Category: Offshore

Ireland in trouble with EU over possible Apple Inc. (AAPL) tax haven

In an era when many companies seek international solutions that in simpler times might have been openly labeled “tax evasion,” governments around the world are seeking to ensure they are not cheated of legally due taxes by what is now euphemistically called “profit shifting.” Apple Inc. (AAPL) has been keeping… – Continue reading

India must go Hong Kong way to lure investors: Saurabh Mukherjea, CEO, Institutional Equities, Ambit Capital

Not only do Indians manage global investors’ money that is invested in India, Indian nationals often hold positions of responsibility in funds that have nothing to do with India. Now, given the rapid advances that have been made in technology, why aren’t these Indian nationals residing in India? Clearly, some… – Continue reading

Dutch public prosecutors investigate EU trust office tax evasion

The Dutch public prosecution department is investigating hundreds of transactions in which residents of other EU countries have used the Netherlands to avoid paying tax, the Financieele Dagblad says on Tuesday. The Financieele Dagblad bases its claims on confidential legal documents and an interview with a main suspect – a Dutch… – Continue reading

Russia ready to collect information on its depositors abroad

The Russian authorities are ready to provide the U.S. internal revenue service with information on American depositors, but have drafted a bill for similar measures in the United States. All foreign banks that work with Russian clients will be obligated to disclose information about such clients to Moscow. Primarily, the… – Continue reading

The global clamp down on tax evasion

The issue has dominated debate among world leaders and the Organisation for Economic Co-operation and Development (OECD) in recent months. In fact, it’s the OECD that’s been driving an effort to coordinate information exchange between jurisdictions under a single global standard in an effort to develop tax transparency. Moving on… – Continue reading

Tax all profit of firms incorporated here’

US multinationals incorporated in Ireland should have their entire global operations taxed here, a leading academic has claimed. Addressing the Oireachtas sub-committee on global taxation yesterday, Jim Stewart, associate professor in finance at Trinity College Dublin, said that existing tax residency rules, for multinational firms, are “extremely ambiguous” and suggested… – Continue reading

US Congress to deny federal contracts to Bermuda-based offshore companies — plan

Bermuda has again been singled out and labelled “a tax haven” by US legislators as they last week attached an amendment to US federal funding measures, seeking to block federal contracts to former American companies involved in corporate inversions. A leading publisher of financial information, Bankrate Inc, reported at Bankrate.com:… – Continue reading

Your Taxes: Going International

Going offshore means registering any intellectual property (IP) in an offshore company and delegating R&D and marketing to onshore companies. Money doesn’t grow on trees, and taking your business international is no picnic. On June 12, the International Business Structuring Association (IBSA) held a seminar to discuss ways of growing… – Continue reading

Luxembourg defends tax regime

(CS) The Luxembourg Finance Ministry on Thursday published a statement defending its tax regime, following the launch of an EU probe into deals with multinationals in several members states. The investigation aims to determine whether special tax deals could amount to illegal state aid. Affected companies include Apple, Starbucks, Google,… – Continue reading

Corporate Tax Dodging Another Capitalist Innovation

Competition takes many forms in capitalism. Financial engineering by corporations to avoid paying taxes is one aspect of this competition — under the rigors of market competition, evading responsibility is an innovation to be emulated. The magnitude of tax evasion on the part of multi-national corporations through one channel —… – Continue reading

Half trillion dollars cash offshore as 14 US tech & pharma groups cut foreign tax rate to 10%

The Financial Times says today that 14 US tech & pharma groups, including  Microsoft, Google and Johnson & Johnson, have cut their average tax rate by a quarter over the past eight years as they parked more cash offshore than all other US companies combined. Almost a half trillion dollars… – Continue reading

European Union is examining overseas tax breaks for Apple, Starbucks and Fiat

The European Commission raised pressure on Ireland, the Netherlands and Luxembourg over their corporate tax practices, saying it was investigating deals the countries have cut with Apple, Starbucks and Fiat. The Commission, the executive body of the European Union, is looking at whether the countries’ tax treatment of multinationals that… – Continue reading

The Top 5 Texas Companies Using Offshore Tax Havens–And Where They’re Hiding Their Money

Last week, the TexPIRG Education Fund and the watchdog group Citizens for Tax Justice released a new report examining in detail how Fortune 500 companies in the United States are using offshore havens to avoid paying the taxes they owe the federal government. According to the report, an astounding 72% of American Fortune… – Continue reading

Google Aust open to global tax laws

Google Australia and New Zealand managing director Maile Carnegie has urged governments across the world to address the inconsistencies of the global tax system rather than shaming individual companies for their profit-shifting activities, The Australian Financial Review reports. “I am actually incredibly empathetic to why people want to talk about this. I… – Continue reading

Apple’s principal Irish company became stateless for tax purposes from 2006

Apple Operations International, the principal Irish holding company for foreign subsidiaries, was not always stateless for tax purposes based on the last filed accounts in Ireland. It stopped paying tax in Ireland from 2006, based on US Senate Permanent Subcommittee on Investigations evidence. The most explosive revelation in the May… – Continue reading

Data ‘dance’ seen as challenge to world corporate tax crackdown

WASHINGTON (Reuters) – Cracking down on corporate tax avoidance sounds like a winner, and officials are working on it, but the practical challenges are formidable and they dominated discussion at an Organisation for Economic Co-operation and Development conference on Tuesday. The OECD, a Paris-based club of large economies, has an… – Continue reading

The Rise of Small Tax Havens

Despite international efforts to clamp down on offshore tax havens, small offshore havens for tax dodging and money laundering are becoming even busier. As the international community focuses on well-known havens like Switzerland and the British Virgin Islands, small remote outposts have become more popular, according to the International Consortium of Investigative… – Continue reading

Apple Among Firms In EU Tax Deal Probe

Tax deals involving Apple, Starbucks and  are facing an EU probe over allegations they amounted to state aid worth billions of pounds. The development follows a move by the EU’s competition authorities last year to gather information on corporate tax arrangements from several member states. The European Commission said it… – Continue reading

Cyprus: New Double Tax Treaty Between Cyprus And Spain Soon To Enter Into Force

With the impending FATCA compliance rollout and the U.S. Justice Department deal for Swiss banks, there are lots of letters and phone calls being made to account holders with American indicia. American citizens, residents—even people with a U.S. address or phone number—should be prepared. Possible American status means proving you’re… – Continue reading

Levin-backed legislation aims to curb pace of companies moving offshore for lower taxes

While Perrigo Co. plc has already cut its tax burden by moving offshore in the $8.6 billion blockbuster deal with Irish pharmaceutical maker Elan Corp. that it says will allow it to expand globally, other U.S. corporations could have a hard time pulling off similar deals. New federal legislation aims to change… – Continue reading