Large businesses require access to finances to fund on-going market development, regional expansion and mergers & acquisitions (M&A) to name a few. Conglomerates in particular have discovered that pooling together the different business units’ assets under treasury operations enables these to better manage the company’s liquidity as well as mitigate… – Continue reading
France has always been an attractive place to live but, there is a long-held perception that French taxes will eat up much of your income and savings, says Jason Porter, business development manager at Blevins Franks. Where annual income exceeds €1m (£729m, $1.1m), taxation at a rate of 75% (a… – Continue reading
PARIS: A continued crackdown on tax evasion could rake in two billion euros (US$2.2 billion) this year, similar to the amount raised in 2014, French Finance Minister Michel Sapin said. Looking to shore up fragile state accounts, France has launched a campaign to encourage taxpayers to come clean on previously… – Continue reading
Smaller companies, which innovate and create jobs, carry an unfair share of the burden In pre-revolutionary France aristocrats were exempt from direct taxation. On present trends the world’s elite corporations may soon find themselves similarly privileged. In the larger advanced countries the corporate tax base is eroding, partly because the… – Continue reading
An investment registration scheme launched by the government last year attracted a total of 1,469 valid registrations covering an aggregate of €455.8 million worth of eligible assets, The Finance Ministry told The Malta Independent. Of the total amount registered, €69.8 million or 15% of the total was repatriated following registration…. – Continue reading
Global entities liable to pay tax on yearly income if their place of effective management is India even for a single day Shell companies based abroad would have to pay taxes on their global income for a year if their place of effective management (POEM) is India even for a… – Continue reading
Working overseas can lead to tricky tax pitfalls, but seeking expert advice can keep you from paying up twice. Going overseas to work is a grand adventure for many young professionals. It offers the opportunity to experience a different culture, expand your work experience and enhance future career opportunities. But… – Continue reading
Bill Shorten, criticised for adopting a near invisible profile as Labor Leader, outlined a “policy brief” on Monday intended to tackle multinational tax avoidance and add nearly $2 billion to consolidated revenue over three years. The four-pronged approach includes changing the so-called thin-capitalisation rules allowing corporations to claim tax deductions… – Continue reading
Foreign subsidiaries may now have to pay tax both in India and the country of their operations At present, a company incorporated outside India is considered a tax resident only if the control and management of its affairs is situated wholly in India. Photo: Pradeep Gaur/Mint New Delhi: A budget… – Continue reading
Under Article 185, § 2, B of the Belgian Code on revenue taxes, an international group may ask for its taxes to be reduced by so-called excess profits, which are registered in the account of the Belgian entity as a result of the benefits of being part of an international… – Continue reading
Corporate tax reform has emerged as an area of potential bipartisan action in the United States Congress over the next few months. But fundamental questions about the right approach remain. There is widespread agreement that the US corporate tax system is deeply flawed. The rate is too high; the base… – Continue reading
Anti-Money laundering rules are hurting British trade by making it unreasonably difficult for honest firms to access finance, business group the Confederation of British Industry (CBI) said today, reports City AM. The rules are designed to deny crooks the ability to clean their dirty money through the banking system. But… – Continue reading
In previous updates we have alerted clients to the introduction of Cayman Islands regulations1, which give effect to the automatic exchange of tax information principles established by the US and UK intergovernmental agreements (the “Cayman US Regulations” and the “Cayman UK Regulations”, respectively). While many Cayman Islands entities will be… – Continue reading
The Conversation Five years ago the Henry Review undertook a detailed examination of Australia’s tax and transfer system. Today, the Tax and Transfer Policy Institute at ANU’s Crawford School has revisited the Henry Review, as the Australian government prepares to release its tax white paper. Tax reform should not be… – Continue reading
New Delhi: The announcement by Finance Minister Arun Jaitley categorising tax evasion in relation to holding of illegal foreign assets as a “predicate offence” under anti-money laundering laws has, for the first time, made concealment of income a criminal offence in India. At present, tax evasion is a civil offence… – Continue reading
The ATO has so far also ¬recouped $342 million in unpaid tax from 1900 offshore ¬accounts held by Australians and $215 million from multinationals. THE Australian Taxation Office will lead a new worldwide taskforce to crackdown on multinational tax cheats in a move it claims will yield billions of dollars… – Continue reading
In previous updates we have alerted clients to the introduction of Cayman Islands regulations1, which give effect to the automatic exchange of tax information principles established by the US and UK intergovernmental agreements (the “Cayman US Regulations” and the “Cayman UK Regulations”, respectively). While many Cayman Islands entities will be… – Continue reading
GUEST COLUMN- Dinesh Agarwal & Amit Poddar The Finance Act, 2012, had introduced the provisions for specified domestic transactions (SDT), extending the laws of transfer pricing to domestic transactions. One of the criteria for applicability of domestic transfer pricing was that the aggregate value of domestic transactions should be at… – Continue reading
Government proposes to come out with a modified General Anti-Avoidance Rules by incorporating provisions of the OECD’s BEPS project so as to effectively deal with the problem of tax avoidance by MNCs. The BEPS initiative aims to ensure that taxes are paid where profits are made. Multinational companies use a… – Continue reading
The British Virgin Islands (BVI), as one of the world’s leading finance centres and meeting the changing needs of international businesses and high net worth individuals (HNWIs), has managed to create a stable, well-regulated and neutral jurisdiction that makes a significant contribution to the liquidity of the global economy. The… – Continue reading
New Delhi: India will join the league of countries like Singapore, UK and the US with its proposed law to check black money, under which those hiding income and evading tax in relation to foreign assets can be slapped with a prison term of up to ten years.In fact, the… – Continue reading
Income tax returns filed with the Inland Revenue by former PN MPs Michael Falzons and Ninu Zammit paint a modest picture of their earnings in the 1970s and 1980s, and, as expected, make no mention of the money in their Swiss bank accounts. The tax returns were obtained from the… – Continue reading
The art of taxation, declared King Louis XIV’s Minister of Finances Jean-Baptiste Colbert, is in “so plucking the goose as to obtain the largest amount of feathers with the least amount of hissing”. The Budgets of Singapore and Hong Kong – released two days apart this week – have thrown… – Continue reading
When an economist presents his opinion to the public on any subject he should be asked to swear, similar to what witnesses do in a court trial, that he will follow Henry Hazlitt’s Lesson (Economics in One Lesson – Henry Hazlitt – 1946 – Harper & Brothers): “The art of… – Continue reading
You have to hand it to Emma Thompson and her actor husband Greg Wise for cleverly launching a tax boycott. They earn plenty of income, but won’t pay taxes until the British government cracks down on wealthy wealthier people shielding their riches. The pair want the culprits in the HSBC… – Continue reading
Minister of Finance Martin Dlamini said the proposed revenue measures would assist government in mobilising additional resources for protecting essential services while Southern African Customs Union (SACU) revenues fall in the medium term. He said these initiatives include an amendment of the Income Tax regulations, including removal of the tax… – Continue reading
(Reuters) – A continued crackdown on tax evasion could rake in two billion euros ($2.2 billion) this year, similar to the amount raised in 2014, French Finance Minister Michel Sapin said on Sunday. Looking to shore up fragile state accounts, France has launched a campaign to encourage taxpayers to come… – Continue reading
This egregious situation lets the wealthiest enjoy privileges without paying their fair dues Much has changed in the world since William Pitt the Younger was prime minister and the United Kingdom was at war with Napoleon. But among the tax rules laid down by Her Majesty’s Revenue and Customs there… – Continue reading
After several rounds of revisions and consultations in the past few years, the State Administration of Taxation (“SAT”) has recently promulgated the Bulletin on Several Issues concerning the Enterprise Income Tax (“EIT”) on Indirect Asset Transfer by Non-Resident Enterprises (“Bulletin 7”)[1]. Tax matters occurred but have not been settled before… – Continue reading
‘His failure to make more noise is odd’ says prominent tax QC His father, Nicholas, has worked for banks operating in tax havens Wife, Miriam Gonzalez Durantez’s, firm advertises ‘tax-planning services’ Lib Dems insist there is no conflict of interest involved in his position Not long ago, a law firm… – Continue reading
As recommended by Tax Administration Reforms Commission (TARC) under Parthasarathi Shome, for taxation, the appellate functions must be housed separately from the field functions, in order to have fair and judicious orders passed. Indian Revenue should be divided into two distinct sets—the operational side and the technical/adjudication side. The quasi-judicial… – Continue reading
The income tax department has scaled down its estimate of income suppression by multinational corporations in India in the 2014-15 audit of intra-group cross-border transactions to Rs 47,000 crore, a steep 22% decline from the extra taxable income the department had attributed to the firms in the previous audit. The… – Continue reading
ROME, Feb. 27 (Xinhua) — Italian Economy Minister Pier Carlo Padoan signed a treaty on Thursday with Liechtenstein Prime Minister and finance minister Adrian Hasler in Rome, a measure which abolishes bank secrecy. The agreement, which helps identify potential tax evaders, was fundamentally the same as the one signed between… – Continue reading
Two medical device companies, Cyberonics Inc from the United States and Italy’s Sorin SpA, have agreed to form a joint medical devices company with a combined equity value of USD2.7bn and will take advantage of the lower tax rate in the United Kingdom. Under the terms of the proposed transaction,… – Continue reading
Bank of America and four other banks have been queried by financial regulators about a complex trading maneuver that allows hedge funds to escape certain taxes. Reuters Financial regulators are heightening their focus on banks involved in complex international trades designed to skirt taxes, the Wall Street Journal reports. The… – Continue reading
Making tax-transparency standards watertight will be difficult THE optimistic view of the tax-evasion scandals that have bedevilled banks since 2008 is that they can only be seen in the rear-view mirror. The incriminating files in the latest case, regarding tax-dodging personal accounts held at the Swiss arm of HSBC, date… – Continue reading
ISLAMABAD: Transparency International (TI) has urged the National Accountability Bureau (NAB) to investigate evasion of tax, and call for information about the Pakistani investors who have succeeded to transfer Rs430 billion investment on the purchases of properties during the year 2013 and 2014. In a letter written to NAB chairman,… – Continue reading
IN THIS INSTALLMENT of our series on the Base Erosion and Profit Shifting (BEPS) initiatives of the Organization for Economic Co-operation and Development (OECD), we will tackle Action Plan 8 on the revisions to Chapters I, II and VI of the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax… – Continue reading
On February 24, Seychelles became the 85th signatory of the Organisation for Economic Co-operation and Development’s (OECD’s) Multilateral Convention on Mutual Administrative Assistance in Tax Matters, reports Tax News. The Convention is described as a comprehensive multilateral instrument to tackle tax evasion and increase transparency. In a statement, the OECD… – Continue reading
Pharmaceutical companies want the finance minister to increase tax concessions across the board as also bring in more clarity on amendment to the rollback of advance pricing agreements (APA), applicability of roll back benefit, impact on on-going assessment, applicability of roll back provisions on bilateral APAs etc. In a pre-budget… – Continue reading
Nationalist MEP says he will oppose any attempts to harmonise sensitive areas of taxation at a European level Taxation should remain the prerogative of European member states, Nationalist MEP David Casa said. “I will continue to oppose efforts at harmonisation at EU level of sensitive areas of taxation simply because… – Continue reading
Feb 26 (Reuters) – Israel’s banking regulator has demanded that two of Israel’s largest banks set aside money to settle possible U.S. tax evasion investigations, Army Radio reported on Thursday. Citing an unnamed source, the radio said the request was made to Hapoalim, Israel’s largest bank, and Mizrahi Tefahot, the… – Continue reading
In a February 20 letter to US Senate Majority Leader Mitch McConnell (R – Kentucky), the National Foreign Trade Council and other leading business organizations urged action on pending bilateral double taxation agreements (DTAs) and protocols. A coalition of ten business organizations, including the Business Roundtable, National Association of Manufacturers,… – Continue reading
KPMG in India through its survey, has tried to understand the expectations of India Inc. on various parameters such as policy reforms, clarity on indirect transfer tax provisions, applicability of MAT on foreign companies, amendment in the tax regime for REITs/ InvITs, deductions allowed to individuals, etc. Over 200 senior… – Continue reading
Amid widespread condemnation of multinational profit shifting, Tax Commissioner Chris Jordan says the Australian Taxation Office is on track to recoup $1 billion in revenue from companies. The political pressure on the Tax Office and Treasury to stop companies such as Apple, Google and Microsoft from shifting profits to low-tax… – Continue reading
Bank’s subsidiary in Switzerland is already being investigated by US authorities about whether it helped Americans evade tax The venerable Coutts bank, home of the Queen’s personal accounts, has been drawn into the mounting controversy about private banking with an admission that its Swiss arm is under investigation for aiding… – Continue reading
Al Tamimi & Company – Advocates and Legal Consultants Surabhi Singhi Kataria Tax planning has always been a topic of international debate and adjudication. The borderlines between permitted tax planning/avoidance and unlawful tax evasion have occupied the centre stage across the globe with several modern economies emphasizing the need for… – Continue reading
The breathless conundrum for IP companies is four-fold: not only should royalties be taxed at a low rate in order to maximise profits; but also research and development (R&D) or acquisition costs should be considered as allowable expenses to the maximum possible effect, whilst also the jurisdiction where the IP… – Continue reading
Last week, the Financial Conduct Authority (FCA) announced it would investigate claims that HSBC had helped wealthy clients avoid paying millions of pounds worth of tax. The financial watchdog revealed it was cooperating closely with the firm and other agencies involved in the matter, and would focus on issues relating… – Continue reading
On February 25, South Africa’s Minister of Finance, Nhlanhla Nene, presented a 2015 Budget that was said to be constrained by a slowing economy and lower-than-expected tax revenues. Nene indicated that the Government now has to rebalance its fiscal policy to reduce the “structural gap” that exists between spending on… – Continue reading
