Category: Washington

ANCA and Senator Menendez Discuss Benefits of a U.S.-Armenia Double Tax Treaty

Bilateral Economic Accord Key to Growing Trade and Investment WASHINGTON—Armenian National Committee of America (ANCA) Chairman Raffi Hamparian recently held a working meeting on Capitol Hill with U.S. Senator Robert Menendez (D-N.J.) on a range of shared priorities, including the negotiation of a new U.S.-Armenia Double Tax Treaty. This bilateral...

Campaign launched to axe FATCA tax rules

A CAMPAIGN has been launched in Washington DC to repeal international tax regulations that lobbyists say have cost Jersey and other finance centres billions of pounds. The controversial Foreign Account Tax Compliance Act, which was introduced in 2010 by President Barack Obama, requires all finance firms outside the US to...

U.S. tax reform plan “not likely” to badly impact Canada: Expert

WASHINGTON — An American tax authority who helped champion a reform now being considered by the U.S. Congress says Canada would not be among the countries hardest hit by the introduction of so-called border adjustments. Alan Auerbach is among the leading proponents of the push to restructure corporate taxes so...

Rate Competition Is New International Tax Planning Reality

Lower corporate tax rates around the world are expected to play an important part in multinational companies’ tax planning in 2017, with a rate as low as 15 percent on the table in the U.S. and countries such as the U.K. planning to maintain or lower their current rates. A...

How Donald Trump’s tax plan might save Apple billions of dollars

Over the past few years, Apple’s cash hoard has swelled to near unthinkable levels. Per the company’s most recent earnings report, Apple now has more than $237 billion in cash and other securities, anchored of course by the company’s insanely lucrative iPhone. Though the iPhone only has a thin slice...

Trump’s Corporate Tax Reforms: What CFOs Need to Know

While Trump wants to close loopholes, many of them stem from public policy concerns — not “special interests.” After a dramatic upset victory in one of the most bitterly contested presidential races in recent history, Donald Trump now has some serious work to do. His corporate tax policies—which are vital...

Nearly 100 Countries Poised to Adopt Multilateral Treaty

Ninety-eight countries are poised to formally adopt the OECD’s innovative multilateral tax treaty, which will place recommendations from the BEPS project into more than 3,000 bilateral accords, when the ad-hoc group meets later this month. The “Multilateral Convention to Implement Tax Treaty-Related Measures to Prevent Base Erosion and Profit Shifting”...

U.S. Multinational Companies Owe $700 Billion In Taxes On Offshore Profits, New Research Shows

American multinational corporations are apparently dodging nearly $700 billion in U.S. taxes they owe on profits stockpiled offshore, according to a new “corporate tax chartbook” from Americans for Tax Fairness (ATF) and the Economic Policy Institute (EPI). Last year, Fortune 500 companies had $2.4 trillion in untaxed offshore profits, on...

Multinationals Dodged Bullet on ‘Earnings Stripping’ Rules

Many kinds of U.S. multinational companies, including S-corporations, REITS, and financial services companies apparently dodged a bullet last month when the U.S. Treasury Dept. issued its final, substantially revised rules aimed at curtailing “earnings stripping.” The revised regulation represents an attempt by Treasury to help “narrow the rule and avoid...

Country-by-Country Confusion: Narrow BEPS Queries Abound

Global governments battling tax avoidance increasingly are pushing multinational corporations for a bigger picture of how and where they pay taxes, leading to increasingly narrow questions from company tax officers. “We have a number of entities that are disregarded for U.S. tax purposes. When I fill out the country-by-country form,...

Official hails program to track secret Swiss bank funds

A Justice Department official on Friday hailed a U.S. government program that’s helping tax authorities finally track criminal activity around the world. At issue is the Swiss Bank program, which has helped authorities follow funds moved from Swiss accounts to around the world. “A lot of the U.S. account holders...

Saudi joins talks on VAT, selective tax in GCC states

The Saudi Council of Ministers has authorized minister of finance or his deputy to discuss two draft uniform agreements on value added tax (VAT) and selective tax for Gulf Cooperation Council (GCC) states. The agreements shall be discussed within the framework of the GCC financial and economic committee, and sign...

US gives Trinidad new deadline for approving FATCA legislation

The United States is recommending that Trinidad and Tobago pass the Foreign Account Tax Compliance ACT (FATCA) by February next year, providing a five-month breathing space for the country. US Ambassador John Estrada in a brief statement issued from Washington said he wanted to provide an update on FATCA after...

Bahamas files: New leak exposes offshore ‘tax haven’ dealings of politicians, companies

Five months after the Panama Papers exposed the offshore dealings of government leaders and influential people, a new leak of 1.3 million files has revealed the names of individuals associated with companies registered in the Bahamas, a notorious tax haven. The files – received by the German newspaper Süddeutsche Zeitung...

Private sector groups urge passage of FATCA legislation

Seven private sector organisations Tuesday called on the Trinidad and Tobago government and opposition to put aside their differences and ensure the country meets the September 30 deadline for the Foreign Account Tax Compliance Act (FATCA). They also warned that failure to do so could result in ”serious negative consequences”...

Government, Opposition to meet on FACTA legislation

PORT OF SPAIN, Trinidad, Sept 10, CMC – Government and opposition legislators are to meet here on Monday as the deadline for meeting the September 30 deadline for passing the Foreign Account Tax Compliance ACT (FATCA). Caribbean financial executives have in the past bemoaned what they deem as an uneven...

Luxembourg may be focus of another Brussels tax inquiry

After state aid inquiries into Amazon and McDonald’s, EU looks again at Luxembourg The European Commission may open a fresh investigation into tax rulings offered by Luxembourg as early as this week, as EU competition commissioner Margrethe Vestager continues her clampdown against corporate tax avoidance. Luxembourg is already awaiting a...

Dublin and Washington enter talks to update Double Taxation treaty

Talks have begun between the US and Irish governments about updating certain elements of the Double Tax treaty between the two countries. The existing treaty was signed in 1997 and a Protocol to the treaty was signed in 1999. The Department of Finance and the Revenue Commissioners are calling for...

Why Indonesia’s domestic tax haven is a bad idea

In the latest move to revamp the tax system in Indonesia, the government is considering setting up tax haven areas to entice home money that was stashed abroad. The idea was initiated by former finance minister Bambang Brodjonegoro who believed that the distinct region could facilitate the investment of funds...

U.S. Treasury, IRS Move Quickly to Implement OECD BEPS Agreement, Finalizing Rule Requiring Country-by-Country Reporting by Multinationals

U.S. Companies Will Be Required to Disclose Relevant Financial Data on Country-by-Country Basis to Tax Authorities but not to Public WASHINGTON, DC – Today the U.S. Treasury and the Internal Revenue Service (IRS) published a rule, which will become final tomorrow, requiring the U.S. parent company of large, public and...

Assets agreement with US not quite ‘reciprocal’

Government most likely not to access bank data of Argentines in States despite deal As the whitewash bill is set to be approved this week, the government seeks to sign an assets deal with the United States to have access to data of the bank accounts of Argentines in the...

Washington ALJ Upholds Business and Occupation Tax Assessment on German Company’s Royalty Income

On May 31, 2016, the Washington Department of Revenue (DOR) Appeals Division released a Determination (No. 15-0251, 35 WTD 230) denying a German pharmaceutical company’s business and occupation tax (B&O) protest. The administrative law judge (ALJ) ruled that while the nondiscrimination provisions contained in Article 24 of the US-Germany Income...

BEPS Takes Center Stage At US OECD Tax Conference

Hundreds of policymakers, business executives, and senior tax officials met at the OECD International Tax Conference to discuss the recommendations proposed under the base erosion and profit shifting (BEPS) project and their impact on trade and investment. The conference, which was held in Washington DC on June 6-7, 2016, was...

Panama Papers Point to Tax Evasion

It was quite a revelation when leaked documents, made public in April, showed that Mossack Fonseca, a Panamanian law firm, had helped 14,000 clients worldwide create offshore accounts to conceal assets or dodge taxes. On Monday, a report by The Times found that there were at least 2,400 clients based...

IMF to Help Ukraine Improve Enforcement of Anti-Money Laundering Laws

According to reports, the International Monetary Fund is aiding the Ukrainian government in its efforts to fix the country’s weak anti-money-laundering regulations. WASHINGTON (Sputnik) – The International Monetary Fund (IMF) is aiding the Ukrainian government in its efforts to fix the country’s weak anti-money-laundering regulations, the IMF said in a...

U.S. companies are saving $100 billion a year by shifting profits overseas, report says

NEW YORK — U.S. multinational companies are saving $100 billion a year by shifting their profits overseas to lower their tax bills, according to a study released Tuesday that found that corporate tax-dodging is a bigger problem than previously estimated. Most U.S. companies pay far less than the country’s 35...

US should be added to tax haven blacklist, says EU report

Tensions between the EU and the US over tax follow investigations into Apple in Ireland The US should be added to a new European blacklist of tax havens being drawn up by the European Commission, according to a report commissioned by the Green group in the European Parliament. The report,...

U.S. Treasury readies new tax rules as G20 vows to fight evasion

The U.S. Treasury Department is finalising new tax rules aimed at combating the use of shell companies to evade taxes, U.S. Treasury Secretary Jack Lew said on Saturday amid increased pledges by global finance leaders to cooperate on tax issues. In a statement to the International Monetary Fund’s steering committee,...

EU threatens sanctions on money laundering, tax evasion havens

BERLIN – A European Union official threatened Thursday to sanction Panama and other nations if they don’t cooperate fully to fight money laundering and tax evasion, after a leak of data showed the small country remains a key destination for people wanting to hide money. The 11.5 million documents from...

IMF cautions on wider impacts of loss of correspondent banking in Belize and the Caribbean

The International Monetary Fund (IMF) issued its most recent report on Belize on Monday, following its September 2014 mission to the country, led by Jacques Bouhga-Hagbe. Much of the economic data included in the report has been the subject of recent discussions in Parliament in the context of the 2016-2017...

Minn. Senator Proposes Taxing Corporations Based in Havens

March 31 — Minnesota Sen. John Marty (DFL) introduced legislation that would require corporations headquartered in 46 tax havens to be subject to the same taxation as domestic companies. While it’s still early in the legislative session—the bill was introduced March 29—a spokeswoman for the Minnesota Chamber of Commerce told...

Chinese Official: Turn South China Sea Island into Cayman Islands-Style Bank

China’s chess game to seize control of the South China Sea may take an interesting turn if an influential businessman’s suggestion is followed and Beijing turns one of the disputed islands into its very own Cayman Islands-style offshore bank. The idea, as explained by The Washington Post, is to establish...

Tax tensions between the US and Europe hit new high

In the final session of the two day Global Tax Conference at Dublin Castle yesterday, a senior Canadian tax advisor used the analogy of children playing football to describe the relationship between multinationals and government when it comes to tax. In a kids football match, he said, when the ball...

Would the real tax havens please stand

“It is tantamount to an economic blockade”. That’s how Antigua and Barbuda’s Prime Minister, Gaston Browne, described the current withdrawal from Caribbean indigenous and offshore banks of correspondent relationships by US banks. His sentiments were echoed by Dean Barrow and Freundel Stuart, the prime ministers of Belize and Barbados respectively....

Trump, Sanders Agree on Ending Deferral of Overseas Earnings

During a political season in which populist fury and anger at big business is running high, two presidential candidates want to eliminate the ability of multinational firms to keep earnings overseas and avoid U.S. taxes. They also just happen to be the two most surprising and disruptive candidates in the...

Zimbabwe’s Central Bank Blames Offshore Accounts for Economic Decline

WASHINGTON — Zimbabwe’s central bank governor, John Mangudya, on Thursday blamed the sustained decline of the country’s economy on illicit cash flows, saying more than a billion dollars was externalized last year. Presenting his 2016 Monetary Policy, Mangudya said some $684 million was exported to foreign accounts by individuals while...