The proposals plan to tax giant digital companies on turnover rather than profits EU finance ministers have agreed to step up technical work on harmonising the taxation of the giant digital companies with a view to debating “possible solutions” at their December meeting. The ministerial consensus was a significant setback...
With corporate tax reform still very much on the table, advocacy group Alliance for Competitive Taxation (ACT) has weighed in with a reform plan that it deems internationally competitive and pro-growth, and capable of driving transformational change in the U.S. economy. ACT doesn’t define its member businesses but says it...
Greece is defying the prevalent trend among the world’s industrialized nations for reducing tax rates in order to boost investment and competitiveness, a report published on Wednesday by the Organization for Economic Cooperation and Development (OECD) has shown. According to the report, in contrast to the majority of...
CBDT chairman Sushil Chandra says income tax dept will soon conclude probe into financial dealings of about 100,000 individuals suspected of tax evasion New Delhi: The income tax department will conclude its investigations into the financial dealings of about 100,000 individuals suspected of tax evasion and persuade many other assessees...
Multinational corporations with profits held overseas would face a mandatory one-time tax as part of the planned Republican tax legislation, Treasury Secretary Steven Mnuchin said Wednesday. “There will be a ‘deemed tax’ as a one-time charge,” Mnuchin said in an interview with Fox News at the Treasury. U.S. companies have...
The four biggest economies in the Eurozone – Germany, France, Italy, and Spain — demand an end to the erosion of their tax base by means of incorporation in states that facilitate tax avoidance. According to the Financial Times, Bruno Le Maire, Wolfgang Schaeuble, Pier-Carlo Padoan, and Luis de Guindos,...
Operations in the European Union haven’t been easy going for tech companies for quite a long time. While many European countries earlier called for strict privacy regulations and large fines on tech companies for violating them, they have now called for increased taxation for these companies for their operations in...
The EU 28 financial ministers are set to discuss taxation of multinational digital platforms in Tallin on September 15-16, Reuters reports. Companies such as Amazon and Google have designed tax plans that reduce their tax liability in countries they operate. The proposal put forward by the Estonian Presidency proposes to...
BRUSSELS — European Union finance ministers are set to discuss rule changes next week aimed at increasing taxes on digital multinationals such as Google and Amazon, an EU document seen by Reuters said. Online giants are facing increasing pressure in Europe over the low tax they pay, but states have...
Argentina is reportedly considering shifting the burden of tax towards consumption, to bring the country’s corporate tax rate down to a competitive level. Specific measures are expected to be tabled before lawmakers soon. It is anticipated that there could be a 10 percent cut to the corporate income tax rate,...
President Donald J. Trump is working to reform the tax system so that Americans are treated fairly and can keep more of their hard-earned money, and companies can bring jobs back to the United States. According to a news release from the administration, Trump will jumpstart America’s economic engine by...
The government said Wednesday that it will toughen its stance against tax evasion by multinational firms by adopting a global agreement in the country’s legal system within the year. In the mid-to-long term tax policy plan announced Wednesday, the finance ministry said that it would submit bills to enact “OECD...
Kelly O’Dwyer, Australia’s Minister for Revenue and Financial Services, has stressed that the Government has taken and will continue to take steps to tackle corporate tax avoidance by large businesses. Speaking to Sunrise’s David Koch on August 23, 2017, the Minister said: “We absolutely believe very strongly that you cannot...
The caretaker government may make the Netherlands a less attractive location for international business because of changes to the corporate tax system, the employers’ organisation VNO-NCW and tax advisers have warned, the Financieele Dagblad said on Monday. The employers and Dutch Order of Tax Advisors say the government is choosing...
Four of the world’s largest companies have been under investigation by Australian tax authorities, amid new evidence from US executives about how Facebook, Google, Apple and Microsoft are shifting money to offshore tax havens. Appearing before a highly anticipated public hearing into corporate tax evasion, the executives endured questions about...
The Internal Resources Division (IRD) has issued a directive to audit maximum 25,000 income tax files of both individuals and corporate taxpayers to detect tax evasion and concealment of actual income, officials said. The income tax authority has received the directive from the IRD not to exceed this number of...
Some of New Zealand’s largest companies are calling on any future government to lower the corporate tax rate, which is becoming high compared to other countries, and a “New Zealand first” approach to policing cross-border finance arrangements that under-tax revenue in other countries. Published jointly by peak business lobby Business...
The government’s plan to impose more levies on large companies will undermine their competitiveness amid a rising global trend of tax reductions and further distort the country’s taxation structure, analysts say. A draft tax code revision unveiled early this month proposes raising the corporate tax rate for businesses with taxable...
This article is the third of a series of articles that examines tax aspects of the UK company which make it an attractive international business company, or “IBC”. This generic label, and its acronym, are normally associated with the BVI company, and its international competitors in other offshore financial centres....
The statutory federal corporate tax rate in the United States is 35%, and it has been since 1993. Any company that pays that rate should probably be looking for a new chief financial officer. When state taxes are slotted in, the average combined tax rate is 39.1%, according to a...
Amazon has refused to reveal how much it paid in total UK tax last year after it emerged it actually got a rebate of £1.3million. The online giant, which three years ago pledged to stop using a controversial tax avoidance scheme, admitted it had paid just £7million in corporation tax...
Contrary to calls from businesses from the regulation’s withdrawal, the Institute on Taxation and Economic Policy has called on the US Treasury to fully implement and strengthen its final Section 385 anti-earnings stripping debt-equity regulations, designed to reduce the benefits of corporate tax inversions. The final regulations, released in October...
Paying employees in gold bullions to avoid tax will not be permitted under the first use of the general anti-abuse rule (GAAR). The GAAR advisory panel stated that the use of gold as payments for employees is “abnormal and contrived” and “not a reasonable course of action”. “We can see...
Stock analysts in South Korea played down the possible impact of the government’s decision Wednesday to impose taxes on foreign investors holding over 5 percent of a company, but warned of widening volatility prompted by foreign investors’ sell-offs over the past couple of weeks. Starting January 2018, a broader scope...
The change converts tax-deductible interest payments employed by the schemes into taxable stock dividends. The U.S. government on Friday gave companies an extra year to comply with an Obama-era regulation meant to crack down on corporations that try to minimize their U.S. tax bills by shifting profits abroad to countries...
Federal income tax reform is by far the biggest concern of corporate tax executives, a new survey from Bloomberg BNA reveals. Survey of Corporate Tax Departments 2017 spotlights several key tax issues, and “corporate tax professionals are facing a wealth of challenges as they look to prepare their businesses for...
France intends to appeal against a recent court decision in favor of Google in a major tax avoidance case, but is open to settling the dispute outside of court, a government minister has said. In an interview with Les Echos, Minister of Action and Public Accounts, Gerald Darmanin, said that...
Business group Ibec has said that the Irish Government must “Brexit proof” its 2018 Budget, improve its foreign direct investment model, and implement a range of tax reforms to compete with the UK. Publishing the group’s pre-Budget submission, Ibec Director of Policy and Public Affairs, Fergal O’Brien said: “The Irish...
The OECD has praised Luxembourg’s tax regime for its predictability, although it sounded a warning about the volatility of tax revenues from the financial sector. In its latest assessment of the Luxembourg economy, the OECD said that Luxembourg’s strong economic performance was due partly to “business-friendly regulations, a predictable tax...
Senator Orrin Hatch (R – Utah) has said that lowering the United States’ corporate tax rate to one of the lowest in the world should be a top priority in current tax reform efforts. The Chairman of the Senate Committee on Finance said that the US corporate rate, one of...
The Australian Tax Office is preparing to take several companies to court over abuse of thin capitalisation rules and will start a wave of audits of large multinationals with complex cross-border loans, as it continues to take a hardline approach in the wake of its win against Chevron. The ATO...
Andrew Howard, Ropes & Gray tax partner, discusses the UK’s new corporate criminal offence of failure to prevent tax evasion, which goes into effect in September 2017. Click here to view video. Transcript: The UK’s new corporate offence of failure to prevent facilitation of tax evasion is quite a mouthful,...
PANA Committee Chairman Werner Langen has argued that Malta’s corporate tax system is unfair, while addressing the PANA committee this evening. He was addressing the PANA Committee earlier today, during the discussion regarding the draft recommendations on the PANA Committee findings. A PANA Committee MEP had mentioned that the criteria...
EU Tax Commissioner Pierre Moscovici has described the proposed common consolidated corporation tax base as a “decisive tool against corporate tax avoidance.” Moscovici made the comment during a speech on tax fairness. He said the CCCTB will provide companies with a single rulebook for calculating their taxable profit throughout the...
Introduction Finance Act 2016 replaced the test for corporate residency of foreign companies from “control and management being situated wholly in India” to “place of effective management (POEM) in India”. POEM has been defined to mean a place where key management and commercial decisions that are necessary for conduct of...
The OECD’s body for assessing compliance with international tax transparency standards plans to tell an upcoming summit in Hamburg, Germany, that Trinidad and Tobago is the world’s only tax haven. Group of 20 country leaders meeting last year in China asked that body, the Global Forum on Transparency and Exchange...
A new report shows the offshore jurisdiction is home to assets of $1.5tn, double an estimate by the International Monetary Fund in 2010. Assets held offshore in the British Virgin Islands (BVI) are worth $1.5 trillion (£1.19 trillion), double the International Monetary Fund’s 2010 estimate. That’s according to a new...
President Donald Trump and Republican leaders in Congress will soon confront a complex challenge for tax reform: how to limit U.S. corporate tax avoidance schemes that take advantage of low tax rates in foreign countries. Congressional and administration staff have begun to examine options to address profit-shifting schemes that include...
Chevron has decided to take its tax battles to the High Court of Australia after it was reported that the supermajor is in the crosshairs of the Australian Tax Office (ATO) for a disputed AU$1 billion outstanding tax bill. This comes after the Federal Court ruled in favor of the...
The United States could boost its standard of living by 6 to 9 percent using one simple trick, a new report by the Federal Reserve Bank of Dallas found. OK, so it’s not really that simple, if we’re being honest: The trick is fundamentally turning around the way we tax...
Finance Minister Ueli Maurer has presented his plan B for a new corporate tax after the last attempt at a change to the law was thrown out by voters. The plan includes raising family allowances in a move seen as sweetening the pill for voters, who overwhelmingly rejected the previous...
BHP has defended its Singapore marketing hub, where it is accused of routing profits, and says it is confident of its position in a $1 billion dispute with the Australian Taxation Office over the amount of taxes payable on the sale of Australian commodities to its Singapore marketing business. BHP’s...
A top personal tax rate of 49.5 per cent will hasten the trend for multinationals to base their operations in Asia rather than Australia, according to recruiters and tax specialists. “There is no doubt higher taxes make Australia a less attractive country for international executives who can just as easily...
May 30 Germany and France hope to agree proposals for a common corporation tax system before the French National Assembly elections in June, German Finance Minister Wolfgang Schaeuble said at a Berlin tax conference on Tuesday. “We’re having another go at agreeing not just common principles on corporate taxation, but...
Finance Minister Arun Jaitley will travel to Paris next week to sign the OECD multilateral convention that aims to check crossborder tax evasion by multinational companies. During his three-day visit beginning June 7, Jaitley will also attend the OECD Ministerial Council meeting, in which ministers from the OECD and partner...
The agreed rules will stop companies from escaping tax by exploiting the mismatches between Member States’ and non-EU countries’ tax systems (“hybrid mismatches”). Today’s (29 May) agreement completes the Anti Tax Avoidance Directive (ATAD) which ensures that binding and robust anti-abuse measures are applied throughout the Single Market. “Our campaign...
On Friday, a variety of news outlets around the world published the Malta Files, a cache of 150,000 documents leaked “from a Malta-based provider of legal, financial and corporate services,” revealing, among other things, that Turkish President Recep Tayyip Erdogan was secretly given a $25M oil tanker (!) by Azeri...
The finance minister says federal government doesn’t “want to wait for the next Panama Papers.” Canada’s finance minister denounced “unfair” tax loopholes on Thursday and put Bay St. on notice that the Liberal government is committed to addressing “blind spots” and exposing shadowy corporate finances to public scrutiny. “We don’t...
EU Vice-President Valdis Dombrovskis has said there is a broad consensus among European finance ministers on the principle of greater tax harmonization, and that talks will continue on the proposed common corporate tax base (CCTB). At a May 23 ECOFIN meeting, ministers discussed the Commission’s proposal for a CCTB in...
New reporting regulations meant to help authorities track down evasion at home and corrupt officials overseas Beijing has ordered an overhaul of financial accounts to crack down on tax cheats at home and abroad. From July 1, all deposit-taking institutions, policy banks, investment agencies and insurers must ensure each new...
