Category: Offshore Companies

Airbnb argues boost to economy makes up for tax evasion

Online accommodation platform, Airbnb, appeared before the Senate Inqury into the tax avoidance of multinational companies on Wednesday, with the ANZ manager arguing the startup brings a significant amount of money into the economy. Airbnb has found itself in the spotlight on Wednesday, when a Senate inquiry into the tax… – Continue reading

Yle programme: Finnish corporations cold-shoulder EU anti-tax planning efforts

Finnish companies continue to take advantage of legal tax planning to shelter their profits from taxation. According to Yle’s Ajankohtainen kakkonen current affairs programme, state-owned firms are among those that have been dragging their feet on reporting income from their foreign subsidiaries. The European Union is making an effort to… – Continue reading

Uber claims it is not avoiding tax as it is not profitable

Uber ANZ director of public policy appeared before the Senate inquiry into the tax avoidance of multinational companies on Wednesday, focusing on tax requirements of an individual driver, rather than the company. A Senate inquiry into the tax avoidance of multinational companies continued in Sydney on Wednesday, when Uber appeared… – Continue reading

The Intractable Problem of Tax Havens

Perhaps in theory there are ways to fix tax avoidance, but they aren’t politically feasible. Libertarian anarchists used to say “taxation is theft.” New research by economist Gabriel Zucman suggests that there is some truth to this—when tax havens are taken into consideration. In his new book The Hidden Wealth… – Continue reading

Welsh town to copy Isle of Man model in TV tax haven documentary

The Isle of Man’s role as an offshore finance centre will come under the spotlight on television following a Welsh town’s experiment in how to avoid paying UK tax. Independent traders in Crickhowell, led by the salmon smokery, the local coffee shop, the adventure clothes shop, the optician, the book… – Continue reading

South Korea Joins 94 Countries Enacting ‘Google Tax’

Google is said to have evaded paying an estimated $1.3 billion earned from selling apps in Korea based on the argument that their server is based in Ireland. The so called ‘Google Tax’, also known as the Base Erosion & Profit Shifting (BEPS) regulation, has been adopted this week by… – Continue reading

Corporates dodge taxing questions

UPDATE 12.45pm: Bermuda has a company tax rate of zero. In Ireland its 12.5 per cent and, with the Netherlands, has given the world the term “Double Irish Dutch Sandwich”. But a trio of prominent Australian business leaders have denied the tax links of their companies to the three offshore… – Continue reading

PwC calls for tweaks to S’pore tax system

Policies on perks, more bilateral pacts can help generate funds for growth: Accounting firm Singapore’s tax system can be improved to ensure the country can generate the funds needed for long-term growth and development, according to a white paper from accounting giant PwC yesterday. It called for policies that ensure… – Continue reading

Tax Commissioner Chris Jordan says tougher laws forcing multinationals to play ball

Tax Commissioner Chris Jordan says multinationals are already approaching the Australian Taxation Office to negotiate before the Turnbull government’s tougher anti-avoidance laws take effect in January, and he expects the office to reap $1.1 billion from them. We at the ATO acknowledge Australia needs investment by foreign companies in infrastructure… – Continue reading

People are leaving fake price tags in IKEA to call out tax avoidance

Some people think popular furniture store IKEA is being naughty, and not paying its proper share of tax in Australia. The franchise is a behemoth, both literally in terms of store size and figuratively in that it collected a US$5 billion profit for the 2014 financial year. A community action… – Continue reading

Belgian fight against tax evasion

As a reminder, the international automatic exchange of financial account information is considered by most countries as particularly efficient in the fight against tax evasion and international tax fraud and is becoming the new global standard (considering the US FATCA legislation, the OECD Common Reporting Standard). The Belgian Council of… – Continue reading

MEPs accuse US multinationals of diverting profits to low tax havens

Amazon, Facebook and Google in line of fire after committee backs proposals to force multinational corporations to pay tax where they make their sales MEPs have launched a scathing attack on Facebook, Google and Amazon in the European parliament, accusing them of diverting profits worth billions of pounds to low… – Continue reading

Nigeria: Reputational Risk Facing Multinational Enterprises Emanating From Transfer Pricing Practices

A number of multinational companies have been in the news recently for alleged tax malpractices. Various countries which are facing budget deficits are convinced that additional tax revenues can be collected, especially from multinational companies. What is it all about? A business typically faces many risks. A risk is the… – Continue reading

ANDREW PIERCE: A very taxing revelation for saintly Clegg

As Deputy Prime Minister, the holier-than-thou Nick Clegg made huge play of how his Lib Dems forced their Tory Coalition partners to crack down on tax avoidance. Offshore tax havens, in particular, were his target, when he said: ‘There are millions of people who pay their taxes . . …. – Continue reading

After Outcry, Ireland Adjusts Its Corporate Tax Draw

CORK, Ireland — As lord mayor of this quiet seaside city in southern Ireland, Chris O’Leary seems to have a situation most other local politicians can only dream about. Blue-chip international companies like Apple, Dell and IBM have all set up shop in and around this city, filling newly built… – Continue reading

Details emerge of massive French tax evasion scam using Latvian bank

French publication Challenges on Friday published details of a massive tax evasion scam by the company France Offshore that promised to reduce tax bills for French nationals using a network of offshore companies and Latvia’s Rietumu Bank. According to Challenges, the massive fraud was masterminded by France Offshore’s Nadav Bensoussan… – Continue reading

Britain’s £34bn uncollected ‘tax gap’ is no worse than other countries’, says HMRC tax head

Edward Troup says the tax authority is doing its job well The amount of tax going uncollected in the Britain is no worse than in other countries around the world, a senior official at the tax authority has said. Edward Troup, HMRC’s tax assurance commissioner, told the House of Commons… – Continue reading

Barbados, An “Ethical” Tax Haven?

The Caribbean island says its financial system is all aboveboard, yet it remains a gateway to less scrupulous offshore havens like the Cayman Islands. BRIDGETOWN — Is there “dirty” money strewn across the pristine sands of Barbados? Does something sinister hide beneath the glistening coral reefs of this former pirate… – Continue reading

Fair’s Fair: Balancing The Interests of the State and of Wealthy Migrants

Clare Maurice, Arabella Murphy and Sophie Mazzier, Maurice Turnor Gardner LLP For better or worse, the concept of “fairness” is here to stay in relation to taxation, whether domestic or international. Politicians of all persuasions like to insist that their respective policies will ensure that everyone pays his or her… – Continue reading

EY: Broadening the taxable basis across the GCC and MENA

To increase the scope of income tax laws, GCC countries are pursuing tax determinations with significantly broader interpretations of activities or actions that constitute doing business in-country. New concepts like Virtual Service Permanent Establishment and dependent agents are being used in Saudi Arabia and Kuwait to determine taxable presence or… – Continue reading

3 Stocks to Buy if Chris Christie Becomes President

A Chris Christie administration would likely make shareholders at some major U.S. companies very happy. The two-term New Jersey Governor has called for an array of pro-growth, business-friendly reforms as he bids for the Republican nomination. Christie is in favor of lowering corporate taxes so companies earn more profits, raising… – Continue reading

The Ministry of Finance proposed to soften the terms of the Amnesty

Moscow. November 10. The Finance Ministry has prepared proposals aimed to strengthen Amnesty of capital, which is now actually fails, reports the newspaper “Kommersant”. The law on the voluntary Declaration by individuals of assets and accounts, is known as the law on the legalization or Amnesty of capital, earned from… – Continue reading

Why Australia’s landmark tax ruling against Chevron is a first battle in a global war on profit shifting

At a very high level, it’s a simple concept: a multinational borrows money from a related company overseas, and then uses the interest bill and the repayment methods to reduce tax exposure in Australia. If the loans – and the interest rates – are big enough, the tax savings can… – Continue reading

Democrat targets corporate tax-avoidance deals in U.S. Congress

Tax-driven “inversion” deals that let companies flee the U.S. tax system by relocating abroad, if only on paper, would be curbed under legislation introduced in Congress, as Pfizer Inc (PFE.N) pursues such a deal with rival Allergan Plc (AGN.N). Wisconsin Democratic Representative Mark Pocan’s bills likely have little chance of… – Continue reading

How to Curtail Offshore Tax Avoidance

In a time of fiscal austerity, it is breathtaking to learn that Congress has allowed Fortune 500 companies to avoid an estimated $620 billion in federal taxes on earnings they are holding offshore. While the inaction by lawmakers on this issue may create the impression that there is nothing to… – Continue reading

Europe May Not Be a Tax Haven for U.S. Multinationals Much Longer

FRANKFURT (The Street) — Europe’s allure as a tax haven for U.S. multinationals may be coming to an end. That’s because European Union regulators are closing up tax loopholes that U.S. companies have been enjoying for years. The first two to feel the heat are Starbucks (SBUX – Get Report)… – Continue reading

Clubs Australia and AGA Partner Against Illegal Gambling

Clubs Australia and the American Gaming Association (AGA) to Join Forces to Table Illegal Online Gambling Trade Association Clubs Australia made recent headlines releasing a statement that confirms its partnership with the American Gaming Association to tackle an ongoing problem that has created an analogous situation with the ‘Wild West’…. – Continue reading

Tax-avoidance Gibraltar firm behind anti-EU campaign group

Leave.EU, supported by Ukip and financed by a multimillionaire, vies to lead Britain’s exit from Europe A leading campaign group seeking to take Britain out of the European Union was set up by an offshore company that offers tax avoidance services to “high net worth individuals”, the Observer can reveal…. – Continue reading

Tax system slow to adapt to digital economy’s rise

LOST REVENUE:A lack of regulations on taxing cross-border Web-based content and services providers puts their local peers at a disadvantage, Ernst & Young said The nation’s tax system is relatively behind developed markets in adapting to the proliferation of the digital economy, which has resulted in lost revenues for the… – Continue reading

Commentary: In face of ‘tax haven’ attack, CARICOM must unite

No member state of the Caribbean Community (CARICOM) ranks among the top 20 jurisdictions worldwide for financial secrecy. The United States of America (at number 3), Germany (8), Japan (12) and Britain (15), all rate as bigger tax havens than any CARICOM jurisdiction, according to the Tax Justice Network (TJN),… – Continue reading

Microsoft, IRS spar over long-running probe of its taxes

The Redmond tech company and the Internal Revenue Service tangled in court Friday over the government’s audit of Microsoft’s software sales through offshore subsidiaries. Microsoft and the Internal Revenue Service sparred in court Friday over the agency’s power to investigate taxpayers. Microsoft, seeking a court order to overturn a portion… – Continue reading

In face of ‘tax haven’ attack, CARICOM must unite | Sir Ronald Sanders

ST. JOHN’S, Antigua, Friday November 6, 2015 – No member state of the Caribbean Community (CARICOM) ranks among the top 20 jurisdictions worldwide for financial secrecy. The United States of America (at number 3), Germany (8), Japan (12) and Britain (15), all rate as bigger tax havens than any CARICOM… – Continue reading

Bleak growth exposes malaise of revenue shortfalls

First it was the scourge of public sector corruption, until now the mortifying spectacle of South Africa’s post-apartheid transition. Now, with the ground shifting beneath the world’s sclerotic economy – and the past few years have produced more tremors than ever in the 21 years of democracy – it’s a… – Continue reading

Apple’s US returns indicate substantial rise in Irish tax paid

Technology company made the largest profit in its history in year to end of September Apple’s latest annual report indicates a substantial increase in the amount of tax it may be paying in Ireland. The latest annual report from Apple, filed last week in the United States, indicates a substantial… – Continue reading

UK takes two-faced approach to tax, new report suggests

The UK government has a ‘Janus-faced’ approach to tax, a new report suggests: promising an increasingly intolerant approach to evasion and avoidance while being an aggressive participant in global tax competition and tolerating the UK tax havens which facilitate financial crime across the world. The report, Fifty Shades of Tax… – Continue reading

Hong Kong second worst in financial transparency, says survey

Hong Kong is the world’s second least transparent financial center, making it vulnerable to tax evasion, money laundering and other wrongdoing. It is topped only by Switzerland in a global survey by Tax Justice Network, a coalition of researchers and activists focused on tax avoidance issues. The United States ranks… – Continue reading

US overtakes Caymans and Singapore as haven for assets of super-rich

The US has overtaken Singapore, Luxembourg and the Cayman Islands as an attractive haven for super-rich individuals and businesses looking to shelter assets behind a veil of secrecy, according to a study by the Tax Justice Network (TJN), reports The Guardian. The US is ranked third, behind Switzerland and Hong… – Continue reading

US Justice Department Announces Banque Bonhôte & Cie SA Reaches Resolution Under Swiss Bank Program

The Department of Justice announced today that Banque Bonhôte & Cie SA (Banque Bonhôte) has reached a resolution 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 States…. – Continue reading

Liberia amongst top countries operating in financial secrecy

In a report leased by the international group Financial Secrecy, the group that carries out analysis of how far the legal systems of countries facilitate financial secrecy, Liberia is ranked amongst the top 30 countries in the world that deals in secrecy. While the Government of Liberia continues to boast… – Continue reading

New Zealand more of a tax haven than Island neighbours

New Zealand still has some work to do to stop the country being used as a safe haven for illicit funds, a new survey shows. The 2015 Financial Secrecy Index has been released, which ranks countries on their ability to promote fiscal transparency. The index is produced by the Tax… – Continue reading

Australia a safe haven for illicit funds, US overtakes Cayman as tax shelter for rich

Australia hosts significant quantities of illicit funds from outside the country, according to the 2015 Financial Secrecy Index. The Tax Justice Network’s index, released every two years, rates countries based on financial transparency. The latest index rates Australia 44 out of 100 (from 47 in the previous survey) meaning it… – Continue reading

Reports finds U.S. financial secrecy worsening

WASHINGTON—The United States is one of the world’s most secret financial jurisdictions, according to a watchdog group’s new global ranking. The Tax Justice Network, an international think tank based in the United Kingdom, on Monday unveiled the 2015 Tax Secrecy Index, which lists the countries that most allow financial secrecy… – Continue reading

Tax amnesty deadline approaches – use it or lose it

At the end of this year an amnesty for UK tax resident persons whose offshore income and gains have not been disclosed to HMRC closes, and it is important the implications are understood according to Michael Crowe, a director at Grant Thornton in the Isle of Man. In the UK’s… – Continue reading

Financial transparency poor in Switzerland, Hong Kong, U.S., study says

TORONTO, Nov 2 (Thomson Reuters Foundation) – Switzerland, Hong Kong and the United States have the world’s worst records on combating financial secrecy that allows the wealthy to dodge taxes or hide their money, according to a study released on Monday. Most countries’ secrecy score improved in recent years as… – Continue reading

D.C. Made A Change To Its Tax Law, And Caribbean Countries Aren’t Happy About It

Faced with outrage from over a dozen otherwise placid Caribbean nations, D.C. officials are backtracking on a plan to openly call out countries it says allow big U.S. businesses to skip out on paying local taxes. At issue is a change to existing tax law made through the 2016 D.C…. – Continue reading

IRS Offshore Programs Produce Billions – Come In And Participate Or Else …

BACKGROUND The IRS recently released IR-2015-116 announcing its offshore compliance programs have generated $8 Billion. More than 54,000 taxpayers subject to U.S. worldwide income and disclosure requirements have come in from the cold to participate in IRS offshore remediation disclosure programs since 2009. The IRS also urged taxpayers with non-compliant… – Continue reading

FPIs continue to be haunted by MAT ghost; have to show I-T they don’t have any ‘permanent establishment’ in India

MUMBAI: Foreign portfolio investors (FPIs) are yet to exorcise the ghost of minimum alternate tax, or MAT. These offshore asset managers, based out of financial centres like Singapore, Hong Kong and New York, will now have to convince the Indian tax office that they do not have “place of business”… – Continue reading