Some of Britain’s offshore companies have continued to wriggle out of new transparency restrictions according to research released this weekend. Under rules brought in on 1 July 2016, British companies need to disclose on an annual basis any changes to directors or shareholders – both being deemed “persons of significant… – Continue reading
The Federal Government on Wednesday inaugurated an eight-man committee tor review and update the National Tax Policy document. The Minister of Finance, Kemi Adeosun, while inaugurating the committee in Abuja, said the government was committed to the continuous improvement of Nigeria’s tax system as part of the dynamic framework to… – Continue reading
“Maybe lower the income tax from 25 percent to 20 percent first, then 17 percent.” The government will once again provide the public with tax break following its tax amnesty program. It is currently reviewing a plan to lower income tax rates and the possibility of establishing a tax haven,… – Continue reading
Federal Board of Revenue (FBR) and Auditor General for Pakistan Revenues (AGPR) have joined hands to check tax evasions of billions of rupees by monitoring sale and purchase activities of government vendors. “The FBR in collaboration with AGPR has put a mechanism in place to monitor and access complete data… – Continue reading
In May 2016, the Cambodian and Singaporean government authorities signed a new agreement to avoid double taxation with respect to taxes on income and on capital. What are the objectives and benefits of a double taxation avoidance (DTA) agreement? The “big-picture” objectives of the DTA between Singapore and Cambodia are… – Continue reading
Salford Council has joined the other 14 councils from across the UK that have adopted motions to support ethical procurement. Moved by Labour and Co-operative councillor Jim King, the recent motion strengthens checks in the council’s procurement to exclude businesses that engage in tax avoidance. The initiative falls in line… – Continue reading
Budget 2016 introduced a new tax called Equalisation Levy (“EL”), aimed at taxing online transactions. EL was originally mooted by the OECD in Base Erosion and Profit Shifting (BEPS) Project Final Report on Action 1 – Addressing the Tax Challenges of the Digital Economy (the “Report”). We will examine Equalisation… – Continue reading
The implementation of the goods and services tax (GST) will reduce tax evasion and improve ease of doing business by engendering a common market throughout the country, finance minister Arun Jaitley said on Monday, as he moved the modified constitution amendment bill in the Lok Sabha. “GST will ensure one… – Continue reading
The Section of Taxation of the American Bar Association (ABA) has written to the US Internal Revenue Service (IRS) saying that there is a pressing need for guidance from tax authorities due to the rapid growth of the cloud industry. The ABA noted that, although the Organisation for Economic Co-operation… – Continue reading
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
The Trinidad & Tobago government says it has prepared legislation aimed at compliance with the United States Foreign Account Tax Compliance Act (FATCA). FATCA is a 2010 federal law to enforce the requirement for United States national including those living outside the US, to file yearly reports on their non-US… – Continue reading
Countries pursuing billions in unpaid taxes push region’s wealthy to pull cash from accounts LONDON — Switzerland’s private bankers fear cash-strapped Latin American countries pursuing billions of dollars in unpaid taxes will push the region’s wealthy to pull cash from their Swiss bank accounts. For these banks, still recovering from… – Continue reading
Authorities in Greece have doubled their efforts to catch tax evaders over the last year. The Greek Finance Ministry’s General Secretariat for Public Revenue has issued an official statement asking citizens to help combat tax evasion by exercising their right not to pay for goods and services if they are… – Continue reading
The comprehensive double taxation agreement (CDTA) between Hong Kong and Russia, which was signed in January this year, entered into force on July 29, 2016, and will be in effect in Hong Kong for any year of assessment beginning on or after April 1, 2017. The CDTA is said to… – Continue reading
Indonesia will be among the first to join the group of countries adopting the Automatic Exchange of Information (AEOI) in 2018. AEOI would provide automatic exchange of tax information among the members of the group. All bank accounts in the world would be accessible for taxable assets. Dishonest and greedy… – Continue reading
In early April 2016 files leaked from a large Panama-based law firm (known as the ‘Panama Papers’) brought to the attention of many the ways in which offshore companies and structures can be used to obscure the identity of beneficial owners, some of whom have used such entities to avoid… – Continue reading
An agreement on avoidance of double taxation, which was signed today between the governments of Ukraine and Malaysia, will allow enhancing business contacts and attracting investors. Ukrainian President Petro Poroshenko said this at a joint news conference with Malaysian Prime Minister Najib Tun Razak, an Ukrinform correspondent reports. “We think… – Continue reading
The government of Panama on Tuesday announced a bill that would take a range of steps against countries that put it on their blacklists of ‘tax havens’ in the wake of the Panama Papers revelations. The legislation would impose tax, trade and migration measures on companies or individuals from those… – Continue reading
New Zealand is not being singled out for investigation as a tax haven, the European Union says. In a statement released today, the EU delegation in Wellington confirmed that a committee was assessing 28 non-EU countries’ tax policies. But media reports that New Zealand was being targeted for investigation as… – Continue reading
Transfer pricing documentation rules have come to the fore with the United Kingdom’s Brexit. The European Union and the Organization for Economic Cooperation and Development appear to apply similar transfer pricing documentation rules to multinational companies, but differences nevertheless abound. Some multinational enterprises may view these differences as nuances, but… – Continue reading
The total amount of fines handed out to Greek taxpayers with suspected undisclosed foreign assets has reached EUR810m (USD905m) as a result of recent investigations, the Government’s anti-corruption unit has announced. According to a July 29 government press release, Special Financial Prosecutor Panagiotis Athanasiou said that the Government is intensifying… – Continue reading
A revenue-neutral modification of Finland’s tax structure could boost the nation’s economic growth, the Organisation for Economic Cooperation and Development said in a recently released report. Finland has already adopted some measures to make the tax structure more growth friendly in recent years, the report, Boosting Productivity in Finland, said…. – Continue reading
How US tax inspectors fear firms and individuals are using Lord Ashcroft’s bank to hide assets and evade tax It was a stern message David Cameron took with him on his visit to the Caribbean last September: “If we’re to beat corruption, we need transparency.” And some in the region… – Continue reading
Local banks will report account holders with American citizenship to the IRS beginning in September The Knesset Finance Committee on Monday approved a series of regulations by the Finance Ministry, paving the way to full implementation of the US Foreign Account Tax Compliance Act, which was signed between the two… – Continue reading
As many are now aware, the double tax avoidance arrangement (DTAA) between India and Mauritius was amended through the protocol released last month. The direct impact summarized in one line is as follows: India shall now tax capital gains arising from alienation of shares by a Mauritius investor acquired on… – Continue reading
As worldwide pressure grows to fight offshore tax evasion, new statistics obtained by the Star show the Canadian government has convicted only 49 people and levied just $13.4 million in fines for what it calls offshore activity since 2010. These numbers are far lower than in comparable countries and show… – Continue reading
Almost every country and every government now is fighting to detect undeclared Incomes and boost their tax collection. This could potentially help various countries show and collect large taxes from offshore accounts. The renewed thrust on automatic exchange of information (AEOI) between countries could achieve what seemed like a dream… – Continue reading
Just as the Cayman Islands government was feeling confident that its relationship with the British government was better than ever and the UK was beginning to understand and accept the role of the offshore financial sector, the new prime minister, Theresa May, is believed to have ordered a clampdown on… – Continue reading
The Malaysian government won’t protect its citizens from legal action taken outside the country stemming from the scandal surrounding the state investment fund 1 Malaysia Development Berhad, a senior official said this week. Johari Abdul Ghani, who is second in command in the Finance Ministry under Prime Minister Najib Razak,… – Continue reading
A parliamentary committee on Wednesday recommended to the government to abolish double taxation in Federally Administered Tribal Areas (Fata) and additional taxes being collected on edible items upon entry into the tribal areas. The Senate Standing Committee on States and Frontier Regions (SAFRON), chaired by Senator Hilal-ur-Rehman, Wednesday took strong… – Continue reading
OXFAM has called for action to close a legal loophole that has seen a booming number of Scottish shell firms used for tax dodging and money laundering. The global charity warned that the country was becoming one of the world’s “secret tax havens where the privileged minority hide billions from… – Continue reading
With elements of the Liberal government’s 2016-17 budget coming to fruition, tax lawyers must stay up to date with the changes as their workload increases, according to a global firm partner. Speaking with Lawyers Weekly, DLA Piper tax partner Jock McCormack (pictured) said tax lawyers can expect to be busy… – Continue reading
Neutral Switzerland has got an overall rating of “largely compliant” in an international review of how well it shares information with other countries on tax matters, the finance ministry said on Tuesday. Swiss officials hailed the outcome as crucial recognition of their efforts to shed the country’s reputation as a… – Continue reading
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
MINISTER of Finance Lou Jiwei is calling for a taxation overhaul, saying innovative industries should also come under the purview of taxation to reflect a socially balanced economic growth. “Preferential tax policies are needed to boost development of new business sector, but fairness also matters,” Lou said. He was speaking… – Continue reading
Officials from the Department of Finance and the Revenue Commissioners said they are investigating recent media reports that so-called vulture funds are using a clause in Irish law to pay small amounts of tax here. Minister for Social Protection Leo Varadkar has said that the Government is “very concerned” at… – Continue reading
The world’s major economies need to deepen cooperation on tax collection as companies seek to minimise the amount they pay to governments, finance ministers said Saturday. The issue has become controversial in many countries, with multinational firms from Google to Starbucks facing accusations of not contributing appropriately to the economies… – Continue reading
Slashing rates probably won’t be the U.K.’s magic bullet. As Britain plans its way out of the European Union, politicians have been looking for ways for the country to maintain its dominance as a center for global capital. One idea: turning the post-Brexit U.K. into a tax haven. In the… – Continue reading
The Panama Papers have put the spotlight on tax avoidance once again. This is, of course, not a new issue. Before that, we had Swiss Leaks and BVI Leaks. You may be asking: how does tax avoidance work and why have policymakers struggled to rein it in? Firstly, it is… – Continue reading
Nordea has blocked 68 accounts for further analysis after finding suspicious signs in an internal investigation of the bank’s handling of the Panama Papers leaks. The bank announced some of the findings of the probe into whether it adhered to internal rules and external regulations regarding offshore structures at the… – Continue reading
The Internal Revenue Service has released new guidance on how foreign financial institutions can enter into a Qualified Intermediary agreement with the U.S. under the Foreign Account Tax Compliance Act, or FATCA. Notice 2016-42, released earlier this month, outlines the proposed QI agreement, which revises and updates the current agreement… – Continue reading
Slovakia and the United States can now exchange information for tax purposes more easily, thanks to the Foreign Account Tax Compliance Act (FACTA) agreement signed in Bratislava on July 31, 2015. “The objective of the agreement is to prevent tax evasion and tax frauds and improvement of tax collection,” the… – Continue reading
An International Monetary Fund (IMF) review has called for a comprehensive reform of the US tax system, with the aim of removing exemptions, simplifying the system, rebalancing from direct to indirect taxes, and reducing statutory rates for individual and corporate income taxes According to its annual Article IV consultation report… – Continue reading
Tax executives at U.S.-based multinational companies are having a hard time adjusting to the new rules demanded by the Organization for Economic Cooperation and Development’s Base Erosion and Profit Shifting plan, also known as OECD BEPS, according to a new survey. While OECD BEPS is not a requirement in the… – Continue reading
The latest APAs signed with taxpayers pertain to various sectors like banking, information technology and automotives In a move designed to reduce tax litigation, the Central Board of Direct Taxes (CBDT) on Monday signed seven more unilateral Advance Pricing Agreements (APAs) with Indian taxpayers. “With today’s signing, the total number… – Continue reading
The Inland Revenue Authority of Singapore has issued an e-Tax Guide on the territory’s general anti-avoidance rule in Section 33 of the Income Tax Act. The guide, issued on July 11, 2016, explains the three tests to determine whether the GAAR should apply. It includes examples on actionable avoidance arrangements,… – Continue reading
Cyprus and Jersey have signed an agreement on the Avoidance of Double Taxation on Income. According to an announcement by the Ministry of Finance, the text agreed between the two negotiating teams of the two countries will contribute to further developing trade and economic relations between Cyprus and Jersey as… – Continue reading
Tax and prosecution bodies must build the capacity to curb illicit activities that rob countries of tax revenues, said Finance Minister Pravin Gordhan on Thursday, speaking at the High Level Conference on Illicit Financial Flows at the University of Pretoria. Illicit money leaving Africa reduces the amount of resources available… – Continue reading
Multinational companies are making strides in preparing for radically changed cross-border tax and transfer-pricing reporting rules as compliance deadlines near, research by Thomson Reuters suggests, but uneasiness remains amongst tax executives about their readiness. The new rules will require multinational enterprises with annual revenues of €750 million ($830 million) or… – Continue reading
The “Big Four” global accounting firms – PwC, Deloitte, KPMG and Ernst & Young – are the masterminds of multinational tax avoidance and the architects of tax schemes which cost governments and their taxpayers an estimated $US1 trillion a year, according to an Australian taxation expert. The controversial new claims… – Continue reading
