Category: Spain

Double Taxation Avoidance Bill passes second reading at House of Reps

The quest by the President Muhammadu Buhari’s administration to improve the ease of doing business in Nigeria and diversify the nation’s economy on Wednesday received a boost. This followed the passage of “a Bill for an Act to Provide for the Domestication and Enforcement in Nigeria of the Avoidance of… – Continue reading

Barcelona accept to pay 5.5-million-euro fine over tax evasion charges on Neymar transfer

Barcelona on Monday accepted to pay a 5.5-million-euro ($6.2 million) fine over Neymar’s contested 2013 transfer in a deal with prosecutors that sees the club avoid trial on tax evasion charges. “It was better to accept this agreement than continue on with the uncertainty that has dragged on for a… – Continue reading

Passing Bilateral Tax Treaties Will Promote American Competitiveness

Pending before the United States Senate are a number of tax treaties. Seven of these are bilateral treaties between the U.S. and a foreign country, in this case Chile, Hungary, Japan, Luxembourg, Poland, Spain, and Switzerland. ATR urges all Senators to support these routine, yet important treaties that protect against… – Continue reading

Royals took advantage of Spain’s tax evasion amnesty

Four relatives of the Spanish king benefitted from an amnesty on tax evasion to ‘regularize’ previously undeclared assets worth over €4million, it has emerged. An elderly relative of the King, her son and two of her grandchildren, paid less than two percent to Spain’s treasury in order to make their… – Continue reading

Ireland delays EU corporate tax deal

Ireland has helped delay an EU deal on corporate tax-dodging over fears it could harm the economy. Finance Minister Michael Noonan told his EU counterparts in Brussels he would not sign up to the deal because it affects Ireland’s sovereign right to set tax rates. “We want to make sure… – Continue reading

Exclusive: EU aims to rule on Amazon’s Luxembourg tax deal by July – sources

BRUSSELS – EU state aid regulators aim to rule on Amazon’s (AMZN.O) tax deal with Luxembourg by July, two people familiar with the matter said on Thursday, and it may order the country’s tax authorities to recover about 400 million euros ($448 million) in back taxes. The European Commission’s decision… – Continue reading

Post-Panama: Why your AEOI frameworks must now be automated, auditable and adaptable

Hot off the heels of the Panamanian documents leak, 5 EU countries announced last month that they have agreed to exchange beneficial ownership information. France, Germany, Italy, Spain and the UK will now automatically exchange information on the ultimate beneficial owners of companies and trusts. These 5 EU countries are… – Continue reading

Liberia: Africa’s unknown tax haven with much to lose

As world leaders consider what to do about the revelations emerging from the Panama Papers, Liberia’s government will be worrying about the fall-out that may cross the Atlantic Ocean from the affair. The European Union has announced it will be creating a new “tax haven blacklist”, to be released by… – 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

Banks to help create a national register of offshore firm owners

Greek banks and the state are in the process of creating a national register for offshore company owners, in compliance with a European Union directive to that effect. The register will be created on the Teiresias databank, known from its list of insolvent borrowers. Access will be granted to the… – Continue reading

Once A Tax Haven, Gibraltar Now Says It’s Low-Tax

Gibraltar, a tiny British territory at Europe’s southern tip, is famous for its geography — a huge limestone rock — that appears on the Prudential logo. It’s a global center for offshore banking, with the trappings of wealth to prove it: Luxury high-rises tower over super yachts in Gibraltar’s marina. The… – Continue reading

Scottish residents will be blocked from dodging higher taxes, HMRC says

Is there a serious risk that Scotland’s tax revenues would be hit hard by people fleeing south to avoid the new top rates of tax advocated by Labour or the Scottish Greens? HM Revenue & Customs is not convinced that there is. With a new Scottish rate of income tax… – Continue reading

International and Irish Tax Update – March 2016

Summary The pace of change in international tax is dramatic. Each month brings new initiatives and developments at both national and supra-national levels. In this update, we focus on recent changes which are relevant to our clients. The OECD Base Erosion and Profit Shifting (“BEPS”) reports were finalised in October… – Continue reading

Italy Investigates Amazon for Alleged Tax Avoidance

Amazon’s Italy chief tells Bloomberg the company is cooperating with the authorities European Union member states continue their crackdown on American companies that they believe have avoided tax payments. Amazon.com, Inc. (NASDAQ:AMZN) is the latest company under investigation for its tax dealings in Italy, the company’s chief for Italy and… – Continue reading

Getting to the crux of Ncell buyout deal

CAN NEPAL IMPOSE CAPITAL GAINS TAX ON NCELL BUYOUT DEAL? This question has been making rounds ever since TeliaSonera, the largest shareholder in Nepali telecom operator, Ncell, announced its decision to sell 60.4 per cent of its stake in the telecom company to Malaysian giant, Axiata, for $1.03 billion. Divergent… – Continue reading

Kenya: Treasury Defends Controversial Mauritius Tax Agreement

Treasury is still fighting to keep a tax agreement out of parliament after a lobby group sued them over a pact it signed with Mauritius back in 2012. The double taxation avoidance agreement allows firms registered in the two countries to pay taxes in only one country. It also allows… – Continue reading

Why tax technology is critical in 2016

2015 has officially come to an end. Amidst the ending celebrations, packing away of decorations, and last spoonful of dessert, many of us are putting together our work plans and resolutions for 2016. And looking back at last years’ list, there remains one capitalised, un-crossed-off item: BEPS Perhaps your organisation… – Continue reading

31 nations sign agreement on exchange of country-by-country transfer pricing reports

In an effort to provide their tax administrations with more tools to combat corporate tax avoidance through transfer pricing, officials from 31 countries today signed an agreement setting out the parameters for automatic exchange of country-by-country reports on large multinational corporations. The agreement — the Multilateral Competent Authority Agreement on… – Continue reading

Intellectual property taxation in post BEPS era

On 5th October 2015, the OECD released its final reports setting out the action plan on Base Erosion and Profit Shifting (BEPS) project, thus concluding the two year project which started at the behest of G20 countries in 2013. The reports are aimed at suggesting the measures to reform the… – Continue reading

Javier Mascherano sentenced to jail over tax evasion charges – but is unlikely to serve prison time

The Argentine has been fined €815,000 and handed a year’s sentence for two counts of fiscal crimes committed in 2011 and 2012 Javier Mascherano has been sentenced to a year in prison but is unlikely to ever serve time in jail, after a verdict was reached in his tax evasion… – Continue reading

Lionel Messi’s tax fraud trial conflicts with Copa America

MADRID (AP) – Lionel Messi’s tax fraud trial has been set for May 31-June 3, conflicting with the start of the centennial Copa America in the United States. The Copa America Centenario will kick off June 3, meaning the five-time world player of the year will not have the best… – Continue reading

UK expats face ‘double whammy’ over tax affairs

The government is ready to restrict British expatriates’ tax benefits in a bid to get agreement with the European Union over renegotiating the UK’s terms of membership, according to press reports. The Guardian has reported that expats could be banned from claiming tax credits for up to four years as… – Continue reading

2016 CHALLENGES FOR COMPANIES OPERATING IN JERSEY

Last year Jersey cemented its position as a leading centre for companies looking to list – as reflected in the rise in volume and value of Jersey companies listed on exchanges around the world. Here are some challenges that lie ahead in this jurisdiction over the next 12 months. In… – Continue reading

Spain’s Princess Cristina Faces Historic Trial – and a Possible 8-Year Prison Sentence

Once known as “Spain’s Princess Diana,” King Felipe’s younger sister is facing criminal fraud charges. Monday saw the start of the trial of Princess Cristina de Borbón – the first member of Spain’s royal family ever to be put on trial in a criminal court. Cristina, 50, is charged with… – Continue reading

Brazil: Tax Treaty Series: The Bilateral Income Tax Treaty Between Brazil And Canada

This is the first of our series of posts on Brazilian tax treaties. In each post we will provide an overview of a specific tax treaty between Brazil and a particular foreign country, as well as comments on any Brazilian administrative or judicial precedents applying the treaty, and highlights on… – Continue reading

2015: A Watershed Year in Corporate Tax?

Multinational companies have enjoyed a sustained period of falling corporate tax rates around the world. However, with the conclusion of the OECD’s base erosion and profit shifting project earlier this year marking the start of fundamental changes to the international tax system, and with governments more determined than ever to… – Continue reading

How Connery’s wife could be jailed over a £5.5m fraud: A luxury villa in the sun, a ruthless Mafioso mayor – and a plot as colourful as any Bond film. DAVID JONES investigates

While the latest Bond movie, Spectre, brings glowing praise for Daniel Craig, life is running rather less smoothly for the prototype 007. In truth, Sir Sean Connery’s personal story has never remotely resembled that of the unruffled agent he so consummately portrayed. Down the years, he has faced a plethora… – Continue reading

Brazil’s Superior Court of Justice issues decision exempting payments of services to Spain from withholding tax in Brazil

In the context of a series of recent developments on the tax treatment of cross border services payments from Brazil, the Superior Court of Justice (STJ) recently ruled that payments for services performed by a Spanish company without permanent establishment in Brazil are not subject to withholding income tax in… – Continue reading

Spain and Finland sign new treaty to avoid double taxation and to fight tax fraud

Given that the latest treaty was signed on 15 November 1967, the two countries felt it was appropriate to revise it in full. The new treaty, signed on Tuesday by the Spanish Ambassador to Finland, María Jesús Figa, and the Finnish Minister for Finance, Alexander Stubb, seeks to enable tax… – Continue reading

Incentives for innovations in Intellectual Property (IP) and State Aid: the current legal framework

A review of the application of EU State Aid rules is crucial for determining if a national tax incentive scheme for IPs is being implemented lawfully. The result of such a compatibility analysis is not certain. In some decisions, the Commission considered ‘Tax Box’ regimes as not being State aid… – Continue reading

Multinational moves could prompt major losses in corporate tax

Action on tax avoidance could see €600m go from the pharma sector, says report International moves on multinational tax could threaten Ireland, with a potential annual loss of corporate tax revenue of €600 million or more from the pharma sector alone, according to a new report from Chartered Accountants Ireland…. – Continue reading

IP BOX: Italian and European Legal Framework

On 22 December 2014, the Italian Parliament approved the Budget for 2015.40 Among other measures, the Law introduces the possibility of an exemption from corporate income tax (IRES, generally levied at 27,5%) and local tax (IRAP, generally levied at 3,9%) on income derived from qualifying intangible assets (such as patents,… – Continue reading

Blacklisted HK: The Italian Case

More good news for Hong Kong before the end of 2015: Italy decided to remove Hong Kong from its national blacklist on November 30, 2015. Italy ratified a comprehensive agreement for the avoidance of double taxation (CDTA) signed with Hong Kong on June 18, 2015. Facilitating an early removal of… – Continue reading

Judge drops charges against Messi relating to tax fraud in charity games

It’s been proved that the Argentina international did not receive money for the matches A Barcelona judge has archived the case against Lionel Messi regarding a claim he committed tax fraud in relation to six charity matches he participated in in 2012 and 2013, concluding that the Argentine international did… – Continue reading

Isle of Man to be removed from Spain’s ‘tax haven blacklist’

The Isle of Man has signed a tax information exchange agreement with Spain, reports the Isle of Man Today. It’s part of what the Manx government calls its ‘continuing commitment to meet international standards in tax co-operation and transparency’. The agreement was signed by Mr José Manuel Gutiérrez Delgado, Financial… – Continue reading

Tax evaders to feel full force of the law

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

The Changing Landscape for IP Regimes Around the World

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

Countering terrorism financing through anti-money laundering measures

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

France: French Tax Update – Amending Finance Bill For 2015 And Noteworthy Q4 Case Law

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

Corporate taxation proposals: Malta ‘breaks silence on reservations’

Finance Minister Edward Scicluna pushes for ‘flexibility’ during today’s meeting of EU finance ministers in Brussels Malta has come out strongly against applying “rigid rules”, urging the European Commission to adopt a more flexible approach as it drafts legislation on taxation. Corporate tax was high on the agenda of EU… – Continue reading

What CFOs Need to Know About BEPS

The Base Erosion and Profit Shifting (BEPS) project is an initiative being pursued by the Organization of Economic Cooperation and Development (OECD) to curtail perceived exploitation of international tax rules and loopholes by multinational enterprises (MNEs). The OECD’s BEPS project was initiated in 2013 at the request of the Group… – Continue reading

Corporate tax revenues falling- OECD

Corporate tax revenues have been falling across OECD countries since the global economic crisis, putting greater pressure on individual taxpayers to ensure that governments meet financing requirements, according to new data from the OECD’s annual Revenue Statistics publication. Average revenues from corporate incomes and gains fell from 3.6% to 2.8%… – Continue reading

Isle of Man signs tax co-operation agreement with Spain

As part of the Isle of Man Government’s continuing commitment to meet international standards in tax co-operation and transparency, a Tax Information Exchange Agreement (TIEA) has been signed with Spain. The agreement was signed by Mr José Manuel Gutiérrez Delgado, Financial Counsellor of the Embassy of Spain to the UK,… – Continue reading

Automatic exchange of information obligation to identify and report the tax residence of the holders of financial accounts

Royal Decree 1021/2015, of November 13, establishing the obligation to identify the tax residence of persons who hold or control certain financial accounts and to provide information concerning them in the area of mutual assistance. On November 17 last the above-mentioned Royal Decree was published in the Official State Gazette…. – Continue reading

The foreign investment tax advisers should pay attention to

Taxes levied on foreign stock dividends can be recouped, but it makes most sense for high-net-worth clients with multimillion-dollar positions Advisers could be missing out on a way to maximize returns on their clients’ foreign investments. Americans investing in non-U.S. stocks could be earning less of a return than they’d… – Continue reading