Cyprus and Iceland have signed a double taxation agreement based on the OECD Model Convention for the Avoidance of Double Taxation on Income and on Capital, the Finance Ministry said in a statement on Friday. By signing this agreement both countries aim to strengthen their trade and economic relations. “Updating,… – Continue reading
Seventy percent of corporate tax professionals said they favor lowering the U.S. corporate tax rate, even if that means their companies would have to give up tax loopholes, according to a new study. The study, released Thursday by the Tax & Accounting business of Thomson Reuters, gauged the opinions of… – Continue reading
BRUSSELS — European Union authorities have accused the Netherlands of making a special deal with Starbucks that helped the company lower its taxes, creating unfair advantages over other countries in the bloc. The report by the bloc’s competition authority, made public on Friday, is a preliminary finding in a review… – Continue reading
The LuxLeaks scandal is a classical example of the growingly frequent clash between the level of integration of the European economy (and the global for that matter) and the national sovereignty. Greece was first to prove that four years ago when it put to the test the very survival of… – Continue reading
BRUSSELS, Nov. 13 (Xinhua) — European Commissioner for Economic and Financial Affairs, Taxation and Customs Pierre Moscovici vowed on Thursday to push forward fight against tax evasion and raise the bar for tax good governance in Europe. “It is clear that we need to take a more systematic approach to… – Continue reading
Multinational tax avoidance risks losing citizens’ trust, says Joe Hockey G20 working on ‘important reforms which will significantly improve the integrity of the tax system’, Australian treasurer says The Australian treasurer, Joe Hockey, has warned that citizens will lose trust in the legitimacy of their governments if multinationals are allowed… – Continue reading
The Swiss Federal Council has adopted dispatches on five double taxation agreements, which will now be submitted to Parliament for approval. The treaties with Estonia, Ghana, Iceland, and Uzbekistan either replace or revise the current deals, while the agreement with Cyprus is Switzerland’s first with the territory. All of the… – Continue reading
Taipei, Nov. 14 (CNA) Taiwan and Canada have concluded negotiations on an agreement to avoid double taxation and are expected to sign the pact soon, President Ma Ying-jeou said Friday. Ma said during a meeting with visiting Canadian parliamentarians that Taiwan hopes to ink further bilateral agreements including an investment… – Continue reading
TAIPEI, Taiwan — The Financial Supervisory Commission’s (FSC, 金管會) chairman Tseng Ming-chung (曾銘宗) met with the U.S. treasury from Nov. 2 till Nov. 5 and signed an Intergovernmental Agreement (IGA) under the Foreign Account Tax Compliance Act (FATCA) that will see Taiwanese financial institutions directly providing 4,273 Taiwanese green-card holders… – Continue reading
Y20 head on youth unemployment mission Countries may have to battle for revenue from digital companies once the global plan to stop tax avoidance succeeds, says the OECD’s head of tax Pascal Saint-Amans, but at least they now have something to fight for. In an exclusive interview with Fairfax Media… – Continue reading
November 14: The European Commission (EC) today released a “non-confidential version” of its June 2014 EC decision to open an in-depth investigation concerning whether certain transfer pricing arrangements of a multinational entity with the Dutch tax authorities constitute state aid that is contrary to EU law. The investigation is identified… – Continue reading
Brisbane (Australia) (AFP) – The Organisation for Economic Co-operation and Development on 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… – Continue reading
MUMBAI: In the first ever ruling relating to taxation of black money stashed in overseas tax havens, the Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has given the taxman a lot to cheer. Funds aggregating $2.4 million (Rs 11.73 crore approximately) as of December 31, 2001, held in… – Continue reading
A WHISTLEBLOWER claimed former Tanaiste Mary Harney “shut down” his investigation into allegations of offshore tax evasion after he uncovered the names of senior politicians in the Progressive Democrats, Fianna Fail and Fine Gael, the Dail has heard. It is the first time Ms Harney’s party, the now defunct PDs,… – Continue reading
The Cayman Islands is touted as one of the world’s top 10 finance hubs. The chief reason that the Caribbean hotspot holds such cachet is an epic perk it provides – freedom from income tax. twitter To get more Money more often, why not follow us on Twitter? We’re @FairfaxMoney… – Continue reading
The Federal Board of Revenue (FBR) has proposed that no exemption whatsoever from withholding tax under Eighth Schedule (Capital Gains Tax) of the Income Tax Ordinance 2001 is available to foreign institutional investors either on the basis of avoidance of double taxation treaties or for any other reason. Through an… – Continue reading
NEIL CHENOWETH Global accounting firm PwC was advising the Australian Taxation Office how to run its transfer pricing unit at the same time that its Luxembourg office was cutting favourable tax agreements for Australian companies. Luxembourg documents show PwC obtained secret tax agreements for more than 30 Australian companies in… – Continue reading
To help in its efforts to crack down on suspected black money stashed abroad, India has entered into an information exchange pact with Saint Kitts and Nevis, a two-island Carribean country, perceived as a safe haven for offshore funds. The agreement was signed by India’s Permanent Representative to the UN… – Continue reading
Why does Stephen Mandel, the newly minted Minister of Health, think it’s a good idea for Alberta taxpayers to support the lifestyles of wealthy Australian businessmen who earn more than $13 million a year; their executive teams who get ridiculous bonuses and stock options; and the Australian economy as a… – Continue reading
The ability of multinational companies to shift profits into low-tax jurisdictions is undermining governments’ ability to raise revenue. But the cross-border policy solutions are complex. Curbing international tax avoidance has become a focus of G20 discussion this week, after last week’s revelation that major companies including Ikea, AMP and Pepsi… – Continue reading
THE WORLDWIDE increase in digital commerce has alerted many countries to the unique tax challenges it presents. Facing up to tax challenges in the age of digital economy THE WORLDWIDE increase in digital commerce has alerted many countries to the unique tax challenges it presents. There is now a common… – Continue reading
Members of the European Parliament called for action on tax avoidance in Europe on Wednesday. A report released earlier this month by the International Consortium of Investigative Journalists documented secret deals arranged with multinational corporations, enabling them to avoid paying tax in Luxembourg. Hundreds of major corporations like Pepsi, IKEA… – Continue reading
The General Court of the European Union has ruled in Spain’s favor regarding the country’s use of tax breaks to support companies acquiring foreign shareholdings. According to the Spanish law on corporation tax, where a company which is taxable in Spain, acquires a shareholding in a “foreign company” of at… – Continue reading
Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, Acting Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the indictment of MARTIN DUNKI, a former client advisor and Senior Vice… – Continue reading
Ed Balls said Labour will bring in tough penalties to deter people from tax avoidance if they get into power at the next general election. Labour will impose fines of up to 100% of the value of the avoided tax, said the shadow chancellor. As it stands, those who are… – Continue reading
The British Virgin Islands (the “BVI”) has now enacted legislation which allows for the implementation of its commitments under the Model 1B (i.e. non-reciprocal) intergovernmental agreements with the United States, signed on 30 June 2014, (the “US IGA”) and with the United Kingdom, signed on 28 November 2013, (the “UK… – Continue reading
Taipei, Nov. 13 (CNA) Taiwan’s financial authorities have found that there are 4,273 bank accounts in Taiwan whose holders are obligated to report assets to the United States tax authorities, Taiwan’s top financial regulator said Thursday. Tseng Ming-chung, chairman of the Financial Supervisory Commission, said most of the account holders… – Continue reading
Proposals to extend capital gains and investment income tax exemptions under Portugal’s Non-Habitual Residents Tax Regime have not been passed, say government officials It seems that the Portuguese government has shelved plans, at least for 2015, to extend capital gains and investment income taxation exemptions. However, officials say they are… – Continue reading
IRS announces relief for accounts opened recently by non-residents aliens Jeffrey S. Freeman, J.D., LL.M notice on October 16, 2014 (Notice 2014-59, 2014-44 IRB) the IRS announced changes to the temporary regulations issued earlier this year under the Foreign Account Tax Compliance Act (FATCA). The changes provide relief from withholding… – Continue reading
The departure of a multi-national giant from Manx shores will have no effect on our VAT revenue share, Treasury chiefs insist. As an Isle of Man Examiner investigation revealed back in January 2011, Procter & Gamble’s unassuming office at Brewery Court in Castletown was the unlikely hub of a global… – Continue reading
KOCHI: Minister for Non-Resident Keralites Affairs (NORKA) K C Joseph has urged the Central Government to withdraw the service tax imposed on foreign remittances as it would impact the hard-earned savings of non-resident Keralites (NRKs). In a letter sent to Union Finance Minister Arun Jaitley, he said that the NRKs… – Continue reading
Mitsui, Toyota and Marubeni are likely to be among Japanese companies that would sign the first set of bilateral advance-pricing agreements (APA) with India shortly. These agreements will provide certainty to Japanese multinational firms operating in India and avoid conflicts over sharing of taxes between India and that country. Two… – Continue reading
New Delhi: Absence of criminal legal treaties between India and tax haven nations have been cited by probe agencies working in the SIT on black money as one of the major impediments in initiating steps to bring back illegal funds stashed abroad by Indians. These agencies, including the Central Board… – Continue reading
NGO report calls for central listing of beneficial owners of EU firms and trusts The European Union should introduce a centralised public register revealing the identities of beneficial owners of companies and trusts, according to a pan-European report to be published today. Hidden Taxes: the EU’s Role in Supporting an… – Continue reading
MINSK, 12 November (BelTA) – Belarus President Alexander Lukashenko has approved a draft intergovernmental agreement between Belarus and Georgia on avoidance of double taxation and prevention of evasion of income and capital taxes as a basis for further talks, BelTA learned from the presidential press service. The Ministry of Taxes… – Continue reading
The European Union’s 28 member states are seeking agreement on the proposed introduction of a common anti-abuse clause in the Parent-Subsidy Directive (2011/96/EU). The plans were discussed at a meeting of the EU’s Economic and Financial Affairs Council (ECOFIN) on November 7, 2014. The proposed anti-abuse clause would allow member… – Continue reading
Sears Holdings and Pinnacle Entertainment have become the latest US companies to announce that they are considering establishing real estate investment trusts (REITs), to unlock tax advantages that have been considered by some companies as an alternative to a corporate inversion. REITS do not pay corporate tax as long as… – Continue reading
Spain negotiated the largest rate reductions in its tax treaties with developing countries, out of 15 EU nations scrutinised for their record on international tax-dodging in the wake of the Luxembourg Leaks scandal. Developing countries were missing out on billions of much needed-revenue as a result of the tax rate… – Continue reading
HCMC – Foreign exchange control is a paramount concern of all foreign investors entering into Vietnam, as regulations on capital inflows and outflows have a great influence on operations and profit. Foreign exchange control includes transferring capital into and out of the country, opening and using bank accounts, borrowing foreign… – Continue reading
THERE IS NO single policy or solution that can prevent the occurrence of tax avoidance because there is no single cause for the phenomenon, according to Devereux Tax Chambers barrister Jolyon Maugham. Speaking at the ICAEW’s Hardman Lecture, Maugham told the institute’s members that “plugging holes” in the tax code… – Continue reading
November 12: Danish companies subject to Danish corporate income tax generally must withhold tax at a rate of 27% on dividend distributions, but the rate of the withholding tax may be reduced to 15% when dividends are distributed to Danish domiciled investments funds that are known as “IMBs” (i.e., investment… – Continue reading
According to Bill Thompson, tax partner at Minter Ellison, Base Erosion and Profit Shifting (BEPS) — the base erosion referred to as the tax base and its implications for future tax structures — will be a key focus at the G20 Summit in Brisbane, with possible rapid changes to the… – Continue reading
Argentine authorities say they have found a tax haven for luxury cars near one of the world’s largest deposits of shale oil and gas. Tax agents in Buenos Aires province said Wednesday that evaders have registered some 20,000 cars near the Vaca Muerta (Dead Cow) deposit in Neuquen province. The… – Continue reading
Legal advice to the Public Accounts Committee has highlighted several obstacles to any investigation into the dossier alleging tax evasion by some former politicians. Following a private meeting this evening, PAC Chairman John McGuinness said he must now study the options open to the committee. He said none of them… – Continue reading
The UK has agreed to put forward a proposal to close its patent box tax break, which allows income from the commercial exploitation of intellectual property (IP) to be taxed at 10%, in a concession to German concerns about artificial shifting of profits between European countries.12 Nov 2014 Intellectual Property… – Continue reading
In March 2014 the Russian Ministry of Finance published a draft anti-offshore law which is currently submitted for consideration by The State Duma (parliament) with the decision expected to be made by the end of 2014. Russia is aiming to clamp down on the use of foreign offshore tax shelters… – Continue reading
Australia – Transfer pricing reconstruction not limited to “exceptional circumstances” November 12: The Australian Taxation Office (ATO) today finalised a transfer pricing ruling that sets forth the Commissioner’s position on application of the reconstruction provisions, as outlined in section 815-130 of the Income Tax Assessment Act 1997. The ruling—TR 2014/6—covers… – Continue reading
The European Union should harmonize tax practices better to counter the sweet deals that countries like Luxembourg have used to attract multinationals and the super-rich, the EU’s executive chief said Wednesday. European Commission chief Jean-Claude Juncker denied allegations that he was part of the problem since he had been prime… – Continue reading
The C20 (Civil Society 20) is calling on G20 leaders to take action this weekend to improve the lives of the most vulnerable in society. C20 chair Tim Costello said the group was looking for an outcome on Sunday that clearly demonstrates G20 leaders’ commitment to fairness by taking concrete,… – Continue reading
Treasurer Joe Hockey has made tax avoidance by the world’s largest companies one of the cornerstone issues for discussion by the world’s most powerful leaders at the G20 summit in Brisbane this week – but it appears he still has some way to go to convince those closer to home… – Continue reading
