Category: Legislation

Warning to declare foreign income before September deadline

UK taxpayers who receive any foreign income or profits from offshore assets have been urged to contact HMRC and disclose this income before 30th September 2018 to avoid being hit by higher penalties. David Redfern, tax preparation specialist and director of DSR Tax Claims, warned those affected to contact HMRC… – Continue reading

Slovakia is pushing on digital platforms, including booking.com, to pay taxes here

One digital platform has registered on its own and others are being registered ex officio. Foreign digital platforms, which mediate services in transport and accommodation in Slovakia, are obliged to launch so-called permanent establishments in Slovakia. The Finance Ministry wants to force them to pay corporate tax. So far only… – Continue reading

National Assembly passes three amendments to strengthen international tax compliance

BASSETERRE, St. Kitts -– The Government of St. Kitts and Nevis took steps on Friday, July 13, to further strengthen its proactive cooperation on tax matters through the passage of three amendments to the Common Reporting Standard (Automatic Exchange of Financial Account Information) (Amendment) Bill, 2018, in the National Assembly…. – Continue reading

China’s top legislature reviews draft amendment to Individual Income Tax Law

BEIJING, June 19 (Xinhua) — The Standing Committee of China’s National People’s Congress (NPC) has begun reviewing a draft amendment to the Individual Income Tax Law at its bimonthly session that opened Tuesday. The draft amendment raises the minimum threshold for personal income tax from 3,500 yuan (about 544 U.S…. – Continue reading

Surveys Suggest Taxpayers Satisfied With TCJA, Says Hatch

Both large and small businesses in the United States expect the measures included in the recently enacted tax reform legislation, the Tax Cuts and Jobs Act of 2017, to have a positive effect on their operations, according to Senate Finance Committee Chairman Orrin Hatch (R-UT). In a recent statement, Hatch… – Continue reading

Jordan to launch nationwide dialogue over controversial income tax bill

AMMAN, June 3 (Xinhua) — A Jordanian official said on Sunday that a nationwide dialogue will be launched to reach a consensus on the controversial income tax bill. “The dialogue will include all segments of the society including professional associations and stakeholders from all segments of society,” the official told… – Continue reading

Analysis: The double taxation treaty (DTT), a case of Nigeria and Singapore

President Muhammadu Buhari move to halt tax evasion signs an agreement with Singapore President Muhammadu Buhari, on Monday 26 March 2018, signed the instrument of ratification of agreement with Singapore against double taxation and fiscal evasion. The President’s assent is pursuant to the approval of the double taxation treaty (DTT)… – Continue reading

Tax outflows, debt cripples Malawi’s growth

Malawi is struggling to address loss of revenues due to smuggling of minerals, unregulated artisanal and small-scale mining activities, under declaration of taxable income and transfer mispricing by mining companies. Reserve Bank of Malawi statistics show that Malawi lost $980 million (MWK78 billion) between 2010 and 2017 due to foreign… – Continue reading

HMRC To Add To Arsenal Against Diverted Profits

HM Revenue and Customs (HMRC) has launched a consultation inviting input on proposals to tackle arrangements entered into by individuals, partnerships, or companies that aim to move UK profits outside the scope of UK taxation, typically through the use of offshore trusts and companies. The new legislation, to be drafted… – Continue reading

Russia Considers Creation of 2 Tax Havens Over US Sanctions – Reports

MOSCOW (Sputnik) – The Russian authorities are discussing the creation of two offshore financial centers (OFCs) with special legal systems in the Kaliningrad Region and the Primorsky Territory to support business circles targeted by US sanctions, the Vedomosti newspaper reported on Tuesday. According to the Vedomosti newspaper, the tax havens… – Continue reading

Ibcs Face ‘Much Damage’ Through Blacklisting Bill

THE Bahamas’ ‘blacklisting’ response threatens to “cause a lot of damage” to its IBC business and create “much less certainty” for the financial services industry, a top attorney is warning. Michael Paton, a former Bahamas Financial Services Board (BFSB) chairman, told Tribune Business that the proposed Multinational Entities Reporting Bill… – Continue reading

Last-Ditch Bid To Halt Eu Blacklist

The Deputy Prime Minister and minister of financial services were yesterday travelling to Europe in a last-ditch bid to plead the Bahamas’ case against being ‘backlisted’. Carl Bethel QC, the Attorney General, confirmed to Tribune Business that both K P Turnquest and Brent Symonette are leading a government delegation that… – Continue reading

Tax chief: Israel has become world’s laxest tax haven

Moshe Asher: Exempting immigrants and returning residents from reporting is unjustifiable as a matter of principle. The “Milchan Law,” which grants tax and reporting benefits to new immigrants and returning residents and is the subject of the suspicions against Prime Minister Benjamin Netanyahu in the gifts case (Case 1000), was… – Continue reading

Finance studying three types of tax amnesty measures

Finance Secretary Carlos Dominguez III said Tuesday the government is studying three kinds of tax amnesty programs. Dominguez said these programs would include amnesty for the estate taxes, amnesty for those who were remiss in paying their taxes and amnesty for those who had tax cases. “There are three kinds… – Continue reading

Apple Could Get a $4 Billion Boost From Tax-Law Quirk

Microsoft, Cisco might also benefit from GOP bill ‘loophole’ Law gives some firms edge in paring offshore cash tax tab Companies that stockpiled trillions of dollars offshore free of U.S. income tax may get one last break before paying up — provided their fiscal years don’t follow the calendar year…. – Continue reading

Serbia to Abolish Full Blown Withholding Tax on Non-Resident Service-Providers and Simplify Conditions for Tax Deductibility of NPL Write-Offs for Serbian Banks

The Serbian Ministry of Finance has published draft amendments to the Corporate Income Tax Act (CITA), which are expected to be formally approved by the Government within days. If approved by the Parliament, as expected, CITA amendments will take effect from 1 January 2018. The most important novelties concerns recognition… – Continue reading

PANA report ‘confirms’ Malta ‘not a tax haven’

FinanceMalta, the Institute of Financial Services Practitioners, the Chamber of Commerce, Enterprise and Industry and the Gozo Business Chamber have welcomed the PANA Committee’s confirmation that the Maltese tax system is in line with current international and EU standards. Furthermore,according to the Committee, Malta has transposed EU rules and respects… – Continue reading

Diokno proposes new tax amnesty

The Department of Budget and Management (DBM) raised the possibility of granting a general tax amnesty to lure individuals and corporations with outstanding liabilities to settle their obligations without fear of being slapped with criminal charges. Following the tax settlement of cigarette-firm Mighty Corp. with the government, Budget Secretary Benjamin… – Continue reading

Google loses 6 year battle, must pay tax on remittances made to Google Ireland

Bad news for the world’s favourite search engine. On Tuesday, the Indian tax office gained an upper hand in its six-year-long battle with Google India in a ruling that would set a precedence for some of the other multinational companies. The rift owes its origin to the arrangement and fund… – Continue reading

Hong Kong financial chief dashes hopes for wide-ranging tax cuts for corporations

Paul Chan Mo-po says the city must protect against unforeseen market changes at a tax forum that also featured a warning about the city’s international tax compliance There are no plans to cut Hong Kong’s corporate taxes across the board because the government needs to reserve funds to protect the… – Continue reading

Court orders developer to reveal condo-flipper info

A Federal Court judge has approved at least one court order that will require a British Columbia developer to turn over information to tax officials about people who bought and flipped condo units before or during construction. And several similar applications are under way, reflecting the federal government’s efforts to… – Continue reading

TRAIN removes preferential tax rates for new ROHQs

Multinational companies establishing their regional operating headquarters (ROHQs), a subsector under the business processing outsourcing (BPO) sector, in the country starting January 2018 will no longer be entitled to tax incentives under the current Senate Bill on tax reform. Senate Bill No. 1592 or the proposed Tax Reform for Acceleration… – Continue reading

Property tax law amended to boost Smart Nation move

Parliament yesterday passed changes to the law to allow more people to get property tax notices digitally. This is part of Singapore’s move to becoming a Smart Nation, Senior Minister of State for Finance and Law Indranee Rajah told MPs. Existing regulations require taxpayers to explicitly consent before the Comptroller… – Continue reading

The Finnish Supreme Administrative Court confirms that the business model chosen by parties must be respected in transfer pricing context

The Finnish Supreme Administrative Court published on 13 September 2017 precedent 2017:145 that further clarifies the scope of application of the Finnish transfer pricing adjustment provision (Act on Assessment Procedure (“AAP”) Section 31). In its previous landmark precedent KHO 2014:119 the Supreme Administrative Court stated that the so-called re-characterization of… – Continue reading

UK unveils new anti-avoidance legislation targeting offshore trusts

In its latest policy paper to target the cross-border financial services sector, the UK government today unveiled proposed legislation that seeks to prevent the use of offshore trusts to avoid tax. The measure ensures that payments from an offshore trust intended for a UK-resident individual “don’t escape tax when they… – Continue reading

Analysis: Romania seeks tighter control of multinationals’ financial data

The government is looking to implement EU Directives on tax avoidance, and is set to receive more financial information from multinational groups active in Romania. Tax experts suggest that large corporations might reassess their business models in order to meet the demands of the fiscal authorities in Romania and across… – Continue reading

General Election 2017: People on more than £70k ‘could pay more tax if Labour wins power’

People earning more than £70,000-a-year could be forced to pay more tax if Labour wins power, Shadow Chancellor John McDonnell hinted today. He stressed Labour wanted a “fair taxation system” which would see corporations and the rich “pay their way more”. Asked to define rich, Mr McDonnell said they would… – Continue reading

Ukraine Sets Out Fiscal Plans In Talks With IMF

Ukraine has ruled out major tax reform, in consultations with the International Monetary Fund. The IMF noted that Ukraine has major substantial progress on improving its finances. The IMF said budget execution continues to be strong, over-performing relative to program targets. The 2016 budget deficit has been limited to 2.3… – Continue reading

Hong Kong signs agreements with Portugal and South Africa on automatic exchange of financial account information in tax matters

Hong Kong has signed agreements with Portugal and South Africa for conducting automatic exchange of financial account information in tax matters (AEOI), a Government spokesman said today (April 3). “We have been seeking to expand Hong Kong’s AEOI network with our tax treaty partners. The signing of agreements with Portugal… – Continue reading

Singapore, Ghana Sign New Double Tax Treaty

The DTA clarifies the taxing rights on all forms of income flows arising from cross-border business activities and seeks to ensure such income is not taxed twice. The agreement provides that withholding taxes on dividends, interest, and royalties will generally not exceed seven percent. Withholding taxes on service fees will… – Continue reading

Ukraine ratified double tax treaty with Luxembourg

On 14 March 2017 the Parliament of Ukraine ratified the Convention between the Government of Ukraine and the Government of the Grand Duchy of Luxembourg “On Avoidance of Double Taxation and Prevention of Income and Capital Tax Evasion” (the “Convention”) and a protocol to it (the “Protocol”). As we informed… – Continue reading

Hong Kong Government Considers Expanding Its List of “Reportable Jurisdictions” for Automatic Exchange of Information

Under increasing international pressure, the Hong Kong government is considering expanding its Automatic Exchange of Information (AEOI) implementation by imposing broader information collection obligations, entering into more bilateral AEOI agreements at a faster pace, and possibly joining the multilateral AEOI agreement. Background Hong Kong legislated to adopt the OECD Common… – Continue reading

Offshore tax evasion: compliance and penalties – part 1

Sometimes it can be hard to keep up with the avalanche of government announcements on tax avoidance and evasion. In the first of a two part series, Jason Collins, a member of the CIOT’s management of taxes sub-committee and partner at Pinsent Mason, provides an overview of the rapidly changing… – Continue reading

EU Mulls Tax Sanctions for Countries Branded Tax Havens

Countries that end up on the European Union’s list of tax havens could subject companies operating within their borders to tax sanctions—such as withholding taxes and denied deductions for royalty payments—damaging the businesses’ ability to offset losses in the jurisdictions. Following a March 1 meeting, politicians identified a range of… – 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

Oman’s ministry of finance launches taxation portal

Muscat: A portal for entities subjected to taxation was launched on Wednesday by the ministry of finance. The ministry, represented by the Secretariat General for Taxation launched the portal www.taxoman.gov.om. The portal has legislations, taxation charts and agreements on avoidance of double taxation as well as developments in the field… – Continue reading

Pakistan, Hong Kong ink pact to avoid double taxation

ISLAMABAD-Pakistan and Hong Kong on Friday signed the pact on avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income. Pakistan’s Ambassador to China Masood Khalid signed the agreement while the Secretary for Financial Services and the Treasury, Professor KC Chan signed on behalf of… – Continue reading

Many tax-exempt charities don’t meet IRS requirements

Even though the Internal Revenue Service approves 94 percent of the applications it receives from charities for tax-exempt status filed through the simplified Form 1023-EZ, approximately a quarter of them do not meet the IRS’s own requirements. A recent report by the National Taxpayer Advocate pointed out that Treasury Department… – Continue reading

Switzerland to vote on corporate tax unification

Swiss voters will vote next week on whether to reform corporate tax and remove the reduced tax rates that Switzerland currently grants to multinational firms. Voters will be asked whether they accept the federal law that was adopted by Switzerland’s national council in June 2016 “with a view to enhancing… – Continue reading