Debate on multinational tax avoidance widens The surprise announcement by the European Commission that it is to extend its request for information on tax rulings to all European Union member states has the potential to significantly shift the terms of the debate on multinational tax avoidance. The timing of the… – Continue reading
Thomas Piketty’s “Capital in the 21st Century” was a 2014 must-read for anyone interested in economics. But while his claim that income and wealth inequality has risen over recent decades to highs last seen before the start of the First World War was widely accepted, his policy prescriptions were not…. – Continue reading
The amendments to the Tax Code of Ukraine, proposed in the draft law on improving tax control on transfer pricing, bring the Tax Code in line with the requirements of the Organisation for Economic Co-operation and Development (OECD) on transfer pricing for multinational companies and tax services. According to a… – Continue reading
HM Revenue & Customs (HMRC) has protected up to £123 million in tax after a tax tribunal upheld a landmark ruling against a stamp duty land tax avoidance scheme. In July 2013, the HMRC won a case against Project Blue, which used the scheme. According to the HMRC the scheme… – Continue reading
In a blow to Bitcoin’s international presence, Australia has confirmed it will keep its controversial sales tax policy for certain Bitcoin transactions. Following the Australian Tax Office (ATO) issuing the initial legislation earlier this year, considerable community opposition arose, with domestic exchange Coinjar even forced to relocate to the UK… – Continue reading
The New York State Department of Taxation and Finance (the Department) has backed off from an aggressive position that it has been taking in cases involving New York residence issues. Under New York law, a person who is not domiciled in the state can be treated as a resident for… – Continue reading
“These measures were taken in line with the policy announced by President Vladimir Putin for the Russian economy’s de-offshorization,” USM Holdings owned by billionaire Alisher Usmanov said MOSCOW, December 19. /TASS/. USM Holdings owned by billionaire Alisher Usmanov is transferring key assets to Russian holding companies, USM said in a… – Continue reading
The European Commission has announced that its ongoing inquiry into advance tax rulings will be expanded to cover all European Union member states. The Commission said on December 17 that it will ask member states to confirm whether they offer tax rulings. If they do, they will be requested to… – Continue reading
This is going to be the plum job for any international tax practitioner: Competent Authority for the Republic of Ireland. It seems pretty clear that the Base Erosion and Profit Shifting (BEPS) project will meet its announced deadline of the end of 2015 to produce final reports on all of… – Continue reading
The European Union has agreed rules to stamp out tax evasion and stop dirty money from criminal gangs or terrorism finance being channelled through anonymous companies. EU states and the European Parliament struck the agreement on Tuesday evening to update the bloc’s anti-money laundering rules, a statement from parliament’s economic… – Continue reading
(Reuters) – Luxembourg acceded on Thursday to the demand of the European Commission to release data to further EU antitrust regulators’ investigation into whether it allowed multinationals to pay excessively low taxes. The European Commission launched investigations this year into whether U.S. retailer Amazon (AMZN.O) and a unit of Italian… – Continue reading
There has been a recent surge in anti-tax inversion legislation discouraging companies attempting to shift corporate subsidiaries or headquarters to low-tax or tax-free countries. The issue was subjected to a great deal of publicity in April 2014 during the failed hostile takeover by Pfizer (NYSE:PFE) for AstraZeneca (NYSE:AZN) when Pfizer… – Continue reading
The Cayman Islands Tax Information Authority (“Cayman TIA”) issued the second official version of the Cayman Islands FATCA Guidance Notes (the “Guidance Notes”) on 15 December 2014. A copy of the Industry Advisory and the Guidance Notes can be found through the following links: Industry Advisory Guidance Notes on the… – Continue reading
Coalition plan for stripping ‘cloak of secrecy’ from shell firms that leaves housing loophole slated by politicians and other critics Business minister Matthew Hancock unveiled ‘the first UK anti-corruption plan bringing action across the government’. Photograph: Jack Taylor/Barcroft Media Government plans to rip “the cloak of secrecy” from corrupt officials… – Continue reading
Regional Adoption on Pace with Europe as Singapore Signs Agreement Experts at Wolters Kluwer Financial Services today issued guidance on the Foreign Account Tax Compliance Act in an effort to help support banks’ regulatory compliance efforts within the region. The commentary comes in reaction to the news last week that… – Continue reading
(CNS Business): Just days away from the 22 December deadline for many financial institutions to register with the US tax authorities to obtain their Global Intermediary Identification Number (GIIN) by 1 January 2015, the Cayman Islands Tax Information Authority has issued Version 2 of the FATCA Guidance Notes, which clarified… – Continue reading
India will start charging income tax on digital economy firms, such as Facebook, Twitter and Uber, soon after the OECD finalises a framework by April 2015 to tackle the widespread corporate practice of shifting of profits to low-tax countries, government officials said on Wednesday. Tax may be levied on overseas… – Continue reading
The move will be a major reprieve for Indian financial institutions dealing with US taxpayers New Delhi: India should be able to sign the Foreign Account Tax Compliance Act (Fatca) with the US by 31 December, said a senior government official. The move will be a major reprieve for Indian… – Continue reading
The move will be a major reprieve for Indian financial institutions dealing with US taxpayers New Delhi: India should be able to sign the Foreign Account Tax Compliance Act (Fatca) with the US by 31 December, said a senior government official. The move will be a major reprieve for Indian… – Continue reading
Jakarta. Indonesia has banned from foreign travel senior representatives of 147 firms and 21 individuals with outstanding tax bills amounting to $42.8 million as part of a crackdown on tax evasion, the finance ministry said on Wednesday. The tax office, which is under finance ministry, is also processing bans on… – Continue reading
Nigel Westman, of Clough and Company, says figures show tax evasion to be a bigger problem than tax avoidance Pressure is mounting to tackle tax evasion, a Kirklees accountant has warned. Nigel Westman, partner at Clough & Company in Cleckheaton, said that with tax dodgers allegedly costing the UK economy… – Continue reading
Where do things stand with the government’s efforts to combat corporate tax avoidance and evasion, one of its priorities as G20 chair in 2014? The headlines suggest a contradictory stance. The latest headline is that Treasurer Hockey ‘backflips on tax laws to target multinational profit-shifters’. This refers to the announcement… – Continue reading
Taipei, Dec. 18 (CNA) Trade and investment between Taiwan and Austria is expected to get a boost when their double taxation avoidance agreement signed earlier this year takes effect next year, the Ministry of Foreign Affairs said Thursday. The agreement signed in July was passed by the Austrian parliament on… – Continue reading
NEW DELHI: India is proposing to set up a dedicated dispute-resolution unit for expeditious disposal of transfer pricing cases that have in the past few years evoked strong reaction from domestic and international investors, with some dubbing this ‘tax terrorism’. Through this measure, the new government hopes to send out… – Continue reading
EU leaders attending today’s summit in Brussels will call for a renewed push against tax evasion as cash-strapped nations seek more ways to refill depleted government coffers. “There is an urgent need to advance efforts in the fight against tax avoidance and aggressive tax planning, both at the global and… – Continue reading
When the commission unveiled its work program this week, it pledged to drop a stalled energy-tax proposal and resume consultations on a common corporate consolidated tax base. The program also promises an “action plan on efforts to combat tax evasion and tax fraud, including a communication on a renewed approach… – Continue reading
Tracking tax evasion has been a global issue for the Group of 20 nations and the Organization for Economic Cooperation and Development, which is developing new standards to avoid base erosion and profit shifting. The EU also has tackled the issue from a variety of angles, such as approving a… – Continue reading
Advance Agreements The so-called tax rulings and advance pricing agreements will be formalised by the introduction of appropriate provisions in the Luxembourg tax laws. By this means, Luxembourg will be able to offer as from 1 January 2015 a unified system providing taxpayers with legal certainty and a consistent and egalitarian… – Continue reading
With an agenda to boost the manufacturing sector, the Prime Minister has appealed to companies around the world to “come and make in India.” Various reforms are being looked at by the government in order to make this vision come true—reforms in labour laws, special economic zone policy, trade policy,… – Continue reading
2015 promises to be a big year from an Australian customs perspective. However, before turning to the events of 2015, the end of 2014 brings issues of changing duty rates, transfer pricing adjustments and developments in our existing free trade agreements that need to be considered. Below we set out… – Continue reading
The European Union’s probe of tax deals expanded as the competition regulator asked all EU countries to give it information about financial agreements with multinational corporations. The EU is seeking lists of every company granted a so-called tax ruling between 2010 and 2013, the European Commission said today in an… – Continue reading
The OECD (Organisation for Economic Co-operation and Development), in its latest economic survey of Australia, recommends a change to the tax mix including increasing the GST (Goods And Services Tax) by 50% or more. “Make greater use of efficient tax bases such as the Goods and Services Tax and land… – Continue reading
The United States Council for International Business (USCIB) has warned that the United Kingdom’s proposal to impose a new tax on so-called “diverted profits” (DPT) would, if implemented, have a major impact on US-based multinational companies. The rules, contained in UK Government’s recent Autumn Statement, propose a 25 percent DPT… – Continue reading
Heading into the G20 in Brisbane last month, Treasurer Joe Hockey thundered that multinational companies who avoided paying tax were akin to “thieves” whose actions rendered it harder for governments to tackle poverty. Sadly however the government’s actions have failed to match its rhetoric. This week’s crafty back-down on Section… – Continue reading
The German government must revise rules that allow families to transfer companies from one generation to the next without paying estate tax after the country’s top court ruled the current exemption is unconstitutional. The inheritance law gives an unfair advantage to family-owned businesses over individuals passing on non-company assets, the… – Continue reading
Credit ratings of asset-backed securities fall short of quality standards, according to the European regulator for Standard & Poor’s, Moody’s Investors Service (MCO) and Fitch Ratings. Debt-rating companies lack “quality controls over information used and received from data providers,” have delayed annual rating reviews, and must strengthen “the review of… – Continue reading
Ukraine’s cabinet is to approve a bill to dissolve a convention made with Cyprus on the avoidance of double taxation, Ukrainian Prime Minister Arseniy Yatseniuk reportedly said on Wednesday. But sources in Nicosia said “it is not a final decision” and that the reported decision was “unexpected”. The new double… – Continue reading
The Czech Finance Minister Andrej Babis believes that the gambling industry could give a greater contribution to the country’s economy. According to Reuters, on Friday, Dec. 19, Babis will propose a significant increase of the gambling taxes applied in the Czech Republic that could double the levies currently applied. Today,… – Continue reading
Saudi Arabia will soon sign air transport agreements with 11 countries including Tanzania, Cote d’Ivoire, Zimbabwe, Uruguay and Mauritius as the Council of Ministers on Monday given the go-ahead to the General Authority of Civil Aviation (GACA). The Cabinet, chaired by Crown Prince Salman, deputy premier and minister of defense,… – Continue reading
[BRUSSELS] Owners of secretive companies in Europe will have a harder time keeping out of the public eye, EU negotiators agreed Wednesday, in another blow against opaque business practices after the LuxLeaks scandal. The agreement reached by the European Commission, European parliament and member states approves the creation of a… – Continue reading
An agreement to help crack down on cross-border tax evasion is being worked on by Singapore and Indonesia. The two nations are working on implementing the framework for the automatic exchange of information (AEOI) on tax matters, as they look to keep improving trade and investment ties. The move was… – Continue reading
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. Brussels has widened a probe into corporate tax rulings to include all 28 member states amid heightened scrutiny of sweetheart tax deals granted to businesses by national… – Continue reading
While the Foreign Account Tax Compliance Act (FATCA) has focused worldwide attention on U.S. efforts to create a mandatory cross-border exchange of tax information, the enactment of FATCA was not an isolated occurrence. For more than a decade, the Organisation for Economic Co-operation and Development (OECD) has been trying to… – Continue reading
December 17: The Australian Taxation Office (ATO) today finalised the transfer pricing ruling TR 2014/8, outlining the Commissioner’s views on the application of the recordkeeping provisions in Subdivision 284-E of Schedule 1 to the Taxation Administration Act 1953 (Subdivision 284-E). Taxpayers need to adequately address the requirements of Subdivision 284-E… – Continue reading
December 17: The Dutch Ministry of Finance announced that a new regulation for the avoidance of double taxation between the Netherlands and Curaçao is expected to be effective beginning 1 January 2016. The Dutch government bill concerning this regulation is pending consideration by the Lower House. Once approved, the bill… – Continue reading
If we make America the world’s most favored tax haven, money will flow to the USA. Talk of overhauling the tax code is stirring in Washington, but the overwhelming complexity of the task makes it difficult to accomplish, at least in the near term. Here’s a good, clean, quick way… – Continue reading
An investigation into tax rulings provided by certain EU member states is to be widened to cover all member states, according to a press release from the European Commission.17 Dec 2014 Tax Disputes and Investigations EU & Competition Tax Public procurement and state aid Corporate tax International tax UK Europe… – Continue reading
Some have called it the most important state and local tax case that the United States Supreme Court has heard in 20 years. The case is Maryland v. Wynne and it concerns the extent to which a state must provide credits for taxes paid to other states. The Wynnes, shareholders… – Continue reading
The European Union’s probe of sweetheart fiscal deals expanded as EU Competition Commissioner Margrethe Vestager asked all EU countries to provide information about tax accords with multinationals. The EU is seeking lists of every company granted a tax ruling from 2010 to 2013, the European Commission said today in an… – Continue reading
Companies will be forced to disclose their ultimate owners on national registers in European Union nations as the bloc seeks to clamp down on tax dodging, money laundering and terrorism financing. European Parliament legislators and representatives of 28 EU national governments struck a deal late yesterday to upgrade the bloc’s… – Continue reading
