Category: Loans

Canada: International Tax Reform 2015-BEPS Final Reports

On October 5, 2015, the OECD released its final reports relating to the OECD/G20 base erosion and profit shifting (BEPS) project (the Final Reports). The BEPS project began in 2013 and has received unprecedented attention from governments and the private sector. The Final Reports outline the OECD’s recommendations and the… – Continue reading

UK: The Use Of UK Holding Companies In International Group Structures

The location of a holding company is a significant consideration in any international corporate structure. Choice of jurisdiction for a group holding company (‘Holdco’) is relevant both from the point of view of tax optimisation (maximising withholding tax free dividend, interest and royalty flow up through the group and minimising… – Continue reading

OECD proposals could save countries US$240bn in lost taxes

With the bulk of the OECD’s work on the BEPS project complete, attention will now turn to the implementation of the recommendations by member countries and others. Minister for Finance, Michael Noonan said that he welcomed the Base Erosion and Profit Shifting (Beps) report, and that the OECD’s proposals would… – Continue reading

Singapore: Singapore Tax Treaties: The End Of Limitation Of Relief?

What is limitation of relief? Here is an actual illustration: A client in Singapore has loans to a Spanish SOCIMI, a real estate investment company equivalent to a REIT. Spain requires tax to be deducted at source when interest becomes payable even if in fact the interest is not actually… – Continue reading

Revealed: how AstraZeneca avoids paying UK corporation tax

Pharmaceuticals group defends use of legal avoidance scheme, after paying no UK corporation tax over two years despite global profits of £3bn AstraZeneca, one of Britain’s largest businesses, is using a multimillion-pound tax avoidance scheme in the Netherlands, set up months after the UK relaxed its tax laws for multinationals… – Continue reading

Are corporate tax inversions ‘unpatriotic’?

Moving overseas to cut tax burden remains a viable option for some firms, though the presidential candidates may have other plans. With the long haul of a presidential election campaign just beginning, companies that leave the U.S. to lower their tax bills are once again political targets. Donald Trump this… – Continue reading

Uber has revolutionised transport in Australia. But will taxpayers get anything in return?

ATO to force Uber drivers to pay GST Uber is to mount a legal challenge against the Australian Tax Office after a decision to force drivers to register and pay GST. Prime Minister Malcolm Turnbull has praised ride-sharing company Uber as part of the “agile” economy he envisages for Australia…. – Continue reading

Untapped funds can help pay for Sustainable Development Goals

Development Goals (SDGs) but poorer countries should exercise caution when borrowing money, Gail Hurley, a development finance expert with the UN Development Program (UNDP), told Xinhua. “There’s a lot more finance available now—public and private, domestic and international — (but) a lot of it is loan finance, so we do… – Continue reading

The NZ registered financial service provider that tells potential clients of NZ bankrupts ‘who still live in mansions & drive Ferraris owned by their trusts’

A small office shared with three other companies deep in the bowels of the Outsource IT Tower on Auckland’s Khyber Pass Road opposite a reservoir isn’t necessarily where you’d expect to find the global headquarters of a financial service provider that claims to be following in the footsteps of three… – Continue reading

Malta – the optimum choice for private equity

Malta provides an outstanding opportunity for private equity and venture capital managers. It has a flexible LP structure, an extensive network of double tax treaties, a favourable local tax regime and experienced service providers who can provide a cost-effective solution,” comments Felicity Cole (pictured), Head of the Funds Department at… – Continue reading

Ireland: Financial services group calls for cut to capital gains tax

The Government should reduce the rate of capital gains tax (CGT) and expand corporation tax relief for start-up companies in next month’s budget to boost growth in the financial technology sector, Financial Services Ireland (FSI), a unit within employers’ group Ibec, has urged, reports the Irish Times. In a 10-page… – Continue reading

U.S. companies given Export-Import Bank subsidies keep profits offshore, skirt taxes

Budgeting battle But like much of the budgeting in Washington, D.C., it gets complicated. The Congressional Budget Office contends the Ex-Im Bank’s surpluses are the result of the accounting method the bank uses and would disappear — or require a taxpayer subsidy — if the bank used a more appropriate… – Continue reading

Treasury prods firms to fight tax provision

The Treasury Department has pushed American-based corporations to lobby against a tax provision prized by their foreign counterparts, according to people who have heard the pitch. One senior Treasury official in particular, Danielle Rolfes, urged domestic companies to more aggressively target an incentive for interest expensing during a March tax… – Continue reading

Indonesia and the Netherlands sign Protocol to amend existing Tax Treaty

On July 30, 2015, the Netherlands and Indonesia signed a protocol (the “Protocol”) amending an agreement between the Government of the Kingdom of the Netherlands and the Government of the Republic of Indonesia for the avoidance of double taxation and the prevention of fiscal evasion, originally signed on January 29,… – Continue reading

$1.8 Billion IMF Ukraine Bailout Money Deposited in Ukraine Oligarch Kolomoyskyi’s Cyprus Offshore Bank Account

Funds Discovered in Kolomoyskyi’s Cyprus Kitty Investigative reporters have discovered that IMF bailout funds intended for Ukraine have mysteriously found their way to a Cyprus bank account controlled by notorious Ukrainian oligarch Ihor Kolomoyskyi. A huge chunk of the $17 billion in bailout money the IMF granted to Ukraine in… – Continue reading

Barclays Pressing Swiss Private Bankers to Double Client Assets

The new head of Barclays Plc’s Swiss unit is pushing private bankers in Geneva and Zurich to double client assets in four years as international competitors exit the world’s largest hub for offshore wealth. James Buchanan-Michaelson, who joined from Coutts International in June, aims to increase Swiss assets, including loans,… – Continue reading

Use of Estonia in U.S. International Tax Planning

According to recent estimates, Estonia, which is situated halfway between Stockholm and St. Petersburg, currently has more than 350 start-up technology companies – one for every 3,700 citizens – and the government expects this number to reach 1,000 by the year 2020. This makes Estonia the number one start-up technology… – Continue reading

Anti-Money Laundering Act: Govt to review limit for punishing tax evaders

ISLAMABAD: In a bid to persuade legislators to withdraw their opposition, the government on Wednesday hinted at reviewing the Rs10 million limit that it proposed for treating tax evasion as an offence under Anti-Money Laundering Act. The government showed this flexibility during a meeting of Senate Standing Committee on Finance and… – Continue reading

South Africa: Taxation Of Trusts Revisited

The Davis Tax Committee’s First Interim Report on Estate Duty (“DTC Report”) was released for public comment on 13 July 2015. In essence, the DTC Report proposes that “a highly progressive tax that patches loopholes, helps provide equality of opportunity and reduces the concentration of wealth, must be implemented”. The… – Continue reading

Romanian prosecutors charge Lukoil with €1.76bn fraud

Romanian prosecutors have completed its investigations into the alleged fraud committed at a local Lukoil refinery and on August 4 indicted the Russian-owned Petrotel refinery, its Russian director-general and five other officials. Prosecutors estimate the losses to the state at RON 7.6bn (€1.76bn), and have seized shares and bank accounts… – Continue reading

Canada: Withholding Tax On Cross-Border Commitment Fees

Commitment fees are a common feature of many lending arrangements whereby a lender is given additional compensation above and beyond the stated interest rate for agreeing to provide funding to the borrower. Similar to interest payments, Canadian withholding tax may be applicable on such fees and must be carefully considered… – Continue reading

HMRC claims victory against £29 million tax avoidance scheme

HM Revenue & Customs (HMRC) has won a case against £29 million ‘sham’ tax avoidance scheme in a tribunal case, reports Citywire. The First-Tier Tribunal rules against tax avoidance scheme the Brain Disorders Research Limited Partnership and partner Neil Hockin’s attempts to claim £29 million in tax relief. The investors… – Continue reading

China developers head home, but offshore bonds set to hedge political ris

HONG KONG, July 13 (IFR) – Chinese property developers are wary about relying too heavily on onshore funding, even after regaining access to the cheaper domestic bond market. Evergrande Real Estate and Longfor Properties last week became the latest Chinese developers to cut their interest costs through the issuance of… – Continue reading

How non UK residents should buy or own residential property

How should non resident or non domiciled buyers of UK residential property own or hold residential property? Overseas buyers or owners of UK residential property above £1m in value need to consider carefully in what name or legal structure they should buy or hold property for their protection and to… – Continue reading

France: French Tax Update – Recently Published Noteworthy Decisions – July 2015

The present French Tax Update will focus on an overview of several noteworthy French tax court decisions issued during the past few months. BUYBACK AND CANCELLATION OF OWN SHARES The tax treatment of buybacks, from the shareholders’ point of view, has now been simplified through a change of legislation, i.e.,… – Continue reading

Possible legislation restricting interest deductions in Finland for tax purposes

Industrial & Manufacturing groups which have operations in Finland, should review their funding arrangements to ensure they remain tax effective following a recent case in Finland which may now be put on a statutory footing. The Finish tax authorities treated a hybrid instrument as equity and the related interest expense… – 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

China’s Banks Taking on the Old Guard Win in Asia Debt Sales

Chinese banks, encouraged by Premier Li Keqiang’s “going-out” strategy, are rocketing up the international bond arranging league tables in Asia, leaving investment banking stalwarts in their wake. Industrial & Commercial Bank of China Ltd., the world’s biggest lender by assets, jumped four spots from the end of last year to… – Continue reading

Amend the offshore Banking Act Enforcement Rules and issue the regulations governing Offshore Insurance Branches

The Financial Supervisory Commission (FSC) and the Central Bank of the Republic of China (Central Bank) issued the amended Offshore Banking Act Enforcement Rules (“Rules”) and the new Regulations Governing Offshore Insurance Branches (”Regulations”), respectively per letters Ref. No. Jin-Guan-Bao-Zong-Zi No. 10402567211 and Ref. No. Tai-Yang-Wai-She-Yi-Zi No. 1040021857 on 25… – Continue reading

The Tangled Web of Walmart and its Subsidiaries

A recent report by Americans For Tax Fairness looks at how Walmart, the world’s largest corporation, uses a vast network of subsidiaries and branches in overseas tax havens with two purposes: 1.) to minimize taxes owed on its foreign operations. 2.) most importantly, to avoid United States taxes on those… – Continue reading

Scam sparks Scots fraud haven fears

Fears are growing that Scotland may be becoming a magnet for money-launderers following allegations linking shell companies there to a $1bn (£634m) fraud in the ex-Soviet republic of Moldova. The swindle allegedly emptied three of Moldova’s leading banks of almost all their funds. Investigators say a key role was played… – Continue reading

Vietnam: Refinancing A Domestic Loan With An Offshore Loan?

Vietnamese regulations and policy are certainly not in favor of using foreign loans to refinance existing domestic loan debts. However, the State Bank of Vietnam (SBV) could feasibly exercise its discretion to permit such loans if applicants made a compelling case. Prudent cross-border lenders will require Vietnam borrowers to disclose… – Continue reading

LPC-Turkish borrowers target Asian loan investors

Turkish banks and companies are trying to sell syndicated loans to Asian investors after a drop in Asian lending but investors are wary of increasing Turkish exposure due to political instability following June’s elections, bankers said. Turkish borrowers are targeting Asian investors in a bid to extend loan maturities after… – Continue reading

Wal-Mart Has $76 Billion in Overseas Tax Havens, Report Says

Wal-Mart Stores Inc. owns more than $76 billion of assets through a web of units in offshore tax havens around the world, though you wouldn’t know it from reading the giant retailer’s annual report. A new study has found Wal-Mart has at least 78 offshore subsidiaries and branches, more than… – Continue reading

HMRC Welcomes New Tax Avoidance Ruling

HM Revenue and Customs (HMRC) has welcomed a court ruling against an avoidance scheme that enabled two banks to avoid corporate income tax on interest on floating loan rate notes. In this type of loan, the interest rate (and therefore the installment amount) fluctuates according to the rise or fall… – Continue reading