The creation of the Group of Twenty (G20) was believed to serve as a remedy to the harsh realities of the world today. The initial formation of the Group of Seven G7 could do little to avert pertinent challenges both the developing and the developed nations face frequently. So a… – Continue reading
We are all aware of “base erosion and profit shifting” or “BEPS”. On 5 October 2015, the OECD released its final reports in connection with its BEPS Action Plan including its final report on Action 15 dealing with the development of a multilateral instrument to modify bilateral tax treaties (“Final… – Continue reading
Introduction Withholding obligation Proposed amendment Comment Introduction The 2015 Taxation Laws Amendment Bill proposes an amendment to Section 35A of the Income Tax Act (58/1962), dealing with withholding percentages from payments due to non-resident sellers of immovable property situated in South Africa. The proposed amendment raises interesting questions regarding compliance… – Continue reading
The clock is ticking for American tax dodgers around the world after BNP Paribas SA’s Swiss unit and two other banks joined a U.S. program to avoid prosecution, revealing the exact methods of Swiss bankers’ legendary discretion. BNP agreed to pay $59.8 million in a program that has brought in… – Continue reading
Swaziland will implement the United States Foreign Accounts Tax Compliance Act FATCA 2010 by collecting tax from US individuals and companies operating in the country.APA learnt on Friday that the act, whose objective is the facilitation of the exchange of financial information between US and other countries where its citizens… – Continue reading
THE United States of America (USA) wants all companies of US origin, individuals and body corporates that are resident in Swaziland to report their financial information in their home country, the USA. This development is a result of Swaziland government announcing that it will implement the United States Foreign Account… – Continue reading
NEW DELHI: Concerned over the misuse of double taxation treaty with Mauritius by certain entities, the government is working on measures to check such practices, a Finance Ministry official said today. The government is in the process of revising the Double Taxation Avoidance Agreement (DTAA) with Mauritius. Tax treaty amendments,… – Continue reading
Now that’s what I call a Big Tax Case A long running court case that has become known as the ‘Big Tax Case’ appears to be reaching a conclusion. It involves Scottish football club Rangers, who went bust in 2012. After it failed, a new company was created. It bought… – Continue reading
Nigeria’s tax authority—the Federal Inland Revenue Service—has incorporated into its tax audit procedures certain of the recommendations included in the OECD’s base erosion and profit shifting (BEPS) project. For instance, the tax authority is scrutinizing transactions between Nigerian subsidiaries and their foreign related parties, especially those related parties located in… – Continue reading
18 November 2015 – The Group of 20 (G20) leaders have called for more collective action to achieve strong, sustainable and balanced growth that can be universally beneficial. In a communique issued at the end of the summit, the leaders agreed that not only do they have to do more… – Continue reading
In his seminal 1987 work Crisis and Leviathan, economic historian Robert Higgs traces the pattern of government growth as a response to catastrophic events. The federal government, in particular, grows over time through a “ratcheting up” effect, as politicians respond to disasters and catastrophes with calls to “do something,” often… – Continue reading
KPMG in Kuwait discusses plans to implement a tax on business profits, changes to the Kuwait tax authority’s (KTA) approach to deemed permanent establishments, and Kuwait’s shift away from tax holidays toward tax credits to attract foreign direct investment. TAXATION OF COMMERCIAL PROFITS Based on recent local media reports1, KPMG… – Continue reading
One of the amendments proposed in the Taxation Laws Amendment Bill (TLAB), relates to the revision of the definition of “immovable property.” This definition is significant when considering the potential tax liability of non-resident persons, especially when it comes to capital gains tax (CGT). Paragraph 2 of the Eighth Schedule… – Continue reading
Under Indian foreign exchange regulations, Indian companies having foreign investment participation are generally categorised either as Indian owned and controlled company (IOCC), or foreign owned or controlled company (FOCC). An Indian company in such cases is considered as IOCC where they are owned and controlled by resident Indian citizens and/or… – Continue reading
Globally, taxpayers are becoming more interdependent, and engage in cross-border financial activities with more regularity. With this, comes the need for enhanced co-operation and understanding across countries on issues such as tax administration and transparency, to curb tax evasion and ensure a fair allocation of taxes to tax jurisdictions. “The… – Continue reading
THE liquidation of Kingdom Bank Africa Limited (KBAL) Botswana has been derailed after creditors declined to give the liquidator, Max Marinelli, autonomous authority to sell the assets of the defunct offshore bank. KBAL depositors and debtors are predominantly in Zimbabwe where the bank originates. In a seven-hour long heated meeting… – Continue reading
President Park Geun-hye called Monday for a careful adjustment of monetary policies of advanced countries amid lingering worries over a potential Fed rate hike. Last month, the U.S. Federal Reserve kept interest rates at near zero due to global headwinds but suggested that it could raise rates by the end… – Continue reading
Foreign investors are still concerned about the retrospective taxation in India, but the concerns have alleviated a little due to assurances by the government, says John Hobster, global head (transfer pricing), EY. He tells Dilasha Seth that in terms of transfer pricing, things are changing in India not only at… – Continue reading
The value of import exemptions for the first nine months of this year exceeded what the government has budgeted for the period by more than a billion Ghana cedis. The revised budget of government estimated the value of import exemptions for the first three quarters of the year at a… – Continue reading
Across the globe, base erosion and profit shifting (BEPS) is making headlines and drawing the attention of not only governments and tax authorities but also non-government organizations, activists, lobbyists and the general public. As the public debate has spread to the Gulf Cooperation Council (GCC) countries, the focus now centers… – Continue reading
KPMG Professional Services has stressed the need for companies operating in Nigeria to always pay their tax as required by law in order to improve business performance and create shareholder value. The professional services firm made this call at a press conference to announce the launch of its survey report… – Continue reading
The OECD’s base erosion and profit shifting (BEPS) reforms do not go far enough in changing the international corporate tax system, G20 leaders have been told. In a letter to leaders at the G20 summit in Antayla, Turkey, Nobel Prize-winning economist Joseph Stiglitz and others from the Independent Commission for… – Continue reading
A number of multinational companies have been in the news recently for alleged tax malpractices. Various countries which are facing budget deficits are convinced that additional tax revenues can be collected, especially from multinational companies. What is it all about? A business typically faces many risks. A risk is the… – Continue reading
Gaborone — Clients of Standard Chartered Bank Botswana should brace themselves for exciting times with the launch of the offshore fixed income proposition under its wealth management portfolio. Speaking at a breakfast launch with clients and media, the head of wealth management for Botswana and Southern Africa at Standard Chartered… – Continue reading
On November 13, 2015 the UK HM Revenue & Customs (HMRC) published a policy paper setting out planned negotiations on Double Taxation Agreements (DTAs) and Tax Information Exchange Agreements (TIEAs). According to the policy paper HMRC will begin negotiations on double taxation agreements with: • Nepal • Romania • Trinidad… – Continue reading
MELAKA: Some 180 participants from 47 countries will attend the five-day 36th annual Technical Conference of the Commonwealth Association of Tax Administrators (CATA) here from tomorrow. The Inland Revenue Board (IRB) said among the countries taking part in the conference are Australia, South Africa, Brunei, India, New Zealand, Canada, Pakistan,… – Continue reading
Telecoms giant MTN Rwanda is in talks with the revenue authority to settle a Rwf9 billion ($12 million) tax dispute out of court. In a case that has lasted over two years, the Rwanda Revenue Authority dragged MTN Rwanda, the country’s largest mobile phone services provider by market share, to… – Continue reading
The Organisation for Economic Cooperation and Development Global Forum on Transparency and Exchange of Information for Tax Purposes has revised its Phase 2 rating for Cyprus to ‘largely compliant’. Following the initial Phase 2 assessment that was carried out in mid-2013, Cyprus was assessed as ‘non-compliant’ in two of the… – Continue reading
An ED officer said, “In spite of earning a profit in the first few IPL seasons, Shah Rukh failed to provide any satisfactory explanation for selling the equity shares within a year, that too to a company situated in a tax haven”. Mumbai, November 11 (PTI): The Enforcement Directorate has… – Continue reading
Macky Sall, the Senegalese president, tells journalists on the sidelines of the Malta migrants summit that Africa would have no need of handouts if wealthy governments stopped multinationals avoiding legitimate taxation in their countries African leaders have rejected a European Union bid to curb migration with aid payments as “not… – Continue reading
G20 countries spend over 15 times subsidizing the coal and oil industry than developed countries provide in adaptation finance to poor and vulnerable countries, said Oxfam today, ahead of the G20 Summit in Antalya, Turkey. Oxfam also urged the G20 leaders to tackle fundamental reforms to ensure the benefits of… – Continue reading
VALLETTA) – Senegalese President Macky Sall called Thursday for multinationals to pay their fair share of taxes following a summit with EU leaders aimed at curbing the poverty fuelling mass migration to Europe. Sall also said Africans should receive a a fair price for their natural resources when he addressed… – Continue reading
According to the Brazilian FM Mauro Vieira, the country is in talks for an agreement to avoid double taxation in air transport with Egypt. The Arab country plans on creating the route once the deal is in place. Riyadh – The Egyptian carrier EgyptAir could launch a route to Brazil,… – Continue reading
THE South African Revenue Service (SARS) is planning to pay more attention to ensuring that medium and smaller companies, and those in the “cash economy”, pay their taxes. This comes after several years in which the focus has been mainly on tackling non-compliance in the large business sector. SARS group… – Continue reading
The Common Reporting Standard (“CRS”) will impose new investor due diligence and reporting obligations on funds and other financial institutions based in “early adopter” participating jurisdictions, with effect from January 1, 2016. According to the OECD, all major financial centres have now signed up to the standard. Financial institutions should… – Continue reading
To increase the scope of income tax laws, GCC countries are pursuing tax determinations with significantly broader interpretations of activities or actions that constitute doing business in-country. New concepts like Virtual Service Permanent Establishment and dependent agents are being used in Saudi Arabia and Kuwait to determine taxable presence or… – Continue reading
Luanda — A substantially Intergovernmental Agreement under the Foreign Account Tax Compliance Act (FATCA) was signed Monday in Luanda between the Ministry of Finance and the government of the United States of America, represented by its ambassador to Angola. According to the Internal Revenue Service (IRS), the US tax authority,… – Continue reading
Headline: G20 among biggest losers in large-scale tax abuse – but poor countries relatively hardest hit G20 countries are the biggest losers when US multinationals avoid paying taxes where they do business. This is the main finding of a new report on the global tax system, ‘Still Broken,’ released by… – Continue reading
A paradigm shift in the way business is conducted is taking place as new base erosion of profit shifting (BEPS) rules are aligned with tax systems, but more tax certainty and rules that suit specific African circumstances are needed, a Deloitte OECD Transfer Pricing Guidelines seminar heard on Wednesday, 04… – Continue reading
The Taxation Laws Amendment Bill and Tax Administration Laws Amendment Bill were tabled in Parliament on 27 October 2015. The Acts introduce the legislative amendments for the 2015 year based on the Budget Speech delivered in February 2015. Following from our previous article on legal professional privilege, we note that… – Continue reading
Kenya’s tax authority has launched a campaign to encourage people to report evasion and to crack down on staff misconduct, it said on Tuesday, after media allegations of corruption. The Kenya Revenue Authority (KRA) said it will vet staff for misconduct and step up efforts to prevent abuses when calculating… – Continue reading
Article by Patrick W Martin and Ashley Fife With a net worth of USD77.1 billion, Mexican telecoms businessman Carlos Slim Helú was ranked the second richest person in the world in a 2015 survey.1 At the end of 2014, 16 of Mexico’s citizens were on Forbes’ billionaires list.2 As for… – Continue reading
Ghana’s financial secrecy – the tendency to facilitate tax evasion, money laundering and illicit financial transfers – has been rated at a fairly high 67 per cent. The Tax Justice Network, an organisation concerned with tax havens and tax evasion, ranked Ghana 48th out of 92 territories, in its 2015… – Continue reading
Although Finance Minister Nhlanhla Nene played it very close to his chest regarding the specifics of tax reforms we can expect in the February 2016 Budget, we’ve compiled a snapshot of the possible tax reforms announced in his 2015 Medium Term Budget Policy Statement. Corporate income tax There are great… – Continue reading
Transfer pricing by multinationals has cost South Africa an estimated R250 billion over three years and, with it, lost tax revenue. This is according to Sunia Manik, group executive for the large business centre at the SA Revenue Service (Sars), adding that it was being done through “service payments” made… – Continue reading
x The Kenya Revenue Authority (KRA) has slapped higher taxes on importers of second-hand vehicles ahead of a new duty that will push the prices up by Sh200,000. The revenue authority reviewed the current retail selling price of second-hand vehicles in October 15. This is the benchmark the taxman uses… – Continue reading
NEW DELHI: Dismissing apprehensions of Mauritius being used to route black money as “misconception”, its Prime Minister Anerood Jugnauth has termed the issue as an aberration in the “very special” ties with India and hoped that revision of their tax treaty won’t harm its interests. Stating that Prime Minister Narendra… – Continue reading
The opaque governance structure of sports federations makes them less accessible to independent oversight and therefore more prone to corruption, the deputy managing director at Transparency International, a global anti-corruption movement, told Sputnik. ST. PETERSBURG (Sputnik) – Earlier this year, separate investigations by US and Swiss prosecutors uncovered deep-rooted corruption… – Continue reading
The South African Revenue Service (SARS) has issued an interpretation note to provide guidance on the term “place of effective management” for the purposes of determining the tax residence of a company in South Africa. SARS notes that, in general, a resident is liable to income tax on gross income… – Continue reading
First it was the scourge of public sector corruption, until now the mortifying spectacle of South Africa’s post-apartheid transition. Now, with the ground shifting beneath the world’s sclerotic economy – and the past few years have produced more tremors than ever in the 21 years of democracy – it’s a… – Continue reading
