A court in Arnhem has torn up fines imposed on a group of people with secret savings abroad because the tax office would not name the source of its information. The appeal court ruled in favour of the alleged tax evaders because the refusal ‘severely damaged their ability to refute… – Continue reading
(Reuters) – The European Commission is investigating a Belgian system allowing companies to reduce their tax bills significantly, it said on Tuesday, widening its inquiry into tax deals struck with multinationals across the European Union. The Commission, which rules on competition and subsidies in the European Union, said deductions granted… – Continue reading
The United Nations (UN) has plumped for greater cooperation among countries to put in place a set of safeguards and rules for tax reforms the world over in the bleak backdrop of extant rules and conditions, “particularly regarding illicit flows, as well as tax avoidance” often limiting what governments can… – Continue reading
Progress continues to be made in the BEPS project, with the release in September 2014 of the “2014 Deliverables” and a raft of discussion drafts published during the autumn. Here is a summary of all the recent developments. Within the framework of the BEPS (Base Erosion and Profit Shifting) action… – Continue reading
The Internal Revenue Service (IRS) has released revised versions of its Tax Guide for Aliens, providing guidance for resident and nonresident aliens for use in preparing their 2014 tax returns, and of its Tax Guide for Individuals Receiving Income from the United States Possessions – American Samoa, Puerto Rico, the… – Continue reading
Law360, New York (February 03, 2015, 10:22 PM ET) — Casino operator Caesars Entertainment Corp. has created a new anti-money laundering position in the wake of federal inquiries into its practices, hiring away a top compliance expert from Wal-Mart Stores Inc., according to a spokesman. Former Wal-Mart compliance expert Ben… – Continue reading
On January 14, federal prosecutors told attorneys representing Mission Hills businesswoman Cheryl Womack that she had until the end of the day to take their plea offer or leave it. It had been a couple of months since Womack seemed ready to accept some kind of fate offered up by… – Continue reading
On 30 January 2015 the Legislative Council passed certain changes to the Mandatory Provident Fund Schemes Ordinance (“MPFSO”). Such changes, when they come into force, will enable the withdrawal of benefits on the terminal illness of an employee, and also enable a phased withdrawal of accrued benefits. In addition, the… – Continue reading
Planned new measures to tackle what UK tax authorities have described as “persistent” use of avoidance schemes would target the promoters of these schemes, as well as taxpayers, an expert has said.03 Feb 2015 HM Revenue and Customs (HMRC) is consulting on proposed additional financial and reporting burdens for those… – Continue reading
Ireland has been ranked among the least complex business destinations for multinationals, and its appeal has improved as a result of recent international tax policy changes, according to a new study. The study from the TMF Group ranked 81 jurisdictions across Europe, the Middle East, Africa, Asia-Pacific, and the Americas… – Continue reading
Many wealthy foreigners considering their options for investment, permanent residency or citizenship in the US are concerned about the US tax policy. Many have heard of the US income tax on worldwide income, but in reality, astute advisors can mitigate or eliminate the additional expense. US Freedom Capital, the premier… – Continue reading
From 6 April 2015 any individual, whether UK-resident or non-UK-resident, owning property in the UK and abroad, will need to ensure they comply with the new rules if they are to benefit from the relief when selling their PPR On 15 December 2014 the Government issued draft legislation to implement… – Continue reading
Business industry feedback on BEPS discussion drafts, including comments from BIAC, TEI, Reed Elsevier, Volvo and Siemens, suggests that the OECD has done little to quash taxpayer concerns over double taxation and dispute resolution. The OECD’s BEPS project was the TP topic of 2014 and will undoubtedly retain the top… – Continue reading
Weak governance means Africa loses more than $50bn each year in unpaid taxes and money laundering, a new report has found. The analysis, published jointly by the African Union and the United Nations Economic Commission for Africa, concluded that a lack of financial transparency and difficulties in obtaining systematic data… – Continue reading
The National Taxpayer Advocate Nina Olson is a strong and vocal advocate for taxpayer rights. Her annual report to Congress castigates the IRS for its unfair application of offshore account penalties, and its disparate treatment of innocent Americans caught in reporting snafus. Some of the report asks the IRS to… – Continue reading
Guernsey’s forward-thinking approach to international regulatory requirements has aided the success of its funds industry and raising its profile as an international finance centre, according to a panel discussion at the Guernsey Funds Masterclass in London. Panellists discussed the implementation of regulations like such as the Alternative Investment Fund Managers… – Continue reading
MINSK, 2 February (BelTA) – Belarus and Georgia plan to step up cooperation in taxation, customs affairs, and a number of other avenues. These matters were discussed among other things during the session of the Belarusian-Georgian intergovernmental commission on economic cooperation in Minsk on 2 February, BelTA has learned. Participants… – Continue reading
Panellists at a Guernsey funds technical masterclass in London have praised the jurisdiction for its “progressive nature” in tackling international regulatory developments. Delegates were told that Guernsey’s response to initiatives such as the Alternative Investment Fund Managers Directive (AIFMD), Markets in Financial Instruments Directive (MiFID) II, the Foreign Account Tax… – Continue reading
GCC nationals with dual citizenship face IRS efforts to collect income tax from non-residents Thousands of Gulf States nationals could be US tax evaders and not even know it. According to Italian-Swiss lawyer Giovanni Rossi who works for a law firm handling many of similar cases, the number could reach… – Continue reading
Finance minister Arun Jaitley is likely to defer implementation of the dreaded General Anti-avoidance Rules (GAAR) by at least a year so that tax officers and the industry are better equipped for the sophisticated tool aimed at preventing tax avoidance. As per the original plan, GAAR, formulated by the UPA… – Continue reading
SELF-assessment is a vital element of tax policy and is employed by many countries to collect taxes as it is considered more efficient and cost-effective. Pakistan adopted universal self-assessment for all taxpayers in 2002-03 to ensure voluntary compliance. Using the technique of ordinary least square regression and quarterly data for… – Continue reading
The draft legislation published on 10 December 2014 (see here) devotes almost 30 pages to the new “diverted profits tax” (DPT), which from 1 April 2015 will introduce a new tax at a rate of 25% to profits generated by those multinational corporate groups who, in the eyes of the… – Continue reading
New Delhi: Multinational companies operating in India will soon have to disclose details of their operations at the country of residence and their revenue income to the Income Tax authorities. The Budget for 2015-16 may contain provisions relating to the Global Base Erosion and Profit Shifting (BEPS) rules, which are… – Continue reading
Eleventh-hour legislation in December kept many tax breaks alive for the 2014 tax year, but they weren’t extended beyond that. (See chart on page 26.) So clients who want to take advantage of those breaks need to get with a knowledgeable practitioner—and quickly. “CPA firms nationwide face a staffing challenge… – Continue reading
India and US reach common ground on Mutual Agreement Procedure (“MAP)” and break new ground on Advance Pricing Agreements (“APA”) Suchint Majmudar Just ahead of Obama’s momentous R-Day visit to India, the Competent Authorities of India and US reached a landmark breakthrough in cases involving mutual agreement procedure under the… – Continue reading
The IRS issued two New Releases this week that restate its focus on offshore tax evasion. The first was January 29, 2015 which followed the First International Criminal Tax Symposium. “The Internal Revenue Service Criminal Investigation Division (IRS-CI) and Her Majesty’s Revenue & Customs (HMRC) co-hosted a three-day International Criminal… – Continue reading
Critics question whether Galuteria actually lives in Senate District 12, which he has represented since 2008. State Sen. Brickwood Galuteria admitted Monday that he has improperly claimed a rental property in Palolo as his primary residence and will likely have to pay back taxes on the nearly $1.8 million home…. – Continue reading
Portugal’s Ministry of Finance announced on January 29, 2015, that the Government has approved a three-year plan to combat tax evasion. The 2015-2017 plan includes a list of 40 priority measures to combat tax fraud and evasion and clamp down on the grey economy. A key measure is the introduction… – Continue reading
The Internal Revenue Service announced in January that its International Data Exchange Service (IDES) is open for enrollment, and that financial institutions and host country tax authorities will be able to use IDES to securely send their information reports on financial accounts held by Americans to the IRS under the… – Continue reading
The police are carrying out 146 searches in Bucharest and other 11 counties, targeting 90 people from IT and construction companies, suspected of money laundering and tax evasion. They are believed to have created damages of EUR 30 million to the state budget. Among the companies under the lens are… – Continue reading
The Australian Tax Office is pushing ahead with a controversial plan to allow the country’s biggest corporations to audit themselves through their own private auditors, despite mounting public anger over corporate tax avoidance. An ATO spokesman said 56 public companies with a turnover of between $100 million and $5 billion… – Continue reading
Private companies often get away with tax evasion because they can afford better lawyers than government, former president Thabo Mbeki has said. “The problem is that private companies or large companies are able to mobilise much better skills with regards to lawyers, accountants, banking people and all that, so they… – Continue reading
NEW DELHI: Multinational companies operating in India will soon have to disclose details of their operations at the country of residence and their revenue income to the Income Tax authorities. The Budget for 2015-16 may contain provisions relating to the Global Base Erosion and Profit Shifting (BEPS) rules, which are… – Continue reading
SUMMARY On February 2, 2015, the Obama Administration (the “Administration”) released the General Explanations of the Administration’s Fiscal Year 2016 Revenue Proposals (commonly known as the “Green Book”), which contains significant detail about the fiscal year 2016 revenue proposals. This memorandum discusses certain aspects of the Green Book relating to… – Continue reading
According to an estimate by the European Commission, the EU is at least 1,000 billion euros out of pocket because of tax evasion and avoidance. A major problem related to tax evasion is that in many cases it does not involve any illegal activities but is regarded as tax planning… – Continue reading
The present French Tax Update will focus on (i) the most salient features of the new double tax treaty signed by the People’s Republic of China (China) and France on November 26, 2013 (New DTT), (ii) the new double tax treaty signed by Singapore and France on January 15, 2015,… – Continue reading
Potential candidates can gain foreign experience and donations in the British capital but expatriate supporters want action on Obama’s onerous tax demands Republican donors in the UK are lobbying the presidential hopefuls visiting London in search of foreign policy credentials and wealthy corporate allies to abandon President Barack Obama’s aggressive… – Continue reading
IN LAST WEEK’S column we talked about the OECD’s BEPS Action Plan on Hybrid Mismatch Arrangements. This week’s column focuses on the OECD’s Action Plan on Harmful Tax Practices (HTP). As the world economy continues the process of globalization and technological advances, tax authorities from various jurisdictions are inevitably faced… – Continue reading
With over 7 million Americans living abroad, many have complained about the rigorous IRS enforcement of global tax reporting, the risk of draconian FBAR penalties for reporting foreign accounts, and FATCA discrimination. FATCA, America’s global tax enforcement law, applies virtually everywhere. It is easy for the IRS to find you,… – Continue reading
NEW DELHI: Getting tough with investment proposals from tax heavens, FIPB has deferred 23 applications in its last three meetings apprehending “treaty abuse”. According to sources, the Department of Revenue has expressed doubt that a few foreign companies were evading tax by routing their investments through tax heaven countries with… – Continue reading
IRS threatens 30% withholding tax on non-compliant banks Dubai: Many people, including American citizens working in the Gulf state, received recently letters from their UAE-based banks asking them for more details and papers in compliance with American laws introduced by tax service. The move comes as many citizens of the… – Continue reading
A double tax treaty (“DTT”) was signed between Cyprus and Lithuania in June 2013. The treaty which follows the OECD Model Convention for the avoidance of Double Taxation on Income and on Capital has been ratified by the two Contracting States and has entered into force as of 1 January… – Continue reading
NKY congressman says that current system amounts to ‘double taxation’ on people. His bill could save some seniors thousands of dollars. Are you a higher-income Social Security recipient who must pay federal taxes on your benefits? U.S. Rep. Thomas Massie is your friend. Massie, R-Garrison, last week introduced the latest… – Continue reading
A Sunday Mirror investigation has found Apple, Facebook, Amazon, Google, Ebay and Starbucks has paid less than one per cent tax Six of the world’s biggest companies paid just 0.3 per cent of their UK earnings in corporation tax last year, a Sunday Mirror probe has found. We have examined… – Continue reading
Feb 1 (Reuters) – The Chinese government’s vow to increase tax scrutiny of foreign companies has sent firms rushing to tax advisors ahead of the implementation on Sunday of new rules designed to rein in cross-border tax avoidance. Tax professionals and business lobbies alike have welcomed the move as an… – Continue reading
Capital Gains tax and inheritance tax should be merged to prevent wealthy homeowners being taxed twice, IoD suggests Capital gains tax and inheritance tax should be merged to prevent wealthy homeowners being taxed twice, according to the Institute of Directors. Taxes raising less than £5billion a year should be merged… – Continue reading
KATHMANDU, Jan 30: Nepal and Bangladesh on Thursday agreed to sign Double Taxation Avoidance Agreement (DTAA). Issuing a statement on Thursday, Inland Revenue Department (IRD) said the fourth round of meeting for DTAA held in Kathmandu took the decision. Director General of Inland Revenue Department (IRD) Chudamani Sharma and Head… – Continue reading
The Government of Spain has announced that new country-by-country (CbC) reporting obligations will be effective in Spain for tax periods beginning on or after January 1, 2016. The CbC reporting obligation, which was announced on January 20, 2015, will technically apply from 2017, when tax returns for the previous year… – Continue reading
LIGHTNING RELEASES (1/30/2015) – Attorney Gary S. Wolfe of The Wolfe Law Group is pleased to announce, after 12 years of research, the publication of his 10th book, Offshore Tax Evasion: The IRS and Swiss Banks, now available for immediate download through the Amazon Kindle store. Switzerland is the epicenter… – Continue reading
The EU won’t limit how much it seeks to claw back from companies including Apple and Amazon that are ensnared in tax probes if controversial deals with national governments are overturned. The European Commission is currently probing the tax arrangements between Apple and Ireland, alleging that a deal was struck… – Continue reading
