Category: EU

MEPs Approve PANA Committee Tax Recommendations

Members of the European Parliament (MEPs) have approved the recommendations made by the European Parliament’s special committee on tax avoidance and evasion, calling for open registers of beneficial owners, effective protections for whistleblowers, and new rules for intermediaries. On December 13, MEPs approved the recommendations made by Parliament’s Special Inquiry… – Continue reading

EU to force firms to reveal true owners in wake of Panama Papers

Anti-corruption campaigners welcome move but criticise failure to include trusts in corporate ownership requirements Companies across the EU will be forced to disclose their true owners under new legislation prompted by the release of the Panama Papers. Anti-corruption campaigners applauded the agreement as a major step in the fight against… – Continue reading

Bahamas Faces Major Tax, Exchange Control Shake-Up

The Bahamas may have to completely overhaul its corporate and taxation structure to escape European Union/OECD ‘blacklisting’ threats, the Attorney General revealed yesterday. Carl Bethel QC told Tribune Business that the Government was “looking very carefully” at whether compliance with European (EU) demands will require this nation to eliminate the… – Continue reading

Blacklisting looms over different onshore, offshore tax rates – PM

The European Union is reportedly threatening to blacklist Antigua and Barbuda if it does not harmonise its tax rates for onshore and offshore financial services. This is according to Prime Minister Gaston Browne who was speaking in the parliament on Tuesday during the presentation of the Automatic Exchange of Financial… – Continue reading

Capital Markets Union: Commission announces new tax guidelines to make life easier for cross-border investors

The Commission has today put forward new guidelines on withholding taxes to help Member States reduce costs and simplify procedures for cross-border investors in the EU. The new Code of Conduct offers solutions for investors who, as a result of how withholding taxes are applied, end up paying taxes twice… – Continue reading

AmCham EU Speaks Out Against EU Digital Tax Proposals

The American Chamber of Commerce in the European Union has criticized the proposals put forward in the European Commission’s recent consultation on options for new tax rules or a new tax on digital firms. The aim of that consultation is to help the Commission to define an approach to the… – Continue reading

17 NAMED ON EU TAX HAVEN BLACKLIST

EU ministers have issued the bloc’s “list of non-cooperative jurisdictions for tax purposes”. The blacklist was created following a November 2016 European Council decision–in the wake of the Panama Papers, Luxleaks and other revelations of multinational tax avoidance–to evaluate jurisdictions outside the EU. Territories were judged on “tax transparency”, “fair… – Continue reading

The EU just put 3 Arab countries on a ‘blacklist’ of tax havens

Blacklisted nations may face sanctions. The European Union released its first-ever “blacklist” of global tax havens this week, including 17 territories, three of which are Arab countries. Deemed to fall short of EU tax standards, the United Arab Emirates, Tunisia, and Bahrain joined American Samoa, Barbados, Grenada, Guam, South Korea,… – Continue reading

‘EU Decision Demonstrates Bermuda’s Position’

[Updated] The Government of Bermuda said they note that the Economic and Financial Affairs Council [ECOFIN] has “reaffirmed Bermuda’s status as a cooperative tax jurisdiction.” Premier David Burt said, “Once again the EU has recognized Bermuda’s status as a cooperative jurisdiction, despite the interest surrounding a hack on a global… – Continue reading

Apple Begrudgingly Agrees to Pay Ireland Nearly $15 Billion in Back Taxes

Apple, whose CEO Tim Cook likes to talk a big game about how the tech industry should be more socially responsible while overseeing an international tax-avoidance regime that puts Scrooge McDuck’s gold-filled vault/swimming pool to shame, has agreed to repay Ireland $14.6 billion (around €13 billion) in unpaid taxes, the… – Continue reading

Bahamas ‘Done Everything Possible’ To Avoid Blacklist

THE Deputy Prime Minister believes the Bahamas has “done everything we could possibly do” to escape the European Union (EU) ‘tax haven’ blacklist that will be issued tomorrow. K P Turnquest told Tribune Business that the Minnis administration “has no reason to think” this nation will be deemed a ‘non-cooperative… – Continue reading

EU competition chief Margrethe Vestager threatens Tech giants with tax reform

Europe’s fierce enforcer of competition rules is threatening tech giants with tough new rules on tax if politicians fail to come to an agreement on changes to the current system. Efforts to amend rules that would apply tax more fairly to firms which largely operate online such as Google, Amazon,… – Continue reading

Hungary pursues flexible tax line to attract manufacturing

Hungary’s Investment Agency says highly competitive tax rates continue to attract automotive manufacturing to the country as the centrally-located countries of Central and Eastern Europe (CEE) jockey for access to labour. The Visegrad 4 countries; Hungary, Poland, Czech Republic and Poland, have been highly successful at drawing in hundreds of… – Continue reading

Irish Revenue Launches New Tax Evasion Inquiry

The Irish Revenue has announced that a new inquiry is underway to identify and pursue taxpayers engaged in offshore tax evasion and avoidance. Revenue said that the inquiry is being conducted in the context of increased and ongoing sharing of information between tax administrations, and of the changes to voluntary… – Continue reading

BDA & Industry Respond To Paradise Papers

“Reportage about hacked data from global law firm Appleby has highlighted the substantial lack of media understanding of offshore investment structures and Bermuda’s long-time reputation for tax transparency and cooperation with international authorities,” the Bermuda Business Development Agency said. “Bermuda is committed to the exchange of relevant information to legitimate… – Continue reading

PANA report ‘confirms’ Malta ‘not a tax haven’

FinanceMalta, the Institute of Financial Services Practitioners, the Chamber of Commerce, Enterprise and Industry and the Gozo Business Chamber have welcomed the PANA Committee’s confirmation that the Maltese tax system is in line with current international and EU standards. Furthermore,according to the Committee, Malta has transposed EU rules and respects… – Continue reading

CCCTB FAQ

The European Union Common Consolidated Corporate Tax Base (CCCTB) has been talked about recently as a solution to the problem of an imperfect pan-EU corporate tax system, which allows large companies, particularly those with a digital presence, to detach profits from value-creation, and pay tax in low-tax jurisdictions. But what… – Continue reading

Dutch government continues with dividend withholding tax proposal and announces conditional retroactive amendment to CIT fiscal unity regime

In this Tax Alert we will briefly highlight two topical Dutch tax matters very relevant to internationally active companies: the current status of the legislative proposal regarding Dutch dividend withholding tax rules for holding cooperatives and BVs/NVs and the announcement of the Dutch Ministry of Finance that the Dutch fiscal… – Continue reading

Work Ongoing On EU Tax Blacklist

Work on an EU “blacklist” of non-cooperative tax jurisdictions is proceeding as planned, according to Vice-President Valdis Dombrovskis. Dombrovskis made the comments following a meeting of EU finance ministers, at which the proposal was discussed. Dombrovskis said that finance ministers are calling for an agreement on the list to be… – Continue reading

EU Framework for resolving double tax disputes

The EU Economic and Financial Affairs Council has adopted a Directive to create a new system to resolve double taxation disputes between EU Member States. This measure will afford taxpayers a transparent process with clear deadlines applicable to tax authorities involved to resolve cross-border double tax disputes within the EU…. – Continue reading

EU to investigate UK tax loophole for multinationals

Inquiry to centre on George Osborne’s 2013 rule change that allows resident multinationals to shift income offshore The EU is to launch an investigation into a British government scheme that may help multinational firms pay less tax, the Guardian has learned. Margrethe Vestager, the EU competition commissioner, will announce on… – Continue reading

PANA committee calls for increased focus on virtual currencies, new technologies such as FinTech

The European Parliament’s PANA Committee has approved draft recommendations calling for increased scrutiny and regulation of emerging technologies, including virtual currencies and FinTech. The committee also approved a report delving into the findings of an 18-month probe into breaches of EU law in relation to money laundering, tax avoidance and… – Continue reading

International information exchange system to help fight tax evasion: Slovak officials

BRATISLAVA, Oct.18 (Xinhua) — International information exchange system could help fight tax evasion, said President of Slovak Financial Administration Frantisek Imrecze at a press conference here on Wednesday. According to Imrecze, the information exchange system has been available to the Slovak Financial Administration since Sept. 30, the Slovak tax office… – Continue reading

Switzerland agrees to share tax information on multinationals

ZURICH (Reuters) – Switzerland said on Wednesday it would start sharing information on the activities of multinationals in its territory with other countries in 2020, joining an international push to fight tax evasion. The new measures will force about 200 large companies in the low-tax haven to prepare country-by-country reports… – Continue reading

Revenue receives just 11 tax scheme alerts in six years

Exemptions make the mandatory disclosure regime a joke, says MEP Matt Carthy The Revenue Commissioners have received just 11 reports of potentially abusive tax-avoidance schemes since Ireland made it mandatory in early 2011 for transactions giving “aggressive” tax advantages to be disclosed to authorities. The disclosure by Minister for Finance… – Continue reading

Danish bank accused of Russia money laundering

Denmark’s top lender, Danske Bank, played an “organised” role in a Russian money-laundering scam, French prosecutors have said. The Tribunal de Grande Instance de Paris said the bank’s branch in Estonia helped to move €15 million of “money from organised fraud and tax evasion” in Russia into France and other… – Continue reading

Ireland Updates International Tax Strategy

The Irish Government has published an updated version of its International Tax Strategy, which provides an overview of the steps taken to meet international standards and sets out the Government’s position on global reform efforts. In his foreword to the Tax Strategy paper, Finance Minister Paschal Donohoe said: “In Ireland… – Continue reading

EU Approves Rules to Fix 900 Cross-Border Double-Tax Disputes

European Union finance ministers gave formal approval to legislation designed to dramatically reduce the 900-plus unresolved company cross-border double taxation disputes. The Oct. 10 approval for the EU Double Taxation Dispute Resolution Directivecomes amid skepticism from tax professionals that it has the resources to be effective. It includes mandatory binding… – Continue reading

Small EU countries need tax competition tools to compensate for major disadvantages – Sant

Maltese MEP and former Prime Minister Alfred Sant said that small EU countries and islands use tax competition tools in order to compensate for major competitive disadvantages due to their limited endowments and distance from major markets. Along with Malta, even Ireland and Cyprus have notably expressed their great concerns… – Continue reading

Ireland Seeks Comment on International Tax Strategy Plans

The Irish government is inviting businesses and practitioners to provide feedback on its plans to update its international tax strategy, including how Ireland should incorporate the OECD’s transfer pricing guidelines into national law and implement the European Union’s anti-tax avoidance rules. The consultation, which runs until the end of January… – Continue reading

EU finance ministers discuss plans for new taxation of digital firms

European Union plans for a new taxation system for digital companies, such as Skype and Amazon, both of which have European headquarters in Luxembourg, were discussed on Tuesday by EU finance ministers. A report from the European Commission in September said the effective average tax rate for a traditional international… – Continue reading

E.U., Citing Amazon and Apple, Tells Nations to Collect Tax

BRUSSELS — European competition regulators on Wednesday mounted a push against tax avoidance by Silicon Valley giants, announcing plans to take Ireland to court for failing to collect back taxes from Apple and ordering Luxembourg to claim unpaid taxes from Amazon. The effort, which comes as the European Union considers… – Continue reading

Ireland to be dragged in front of Europe’s highest court for refusing to accept €13billion in Apple back tax

The cash would be enough to fund the entire health service for a year Ireland faces legal action for failing to recover €13billion euros in tax from US tech giant Apple after European competition authorities blasted the country over a sweetheart deal. The European Commission said Ireland had not recouped… – Continue reading

EU divided over radical tax reforms targeting tech giants

The EU is deeply divided over how to increase the tax take from tech giants such as Google, Apple and Amazon, who have recently come under fire for being perceived as not paying their fair share of taxes A controversial set of reforms spearheaded by French president Emmanuel Macron propose… – Continue reading

EU Countries Seek Legislative End-Around on Digital Tech Tax

EU nations led by France and Italy reinforced the need for an “equalization tax” or turnover tax on large internet companies such as Facebook Inc. and Amazon.com Inc., and suggested they would use special legislative procedures to impose one in the event all 28 EU-member countries don’t back the levy…. – Continue reading

EU eyes corporate rules shake-up with law on seat transfer

The European Commission is preparing a new directive on the cross-border transfer of company headquarters, a move that could have far-reaching implications for other areas of corporate governance, including tax planning and cross-border mergers, EURACTIV has learned. With Brexit on the horizon, UK companies are busy weighing their options for… – Continue reading

U.S. companies urge EU to refrain from unilateral moves on Web tax

BRUSSELS (Reuters) – The European Union’s plans to increase taxes on digital firms risks undermining the bloc’s growth and stifle global efforts to find common solutions, U.S. companies operating in the EU said on Tuesday. Critics say online firms such as Google (GOOGL.O) or Facebook (FB.O) pay too little tax… – Continue reading

Business Europe Rejects EU Digital Turnover Tax Proposal

Markus J Beyrer, Director General of Business Europe, has expressed concerns about the proposed introduction of a European Union turnover tax on digital businesses. On September 21, the European Commission launched a new agenda to ensure that the digital economy is taxed “in a fair and growth-friendly way.” This could… – Continue reading

Public Country-by-Country Reporting; Taxpayers’ Rights

Appropriate Use of Country-by-Country Reports The OECD has now published Guidance (available here) on the appropriate use of Country-by-Country Reports (‘CbCRs’) by national tax authorities. This is in response to some valid MNE concerns that tax authorities may misuse CbCRs. “Appropriate use” is clarified as being for (i) high-level transfer… – Continue reading