Category: Intellectual Property

Germany, Netherlands To Exchange Data On Tax Rulings

Germany and the Netherlands have signed a new agreement that provides for the “spontaneous” exchange of information on advance pricing agreements and advance tax rulings. The agreement was signed in Brussels on July 14, 2015. Under the new agreement, both countries have committed to the mutual exchange of information on… – Continue reading

Cyprus: The Cyprus Intellectual Property Rights ‘Box’ – A Limited Time Opportunity

In May 2012, Cyprus introduced a package of incentives and tax exemptions relating to investment in intellectual property rights, commonly known as an “IP box.” Intellectual property projects are particularly susceptible to cross-border planning by reason of the mobility of intellectual property rights, which do not consist of physical assets… – Continue reading

Endemic tax evasion costing governments at least $200 billion a year

DEVELOPED countries throughout the world are stepping up efforts to curb base erosion and profit shifting (BEPS), a scheme used by multinational companies to avoid paying taxes estimated as high as $200 billion globally, especially when doing business across different jurisdictions. At the 2015 Asia Pacific Tax Symposium hosted last… – Continue reading

Bloomberg BNA and Baker & McKenzie Global Transfer Pricing Conference Comes to Shanghai September 17-18, 2015

ARLINGTON, Va., July 14, 2015 /PRNewswire/ — Bloomberg BNA today announced the latest event in its Global Transfer Pricing Conference series with Baker & McKenzie, in association with the Tax Management Educational Institute, to be held September 17-18, 2015 in Shanghai, China. The conference provides an opportunity to hear from… – Continue reading

Ireland’s sweetheart tax deals under threat as EU investigates

European Commission to issue decisions on four test cases, including Apple in Ireland, Until a few months ago, the medieval town of Athenry in County Galway owed its fame mainly to a song. Irish rugby and football fans often burst into stirring renditions of “The Fields of Athenry”, a ballad… – Continue reading

US Senate’s international tax reform working group has spoken… sort of…

On July 8, 2015, the International Tax Reform Working Group, which is co-chaired by Senators Rob Portman (R-OH) and Chuck Schumer (D-NY), released its long-awaited report that Senate Finance Committee Chairman Orrin Hatch (R-UT) has said is the precursor to comprehensive tax reform in the United States. What does the… – Continue reading

Bipartisan Senate Plan Confuses Real Tax Reform with Tax Cuts for Multinational Corporations

Sens. Rob Portman (R-Ohio) and Chuck Schumer (D-NY) today released a long-awaited tax reform plan that reads like a wish list for multinational corporations. The Senate Finance Committee working group’s report provides recommendations for restructuring the federal government’s international corporation tax rules. The plan is long on misguided ideas and… – Continue reading

United Kingdom: Overview of Tax Regime

The UK Government’s goal is to make the UK the best place in the world to locate an international business; it has one of the most open economies globally, a highly skilled workforce, access to capital markets, a first-class infrastructure, and a highly competitive corporate tax system. UK tax policy… – Continue reading

Coalition can find a tasty replacement for the Double Irish

Ireland’s attractively low rate of corporate taxation is once again under pressure with the recent release of the European Commission’s new action plan to tackle tax avoidance. The commission has been prompted into this politically ambitious move by public outcry over big, usually American, companies avoiding tax in the EU…. – Continue reading

State by State: China and New York State Trade

New York State is increasingly reliant on China as a consumer of services and manufactured goods. In 2014, New York exported approximately US$4 billion to China, making it the state’s sixth largest export market. The top five exports to China are transportation equipment, waste & scrap, machinery (except electrical), primary… – Continue reading

Brazil and U.S. Working To Mend Ties

Brazilian President Dilma Roussef met with President Barack Obama at the White House this week. Below is the new multi-faceted partnership. The United States and Brazilian relationship has been unstable since the U.S. spying policy became known in 2013. Brazilian President Dilma Roussef canceled a 2013 visit to Washington, D.C…. – Continue reading

EU Research Paper Supports Modified Nexus Approach

The European Commission has released a working paper that looks at how significant the introduction of the modified nexus approach will be for the tax affairs of multinational companies that use patent box regimes Entitled Patent Boxes Design, Patents Location, and Local R&D, the paper suggests “that in the majority… – Continue reading

UK ratification of UPC Agreement won’t happen in 2015, IPO confirms

The Unified Patent Court (UPC) Agreement will not be ratified in the UK this year, the Intellectual Property Office (IPO) has confirmed. In a statement sent to Out-Law.com, the IPO ruled out ratification of the Agreement this year but said that it intends to complete the “domestic preparations” for ratification… – Continue reading

Why the United States hates Britain and Australia’s ‘Google tax’

The biggest hurdle to stopping multinational tax evasion isn’t the companies themselves. It’s the governments behind them. As the OECD works swiftly on its plan to stop multinational tax evasion, the United States has already signalled it’s not happy with what’s being proposed. The US has always been clear on… – Continue reading

Latest U.S. Tax Break Fad Means Today’s Winners Would Score Anew

U.S. lawmakers are exploring a new corporate tax break that would benefit companies already adept at avoiding taxes. The idea — known as a patent box or innovation box — would impose a lower tax rate on income generated from patents and other intellectual property housed in the U.S. This… – Continue reading

Congress eyes $2 trillion funding pot

It’s the $2 trillion question. That’s roughly how much U.S. multinational corporations have stashed offshore — money that both Republicans and Democrats would like to tap for revenue and cash that even some companies wouldn’t mind paying a reduced tax rate on. Democrats and some Republicans are interested in using… – Continue reading

C’tee recommends tax breaks on IP brought to Israel

Companies registering their intellectual property in Israel will be charged only 5% tax on dividends. The committee considering changes in the Law for the Encouragement of Capital Investments, headed by former Ministry of Finance director general Yael Andorn, is recommending extension of the tax break granted under the law to… – Continue reading

Complex tax laws a goose to overseas firms

Someone once said that a good tax system enables the government to pluck the feathers from the taxpaying goose with the least amount of hissing, says Rod Houng-Lee. The least amount of hissing occurs when the law is simple and clear. The hissing increases exponentially when the law is more… – Continue reading

Jaitley assures US investors of a stable policy regime

Washington, June 21 (IANS): Indian Finance Minister Arun Jaitley is wooing American investors with twin assurances — more economic reforms and a stable policy regime with no intention to legislate or apply laws retrospectively. Jaitley has held talks with US Treasury Secretary Jacob Lew, Commerce Secretary Penny Pritzker and US… – Continue reading

Will local budgetary deadlock derail campaign for 12.5% tax rate in North?

Business and politicains all want it but welfare reform demand from London has thrown up an unexpected hurdle If corporation tax were cool, Eamonn Donaghy of KPMG in Belfast would be the Bono of his world – half quiet tax accountant, half buccaneering campaigner with a nifty sideline in high-level… – Continue reading

United States: International Tax Reform Heats Up

Top congressional lawmakers have ramped up discussions over international tax reform as the outlook for business and comprehensive reform has dimmed. The president has flatly rejected individual rate cuts, and efforts toward business-only reform have flagged as the pass-through community has rejected most proposals that would leave it out of… – Continue reading

Remark Media Adopts Tax Benefit Preservation Plan to Protect its Net Operating Loss Carryforwards

LAS VEGAS, June 4, 2015 /PRNewswire/ — Remark Media, Inc. (NASDAQ: MARK) today announced that its Board of Directors has adopted a plan, known as the Tax Benefit Preservation Plan, designed to protect the significant potential long-term tax benefits presented by the company’s net operating losses. Remark intends to seek… – Continue reading

Pharmaceutical companies called on to explain tiny tax contribution

The five biggest suppliers of publicly subsidised medicines in Australia recorded sales of nearly $5 billion last year but paid an average of just $10 million each in company tax. Research by the Parliamentary Library, obtained by Fairfax Media, has disclosed the tax contribution of multinational pharmaceutical companies, including Pfizer… – Continue reading

UK: Patent Box – More Detail On The New Regime

Following our article at the end of last year on the potential changes to the UK patent box regime further details have been released on the new regime, timings and additional work to be done. On 6 February 2015, the Organisation for Economic Co-operation and Development (OECD) published a paper… – Continue reading

France and Germany behind plans for ‘common EU corporation tax’

France and Germany want to see common basic corporation tax rates across the EU, according to reports France and Germany are pushing plans to introduce a minimum corporation tax rate across the continent, it was reported today, in a move that could result in higher taxes on British companies. European… – Continue reading

Tax avoidance inquiry to request pharmaceutical companies explain money transfers

Big pharma’s poison pill The tax commissioner wants a senate inquiry to examine tax minimisation by multinational drug companies. Analysis with Heath Aston. Pharmaceutical companies will be put under the microscope by the Senate tax avoidance inquiry which recently exposed rampant “offshoring” of profits by Google, Apple and Microsoft. Tax… – Continue reading

Diverted Profits Tax: counterbalancing the UK’s “open for business” agenda?

The UK’s introduction of the diverted profits tax (DPT) has dismayed tax practitioners and their multinational clients. Rushed through parliament (ahead of its dissolution before the general election) and in effect as of April 1, the DPT seemed intended to appease public anger at multinationals failing to pay their ”fair… – Continue reading

How McDonald’s dodged half a billion dollars in Australian tax

International fast-food giant McDonald’s avoided paying half a billion dollars of tax in Australia over a five-year period by shifting profits through the low-tax nation of Singapore, a new report by a global coalition of trade unions says. The report, which has been funded and commissioned by a coalition of… – Continue reading

OECD attacks ‘aggressive tax plans’

Technology companies need to stop “extremely aggressive” tax planning, the man charged with reforming global tax rules has told the BBC. He says these “push the boundaries of what is legal”. Pascal Saint-Amans, who runs the OECD’s Centre for Tax Policy, said that new standards would require companies to pay… – Continue reading

Cayman Islands: Cayman Islands Quarterly Update – May 2015

FATCA reporting commences In our March client briefing we noted that the Tax Information Authority in the Cayman Islands (“TIA”) had launched its online portal for the automatic exchange of tax information (the “AEOI Portal”), which can be accessed from its website (www.tia.gov.ky). The deadline for reporting Cayman Islands financial… – Continue reading

Ireland: US business body warns not to box in multinationals

The American Chamber of Commerce has warned that new Irish tax incentives may fail because they do not match the needs of multinationals, reports the Irish News. The chamber, which represents 700 US companies, has said the forthcoming Knowledge Development Box – which will replace the discredited Double Irish structure… – Continue reading

Cyprus: The Ideal Location For US To Structure A Royalty Company

Choosing the right location for the centralization and management of your IP is a very important strategic business decision. The ideal location to establish an IP structure is one that can serve the organization’s business strategies/model, safeguard and protect its IP and more important to contribute to its tax optimization…. – Continue reading

BREAKING: US and Armenia to sign Trade and Investment Framework Agreement

U.S. Ambassador to Armenia Richard Mills on Tuesday confirmed reports that a U.S.-Armenia Trade and Investment Treaty will be signed during President Sargsyan’s working visit this week to Washington, DC, the final step in the negotiation of a bilateral economic accord long sought by the Armenian National Committee of America… – Continue reading

The Davis Tax Committee on BEPS and the transfer pricing of intangibles in South Africa

The Davis Tax Committee (“DTC”) recently addressed the issue of base erosion and profit shifting (“BEPS”) in South Africa. The international importance of transfer pricing was once again emphasized when 4 out of the 15 actions identified in the OECD Action Plan on BEPS related to transfer pricing. The 15… – Continue reading

The Italian IP box – an opportunity for the fashion industry

The patent box regime, adopted at the end of 2014 with Italy’s Stability Law, was recently modified by the Investment Compact Decree and implemented into law at the end of March 2015. A distinctive feature of the Italian regime is that the measure now also covers trademarks and designs. A… – 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

How Gilded Ages End

Americans have overcome oligarchy before — and there’s no reason we can’t do it again. Rising inequality seems to pose an insurmountable political problem. If the underlying causes are technological change and globalization, the forces appear to be unstoppable. Alternatively, if the causes are primarily political and involve the power… – Continue reading

Jersey: Funds Quarterly Legal And Regulatory Update – 1 January 2015 To 31 March 2015

FATCA 1. New FATCA IGA guidance notes On 3 February 2015, the Jersey Chief Minister’s Department published the latest version of the Guidance Notes on the Taxation (International Tax Compliance) (Jersey) Regulations 2014 in relation to the implementation of obligations arising under the intergovernmental agreements (IGAs) with the US and… – Continue reading

OECD plans for gathering data on ‘base erosion’ at a disappointingly early stage, expert says

International plans for gathering and analysing data on the extent to which multinational companies are artificially shifting their profits to low-tax jurisdictions are at a disappointingly early stage, an expert has said. Heather Self of Pinsent Masons, the law firm behind Out-Law.com, also said that the global governments involved in… – Continue reading

United States: As Tax Rules Shift, Companies Need Flexible Structures And Strategies

Technology companies with international operations are increasingly using global tax avoidance methods, despite growing opposition from the public and politicians in the U.S. and abroad. As this opposition fuels ongoing changes in tax rules, organizations must be able to quickly adapt their corporate structures and tax strategies to maintain a… – Continue reading