Category: Automatic Exchange of Information

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

China ‘to step up supervision of multi-nationals to combat tax avoidance’

Chinese tax authorities have pledged to increase supervision of multi-national companies in a campaign to crack down on tax avoidance.04 Dec 2014 Tax China Asia Pacific Chinese tax authorities have pledged to increase supervision of multi-national companies in a campaign to crack down on tax avoidance. The deputy director of… – Continue reading

Malta should brace itself for tax haven clampdown – AD

Greens say Malta should start thinking of Plan B on its attractive tax regime for foreign companies as pressure from major EU states on European Commission grows Malta should be prepared to diversify its current fiscal policy and even wave goodbye to its incentives to attract foreign industry, Alternattiva Demokratika… – Continue reading

UK: Taxation Of Multinationals – UK Government Announcements Related To The G20/OECD Base Erosion and Profit Shifting Initiative

The Chancellor reaffirmed the Government’s continued support for the OECD’s work on base erosion and profit shifting (BEPS) and modernisation of the international framework for taxing multinational companies. Measures in relation to three specific areas are announced – a consultation on hybrid mismatches and the introduction of the OECD’s proposals… – Continue reading

How the HMRC helped tax avoiders stay ahead of the law – by shifting cash for Switzerland to Liechtenstein

It was billed as a multi-billion pound windfall for the long-suffering UK taxpayer, with HM Revenue & Customs getting its hands on a huge reservoir of untaxed “black money” stashed in Switzerland by wealthy subjects to keep it safe from the taxman. But the estimated take from what the former… – 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

Cayman Islands: Cayman Islands Financial Account Reporting For Investment Funds

The Cayman Islands currently has in place an intergovernmental agreement (IGA) with each of the United States and the United Kingdom and has passed domestic legislation to make compliance with the IGAs a matter of Cayman Islands law (Cayman FATCA). The Cayman Islands Tax Information Authority (TIA) issued Guidance Notes… – Continue reading

Paul Brannen: Why the poacher who turned gamekeeper could bag the tax dodgers

North East Labour MEP Paul Brannen on why European Commission president Jean-Claude Juncker can crack the tax dodge problem The expression ‘poacher turned game keeper’ sprang to mind this week in the European Parliament as in meeting after meeting Jean-Claude Juncker’s suitability for the top job in the European Union… – Continue reading

Barbados signs TIEA with Colombia

BARBADOS AND COLOMBIA have taken significant steps to improve the exchange of information on arrangements with the signing of a Tax Information Exchange Agreement (TIEA) recently. The Barbados-Colombia signing took place on November 25, in Washington D.C. Ambassador John Beale initialled the document on behalf of Barbados, while Colombia’s Ambassador… – Continue reading

G20 gives Africa the will to deal with tax evasion

To prevent cross-border tax evasion, we endorse the global Common Reporting Standard for the automatic exchange of tax information (AEOI) on a reciprocal basis. We will begin to exchange information automatically with each other and with other countries by 2017 or end-2018, subject to completing the necessary legislative procedures,’’ says… – Continue reading

Cases filed against 18 illegal accounts in Liechtenstein:

Finance Minister Arun Jaitley Thursday said that of the 28 accounts identified in the tax-haven of Liechtenstein, income tax proceedings have been concluded against 18 “illegal” account holders and cases filed against them. Of the 28 accounts in Liechtenstein on which Germany had information, 18 accounts were illegal (najaiz). We… – Continue reading

ATO issues warning on offshore income

The tax office said that Australia’s commitment to the automatic global exchange of information will mean accessing overseas banking information will become easier and hiding income and assets offshore will become harder. “Recent developments in exchange of information between countries and improved data matching capability mean there’s nowhere left to… – Continue reading

Barbados Promoted To OECD Global Forum Vice Chair

The Barbados International Business Association (BIBA) has welcomed Barbados’s appointment to Vice Chair of the Global Forum of the Organization for Economic Cooperation and Development (OECD), saying that the decision validates the jurisdiction’s good standing among international business and financial centers. Barbados is to take over from Bermuda, for two… – Continue reading

Latest G20 summit holds no surprises for Cayman

(CNS Business): Following the G20 summit in Brisbane last week questions remain over how much the latest talks on global tax transparency will impact Cayman and other offshore jurisdictions. Despite the bluster from international politicians in the build-up to the summit over clamping down on multinational corporate tax dodging, illicit… – Continue reading

UK: New Trust And Tax Reporting Obligations For UK Resident Non Doms – A Mini UK FATCA?

UK resident non-domiciliaries (RNDs), who have offshore bank accounts and interests in non-UK structures, are currently not required to provide any information about those accounts/structures to HMRC, provided that they claim the remittance basis of taxation in the UK, those accounts do not hold assets which produce UK source income… – Continue reading

OECD draft addresses tax treaty shopping

The OECD has invited comments on a discussion draft on proposed changes to the OECD model tax convention to prevent tax treaty abuse. The OECD’s recent report on action 6 of the base erosion and profit shifting (BEPS) action plan recognised that further work would be needed on the precise… – Continue reading

Tougher operating environment calls for a new business model

Rüschlikon is just a 20-minute boat ride from the centre of Zurich, yet a world away from the intense rivalry of the city’s financial powerhouses. Every autumn, the sleepy lakeside settlement hosts the Private Banking Summit, where delegates seek safeguards for their threatened industry. “Swiss private banking is in turmoil,… – Continue reading

Juncker holds ground on tax avoidance before EU confidence vote

Strasbourg, France (dpa) – European Commission President Jean-Claude Juncker urged lawmakers on Monday to trust his determination to tackle tax avoidance, ahead of a parliamentary confidence vote related to a tax scandal in his native Luxembourg. The controversy, known as LuxLeaks, grew out of allegations by a team of investigative… – Continue reading

UK: In Uncle Sam’s Footsteps

When FATCA was signed by Barack Obama in 2010, many commentators were quick to argue that such ‘breathtakingly extra-territorial’ provisions would never come to fruition. Fast-forward only a few years and those five letters, FATCA, have become etched in the minds of exasperated US taxpayers (many of whom are queuing… – Continue reading

Schaeuble raps German firms for avoiding taxes via Luxembourg -Focus

Nov 22 (Reuters) – German Finance Minister Wolfgang Schaeuble sharply criticised leading German companies for reducing taxes by creating subsidiaries in Luxembourg, where tax rates are lower, according to Focus news magazine. “The list of those that have institutions in Luxembourg with the aim of saving taxes is a Who’s… – Continue reading

Base Erosion and Profit Shifting: The Australian Perspective

Background In July 2013, the G20 Finance Ministers, including Australia, fully endorsed the base erosion and profit shifting (BEPS) Action Plan. As a result of the Action Plan, the Australian government encouraged a new commitment to focus resources on investigating international business structures to ensure companies pay tax in the… – Continue reading

Luxembourg PM slams EU single tax plans

Luxembourg Prime Minister Xavier Bettel said he was firmly opposed to harmonising tax policies in the EU, a report said Wednesday, hitting back after an investigation exposed his tiny country as a global tax haven. Jean-Claude Juncker, Bettel’s predecessor and new European Commission president, is under pressure after it was… – Continue reading

Luxembourg’s Bettel opposes fiscal standardisation

Luxembourg’s Prime Minister has spoken out against a harmonsiation of tax within the EU, arguing that it should be left to member states to decide. Xavier Bettel was quoted in an interview published by Belgian daily L’Echo on Wednesday, following the Lux Leaks scandal in which tax agreements between the… – Continue reading

Luxembourg PM rejects EU single tax plans

Luxembourg’s Prime Minister Xavier Bettel has criticized the European Union’s single tax plans, arguing that it should be left to member states to decide. “To say that everyone within the European Union must move toward a single tax policy with the same tax rate, that I’m against,” Belgian daily L’Echo… – Continue reading

Bell: Election’s started early in North Douglas!

Backbench MHK John Houghton’s antics in the House of Keys have been branded ‘outrageous’ by the Chief Minister. Mr Houghton was ordered to leave the Keys last week after refusing to apologise for questioning the honesty of the Treasury Minister. Chief Minister Allan Bell said: ‘It seems the election is… – Continue reading

G20 tax reform plan should prevent another Lux leaks

The G20 Communique is good news on the international tax reform front. As part of the G20 commitment to boost economic resilience the Communique commits G20 nations to taking action to ensure fairness in the international tax system. This means they are looking at ways to ensure profits are taxed… – Continue reading

G20 tax avoidance pledge ‘still leaves poor countries vulnerable’

Oxfam director Winnie Byanyima says what is on the table is not enough to stop poor countries being ‘bled dry’ Moves by G20 nations to tackle corporate tax avoidance are welcome but will only begin to uncover the full problem while leaving poor countries still vulnerable to exploitation, tax justice… – Continue reading

New Zealand To Get Tough With International Tax Evaders: To Work With OECD To Enforce Transparency And Compliance

New Zealand is planning to crackdown on tax evaders and combat the menace of avoidance by international firms. As part of the exercise, New Zealand will work with an international action plan being spearheaded by the OECD.  This was stated by Finance Minister Mr. Bill English. He told media persons… – Continue reading

G20 endorses OECD tax avoidance timetable

The latest G20 leaders’ summit in Australia, which ended yesterday, has endorsed the various strands of international tax work being undertaken by the European Commission and by OECD, including work on the Base Erosion Profit Shifting (BEPS) project Prime Minister David Cameron said there had been ‘important breakthroughs’ in making… – Continue reading

South Africa: President Zuma Wraps Up Brisbane Visit

Pretoria — President Jacob Zuma has concluded his visit to Brisbane, Australia, where he led the South African delegation to the G20 Leaders’ Summit, says the Presidency. The main outcome of the Leaders’ Summit was a commitment to lift the G20’s Gross Domestic Product (GDP) by at least an additional… – Continue reading

BEPS: G20 leaders mark ‘significant progress’

G20 leaders have made “real progress” towards ensuring that “big companies pay the tax they owe”, David Cameron said at the end of the G20 summit in Brisbane yesterday. “There are now over 92 different countries and tax authorities properly sharing information and, as the OECD set out at this… – Continue reading

Multinational tax details to be kept secret

The OECD’s head of tax has rejected calls to publicly release country-by-country breakdowns of taxes paid by multinationals, despite growing pressure from community and transparency groups. Agencies such as Transparency International and a host of community groups are putting pressure on the OECD and G20 leaders at the summit in… – Continue reading

LuxLeaks Has Revealed Another Clash between National vs EU

The LuxLeaks scandal is a classical example of the growingly frequent clash between the level of integration of the European economy (and the global for that matter) and the national sovereignty. Greece was first to prove that four years ago when it put to the test the very survival of… – Continue reading

EU official vows to fight against tax evasion

BRUSSELS, Nov. 13 (Xinhua) — European Commissioner for Economic and Financial Affairs, Taxation and Customs Pierre Moscovici vowed on Thursday to push forward fight against tax evasion and raise the bar for tax good governance in Europe. “It is clear that we need to take a more systematic approach to… – Continue reading

Tax avoidance: three things G20 governments can do

The ability of multinational companies to shift profits into low-tax jurisdictions is undermining governments’ ability to raise revenue. But the cross-border policy solutions are complex. Curbing international tax avoidance has become a focus of G20 discussion this week, after last week’s revelation that major companies including Ikea, AMP and Pepsi… – Continue reading

Tax avoidance talk push from G20 nations

INSTITUTIONAL investors from three countries that are G20 members have called on this week’s summit to ensure transparency and disclosure are part of the G20’s talks on tax avoidance. The investors, including multi-billion dollar companies from the United Kingdom, Canada and France, and non-G20 nation The Netherlands, made the call… – Continue reading

India to sign agreement for data on tax evasion soon

India will soon put its signature on an agreement for exchange of information to curb tax evasion after refusing to sign the multilateral pact along with 51 nations in Berlin last month. Finance Ministry officials told Deccan Herald that the government was currently in the process of completing the internal… – Continue reading

Ireland scores poorly in European ‘Hidden Taxes’ report

NGO report calls for central listing of beneficial owners of EU firms and trusts The European Union should introduce a centralised public register revealing the identities of beneficial owners of companies and trusts, according to a pan-European report to be published today. Hidden Taxes: the EU’s Role in Supporting an… – Continue reading

Automatic exchange of tax info, balanced growth on G-20 agenda

Prime Minister Narendra Modi would attend the G-20 summit later this week where world leaders would come together for discussing issues including automatic exchange of tax information, taxation of large companies operating digitally, and a comprehensive strategy for strong, sustainable and balanced growth. Official sources said that the leaders will… – Continue reading

Luxembourg’s laxity needs to be addressed in context of major reform of international tax avoidance schemes

Those who live in glass houses do well not to throw stones, and Ireland’s predilection for such tax schemes as the “double Irish” probably makes it the last place to cast aspersions at Luxembourg’s creative approach to assisting what is now euphemistically called “tax planning”, once “tax avoidance”. Having sensibly… – Continue reading

Global base erosion rules likely to be finalised by end 2015NEW DELHI:

The global base erosion and profit shifting (BEPS) rules, aimed at collecting a fair share of taxes from multinationals operating in different tax jurisdictions, are likely to be finalised by December 2015, a senior finance ministry official today said. “Work on BEPS is moving very fast. If things go on… – Continue reading

Global Tax-Evasion Crackdown Sidestepping Poorest Countries

Washington – While a major global campaign to cut down on tax evasion is picking up momentum, anti-poverty advocates say the initiative overlooks the world’s poorest countries. Last week, 51 countries from four continents agreed to systematically exchange tax information by 2017, with the aim of allowing authorities to quickly… – Continue reading

FATCA cost concerns grow

FATCA compliance is going to cost more than anticipated, research has revealed More than half (55%) of financial organisations now expect to exceed their original budget to adhere to the new rules, while only 35% believe they will stay on budget, a survey from Thomson Reuters has found. The Foreign… – Continue reading

British Virgin Islands: Impact Of FATCA On BVI Entities

This publication provides a brief overview of the expected impact on entities incorporated in the British Virgin Islands (the “BVI”) 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… – Continue reading