Category: Australia

Australian ­Taxation Office turns to Facebook to catch cheats

Social media posts, private school records and immigration data are being used by the Australian Taxation Office as part of an increasingly sophisticated crackdown on tax cheats that yielded nearly $10 billion last year. ATO Commissioner Chris Jordan said the tax office had been investing in data collection analysis of… – Continue reading

The coming abolition of cash

The Indian Government’s dramatic cancellation of large banknotes on the same day as the US election last week looks like the drastic solution to a very Indian problem with tax avoidance and the black economy, but it might turn out to be a harbinger of things to come everywhere. In… – Continue reading

Hong Kong Pushes For DTA, Info Exchange With Australia

In Canberra, Hong Kong’s Secretary for Financial Services and the Treasury, K C Chan, expressed his wish to quickly start negotiations on a comprehensive double taxation agreement (CDTA) with Australia. During his meetings with Australia’s Treasurer, Scott Morrison, and the Minister for Revenue and Financial Services, Kelly O’Dwyer, Chan pointed… – Continue reading

Australian Practitioners Urge Zero Withholding for Pooled Funds

Practitioners in the managed funds industry are calling for a zero-rate for withholding tax in Australia amid the government’s proposals for new tax concessions to boost it, saying the proposed measures don’t go far enough. The government released a consultation paper Nov. 3 on non-resident withholding taxes for pooled funds—or… – Continue reading

IRD delayed multinational tax crackdown

New Zealand has delayed cracking down on multinational tax avoidance due to private sector concerns over timing and concerns about “scaring away” foreign investment, the Inland Revenue Department says. Wide-ranging reforms to corporate tax rules proposed by the Organisation for Economic Cooperation and Development (OECD), known as the base erosion… – Continue reading

Australian Goods And Services Tax Guidance For Offshore Suppliers

The Australian Tax Office (ATO) has updated its guidance for those non-resident businesses that make supplies of goods, services, or digital products to consumers or GST-registered businesses in Australia, with a couple of changes due to occur next year and a change last month. Since October 1, 2016, certain transactions… – Continue reading

With 42% increase in trade, India-NZ agree to amend Double Taxation Agreement

India and New Zealand also vowed to press for successful negotiations of the Regional Comprehensive Economic Partnership (RCEP). India and New Zealand decided to amend the bilateral tax treaty and expressed commitment to work towards a comprehensive free trade agreement with a view to boost economic ties on Wednesday. The… – Continue reading

Germany and Panama move closer towards information-sharing agreement

Talks on a data exchange agreement have progressed following Panama President Varela’s state visit to Berlin. Panama is looking to clean up its reputation in the aftermath of the “Panama Papers” leak earlier this year. Germany and Panama moved a step closer towards signing an information-sharing agreement, German Chancellor Angela… – Continue reading

There is one way to put a stop to BHP’s tax avoidance

One of the most common ways multinationals take advantage of current laws to reduce their tax bill is through what’s known as transfer pricing. Former Treasurer Wayne Swan last week accused mining giant BHP of “aggressive transfer pricing,” denying the Australian government A$5.7 billion in tax revenue. For most companies,… – Continue reading

Singapore, Japan To Automatically Exchange Tax Info

Singapore and Japan have agreed to automatically exchange financial account information under the OECD’s Common Reporting Standard. The CRS, the new global standard for the automatic exchange of information for tax purposes, requires all participating countries and jurisdictions to obtain information from their financial institutions and to exchange that information… – Continue reading

BHP Billiton has evaded taxes for more than a decade, says Wayne Swan

Former Labor treasurer Wayne Swan has accused one of Australia’s biggest companies of evading taxes for more than a decade, and for lying to the former Labor government during the height of the mining tax debate. Swan used parliamentary privilege on Wednesday to claim BHP Billiton had been “gaming the… – Continue reading

VP Kalla Reminds Tax Dodgers That They Can’t Escape Automatic Exchange of Information

Jakarta. Tax dodgers and taxpayers who have underreported their wealth in the past and who now seek to rectify the situation should join the tax amnesty program as they will not be able to hide once a system for the automatic exchange of financial information between states comes into effect… – Continue reading

Singapore and the UK sign agreement to exchange financial account information

Singapore’s tax authority has signed another agreement to fight tax evasion. The Inland Revenue Authority of Singapore (IRAS) and the British tax authority, Her Majesty’s Revenue and Customs (HMRC) have agreed to share financial account information. In a statement from IRAS today (September 16), it said that the agreement is… – Continue reading

New Zealand extends anti-money laundering rules to capture property agents

New Zealand will extend its anti-money laundering laws to cover real estate agents and other professions amid fears the country has become a soft target for illegal fund flows that have also helped inflate the property market. Soaring property prices have become a hot issue among the New Zealand public… – Continue reading

Australia in talks with Israel for tax treaty, says Treasurer Scott Morrison

The Turnbull government will introduce a tax treaty between Australia and Israel to improve business relations between the two countries. The treaty is linked to the government’s plan to boost innovation in Australia as well as its push to further trade between the two countries as Israel’s technology sector booms…. – Continue reading

ATO warns accounting firms on tax avoidance

Back in July, ABC’s The Business and Michael West featured an extraordinary raft of allegations from a 32-year veteran industry insider turned whistleblower, George Rozvany, who claimed that multinational tax avoidance was “out of control” and cost the Budget up to $50 billion dollars a year in lost revenue. Rozvany… – Continue reading

To really tackle corporate tax evasion we need a public register

The Australian government shouldn’t rely on leaks like that of the Panama Papers to pick up on tax evasion, it should consider stronger action. The federal government showed some leadership earlier this year by announcing the establishment of a public register of beneficial ownership of companies, with the aim of… – Continue reading

Singapore and Australia to share financial account information to fight tax evasion

The tax authorities of Singapore and Australia have agreed to share financial account information to fight tax evasion. In a joint statement on Tuesday (Sept 6), the Inland Revenue Authority of Singapore (Iras) and the Australian Taxation Office (ATO) announced that they have entered into a Competent Authority Agreement on… – Continue reading

PM to push for G20 tax evasion crackdown

Malcolm Turnbull will push for a crackdown on multinational tax avoidance when he meets with world leaders at the G20 summit in China. But Labor have accused Mr Turnbull of not having a strong plan for confronting corporate tax avoidance at home, let alone abroad. The prime minister will arrive… – Continue reading

No reason for govt to delay reform on multinational tax avoidance, say Greens

The Government is being blasted as weak, for not taking action on companies dodging tax. Apple has been slapped with a $20 billion tax bill in Ireland, which has led to questions about whether tax avoidance is also happening in New Zealand. Prime Minister John Key said we could face… – Continue reading

Top corporate players sign up for voluntary tax code

Twenty of the nation’s largest companies have voluntarily signed up to a comprehensive new code to disclose more details of their tax affairs in their latest ¬annual accounts following a series of scandals involving local and offshore firms. In the May budget, the federal government announced it was committed to… – Continue reading

Wesfarmers urges Aldi to sign tax code in ‘corporate peer pressure’

Coles has urged its German rival Aldi to sign up to a new tax transparency code that will lead to more big businesses, particularly multinationals, releasing detailed information about the tax they pay. Aldi has yet to sign up to the Voluntary Tax Transparency Code, which targets more than 1500… – Continue reading

ATO Issues Anti-Avoidance Warnings For Multinationals

The Australian Taxation Office (ATO) has issued a series of taxpayer alerts that caution large companies against using contrived arrangements to avoid their tax obligations. The first alert concerns arrangements where Australian consolidated groups use offshore permanent establishments that have entered into intra-group transactions. Deputy Commissioner Jeremy Hirschhorn explained: “Through… – Continue reading

CRA convicts a fraction of offshore tax evaders: Exclusive

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

Tax lawyers to grapple with new changes

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

‘Tax avoidance’ masters revealed: EXCLUSIVE

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

APAs in fashion as Swedish retailer H&M inks four-year Australian tax deal

Fast-fashion retailer H&M is one of a growing number of multinationals locking in their Australian tax, as debate continues about whether Australia has stopped corporate tax leakage. H&M’s strongly performing Australian subsidiary has entered into a four-year Advanced Pricing Agreement (APA) with the tax office that expires on November 30,… – Continue reading

How new EU tax laws impact Thai firms

THAI MULTINATIONAL companies will be impacted on their cross-border business activities due to rapidly evolving tax laws in Europe and Asia-Pacific. For instance, the European Union (EU) achieved a groundbreaking result on June 20 by agreeing to a package of tax measures to combat corporate tax avoidance, which will be… – Continue reading

NSW Budget 2016: Foreign property buyers in NSW to be hit with stamp duty and land tax hikes

Stamp duty will be doubled for foreign buyers of a median priced Sydney house under changes to be introduced in next week’s NSW budget. Based on the Sydney median house price of $995,804, the stamp duty bill for a foreign investor will increase by almost $40,000 – from $40,305 to… – 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

China’s central bank tightens reserve requirements for offshore yuan banks

PBOC says move is aimed at smoothing out money market fluctuations China’s central bank has tightened the way it calculates reserve requirements for banks dealing in offshore yuan, saying on Friday that it wanted to increase flexibility in liquidity management for financial institutions and help smooth out fluctuations in money… – Continue reading

Global Tax Update – June 2016

Asia Pacific The January – March edition of tax highlights for the Asia Pacific region highlights industry developments from Australia, China, Hong Kong, India, Indonesia, Korea, Malaysia and Singapore including: Australia’s new tax system for Managed Investment Trusts The final stage of China’s B2V reform to be rolled out from… – Continue reading

India, Slovenia ink double-tax avoidance treaty amendments

In its fight against black money stashed abroad, India has signed a protocol with European Union member nation Slovenia to make changes to the Double Taxation Avoidance Convention between the two countries, an official statement said in New Delhi on Thursday. The protocol, for avoidance of double taxation and preventing… – Continue reading

Australia Moves to Remove ‘Double Taxation’ on Digital Currency

For a month starting May 3, The Treasury of the Australian government will be accepting submissions from interested parties to comment on a newly-released discussion paper entitled ‘GST treatment of digital currency’ as part of the 2016-17 Budget. The Treasury says the government has realized that consumers are ‘double taxed’… – Continue reading

Australia announces multinational tax avoidance in federal budget

Australia announced a further crackdown on multinational tax avoidance in its annual budget on Tuesday, including the planned introduction of a UK-style diverted profits tax (DPT), that it expects to raise A$3.9 billion over the next four years. The government is creating a new Tax Avoidance Taskforce of 1,000 specialist… – 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

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

Proposed IRS Country-by-Country Reporting Regulations: What Do They Mean for You?

Genesis of CbC Reporting and How it will Affect U.S. Multinational Enterprises Country-by-country (CbC) reporting is essentially exactly what it sounds like: a report that shows every country where a multinational enterprise (MNE) operates and allocates income, earnings and pays taxes. The CbC report regulations proposed by the Internal Revenue… – Continue reading

Industry needs to be more transparent and credible: Jaitley

As “Panama Papers” expose the world’s most prominent people engaging in murky deals, Finance Minister Arun Jaitley on Monday told the Indian industry to become more “transparent and credible” in its functioning. “With the G20 (countries’ new global transparency standard) and FATCA (the US’ Foreign Account Tax Compliance Act) coming… – Continue reading

International tax update- April 2016

United Kingdom Budget The United Kingdom (UK) Budget: was handed down on 16 March 2016. Some of the key measures announced include: a reduction in the corporation tax rate to 17 per cent by 2020 (previously due to fall to 18 per cent) more details on the implementation of Base… – Continue reading

No Agreement On Australian State Tax Devolution

The leaders of Australia’s federal, state, and territory governments have failed to reach an agreement on a proposal to enable the states to levy income tax. The Council of Australian Governments (COAG) met on April 1. Ahead of the meeting, Federal Prime Minister Malcolm Turnbull had proposed that the federal… – Continue reading

The missing billions of multinational tax

It’s easy to stoke outrage at multinationals’ low taxes but harder to do something about it. According to the Organisation for Economic Co-operation and Development (OECD) – the so-called rich-countries club – tax avoidance by multinational companies is worth US$100-240 billion a year. That’s 4-10% of total global corporate income… – Continue reading

KPMG: Moves to curb international tax dodges

Global international tax takes from multinational companies will almost certainly increase in the next 5-10 years as governments around the world look to level the taxation playing field. Commenting on the New Zealand Herald’s series examining ‘the tax gap’ – multinationals channelling earnings to lower tax regimes, disadvantaging some of… – Continue reading

Public can bank on tax office says Jordan

The Commissioner of Taxation, Chris Jordan has assured the public it can have confidence in the compliance approach the Australian Taxation Office (ATO) is taking to its wealthiest taxpayers. Following the release of tax details relating to about 300 private companies with incomes of $200 million or more, Mr Jordan… – Continue reading

Indonesia, a ‘real tax haven’ nation

This article’s title may be shocking and antagonize Indonesia’s staunch position of opposing tax evasion by way of tax havens. But, let’s look deeper. While there is no standard definition of a tax haven, it is generally defined as a state, country or territory where tax rates are very low… – Continue reading

Australian Government Seeks End to Double Taxation of Bitcoin

The Australian government has announced that it will back a legislative solution to tax concerns surrounding bitcoin as part of a broad policy statement on financial technology. Under current tax guidance in the country, bitcoin is considered a form of barter rather than a form of money. Australian businesses must… – Continue reading

The rich people who pay no tax

Only the little people pay taxes. For a small, select cohort of rich Australians, the famous quote of New York property billionaire Leona Helmsley rings not as an outrage but as an inspiration. In the most recent documents released by the Australian Tax Office, there were 55 people who had… – Continue reading

Getting CRS: Australian implementing legislation finalised

It is now time for Australian financial institutions to move on CRS. Australian implementing legislation has been finalised. You need to be prepared by 1 July 2017. The scope of CRS and applicable penalties have been expanded The next FATCA reporting deadline is 31 July 2016. The uncertainty around listed… – Continue reading

BEPS Action Plan 3: Designing effective controlled foreign company rules

A “controlled foreign company” (CFC) is, as the name implies, a foreign company or subsidiary owned by a parent company which is situated in a country different from the parent company’s country of residence. The tax laws of many countries, including the Philippines, do not tax the CFC’s parent company… – Continue reading