United Kingdom Budget The Chancellor of the Exchequer delivered his Summer Budget to the United Kingdom (UK) Parliament on 8 July 2015. A number of personal, corporate and indirect tax-related measures were announced in the Budget including a reduced corporate tax rate; introduction of a bank corporation tax surcharge; a… – Continue reading
Australian QROPShave been closed down and kicked off HMRCs ROPS list bar one the LG Super Australian Superannuation scheme which is the Aussie government scheme. QROPS Specialists are offering free QROPS transfers from any Aussie QROPS to a Malta QROPS. The transfer fee and set up fee will be waived…. – Continue reading
A millionaire businessman charged over an alleged $63 million tax-evasion and money-laundering scheme can’t afford to pay his legal bills after blowing millions of dollars on luxury cars, boats and an extravagant lifestyle, a court has heard. The taxpayer will now bear at least $624,000 in legal fees incurred by… – Continue reading
What is the difference between 30 per cent of zero and 20 per cent of zero? Correct: precisely $5227.27 less than a Bronwyn-Bishop-taxpayer-funded helicopter trip from Melbourne to Geelong. A reduction in the corporate tax rate, as unrelentingly espoused by the business lobby in its pro-GST campaign, may be a… – Continue reading
Documents filed in the Federal Court on an unrelated matter have highlighted how little profit Jeep has made despite turning over almost $5 billion in six years. US car giant Jeep and its associated brands may not be paying enough tax in Australia, a document filed in the Federal Court… – Continue reading
An alliance of London minicab drivers wants the EU to probe Uber’s tax arrangements and grill founder Travis Kalanick personally on the issue. Business Insider has seen a copy of a letter sent by the London Private Hire Car Association (LPHCA) to the chair of the European Parliament’s tax committee,… – Continue reading
If former Fiat Chrysler Australia boss Clyde Campbell goes down over allegations he misused tens of millions dollars of company money, he might just threaten to take the entire Australian operation of the global automaker and several executives with him. Mr Campbell on Wednesday opened the door for a tax… – Continue reading
Consultation on the ATO’s practical guide for offshore marketing hub arrangements is kicking off in August. The guide may also assist taxpayers with offshore intellectual property (IP) hubs. Here is what you need to know if you market Australian produced goods offshore or have centralised your IP offshore. Do you… – Continue reading
None of the pharmaceutical companies that are accused of profit shifting have been taken to court, the Australian Taxation Office has said in written responses to the Senate inquiry into corporate tax avoidance. Earlier in July executives from the largest global pharmaceutical companies operating in Australia were hauled before the… – Continue reading
A litigation suit has been filed against the US federal government arguing the Foreign Account Tax Compliance Act (FATCA) is “unconstitutional” and violates privacy rights, with implications for Australian financial institutions. The controversial FATCA tax legislation – which was introduced by the Obama Administration in 2010 – requires foreign financial… – Continue reading
This article deals with the manner in which Canada has complicated, and rendered controversial, what in most other countries is straightforward — the deductibility of business related interest expense. The reasons to write about it are threefold: the almost-concurrent issuance of the Canada Revenue Agency’s administrative views on the matter… – Continue reading
Blatant corporate and personal tax evasion contributed to Greece’s debt crisis, but it’s dwarfed by the tax avoidance of U.S. multinationals operating in countries like Australia. There’s a popular misconception that Greece’s debt crisis was self-inflicted. ‘The Greeks are a bunch of tax evaders! They should never have been allowed… – Continue reading
Even before the government’s options paper on tax reform is released later this year, many reforms have been taken off the table, at least before the next election. Here’s the expert view on six. Broadening or increasing the GST Some experts say expanding the GST, which is a regressive tax,… – Continue reading
Thousands of expats living in Australia, many of them British with temporary retirement visas, want to become permanent residents but are told they are unable to do so despite funding their own lifestyle. Some have lived in Australia for over 20 years but the visa they hold was withdrawn to… – Continue reading
Most South Africans think the prospect of working and living in a foreign country is an exciting adventure. However, the ins and outs of your tax affairs can be enough to make one less adventurous. The first thing to establish is what your “tax residency status” is. This is easier… – Continue reading
Irish people investing in other countries often lose up to a fifth of dividends Irish tax refund specialists Taxback. com have introduced an online service to help people recover tax withheld on share dividends in other countries. *Irish people investing abroad often lose up to a fifth of their dividends… – Continue reading
A sweeping global reform of tax systems is under way and will have profound implications for the insurance industry, the London-based International Underwriting Association has warned. Responding to public concerns about tax evasion, the G20 major economies have ordered a major shift towards greater cooperation between tax authorities. This work… – Continue reading
The IRS’ investigation into Microsoft books centers on how the company uses its overseas subsidiaries for tax purposes. The company says the IRS audit has gone on long enough and the federal agency improperly hired an outside law firm to help in the investigation. Microsoft and the federal government have… – Continue reading
The drug industry has been labelled “passive aggressive” after responding to tough questions over its use of tax minimisation by warning paying more tax would damage the economy. The warning was contained in a “supplementary submission” to the Senate tax avoidance inquiry, following a public hearing a fortnight ago that… – Continue reading
1MDB scandal prompts regulator to outline S’pore’s anti-money laundering regime The financial regulator has outlined Singapore’s anti-money laundering regime after an unfolding scandal at 1Malaysia Development Bhd (1MDB) put the private banking industry here in the spotlight. The Monetary Authority of Singapore (MAS) said yesterday in a statement: “Singapore is… – Continue reading
DEVELOPED countries throughout the world are stepping up efforts to curb base erosion and profit shifting (BEPS), a scheme used by multinational companies to avoid paying taxes estimated as high as $200 billion globally, especially when doing business across different jurisdictions. At the 2015 Asia Pacific Tax Symposium hosted last… – Continue reading
Treasurer Joe Hockey has reaffirmed his commitment to addressing bracket creep in the upcoming tax review, but has refused to include changes to politically sensitive areas like superannuation concessions, negative gearing and GST, pushing back the onus on the states for GST reform. When it comes to the GST, Mr… – Continue reading
Treasurer Joe Hockey has taken aim at the United States for dragging its feet on taxing multinationals such as Google, and says the Obama administration now wants to come after Australia’s tax base. Australia has been working with the United Kingdom on a local version of Britain’s ‘Google tax’ to… – Continue reading
Energy giants called to explain billions in tax havens To describe Gorgon as another super-sized resources project in Western Australia does not do justice to the scale and scope of the venture. When the taps are turned on later this year and liquefied natural gas begins to flow, Australia will… – Continue reading
New Zealand China Council chairman Sir Don McKinnon says we need to have a national debate on housing that avoids sending mixed messages to valued overseas partners. New Zealand is far from alone in having a red hot property market. Headlines in Australia, Britain and Canada paint a strikingly similar… – Continue reading
The Government’s submission to the “Re:think” tax white paper process under way in Australia highlights the lack of mutual recognition of imputation credits as the most significant barrier to a seamless transtasman market and calls for visionary political leadership. Prime Minister John Key displays the very leadership he’s calling for,… – Continue reading
Ross Gittins: Increasing property tax the fairest thing to do State and territory governments need to introduce a low-rate property tax to help raise billions of dollars a year in extra revenue and reduce their reliance on Commonwealth funding, the country’s most well-respected public policy institute says. The Grattan Institute… – Continue reading
The alternative to raising GST Ever-growing government spending on education and health mean before long we’ll have to pay higher taxes. So if we need a new tax, what should it be? Ross Gittins comments. Ross Gittins: Increasing property tax the fairest thing to do State and territory governments need… – Continue reading
German supermarket chain Aldi has given the market a rare glimpse into its profitability in Australia, as part of its ongoing defence against claims it doesn’t pay its fair share of tax. Aldi is structured as a limited partnership in Australia and so is not required to provide detailed financial… – Continue reading
In the midst of turmoil in the Chinese stock markets, one serious problem that may appear is increased currency outflows created by current and potential investors who would rather move their assets to foreign countries viewed as safer havens. Money laundering should be under close surveillance. Chinese involvement in money… – Continue reading
Australian authorities urged to undertake prosecution of those linked to property purchases KUALA LUMPUR: Three activist groups have lodged reports with Australian authorities to investigate overpriced property purchases in Melbourne by a Mara subsidiary for possible prosecution on grounds of tax evasion and money laundering. The three groups are National… – Continue reading
Tax avoidance tactics of multinational companies have angered Australians, but an Australian mining firm used such methods in Malawi. Tax avoidance tactics of multinational companies have angered the public and placed pressure on the Abbott government to prevent profits being exported offshore. But an Australian uranium miner is defending the… – Continue reading
The Abbott government has been accused of trying to water down language on tax evasion in a crucial document ahead of the UN’s Finance for Development meeting in Ethiopia next week. The Third International Conference on Financing for Development will be held in Addis Ababa, Ethiopia, from Monday next week…. – Continue reading
10/07/2015 – The OECD set out a clear path for Lithuania’s accession to the Organisation, reinforcing the OECD’s commitment to further extend its global membership. On 8 July 2015 the 34 OECD Members adopted the Roadmap for the Accession of Lithuania to the OECD Convention setting out the terms, conditions… – Continue reading
The Luxury Car Tax (LCT) is “absolutely an unfair tax”, says Audi general manager of corporate communications Anna Burgdorf. The LCT, which was implemented in Australia on July 1, 2000, was designed to protect the local car industry and slug buyers of ‘luxury cars’ with a 25.0 per cent tax… – Continue reading
The Australian Government will introduce a withholding tax obligation to ensure that foreign investors comply with Australia’s tax laws. The Government has released exposure draft legislation that provides for the application of a ten percent non-final withholding obligation on the disposal by foreign residents of taxable Australian property. If passed,… – Continue reading
The Australian Taxation Office has warned companies it will be focusing on money attributed to offshore marketing hubs and will use its stronger transfer pricing powers to go after them, reports the Sydney Morning Herald. Australian companies sent more than AU$100 billion to related parties in the low-tax nation of… – Continue reading
HMRC has delisted thousands of overseas schemes that could previously accept pension transfers from Britain, reports the Telegraph. HM Revenue and Customs has launched a crackdown on overseas schemes open to UK expats who want to move their pension abroad, with hundreds being removed from its approved list. Australia is… – Continue reading
The FINANCIAL — Tax is firmly under the spotlight and in the global insurance industry, the ramifications for finance and tax teams will be felt in both a new set of business demands and an overhaul of how these functions interact and operate. However, a new report from PwC says… – Continue reading
HMRC has delisted thousands of overseas schemes that could previously accept pension transfers from Britain HM Revenue and Customs has launched a crackdown on overseas schemes open to UK expats who want to move their pension abroad, with hundreds being removed from its approved list. Australia is one of the… – Continue reading
Lacklustre earnings growth, low returns on equity and the explosion of self-managed superannuation schemes could prompt the major banks to sell all or parts of their wealth businesses, global bank Citi predicts. Citi analyst Craig Williams noted that the banks’ wealth arms, largely acquired in the early 2000s, had not… – Continue reading
The ATO is looking to catch more big-time tax cheats by hiring new specialist public servants, just months after paying more than 400 of them tens of millions of dollars to leave. The Tax Office is advertising technical specialist jobs at APS 6, EL1 and EL2 pay levels in two… – Continue reading
The National Oversight and Whistleblowers (NOW) will be lodging reports with Australian authorities to investigate Majlis Amanah Rakyat (Mara) for possible tax evasion and money laundering in its purchase of four Melbourne properties between late 2012 and early 2013. Its director Akmal Nasir will travel to Australia next week to… – Continue reading
Thousands of retirees living abroad face the prospect of high tax charges, following an HMRC crackdown on offshore pension transfers. The Financial Times reported that HM Revenue & Customs is now investigating whether offshore pension schemes that accepted transfers from the UK meet new requirements. Offshore pension funds must comply… – Continue reading
The Commerce Commission says it may not be able to do much about a company that more than 100 businesses have complained about, because it appears to be based overseas. The Commission has been investigating the New Zealand Small Business Assistance Centre since October 2014. Complainants say the company told… – Continue reading
Australia’s largest new coal project will struggle for finance and amounts to a gamble on the future of India’s power supply Queensland Treasury warned the state’s government as it pondered pouring hundreds of millions of dollars into the development of the Galilee Basin. Documents released under Queensland’s freedom of information… – Continue reading
Multinational pharmaceutical companies are unable to assure Australians they are not being “ripped off” on the price of medicines as a result of their complex global supply chains. The Australian heads of nine of the biggest global drug suppliers were forced into the embarrassing admission on Tuesday after backing themselves… – Continue reading
The Government has released exposure draft legislation to amend the anti-avoidance rules in Part IVA of the Income Tax Assessment Act 1936 (Cth) to prevent multinational entities using artificial or contrived arrangements to avoid a taxable presence in Australia. We will continue to monitor the progress of the exposure draft… – Continue reading
OECD common reporting standard On 3 June 2015, the Treasurer announced that Australia had signed the Organisation for Economic Co-operation and Development’s (OECD) common reporting standard (CRS) Multilateral Competent Authority Agreement which enables automatic exchange of CRS information between countries. Australia proposes to implement the CRS from 1 January 2017,… – Continue reading
June 30 — Taxpayers continue to wrestle with big questions a year after the Foreign Account Tax Compliance Act opened for business. Acknowledging that the Internal Revenue Service is doing its best to implement a complex law, issues still remain as the reach of FATCA goes global, practitioners told Bloomberg… – Continue reading
