The Cayman Islands is better positioned to police terrorism financing than the U.S., an American congressional subcommittee heard Wednesday. The comments came from New York County District Attorney Cyrus Vance, who was called before the U.S. House Task Force to Investigate Terrorism Finance. “On a near daily basis, we encounter… – Continue reading
SEOUL, June 25 (Yonhap) — More than half of big business groups in South Korea have set up companies in overseas tax havens, with SK Group, the nation’s third-largest conglomerate, having the most, data showed Thursday. Out of 61 business groups with combined assets of more than 5 trillion won… – Continue reading
The governments of Grenada and St Vincent and the Grenadines have complained about the European Union’s decision to include them on a list of 30 international tax havens, reports the Latin American Herald. “Grenada’s inclusion implies that Grenada is not doing sufficient to guard against harmful tax practices,” Prime Minister… – Continue reading
The Cayman Islands Government, along with its fellow 126 members of the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes, today received an email signed jointly by the Director of the OECD Centre for Tax Policy and Administration (CTPA), and the Head of the Global Forum… – Continue reading
Tax havens are used for more than just saving money. When companies take advantage of their lack of transparency for more sinister activities, shareholders can lose out. When Enron collapsed in 2002 investigators were faced with a convoluted network of subsidiaries and offshore partnerships stretching from the Cayman Islands to… – Continue reading
Despite the inevitable move towards automatic exchange of tax information and Common Reporting Standards internationally, there continues to be a steady flow of litigation in the Courts of International Financial Centres such as Bermuda, the Cayman Islands, and Singapore relating to challenges to inter-governmental Tax Information Exchange Agreement (TIEA) requests…. – Continue reading
A controversial Euro list of dodgy tax jurisdictions that included Bermuda has been dealt a blow after Poland said the Island should not have been included on its submission. The move came after the European Commission unveiled the 30-jurisdiction ‘blacklist’ of non-cooperative tax jurisdictions singled out by member states. Poland… – Continue reading
Channel island claims inclusion is in error because Brussels miscounted the required 10 nominations by wrongly including one for neighbouring Sark Guernsey has written to the European commission demanding to be removed from a blacklist of the worst international tax havens – as nominated by EU member states. Chief minister… – Continue reading
The Bahamas was yesterday “dumped on” through its inclusion on another so-called financial services ‘blacklist’, although an ex-Attorney General and others suggested the development should be taken “with a big grain of salt”, reports the Bahamas Tribune. John Delaney told Tribune Business that the European Union’s (EU) decision to ‘blacklist’… – Continue reading
FATCA – Which Countries Are In And Out The controversial US Foreign Account Tax Compliance Act (FATCA) law is set to start from July 1, 2014, so with less than 21 days to go, here’s a look at which countries are in and who is outside of the tax network…. – Continue reading
St. Kitts and Nevis is one of 30 countries placed on the European Union’s black list for not doing enough to fight tax evasion. The EU’s executive Commission published the list Wednesday (June 17). The blacklisted countries figure on at least ten of the EU’s 28 member nations’ lists of… – Continue reading
The European Commission has added Panama to its blacklist of countries designated as tax havens over a lack of support for anti-tax fraud and evasion efforts. The European Union’s executive Commission unveiled the list in the introduction to its action plan to fight tax fraud. The blacklist consists of 30… – Continue reading
Critics of an EU tax-haven blacklist say the organisation is playing dice with small states’ reputations, while ignoring European tax avoidance hubs BRIDGETOWN, Barbados, June 19, 2015 (AMG) — Doubts have been cast over the methodology and motives behind the naming of fourteen Caribbean countries among a list of thirty… – Continue reading
Government appeared to brush off the latest blacklisting of the Cayman Islands when it released a short statement on Wednesday at around 5pm following revelations by the EU that the jurisdiction had been cited as facilitating tax evasion, reports the Cayman News Service. “It is unfortunate that the EU black… – Continue reading
Following the expiration of the 29 May 2015 notification deadline with the Cayman Islands Tax Information Authority (the “TIA”), the next step for all Cayman Islands Reporting Financial Institutions (each an “RFI”) is to submit a return (the “FATCA Return”) setting out certain details of any US Reportable Accounts that… – Continue reading
Introduction The Foreign Account Tax Compliance Act (FATCA) requires entity account holders to document their status for US withholding tax purposes (Chapter 3 status) and their status for FATCA due diligence purposes (Chapter 4 status). In the case of a non-US entity account holder that has made an entity classification… – Continue reading
The European Union: Labelled Bermuda as a tax haven Bermuda has been named by the European Union as a country that is not doing enough to crack down on tax avoidance. The Island was one of 30 countries on the list published by the EU’s executive Commission today. “These tax… – Continue reading
The European Union has published its first list of international tax havens as part of a crackdown on multinational companies trying to avoid paying tax in the 28-nation bloc. The list of 30 territories includes Hong Kong and Brunei in Asia, Monaco, Andorra and Guernsey in Europe, and a series… – Continue reading
The European Commission is set to adopt an Action Plan to tackle corporate tax avoidance and promote growth-friendly taxation in the Single Market despite an uphill battle against global giants such as Apple and Starbucks, as well as some hypocritical member states. The European Commission’s plans unveiled Wednesday include a… – Continue reading
Following the implementation of the EU Alternative Investment Fund Managers (AIFM) Directive (2011/61/EC) and associated legislation, Cyprus now lays claim to being a growth jurisdiction within the European Union for the establishment and servicing of boutique and low cost alternative investment funds based locally or offshore. The choice of fund… – Continue reading
Dubai: The word offshore banking often evokes quite a number of unsavoury connotations. It’s associated with tax evasion, money laundering and high-level of secrecy, but the truth is that anyone can open an offshore bank account and it’s completely legal. Most expatriates set up a bank account offshore to protect… – Continue reading
The Cayman Islands saw a 17 percent increase in new company registrations in 2014 over the previous year, according to a report released today by offshore law and fiduciary firm Appleby. In 2014, 11,010 new companies registered in Cayman, noted the firm’s latest ‘On the Register’ report, which provides insight… – Continue reading
On 1 April 2015 the Italian Minister of Economy and Finance issued a ministerial decree removing the Cayman Islands, the British Virgin Islands and 19 other jurisdictions from Italy’s ‘blacklist’ on the nondeductibility of costs and expenses, established in January 2002. As a result, expenses and costs incurred by Italian… – Continue reading
One in six of the world’s largest companies have a subsidiary based in a tax haven According to research from Morgan Stanley Capital International (MSCI), 16.3% of the 1,612 companies in its MSCI World index are either domiciled in a tax haven or have at least one majority-owned subsidiary in… – Continue reading
The British Virgin Islands and the Cayman Islands have entered into agreements with the UK for automatic disclosure of information in respect of interests in financial accounts held by UK residents. Most UK residents are taxed on the “arising” basis meaning they are liable to pay UK tax on worldwide… – Continue reading
British Virgin Islands, Caymans and Turks & Caicos feature heavily in justice department indictment of senior football officials British overseas tax havens play a key role in what US authorities have called “rampant, systemic and deep-rooted” corruption in the world of football, analysis by the Observer reveals. The 164-page US… – Continue reading
KUALA LUMPUR, May 29 — Unless proven innocent, it must be assumed that the management of 1Malaysia Development Berhad (1MDB) had misappropriated the funds invested in Cayman Islands, Tun Dr Mahathir Mohamad said today in his continued tirade against the troubled state investment firm. The former prime minister said although… – Continue reading
In November 2013 the governments of the Cayman Islands and the British Virgin Islands (“BVI”) entered into intergovernmental agreements with the United Kingdom (“UK IGAs”) which contained provisions for the establishment of a framework for the reporting of financial account information. That framework is similar in scope to the framework… – Continue reading
The Cayman Islands Department of International Tax Cooperation has extended the deadlines for Cayman Reporting Financial Institutions (RFIs) to provide notification and reporting and to the Tax Information Authority for U.S. FATCA Reportable Accounts. RFIs now have until Friday, May 29, 2015 to submit notifications. The new reporting deadline is… – Continue reading
The Cayman Islands Government today issued a report stating that it will continue its current method of providing beneficial ownership information to law enforcement, tax and regulatory authorities, as the method adheres to global standards. As explained in its Consultation Report on Maintenance of Legal and Beneficial Ownership Information, Government’s… – Continue reading
Luxembourg has been a prime destination for Canadians looking for a tax haven. Secretive. Discreet. Accommodating. These features were so attractive that Canadian companies, including a federal pension fund, sent $36 billion there in 2013. But new Statistics Canada data shows that more than $5 billion got pulled out of… – Continue reading
While the Bureaucrat Hall of Fame and Moocher Hall of Fame already exist, the Hypocrite Hall of Fame is just a concept. But once it gets set up, Congressman Alan Grayson of Florida will definitely be a charter member. Here are some passages from a column in the Tampa Bay… – Continue reading
FATCA reporting commences In our March client briefing we noted that the Tax Information Authority in the Cayman Islands (“TIA”) had launched its online portal for the automatic exchange of tax information (the “AEOI Portal”), which can be accessed from its website (www.tia.gov.ky). The deadline for reporting Cayman Islands financial… – Continue reading
On May 11, 2015, the Cayman Islands announced the extension of its FATCA registration and reporting deadlines, as follows: Registration Each Cayman Islands investment entity that has been classified as a “Reporting Cayman Islands Financial Institution” for purposes of FATCA (or its “sponsoring entity,” if applicable) should register with the… – Continue reading
U.S. Rep. Alan Grayson, the outspoken, populist Democrat who thunders against Wall Street fat cats,and used to to joke about Mitt Romney’s low tax bill, incorporated a couple hedge funds in the Cayman Islands so investors could avoid taxes. Grayson Fund Ltd. and Grayson Master Fund were incorporated in 2011… – Continue reading
On 1 April 2015 the British Virgin Islands (BVI), Cayman Islands and 19 other jurisdictions were removed from Italy’s blacklist of jurisdictions. As a result it will now be easier for Italian individuals and companies to engage in business with those based in the Cayman Islands and the BVI. The… – Continue reading
The US Foreign Account Tax Compliance Act (FATCA) is celebrating five years on the statute books at the end of the month – and has changed the face of tax reporting worldwide. President Barak Obama backed FATCA as part of the HIRE Act 2010 with the aim of clamping down… – Continue reading
Cayman Islands investment entities that have been classified as “Reporting Cayman Islands Financial Institutions” for purposes of FATCA should make every effort to enroll with the Cayman government by the April 30, 2015 deadline in order to comply with their obligations under FATCA, regardless of whether they will be required… – Continue reading
Mitsubishi UFJ Fund Services warn managers are up against a time crunch ahead of the April 30 registration deadline The upcoming April 30 deadline for registration on the Cayman Foreign Account Tax Compliance Act (Fatca) portal marks another milestone but could prove a significant test for the industry, according to… – Continue reading
A bill that could allow the state to collect taxes on corporate profits in offshore tax havens to fund Colorado schools survived a narrow party-lane vote in the state House of Representatives on Tuesday. The Democrats’ bill, which passed the House 33-31, faces a tough road as it moves from… – Continue reading
British Virgin Islands through its International Tax Authority (BVI ITA), went live last week with the Vizor for FATCA & AEOI solution, the “BVI Financial Account Reporting System”. Today, Vizor Ltd. announced that BVI went live with the Vizor for FATCA & AEOI solution. The British Virgin Islands Government (BVIG)… – Continue reading
Tim Thornton, Chief Data Officer, Mitsubishi UFJ Fund Services comments on the upcoming deadline for registration on the Cayman FATCA portal… The upcoming 30 April deadline for registration on the Cayman FATCA portal is another milestone in the implementation of FATCA. The relatively short window from the portal being available,… – Continue reading
The world’s high and ultrahigh net worth families are run much like businesses these days, with family governance in place as well as fund structures in favourable tax jurisdictions that allow for consolidated reporting across diversified assets. That is the way the world is moving, with global tax authorities grouping… – Continue reading
The U.S. Treasury Department has released proposed rules aimed at limiting theability of hedge funds to delay or lower their taxes by funneling investments through offshore reinsurance companies. The draft IRS regulations, which will not take effect until after a public comment period and any subsequent revisions, are aimed at… – Continue reading
FATCA 1. New FATCA IGA guidance notes On 3 February 2015, the Jersey Chief Minister’s Department published the latest version of the Guidance Notes on the Taxation (International Tax Compliance) (Jersey) Regulations 2014 in relation to the implementation of obligations arising under the intergovernmental agreements (IGAs) with the US and… – Continue reading
Britain’s Conservative Party returned a donation of £50,000 from a wealthy businesswoman on Monday after it emerged she was once wanted on charges of tax fraud in the United States. Beatrice Tollman, founder of luxury hotel chain Red Carnation, made an election campaign donation to the Tories earlier this month…. – Continue reading
Regular Pitch readers know that key elements of the ongoing criminal tax case against Mission Hills businesswoman Cheryl Womack rest on how the government obtained evidence against her. Womack remains under an indictment issued by a federal grand jury in 2013 that accuses the self-made millionaire of misleading government investigators… – Continue reading
For the majority of the public, including small business owners, Tax Day might not be our favorite time of year. However, it remains an important day because it means paying our dues for the numerous public benefits we receive, from our infrastructure and roads to our education system to our… – Continue reading
During the multi-year build-up to FATCA,1 the primary focus was on entity classification and registration, and less attention was paid to the compliance obligations of U.S. and non-U.S. entities affected by FATCA. Withholding and information reporting responsibilities under FATCA were generally known, but with the numerous deadline postponements and references… – Continue reading
Small businesses in Connecticut pay about $7,000 apiece in additional taxes to make up for lost state revenue due to loopholes allowing big corporations to forego paying taxes on profits earned in other countries, such as the Cayman Islands, according to a new report issued by ConnPIRG this week. “The… – Continue reading
