MUMBAI: In what could lead to an increase in domestic tax liabilities of many Indian conglomerates and multinationals, the government is set to introduce a framework for Base Erosion and Profit Shifting (BEPS), a global agreement to check tax avoidance by multinationals, in the upcoming Budget. Industry sources expect the… – Continue reading
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
Jan. 19 — Foreign financial institutions will have more time to certify whether their pre-existing accounts are owned by U.S. taxpayers under the Foreign Account Tax Compliance Act, the IRS said in Notice 2016-8. The Jan. 19 notice answers many significant questions raised by taxpayers on compliance with the law…. – Continue reading
European Union countries will have to introduce rules from 2017 to speed up tax refunds on cross-border investments, part of a drive to improve the working of financial markets and lift economic growth, according to an EU document seen by Reuters. The executive European Commission wants to simplify “withholding tax”… – Continue reading
COLUMBIA, S.C. – In an attempt to combat fraud, South Carolina taxpayers won’t be receiving their state income-tax refunds until March 1 or after. In a statement, the South Carolina Department of Revenue said that the delay will give the agency time to verify wage documents with the Internal Revenue… – Continue reading
The Financial Services Council (FSC) is calling for the company tax rate to be cut by eight percentage points to 22 per cent in order to boost growth, investment and employment. The FSC has released a tax reform package, which it said would turn around Australia’s sagging competitiveness and flat… – Continue reading
BANGKOK—Thai prosecutors charged the Thailand subsidiary of global tobacco giantPhilip Morris International Inc. with tax evasion for allegedly under-declaring the value of cigarettes imported from the Philippines. The Office of the Attorney General said in a statement Tuesday it has filed a complaint with a Thai court after a long-running… – Continue reading
Danish Tax Minister Karsten Lauritzen has created a new government-industry task force that will support the Government to broaden and improve Denmark’s network of double tax agreements. According to a Tax Ministry statement, the task force will enable the Government to listen to the opinions of businesses when deciding on… – Continue reading
Cayman Islands has introduced limited liability company (LLC) legislation that combines the key features of a company and a partnership, intended to increase the structuring options for US investment funds. US clients have reportedly been requesting this legislative development for some time to provide a better match with the Delaware… – Continue reading
Each year, states enact tax law changes and create local government programs that provide personal property tax breaks for businesses. These concessions come in various forms—deductions, incentives, credits and exemptions (i.e., D.I.C.E.), and they have a significant impact on whether businesses remain viable. Many states commonly impose ad valorem tax… – Continue reading
HMRC is set to repay tax to around 2,000 banking and IT contractors who used an offshore scheme because of a flawed process around issuing payment notices. The tax office issued so-called accelerated payment notices to individuals who used Isle of Man-based schemes to limit their income tax during the… – Continue reading
In an effort to facilitate non-resident enterprises in applying for tax benefits, China’s tax bureau recently released the SAT Announcement [2015] No.60, which replaced the previous “Administrative Measures on Tax Treatment under Double Taxation Agreement to Non-resident Enterprises (Guoshuifa [2009] No.124)” and simplified the application procedures for a non-resident enterprise… – Continue reading
The American dream can turn into a nightmare for expats wanting to switch their UK pensions to a Qualifying Recognised Overseas Pension Scheme (QROPS). Thousands of expats cross the Atlantic both ways with London home to Americans in sectors such as finance, entertainment and media, while Florida is a popular… – Continue reading
China’s central bank said on Monday it will start implementing a reserve requirement ratio (RRR) on offshore banks’ domestic deposits, in what appears to be its latest attempt to stem speculation in the yuan and manage money flowing in and out of the country. Confusion over China’s foreign exchange policy… – Continue reading
According to the World Bank’s ‘Doing Business 2016 Report’, Hong Kong continues to be one of the world’s easiest places to do business, and tops the ranks in Asia Pacific for starting one. To sustain its economic growth and competitiveness, the Hong Kong government underwent three key changes in 2015:… – Continue reading
LONDON: India and the UK today agreed to strengthen their economic cooperation in infrastructure and financial services as they vowed to address cross-border tax evasion and avoidance. Finance Minister Arun Jaitley, who held talks with his UK counterpart George Osborne as part of the 8th India-UK Economic and Financial Dialogue… – Continue reading
Banking and IT contractors forced to stump up tens of thousands of pounds to settle contested tax debts last year are now in line to be repaid, after the UK tax authority accepted it should not have issued payment demands. HM Revenue & Customs has withdrawn so-called accelerated payment notices… – Continue reading
What is the fate of taxpayers on double taxation provisions? The National Tax Policy (NTP) acknowledges this challenge when it states, “elimination of multiple taxation must be of major concern to government at all levels. This is because increased demand to grow internally generated revenue has led to the exercise… – Continue reading
The proceeds from illegal tax breaks brokered between an EU state and a multinational company, known as clawbacks, should be returned either to the EU budget or to the coffer of other states unfairly deprived of the money, according to MEPs. The idea was endorsed by the European parliament in… – Continue reading
As part of the ongoing visit by President Muhammadu Buhari to the United Arab Emirates (UAE), both countries today signed six agreements on Trade, Finance and Judicial Matters; Avoidance of Double Taxation; Trade Promotion and Protection; Judicial Agreements on Extradition, Transfer of Sentenced Persons; Mutual Legal Assistance on Criminal Matters;… – Continue reading
COUNCIL chiefs have vowed to tackle tax evasion in Worcestershire – insisting they will not contemplate deals with those who fail to pay up. After widespread criticism it was not doing enough, the Government has taken steps to clean up its own policies so it avoids ‘buying’ any services or… – Continue reading
Residents of Brazil with undeclared offshore assets can now voluntarily declare and regularise their tax affairs without facing criminal prosecution and only face a one-off charge and penalty. All individuals and legal entities who were resident or domiciled in Brazil on 31 December 2014, can voluntarily declare previously undisclosed goods… – Continue reading
Banking and IT contractors forced to stump up tens of thousands of pounds to settle contested tax debts last year are now in line to be repaid, after the UK tax authority accepted it should not have issued payment demands. HM Revenue & Customs has withdrawn so-called accelerated payment notices… – Continue reading
Three leading cellular operators have made a joint representation to the Federal Board of Revenue (FBR) that the scheme of taxation contemplated by the Ninth Schedule of the Sales Tax Act 1990 in relation to both items – SIM cards and handsets – is legally impermissible and unconstitutional and practically… – Continue reading
Wherever you and your clients stand on the ethics of tax avoidance – and on offers of 70% commission – moral considerations are now being superseded by more practical concerns of the personal damage attempting to avoid tax can cause, writes Laura Miller… There are many reasons to avoid tax… – Continue reading
On 1st January 2016, an amendment to the Mutual Legal Assistance (Tax Matters) Act, 2003 came into force which implements the Organisation for Economic Co-Operating and Development (OECD) Common Reporting Standard for the exchange of tax information (CRS) in the British Virgin Islands (BVI). Globally this means that participating jurisdictions… – Continue reading
The US’s Financial Crimes Enforcement Network has announced it will be investigating the individuals behind secretive all-cash purchases of high-end luxury real estate in a six-month trial programme intended to enhance the treasury’s anti-money laundering efforts. The initiative will focus on all-cash property purchases of over $3 million in New… – Continue reading
Russia and the Hong Kong Special Administrative Region of the People’s Republic of China signed an agreement on avoidance of double taxation and prevention of fiscal evasion regarding profits taxes on Monday. The document was signed by Russia’s State Secretary, Deputy Finance Minister Yuriy Zubarev and the Secretary for Financial… – Continue reading
There will be no end to the inequality crisis until world leaders end the era of tax havens, once and for all, according to a report from charity Oxfam. In its report, “An Economy for the 1%”, published ahead of the World Economic Forum in Davos, Oxfam has challenged world… – Continue reading
The U.S. Treasury Department has launched a new initiative aimed at identifying anonymous cash buyers of luxury properties. Currently, purchasers can hide their identities by acquiring real estate through limited liability companies or other shell vehicles that prevent their names from being linked to any specific address. The new rule… – Continue reading
The change in definition of an Indian resident company under the Income-Tax Act—from one whose affairs are wholly controlled and managed in India to one whose Place of Effective Management (PoEM) is in India—and the subsequent draft guidelines are giving anxious moments to votaries of simplifying the investment climate in… – Continue reading
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
Court of Appeal decision on tax residence provides more certainty In a case potentially impacting all New Zealanders who move overseas, the Court of Appeal has decided in favour of the taxpayer, finding that property which a person has never lived in nor intends to live in cannot be their… – Continue reading
China’s central bank said on Monday it will start implementing a reserve requirement ratio (RRR) on offshore banks’ domestic deposits, in what appears to be its latest attempt to stem speculation in the yuan and manage money flowing in and out of the country. Confusion over China’s foreign exchange policy… – Continue reading
The Cellular Operators’ Association of India (COAI) has submitted a budget recommendations to the government which include suggestions on central value added tax (CENVAT) Credit, deductibility of spectrum fees paid and tax withholding on distributors margin on sale of SIM cards and prepaid vouchers among many others. The recommendations said… – Continue reading
The BVI Business Companies Act of 2004 has been amended by the BVI Business Companies (Amendment) Act of 2015. This amendment has come into effect on the 15th January 2016. The key amendments mainly relate to the following highlighted areas: Register of Directors (ROD): In the case of a new… – Continue reading
Barclays (BARC.L) has sold its offshore trust business to an independent investor group but will keep a 20 percent stake in the new company, renamed as ZEDRA, for at least three years. The sale marks another step in the British bank’s efforts to simplify its wealth and investment management activities…. – Continue reading
Main principles of Indirect Taxation In our fifth article in a series of articles on the tax challenges of the digital economy, we shall be providing you hereunder with a brief overview of the principles of indirect taxation, with a focus primarily on the VAT and the destination principle applicable… – Continue reading
The European Parliament has voted in favour of a “Fair Tax Payer” label across the EU to tackle tax avoidance. The proposal was passed on 16 December by 500 votes to 122, and drew cross-party support from members of the green, socialist, liberal, labour and conservative blocks. The plan came… – Continue reading
A double taxation avoidance agreement between Taiwan and Canada was concluded Jan. 15 in Taipei City, paving the way for expanded exchanges in clean energy, health care, sustainable development, services and technology. Set to take effect Jan. 1, 2017, the pact prevents the levying of tax by both sides on… – Continue reading
Plans to restrict the generous tax treatment of interest costs — a key aspect of Britain’s business-friendly taxation regime — are unnecessary and potentially damaging, companies have told the Treasury. Professional bodies and business groups are voicing fears about the restrictions that are set to be introduced as part of… – Continue reading
The Financial Services Council has proposed a new tax package calling for company tax to be cut to 22% from its current 30%. The industry body also wants to see “lower, flatter, indexed” income tax rates. The FSC said its tax reform package is designed to “grow the economy and… – Continue reading
NEW DELHI: Indian businesses are anticipating a “more aggressive” stance by tax authorities as their tax arrangements come under greater scrutiny, says a survey. The findings are part of leading consultancy Deloitte India’s BEPS (Base Erosion and Profit Shifting) survey titled ‘Anticipating BEPS India impact’. Indian businesses are anticipating a… – Continue reading
Nearly a third of the 26 large foreign banks operating in Australia, including Goldman Sachs, JPMorgan, Lloyds and BNP Paribas, had no taxable income in 2014, data released by the Australian Taxation Office shows. Eight banks with total revenue of $9 billion had no taxable income, while Credit Suisse, which… – Continue reading
The only thing worse than paying taxes is the idea that other people avoid paying their fair share of them. On the subject of tax avoidance by other people, I can think of at least three principal feelings. As the kids say, I feel all the feelings. Outright tax fraud… – Continue reading
The beneficiaries included Anheuser-Busch InBev NV, BP Plc, BASF SE, Proximus SA, Atlas Copco AB, Wabco Holdings, and Celio France SAS. proximus SE This estimate does not include any benefits associated with a successful appeal of the decision, nor does it reflect guidance we expect to receive from the Belgian… – Continue reading
LAHORE: Nearly 40% of Pakistan’s companies that provided IT services have moved their business to the United Arab Emirates, largely due to the 8% additional tax on revenues levied by the government in 2015-16, said Sajjad Syed, chief executive officer of Excellence Delivered (ExD) Private Limited . ExD outsources non-core… – Continue reading
KARACHI: Recently, under the context of the Article IV consultation, the International Monetary Fund (IMF) released a report on Pakistan’s overall economy. The report started on a positive note highlighting the macroeconomic gains made over the past couple of years which included the increase in growth rate from 3.7% in… – Continue reading
PM Narendra Modi also announces a Rs.10,000 crore fund to provide support to innovation driven enterprises New Delhi:In an effort to give a fillip to the start-up ecosystem in the country, the government on Saturday announced its intention to exempt capital gains tax on investments in start-ups and a Rs.10,000… – Continue reading
Apple Inc. (NASDAQ:AAPL), the world’s company by market capitalization, may face more than $8 billion tax bill in connection with the investigation of the European Commission regarding its tax policies, according to Bloomberg. Matt Larson, a litigation analyst Bloomberg Intelligence analyzed the European Commission’s investigation against Apple, which was accused… – Continue reading
