Category: Fees

Bermuda: Chambers Private Wealth 2019: Bermuda (2019)

1. Tax1.1 Tax regimes In Bermuda there is no income or profits tax, withholding tax, capital gains tax, capital transfer tax or inheritance tax. There is no exit or similar such tax based on a resident's wealth when ceasing to be resident and there are no other consequences of leaving the jurisdiction. Customs duties and stamp duty are major government revenue earners, with stamp duties charged at different rates and in different manners on a variety of legal documents, excluding wills. ... - Continue reading

Has the New Inland Revenue Act paralysed the Double Tax Treaty Network of Sri Lanka? Part 2

7.What are Mutual Administrative Assistance Agreement (MAAAs) The new IRA defines the “Mutual Administrative Assistance Agreement” to mean a tax information exchange agreement or other international agreement for mutual administrative assistance in relation to taxation matters. Section 75 (5) of new IRA “Mutual administrative assistance agreement” means a tax information… – Continue reading

IRS loses lawsuit over PTIN fees, suspends PTIN system, and may be forced to refund preparers

A federal district court has ruled in favor of tax preparers who filed a class-action lawsuit against the Internal Revenue Service over its right to charge fees for Preparer Tax Identification Numbers, and the IRS may need to refund hundreds of millions of dollars in fees collected each year. In… – Continue reading

License barrier as of January 2018: Limited tax deductibility for cross license order royalty payments to foreign related parties

Germany will introduce “license barrier rules” as of January 2018. The new rules will limit the tax deductibility of license fees or royalty payments to foreign related parties that benefit from preferential regimes (“Patent Box”, “IP-Box”, “License Box”) which are incompatible with the “OECD nexus approach” (“unqualified preferential regimes”) (sec…. – Continue reading

Tackling tax evasion vital in current economic conditions — experts

AMMAN — Addressing tax evasion efficiently has become of vital importance to the state budget and the overall economy in light of Jordan’s current economic conditions, experts agreed on Saturday. Participants in a panel, organised by the Jordan Transparency Society, agreed on the need for stricter inspections and more awareness… – Continue reading

Government introduces bill to establish ITA as a statutory body

New legislative proposals aim to establish the BVI International Tax Authority (ITA) as a fully fledged independent government institution in the British Virgin Islands with its own legal personality, giving it autonomy over the performance of its functions. The ITA was initially established within the Ministry of Finance to administer… – Continue reading

Operators blame multiple taxation for poor performance of domestic airlines

The Airline Operators of Nigeria (AON) has blamed the poor performance of domestic airlines on multiple taxation by various agencies in the aviation sector. Capt. Nogie Meggisson, Chairman, AON, made the claim on Sunday in Lagos while reacting to the takeover of Arik Air and Aero Contractors by the Asset… – Continue reading

‘We do not avoid tax’ insists Facebook

Facebook Ireland yesterday declared “we do not avoid tax” as revenues and pre-tax profits soared to record levels. New accounts show that Facebook Ireland Ltd’s corporate tax bill of €16.53m for 2015 represented only a tiny fraction of its record revenues of €7.89bn. The 63pc – €3bn – increase in… – Continue reading

McDonald’s to scrap Luxembourg tax structure

Fast-food chain’s reorganisation means £800m from restaurants in Europe will flow through the UK instead McDonald’s is to scrap its controversial Luxembourg tax structure in a corporate shakeup that means $1bn (£800m) of income from fast-food restaurants across Europe will flow through the UK instead. The move comes 12 months… – Continue reading

UK – FIRMS RESPOND WITH CONCERN OVER PUBLISHED IR35 PUBLIC SECTOR REFORMS

Draft legislation for the public sector IR35 reforms was published yesterday and several firms have responded concernedly to the publication of the documents. IR35 legislation reforms were proposed recently during the Autumn Statement. Julia Kermode, chief executive of The Freelancer & Contractor Services Association, commented on the publication of the… – Continue reading

Implementation of Common Reporting Standard in Hong Kong – Implications for Family Trust with a Private Trust Company as Trustee

The Organization for Economic Co-operation and Development (OECD) issued the Standard for Automatic Exchange of Financial Information in Tax Matters (Standard for AEOI) in July 2014, which aims to prevent offshore tax evasion and maintain the integrity of tax systems. Over 100 jurisdictions have committed to comply with the Standard… – Continue reading

French Panel Adopts ‘Google Tax’ on Diverted Profits

Big U.S. internet companies in France could get hit by a new BEPS-inspired penalty on “diverted profits” under a so-called Google tax measure that France’s National Assembly is set to consider next week. The amendment, proposed by Socialist Deputy Yann Galut and adopted by the Assembly’s finance committee, targets foreign… – Continue reading

Americans Are Renouncing Citizenship Over FATCA Tax Law, Not Donald Trump

The number of individuals who renounced their US citizenship for Q-3 of Y 2016 was the 2nd-highest in history at 1,380, US Treasury Department reported. The Foreign Account Tax Compliance Act (FATCA), which enacted in Y 2010, and took years to implement, is “having an impact, perhaps bigger than these… – Continue reading

Fourteen football clubs to stand trial before the sports tribunal on tax evasion’s charges

The investigation, dubbed “Offside,” was launched three years ago and conducted by Naples Public Prosecutor’s Office. The alleged offense was criminal association aimed at tax evasion. Now that the sports prosecutor has completed the investigation, the first results are emerging. Fourteen football clubs will stand trial before the sports tribunal… – Continue reading

Vietnam Set to Update Transfer Pricing Thresholds from 2017

Vietnam’s Ministry of Finance released a draft circular on October 11th which, if passed, is set to become the largest change to transfer pricing (TP) regulation since the implementation of Circular 66/2010/TT-BTC in 2010 – which the draft updates. Touching on conditionality of TP exemption and thresholds for defining related… – Continue reading

India-Korea DTAA notified, capital gains to be taxed at source

India has notified the revised double tax avoidance agreement with South Korea under which capital gains tax will be levied at the source with effect from April 1, 2017. The existing Double Taxation Avoidance Convention, which has been in vogue for three decades, provides for residence-based taxation of capital gains… – Continue reading

Guilty by association

All involved in tax avoidance schemes will be penalised HMRC has recently published a consultation document, ‘Strengthening Tax Avoidance Sanctions and Deterrents: A discussion document’ which proposes sanctions aimed at everyone involved in the birth of tax avoidance schemes which are defeated by HMRC. This follows the government’s announcement at… – Continue reading

Belize offshore secrecy ill at ease with UK politics and US authorities

How US tax inspectors fear firms and individuals are using Lord Ashcroft’s bank to hide assets and evade tax It was a stern message David Cameron took with him on his visit to the Caribbean last September: “If we’re to beat corruption, we need transparency.” And some in the region… – Continue reading

Practically Untouchable: Going Offshore Still Has Benefits

THE RECENT LEAK of millions of documents from Panamanian law firm Mossack Fonseca served as a reminder of what wealthy Americans should already know: Hiding assets offshore can be risky and hiding them from Uncle Sam is a crime. Yet law-abiding folks continue to stash money offshore for reasons that… – Continue reading

After Mauritius, now government wants to amend Dutch tax treaty; asks Netherlands to resume talks

India has asked the Netherlands to resume negotiations on amending their bilateral tax treaty as the government extends its efforts to plug loopholes in such accords to curb misuse. The Dutch tax treaty , which allows exemption from capital gains and a lower rate of tax on dividends, has led… – Continue reading

Being Named In The Panama Papers Doesn’t Mean You Broke the Law

The Panama Papers have recently drawn a great deal of investigation and public attention. Over 230,000 organizations and individuals were named as having set up offshore companies in tax haven like the British Virgin Islands, Panama, the Cayman Islands or the Bahamas. The public’s initial reaction was suspicion and anger toward… – Continue reading

China plans to get tough on corporate tax evasion

China is joining an international effort to tackle tax evasion, with plans to require multinationals to disclose more detailed information on their overseas affiliates, according to taxation consultants who advised the government on the new rules. The proposed regulations would make it more difficult for large companies to avoid taxes… – Continue reading

India gearing up to apply Mauritius tax treaty fix to double taxation avoidance accord with Cyprus

NEW DELHI: Now that loopholes in the tax treaty with Mauritius have been plugged, the Indian government is gearing up to apply the same fix to its accord with Cyprus. Talks to amend the double taxation avoidance treaty are at an advanced stage and the two sides will soon exchange… – Continue reading

Tax havens accuse US of ‘hypocrisy’ over tax avoidance

A group of tax havens have accused larger countries like the United States of “hypocrisy” when it comes to cracking down on tax avoidance. With the issue of offshore finance high on the agenda in light of the fall out from the so-called Panama Papers scandal, world leaders convened in… – Continue reading

China airs plan to help close multibillion-dollar corporate tax loophole

Authorities answer OECD call to clamp down on corporate grey area of internal transfer pricing with proposal for tougher reporting standards China is mulling plans to tighten tax reporting requirements on multinationals operating in the country to help close a ¬massive global loophole. If the plan goes ahead, multinationals would… – Continue reading

Bank account requirement makes it tougher to pay tax in NZ: expert

A change to our tax rules aimed at foreign property investors is likely to affect many people, a tax expert says. A bill poised to be passed by Parliament this week may increase the red tape for anyone based overseas doing taxable business with this country. The Taxation (Residential Land… – Continue reading

LuxLeaks whistleblower trial begins in Luxembourg

The former PwC employee turned whistleblower behind the LuxLeaks scandal that implicated Luxembourg in industrial tax avoidance went on trial in the tiny European duchy on Tuesday. Antoine Deltour, 30, a former auditor at global accounting firm PwC, is accused of stealing documents from his employer before he quit the… – Continue reading

Scottish residents will be blocked from dodging higher taxes, HMRC says

Is there a serious risk that Scotland’s tax revenues would be hit hard by people fleeing south to avoid the new top rates of tax advocated by Labour or the Scottish Greens? HM Revenue & Customs is not convinced that there is. With a new Scottish rate of income tax… – Continue reading

Communications Tax: Experts Decry New Burden On Industry

In the last few weeks, a proposed communications service tax which sought to tax voice calls, SMS, MMS, Data and Pay TV used by subscribers has dominated the telecommunications space since it was presented as a bill before the national assembly with Nigerians describing it as another way of exploiting… – Continue reading

New APA regime announced for Ireland

Ireland recently announced it will introduce a formal advance pricing agreement (APA) programme this year. Ireland has accepted and concluded bilateral APAs for many years although there have been no formal procedures to initiate an APA in Ireland. However, in light of comments made by an Irish Revenue official at… – Continue reading

Seychelles and Mauritius Financial Regulators Start Cooperation

The financial watchdogs of Mauritius and the Seychelles have joined together in a Memorandum of Understanding. The Financial Services Commission of Mauritius (FSC Mauritius) and the Financial Services Authority of the Seychelles (FSA) have announced the signing of a Memorandum of Understanding (MoU) at the beginning of March. According to… – Continue reading

Pakistan, Czech Republic implement convention to avoid double taxation

Pakistan and Czech Republic have implemented a convention to avoid double taxation and prevent tax evasion, the Federal Board of Revenue notified on Monday. An official said the convention on avoidance of double taxation will come into force on July 1. “This is an epoch-making event in the consolidation of… – Continue reading

Important changes and developments in German double tax treaties

1. New double tax treaty between Germany and the Netherlands: tax authorities now bear burden of proof regarding tax- evading or tax-avoiding arrangements A new Double Tax Treaty (DTT) has been in place between Germany and the Netherlands since 01 January 2016. Art. 23 of the DTT introduces an important… – Continue reading

Rationalise taxes on media, entertainment sector: Experts

Budget 2016 should rationalise entertainment tax, exempt newsprint from VAT and end double taxation on temporary transfer of movie rights to television channels, experts said. “Currently, entertainment industry players such as DTH and cable service operators are reeling under the heavy burden of multiple taxation and levies such as licence… – Continue reading

Experts hail withdrawal of ‘unworkable’ withholding tax

THE withdrawal of a withholding tax on service payments to foreigners, decried by many as unworkable, has been widely welcomed. The Treasury acknowledged that the tax had introduced “unforeseen issues, uncertainty on the application of domestic law and taxing rights under tax treaties”. The withholding tax was introduced into legislation… – Continue reading

FIRB and Tax – Closer together

The Treasurer announced this morning that the Government will use the foreign investment system to ensure tax compliance by multinational companies when investing in Australia. Using the FIRB process will add an additional mechanism for the Government to monitor and enforce tax compliance by multinational companies. It has long been… – Continue reading

Revealed: how Project Goldcrest helped Amazon avoid huge sums in tax

Documents released during the internet giant’s court battle with the US Internal Revenue Service over a possible $1.5bn in unpaid taxes detail a complex restructuring and a deal with Luxembourg that delivered Amazon multimillion-dollar savings Amazon is facing a landmark court ruling in the US that could prise open its… – Continue reading

The biggest loophole of all

Having launched and led the battle against offshore tax evasion, America is now part of the problem DEVIN NUNES raised eyebrows in 2013 when, as chairman of a congressional working group on tax, he urged reforms that would make America “the largest tax haven in human history”. Though he was… – Continue reading

Non-residents still eligible for RRSP contributions

(Special) – If you’re planning on leaving Canada soon, don’t give up on contributing to your Registered Retirement Savings Plan (RRSP). If you become a non-resident of Canada, you can still contribute to an RRSP provided you still have accumulated contribution room available. “Your contribution room is determined by your… – Continue reading

TTIP could block Governments from cracking down on tax avoidance, study warns

Similar trade agreements have been used to facilitate apparent tax avoidance in the past A controversial new trade deal between the EU and the United States could make it more difficult to fight tax avoidance, a new report has warned. TTIP, the Transatlantic Trade and Investment Partnership, is expected to… – Continue reading