Category: Statutory

Treaties and treats

In the heyday of strict implementation of tax laws, it is a welcome relief to some taxpayers that a tax treaty relief application (TTRA) is after all, what it is supposed to be, a relief. To begin with, tax treaties are entered into by countries to reconcile their respective fiscal… – Continue reading

British Virgin Islands: Arbitration Agreements And Insolvency Proceedings

The British Virgin Islands (BVI) Court tightens up on creditors raising spurious disputes and relying on arbitration clauses to avoid insolvency. There has been a recent trend in the BVI whereby debtor companies have sought to identify what appear to be spurious disputes and then rely upon arbitration clauses in… – Continue reading

Brussels’ Corporate Tax Plan Falls Short of Reforms Needed

European Commission’s tax avoidance plan announced last week includes positives, like country-by-country reporting, but doesn’t go far enough to turn the tide against corporate tax dodging; Such reporting should be made public The European Commission last week announced proposals for new laws to tackle tax avoidance and evasion in the… – Continue reading

Brazil: PRORELIT, CSLL Within International Treaties And Tax Planning Statements: Conversion Of Provisional Measure No. 685/2015 Into Law No. 13,202/2015

On December 8, 2015, law No. 13,202 was published, as a result of the conversion of Provisional Measure No. 685/2015 into law. In addition to providing for the Program for Reduction of Tax Litigation (PRORELIT, for its acronym in Portuguese), said law addressed issues such as the scope of double… – Continue reading

DNA EXCLUSIVE: AMAZON UNDER SCANNER FOR OVER RS 200 CRORE TAX EVASION

Amazon is also alleged to have taken the goods from manufacturers/traders at lower price and told them to compensate the difference by claiming Cenvat credit. However, nothing concrete has been found as yet to establish the said allegations. The probe is still underway. The Directorate General of Central Excise Intelligence… – Continue reading

China to allow banks to directly invest in high-growth tech firms: sources

BEIJING: China is planning a pilot programme to allow selected commercial banks to set up equity investment arms to take direct stakes in technology firms, people familiar with the matter said, a move aimed at giving lenders a chance to buy into a high-growth industry while stoking competition with private… – Continue reading

BEPS action plan 14: Making dispute resolution mechanisms more effective

In our previous columns, we discussed the final reports of the Organisation for Economic Co-operation and Development (OECD) on the different action plans to address Base Erosion and Profit Shifting (BEPS). We will now focus on Action 14, which reflects the commitment of participating countries to implement substantial changes in… – Continue reading

Subsidies will not be eliminated but better targeted, says Modi

Modi promised efficiency in allocation of resources as well as creation of opportunities for citizens to progress. New Delhi: Promising reforms that will transform lives, Prime Minister Narendra Modi on Friday said the government will not eliminate all subsidies but will rationalise and target them to the needy. He said… – Continue reading

MAP-ping tax reform: Good start to resolving transfer pricing row with US

Though the use of the retrospective tax on Vodafone and Cairn tend to grab the headlines, a large part of the ‘tax terror’ in India has really been the contribution of the high-pitched transfer pricing (TP) additions to the income of the MNCs Though the use of the retrospective tax… – Continue reading

India, U.S. clear 100 transfer pricing cases

India and the U.S. have reached an agreement to resolve more than 100 pending transfer pricing cases, one of the biggest deterrents for foreign investors planning an India foray, according to a government statement. Some more are expected to be resolved soon. Transfer pricing refers to the setting of the… – Continue reading

The Italian Patent Box and Its (Non-) Compliance with OECD Recommendations

The Italian Patent Box regime largely complies with the OECD recommendations to prevent base erosion and profit shifting. Its non-compliant features offer a brief window of opportunity for companies able to take swift advantage of its wide range of qualifying intangible assets. Many countries have implemented specific IP regimes through… – Continue reading

The Asia Tax Awards are back: Enter now for 2016

The revived Asia Tax Awards will feature categories for companies, firms and individuals. The Asia Tax Awards are back! More than five years after they last took place in November 2010, the Asia Tax Awards will be held once again on Thursday May 5 2016, following the Asia Tax Forum,… – Continue reading

Service tax exemption limit to be raised to Rs 25 lakh in Budget

The Ministry of Finance is planning to make the forthcoming general budget people-friendly. According to informed sources, the service tax exemption limit is expected to be increased from Rs 10 lakh at present to Rs 25 lakh. This is being seen as a major step aimed at benefitting traders and… – Continue reading

GLOBAL REGULATIONS HIT ALL JURISDICTIONS ALIKE: CAYMAN IS KEEPING ITS EDGE, BUT PRACTICAL IMPLEMENTATION A MAJOR CHALLENGE FOR MANAGERS

There is no doubt that Cayman Islands remain the favorite domicile for alternative investment funds globally. Cayman is a full service jurisdiction complying with all international standards, but it’s also business-friendly, with a lot of demand to have all relevant industry services located there: 184 banks, 149 trust companies, 108… – Continue reading

Canada: Tax Withholding Obligations Of Non-Resident Employers: Further Exemption Details Released

In its 2015 Budget, the Canadian federal government announced its intention to exempt “certified” non-resident employers from the obligation to withhold and remit income tax in respect of certain employees that perform duties in Canada. The Canada Revenue Agency (the “CRA“) recently released the application form that a non-resident employer… – Continue reading

Taxman is on the prowl for cheaters overseas

An unnamed Korean, according to the National Tax Service (NTS), was living a luxurious life with properties and investments inherited from his father. This inherited fortune, which included stocks overseas, high-end residences as well as diverse financial assets, was not only unreported to the Korean tax agency but was managed… – Continue reading

Canada: Taiwan – Canada Tax Arrangement Released

On January 15, 2016, Canada and Taiwan entered into an “Arrangement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income” (the “Arrangement“). The Arrangement will apply to amounts paid or taxation years beginning after January 1 of the year following the… – Continue reading

Greater tax transparency for multi-nationals a step closer

The South African Revenue Service (Sars) has published additional record-keeping requirements for large multi-national companies which they will have to comply with in future. Many companies have already included some of the required information in their transfer pricing documentation and on their annual tax returns, but there seems to be… – Continue reading

The tax cut we have to have

Australia must not be blown off course from getting a company tax rate closer to 20 per cent. Corporate tax transparency figures released in December by the Australian Taxation Office should not slow momentum. For the first time, the ATO reported the tax affairs of companies with total incomes of… – Continue reading

Three critical ways an offshore bank can protect you

Let’s take a moment to compare the world today to before the Global Financial Crisis struck roughly eight years ago. In this short period of time, US federal government debt has DOUBLED. The Federal Reserve now holds $2.4 trillion of that debt, up from $479 billion. Interest rates, which were… – Continue reading

Central Bank Props up Offshore Yuan in Hong Kong

The People’s Bank of China supports the country’s currency and fends off short sellers in the world’s largest overseas yuan market (Beijing) – The offshore yuan market in Hong Kong has been shaken to the core by weeks of volatility that analysts blame on strong intervention by China’s central bank…. – Continue reading

IRS Still Hunts Offshore Accounts As More Foreign Banks Sign Deals With U.S.

With the web of FATCA information exchanges, whistleblowers, cooperating witnesses, and other sources, the IRS and Justice Department have a wealth of information at their disposal. They have warned offshore account holders to disclose before it’s too late. Under FATCA, banks everywhere want to know if you are compliant with… – Continue reading

Is it the duty of companies to minimise their tax bills? No, of course not

Here’s a transaction that did the rounds some years ago. If I wanted some foreign exchange in the future I could enter into a contract with a bank by which it would sell me some. Assume that, in order to get a bank to promise to give me $2bn in… – Continue reading

IRS Adds More Foreign Banks To Disclosure Blacklist

The US Internal Revenue Service (IRS) has added more banks to the swelling list of financial institutions involved in tax avoidance. Customers of these banks owning up to past financial indiscretions under the Offshore Voluntary Disclosure Program (OVDP) face penalties based on balances over the past eight years. Penalties for… – Continue reading

If you are looking for tax-free residency or citizenship, consider these countries

The UAE is one of the few places in the world where expats can live, earn and keep those well-earned dirhams, as income tax is still not in sight. This benefit has earned the country many rankings as one of the best immigration destinations in the world. Apart from good… – Continue reading

Intellectual property taxation in post BEPS era

On 5th October 2015, the OECD released its final reports setting out the action plan on Base Erosion and Profit Shifting (BEPS) project, thus concluding the two year project which started at the behest of G20 countries in 2013. The reports are aimed at suggesting the measures to reform the… – Continue reading

US firm Johnson Controls to cut tax bill with $16bn Tyco takeover

Car battery and heating equipment maker accused of ‘stranding honest taxpayers’ Johnson Controls, a US maker of car batteries and heating and ventilation equipment, has agreed to buy Irish-based peer Tyco International in a $16.5 billion (€15.23 billion) deal that will lower its tax bill. By redomiciling to Tyco’s headquarters… – Continue reading

Cyprus Yacht Registration – New Preferable VAT Treatment

A. INTRODUCTION On the 13th of March 2012, the Cyprus VAT Authority has launched a scheme making Cyprus one of the most attractive EU jurisdictions for yacht registration. According to this scheme, a Cyprus company can enter into a lease-sale agreement of a yacht with a third party, paying VAT… – Continue reading

President Mukherjee calls for innovation to deal with rising tax disputes

The President highlighted transfer pricing, taxation of digital economy and international taxation as the frontier areas of taxation which require special skill sets to deal with disputes. Stressing on the need to improve India’s ranking in ease of doing business, President Pranab Mukherjee on Sunday said rising tax disputes and… – Continue reading

Can new guidelines get Nigerians into tax net?

The Federal Inland Revenue Service (FIRS) which is now saddled with the onerous task of getting alternative sources of revenue for the federal government has since adopted a stick and carrot approach to bringing tax payers into the tax net. Assistant Editor, Nduka Chiejina looks at the issues contained in… – Continue reading

Google Strikes Deal With U.K. Tax Authority

DAVOS, Switzerland—Google said Friday that it has struck a deal with U.K. authorities that will settle a tax dispute and boost its corporate taxes in Britain, part of a broader effort by European governments to wring more out of big firms in the tech sector. As part of the settlement,… – Continue reading

Educational institution’s record seized in tax evasion case

LAHORE: Directorate of Intelligence Inland Revenue (I&IR), Federal Board of Revenue (FBR) in a raid recovered, impounded and retained record of a known educational institution in an income tax evasion case. The income tax evasion by the educational institution, which has around 100 branches of schools, colleges and different entrance… – Continue reading

BEPS rules to be made compulsory from 1 April

India to change laws in Union Budget to make country-by-country reporting mandatory for Indian multinationals New Delhi: India will change laws in the upcoming budget to make country-by-country reporting mandatory for Indian multinationals to ensure they follow so-called base erosion and profit shifting (BEPS) guidelines. The norms were announced in… – Continue reading

Redomiciliation of foreign companies

The redomiciliation of companies (ie, movement of a company incorporated in one jurisdiction to another, retaining its legal character) is not recognised under Chilean law. This means that in order to move to Chile, a foreign company must establish a branch or create a subsidiary there. It cannot move its… – Continue reading

Uncompetitive tax?

Generally, if a South African taxpayer sells shares in a foreign company, he will be hit with South African capital gains tax (CGT) on any gain realised on that sale. However, South Africa provides exemptions from this CGT in certain circumstances, one of which relates to the sale of foreign… – Continue reading

The hidden wealth of nations

India’s biggest source of FDI is India itself, money departing on a short holiday to a tax haven and then routed back as FDI. Will the government muster up the political will to clamp down on the tax-allergic business elite? This could be a bumper year for the ever-lucrative tax… – Continue reading

Multinationals may have to provide global income, tax details to taxman

Budget to implement some of OECD’s standards on profit-shifting NEW DELHI, JANUARY 21:Large multinational enterprises (MNEs) may be required post-Budget to furnish to Indian tax authorities information on their global incomes and taxes. This move — a fallout of India agreeing to OECD’s Action Plan on Base Erosion and Profit… – Continue reading

Get a reward for helping Canada Revenue find offshore tax cheats

THE Canada Revenue Agency (CRA) has a new program that offers rewards to individuals who provide precise details about Canadians hiding money or assets offshore and not paying the taxes they owe. It is not illegal to invest money or hold accounts offshore but Canadian residents must report their worldwide… – Continue reading

Tanzania: Managing Tax Risks – Double Tax Treaties and Implications to Undertakings of Multinationals

The term double taxation refers to an exposure to tax more than once on the same profit or income. There are two types of double taxation i.e. economic double taxation and juridical double taxation. Economic double taxation is broad and occurs in a situation where an amount of income is… – Continue reading

Estonia cuts impact of tax evasion through incorporation by EUR 210,000 in 3 months

Largely as a result of interaction between the Estonian Tax and Customs Board and entrepreneurs on the subject of incorporation, 157 more people have started to pay payroll taxes and have paid altogether 210,000 euros in such taxes in three months, the tax authority said, cites LETA/BNS. “In connection with… – Continue reading

Implementation of POEM rules may hit investments

The implementation of place of effective management (POEM) rules in the current scenario in India could not only hurt the nation’s outbound investments, but also discourage overseas multinational companies from setting up their regional hubs here, feel industry watchers. The draft guidelines for implementing POEM, which was released on December… – Continue reading

Russian Agreement Advances Hong Kong’s DTA Priorities

Hong Kong’s newly signed double tax deal with Russia is said to support the territory’s ongoing efforts to expand its tax treaty network with jurisdictions along “the Belt and Road.” The Belt and Road, or the Silk Road Economic Belt, is a Chinese Government economic development project, which is primarily… – Continue reading

Budget 2016 may introduce BEPS to make tax evasion difficult for MNCs

MUMBAI: In what could lead to an increase in domestic tax liabilities of many Indian conglomerates and multinationals, the government is set to introduce a framework for Base Erosion and Profit Shifting (BEPS), a global agreement to check tax avoidance by multinationals, in the upcoming Budget. Industry sources expect the… – Continue reading

Exclusive: EU plans faster investment tax refunds from 2017 – document

European Union countries will have to introduce rules from 2017 to speed up tax refunds on cross-border investments, part of a drive to improve the working of financial markets and lift economic growth, according to an EU document seen by Reuters. The executive European Commission wants to simplify “withholding tax”… – Continue reading

Time running out to respond to HMRC’s latest proposals on company distribution anti-avoidance rules

Two weeks remain to influence draft legislation which reduces the ability for individuals to convert income distributions from a company into capital gains by way of winding-up that company, an expert has warned.19 Jan 2016. Proposals amending the Transactions in Securities (TIS) rules were published by HMRC on 9 December… – Continue reading

Cayman copies US tax haven’s limited liability law

Cayman Islands has introduced limited liability company (LLC) legislation that combines the key features of a company and a partnership, intended to increase the structuring options for US investment funds. US clients have reportedly been requesting this legislative development for some time to provide a better match with the Delaware… – Continue reading