Category: Tax Laws

‘Anti-offshore’ law to bring billions back to Russian economy

Russia’s upper house of parliament has approved an “anti-offshore” law requiring individual and corporate taxpayers to report foreign profits. The Russian government aims to prevent capital outflow via “offshores,” estimated at $200 billion in 2014. The law requires Russian tax authorities to be notified of all foreign dealings. The government… – Continue reading

Inflation, Offshore Tax Law, Rostelecom: Business in Brief

Russia’s Putin Urges Action to Restrain Rising Interest Rates, Inflation President Vladimir Putin on Wednesday urged Russia’s government and the Central Bank to work together to curb interest rates and restrain surging inflation as the economy slides toward recession. “Only combined efforts by the government and Central bank and a… – Continue reading

Ex-Billionaire Wyly Bankruptcy Pits Church Against State

Former billionaire Samuel Wyly’s Dallas church is taking on the might of the U.S. government for a scrap of the businessman’s remaining fortune. Wyly, who filed for bankruptcy after losing a fraud lawsuit by the Securities and Exchange Commission, owes $20,000 to the Third Church of Christ, Scientist, under a… – Continue reading

Macquarie Group hit by Tax Office ‘U-turn’

The Tax Office denied Macquarie Group a controversial tax deduction related to offshore subsidiaries that resulted in a long-running and costly court battle, while at the same time allowing other taxpayers to claim the deductions, a report finds. A report from inspector-general of taxation Ali Noroozi, released by the government… – Continue reading

Crackdown on celebrity tax avoidance branded a failure

MPs have attacked the taxman for being too slow to crack down on controversial avoidance schemes used by celebrities and other high earners, resulting in millions of pounds being lost to the public purse. As much as £10 million may never be ­recoverable because of delays by Her Majesty’s Revenue… – Continue reading

Not doing enough being done to cut tax avoidance in UK, say MPs

LONDON: Britain’s tax collection agency is not doing enough to tackle multinational firms who use complex company structures to reduce their tax bills, a report by MPs said on Tuesday. Britain has sought to take a leading role in international efforts to reduce legal tax avoidance methods used by companies… – Continue reading

Irish Finance Bill 2014- FDI Focus

The Finance Bill 2014 (the “Bill”), which was published 23 October 2014, proposes a package of measures which focuses on Ireland’s tax rate, regime and reputation. The changes seek to reinforce Ireland’s position as a top destination for multinational companies and emphasise the importance of real and substantive foreign direct… – Continue reading

Russia Readies for Showdown Over Taxing Offshore Companies

Russia’s lower house of parliament on Tuesday took aim at the offshore holdings that have become ubiquitous in Russian business, passing in its final reading a bill that will make Russian taxpayers declare and pay taxes on their assets abroad. But once signed into law, this product of President Vladimir… – Continue reading

Hong Kong Signs FATCA IGA

On November 13, 2014, Hong Kong announced that it had signed a Model 2 FATCA IGA. Under the agreement Hong Kong financial institutions will enter into separate FFI agreements with the IRS and will report information on U.S. account holders directly to the IRS. Hong Kong indicated its intention to… – Continue reading

Mayor Boris Johnson’s Terrible, Horrible, No Good, Very Bad Day…As An American

Should London’s Mayor pay U.S. taxes? How about filing FBARs and other forms that make it easy for the IRS to track his bank accounts? London’s Mayor Boris Johnson is English, but being born in New York means he’s American too. Turns out he never gave up his U.S. citizenship,… – Continue reading

When Mega Corporations Get Mega Tax Breaks, We All Pay

Is corporate CEO pay really out of control? Well, consider Fleecing Uncle Sam, a new report from the Institute for Policy Studies and the Center for Effective Government. Of the 100 highest-paid CEOs in the US, the study finds, twenty-nine of them received more compensation than their companies paid in… – Continue reading

International Collection Efforts by the IRS – Expanding the Number of Treaties in which We Have Collection Language

The United States has treaty language that allows us to work with the taxing authorities in other countries to collect U.S. taxes owed from U.S. Citizens or their property located in those countries and to allow those countries to have IRS collect from their citizens or property located in the… – Continue reading

EC Releases Early Finding On Starbucks APA Probe

The European Commission, in an “Opening Decision” published on November 14, 2014, said that an advance tax ruling provided by the Netherlands to coffee group Starbucks appears to constitute state aid, in violation of European Union (EU) rules. In a 40-page letter to the Dutch authorities, the Commission detailed the… – Continue reading

HMRC needs freedom to settle tax claims to address case backlog, says expert

HM Revenue & Customs (HMRC) should be allowed to offer settlements to resolve existing disputes over alleged tax avoidance, an expert has said.18 Nov 2014 Litigation & International Arbitration Enforcement UK Europe Tax disputes expert James Bullock of Pinsent Masons, the law firm behind Out-Law.com, said the measure would help… – Continue reading

Spanish Tax Office clarifies anti-abuse rule applicable to dividend distributions benefiting from the EU Parent Subsidiary Directive

A recent binding tax ruling recognised that the historical background of a multinational group is a key factor in considering whether a non-EU ultimate parent should trigger the anti-abuse rule which applies to exemption from dividend withholding tax. In a nutshell, the Spanish Non Resident Income Tax Law (NRIT), provides… – Continue reading

Puerto Rico – Online reporting, payment of use tax by bonded importers reinstated and effective today

November 18:  A requirement for bonded importers to declare and pay use tax on goods imported into Puerto Rico has been reinstated and is effective today, November 18, 2014. These rules were reinstated by Administrative Determination No. 14-27 (November 6, 2014) as issued by the Puerto Rico Treasury Department. Background… – Continue reading

Final regulations – Failure to satisfy gain recognition agreements (GRAs) reporting requirements

November 18:  The Treasury Department and IRS today released for publication in the Federal Register final and temporary regulations (T.D. 9704) concerning the treatment of U.S. and foreign persons that fail to file gain recognition agreements (GRAs) or that fail to satisfy other reporting requirements associated with transfers of property… – Continue reading

29% Of Largest Corporations Pay More To CEO Than Uncle Sam

CEG says the U.S. corporate tax system is in desperate need of reform A recent report from the Center for Effective Government (Fleecing Uncle Sam) highlights that many large U.S. companies pay little to no corporate taxes, and a few even get tax rebates from the federal government. Moreover, in… – Continue reading

FATCA: Are Transnational Criminal Networks Influencing US Policy?

The New York Times’ report on prominent American think tanks receiving some $92 million from a minimum of 63 governments since 2011, prompted Rep. Frank Wolf (R-Va.) to ask Attorney General Eric Holder, a long overdue question: “Should think tanks be allowed to take undisclosed donations from foreign governments?” According… – Continue reading

Jean-Claude Juncker faces censure vote over Luxembourg tax schemes

Eureopean Union chief’s actions as prime minister of Luxembourg attacked over alleged role in creation of tax haven Jean-Claude Juncker is facing a vote in the European parliament to declare him unfit for his post as head of the EU executive because of his alleged role in turning Luxembourg into… – Continue reading

Cyprus: Cyprus India Relations – Cyprus May No Longer Be A Tax Haven For Funds Or May It?

A publication in the Economic Times has caused much debate in India since after blacklisting Cyprus for not sharing information on tax evaders, India is now looking to take away the favourable tax treatment available to investors from the European tax heaven under the bilateral tax treaty between the two… – Continue reading

G20 tax reform plan should prevent another Lux leaks

The G20 Communique is good news on the international tax reform front. As part of the G20 commitment to boost economic resilience the Communique commits G20 nations to taking action to ensure fairness in the international tax system. This means they are looking at ways to ensure profits are taxed… – Continue reading

G20 tax avoidance pledge ‘still leaves poor countries vulnerable’

Oxfam director Winnie Byanyima says what is on the table is not enough to stop poor countries being ‘bled dry’ Moves by G20 nations to tackle corporate tax avoidance are welcome but will only begin to uncover the full problem while leaving poor countries still vulnerable to exploitation, tax justice… – Continue reading

Taxman’s new take on transfer pricing will attract foreign investments

In today’s global economy, where multinational companies do business in different geographical and tax jurisdictions, the need for arm’s length pricing of related party transactions is a growing concern for revenue authorities. Tax bodies are increasingly requiring multinationals to document their related party transactions. Where these transactions are not well… – Continue reading

G20 endorses OECD tax avoidance timetable

The latest G20 leaders’ summit in Australia, which ended yesterday, has endorsed the various strands of international tax work being undertaken by the European Commission and by OECD, including work on the Base Erosion Profit Shifting (BEPS) project Prime Minister David Cameron said there had been ‘important breakthroughs’ in making… – Continue reading

MLPs Can Generate Tax Bills In Retirement Accounts

It’s a surprise to many people that MLPs generate taxable income in retirement plans requiring a tax filing and payment of taxes. Traders and investors are interested in using their IRA and other retirement plan accounts (collectively referred to as “retirement plans”) for making “alternative investments” in publicly traded master… – Continue reading

South Africa: President Zuma Wraps Up Brisbane Visit

Pretoria — President Jacob Zuma has concluded his visit to Brisbane, Australia, where he led the South African delegation to the G20 Leaders’ Summit, says the Presidency. The main outcome of the Leaders’ Summit was a commitment to lift the G20’s Gross Domestic Product (GDP) by at least an additional… – Continue reading

Beijing’s Interest in Offshore Tax Evasion Limited to Corrupt Officials

Fifty-one countries signed the Multilateral Competent Authority Agreement in Berlin on Oct. 29 to fight offshore tax fraud and evasion. The agreement aims to put an end to banking secrecy by sharing tax-related information with member states. Missing from the signatory list are the United States and China. China’s absence… – Continue reading

BEPS: G20 leaders mark ‘significant progress’

G20 leaders have made “real progress” towards ensuring that “big companies pay the tax they owe”, David Cameron said at the end of the G20 summit in Brisbane yesterday. “There are now over 92 different countries and tax authorities properly sharing information and, as the OECD set out at this… – Continue reading

Corporate Close-Up: The Burden of California’s Taxes and Fees on Limited Liability Companies

The limited liability company, or LLC, has become a popular form for organizing a business.  Using an LLC generally avoids the double layer of taxation encountered with a corporation while providing limited liability for its members, and offers more flexibility than S corporations in which corporations may not be shareholders. … – Continue reading

Businesswoman contests release of Cayman bank records

A high-profile businesswoman accused of using Cayman Islands bank accounts to dodge more than $7 million in taxes is seeking to challenge the use of information obtained by the U.S. Internal Revenue Service through a tax information exchange request. Cheryl Womack, a Kansas City businesswoman who has a home and… – Continue reading

Nigeria: Still On the Taxation of Foreign Companies Operating in Nigeria

IN July 2014, the Federal Inland Revenue Service (FIRS) sent letters to some tax consultants requesting their non-resident clients operating in Nigeria to file complete tax returns effective from 2014 tax year. In practice, non-resident companies file their tax returns on the deemed profit basis. Following an initial period of… – Continue reading

Benelux-China legal update

Recent months saw various important developments that are relevant to Sino-European trade and investment. These include (i) changes to the EU Parent-Subsidiary Directive, (ii) the entry into force of the double tax treaty between Luxembourg and Taiwan, and (iii) proposed changes to China’s Foreign Investment Catalogue and the Governmental Verifications… – Continue reading

India economy not yet mature for GAAR: ASSOCHAM

Apex industry body ASSOCHAM has urged the Centre to amend the Indian income-tax law so as not to introduce the general anti avoidance rules (GAAR) from assessment year 2016-17 as India’s economy is neither mature enough to stand up to its exacting standards nor is the tax administration ready to… – Continue reading

Greek Ministry of Finance issues templates and guidelines for advance pricing agreement negotiations

ITR Correspondent In an effort to provide taxpayers with an integrated procedural framework for the negotiation of advance pricing agreements (APAs), the Greek Ministry of Finance recently released template application forms for both preliminary consultations and formal negotiations, as well as additional guidelines on the overall APA procedure. The forms… – Continue reading

Global tax avoidance crackdown has broad support – Bill English

There is broad global support for moves to curb international tax avoidance, says Finance Minister Bill English, on the sidelines of the G20 Leaders’ Summit in Brisbane. Cracking down on tax avoidance is one of the key agenda items at this weekend’s G20 Summit, where New Zealand is an invited… – Continue reading

G-20 leaders agree on $2 trillion boost to growth

BRISBANE, Australia — Under pressure to jolt the lethargic world economy back to life, leaders of G-20 nations on Sunday finalized a plan to boost global GDP by more than $2 trillion over five years. The fanfare, however, was overshadowed by tensions between Russian President Vladimir Putin and Western leaders…. – Continue reading

G-20 set for ‘very aggressive’ crackdown on tax avoidance

BRISBANE: Australia has vowed a “very aggressive” crackdown on tax avoidance at weekend G-20 talks, as a row rages over Luxembourg’s sweetheart arrangements with multinationals. Closing corporate tax loopholes and endorsing a common reporting standard to increase transparency are set to be a primary focus of the G-20 summit in… – Continue reading

Cost-benefit analysis puts corporate tax avoidance in perspective

The growing crackdown on tax avoidance risks ushering in a broader suppression of international tax competition, harming the interests of all taxpayers. An inevitable consequence of economic globalisation is that supply chains and financial linkages have become dispersed across geographic space, and producers now strive to provide customers with quality… – Continue reading

Which offshore financial centre is the best?

Expats have a range of choices – so how do they find a safe home for their assets? The traditional use of offshore centres as a way of enabling better tax planning – and even tax evasion – has all but fallen away. An increasing desire for countries to share… – Continue reading

OECD sees competition heating up once tax havens shut down

(AFP) The OECD Friday forecast competition heating up among countries wanting to attract revenue from big digital companies like Apple and Google, even as a row rages over Luxembourg’s arrangements with multinationals. Closing corporate tax loopholes and endorsing a common reporting standard to increase transparency are set to be a… – Continue reading

German Federal Fiscal Court decides on treatment of hybrid entities under the German-US double taxation treaty 14 November 2014

Hybrid entities have long been a tool for corporate tax planning. While tax authorities have fought the use of such hybrid mismatches for tax planning purposes, national efforts to prevent the use of hybrid mismatches have not proven to be very efficient, explain Michael Graf and Timothy Santoli, of Dentons… – Continue reading