Category: Automatic Exchange of Information

Spain and Andorra to combat tax fraud

PM’s trip to principality comes after Catalan ex-leader’s revelations about hidden accounts Prime Minister Mariano Rajoy is expected to sign an agreement that will include a system for automatically sharing tax information between Andorra and Spain during an official two-day visit to the principality that begins on Wednesday. The agreement… – Continue reading

Study Shows 2014 Saw Fundamental Changes in Taxation Across the Globe

New research shows that 2014 saw many fundamental changes across the global tax system as governments look to reform their regimes for the long term, complying with new OECD guidelines, whilst significantly clamping down on multinationals in light of increasing public media scrutiny. The research was undertaken by Taxand, a… – Continue reading

Legal twist to info exchange

Barbados appears to be moving into full financial information-sharing mode as the world’s most powerful countries put their foot down on tax evasion. It is already known that last November Government signed an Inter Governmental Agreement with the United States (US) to exchange information on their citizens who have thousands… – Continue reading

The Death Of Hidden Offshore Accounts

The future for offshore tax planning, also known as “aggressive tax planning” is likely to be limited to if not curtailed by the global exchange of information agreement signed in October, 2014 by 51 countries and growing. The link below is to a video summary of the predicted consequences of… – Continue reading

LuxLeaks: An opportunity?

BRUSSELS – As political honeymoons go, it was short and ended abruptly. Just one week into his job as European Commission president, Jean-Claude Juncker was broadsided by a series of newspaper articles outlining the depth and breadth of corporate tax avoidance schemes in Luxembourg. Schemes thought up and enacted while… – Continue reading

Taxing times

Businesses in the island’s vital financial services are gearing up for ‘substantial changes’ dealing with tax. That was one of the important messages to come out of a seminar organised by KPMG in the island. More than 200 experts attended the event which covered a series of changes in property… – Continue reading

Canada transparency laws force ASX companies to disclose tax bills

Two Australian mining companies will be forced to disclose how much tax they pay in every country around the world by new transparency laws introduced in Canada. Paladin Energy and OceanaGold, both dual-listed in Australia and Canada, will have to comply with new Canadian laws requiring all oil, gas and… – Continue reading

The Vatican Bank, Christmas Cheer, And FATCA

For centuries the inner workings of the Vatican Bank have been cloaked in secrecy. That was before Pope Francis, who has pledged to restore public confidence in the administration of the Roman Catholic Church. This week we learned the United States and the Holy See have brokered a FATCA agreement… – Continue reading

Worldwide Exchange of Tax Information: OECD Expands upon FATCA to Add New Requirements

While the Foreign Account Tax Compliance Act (FATCA) has focused worldwide attention on U.S. efforts to create a mandatory cross-border exchange of tax information, the enactment of FATCA was not an isolated occurrence. For more than a decade, the Organisation for Economic Co-operation and Development (OECD) has been trying to… – Continue reading

Luxembourg Supports EU Tax Ruling Reforms

The Luxembourg Government is to provide the European Commission with a list of the tax rulings issued by its tax authorities, along with a list of the beneficiaries of its concessionary tax regime for intellectual property (IP) income. Luxembourg Prime Minister Xavier Bettel announced that the decision had been made… – Continue reading

The Year of Transparency’s Tipping Point

More countries are requiring an exchange of client information In 2014, we saw a marked increase in transparency regarding foreign assets. The United States took the lead, and other countries followed suit. It looks like we’ve reached the tipping point, that is, “the magic moment when an idea, trend, or… – Continue reading

Spain pushes for taxation debate at EU summit

BRUSSELS – It was supposed to be all about investments and Russia, but the issue of tax avoidance is likely to creep onto the EU summit agenda on Thursday (18 December). In the draft summit conclusions circulated among EU ambassadors on Wednesday, there is one paragraph mentioning the “urgent need… – Continue reading

EU Leaders to Urge Stepped-Up Fight Against Tax Evasion

EU leaders attending today’s summit in Brussels will call for a renewed push against tax evasion as cash-strapped nations seek more ways to refill depleted government coffers. “There is an urgent need to advance efforts in the fight against tax avoidance and aggressive tax planning, both at the global and… – Continue reading

Policy of inaction on multinational tax

Heading into the G20 in Brisbane last month, Treasurer Joe Hockey thundered that multinational companies who avoided paying tax were akin to “thieves” whose actions rendered it harder for governments to tackle poverty. Sadly however the government’s actions have failed to match its rhetoric. This week’s crafty back-down on Section… – Continue reading

EU agrees tougher money-laundering law

[BRUSSELS] Owners of secretive companies in Europe will have a harder time keeping out of the public eye, EU negotiators agreed Wednesday, in another blow against opaque business practices after the LuxLeaks scandal. The agreement reached by the European Commission, European parliament and member states approves the creation of a… – Continue reading

Singapore, Indonesia on track to curb cross-border tax evasion

An agreement to help crack down on cross-border tax evasion is being worked on by Singapore and Indonesia. The two nations are working on implementing the framework for the automatic exchange of information (AEOI) on tax matters, as they look to keep improving trade and investment ties. The move was… – Continue reading

Investigation into tax rulings to be extended to all EU member states, says Commission

An investigation into tax rulings provided by certain EU member states is to be widened to cover all member states, according to a press release from the European Commission.17 Dec 2014 Tax Disputes and Investigations EU & Competition Tax Public procurement and state aid Corporate tax International tax UK Europe… – Continue reading

Singapore, Indonesia to enhance cooperation on sharing tax information

Singapore’s Ministry of Finance say both parties enjoy “excellent cooperation” regarding tax matters, and have agreed to update the existing Avoidance of Double Taxation Agreement as the next step. SINGAPORE: The Republic and Indonesia will be looking to increase cooperation on the sharing of tax information in the coming days,… – Continue reading

Tax transparency applied to all is Odier message from Swiss banks

Defending the interests of the Swiss banking industry has not been the easiest challenge in recent years, particularly when it comes to tax. The role has fallen for the last five years to Patrick Odier, chairman of the Swiss Bankers’ Association (SBA), which has 317 institutional members and about 18,500… – Continue reading

Cyprus: Signature Of Cyprus – USA Inter-Governmental Agreement Under The American Foreign Account Tax Compliance Act

On 2 December 2014 the Cyprus finance minister and the American ambassador to Cyprus formally signed the intergovernmental agreement (“IGA”) between Cyprus and the USA under the Foreign Account Tax Compliance Act (“FATCA”), an American tax measure enacted in 2010 with the purpose of implementing mechanisms designed  to prevent and… – Continue reading

Multinational tax crackdown uncosted by Treasury

A new standard that would help stamp out tax evasion by forcing multinationals to give governments details about their tax affairs has been uncosted by Treasury, the latest budget update shows. Under a plan agreed to at the G20 finance ministers meeting in Cairns held earlier this year and then… – Continue reading

Corruption as political weapon without a solution

A collection of valid points of view 1.The Island Editorial says 2. Further Analysis by Nalliah Thayabharan 3  More observations by Christie 4. Some more observations by Nimal 5. A Possible Solution by NeelaMahaYoda The Island Editorial says; “Opposition presidential candidate Maithripala Sirisena claims that the government leaders’ corrupt deals… – Continue reading

BEPS Transfer Pricing Update

Background On 15 December, 2014, the OECD hosted a webcast to update the global tax community on progress under the Base Erosion and Profit Shifting (“BEPS”) Plan.  This year, the OECD produced 10 different reports (“BEPS Reports”) covering several actions specific to transfer pricing. This latest OECD webcast summarised efforts… – Continue reading

Indonesia, Singapore share tax-related information to counter tax evasion

JAKARTA, Dec 15 — Indonesia and Singapore have agreed to step up efforts to share tax-related information to tighten loopholes on tax evasion in each other’s countries, Indonesia’s finance ministry said. The commitment came after Indonesia’ Finance Minister met his counterpart Tharman Shanmugaratnam in Singapore today, the ministry said in… – Continue reading

Black money conundrum

The wise thing is to forget the past, bring reforms to prevent generation of black money Considering other man’s point of view is Decency — George Orwell This quality seems to be in short supply in India although it is the most needed even to understand any black money retrieval…. – Continue reading

Luxembourg tax files: Juncker admits position weakened by scandal

Jean-Claude Juncker breaks silence to say revelations are personally damaging as calls increase for harmonisation of EU tax rules European Commission president Jean-Claude Juncker has admitted that his position has been weakened by a scandal exposing Luxembourg’s role in corporate tax avoidance schemes. Juncker survived a no-confidence vote in the… – Continue reading

Lawmakers push to fast track legislative tax evasion proposals

In the light of new revelations in the Luxembourg tax evasion schemes, some MEPs will push to fast-track the European Parliament’s legislative reports being drafted by the legislature’s economic committee. “The new revelations show this is a European problem that needs a European solution. Citizens and SMEs pay their taxes,… – Continue reading

The Luxembourg ministry of Finance comments on the latest publications by the ICIJ

The ministry of Finance acknowledges the publication by the International Consortium of Investigative Journalists (ICIJ) and affiliated medias of a further series of advance tax decisions (“rulings”) issued by the Luxembourg tax administration. As with previous publications (“Luxleaks”), the way in which these documents were acquired is highly questionable. The… – Continue reading

Former Swiss Banker Collapses During WikiLeaks Data Trial

Rudolf Elmer, the former employee of Julius Baer Group Ltd. accused of revealing details of client accounts via WikiLeaks, collapsed at the start of his trial, forcing the court to postpone the case. It was not clear when the trial in Zurich District Court would continue. Proceedings had been under… – Continue reading

Harris: Ireland has ‘nothing to fear’ from EU tax proposals

Minister of state stresses taxation rates remains a matter for member states Ireland has “nothing to fear” from European proposals to tackle multinational tax avoidance, the Minister of State at the Department of Finance Simon Harris said on Tuesday as EU finance ministers rubber-stamped new rules on the automatic exchange… – Continue reading

EU finance ministers agree on measures against tax avoidance

RUSSELS, Dec. 9 (Xinhua) — European Union (EU) finance ministers Tuesday agreed on two taxation measures towards combating corporate tax avoidance and aggressive tax planning. According to a statement, finance ministers have given their political backing to the anti-abuse clause of the Parent Subsidiary Directive and to the mandatory exchange… – Continue reading

Impact of FATCA on Bermuda Entities

This publication provides a brief overview of the expected impact on entities established in Bermuda of (a) the foreign account tax compliance provisions (“FATCA”) of the Hiring Incentives to Restore Employment Act, 2010 of the United States of America (the “US”); and (b) equivalent rules implemented in relation to United… – Continue reading

Jersey: Chancellor Must Address Root Causes Of Tax Evasion

In advance of the UK Chancellor’s Autumn Statement, Geoff Cook, CEO of Jersey Finance said: “The Chancellor has shown a strong commitment to tackling tax evasion and I look forward to hearing more detail behind his future plans in this regard in the Autumn Statement. It is vital that the… – Continue reading

Preventing tax evasion and fraud: the scope for automatic exchange of information is extended

Padoan: “It marks the end of banking secrecy in the European Union” The Council adopted a directive that will help the member states to clamp down on tax evasion and fraud by extending the scope for the automatic exchange of information. The directive brings interest, dividends, gross proceeds from the… – Continue reading

EU Agrees Twin Tax-Avoidance Measures

BRUSSELS–European Union finance ministers struck two separate deals on Tuesday aimed at cracking down on tax avoidance by multinationals, an issue that is high on Europe’s political agenda as a lackluster economic recovery fails to replenish crisis-hit state coffers. At a meeting in Brussels, finance ministers agreed to update a… – Continue reading

European Commission – Statement Commissioner Moscovici welcomes Council agreement on measures against tax avoidance and unfair tax competition

The European Commission welcomes two breakthrough agreements reached by the Council today towards combating corporate tax avoidance and aggressive tax planning. The Council has given its political backing to the anti-abuse clause of the Parent Subsidiary Directive and to the mandatory exchange of information between EU tax authorities. “I applaud… – Continue reading

Jersey: Chancellor Must Address Root Causes Of Tax Evasion

In advance of the UK Chancellor’s Autumn Statement, Geoff Cook, CEO of Jersey Finance said: “The Chancellor has shown a strong commitment to tackling tax evasion and I look forward to hearing more detail behind his future plans in this regard in the Autumn Statement. It is vital that the… – Continue reading

Jersey: Jersey Finance Welcomes Tax Agreement With Romania

Jersey Finance has welcomed the signing of a Tax Information Exchange Agreement (TIEA) between Jersey and Romania this week. The agreement, which was signed by the Minister for External Relations, Senator Sir Philip Bailhache, and the Romanian Ambassador, His Excellency Ion Jinga, at the Romanian Embassy in London on Monday… – Continue reading

EU focus on tax avoidance may deflect direct heat from Ireland

Juncker has put corporate tax reform firmly back on the EU agenda The “Lux leaks” scandal may have cast a shadow over Jean-Claude Juncker’s first months as European Commission president, but its real significance will be how it impacts the EU’s position on corporate tax. Some contend the scale of… – Continue reading

Luxembourg says disclosing tax rulings to other states

(Reuters) – Luxembourg is giving details of its tax deals with foreign firms to governments that ask for them, its finance ministry said on Tuesday, addressing critics of its role in helping companies avoid taxes on a global scale. In a statement issued after a Belgian minister revealed he was… – Continue reading

Black money: Switzerland asks India for proof

As India continues its pursuit of black money allegedly stashed abroad, Switzer-land has said it would not entertain any ‘fishing expedition’ and authorities cannot ask for names of all Indian account holders in Swiss banks without doing their own independent investigations. Switzerland’s Ambassador to India Linus von Castelmur also said… – Continue reading

Cyprus: Recent Developments In Automatic Exchange Of Information

The exchange of information between tax authorities worldwide is about to enter into a new phase of an active gathering and reporting of data. The eradication of tax evasion has now been elevated to a matter of priority amongst OECD states. There has been an unprecedented push to expand the… – Continue reading

Banking secrecy to remain despite FATCA

BEIRUT: There is no threat to Lebanon’s banking secrecy, despite the mounting pressure from the international community to disclose the accounts of Lebanese with dual passports, bankers said. “The United States and some European countries, which are seeking the full cooperation of other states in disclosing the bank accounts of… – Continue reading

Jersey signs TIEA with Romania

Jersey Romania TIEAJersey and Romania signed a tax information exchange agreement (TIEA) at the Romanian Embassy in London on 1 December. The agreement was signed by the Minister for External Relations, Senator Sir Philip Bailhache, and the Romanian Ambassador, His Excellency Ion Jinga. Senator Bailhache said: “We attach great importance… – Continue reading

Norway’s Commission Recommends Corporate Tax Rate Cut

The Tax Commission, appointed by the Government in March last year to review corporate taxation in Norway in light of international developments, submitted its report on December 2, and proposed a cut in both corporate and individual income tax rates, alongside other adjustments to combat corporate base erosion and profit… – Continue reading

G20’s 2014 statements set clear tax agenda

Brisbane communiqué, after the G20 heads of government summit, and that from their finance ministers, after their earlier meeting in Cairns, along with recent developments in the Forum on Tax Administration mean for business. The Brisbane communiqué contained one paragraph on tax. It read: 13. We are taking actions to… – Continue reading