The Organization for Economic Co-operation and Development’s (OECD) Action Plan 6 on the Base Erosion and Profit Shifting (BEPS) initiative recognizes that countries need to incorporate sufficient safeguards in their tax treaties and domestic rules to protect against practices that take advantage of the differences in national tax systems and… – Continue reading
The tax collection agency HMRC has said work to identify Scottish taxpayers is proving “more complex” than anticipated. It wants access to NHS records to help identify those eligible to pay the new Scottish rate of income tax (SRIT). Labour has called on the Scottish and UK governments to “get… – Continue reading
More than 100 tax disputes involving Indian associates of US companies such as IBM and Microsoft are set to be settled out of court by April this year with the income tax department and the US Internal Revenue Service identifying disputes in the contract research, IT and software sectors for… – Continue reading
From 6 April 2015 (the start of the UK tax year), the UK taxation of share option gains and other employee share awards is changing. The new treatment applies regardless of when options or other awards were made and so in effect the change is retrospective and affects options and… – Continue reading
The OECD will present the latest developments in the OECD/G20 project to combat base erosion and profit shifting (BEPS) by multinational enterprises during a G20 Finance Ministers meeting on early next week (9th/10th February) in Istanbul. OECD and G20 countries have agreed three key elements that will enable implementation of… – Continue reading
The serious doubts expressed by many, most recently Professor Christians of McGill University, as to the Constitutional authority cited by the US Treasury1 in support of each Inter Governmental Agreement (an “IGA”) entered into by it on behalf of the United States government to implement FATCA have been rendered practically… – Continue reading
On 29 January 2015, the Hong Kong Inland Revenue Department (“IRD”) announced new, hard-line procedures for obtaining a certificate of Hong Kong resident status (“tax residence certificate”) for the purpose of Hong Kong’s comprehensive double taxation agreement (“DTA”) network. The new rules became effective on 1 February 2015. This Client… – Continue reading
G20 finance ministers will hear about the OECD’s three-pronged approach to implementation of the BEPS Action Plan at their meeting in Istanbul on Monday and Tuesday of next week (February 9 and 10). The OECD, which is leading the work, outlined today what has been agreed so far with the… – Continue reading
Government’s updated strategy aims to add 10,000 jobs to Dublin ’s international financial hub When the International Financial Services Centre began life in 1987 it had just three companies, employing 55 people. If a strategy drawn up for the Government comes to fruition, some 10,000 direct net new jobs will… – Continue reading
Bond trader Ben Eiler swapped life in suburban Georgia for an island in the Caribbean, and he didn’t even have to apply for a visa. The towering 38-year-old native of Arkansas is one of at least 250 people who’ve accepted Puerto Rico’s invitation to well-heeled U.S. citizens to move to… – Continue reading
Two double taxation agreements (DTAs) involving Kenya, South Africa and Mauritius have been set back a year after Kenya failed to complete the final step in the proceeds. The DTAs between Kenya and South Africa and between Kenya and Mauritius had been signed by the three countries and were due… – Continue reading
The European Commission is currently conducting in-depth investigations into whether national tax rulings breach the EU’s competition rules. Whilst the spark for these investigations was the “Luxleaks” scandal, in December 2014 the Commission sought information from all Member States as part of a much larger campaign to attack what the… – Continue reading
The DTA between Cyprus and Iceland took effect on 1 January 2015 The new double taxation agreement between Cyprus and Iceland, which was signed on 13 November 2014, entered into force on 22 December 2014. The agreement is based on the OECD Model Convention for the Avoidance of Double Taxation… – Continue reading
As middle class flees, Puerto Rico tries luring rich people The towering 38-year-old native of Arkansas is one of at least 250 people who’ve accepted Puerto Rico’s invitation to well-heeled U.S. citizens to move to the island and enjoy life without taxes on capital gains, an enticing offer for those… – Continue reading
A New Tax on doing business in or through the UK The UK is on course to enact a new tax (the “DPT”) with extraterritorial scope which will apply to profits arising on or after 1 April 2015 and will be applied at a rate of 25% (the UK’s main… – Continue reading
The latest numbers are in and they are impressive. Since 2009, over 50,000 taxpayers with delinquent FBAR forms have come forward. Although many taxpayers are now seeking to take advantage of the IRS’ offshore account amnesty program, the IRS continues to ramp up enforcement efforts against the stragglers that ignore… – Continue reading
The latest numbers are in and they are impressive. Since 2009, over 50,000 taxpayers with delinquent FBAR forms have come forward. Although many taxpayers are now seeking to take advantage of the IRS’ offshore account amnesty program, the IRS continues to ramp up enforcement efforts against the stragglers that ignore… – Continue reading
Croatia and the UK have signed an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital gains. The Agreement was duly signed on January 15th, 2015 and it shall enter into force when both countries complete their… – Continue reading
More than half of Australia’s trade is money being sent offshore by companies to their overseas arms – with almost a third going to Singapore and Switzerland. Australian companies sent more than $100 billion to related parties in the low-tax nation of Singapore and another $15.6 billion to “hubs” in… – Continue reading
The Indonesian Employers Association (Apindo) has welcomed the government’s plan to introduce a tax amnesty, a fiscal incentive expected to encourage individuals or corporation that have not fully paid their taxes to comply with tax regulations. The association’s deputy chairman Hariyadi Sukamdani said that the amnesty would be effective in… – Continue reading
Technology giants Apple and Google have said in their submissions to the federal inquiry into corporate tax avoidance that they support international changes to global tax rules to stop profit shifting, but have warned of the risk of Australia acting alone, saying it would cost heavily in local jobs and… – Continue reading
A recent report detailing how Africa lost $US1-trillion in the last 50 years through illicit financial flows of money has raised questions about it’s abilities to curb fraud evasion and other means of corporate profit hiding. It has also sparked interest in holding multinational corporates, which are mainly responsible for… – Continue reading
Though North Korean labor more expensive than previously thought – RFA The DPRK government made agreements promoting mutual investment and preventing double taxation for foreign investors, particularly highlighting cooperation with Russia, according to an article from the Korean Central News Agency (KCNA) published this week. Governments often form tax treaties… – Continue reading
The Confederation of British Industry (CBI) has warned the UK Government that significant changes are needed to its proposed diverted profits tax legislation, to ensure that the regime does not capture genuine commercial arrangements. In his 2014 Autumn Statement, Chancellor George Osborne announced plans to levy a 25 percent diverted… – Continue reading
Beijing is going after base erosion and profit shifting, and multinationals could get caught in the crosshairs. China is continuing to step up its efforts to curb what it sees as cross-border tax evasion by foreign-owned companies, announcing it will review how companies move money and allocate costs among their… – Continue reading
The US Internal Revenue Service (IRS) has clarified that a foreign financial institution must obtain a customer’s self-certification details when opening a new account, in a new addition to its Frequently Asked Questions on its Foreign Account Tax Compliance Act (FATCA) website. The IRS was asked: If a Reporting Model… – Continue reading
On February 2, the Obama Administration released its fiscal year 2016 budget (FY 2016 Budget). The hallmarks of the FY 2016 Budget are proposals that would impose (i) a minimum tax on the current foreign earnings of U.S. corporations and their controlled foreign corporations (CFCs) and (ii) a one-time 14%… – Continue reading
HONG KONG — China’s tax officials plan to step up efforts to collect taxes from multinational corporations in the latest of a series of moves in the last year, mostly against Western companies. The activities have included police raids on the headquarters of companies’ China operations and heavy fines under… – Continue reading
New Delhi, Feb. 4: The notification of a social security deal with Norway – often called totalisation agreements — may pave the way for a similar pact with the US that has been hanging fire for a decade. Under the pact, employees sent by Indian firms to Norway on a… – Continue reading
Claims by the European Commission that UK rules make it “virtually impossible in practice” for companies to claim tax relief on losses by subsidiaries in other member states should be dismissed, the EU’s highest court has ruled.03 Feb 2015 Corporate tax EU and UK competition law EU & Competition Tax… – Continue reading
In 2014, China continued to develop its taxation system affecting domestic and crossborder transactions. This “Legal Flash – Special Edition 2014” highlights the most significant tax updates of the year. Please see our monthly legal flashes for more information and analysis here. Taking a step-forward on anti-avoidance provisions, the State… – Continue reading
The European Commission has turned a blind eye to secretive tax deals that Ireland and other countries have been doing with multinationals for decades. Only after complaints from the US did it launch investigations into the most high-profile cases — Apple in Ireland, Starbucks in the Netherlands, and Amazon in… – Continue reading
Some 776 American citizens or long-time residents renounced their status in the third quarter of 2014, according to the Treasury Department. If that trend continues, the U.S. will see more than 3,000 renunciations this year-a record. Why are so many Americans forfeiting their citizenship? In 2010, Congress passed the Foreign… – Continue reading
NATIONAL Treasury Cabinet Secretary Henry Rotich has urged counties to make taxation systems business friendly. Speaking at Leisure Lodge resort in Kwale yesterday during a county government development forum, Rotich said investors face multiple taxation in some counties. “It is very clear what the national government and counties are supposed… – Continue reading
(Bloomberg) — The European Union is investigating Belgium’s tax deals with multinational corporations, potentially dragging dozens more companies into widening probes of sweetheart fiscal pacts handed out by national governments. Building on investigations of Apple Inc. in Ireland and Amazon.com Inc. in Luxembourg, the European Commission is targeting Belgium’s so-called… – Continue reading
NEWS: Spain’s Foreign Minister said “it was fine” for Fabian Picardo to speak in Madrid: “as long as no one forces me to listen”. The Chief Minister was introduced by the British Ambassador. In a breakfast speech in central Madrid to a room filled with some 250 politicians, businessmen, diplomats… – Continue reading
Time is ticking for India to sign its inter-governmental agreement (IGA) with the US under the Foreign Account Tax Compliance Act (FATCA) after it received a one month extension on the original December 31 deadline. President Obama’s visit to India last week fuelled speculation that the IGA could be signed… – 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
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
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
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
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
