Category: Residence

Black money: Swiss automatic info exchange pact with India in works

With the Swiss government signing a landmark Automatic Exchange of Information (AEOI) agreement with the European Union (EU) last week, efforts are underway for a similar bilateral pact with India. The effort, which is expected to provide a strong impetus to the Narendra Modi government’s pitch to combat the black… – Continue reading

deVere: Presidential candidates owe it to America to explain their stance on controversial FATCA

Presidential candidates must come clean on America’s highly controversial global tax law – and more must urgently be done to repeal it, not least because it is “a blue print for worse to come”, warns the boss of one of the world’s largest independent financial advisory organisations. Nigel Green, founder… – Continue reading

Is it US taxable income? Unintended consequences when US residents receive assets from their family’s foreign corporations

It is not uncommon for affluent families from certain countries to maintain offshore structures to hold a portion, and often times a significant portion, of their wealth. The reasons for holding assets outside of their country of residence are many, and such assets are frequently held in foreign corporations. As… – Continue reading

Tax Planning And Portugal’s Non Habitual Residence Scheme

Portugal can be a very attractive country to live in from a tax point of view. The inheritance tax regime is very benign here, and there is no wealth tax. Tax efficient arrangements can lower tax liabilities on your investment and pension income. And if you are a new resident,… – Continue reading

Mexico: Risks And Opportunities From A Mexican Tax Perspective

Investments Derived From Structural Reforms The approved structural Reforms are an unprecedented opportunity for a transformational economic growth in Mexico, being the most relevant from an investment point of view the reforms related to Energy, Telecommunications and Antitrust, which have put Mexico in the radar of Multinational companies seeking to… – Continue reading

US Model Tax Convention Changes To Tackle Inversions

On May 20, 2015, the US Department of the Treasury released for public comment draft updates to the US Model Income Tax Convention, including provisions to deny treaty benefits to companies that change their tax residence via inversion transactions. The Treasury said other changes are intended to ensure that the… – Continue reading

Switzerland: Landmark Judgments Regarding The Refund Of Swiss Withholding Tax

INTRODUCTION On May 5, 2015 the Swiss Federal Supreme Court held a public hearing about two cases relating to the reclaim of Swiss withholding tax (WHT) in connection with arbitrage cases and issued its long awaited decisions. Two Danish banks issued the question on treaty entitlement for the refund of… – Continue reading

New Challenge to Tax Planning: Morality and Politics Are Now In Play

In 1934, a distinguished American jurist, Judge Learned Hand, famously opined that “one may so arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to… – Continue reading

A Corporate Governance Give-Away to Tax Inverters?

In July 1997, Tyco International (with then Wall St darling Dennis Kozlowski at the helm) was “acquired” by a relatively small provider of home security services, known as ADT Inc. The deal arguably exploited some strategic synergies between the two companies, but far and away the biggest benefit to Tyco… – Continue reading

Chairman Royce, Rep. Pallone welcome US-Amenia Trade & Investment Framework Agreement

The advantages of off-shore investments Two of the top reasons that South African investors are given to encourage offshore investments are that going offshore diversifies your portfolio and that it gives you access to sectors you could never find on the resource-heavy JSE. “While those are not reasons to be… – Continue reading

US Bill Would Simplify Multistate Workers’ Taxation

The bipartisan Mobile Workforce State Income Tax Simplification Act, which which would simplify tax reporting requirements for those workers employed in multiple state US jurisdictions, has been introduced into the House of Representatives by Hank Johnson (D – Georgia) and Mike Bishop (R – Michigan). States currently have widely varying… – Continue reading

Indian move to check illegal capital outflows

THE BJP-led National Democratic Alliance government, which had made a lot of noise about black money and the illegal stashing of funds abroad in the run-up to general elections last year, finally got down to some serious work to tax ill-gotten wealth and curb its growth. Last week, the government… – Continue reading

UK: Non-UK Domiciliaries: Inheritance Tax Issues And Opportunities

This note is intended as an introduction to inheritance tax (IHT) issues that need to be covered where a “non-dom” (an individual domiciled outside the UK) is planning on becoming resident in, or is already resident in, the UK. It should be emphasised that this is a complex subject, and… – Continue reading

Uruguay – South America’s Best Kept Secret

“Uruguay has now definitely earned its long-time nickname — the Switzerland of Latin America.” That’s what I wrote several months ago during my first visit to this small, south Atlantic costal country wedged between Brazil and Argentina. For the last week, I have been enjoying my second visit to Uruguay,… – Continue reading

Setting standards

Shayne Nelson, Chief Executive Officer of Emirates NBD, muses how corporate governance, risk and compliance have changed beyond recognition since he first came to the region. Shayne Nelson has seen a lot of change in his extensive banking career, which has spanned several continents. With roles including Chairman of Standard… – Continue reading

Government to revise tax treaty with South Korea

NEW DELHI: Ahead of Prime Minister Narendra Modi’s visit to South Korea this month, the Cabinet today approved revising the double tax avoidance pact with Seoul to provide tax stability and facilitate flow of investment and technology between the countries. The Cabinet headed by the Prime Minister gave its approval… – Continue reading

India: Clarification With Respect To Applicability Of Explanation 5 To Section 9(1) On The Dividend Declared By Foreign Company

The Central Board of Direct Taxes [CBDT] on 26th March 2015 issued a Circular no. 4/2015 wherein they have clarified that while interpreting the provisions of Section 9(1)(i) of the Income Tax Act, 1961 [herein after referred to as ‘Act’] read with Explanation 5 inserted to the said section by… – Continue reading

New tax rules proposed for e-commerce transactions

In the 2015 Budget Speech presented to the National Assembly on 25 February 2015 the Minister of Finance announced that amendments will be proposed to change the rules for the digital economy in line with the latest guidance issued by the Organisation for Economic Co-operation and Development (“OECD”) in its… – Continue reading

BEPS – Historic Reforms

The OECD/G20 Base Erosion and Profit Shifting (BEPS) Project is changing the international tax landscape by building a new international consensus on how to tackle BEPS. In September 2014, the first seven of the deliverables under the 15-point BEPS Action Plan were presented to G20 Finance Ministers when they met… – Continue reading

A tax headache is looming if Scotland gets more powers from Westminster

Most people have heard of the Organisation for Economic Co-operation and Development (OECD) and are probably aware it wants to make the world a “better” place. Its work is probably of little interest to most companies based in the UK. But this would change if constitutional arrangements between Scotland and… – Continue reading

Paying Taxes in Greece; Non-Resident Income Tax Return

Athens: Greek authorities arrested one of the most important businessmen in the country, Leonidas Bobolas on Wednesday, for tax evasion. He was released later after paying €1.8 million in back taxes. This is just one of the Greek government’s attempts to collect money from tax evaders. In Greece, income tax… – Continue reading

Non-resident income tax regime brought in line with European Union law

Starting with 1 June 2015, non-resident taxpayers earning interest income from Romania are allowed to apply the same tax treatment as resident taxpayers. The change in the law results from a European Commission infringement procedure against Romania regarding the discriminatory treatment applied to non-resident legal entities compared to resident taxpayers…. – Continue reading

Americans abroad need tax justice too

“Why are we doing this to folks? Why are we tormenting them in this way?” IRS Taxpayer Advocate Nina Olson asked in an address to Securities Industry and Financial Markets Association FATCA Policy Symposium in Washington last year. These “folks” are Americans living abroad: NGO workers, English teachers, physicians, taxi… – Continue reading

Rupee Rises for a Second Day as Global Funds Buy Indian Bonds

India’s rupee rose for a second day as the dollar weakened and global funds resumed purchases of local bonds after the government sought to clear uncertainties over a retrospective tax on capital gains. Overseas funds bought a net $130 million of local-currency notes on April 24, the latest figures show,… – Continue reading

Canada: Tax Measures Impacting Employers – Canadian Federal Budget 2015

Yesterday afternoon, the Canadian government tabled the 2015 Canadian Federal Budget. Two measures are particularly relevant to certain employers. Withholding Relief for Non-Resident Employers and Employees To take effect next year (if the measure is enacted), Budget 2015 proposes an exemption from certain withholding requirements on payments from “qualifying non-resident… – Continue reading

Lottery credit audit may affect property tax bill

Fond du Lac County Treasurer’s Office is notifying the public that the Wisconsin Department of Revenue is auditing the 2014 Lottery and Gaming Credits claimed within Fond du Lac County. The Treasurer’s Office has mailed information to those individuals who may be affected by this audit. Those individuals are asked… – Continue reading

The “Netflix tax” – coming to a country near you

The arrival of Netflix in Australia has brought into sharp relief the GST base erosion problem caused by global digital commerce. Along with the non-taxation of low-value imported goods, the absence of GST on services and digital products imported by consumers represents an omission from the tax base that is… – Continue reading

Malta: Business, Investments And Residency Opportunities!

TL: What are the main considerations and advantages for doing business in Malta? AB: Malta’s positive approach to business promotion, development and standard of living within the EU makes the island a destination of choice for relocation of business purposes. Malta offers noteworthy benefits to individuals and investors who are… – Continue reading

Taxpayer Advocate Urges IRS to Ease FATCA Rules for Americans Abroad

Doing so would get rid of ‘overlapping and duplicative disclosure requirements,’ says advocacy group for Americans abroad The IRS’ taxpayer advocate is urging the tax service to simplify rules for Americans living overseas. Currently, foreign bank accounts must be reported both to the Treasury, in a Report of Foreign Bank… – Continue reading