Category: Government Bodies

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

PwC charged with “selling tax avoidance on an industrial scale”; indulging in “scams”

The House of Commons Public Accounts Committee on Monday held a hearing on the role of accountancy firms in tax avoidance and PwC (PricewaterhouseCoopers), the Big 4 accounting firm, was represented by Kevin Nicholson, PwC head of tax in the UK and former HMRC (HM Revenue & Customs) tax inspector,… – Continue reading

Joe Hockey announces profit-shifting tax audit of 10 multinationals

The Australian Tax Office is auditing 10 multinational corporations and the government will consider introducing new laws aimed at targeting tax avoidance, Joe Hockey has said. The treasurer said on Tuesday the ATO was “embedded in the offices” of multinationals operating in Australia to closely scrutinise whether those companies were… – Continue reading

Parent-subsidiary directive: Council agrees to add anti-abuse clause against corporate tax avoidance

Padoan : “it will enable member states to better fight aggressive tax planning by groups of companies” The Council approved an amendment to an EU directive with the aim of preventing tax avoidance and aggressive tax planning by corporate groups. To this end, it agreed that it would introduce a… – Continue reading

ECONOMYAustralia to crack down on corporate tax avoidance

Australia may follow the UK in implementing a “diverted profits” tax on multinationals to crack down on tax avoidance. Joe Hockey, Australia’s treasurer, said on Tuesday that his office is exchanging information with London on its “Google tax”, which was announced last week, writes Jamie Smyth in Sydney. I am… – 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

New Luxembourg leaks reveal Disney, Koch Industries tax deals

(Reuters) – Tax deals that entertainment giant Walt Disney Co., commodities group Koch Industries [KCHIN.UL] and others agreed with the Luxembourg authorities were revealed on Tuesday by the International Consortium of Investigative Journalists (ICIJ). The ICIJ said the two companies engaged in complex restructurings, and channeled hundreds of millions of… – 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

Leading financial centres ‘must act on corruption’, says watchdog

China and Turkey have fallen in international rankings of perceived corruption, according to a new report released by the Berlin-based anti-corruption watchdog Transparency International (TI).09 Dec 2014 Regulatory Europe Asia Pacific Gulf Africa According to the latest edition of TI’s Corruption Perceptions Index for 2014, which scores countries on a… – Continue reading

Swedish Tax Agency reviews TP legislation and proposes changes

The Swedish Tax Agency has, on request by the Swedish Government (Ministry of Finance), evaluated the transfer pricing documentation rules’ functionality and proposed possible changes to simplify the application. The first step was to make an international comparison of the rules in relevant, comparable OECD countries. An overall assessment showed… – 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

EU Tax, Cisco, Google, Burger King: Intellectual Property

European Union nations that offer “patent box” tax breaks should retool their laws so that only deserving companies can claim benefits tied to technical innovations, according to a draft report from a European Union working group. Countries that use this kind of technology tax break should start legislative work next… – Continue reading

New Leak Reveals Luxembourg Tax Deals for Disney, Koch Brothers Empire

A new leak of confidential documents expands the list of big companies seeking secret tax deals in Luxembourg, exposing tax-saving maneuvers by American entertainment icon The Walt Disney Co., politically controversial Koch Industries Inc. and 33 other companies. Disney and Koch Industries, a U.S.-based energy and chemical conglomerate, both created… – Continue reading

ATO tax amnesty nets billions, but hunt for rich with secret Swiss accounts continues

Thousands of rich Australians have come forward to declare billions of dollars in untaxed assets and income stashed in bank accounts in Switzerland and in other countries. The rush comes as what the Australian Taxation office says is the last tax amnesty it will ever offer comes to an end…. – Continue reading

B2B: Beneficial Owner of Income: Treaty Benefits and the Introduction of the New Rules

The MT Conferences section did not involve the reporting or the editorial staff of The Moscow Times. Russian business is trembling in expectation of the new year when major changes recently introduced to the tax legislation will enter into force. There has been a lot of discussion regarding the increase… – 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

Global regulators need to standardise tax reporting mechanisms

Global regulators need to standardise the mechanisms by which financial institutions exchange tax information on their clients amid concern the number of tax information exchange agreements between various countries is spiraling out of control. This comes as a number of countries and global regulatory bodies introduce their own tax reporting… – Continue reading

Ireland is getting ‘kicked around’ by big European countries on tax: Hayes

The luxleaks scandal has been used as “cover” by big European nations to point the finger at the tax affairs of small countries like Ireland and try to push through rules that suit their own interests, according to Fine Gael’s Brian Hayes. The MEP, who sits on the parliament’s economic… – 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

UK: International Trade

People who provide services delivered through electronic means (‘Electronic Services’), sold to final consumers based in other EU states, need to cope with the change of ‘place of supply’ rules from 1 January 2015. Place of supply rules are one of the more hotly debated areas of VAT. They determine… – Continue reading

Tax Avoidance: The LuxLeaks Scandal Explained

On November 6th, 2014, the ICIJ journalists’ network revealed its investigation into leaked documents from professional services firm PricewaterhouseCoopers. Their analysis shows that over 340 multinational companies use schemes to avoid paying taxes – schemes made possible by Luxembourg’s particularly favourable tax laws. How did the ICIJ work together on… – Continue reading

PriceWaterhouseCoopers chief Kevin Nicholson denies lying over tax deals

Nicholson stands by previous testimony to MPs, as accountants are accused of mass-marketing tax avoidance schemes The head of tax at one of the UK’s top accounting groups was accused of lying to parliament about his firm’s role in devising controversial tax deals for clients in Luxembourg. Kevin Nicholson, PwC… – Continue reading

Putin welcomes billionaires back to Russia – but will they come?

President Putin’s surprise amnesty allowing Russians with cash stashed abroad to bring it back home with no penalty may be a windfall, but then maybe not. The US, Mexico, Italy, Kazakhstan, and many others have tried it with varied success. When financial crises hit, governments have tried to reel in… – Continue reading

Luxembourg Braces for New Wave of Tax-Deal Revelations

Luxembourg’s government is on alert for a new wave of tax revelations that Prime Minister Xavier Bettel expects to hit the country in the coming days. The country’s Finance Minister Pierre Gramegna received a new batch of questions from a group of investigative reporters that indicate more documents revealing alleged… – Continue reading

Two Years of Magnitsky Act: Facts and Details

The factbox devoted to two years of the so-called Magnitsky Act passed by US Senate. This act allows Washington to deny visas and freeze assets of Russian officials allegedly involved in the death of Russian lawyer Sergei Magnitsky. Five years ago, on November 16, 2009, Sergei Magnitsky, a tax and… – 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

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

EU Tax Working Group to Propose Retool of Patent Boxes

European Union nations that offer “patent box” tax breaks should retool their laws so that only deserving companies can claim benefits tied to technical innovations, according to a draft report from a European Union working group. Countries that use this kind of technology tax break should start legislative work next… – Continue reading

EU parliament studies tax avoidance in member states

(AFP) The European parliament ordered reports delving into tax evasion Thursday, a contentious topic after the “Luxleaks” scandal that has embroiled EU commission head and former Luxembourg premier Jean-Claude Juncker. A journalistic investigation using thousands of leaked files revealed last month that Luxembourg allowed hundreds of top companies to enjoy… – Continue reading

North America leads global increase in MAP uptake

The US and Canada are at the forefront of a global increase in new mutual agreement procedures (MAPs) being initiated, OECD figures show. There were 1,910 new MAPs in 2013, a 14% increase from 2012, when there were 1,678 new MAPs. North America accounted for most of this growth, with… – Continue reading

Guernsey’s economy shows signs of recovery despite protests

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/e3cae272-73d4-11e4-82a6-00144feabdc0.html#ixzz3LIqHN5hj A seafront car park in St Peter Port overlooked by Guernsey’s… – Continue reading

The Reasons To Be Skeptical About The UK’s Google Tax

Two things should be said about the UK’s new Google GOOGL -2.7% Tax as proposed in the Autumn Statement by George Osborne, the Chancellor of the Exchequer. The first is that there really is a certain amount of public anger about the manner in which the big tech companies (here… – Continue reading

TAX EVASION AND REFORMS IN GREECE – ANALYSIS

Greece is currently implementing a fiscal adjustment programme aimed at tackling tax evasion. This column discusses the impact of recent tax administration reforms on tax compliance in Greece. The intensification of audits, enforcement of penalties, and efficient collection of past debts can induce tax compliance and raise the collected revenue…. – 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

Taxing system drives Germans into arms of advisers

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Business has never been better at Knappworst and Partner, a tax advisory firm in Potsdam, a leafy city… – Continue reading

Tory veteran David Davis attacks government tax avoidance crackdown as threat to the rule of law

The government has become the biggest threat to the rule of law, according to veteran Tory backbencher and former minister David Davis. Speaking at a briefing organised by the Taxpayers’ Alliance and the Institute of Economic Affairs (IEA) he slammed the government’s attempts to limit tax avoidance through laws such… – 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

Govt guidelines to clarify ‘arm’s length’, ‘ordinary course of business’ definitions

To minimise confusion and litigation, the government will bring fresh guidelines to clearly explain the meaning of terms “arm’s length basis” and “ordinary course of business”, used in the Companies Act, 2013. “After understanding the significance of these two terms for our industry, we have decided to bring fresh guidelines,”… – Continue reading

Jaitley calls for more global cooperation to check tax evasion, smuggling

The Finance Minister added that free trade should also mean fair trade Calling upon revenue intelligence agencies to enhance cooperation with their global counterparts to check tax evasion and smuggling, Finance Minister Arun Jaitley today said free trade should also mean fair trade. Although the fiscal incentives for financial malpractices… – Continue reading

Swiss Bank Referendum Fails, Franc Drops

The Swiss voted down the initiative “Save Our Swiss Gold” on Sunday, November 30, by a margin of three to one, rejecting efforts to shore up the Swiss National Bank’s (SNB) balance sheet. Switzerland, a direct democracy, entertains an average of five such referendums every year, and most of them… – Continue reading

UK: Tax May Be Taxing, But No Tax May Be Even More Taxing! EU Competition Commissioner Hints At Potential State Aid Sanctions For Favourable Tax Rulings

The European Commission (Commission) has given one of its clearest indications yet that it is seeking to clamp down on unfair tax breaks or ‘waivers’ for underpaying companies through the EU rules on state aid. How does State aid apply to taxation? The EU rules on state aid prohibit the… – Continue reading

Global tax war looming and US won’t be backing down

The United States won’t give up its right to tax multinationals, and nations will go to war soon with countries like China on taxing rights, a US tax head says. Grant Thornton’s national managing partner of tax in the United States, Randy Robason, is in Australia this week for a… – 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