Category: Luxembourg

Luxembourg’s Euro Note Love Affair Raises Eyebrows Over Taxes

While the European single currency’s existential crisis drags on in Athens, it turns out Luxembourg likes its euros — a lot — as foreigners with accounts in the Grand Duchy try to stay one step ahead of the taxman. Luxembourg’s central bank issued 15 percent more euro notes in 2013,… – Continue reading

intellectual property state aid apple fiat starbucks jean-claude juncker ireland luxembourg netherlands automatic exchange of information eu legislation Tax Information Exchange Agreements

Governments that offer multi-national firms sweetheart tax deals should not be allowed to benefit if the European Union orders them to claw back the aid, according to a new report by the European Parliament’s special committee on tax rulings. Instead, the proceeds should be “returned to the member states which… – Continue reading

Lux Leaks panel banks on voter rage : New draft report calls on national governments to ‘eliminate mismatches’ in policy.

Anticipating a tough legislative fight, the European Parliament’s special committee investigating tax shelters plans to play its trump card: citizen outrage. The committee’s co-rapporteur Michael Theurer, a German MEP from the Alliance of Liberals and Democrats for Europe, told POLITICO’s German podcast that he expected “objections, difficulties and political resistance”… – Continue reading

EU Urged to Ban Windfalls for Nations Giving Illegal Tax Aid

Governments that dole out tax subsidies to big companies shouldn’t be allowed to reap multibillion-euro windfalls if the European Union orders them to claw back the aid, lawmakers probing tax loopholes said. Instead, the EU should consider changing the law so that money is shared among neighboring nations that played… – Continue reading

The Netherlands: Recent Financial, Regulatory and Legislative Developments

With the focus of 2014 being international tax competition, 2015 shows signs of continuing this trend. The European Commission (COM) and European Parliament (EP) are starting to debate and extensively investigate Member States’ tax ruling policies, partly as a result of the LuxLeaks revelations and partly in relation to the… – Continue reading

Kelly Conklin: Wal-Mart’s tax shelter is bad for small businesses

Recent revelations that Wal-Mart, the world’s biggest corporation, is maintaining secret subsidiaries in well-known offshore tax havens are outrageous but far from surprising to small business owners. That’s because we’re used to seeing large corporations abuse the tax system in ways that hurt our businesses, communities and families. Wal-Mart’s hidden… – Continue reading

Rexam’s predator seeks to play down competition concerns as EU launches probe into drinks can makers’ takeover

The US can making giant vying to buy British industrial champion Rexam has sought to play down fears that the deal will stifle competition and could lead to higher prices. Earlier this year Ball Corporation swooped on Rexam in a £4.3billion takeover that will create the world’s largest beverage can… – Continue reading

Walmart’s tax havens hurt small businesses

Recent revelations that Walmart, the world’s biggest corporation, is maintaining secret subsidiaries in well-known offshore tax havens are outrageous but far from surprising to small business owners. That’s because we’re used to seeing large corporations abuse the tax system in ways that hurt our businesses, communities and families. Walmart’s hidden… – Continue reading

European Parliament mulls lobby ban for big companies

The European Parliament’s special tax committee is seeking to punish multinationals for refusing to send representatives to a hearing in June by revoking lobbyist passes and preventing access to senior European Commission officials. AB InBev, AmazonEU, Barclays Group, Fiat Chrysler Automobiles, Google, HSBC Bank, Ikea, McDonalds and The Coca-Cola Company… – Continue reading

News Analysis: Long way to go for harmonized corporate tax policies within EU

THE HAUGE, July 20 (Xinhua) — The Dutch-German agreement to enhance the exchange of information on tax rulings was “an important step” towards greater transparency, but there is still a long way to go before reaching common ground on harmonized corporate tax policies within the European Union (EU), according to… – Continue reading

Germany, Netherlands To Exchange Data On Tax Rulings

Germany and the Netherlands have signed a new agreement that provides for the “spontaneous” exchange of information on advance pricing agreements and advance tax rulings. The agreement was signed in Brussels on July 14, 2015. Under the new agreement, both countries have committed to the mutual exchange of information on… – Continue reading

Brunei, Luxembourg sign pact on taxation

AN AGREEMENT to avoid double taxation and prevent tax evasion has been signed between Brunei and Luxembourg last Tuesday in Brussels, the Ministry of Finance (MoF) said yesterday. The MoF said this is in line with Brunei’s commitment to implement an internationally agreed tax information exchange standards. The ministry said… – Continue reading

Cross-border action raises tax risks

The rising exchange of information between countries is also leading to the disclosure of more details about these taxpayers’ affairs. Along with other countries, SA is paying closer attention to its residents’ cross-border activities. But while compliance is necessary, industry experts warn that overly aggressive tax enforcement in SA could… – Continue reading

Unicredit’s German unit in talks to strike tax deal with authorities – sources

HypoVereinsbank, the German arm of Italy’s UniCredit, is in talks with German prosecutors to pay a fine to put two tax probes behind it, two people familiar with the matter said. HypoVereinsbank and the Cologne prosecutors declined to comment on the development, which was first reported by German daily Sueddeutsche… – Continue reading

Ireland’s sweetheart tax deals under threat as EU investigates

European Commission to issue decisions on four test cases, including Apple in Ireland, Until a few months ago, the medieval town of Athenry in County Galway owed its fame mainly to a song. Irish rugby and football fans often burst into stirring renditions of “The Fields of Athenry”, a ballad… – Continue reading

Congress Wants to Reward Corporate Tax Dodgers with Lower Taxes

It’s well-documented that profitable Fortune 500 companies are stashing profits offshore to the tune of at least $2.1 trillion and avoiding as much as $550 billion in U.S. taxes. But instead of taking steps to halt this brazen tax dodging, lawmakers have floated various misguided “reform” proposals that would actually… – Continue reading

Jaresko: Ukraine, Cyprus agree to revise taxation agreement

Ukraine and Cyprus have agreed to review bilateral agreements on taxation to prevent the withdrawal of capital to offshore zones, Finance Minister Natalie Jaresko wrote on Facebook. “After very lengthy negotiations, we’ve finally taken an important step in the fight against capital withdrawal to offshore zones: we have with the… – Continue reading

Luxembourg maintains triple AAA

(CS) Fitch Ratings has kept its AAA rating of Luxembourg with a stable outlook unchanged, leaving the Grand Duchy one of only nine countries worldwide to hold the top rating by the three leading agencies. Luxembourg has also been rated AAA with a stable outlook by Standard & Poor’s and… – Continue reading

OECD establishes roadmap for membership with Lithuania

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

Multinationals must publish tax payments, MEPs say

MEPs have backed rules that would require multinationals to report their tax payments on a country-by-country basis. Deputies in Strasbourg voted by a 556 votes to 67 margin on Wednesday (8 July) to approve plans to re-write the EU’s eight-year old Shareholders’ Rights Directive that would require listed companies to… – Continue reading

Possible legislation restricting interest deductions in Finland for tax purposes

Industrial & Manufacturing groups which have operations in Finland, should review their funding arrangements to ensure they remain tax effective following a recent case in Finland which may now be put on a statutory footing. The Finish tax authorities treated a hybrid instrument as equity and the related interest expense… – Continue reading

BIBA: Time to talk tax havens

ARBADOS’ CONTROVERSIAL BLACKLISTING by a group of European Union (EU) countries is “hypocritical” and “grossly discriminatory”, says outgoing Barbados International Business Association (BIBA) president Connie Smith. But Smith also thinks the time is right for “engaging in bilateral discussions which could hopefully conclude in double taxation agreements and bilateral investment… – Continue reading

Business Monday: BIBA official: See blacklist as an opportunity

“THE decision by a group of European Union (EU) Member States to blacklist Barbados as being non-cooperative and further claim that Barbados and 29 other countries, mostly small islands, do not meet its standards of transparency, exchange of information and fair tax competition, is hypocritical and on the face of… – Continue reading

EU Cracks Down on Tax Dodges by Multinationals From Disney to Coke

Luxembourg, home of European Commission President Jean-Claude Juncker, is the EU’s richest country and a notorious tax haven for multinationals including Disney, Pepsi, Coca-Cola and Office Depot — among more than 300 firms who allegedly shifted profits to Luxembourg through sweetheart tax deals uncovered in last year’s ‘LuxLeaks scandal. The… – Continue reading

Tax treaty with Mauritius blocks outflow

A new treaty makes it more difficult for companies to take advantage of tax loopholes to avoid their financial obligations. Globally, initiatives are afoot to close tax loopholes and South Africa is one of the frontrunners – its new treaty with Mauritius removes the allure for tax-shy corporates doing business… – Continue reading

Making ‘steady progress’ towards OECD compliance: Seychelles responds to EU ‘tax haven’ listing

(Seychelles News Agency) – Seychelles’ Finance Minister says his ministry remains committed and on track towards complying with the widely-recognised Organisation for Economic Co-operation and Development (OECD)’s regulations on the sharing of tax information. “Seychelles is making considerable and steady progress in achieving the OECD standard in relation to the… – Continue reading

Cantillon: Dublin incinerator funding from Luxembourg a burning issue

DUBAI: This week the UK’s National Crime Agency (NCA) published their 2015 National Strategic Assessment. The Assessment presents a comprehensive picture of the threat to the UK from serious and organised crime, and helps to inform the work of the NCA and their international partners, including in the UAE. Some… – Continue reading

Amazon’s UK business paid just £11.9m in tax last year

Online retailer’s Luxembourg unit took £5.3bn sales from British internet shoppers, a rise of 14%, but Amazon.co.uk Limited recorded profit of just £34.4m Amazon’s booming UK business paid just £11.9m of tax last year, while the online retailer’s Luxembourg unit took £5.3bn of sales from British internet shoppers without being… – Continue reading

The Tangled Web of Walmart and its Subsidiaries

A recent report by Americans For Tax Fairness looks at how Walmart, the world’s largest corporation, uses a vast network of subsidiaries and branches in overseas tax havens with two purposes: 1.) to minimize taxes owed on its foreign operations. 2.) most importantly, to avoid United States taxes on those… – Continue reading

U.S. Treasury attempts to influence OECD’s BEPS initiative via proposed changes to U.S. model treaty

The United States has been criticized on more than one occasion for failing to be a meaningful participant in the OECD’s multi-pronged initiative to address base erosion and profit shifting (BEPS). Some commentators have even gone so far as to accuse the United States of actively working against the BEPS… – Continue reading

Switzerland faces competition from Asian IFCs

Switzerland remained the leading offshore asset booking centre in 2014, but with the rising new wealth generation in the Asia-Pacific region and its proximity to booking centres such as Hong Kong and Singapore, the country is expected to face increasing competition, reports Gulf News. Switzerland booked US$2.4 trillion (Dh8.8 trillion)… – Continue reading

Bahamas ‘unfairly dumped on’ with EU blacklisting

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

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

European Union Blacklists Panama as Tax Haven

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

European business groups withdraw support for EU common corporate tax

Business lobby group BusinessEurope has withdrawn its previous support for a proposed European common consolidated corporate tax base (CCCTB) due to changes that make it mandatory for multinational companies. UK business lobby group the Institute of Directors has described the CCCTB as “unhelpful political populism”. “European business fully shares the… – Continue reading

Caribbean states urged to object to EU tax-haven blacklisting

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

Cayman on new EU blacklist

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

EU Seeks Transaction Tax as 11 States Meet in Bid to Choose Path

The 11 European nations seeking a financial-transactions tax will meet Thursday in Luxembourg in a bid to decide how to design the measure, according to European Union officials. Participating states are wrangling over which trades to tax and who should collect revenue, according to planning documents obtained by Bloomberg News…. – Continue reading

Proposed U.S. Model Treaty Provisions May Dramatically Alter International Tax Landscape

The U.S. Model Income Tax Treaty (the U.S. Model Treaty) generally represents the United States’ opening position in treaty negotiations. As a result, when changes to the treaty are proposed, international tax practitioners should be aware of the potential impact those changes can have on their existing inbound U.S. structures…. – Continue reading

Bermuda named on EU tax haven list

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

EU releases tax haven blacklist

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