The Foreign Ministry has confirmed that President Joko “Jokowi” Widodo will attend the G20 Summit in Brisbane, Australia on Nov. 15 to 16, burying speculation about his attendance at the event. “After much deliberation, the president has decided to attend the G20 Summit, as he acknowledges the significance and strategic… – Continue reading
WASHINGTON, Nov 5 (Thomson Reuters Foundation) – Most of the world’s biggest companies get a failing grade for transparency and are far too secretive about how they operate, despite mounting pressure for business to stand firm against bribery, corruption and tax avoidance, a survey has found. Transparency International, the leading… – Continue reading
An overhaul of the Grand Duchy’s corporate tax law and administration is required Occupying a damp 1,000 square miles where the French, German and Belgian borders meet, the Grand Duchy of Luxembourg is a far cry from the palm-fringed tropical island tax haven of popular imagination. In fact the country… – Continue reading
This publication provides a brief overview of the expected impact on entities incorporated in the British Virgin Islands (the “BVI”) of (a) the foreign account tax compliance provisions (“FATCA”) of the Hiring Incentives to Restore Employment Act, 2010 of the United States of America (the “US”); and (b) equivalent rules… – Continue reading
Switzerland’s tax information exchange agreements (TIEAs) with Jersey, Guernsey, and the Isle of Man have entered into force and will be effective from January 1, 2015. The Swiss Federal Council announced on November 3 that the treaties entered into force on October 14, 2014. They are the first of Switzerland’s… – Continue reading
Financial Supervisory Commission Chairman William Tseng (曾銘宗) is leading a group of officials on a trip to the US in an effort to confirm details of the US’ Foreign Account Tax Compliance Act (FATCA) and to ink a tax treaty with Washington. Officials said Vice Minister of Finance Wu Tang-chieh… – Continue reading
It was anticipated that with Prime Minister Narendra Modi’s visit to the US, uncertainty over FATCA implementation would come to an end. However, the Indian government is yet to make any announcements on the FATCA implementation after giving an in-principle approval to FATCA Inter Governmental Agreement (IGA) -Model -1, few… – Continue reading
(Reuters) – Singapore will implement a global agreement on swapping tax information, aimed at ending offshore tax evasion, by 2018, provided certain conditions are met, Finance Minister Tharman Shanmugaratnam said. Singapore would adopt the standard drawn up by the Organisation for Economic Cooperation and Development (OECD) that will require countries… – Continue reading
PENSION-SAVERS face big penalties after the Revenue Commissioners announced a clampdown on retirement funds that have been moved offshore to avoid tax. The Revenue Commissioners said moving pension funds abroad to avoid big tax bills may “fall foul” of the conditions under which they have approved schemes. They said approval… – Continue reading
Private sector arm of DfID and other EU development institutions channel significant investments to offshore havens, study finds More than two-thirds of the investments made by the private sector arm of the UK’s aid programme last year were channelled through “notoriously secretive” tax havens, according to a report that calls… – Continue reading
Many leading economies are failing to stop their companies from spreading corruption around the world, NGO Transparency International has warned in its annual progress report on enforcement of the OECD anti-bribery convention. The UK is one of only four countries signed up that is actively investigating and prosecuting companies which… – Continue reading
The end of the notorious corporate tax loophole known as the ‘Double Irish’ will not deter U.S. technology giants such as Google and Apple from further investment in the country, Ireland’s Prime Minister, Enda Kenny, told CNBC,” Jenny Cosgrave and Seema Mody report for CNBC. “The Taoiseach said the end… – Continue reading
ICC has expressed concern that the Organization for Economic Co-operation and Development (OECD) Action Plan on combating Base Erosion and Profit Shifting (“BEPS”), mandated by the G20, may inadvertently incur severe collateral damage on compliant taxpaying companies of all sizes as a result of well-meaning measures undertaken unilaterally by states… – Continue reading
Vodafone sign in India. Photo: Ishan Khosla. Used under Creative Commons license. Vodafone recently won a rare – but potentially very significant – victory over Indian tax authorities. The Bombay High Court dismissed the government demand for the company to pay 30 billion rupees (about $490 million) for a share… – Continue reading
High Court refuses special leave application in capital gains tax dispute The High Court has refused the special leave application by the taxpayer in a case involving the liability to capital gains tax (CGT) of a ‘limited partnership’ formed in the Cayman Islands. The application for special leave followed the… – Continue reading
Update on Accelerated Payments HMRC have recently published a briefing on the requirement of tax avoidance scheme users to make upfront payments of tax, known as ‘Accelerated Payments’. The briefing explains why HMRC believe it was necessary for them to be granted the power to demand tax ahead of the… – Continue reading
Top UK regulator says threat of fines is scaring banks and poses risk of cutting off financial services to emerging economies Andrew Bailey, the UK’s most senior banking regulator, has highlighted a ‘serious international coordination problem’. Photograph: Bloomberg/Getty Images There should be more international cooperation on money laundering rules to… – Continue reading
Noonan makes no reference to Irish Water charges or tax credits in Finance Bill speech Abolition of the “double Irish” corporate structure will not bring an end to “international tax planning”, Minister for Finance Michael Noonan has said. The change would, however, “address the reality that Ireland’s company tax residence… – Continue reading
Public institutions providing finance to businesses in developing countries are channelling billions of euros through secretive tax havens, a report published today (4 November) has found. Development Finance Institutions (DFIs) in Europe and the World Bank’s lending arm, the International Finance Corporation (IFC), are playing an increasingly dominant role in… – Continue reading
The taxation of a person is based on two principles: Source and Residence. A person for tax purposes includes an individual, trust, company, partnership and any form of business arrangement one chooses to take on. It should be noted that with globalisation, there is a constant mix of these two… – Continue reading
It is important that the Brisbane G20 Summit on Nov. 15–16 is a success. In an increasingly integrated global economy, effective forums for economic cooperation are needed. The 2008 global financial crisis was the catalyst for the G20 becoming a leaders’-level forum. The Washington, London, and Pittsburgh summits helped save… – Continue reading
(CNS Business): Tax havens will no longer exist in five years as a result of new rules aimed at combating tax abuse, the OECD has said. In the wake of the agreement signed last week by over 50 countries, including the Cayman Islands, Grace Perez-Navarro, from the Organisation for Economic… – Continue reading
November 3: The Organisation for Economic Cooperation and Development today released a discussion draft of the proposed modifications to Chapter VII of the OECD Transfer Pricing Guidelines relating to low value-adding intra-group services. Action 10 of the OECD’s action plan on base erosion and profit shifting (BEPS) directs the OECD… – Continue reading
Minister of Foreign Affairs of Lithuania Linas Linkevicius met with Marcos Bonturi, the OECD Director for Global Relations, and Nicola Bonucci, the OECD Director for Legal Affairs on 31 October in Vilnius. They discussed the next steps towards a smooth implementation of the OECD’s legally binding instruments by Lithuania, and… – Continue reading
Ingenious v HMRC, the case which begins at the Competition Tribunal in Bloomsbury Place London today, marks the culmination of almost a decade of wrangling between the blue chip British media investment company and the Revenue. Newspapers have been intrigued by the case because of the celebrity investors involved. David… – Continue reading
NEW DELHI/BERNE: Accounts inherited from family members as also from previously-constituted trusts or companies have come to the fore in a big way, as India seeks further details from Switzerland about those suspected to have ‘unaccounted’ wealth parked in the Swiss banks. Hundreds of individuals and entities, including 627 names… – Continue reading
Union Finance Minister Arun Jaitley on Sunday said that the issue over the disclosure of the names of those who have illegally stashed their black money abroad is not a debate over the admission of confidential information but is a matter pertaining to the unauthorized expose of the names in… – Continue reading
London is an increasingly important hub for offshore law firms, which are winning business from City-based financial institutions, and clients in Russia, western Europe and sub-Saharan Africa. Offshore law firms are constantly evolving, it seems. Traditionally, they operated in one offshore territory: whether the British Crown dependencies of Jersey, Guernsey… – Continue reading
Ahead of Prime Minister Narendra Modi’s first G20 meet in Australia this month, India is putting in place a cohesive strategy to prioritise issues of development and employment to the top of the agenda at the Summit. According to sources close to the development, the Prime Minister’s Office is keen… – Continue reading
In a big setback to the IRS’s juggernaut against tax evasion and offshore accounts, a former top UBS banker has been acquitted of tax evasion. The U.S. charged Raoul Weil with conspiracy to defraud the U.S. government. The former exec was facing five years in prison and a $250,000 fine,… – Continue reading
AHMEDABAD: In a crackdown on tax evaders in the period between April and September this year, the Directorate General of Central Excise Intelligence (DGCEI), Ahmedabad zonal unit, recovered around Rs 160 crore as excise duty and service tax. According to officials, more than Rs 300 crore evasion of excise duty… – Continue reading
PARIS–(BUSINESS WIRE)–On September 2, 2014, under the aegis of the President of the Commercial Court of Paris, LVMH Moët Hennessy – Louis Vuitton (“LVMH”) and Hermès International (“Hermès”) entered into a settlement agreement (the “Settlement Agreement”) aimed at restoring a climate of positive relations between them. “Communiqué – Distribution exceptionnelle… – Continue reading
Since the global economic crash of 2008, the Internal Revenue Service (IRS) in the U.S. has been trying to find other ways to generate income and much needed revenue. One avenue they are pursuing aggressively involves trying to stem tax evasion by U.S. citizens who are purposely hiding their funds… – Continue reading
iiNet says ‘your data could land in China’ Communications minister Malcolm Turnbull has told the telecommunications industry he doesn’t think Australian telecommunications carriers should be required to hold stored customer data within Australia. Data sovereignty has become a hot-button privacy topic in Australia with the rise of the cloud, and… – Continue reading
KUALA LUMPUR, Nov. 3 (Xinhua) — Leaders of Malaysia and Brunei Darussalam expressed satisfaction Monday with the progress in bilateral cooperations. In a joint statement issued in conjunction with the 18th Annual Leaders’ Consultation held here, Malaysian Prime Minister Najib and the Sultan of Brunei Darussalam Sultan Hassanal Bolkiah welcomed… – Continue reading
Finance ministers from 52 countries appeared to strike a major blow in the battle against global tax evasion in Berlin during the week. The tax deal signed by countries such as Germany, the UK and France also included major tax havens such as Liechtenstein, Switzerland and the British Virgin Islands…. – Continue reading
Forty-one businesses across the three Crown Dependencies responded to the survey, with 78 per cent of respondents saying they have completed their FATCA classification and only 10 per cent reporting that their internal entities are not yet registered with the IRS. Confidence in FATCA compliance is high within the islands,… – Continue reading
New York • Shifting the address of his Liberty Global Inc. from Colorado to London last year didn’t just put billionaire John C. Malone in a position to reduce his company’s tax bill. He also took precautions to avoid the capital-gains hit that the so-called inversion would trigger for him… – Continue reading
Global tax reform is on the agenda at the G20 in Brisbane to prevent aggressive tax avoidance, but developing countries are being excluded from decision-making Tax avoidance and evasion will be at the top of the agenda at the G20 Leaders’ Summit this month, when the leaders of many of… – Continue reading
FORT LAUDERDALE, Fla./ZURICH — From bundles of cash inside scraps of newspaper to setting up shell companies, the trial in Florida of a former UBS executive is a reminder of the extreme methods some Swiss bankers used to hide clients’ cash. Raoul Weil, 54, is the highest ranking Swiss banker… – Continue reading
Adds details on P&G halting operations in ARGENTINA, details on impact) Nov 3 (Reuters) – Procter & Gamble said on Monday it had temporarily suspended operations in ARGENTINA after the country’s tax authority, which has accused the company of tax fraud, said it started meetings with the world’s No.1 HOUSEHOLD… – Continue reading
Mark Hendrickson teaches economics at Grove City College. He writes the “No Panaceas” blog at Forbes.com and is a contributing editor of the St. Croix Review. Hendrickson’s most recent book is “God and Man on Wall Street: The Conscience of Capitalism” with Craig Columbus. The political left in America remains… – Continue reading
NEW DELHI, NOVEMBER 2: Industry body Assocham has sought deferment in the introduction of General anti-avoidance rules (GAAR) under the Indian income tax law. The income tax law must be amended immediately so as not to introduce GAAR from assessment year 2016-17 (financial year 2015-16), Assocham said in a memorandum… – Continue reading
Finance ministers from more than 50 countries recently signed the Multilateral Competent Authority Agreement, with another 30 countries pledging to sign the agreement by 2018. The agreement, signed in Berlin, is an effort to end what the US Bank Secrecy Act, which they called “obsolete.” The ministers met for two… – 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. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/e56ca00c-6010-11e4-98e6-00144feabdc0.html#ixzz3I617l1GT It is no secret that Apple, Starbucks and Amazon are among several high-profile companies… – Continue reading
It is all about transfer pricing issue which is not unique to India. Still, the judgment of the Bombay High Court of October 10, 2014, in the case of Vodafone India Services vs Union of India, has drawn a lot more attention than it would otherwise have. The main reason… – Continue reading
Given a choice of priority, should Indian authorities be chasing black money in circulation within the country or the illicit billions held in foreign banks? It is a nobrainer. Money whisked away abroad is tiny compared with the unaccounted money within India. Yet, the political system has long been barking… – Continue reading
A retired senior vice president at Israeli-based Mizrahi Tefahot Bank Ltd. (MZTF) was acquitted in Los Angeles federal court on charges he helped U.S. customers conceal their assets from the Internal Revenue Service. Jurors deliberated four hours yesterday before clearing Shokrollah Baravarian, 82, of conspiring to defraud the U.S. and… – Continue reading
Prime Minister Tony Abbott has spruiked Australia’s economic credentials ahead of the upcoming G20 summit in Brisbane. The summit from November 15-16 will see 4000 international delegates from 20 major economies converge on the Brisbane Convention and Exhibition Centre for talks on economic growth. Calling the summit “the world’s most… – Continue reading
India today told Mauritius that it will not take any decisions that will “adversely impact” bilateral relations while reassuring the country that amendments to the bilateral tax treaty would be made only after considering the legitimate interests of both sides. This was conveyed by External Affairs Minister Sushma Swaraj during… – Continue reading
