Tax disputes reach record length
The length of time taken to settle tax investigations into large businesses has increased by 10% to a record 43 months as of March 2019 ... - Continue reading
Category: United Kingdom
Penalties for offshore tax evasion in the UK
HMRC updates its compliance check notice and it is bad news for tax evaders ... - Continue reading
Cyprus: The True Impact Of BEPS On International Business Structures
In the last decade, OECD officials have recommended measures to combat tax avoidance, culminating first in the BEPS (Base Erosion and Profit Shifting) initiative in 2015 and then the MLI (Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS) effective from July 2018 – yet have all their… – Continue reading
British overseas territories top corporate tax loophole index
Governments are stepping up efforts to recoup more tax from multinationals, with the European Commission forcing iPhone maker Apple to repay 13 billion euros after it used Ireland to cut its tax on European profits to almost zero. The Tax Justice Network, a group campaigning for transparency, said its study… – Continue reading
New ranking reveals UK’s role in breakdown of global corporate tax system
Decades of tax wars among the world’s richest countries are unravelling the century-old global corporate tax system, new research finds. Forty per cent of today’s cross-border direct investments reported by the IMF – $18 trillion in value – are being booked in just 10 countries that offer corporate tax rates… – Continue reading
Double taxation bill for Barney residents revealed
TAXPAYERS in Barnard Castle are paying £35,822 to fund town council services that could be provided by the county council, according to a report. Durham County Council used to provide a “double taxation grant” to parish councils so residents were not paying twice for some public services. Double taxation can… – Continue reading
UK and territories are ‘greatest enabler’ of tax avoidance, study says
"Embarassing and shameful" - says John McDonnell ... - Continue reading
UK – HMRC WINS TWO TAX AVOIDANCE CASES OVER USE OF OFFSHORE TRUSTS
The HMRC has successfully argued two cases in the First-tier Tribunal involving the use of offshore trusts to avoid tax and National Insurance Contributions (NICs). The case was brought against Hyrax Resourcing Limited and Curzon Capital Limited. The Tribunal decided in both cases that the disguised remuneration arrangements being promoted… – Continue reading
‘Fundamentally wrong’ stamp duty surcharge on non-residents will ‘dampen market’
The government’s proposed surcharge on non-resident property buyers offers real reasons for concern. John Goodchild takes out his stamp duty calculator to explain The government proposes to introduce a stamp duty (SDLT) surcharge on non-UK residents (both individuals and non-natural persons) purchasing residential property in England. The proposed level of… – Continue reading
Non-resident capital gains tax on UK commercial property ‘could block overseas investment’ – expert view
The Government’s changes to the tax treatment of overseas investment in UK commercial property will increase revenues in the short term but might prove short-sighted, write Craig Hughes and Russell Dickie There is, as they say, no place like home. However, in recent years, solid and steady capital growth and… – Continue reading
Welcome to Tax Hell, Little Earl of Sussex
Congratulations are in order to Prince Harry and Meghan, Duchess of Sussex, as they welcomed their yet unnamed son into the world yesterday. The new little Earl (he won’t get a Prince title like his cousins) weighed in at a healthy weighs 7lbs. 3oz and comes with a life long… – Continue reading
Bangladesh lost $5.8m due to BATB’s profit shifting: rights group
Bangladesh has lost $5.8 million in tax revenue in 2016 due to profit shifting in forms of royalties, fees and IT charges by British American Tobacco Bangladesh, according to a recent report of Tax Justice Network. The UK-based tax rights group in the report said from 2014 to 2016 BAT… – Continue reading
Woodbridge business owner indicted on tax evasion charge
NEWARK – The owner of a Woodbridge business that sold automotive industry warranty products has been indicted by a federal grand jury on three counts of tax evasion and three counts of filing false tax returns Danny Silva, of Woodbridge, owned an automotive industry business that sold warranty products which… – Continue reading
British American Tobacco shifts nearly $1bn out of developing countries into one UK office
For every dollar British American Tobacco (BAT) paid in tax in the countries it operates in, the giant multinational shifted more than half a dollar that would have been taxed locally to a UK subsidiary where BAT paid almost no tax. New analysis by the Tax Justice Network estimates Bangladesh,… – Continue reading
Corporate Canada’s Pile of Cash in Offshore Tax Havens Has Hit $353 Billion For the First Time in History
Luxembourg, Barbados and Bermuda are three of Canada’s top five destinations in the world for corporate cash After exploding to record levels under Stephen Harper’s Conservative government, the amount of money Corporate Canada is funneling through offshore tax havens has hit a new all-time high. According to data newly released… – Continue reading
Assad’s uncle ‘Butcher of Hama’ to stand trial on graft charges in France
Assad’s uncle ‘Butcher of Hama’ to stand trial on graft charges in France The uncle of Syria’s Bashar al-Assad is to stand trial in France on charges of building up a big property empire in the country using funds from Syrian state coffers, legal sources said on Wednesday. An investigating… – Continue reading
BVI anticipates financial sector boom under new rules
The financial services sector in the British Virgin Islands is set to soar as the new economic substance rules are expected to triple the number of persons employed by the industry. Under the new rules, it is mandatory for offshore financial services companies to set up physical offices in the… – Continue reading
HMRC vows crackdown on offshore tax evasion in Spring Statement
The UK has published a policy paper setting out the direction for HMRC’s updated strategy for offshore tax compliance, offshore tax compliance strategy: No Safe Havens 2019. In the document, published alongside the chancellor’s Spring Statement, HMRC said it will use hefty punishments for those who enable offshore tax avoidance…. – Continue reading
Crown Dependencies oppose UK ‘public register’ proposals
The chief ministers of Jersey, Guernsey and the Isle of Man are united against the recent proposals from Westminster to force public registers of company beneficial ownerships in the Crown Dependencies. More than 40 MPs have signed an amendment attempting to force the Crown Dependencies and British Overseas Territories to… – Continue reading
Guernsey: Investment Funds: Why Choose Guernsey?
The benefits of Guernsey as a fund domicile. Guernsey is one of the world’s largest offshore finance centres, with a thriving funds industry. Almost 1,000 investment funds, and well over 2,000 sub-funds, are currently administered in the island. The current value of funds under management and administration in Guernsey is… – Continue reading
Ikea Being Investigated for Dodging Taxes of More than $1.1 Billion
According to a Green party report in the European Parliament, Ikea has been accused of tax dodging for as much as 1 billion euros or $1.1 billion in its taxes from 2009 to 2014. The political organization has accused the retailer of a large scale avoidance of taxes. In the… – Continue reading
FAMILY BUSINESSES DOMINATE LIST OF BRITAIN’S HIGHEST TAXPAYERS
Britain’s wealthiest families paid $1.2 billion in tax in the last financial year at a time when the state revenue contributions of the world’s richest individuals and corporations are coming under increasing scrutiny. Campden FB totalled the tax bills for 2017-18 of the 21 families of significant wealth as conservatively… – Continue reading
One in nine US multinationals ‘fail to comply with tax transparency law’
Analysis of more than 600 US multinational corporations has revealed that 12 per cent failed to comply with UK law requiring them to publish their tax strategies. With the UK estimated to lose £25 billion in corporate tax revenue each year due to multinational corporations shifting profits out of the… – Continue reading
Global tax advisory services revenue grows to $20B, up $5B in 3 years
Tax advisory revenue at professional services firms expanded 8.6 percent to $20.3 billion in 2017, and grew by around $5 billion in just the three years from 2014 to 2017, according to a new report. The report, from Source Global Research, found that the main tax advisory services around the… – Continue reading
FBR drags feet over action on untaxed offshore investment
KARACHI: The Federal Board of Revenue (FBR) is dragging its feet over actions against Pakistanis who couldn’t declare offshore investments to evade taxes despite that the tax authority has stumbled upon critical financial data under an international treaty, people familiar with the matter said on Tuesday. Insiders said the apex… – Continue reading
Report: £250 billion fraud in UK tax havens greater sum than 20 years of foreign aid budget
Russia most common place of origin for fraudsters using British overseas territories A NEW report has identified over £250 billion in fraudulent funds directed through UK tax havens, more than over 20 years of the UK Government’s foreign aid budget. The report, by Transparency International, examined the UK’s overseas territories,… – Continue reading
EU Details Action Plan On Money Laundering
European Union finance ministers worked out a plan for combating money laundering and also made a deal on major bank reform on Tuesday (Dec. 4), according to reports from Reuters. The money laundering plan is a response to highly visible cases of alleged criminal activity at EU banks in countries… – Continue reading
Worldwide: UK Tax Round Up – November 2018
General UK Tax Developments Finance Bill The Finance (No 3) Bill 2018-19 (which will become the Finance Act 2019) was published on 7 November and includes legislation to enact the changes highlighted in our UK Budget blog post ( UK Budget Blog). Another key area covered by the Finance Bill… – Continue reading
FBR urged to clarify taxability of foreign rental income
There is confusion among taxpayers regarding taxability of foreign rental income in Pakistan and filing of income tax returns in view of avoidance of double taxation treaties signed between Pakistan and UAE, UK and Canada. A leading tax consultant Shahid Jami has approached the Federal Board of Revenue (FBR) for… – Continue reading
UK lawmakers seek removal of 12-year offshore investigation limit
Britain’s parliamentary upper house has requested the current investigation limit set out in the Draft Finance Bill 2018 be scrapped. The House of Lords’ request to HMRC would, if passed, remove the 12-year offshore investigation limit from the Draft Finance Bill 2018 – a proposal that has seen an outcry… – Continue reading
Post Panama Papers: are English trusts still trusted?
Trusts still remain under public scrutiny, but can their reputation be safeguarded, asks Stuart Price A recent government consultation on the law of trusts brought out some interesting issues concerning how the status quo aligns with the principles of transparency, fairness and simplicity (the principles that, at least in the… – Continue reading
HMRC targets wealthy families with trusts
Changes to Britain’s centuries-old trust regime are looming as HMRC is concerned that trusts are letting some families pay less inheritance tax than those who do not pay accountants to set up the complex arrangements. To look at if the law should be changed, HMRC has published wide-ranging research of… – Continue reading
European Union digital tax levy could be delayed until 2020
Arriving at the meeting Tuesday in Brussels, the Danish minister of Finance, Kristian Jensen, said of his side: “Everything is possible in politics but I think that it is very hard to reach an agreement on the taxation of the digital economy”. Under the proposal, a 3pc levy would be… – Continue reading
HMRC to be made preferred creditor in tax avoidance crackdown
A range of measures designed to crackdown on tax avoidance and evasion with a view to raise £2bn over the next five years have been announced by the government. HMRC will be made a preferred creditor in insolvencies, Chancellor Philip Hammond announced today. The government will end the practice of… – Continue reading
Britain to start taxing big internet companies
LONDON — Britain’s Treasury chief unveiled Monday a new tax on big internet companies’ revenues, insisting it is time that the global tech giants with profitable business in the United Kingdom pay their fair share for public services. Philip Hammond made the announcement as he outlined his budget, explaining that… – Continue reading
Creditsafe pays £1m to HMRC under ‘Diverted Profits Tax’
Caerphilly-based credit referencing company Creditsafe has paid Her Majesty’s Revenue and Customs almost £1 million after it was served with a ‘Diverted Profits Tax’ charge. Registered as Creditsafe Business Solutions, the company, based at Caerphilly Business Park, sells business data for credit check purposes and other uses. According to full… – Continue reading
UK and Cayman resume crime-fighting cooperation after row
The UK and the Cayman Islands have reached an agreement that will allow the continued cooperation in the fight against money laundering and other crime after complaints from London that information was not being shared. The minister of state for the Overseas Territories Tariq Ahmad and premier Alden McLaughlin released… – Continue reading
Business Ace Up Germany’s Sleeve for British-Style Companies After Brexit
While preparations for a Brexit deal slowly gain pace in the UK, the German government hasn’t been wasting any time. The German Chancellor Angela Merkel is not a fan of Brexit and having predicted that the future UK-EU relationship is likely to be based on a “very, very intensive free… – Continue reading
UK court refuses to extradite former Trust Bank owner to Russia
Magistrates’ Court ruled that Ilya Yurov persecution was politically motivated because of his connections with Khodorkovsky. Westminster Magistrates’ Court refused to extradite Ilya Yurov, the former part owner of Trust Bank, who is on the international wanted list, RBC reported. The court believes that the extradition would violate human rights…. – Continue reading
German companies unconvinced by Brexit tax reduction promises: study
BERLIN, Sept. 27 (Xinhua) — German companies are highly sceptical that the British government can deliver on a promise to attract more business to Britain by lowering taxes after Brexit, a study published on Thursday by the Foundation for Family Business in Germany and Europe found. According to the study,… – Continue reading
Gibraltar enters Brexit negotiations
Spain’s Prime Minister Pedro Sánchez is scheduled to meet with the European Union’s chief negotiator Michel Barnier to push for an annex addressing smuggling in the British territory, as well as cross-border workers and tax evasion. Gibraltar is also on the agenda. As for Gibraltar, however, Spain will reportedly not… – Continue reading
UPDATED: FCO CHALLENGES PREMIER’S OFFICE CLAIMS OF UK CRIME AGENCY CO-OPERATION
The Foreign and Commonwealth Office is challenging Cayman’s claims of co-operation with the UK National Crime Agency. This, in response to a Premier’s Office statement issued Saturday (15 September) refuting claims from UK National Crime Agency Director Donald Toon that Cayman authorities are uncooperative and his agency “struggles” to get… – Continue reading
Brits living in SA must declare their offshore assets
The British High Commission has advised British citizens to report and pay their tax on foreign income and assets. In a media release, the Commission said as part of the British Government’s “Requirement to Correct” legislation UK taxpayers must make sure that all their foreign income and assets, where there… – Continue reading
A Bird’s Eye View on General Data Protection Regulation (GDPR)
The General Data Protection Regulation (GDPR) is a regulation in European Law on data protection and privacy for all individuals within the European Union (EU). The EU General Data Protection Regulation (GDPR) superseded the UK Data Protection Act 1998 on May 25, 2018. Significant and wide-reaching in scope, the new… – Continue reading
Panasonic to Move European Headquarters Out of UK as Brexit Concerns Grow
Several multi-national corporations have moved their European headquarters outside of the UK ahead of Brexit, and many others are expected to follow suit, especially as the likelihood of a no-deal Brexit rises further. Japanese tech giant Panasonic will be transferring its European HQ away from London to Amsterdam in October… – Continue reading
Declare offshore assets or face consequences warns leading accountant
When it comes to fulfilling your tax and National Insurance (NI) obligations, compliance is everything. HM Revenue & Customs (HMRC) has recently highlighted a new area of concern for UK taxpayers, urging those who haven’t already done so to declare any foreign income or profits on offshore assets. Taxpayers have… – Continue reading
UK – GOVERNMENT PUBLISHES OFFICIAL GUIDANCE ON ENGAGING WITH UMBRELLA COMPANIES
The HMRC published an official guidance yesterday on engaging with umbrella companies in the UK. The guidance provides advice and spotlights umbrella companies that effectively operate tax avoidance schemes. “Most employment agencies and umbrella companies operate within the tax rules. However, some umbrella companies and agencies promote arrangements that claim… – Continue reading
EU Fails To Fix ‘Outrageous’ Monaco Loophole Which Helps Super-Rich Avoid Tax
Around 2,000 millionaires – many of them billionaires – call Monte Carlo their home and avoid paying billions of euros in tax. Sputnik spoke to the UK Socialist Party’s Deputy General Secretary, Hannah Sell, about why France and the European Union have done nothing to combat this tax haven in… – Continue reading
Anguilla to launch residency by investment programme
THE VALLEY, Anguilla — The government of Anguilla is to implement a “Residency by Investment” programme as part of its medium-term agenda. It will allow foreign nationals to acquire permanent residency status in Anguilla by making a financial contribution to the island and after proving to be of good health… – Continue reading
Booksellers urge government to ‘act quickly’ on ‘Amazon tax’
News that the government may bring in an ‘Amazon tax’ to help “rebalance the playing field” between physical and online retailers has been welcomed by booksellers. After department store retailer House of Fraser became the latest high street chain to go into administration on Friday (10th August) Philip Hammond said… – Continue reading
