Category: Europe

Medtronic To Go Ahead With Covidien Deal Despite Reduced Tax Benefits

Medtronic announced last week that it will go ahead with its Covidien buyout despite a recent notification by the U.S. Department of the Treasury and the Internal Revenue Service discouraging tax-avoiding corporate inversion deals. Per the new guidelines, companies will not be able to avoid paying U.S. taxes when accessing… – Continue reading

Is tax the reason Tim Cahill is cranky?

According to a report published in the Sydney Morning Herald on October 6, Tim Cahill may be dealing with an irksome tax problem, stemming from investments made when he was living and working in England. The newspaper claims to have seen documents linking Cahill to a company called Phoenix Film… – Continue reading

Patent box tax break for innovation “does not facilitate profit shifting”, says UK Treasury

The UK government will continue to defend its ‘patent box’ tax break for income from qualifying intellectual property (IP) during discussions to develop a global corporate tax regime, a Treasury official has said.08 Oct 2014 Intellectual Property Tax Patents Corporate tax Life sciences Advanced Manufacturing & Technology Services UK Europe… – Continue reading

US Tax Inversion Planners Respond To Treasury Measures

The non-legislative measures put forward by the Treasury Department on September 22, to deter multinationals from using corporate inversions to move their tax residence abroad and move away from the high United States tax rate, have so far produced a mixed bag of results. The measures are aimed at preventing… – Continue reading

Patent box tax break for innovation “does not facilitate profit shifting”, says UK Treasury

The UK government will continue to defend its ‘patent box’ tax break for income from qualifying intellectual property (IP) during discussions to develop a global corporate tax regime, a Treasury official has said.08 Oct 2014 Intellectual Property Tax Patents Corporate tax Life sciences Advanced Manufacturing & Technology Services UK Europe… – Continue reading

MiFID 2: implications for BVI, Cayman Islands, Guernsey and Jersey firms

The Markets in Financial Instruments Directive (“MiFID”) is a European Union law that aims to harmonise the regulation of investment services across the member states of the European Economic Area and came into effect from 1 November 2007. Following the 2008 financial crisis, amendments to MiFID became the focus of… – Continue reading

Kenya: KRA After Sh30 Billion in Audit of Companies

The taxman is willing to “negotiate and strike a balance” with multinationals being audited for transfer pricing misconduct, a drive it says has a potential to realise over Sh30 billion. The Kenya Revenue Authority told a workshop organised by the Association of Chartered Certified Accountants in Nairobi that this will… – Continue reading

Offshore property still looks a better bet

SOUTH African property punters are still making more money offshore than in their own backyards — in both rand and dollar terms. Latest figures from Cape-based Catalyst Fund Managers and UBS show that global property stocks, or real estate investment trusts (Reits) as they are commonly known, delivered a total… – Continue reading

Five questions Cañete has not yet answered about his family

Miguel Arias Cañete, the Spanish Commissioner-designate for Energy and Climate Change, has left five important questions unanswered during his confirmation hearing in the European Parliament, writes Alicia Gutiérrez. Alicia Gutiérrez is a journalist at the Spanish online media infoLibre. (Translation by Avaaz. Original version here) 1. Has Cañete had any… – Continue reading

IRS Denies Treaty Benefits Despite Lack of Treaty Shopping

In Starr International Company, Inc., v. United States, the taxpayer (“Starr International Company, Inc.” or “SICO”) filed a complaint in the United States District Court for the District of Columbia seeking a tax refund from the IRS of approximately $38 million.  The refund is allegedly due to an overpayment of… – Continue reading

Swiss Said to Send Data on UBS French Client Accounts

UBS AG (UBSN), the Swiss bank facing French allegations of helping clients evade taxes, has handed over details on about 100 accounts, according to a person with knowledge of the matter. Swiss authorities at the start of the year notified UBS of a request from France for information on 300… – Continue reading

Amazon Luxembourg Tax Deals Investigated by E.U. Watchdog

Amazon’s tax arrangements with Luxembourg are being investigated by E.U. regulators, as the online retailer becomes the latest global company to be accused of striking tax-minimising deals with member states that may break bloc rules. Corporate tax avoidance has come under the spotlight on both sides of the Atlantic in… – Continue reading

Amazon faces European Union tax avoidance investigation

Amazon, the online retailer, is to face a formal investigation into its European corporate tax practices, the European Commission has announced. The Commission – the executive division of the 28-member European Union – says it will look at the tax agreement made between Amazon and Luxembourg. It suspects the deal… – Continue reading

Lukoil Refinery in Romania Closed over Tax Evasion, Money Laundering Probe

Romanian authorities have ordered the closure of Lukoil’s Petrotel refinery in Ploiesti, Romania. Oleg Malginov, Russia’s Ambassador Extraordinary and Plenipotentiary to Romania, announced that the oil refinery had been closed sue to an investigation for tax evasion and money laundering. Malginov, as cited by ITAR-TASS, pointed out that the halt… – Continue reading

Lukoil Refinery in Romania Closed over Tax Evasion, Money Laundering Probe

Romanian authorities have ordered the closure of Lukoil’s Petrotel refinery in Ploiesti, Romania. Oleg Malginov, Russia’s Ambassador Extraordinary and Plenipotentiary to Romania, announced that the oil refinery had been closed sue to an investigation for tax evasion and money laundering. Malginov, as cited by ITAR-TASS, pointed out that the halt… – Continue reading

Amazon Probed by EU, Following Charges Over Apple’s “Double Irish” Tax Evasion

Amazon is believed to have exploited a slightly different tax loophole in Luxemborg to wash away most local taxes The European Union (EU) made waves late last month when its antitrust regulators — a part of the trade-regulating body known as the European Commission (EC) — issued a preliminary finding… – Continue reading

State aid: Commission investigates transfer pricing arrangements on corporate taxation of Amazon in Luxembourg

The European Commission has opened an in-depth investigation to examine whether the decision by Luxembourg’s tax authorities with regard to the corporate income tax to be paid by Amazon in Luxembourg comply with the EU rules on state aid. The opening of an in-depth investigation gives interested third parties and… – Continue reading

OECD bolsters relationship with Ukraine

7/10/14 – The 34-member countries of the Organisation for Economic Co-operation and Development (OECD) welcomed a Memorandum of Understanding (MOU) between the OECD and Ukraine which will help Ukraine’s efforts to tackle corruption, strengthen its tax system and promote competitiveness. Announced today in Paris, the MOU seeks to tap OECD… – Continue reading

Ireland’s tax regime nurtures innovation in avoidance

A tax-based industrial policy will not produce an innovative economy, writes James Stewart High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/bde702e4-4d5e-11e4-bf60-00144feab7de.html#ixzz3HKJXRQha Irish… – Continue reading

US delegation calls for repeal of FATCA

(CS) As part of a European tour organised by Republicans Overseas, US Senator Mike Lee on Tuesday visited Luxembourg to rally support for the repeal of the Foreign Account Tax Compliance Act, more commonly known as FATCA. Luxembourg and the US signed FATCA as an inter-governmental agreement in March this… – Continue reading

Washington resists Hockey’s tax crackdown on Silicon Valley giants

OHN KEHOE The global tax plan being pursued by Australia as G20 president, to compel low-tax paying multinationals such as Google and Apple to ­contribute more revenue to government coffers, could be derailed by political resistance in the United States. A prominent US senator in congress who would likely become… – Continue reading

The Italian approach to intercompany loans

The Italian tax authorities have been intensifying their focus on transfer prices involving financial intercompany transactions such as loans. Multinational corporations frequently resort to such transactions to optimise and rationalise the financial management of the entire group. In certain cases, the said optimisation tools pertaining to intercompany financial resources may… – Continue reading

UK government promises early consultation on new multinational tax avoidance rules

The UK government will shortly set out how it plans to implement globally agreed rules to prevent multinational companies from using artificial techniques to significantly reduce their tax bills, it has announced.06 Oct 2014 Tax Tax Disputes and Investigations UK Europe It has confirmed that it will consult on the… – Continue reading

Bernard Hickey: War on the high-tech dodgers

We pay our taxes. Why won’t they? It’s the topic every tax official and finance minister in the developed world is talking about and acting on, yet we hear little about it in New Zealand. Cracking down on tax avoidance by the world’s biggest technology companies – among them Google,… – Continue reading

How Apple’s Cork HQ became the centre of a bitter global war over corporate tax avoidance

The Californian corporation is Cork’s largest private employer, but has not won over all local hearts and minds. Now the city is at the heart of a fight over taxation that involves not just Ireland but also the European commission and the US senate Anger is mounting in Cork. The… – Continue reading

Swiss Bank UBS Could Face a Record-Breaking Tax-Evasion Fine

When the U.S. fined Credit Suisse Group (CSGN:VX) $2.6 billion in May, the Justice Department said it was the biggest penalty ever in a criminal tax-evasion case. That record could soon be shattered. France could impose a fine of €4.9 billion ($6.2 billion) on another Swiss bank, UBS (UBSN:VX), for… – Continue reading

The European Commission Opens an Investigation into Transfer Pricing Practices

On Tuesday, September 30, 2014, the European Commission (the Commission) published its decision to open an investigation intoIreland’s transfer pricing practices.  The Commission is also reviewing the transfer pricing practices of other EU Member States, including the Netherlands and Luxembourg.  Any advanced pricing agreement (APA) or other tax ruling within the EU… – Continue reading

Tax probes into wealthy foreigners stepped up

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/b2926d28-4b08-11e4-b1be-00144feab7de.html#ixzz3FSimy6uT The UK tax authority has significantly increased the amount of extra money it obtains… – Continue reading

Tax probes into wealthy foreigners stepped up

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/b2926d28-4b08-11e4-b1be-00144feab7de.html#ixzz3FSimy6uT The UK tax authority has significantly increased the amount of extra money it obtains… – Continue reading

Barcelona star Lionel Messi to face tax evasion trial

Barcelona and Argentina star Lionel Messi is to face trial for alleged tax evasion, a Spanish judge has ruled. The judge rejected a prosecution recommendation to drop the charges on the grounds the player’s father was responsible for his finances. Messi and his father Jorge are accused of defrauding the… – Continue reading

Osborne proposals for anti-abuse tax rules could damage UK competitiveness, expert warns

Plans to tackle UK tax avoidance by international technology companies could damage UK competitiveness if they are brought in before international measures are finalised, a tax law expert has warned.02 Oct 2014 Corporate tax Tax Tax Disputes and Investigations TMT Advanced Manufacturing & Technology Services UK Europe Heather Self of… – Continue reading

Fiat says Luxembourg tax deal probe will not significantly impact finances

Fiat-Chrysler (FIA.MI) reiterated on Thursday that a tax agreement granted by Luxembourg to one of its subsidiaries was legitimate and said the potential financial impact of a European Commission probe into the matter would not be significant. A tax concession that Luxembourg authorities granted to Fiat Finance and Trade in… – Continue reading

Prosecutors investigate EUR 200 mln tax evasion & money laundry case at Lukoil’s Romanian refinery

Romanian prosecutors from the Ploiesti Court of Appeal Prosecutor’s Office conducted several searches at the Petrotel refinery in Ploiesti, which is owned by Russian group Lukoil. The searches are part of a tax evasion and money laundering case in which the damage to the state is about EUR 200 million,… – Continue reading

ITALIAN FAMILY BUSINESS REPUTATIONS LARGELY UNSCATHED BY PRADA TAX PROBE

The reputation of Italian family businesses will escape unscathed despite news of yet another high-profile family being hit by allegations of tax avoidance, according to a family business academic. This week, family-owned Prada announced that its two chief executives, Miuccia Prada and Patrizio Bertelli, are under investigation for inconsistent tax… – Continue reading

European Commission extends probe into Gibraltar’s corporate tax regime

The European Commission has extended the scope of its investigation into whether Gibraltar’s corporate tax regime favors certain companies, in breach of EU state aid rules. Related Stories Brussels to accuse Apple over illegal Irish tax deals: FT Reuters EU says Ireland swapped Apple tax deal for jobs Reuters EU watchdog to… – Continue reading