Fossil fuel companies and nuclear power producers, some of which have been involved in shaping government energy policy, will receive over £834 million* in state subsidies for the winter of 2019-2020, the government has announced. The big winners of the capacity market auction, which is managed by National Grid and… – Continue reading
Companies like Mappin & Webb have not paid any corporation tax for the past five years, according to the Sunday Times Several companies which hold the much-coveted royal warrant have come under scrutiny after being accused of benefiting from tax havens and moving their manufacturing out of Britain. The warrants… – Continue reading
A “final” disclosure facility which will give UK taxpayers a means of correcting any irregularities involving offshore income and gains will run until September 2018, one year longer than originally anticipated, the government has announced. No details of the planned disclosure facility have been published, but it is expected to… – Continue reading
The Foreign Account Compliance Act (FACTA), while designed to “minimize tax cheats”, is making banking — and life in general — painfully difficult for millions of American expats, according to Mike Michelini, a Hong Kong-based business consultant withglobalfromasia.com. Here is his editorial. Under FACTA, all 8 million or so Americans… – Continue reading
An Uckfield investment banker has been jailed for his involvement in a £2.2 million tax fraud. Phillip Jenkins, of Ketches Lane, Sheffield Park, Uckfield, was found guilty of conspiracy to cheat the Public Revenue and sentenced to four and a half years in prison. Jenkins was an investment banker working… – Continue reading
New legislation brings the possibility of jail sentences for those who aren’t upfront with HMRC about assets held overseas A new criminal offence is due to hit the statute book next year under which people who engage in tax evasion abroad could get a criminal record, fines and a jail… – Continue reading
One of today’s most talked about tax topics is the Offshore Voluntary Disclosure Program of 2014 (OVDP) and the compliance of individuals, institutions, and governments with the Foreign Account Tax Compliance Act. However, it is vital for one to understand why the IRS provided the public with the opportunity represented… – Continue reading
An IFA and an accountant have been convicted of attempting to steal millions in a tax fraud linked to the film industry. Terrance Potter, formerly an accountant at EY, was identified as the architect of the fraud following an investigation by HM Revenue & Customs (HMRC). Potter devised and sold… – Continue reading
Cyprus will sign agreements with Ukraine on Friday, as President Nicos Anastasiades visits Ukraine to make deals on bilateral issues such as double taxation, higher education, energy, and other areas of cooperation. Anastasiades is on an official visit to Ukraine and will meet on Friday with the President of Ukraine… – Continue reading
Following an agreement between the UK and Jersey, HMRC has published an important change of interpretation on residence for treaty purposes. HMRC’s view now is that the better interpretation of residency article in the UK-Jersey Double Tax Agreement 1952 (“UK Jersey DTA”) is that it includes a tie breaker provision… – Continue reading
In 2015, after returning from a 40 years-long Swiss tax exile, IKEA’s founder and the 11th richest person in the world, Ingvar Kamprad, paid Swedish tax for the first time. In 2014, Kamprad declared income of €1.9 million in Sweden. As a result, he was subject to Swedish personal income… – Continue reading
We have on several occasions fingered Panama as a particularly recalcitrant secrecy jurisdiction: our recent Panama Narrative Report spills a fair number of beans in that respect. Its recalcitrance is perhaps hardly surprising, given the quantity of Colombian and Mexican drugs money believed to be sheltered there – to name… – Continue reading
Patent Boxes, Innovation Boxes, Intangible Property Boxes, Knowledge Development Boxes (IP Regimes) – countries may use different names, but all of these regimes are designed to allow a preferential rate of tax to be applied to income generated from intangible property (IP). There are a number of these regimes in… – Continue reading
There are a variety of benefits to moving offshore, yet few would argue the assertion that tax neutrality is paramount among them. As anyone familiar with the phrase “tax haven” would surely recognize, many countries offer strongly favorable tax terms as an incentive to draw new business. Written by CT… – Continue reading
An income tax treaty between Cyprus and Switzerland has entered into force, and will be effective 1 January 2016. 10 December 2015 The Cyprus-Switzerland income tax treaty does not include a limitation on benefits (LOB) clause. Withholding tax provisions The treaty includes the following withholding tax provisions: Dividend payments subject… – Continue reading
The Cayman Islands Tax Information Authority (“TIA“) has issued an advisory addressing several points of note regarding the Common Reporting Standard (“CRS“) in the Cayman Islands. Updated Self-Certification Forms The TIA has published new entity and individual self-certification forms which address the account holder disclosure requirements under each of CRS,… – Continue reading
The Department of Justice announced today that Cornèr Banca SA (Cornèr) and Bank Coop AG (Bank Coop) reached resolutions under the department’s Swiss Bank Program. The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United… – Continue reading
A global law firm has today criticised HM Revenue & Customs’s (HMRC) recently announced plans for cracking down on tax avoidance by businesses, saying that parts of the proposals would make HMRC the “judge, jury and executioner.” Further details on legislation that would allow the UK tax authority to place… – Continue reading
As the EU prepares for country-by-country tax reporting requirements, businesses would do well to understand the minutiae of the upcoming regulations October 2015 was a busy month for announcements regarding base erosion profit shifting (BEPS) and country-by-country reporting. The OECD issued the last of the guidelines on BEPS, the various… – Continue reading
Companies will to scrutinise their R&D activity more closely under proposed changes to patent box regime BUSINESSES will to scrutinise their R&D activity more closely under proposed changes to the design of the UK Patent Box regime outlined by the government The government is making the changes in order to… – Continue reading
When you think of a tax haven, you probably imagine the far off tropical islands of Bermuda or Grand Cayman, but the reality is that there is a major tax haven even closer to home in the state of Delaware. A new report from Institute on Taxation and Economic Policy… – Continue reading
Leeds United chairman Massimo Cellino has been cleared of charges of tax evasion relating to the transfer of two players during his time as owner of Italian club Cagliari. Cellino was acquitted by a court in Sardinia today after his lawyers successfully argued that a government ruling introduced last year… – Continue reading
Chisinau, 10 December /MOLDPRES/-The parliament today ratified a Moldovan-American intergovernmental cooperation agreement to facilitate the implementation of the provisions of the Foreign Account Tax Compliance Act (FATCA). According to the chairman of the parliamentary commission for international relations and EU integration, Valentina Buliga, the ratified document sees that U.S. authorities… – Continue reading
The Cayman Islands Tax Information Authority (“TIA“) has issued an advisory to confirm that the limited life debt investment entity (“LLDIE“) exemption established under FATCA has been extended in the Cayman Islands to the OECD Common Reporting Standard (“CRS“).1 As such, a Cayman Islands LLDIE has been designated as a… – Continue reading
Ukraine’s state budget next year may amount to only $38 billion. For perspective, that is less than half of the municipal budget of New York City, with eight million residents, compared to Ukraine’s 43 million people. But viewed another way, the spending represents 40 percent of the official gross domestic… – Continue reading
The financial crisis at Bolton Wanderers has become critical after Her Majesty’s Revenue and Customs issued a winding-up petition for unpaid PAYE tax and VAT, the club have confirmed. Bolton, who were in the Premier League for 11 years until relegation in 2012 , announced they could not pay their… – Continue reading
NEW DELHI: With India stepping up efforts to bring back illicit funds stashed abroad, Switzerland has said both sides have improved their cooperation on tax matters following several high-level meetings. Over the past few months, both countries have been working closely on mutual administrative assistance, according to the Swiss government…. – Continue reading
Macedonia’s Prime Minister Nikola Gruevski and his Israeli counterpart Benjamin Netanyahu signed Wednesday in Jerusalem a declaration of friendship, as well as agreements on avoiding double taxation and protection of investments. The Prime Ministers affirmed the excellent relations between the two countries, based on mutual friendship and understanding, Gruevski’s Cabinet… – Continue reading
Two tax compliance agreements with Liechtenstein and Switzerland have received the seal of approval from the EU council of ministers today, reports Economia. And a third – with San Marino – was approved and signed today. They herald the start of a new era of tax transparency with three countries… – Continue reading
On 1 December 2015, the Income Tax (Approved International Agreements) (Implementation) (Common Reporting Standard) Regulations 2015 came into operation. The regulations implement the Council of Europe–OECD Mutual Assistance Treaty (1988) (as amended through 2010), under which, in order to improve international tax compliance, information will be automatically exchanged in accordance… – Continue reading
Thirteen jurisdictions signed the OECD Multilateral Competent Authority Agreement (MCAA) at a meeting on October 29-30, 2015, in Barbados. In joining the MCAA, the territories commit to automatically exchange tax information with other nations’ tax authorities under the OECD’s new tax information exchange standard, the Common Reporting Standard. A total… – Continue reading
Germany and Australia signed a new income tax treaty that follows, in some instances, the OECD Model Tax Convention, but not in other instances. For example, the treaty includes definitions for installation permanent establishments (PEs) and agency PEs, with the latter defined with a view to the OECD’s base erosion… – Continue reading
Source: United Kingdom – Executive Government & Departments – Press Release/Statement: Headline: News story: Finance Bill 2016 paves way for even simpler tax system and tough offshore evasion regime The government has today (Wednesday 9 Wednesday) published draft tax legislation to implement policies published at Summer Budget 2015 and Autumn… – Continue reading
Changes to the tax law in Sweden reflect additions of anti-avoidance provisions to the EU Parent/Subsidiary Directive and are intended to bring Swedish tax law into compliance with the directive. The new anti-avoidance provisions will be effective 1 January 2016—which is also the timeframe for EU implementation of the directive’s… – Continue reading
Publican pays €3m in tax, interest, and penalties Two of the four largest published tax settlements in the last quarter were made by businesses in the Cork region. Revenue’s latest tax defaulters’ list for the three months to the end of September shows that a total of €13.99m was recouped,… – Continue reading
Akhilesh Ranjan, joint secretary (foreign tax), who led India’s initiative in the BEPS project, candidly shared his views on India’s plans for its implementation and what lies in the future. The fundamental principle of the BEPS project, is that income of MNCs should be taxed in that country where economic… – Continue reading
Policy will disrupt investment: Samuda THE Government fell back on its huge majority in the House of Representatives yesterday to approve the back tax provisions included in new transfer pricing regulations despite objections from the Opposition that the measure would strangle businesses and obstruct investments. The 21 Government members (excluding… – Continue reading
The Cayman Islands Ministry of Financial Services’ Department for International Tax Cooperation (DITC) on 8 December 2015 issued an industry advisory regarding the ongoing implementation of the Common Reporting Standard (CRS) in the Cayman Islands. The advisory issued two new templates; the entity self-certification form and the individual self-certification form… – Continue reading
It is time for re-regulation; Europe is strengthening its AML/CFT measures in order to lower current terrorist financing (TF) risks. “Money is the lifeblood of terrorist operations,” declared George Bush after the 9/11 attacks. French finance minister Michel Sapin has beaten the same drum when he recently claimed that “the… – Continue reading
Who is likely to be affected This measure will affect taxpayers engaging in abusive tax avoidance arrangements which fall within the General Anti Abuse Rule (GAAR). General description of the measure The measure will introduce a penalty of 60% of the tax due which will be charged in all cases… – Continue reading
Half of requests to come clean came from Lombardy (ANSA) – Rome, December 9 – The government’s voluntary disclosure program will generate four billion euros in taxes by year’s end, Internal Revenue chief Rossella Orlandi said Wednesday. Hidden assets equal to 59.5 billion euros have emerged thanks to the voluntary… – Continue reading
Barclays has launched its new offshore banking proposition at the Dubai International Financial Centre (DIFC) and regulated by the Dubai Financial Services Authority. Commenting on the launch, Andrew Mortimer, managing director and UAE Country Manager, said: “We have further developed Barclays’ International Banking proposition to provide our clients with a… – Continue reading
ROME—The Italian government will pocket over €4 billion ($4.4 billion) in proceeds from a tax amnesty it launched as part of a broad crack down on Italian money stashed abroad. The additional money will be a boon for the government, as it seeks to meet its budget targets amid a… – Continue reading
Canada and Switzerland have entered into an agreement which will commence in 2018 for the automatic exchange of information. Swiss banks are already requiring Canadian clients to provide evidence that their Swiss offshore bank accounts have been reported in Canada on form T1135 and offshore income reported on a T1… – Continue reading
The present French Tax Update contains (i) an overview of the main provisions proposed by the draft amending finance bill for 2015 (loi de finances rectificative pour 2015, 2015 Draft Amending Finance Bill), (ii) an update of the parliamentary amendments adopted in respect of the draft finance bill for 2016… – Continue reading
HM Revenue & Customs (HMRC) today published the results of its consultation, alongside draft legislation, for a proposed criminal offence for companies which fail to prevent the facilitation of tax evasion. The draft legislation lays down provisions for a criminal offence where somebody who is performing services on behalf of… – Continue reading
On December 9, 2015 the UK HM Revenue & Customs (HMRC) published a policy paper titled: “Corporation Tax: anti-hybrid rules”. Next to publishing the policy paper the UK Government also announces that on December 22, 2015 a series of examples illustrating the application of the hybrid mismatch rules will be… – Continue reading
On December 9, 2015 the UK HM Revenue & Customs (HMRC) published a policy paper titled: “Corporation Tax: Patent Box – compliance with new international rules”. The policy paper gives the following general description of the measure: “The government is proposing changes to the design of the UK Patent Box… – Continue reading
By Anakhanum Khidayatova – Trend: A lot should be left to the private sector to achieve constructive relations between Azerbaijan and Israel, according to Dan Stav, Israeli ambassador in Baku. “In order to encourage business in each country, you need to create conducive environment,” he said speaking to Trend Dec…. – Continue reading
Trigger for prosecution will be loss to HMRC of £25,000 a year, up from £5,000 – but experts say legislation is ‘step too far’ Government plans to make offshore tax evasion a criminal offence even when there is no proof of intention to break the law have been softened under… – Continue reading
