Category: Africa

Who gains, who loses in new tax pact with Mauritius? Will FIIs run away?

India and Mauritius have signed a protocol amending the double tax avoidance arrangement between the two countries. The protocol is the outcome of an extensive and long-drawn-out negotiation process that has been going for more than a year and a half. While the text of the protocol is yet to… – Continue reading

Liberia: Africa’s unknown tax haven with much to lose

As world leaders consider what to do about the revelations emerging from the Panama Papers, Liberia’s government will be worrying about the fall-out that may cross the Atlantic Ocean from the affair. The European Union has announced it will be creating a new “tax haven blacklist”, to be released by… – Continue reading

DNB to reveal tax haven customers

Scandal-plagued Norwegian bank DNB has agreed to turn over information to state tax authorities about Norwegian customers who have held bank accounts set up in tax havens by DNB’s own operation in Luxembourg. The future of DNB’s board of directors, meanwhile, was in doubt following heavy criticism that neither DNB’s… – Continue reading

Troubling Implications of the BEPS Project: Interest Deductibility

On October 5, 2015, the Organization for Economic Cooperation and Development (OECD) issued final tax policy recommendations stemming from its Base Erosion and Profit Shifting (BEPS) project. The reports, endorsed by the G20 Finance Ministers on October 8 and by the G20 leaders at their November 15-16 summit, consist primarily… – Continue reading

Ireland’s tax treaties costing poorer countries, claims NGO

Ireland’s tax treaties with poorer countries are some of the most restrictive in the world, limiting the taxing rights of those countries, an international NGO has claimed. Action Aid said that globally, tax treaties cost developing countries billions every year. In a report released yesterday, the body said it has… – Continue reading

Mauritius Issues Draft CRS Implementation Guidance

As promised earlier this year, the Mauritius Revenue Authority (MRA) has published Guidance Notes for the implementation of the OECD’s Common Reporting Standard (CRS). The CRS, the new global standard for automatic exchange of information for tax purposes, obliges all participating countries and jurisdictions to obtain financial information from their… – Continue reading

Ethiopia’s parliament ratifies double taxation avoidance with four countries

Ethiopia’s House of People’s Representatives (National Parliament) in its regular meeting on Friday ratified a bill to avoid double taxation with Saudi Arabia, Portugal, and Democratic People’s Republic of Korea based on the agreement the nation earlier signed with those countries. The elimination of double taxation helps to increase investment… – Continue reading

South Africa Issues Draft CbC Regulations

The South African Revenue Service (SARS) has issued draft regulations for the purpose of specifying a new country-by-country (CbC) reporting standard for multinational enterprises (MNEs). Legislative amendments to the Tax Administration Act, 2011, were effected during 2015 in order to implement CbC reporting in South Africa. They implement the OECD’s… – Continue reading

No more double taxation for Zimbos working in SA

Government has gazetted a Statutory Instrument (SI) to stop double taxation of Zimbabweans living and working in South Africa or South Africans working in Zimbabwe. The provision was gazetted last Friday. Part of the SI reads: “Subject to the provisions of article 16, 18 and 19, salaries, wages and other… – Continue reading

The problem of secretive tax havens

Panama is a tax haven, but Mauritius is one with which India has a comprehensive double tax treaty. This complicates matters more. In popular Indian imagination, a tax haven is generally associated with Switzerland and its numbered bank accounts. But tax havens are numerous, have grown in importance, and are… – Continue reading

The Panama Papers And FATCA – Another Cover Up?

Tax avoidance on a grand scale is nothing new – the US President Barak Obama has led the way in tackling the issue head on with the Foreign Account Tax Compliance Act (FATCA) since 2010. FATCA demands non-American financial institutions should hand over details about accounts and investments controlled by… – Continue reading

Cyprus-India build on ties

Lobby groups and business associations from Cyprus and India are working to build trade relations between the two countries with an eye to a new double taxation agreement that is being negotiated. The two sides see mutual benefits to their cooperation. The Indian High Commissioner Ravi Bangar said in an… – Continue reading

African nations urged to rethink incentives

African governments should embrace meaningful bilateral investments agreements to foster sustainable economic growth on the continent. The call follows a report by the UN Economic Commission for Africa (ECA) on investment policies and bilateral investment treaties by Africa, indicating a huge gap between most of signed treaties and their actual… – Continue reading

Minn. Senator Proposes Taxing Corporations Based in Havens

March 31 — Minnesota Sen. John Marty (DFL) introduced legislation that would require corporations headquartered in 46 tax havens to be subject to the same taxation as domestic companies. While it’s still early in the legislative session—the bill was introduced March 29—a spokeswoman for the Minnesota Chamber of Commerce told… – 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

Kenyan appointed to head global tax administration program

Kenya has received global recognition from the Organisation for Economic Co-operation and Development (OECD), following the appointment of James Karanja, a career Kenyan tax administrator to lead the recently established Tax Inspectors Without Borders (TIWB) Secretariat. TIWB is a global scope initiative, that was launched mid last year at the… – Continue reading

GAAR still remains an irritant for FIIs, doubts persist over FII structure

MUMBAI: Anxiety still prevails among foreign institutional investors (FIIs) with regard to General Anti Avoidance Rule (GAAR), which will come into effect from April 1, 2017. While the draft rules in GAAR may have cleared the air over retrospective taxation and treatment of Participatory Notes ( P-notes), experts say doubts… – Continue reading

Communications Tax: Experts Decry New Burden On Industry

In the last few weeks, a proposed communications service tax which sought to tax voice calls, SMS, MMS, Data and Pay TV used by subscribers has dominated the telecommunications space since it was presented as a bill before the national assembly with Nigerians describing it as another way of exploiting… – Continue reading

Monitor offshore investments, IMF tells Mauritius

The International Monetary Fund (IMF) has askedMauritius to set up a ‘macro-prudential authority’ to monitor the offshore investments from the island. One of the largest destinations of such offshore investments is the Indian stock market. The proposed authority will have a central role for the banking regulator, the Bank of… – Continue reading

Botswana, Malawi sign double taxation pact

Botswana and Malawi have signed an Agreement for the Avoidance of Double Taxation that aims to facilitate closer cooperation tax issues and allow for the exchange of information between their revenue authorities.Speaking at the signing ceremony on Wednesday, Botswana’s Finance Minister Kenneth Matambo said it was also pleasing that the… – Continue reading

Seychelles and Mauritius Financial Regulators Start Cooperation

The financial watchdogs of Mauritius and the Seychelles have joined together in a Memorandum of Understanding. The Financial Services Commission of Mauritius (FSC Mauritius) and the Financial Services Authority of the Seychelles (FSA) have announced the signing of a Memorandum of Understanding (MoU) at the beginning of March. According to… – Continue reading

IRS now allows Cuban tax credit

President Barack Obama is heading to Cuba next week. When Air Force One lands on that island nation on March 20, Obama will become the first U.S. commander in chief to visit Cuba in 88 years. In advance of that historic visit, which the administration hopes will eventually lead to… – Continue reading

Mauritius Eyes Asia, Far East for Its Financial Services

Mauritius plans to sell itself as a world class financial-services hub to investment companies in Asia and the Far East to win new business, an official said. The island-nation’s Financial Services Promotional Agency plans to market the country as an international financial center, or IFC, and is already collaborating with… – 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

Mauritius lead in Zim investments

MAURITIUS has emerged as the biggest source of investment into Zimbabwe, accounting for projects worth $4,56 billion in the past five years. According to statistics released at an investment strategic meeting in Harare this week, a ZBCtv report indicated Mauritius was leading in terms of investments into the country while… – Continue reading

20 Caribbean, Latin American Nations Named Major Money Laundering Countries

Twenty Caribbean and Latin American nations have been named by the U.S. as “major money laundering” countries in the 2016 International Narcotics Control Strategy Report (INCSR) from the U.S. State Department released Wednesday, Mar. 2, 2016. A major money laundering is defined by statute as one “whose financial institutions engage… – Continue reading

South Africa CRS Regulations Come Into Effect

The South African Revenue Service (SARS) has issued final regulations that require certain financial institutions (FIs) to report on accounts held or controlled by foreign residents from March 1, 2016. The OECD’s automatic tax information exchange standard, the Common Reporting Standard (CRS), which the regulations are in response to, obliges… – Continue reading

Govt negotiating issues relating to DTAA with Mauritius

Outstanding issues relating to the existing Double Taxation Avoidance Agreement (DTAA) are under negotiation between India and Mauritius through the mechanism of Joint Working Group (JWG), Parliament was informed today. “India has proposed changes in the existing DTAA to address concerns relating to treaty abuse, around tripping of funds, double… – Continue reading

Double taxation avoidance treaty with Qatar: What is in it for Nigeria?

The federal government of Nigeria and Qatar have signed an agreement for the avoidance of double taxation on income and capital gains for investments between the two countries. In addition to the elimination of double taxation on business income, similar treaties between Nigeria and other countries provide for a lower… – Continue reading

Are all FDIs real foreign investment?

While the various reforms initiated by the Centre has led to a significant increase in FDI inflows into India, the Economic Survey feels the need for a closer examination of such FDI flows to determine whether there has been any instances of tax evasion. The survey noted that out of… – Continue reading

Experts hail withdrawal of ‘unworkable’ withholding tax

THE withdrawal of a withholding tax on service payments to foreigners, decried by many as unworkable, has been widely welcomed. The Treasury acknowledged that the tax had introduced “unforeseen issues, uncertainty on the application of domestic law and taxing rights under tax treaties”. The withholding tax was introduced into legislation… – 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

Rwanda: Revenue Body Warns Consultants Against Encouraging Tax Evasion

The Rwanda Revenue Authority (RRA) has warned tax consultants who mislead or encourage clients to evade taxes, saying they will be apprehended and punished according to the law. The tax body said there are some consultants encouraging taxpayers to under declare their returns, manipulate systems, or even default altogether. Richard… – Continue reading

The ANC’s wealth tax: Double rigging a rigged game

When a rock-star French economist comes to our country to tell us that the surest way to fix inequality is to tax the hell out of the privileged, they are guaranteed a sympathetic audience. And so we will partly have Thomas Piketty to thank when Pravin Gordhan introduces tax hikes… – Continue reading

‘Tax me if you can’: Tax activism of a different kind

It’s unlikely anybody was particularly surprised when Finance Minister Pravin Gordhan announced a number of initiatives to increase the amount of tax revenue; from sugar tax to a “tyre levy” to an increase in a number of existing sin taxes. But it’s perhaps the relaxing of voluntary disclosure rules that… – Continue reading

UK tops global table of damaging tax deals with developing countries

Treaties limit the tax poorer nations can place on British companies doing business within their borders, says ActionAid. The UK has signed a high number of tax deals with some of the world’s poorest countries, potentially depriving those states of millions in tax revenues every year, according to an analysis… – Continue reading

BUDGET2016 – IS THERE ROOM TO PAY MORE TAXES?

Anthea Scholtz calls for a careful balance between ‘spending’ and ‘revenue-generating’ activities. All eyes will be on Parliament on 24 February 2016 when South Africa’s annual national Budget will be presented by the newly re-appointed Minister of Finance Pravin Gordhan. The Budget speech has over the years given South Africans… – Continue reading

Countries that accept BEPS minimum standards may participate in global tax effort, OECD says

Any country that agrees to adopt the OECD/G20 base erosion profit shifting (BEPS) project minimum standards and pay an annual fee will be allowed to participate in future BEPS project work, according to a plan agreed to by the OECD today. The OECD’s framework for BEPS plan implementation, to be… – Continue reading

Taxation reform has to be holistic

The government reportedly wants to extend to three years the holding period for investments in listed shares to qualify for capital gains tax exemption. This accepts the need to change the present capital gains tax regime but might not be the best way to go about it. It would discriminate… – Continue reading

Gordhan to target offshore funds

FINANCE Minister Pravin Gordhan is widely expected to announce a new foreign exchange control and tax amnesty in his budget on Wednesday in a bid to encourage taxpayers who have not disclosed billions of rand worth of offshore assets to declare them and pay the due tax. The move would… – Continue reading

Tanzania: Information Exchange With Tax Bodies

Double tax treaties enable competent authorities of the treaty partners to exchange important tax information necessary for implementing the treaty or the domestic laws on taxes of every kind and description imposed. For instance, exchanges of information may be made regarding tax avoidance by companies of the contracting states.Nevertheless information… – Continue reading

Buyback Transaction Taxable As Capital Gains

Mumbai Tribunal rules buyback transaction taxable as capital gains, exempt under India-Mauritius Tax Treaty; even if considered as dividend, tax withholding does not apply This EY Tax Alert summarizes a recent ruling of the Mumbai Income Tax Appellate Tribunal (Tribunal) in the case of Goldman Sachs (India) Securities Pvt. Ltd…. – Continue reading

India’s Axis Bank seeks Gulf expansion with branch in Sharjah

Axis Bank, India’s third-largest private bank by assets, is aiming to open branches in Sharjah and Bahrain by March next year as part of plans of increasing its presence in the Arabian Gulf region, a senior executive said. Axis Bank has nine overseas offices: branches at Singapore, Hong Kong, Dubai-DIFC,… – Continue reading

Kenya to Intensify War Against Tax Evasion, Economic Crimes

Kenya will now be able to pursue individuals who use offshore companies to evade taxes and commit other economic crimes, after it signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters last week. The agreement is the most comprehensive multilateral instrument available for all forms of cooperation to… – Continue reading

The ‘extraordinary’ loophole that saw Russia threaten to brand UK as tax haven

Russia has come close to blacklisting the UK as a tax haven as concerns grow over Scotland’s booming offshore business. The Kremlin’s Finance Ministry had announced that it would officially equate Britain with traditional “fiscal paradises” like Panama, the British Virgin Islands and the Caymans. Such a humiliating move would… – Continue reading

Call to tighten UK’s new property law to crack down on ‘dirty money’

Rules should require foreign owners of prime London homes to come clean about beneficiary owners, say anti-corruption groups Large parts of London’s Baker Street, including the Beatles store, are owned by offshore trusts. New laws that aim to stop the UK being a magnet for money launderers – by forcing… – Continue reading

Why Is Monaco A Haven For Tax Defaulters?

If Swiss banking secrecy laws gave Switzerland the world banking capital status, Monaco’s residence policy gives its realtors a thriving business. What is common between the Canadian Raonic who lost in the Australian Open semifinals and the Serbian Djokovic who won it? Well, they are both residents of Monaco, and… – Continue reading