” Widodo’s administration continues to push its fiscal framework reform — which includes a tax amnesty and more incentives for taxpayers. Last year, the Finance Ministry issued a new tax holiday… – Continue reading

U.S. tax hunt overseas causes global headaches

There is little that can be done about FATCA and the change has to come from within the U.S. Death and taxes, life’s two certainties according to Keynes, sometimes have a causal relationship. One dies and some taxes are often associated with that event. Alternatively, one encounters so much regulation… – Continue reading

Two Major Int’l Tax Conferences To Be Held In Canada

International tax experts are to convene in Canada on August 29-31, 2016, to discuss global transfer pricing developments and other issues affecting large corporations as a result of the OECD’s base erosion and profit shifting (BEPS) project. Bloomberg BNA and Baker and McKenzie will host two events: The 3rd Annual… – Continue reading

Multinational Companies Have Increased Their Work on BEPS Compliance, Thomson Reuters Survey Finds

Two-thirds of corporate tax executives surveyed say their companies are proactively preparing for the onslaught of new tax regulations resulting from the Base Erosion and Profit Shifting (BEPS) Action Plan. That`s a 22% increase in the past year. In Thomson Reuters 2015 BEPS Readiness Survey, 54% of respondents said they… – Continue reading

Brexit Risks Losing Corporate Tax Break Worth Billions in U.K.

British multinational companies face new withholding taxes that may cost hundreds of billions of euros a year if U.K. voters decide to leave the European Union, international tax specialists say. A so-called Brexit “would have a major impact” on British corporations that have subsidiaries in the EU, said Daniel Gutmann,… – Continue reading

Report: Multinational Tax Avoidance Cost Australia $5bn in One Year

Sydney-A new report by Oxfam said Australia’s federal government lost an estimated 5 billion US dollars in revenue in 2014 as a consequence of tax avoidance by multinational corporations with Australian operations. The non-governmental organization said in its report that investments from Australian-based big companies in tax havens globally grew… – Continue reading

Being Named In The Panama Papers Doesn’t Mean You Broke the Law

The Panama Papers have recently drawn a great deal of investigation and public attention. Over 230,000 organizations and individuals were named as having set up offshore companies in tax haven like the British Virgin Islands, Panama, the Cayman Islands or the Bahamas. The public’s initial reaction was suspicion and anger toward… – Continue reading

Government of Canada Signs International Agreement on Enhanced Tax Reporting by Large Multinationals

National Revenue Minister Diane Lebouthillier announced today that the Government of Canada has taken another step to stop the unfair practice of aggressive tax planning by signing an international agreement to implement stronger international reporting obligations for large multinational enterprises (MNEs). Thirty-one other jurisdictions have also signed the agreement. The… – Continue reading

UN urges countries to stem tide of firms profit-shifting to tax havens

Unctad thinktank shows firms funnelled $221bn in 2015 through low-tax jurisdictions such as the Netherlands and tax havens in the Caribbean The UN has urged governments to stem the flow of funds to tax havens after companies funnelled $221bn (£152bn) into countries with low tax rates last year. The Netherlands… – Continue reading

Why billions of tax dollars end up offshore

ANALYSIS: Despite some action from both Labor and Coalition governments, multinationals are still using accounting tricks to avoid paying Australian tax.While politicians in Canberra bicker over whether or not to cut company tax, or whether it’s acceptable for effective income tax rates to rise through bracket creep, glaring leaks in… – Continue reading

Birong: Tax Day — the real April fools

As April 18 looms near, it’s hard not to have taxes weigh heavy on our minds. For a lot of Vermont small businesses, this day can be bittersweet. Paying taxes typically means that, as a business, you’ve made money; and for most small businesses that alone is an achievement. Small… – Continue reading

India’s tax systems withstand scrutiny over data confidentiality

Both the US and the global forum working on automatic exchange of information under OECD have endorsed the data safeguards put in place by India New Delhi: India’s tax systems have withstood international scrutiny over data confidentiality and other safeguards put in place by the government before the revenue authorities… – Continue reading

Closing tax havens will create fairer global society: U.S. economist

UNITED NATIONS, March 30 (Xinhua) — Stopping abuse of tax havens and promoting global tax cooperation will help create a fairer global society, Jeffrey Sachs, U.S. economist and UN special adviser on the Sustainable Development Goals (SDGs) told reporters here Wednesday. Sachs made the statement at a press conference here… – Continue reading

AICPA Offers Recommendations to IRS on Country-by-Country Reporting

The American Institute of CPAs has written to the Internal Revenue Service recommending some changes in the IRS’s proposed regulations for country-by-country reporting by multinational corporations of financial information to curb tax avoidance. The proposed regulations were issued last December as part of an effort by the Organization of Economic… – Continue reading

Government signs 5 more advance pricing agreements with MNCs

The government has signed five more advance pricing agreements with multinational firms. Of these, three are new agreements while two were renewals, according to consulting firm EY, which was involved in three of the deals. An Advance Pricing Agreement, or APA, is essentially a negotiated deal between a taxpayer and… – Continue reading

Lawmakers Quiz Apple, Google, IKEA and McDonald’s Over Tax Avoidance

In their latest attempt to try to stamp out tax avoidance by multinationals in the European Union, lawmakers are set to question Apple, Google, IKEA and McDonald’s over their tax affairs as EU member states fail to agree a common tax policy. Lawmakers in the EU have struggled to prevent… – Continue reading

UK Slammed Over Tax Haven Inaction as Report Shows Rich Getting Richer

The UK has been slammed over its failure to crackdown on British-controlled tax havens, with a new report claiming that the wealthiest one percent of the UK’s population have captured more than US$1.4 trillion of the country’s national growth since 2000. The report from Oxfam called on UK officials to… – Continue reading

Tax tensions between the US and Europe hit new high

In the final session of the two day Global Tax Conference at Dublin Castle yesterday, a senior Canadian tax advisor used the analogy of children playing football to describe the relationship between multinationals and government when it comes to tax. In a kids football match, he said, when the ball… – Continue reading

Colorado Moves to Close Offshore Tax Loopholes

The Colorado House of Representatives advanced a measure to close offshore tax loopholes on Monday. The move comes on the heels of a new report showing companies are doubling down on efforts to stockpile profits overseas and avoid paying U.S. taxes. Richard Phillips, senior analyst with Citizens for Tax Justice,… – Continue reading

Google And The UK Tax System – Tax Avoidance?

For several years now Google has been facing what appears to be a case of tax avoidance in the UK, at some point in time, the company went as far saying it did not make any money from business in the UK all in a desperate attempt to pay less… – Continue reading

Luxembourg set for a “huge change”

Governments around the world want more tax income. There is a widely held feeling that many international companies are basing themselves in places like Luxembourg, Ireland, and the Netherlands to avoid tax. The world’s largest countries have a plan and things will change. What will be the effect on Luxembourg,… – Continue reading

India clicks on digital economy with equalisation levy

While equalisation levy appears to be a step to counter double non taxation and protect India’s share of taxation, in its current form it may impact an Indian taxpayer more than foreign MNCs The growth of digital economy entails many benefits, but also poses various tax challenges. These include the… – Continue reading

Zambia signing its way out of tax revenues-ActionAid Zambia

A new report from ActionAid titled ‘Mistreated’ released this week has revealed that Zambia has 13 restrictive tax treaties that dramatically restrict the government’s power to tax global companies doing business on our soil and therefore unfairly limit our country’s potential to collect tax revenue. The report also found that… – Continue reading

Treasurers reassess internal structures under BEPS

The OECD’s base erosion and profit shifting (BEPS) project – which is aimed at closing gaps and mismatches in tax laws that conspire to reduce corporate tax liability – is a game-changer for treasury planning. The final reports of the BEPS Action Plan, announced by the Organization for Economic Cooperation… – Continue reading

Foreign investors risk Australian assets in Morrison crackdown as new tax rules apply

FOREIGN investors could be stripped of their Australian assets if found to have deliberately shifted profits offshore to avoid paying tax. For the first time new tax rules will be imposed on large multinational companies buying into Australia, forcing them to either pay tax on their local earnings or pack… – Continue reading

EU Tax Proposal Expected To Target Multinational Corporations

Large multinational corporations such as Amazon.com, Apple, Google and Starbucks with operations in Europe have long been able to keep the tax rate they pay in one country secret, not only from neighboring nations but also from their competitors. Critics say this lack of transparency has allowed companies to unfairly… – Continue reading

Rajan Blames MNCs For Tax Controversies

‘Multinational corporations complain all the time of excessive demand about excessive taxation, but it is also true that MNCs across the world tend to find tax avoidance and sometimes tax evasion as an appropriate technique’ Blaming multinational corporations squarely for tax controversies, Reserve Bank Governor Raghuram Rajan has said their… – Continue reading

Has globalisation made corporation tax redundant?

The debate about corporation tax intensifies. Is the tax on profit no longer viable now that the global nature of modern business is making it ever harder for individual governments to enforce? Director asks two business leaders, has globalisation made corporation tax redundant? Yes, says Stephen Herring, head of taxation… – Continue reading

Belgian MNCs Gearing Up For BEPS

A vast majority of tax directors working for multinational corporations located in Belgium fear that the base erosion and profit shifting (BEPS) project will lead to higher administrative charges, a survey of over 800 tax directors across Europe has revealed. According to Deloitte’s European Tax Survey, 85 percent of the… – Continue reading