Category: Income Tax Act

Canada Revenue Agency / Capital gains / Capital Gains Tax / Double Tax Treaty / Income Tax Act / Legislation / Tax Avoidance / Tax Laws / Tax Planning

Canada: “Changing Of The GAAR”: A Background On The General Anti-Avoidance Rule, And Canada’s Attempt To Expand Its Tax Power In The 2022 Budget

Published by: Mondaq - April 29, 2022

The Budget purports to introduce several new financial and taxation regimes, as well as enhance several existing mechanisms. One of the existing taxation mechanisms proposed to be amended is the General Anti-Avoidance Rule (the "GAAR"). The Government initially indicated they would be amending the GAAR in the 2021 Budget. The 2022 Budget now provides some additional detail, though we are still waiting for the actual legislation. ... - Continue reading

Advance Pricing Agreement / Central Board of Direct Taxes (CBDT) / Income Tax / Income Tax Act / India / Mutual Agreement Procedure / Transfer pricing

India: Rules To ‘Secondary Adjustment’ Rationalized And Clarified

Published by: Mondaq - October 16, 2019

The concept of 'Secondary Adjustment' was introduced in Finance Act 2017 by introducing new Section 92CE in the Indian Income Tax Act (the Act) to align transfer pricing provisions with international best practices. ... - Continue reading

Automatic Exchange of Information / Corruption / Income Tax Act / OECD / Offshore / Offshore Tax Evasion / Pakistan / Tax Authority / Tax Avoidance / Tax Laws

Declaration must for Pakistanis having foreign assets, income

Posted On: September 20, 2019

KARACHI: The Federal Board of Revenue (FBR) will tighten noose around offshore illicit money and assets as Pakistanis having undeclared assets abroad are required to file statement by September 30, 2019. “The FBR will launch proceedings against persons having offshore assets on the basis of available data,” an official at… – Continue reading

Canada / Double Taxation / Income Tax / Income Tax Act / Mutual Agreement Procedure / Profit Shifting / Tax Planning / Tax Refunds / Transfer pricing

Canada: Transfer Pricing: What’s New In Canada (Part II)

Published by: mondaq - September 4, 2019

Transfer pricing disputes in Canada have, predominately, been resolved through either a request for competent authority assistance under the Mutual Agreement Procedure ("MAP") of a treaty, or, to a much lesser extent, through the notice of objection process with CRA Appeals.  Regardless of the recent increase in transfer pricing cases being brought before the Courts, the MAP will likely continue to be the dispute resolution process most often utilized by a Canadian corporation in transfer pricing cases because, in the absence of a 100% reversal of a transfer pricing adjustment by either CRA Appeals or a Canadian court, economic double taxation may still exist as a consequence of the CRA upward transfer pricing adjustment. The correlative relief provided by the treaty partner under a MAP settlement resolves that double taxation. ... - Continue reading

Business / Income Tax / Income Tax Act / Individuals / Pakistan / Tax Amnesty / Tax Authority

Number of tax return filers increases to hit record 1.96 million

Posted On: May 9, 2019

KARACHI: Number of tax return filers has increased around seven percent year-over-year to hit the record 1.96 million for the tax year 2018 as the government extended the deadline of filing three times to April 30, sources said on Wednesday. The FBR received 1,963,348 returns by April 30, 2019, which… – Continue reading

Immovable Property / Income Tax Act / Pakistan / Property / Tax Amnesty / Tax Authority / Tax Collection

FBR documents Rs75 billion properties under amnesty scheme in July-March

Posted On: May 8, 2019

KARACHI: The Federal Board of Revenue (FBR) has documented Rs75 billion worth of properties during the first nine months of the current fiscal year of 2018/19 under a tax amnesty scheme; although the revenue collection fell a quarter year-on-year on uncertainty about the concessions, sources said on Tuesday The sources… – Continue reading

Canada / Canada Revenue Agency / Goods and Services Tax / Income Tax Act / Tax Evasion / Tax evasion investigations / Tax Fraud / Tax Laws / Vancouver

Metro Vancouver developer and builder sentenced for tax evasion

Posted On: May 3, 2019

A developer and builder based in Anmore has been found guilty of tax evasion and making false statements under the Income Tax Act, the Canada Revenue Agency (CRA) announced on Friday. According to the CRA, Willi Isaak was sentenced to pay a $23,100 fine, after being found guilty on two… – Continue reading

Banking / Double Tax Treaty / Income Tax Act / Non-resident Enterprises / Residence / Tax Authority / Tax Evasion

NRIs don’t need to reveal details of foreign bank accounts, assets to Indian tax dept: I-T Tribunal

Posted On: November 28, 2018

The Income-Tax Appellate Tribunal (ITAT) has said NRIs do not need to reveal details of their foreign bank accounts and assets to Indian authorities. The tribunal has also ruled that the onus is on the I-T Department to prove an assessee has parked undeclared income arising from India in foreign… – Continue reading

Canada / Canada Revenue Agency / Common Reporting Standard / Income Tax Act / Jurisdiction / OECD / Offshore / Offshore Banking / Offshore Fund / Residence / Tax Authority / Tax Transparency

Canada: Common Reporting Standard Is Now Fully In Effect – If You Have Been Hiding Funds Or Assets Offshore, Now Is The Time To Disclose

Posted On: November 28, 2018

Introduction – Offshore funds and Canada Revenue Agency’ reach Gone are the days when offshore bank accounts were outside the Canada Revenue Agency (CRA)’s reach. With the advent of the Common Reporting Standard (CRS), CRA automatically receives financial information of Canadian taxpayers who own bank accounts or assets in other… – Continue reading

Base Erosion & Profit Shifting / China / Double Tax Treaty / Income Tax Act / India / Legislation / Tax Evasion

India-China amends double taxation avoidance treaty

Posted On: November 26, 2018

New Delhi, Nov 26 India and China have amended the bilateral tax treaty which will help prevent tax evasion by allowing exchange of information, the Finance Ministry said Monday. The Government of India and the People’s Republic of China have signed a protocol on November 26, 2018, to amend the… – Continue reading

Base Erosion & Profit Shifting / Business / Corporate Tax / Exemptions / Income Tax Act / Investments / OECD / Revenue / Tax Break

PM announces tax ease for businesses

Posted On: November 21, 2018

Prime Minister, Mia Mottley has announced a major tax break for local business. In her mini-budget presentation made earlier this year, she had announced that come July 1, corporation tax will increase from 25 per cent to 30 per cent which was expected to raise $57M in a full year…. – Continue reading

Income Tax / Income Tax Act / India / Residence / Trust / Trustee

NRIs can be appointed as Trustees of valid Indian Trusts under Income Tax Act: ITAT [Read Order]

Posted On: October 10, 2018

The New Delhi bench of Income Tax Appellate Tribunal (ITAT) in Global Academy of Emergency Medicine versus CIT(E), held that under the Income Tax Act appointing of NRIs as trustees of valid Indian trusts are permissible. The sole issue in the instant case was CIT (E) held that the owner… – Continue reading

Business / Central Board of Direct Taxes (CBDT) / Goods and Services Tax / Income Tax / Income Tax Act / Tax Evasion / Tax Laws

CBDT Revises Form 3CD: To mine GST Data to check Tax Evasion [Read Notification]

Posted On: July 23, 2018

The Central Board of Direct Taxes ( CBDT ) has revised the Form No. 3CD, an audit report under section 44AB of the Income Tax Act, 1961 in a case where the accounts of the business or profession of a person have been audited under any other law. Earlier there… – Continue reading

Income Tax Act / Legislation / OECD / Offshore / Offshore Accounts / Offshore Tax Evasion / Offshore Wealth / Pakistan / Residence / Revenue / Tax Amnesty / Tax Authority / Tax Avoidance / Tax Collection

Behind the amnesty

Posted On: July 23, 2018

The extension of the deadline of the tax amnesty scheme has not borne the results it was expected to. The FBR is said to have taken the advice of accounting firms to extend the deadline, but the results have not matched the early optimism. Despite this, though, the amnesty scheme… – Continue reading

Double Taxation / Income Tax / Income Tax Act / India / Tax Deductions / Tax Laws

No Income Tax on Lottery Prize since Tax was already paid under Sikkim State Income Tax Rules: SC [Read Judgment]

Posted On: April 26, 2018

In Mahaveer Kumar Jain vs. Commissioner of Income Tax, the Supreme Court held that the income earned by the assessee from lottery prize cannot be subjected to tax under Income Tax Act, 1961 when the same tax was already paid under Sikkim State Income Tax Rules, 1948. The appellant had… – Continue reading

Australia / Australian Taxation Office / Debt / Framework / Income Tax Act / Interest / Loans / Multinational Anti-Avoidance Law / Offshore / Tax Laws / Transfer pricing

Australia Announces Upcoming Guidance On Int’l Tax Matters

Posted On: February 28, 2018

The Australian Tax Office has updated and added to its list of the guidance on international tax matters it intends to release this year. This month, the ATO intends to release a guide on corporate residency – central management and control in Australia [reference code 3838], to provide the ATO’s… – Continue reading

Base Erosion & Profit Shifting / Canada / Dividends / Gaar / Income Tax Act / OECD / Tax treaties / Withholding Tax

New PPT rule in the OECD’s Multilateral Instrument to displace Canadian GAAR?

Posted On: November 27, 2017

In this Update On June 7, 2017, Canada signed the OECD’s Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the MLI) The MLI will modify up to 75 of Canada’s bilateral tax treaties, including adding a broad anti-avoidance rule to these treaties (the… – Continue reading

Base Erosion & Profit Shifting / Canada / Country-by-Country (CbyC) Reporting / Income Tax / Income Tax Act / OECD / Tax treaties

OECD releases guidance to ensure BEPS country-by-country reports are used appropriately.

Posted On: September 11, 2017

Canada has implemented the country-by-country reporting requirement for large multinational enterprises (MNEs) contained in the 2015 Final Report on Action 13 of the OECD’s Base Erosion and Profit Shifting (BEPS) Action Plan.  Canada’s legislation is found in s. 233.8 of the Income Tax Act (Canada), and is supported by the… – Continue reading

British Virgin Islands / Cyprus / Income Tax / Income Tax Act / India / Jurisdiction / Offshore / Panama / Prosecutions / Seychelles / Tax Evasion / Trust

Panama probe: First prosecutions are taken to court for off-shore tax evasion

Posted On: September 9, 2017

While at the beginning of the year (The Indian Express, March 16, 2017) the number of requests sent by India stood at 283 cases, it has now crossed 300. And while the number of replies received from among these 13 jurisdictions stood at 165, that figure has now crossed 240…. – Continue reading

Double Taxation / Employment / Expatriates / Income Tax / Income Tax Act / Malaysia / Tax Deductions / Tax Relief

Individual Income Tax in Malaysia for Expatriates

Posted On: May 22, 2017

Malaysia uses both progressive and flat rates for personal income tax, depending on an individual’s duration and type of work in the country. As expatriates may fall into either tax category depending on their work, it is important to understand Malaysia’s basic tax structure. The Income Tax Act of 1967… – Continue reading

Cairn / Capital gains / Capital Gains Tax / Hutchinson / Income Tax Act / India / Offshore / Tax Authority / Vodafone

India Initiates $5 Billion Tax Penalty Against Cairn Energy

Posted On: April 24, 2017

Indian tax authorities have initiated a $4.75 billion penalty charge against Cairn Energy for failing to pay a capital gains tax demand of $1.58 billion on a 2006 transaction. Under Section 271(1)(c) of the Income Tax Act, Indian tax authorities can levy a maximum 200 percent penalty against transactions after… – Continue reading

Anti money laundering / Automatic Exchange of Information / Common Reporting Standard / Debt / Income Tax Act / Interest / Jurisdiction / New Zealand / Offshore Tax Evasion / Residence / Tax Authority

Next off the block – AEOI

Posted On: March 17, 2017

You might have thought you have enough on your plate getting to grips with anti-money laundering rules closely followed by FATCA – but it’s not over yet! Next off the block is the Automatic Exchange of Financial Account Information in Tax Matters (AEOI). The AEOI, which we first provided an… – Continue reading

Budget / Capital Gains Tax / Double Taxation / Foreign Institutional Investor / Income Tax Act / India / Interest / Investments / Legislation / Property / Shares / Vodafone

The ‘indirect transfer provisions’ monster

Posted On: January 25, 2017

The most important task of the Finance Minister in the 2017-18 budget is to tame the “Indirect Transfer Provisions” monster born out of amendments to Section 9 of the Income Tax Act, 1961. In response to the Supreme Court’s judgement in the famous Vodafone case, the Finance Act, 2012 amended… – Continue reading

Canada / Exemptions / Income Tax Act / Legislation / Property / Real Estate / Residence / Tax Authority / Trust

Canada: New Principal Residence Exemption Rules

Posted On: January 25, 2017

On October 3, 2016 the Federal Government proposed changes to the Income Tax Act (the “Act”) and administrative policies that will impact claiming the principal residence exemption. 1. All dispositions of principal residences must now be reported. Previously, the CRA did not require taxpayers to report the sale of a… – Continue reading

Base Erosion & Profit Shifting / Earnings stripping / G20 / Germany / Income Tax / Income Tax Act / Jurisdiction / OECD / Offshore / Related party Transactions / Royalties / Tax Authority / Tax Deductibility / Tax Evasion / Tax Planning

BEPS – Germany on the way to limit the tax deductibility of royalties

Posted On: January 23, 2017

A new legislative approach of the German tax authorities leaked last December 19 will have a significant impact on the tax deductibility of royalties owed to related persons being subject to a preferential back end tax regime for IP not being in compliance with the Organisation for Economic Co-operation and… – Continue reading

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