UK government plans to counter aggressive tax planning techniques used by multinational enterprises to divert profits from the UK to low tax jurisdictions could harm the international prospects of UK businesses according to an expert.03 Dec 2014 Corporate tax Tax Advanced Manufacturing & Technology Services UK Europe The new ‘diverted… – Continue reading
Finance Minister Michael Noonan has said that Ireland’s tax regime is fully transparent and that the Government supports international tax reform efforts. Noonan told an Institute of International and European Affairs conference that the world of international taxation is changing rapidly. He pointed out that, “in an increasingly globalized world,… – Continue reading
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. The UK announced plans to raise over £1bn over the next five years from a new “diverted profits”… – Continue reading
The controversial ‘double Irish’ tax mechanism was never part of the Irish tax code and was not a viable way of building a sustainable economy, says Minister for Finance Michael Noonan. Speaking at a major tax conference organised by the Institute of International and European Affairs, Mr Noonan, said the… – Continue reading
The Brazilian Federal Government decided to reduce from 20% to 17% the percentage of the maximum income tax rate required from the low-tax countries classified as “favored taxation country or dependency” (país ou dependência com tributação favorecida) or “privileged fiscal regime” (regime fiscal privilegiado). This measure was adopted by means… – Continue reading
December 3: The UK government today issued items that focus on multinational corporations and follow the OECD’s base erosion and profit shifting (BEPS) action plan—one issuance being a consultation document concerning hybrid mismatch arrangements, and the other being the Autumn Statement 2014 that includes provisions relating to country-by-country reporting, the… – Continue reading
Global banks may feel that purging their correspondent banking relationships will help them de-risk, but they should beware the unintended consequences. The Central Bank of Seychelles’ rescue of BMI Offshore Bank in November is one of the clearest examples of the impact global banks are having on smaller financial institutions… – Continue reading
The Netherlands has ended its resistance to EU measures aimed at tightening up the way companies use European parents and subsidiaries to reduce taxes, the NRC reports on Wednesday. Junior finance minister Eric Wiebes has written to parliament, urging MPs to support the Dutch position to amend the current regulations… – Continue reading
Bill Dodwell comments: “Chancellor George Osborne will deliver the final Autumn Statement of this parliament. We expect that most of the announcements will concentrate on the outcomes from proposals launched at earlier Budgets, together with some technical changes. There will also be the first consultation on how the UK should… – Continue reading
As oil prices plunge and Russia bleeds capital, the Kremlin is cracking down on residents who it says are evading taxes through holdings overseas. A law slated to go into effect on Jan. 1 is designed to clamp down on Russian citizens and companies that the Kremlin thinks are avoiding… – Continue reading
CORPORATE SECRECY, GLOBAL MONEY LAUNDERING MAKES IT HARDER FOR EMERGING ECONOMIES TO FIGHT CORRUPTION Corruption is a problem for all economies, requiring leading financial centres in the EU and US to act together with fast-growing economies to stop the corrupt from getting away with it, anti-corruption group Transparency International said… – Continue reading
Corruption is feared to be worsening in China, Turkey and other fast-growing economies, an anti-graft watchdog warned Wednesday, also urging the world’s banking centres to help combat sleaze and money-laundering. Transparency International released its annual Corruption Perceptions Index (CPI), which ranked Sudan, North Korea and Somalia as the worst offenders… – Continue reading
YORKSHIRE businesses that invest in research and development could face higher tax bills if Chancellor George Osborne uses his Autumn Statement to water down tax breaks following complaints by Germany. One of Mr Osborne’s flagship policies is set to be reformed on Wednesday following the resolution of a dispute with… – Continue reading
BVI Business Companies A1. What is the law on keeping and retaining records? Section 98 of the BVI Business Companies Act 2004 (BCA) has always provided that a BVI business company must keep records that: are sufficient to show and explain the company’s transactions; and will, at any time, enable… – Continue reading
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
“Nothing abnormal about the way Starbucks is run” The new chief executive of Starbucks has admitted that the coffee shop chain is unlikely to pay any UK corporation tax for another three years. Speaking to the Evening Standard, Mark Fox said the tax wouldn’t be applicable until the company turned… – Continue reading
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
What unites the dates February 12, 2013, July 19, 2013, and September 16, 2014? They are the key dates to this point in the OECD’s crusade against base erosion and profit shifting, which will be remembered either as a well-coordinated campaign against abusive tax avoidance by large multinational enterprises, or… – Continue reading
December 2: A tax commission charged with examining the tax system in Norway today submitted its report—NOU 2014: 13—to the Minister of Finance that describes proposals for changes to the corporate tax system and for adjustments to the tax system, in general. The tax commission’s report will be submitted for… – Continue reading
December 2: A tax commission charged with examining the tax system in Norway today submitted its report—NOU 2014: 13—to the Minister of Finance that describes proposals for changes to the corporate tax system and for adjustments to the tax system, in general. The tax commission’s report will be submitted for… – Continue reading
Project cannot be a ‘dialogue of the privileged’, stresses Minister for Finance Plans to reform the global tax system must not be used to create advantages for larger countries, Minister for Finance Michael Noonan has said. Addressing a conference in Dublin, he said Ireland overwhelmingly supported the Organisation for Economic… – Continue reading
Complying with USA FATCA and UK/EU Data Protection Requirements The US Foreign Account Tax Compliance Act (FATCA), passed by Congress in March 2010, was finally implemented in July 2014. The Act makes the US the only large economy to tax its nationals on all of their earnings anywhere in the… – Continue reading
SHANGHAI: China will toughen its stance on tax avoidance by foreign firms to prevent tax payments being directed overseas, the official Xinhua news agency has said, after Beijing levied $140 million in back taxes from U.S. firm Microsoft Corp last week. Beijing will closely monitor the profit levels of foreign… – Continue reading
The Department of Finance is actively involved in the BEPS process, but how it manages to balance national interests with a commitment to help developing countries reap the benefits of the reforms remains to be seen’ The recent Luxembourg leaks have kept the spotlight firmly on the lengths to which… – Continue reading
Taxation authorities in China said they would tighten their monitoring of foreign companies in order to prevent them from avoiding tax using numerous schemes. The official Xinhua news agency, citing tax officials in the country, reported that China would comprehensively monitor profit levels of foreign companies to make sure that… – Continue reading
AMP chief executive Craig Meller has launched an aggressive defence of the company’s international taxation arrangements after the financial services giant was named among some of the world’s biggest multinationals that allegedly channelled funds through Luxembourg to minimise their tax bills. The recent meeting of the G20 leaders in Brisbane… – Continue reading
YORKSHIRE businesses that invest in research and development could face higher tax bills if Chancellor George Osborne uses his Autumn Statement to water down tax breaks following complaints by Germany. One of Mr Osborne’s flagship policies is set to be reformed on Wednesday following the resolution of a dispute with… – Continue reading
The ATO has established a new taskforce to share compliance tactics, increase tax transparency and help countries to tackle base erosion and profit shifting in the Asia Pacific. Last week, ATO Commissioner Chris Jordan hosted the 44th meeting of the Study Group on Asian Tax Administration and Research (SGATAR) in… – Continue reading
Stock award is a popular method of rewarding talented and industrious employees. However, employees who render services across different jurisdictions may trigger a taxable presence in two or more jurisdictions. Such employees at times need to deal with the issue of double taxation on such benefits. A normal stock incentive… – Continue reading
At its recent meeting in Sydney, the 44th Study Group on Asian Tax Administration and Research agreed greater regional cooperation on tax issues. It will now create a new task force to enable the region to discuss and keep up to date on international developments and issues including base erosion… – Continue reading
Ireland has knocked the UK off the top spot as the most competitive tax destination, according to KPMG’s annual survey of Britain’s largest businesses However, the UK has increased the number of times it is mentioned in the companies’ top three competitive tax regimes. The KPMG Annual Survey of Tax… – Continue reading
George Osborne’s targeting of corporate tax dodges faces voter scepticism • Chancellor waters down tech company measures • Disbelief will greet key plan in autumn statement Almost 60% of adults in the UK don’t believe politicians’ promises to tackle corporate tax avoidance, according to a damning poll published ahead of… – Continue reading
It feels like FATCA has been around for years already, yet some companies are still coming to terms with its implications. However, as Kirsten Morel explains, impending deadlines are now creating a real sense of urgency It’s four years since US Congress enacted the Foreign Account Tax Compliance Act (FATCA),… – Continue reading
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
In the African tax sphere, the trend remains for headline tax rates to continue to remain stable or decrease. Withholding tax rates have generally remained stable, although the experience of Dentons and our clients is that African tax authorities are requiring tax to be withheld from payments that have not… – Continue reading
If you want to know how your local school is performing, you can check the My School website for data on its results, funding, enrollments and more. If you want to be sure about a company you’re doing business with, you can search ASIC’s registers for details of its ownership,… – Continue reading
December 1: The Inland Revenue last week released its annual compliance guide for taxpayers and reports on progress with respect to the OECD’s base erosion and profit shifting (BEPS) work and time frames, for New Zealand consultation on possible domestic law changes to address BEPS concerns. The 2014/15 compliance guide… – Continue reading
Swiss citizens voted against a referendum to dramatically slash immigration, in what had been described as an effort to protect the environment from a wave of resource-consuming new arrivals. Early results by polling agency gfs.bern, published by public broadcaster RTS, showed that 74 percent of Swiss voters turned down the… – Continue reading
The lead article in The Sunday Times Business section today (authored by Simon Duke and David Smith) says that Britain is at the forefront of a crackdown on corporate tax avoidance – a blitz on tax avoidance by multinationals. The UK Treasury is planning a consultation on forcing multinationals like… – Continue reading
Even though it was the French tax office that handed over encrypted information to AFIP head Ricardo Echegaray, the source of the revelations was former HSBC employee and whistleblower Hervé Falciani, a man responsible for giving the details of up to 130,000 Swiss bank accounts he suspected were linked with… – Continue reading
Demands for an independent investigation into ‘Lux Leaks’ tax avoidance affair remain after censure vote World Bulletin/News Desk Although the European Commission’s new president, Jean-Claude Juncker, has comfortably survived a no-confidence vote, demands for an independent investigation into the so-called “Lux Leaks” tax avoidance affair are continuing. The censure motion… – Continue reading
The revelations that global and multinational businesses have been brokering “secret” tax deals with Luxembourg to avoid paying taxes in their home countries, may be the first time an entire country has been implicated in tax avoidance collusion. A cache of leaked agreements uncovered by the International Consortium of Investigative… – Continue reading
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
Passage by the French assembly on 18 November 2014 of a draft Finance Bill for 2015 (which now will be presented to the Senate) Introduction by the French government on 12 November 2014 of a second draft amended Finance Bill for 2014 In general, the draft Finance Bill for 2015… – Continue reading
The new head of the European Commission Jean-Claude Juncker has faced, and survived a motion of no confidence, just weeks after taking up his role. MEPs wanted to censure the Commission, headed by the former Prime Minister of Luxembourg, in the wake of revelations that multinational companies used his country… – Continue reading
With the Opposition targeting the government on the black money issue, Finance Minister Arun Jaitley told the Rajya Sabha on Wednesday that the identity of 427 foreign account holders has been established, of which 250 have admitted to having these accounts. Replying to a debate on the issue, Jaitley said… – Continue reading
Centrist parties vote down European parliament motion criticising commission president’s role in tax avoidance schemes Jean-Claude Juncker, president of the European commission, has survived a motion of censure in the European parliament brought because of his role in tax avoidance schemes. The motion brought by Britain’s Ukip, France’s Front National,… – Continue reading
I’m afraid to say we made the wrong choice as Ukip are beginning to prove time and time again their insignificance in Europe. The European Parliament took a vote of confidence today on the newly appointed Commission of Jean Claude Juncker. The vote, triggered by the Luxleaks tax avoidance revelations,… – Continue reading
Public accounts committee will demand intricate details from Kevin Nicholson about tax avoiding schemes in Grand Duchy One of Britain’s top tax advisers at PricewaterhouseCoopers has been summoned to give evidence before MPs in the wake of revelations about controversial tax deals for PwC clients in Luxembourg. Kevin Nicholson, PwC… – Continue reading
European tax experts say that despite rule changes, Britain has one of the clearest systems Tax professionals view the Netherlands and the UK as the most attractive European countries in which to do business, according to a new survey. The two countries scored well on how simple their tax rules… – Continue reading
