The comprehensive double taxation agreement (CDTA) between Hong Kong and Russia, which was signed in January this year, entered into force on July 29, 2016, and will be in effect in Hong Kong for any year of assessment beginning on or after April 1, 2017. The CDTA is said to… – Continue reading
Indonesia will be among the first to join the group of countries adopting the Automatic Exchange of Information (AEOI) in 2018. AEOI would provide automatic exchange of tax information among the members of the group. All bank accounts in the world would be accessible for taxable assets. Dishonest and greedy… – Continue reading
In early April 2016 files leaked from a large Panama-based law firm (known as the ‘Panama Papers’) brought to the attention of many the ways in which offshore companies and structures can be used to obscure the identity of beneficial owners, some of whom have used such entities to avoid… – Continue reading
To provide certainty to taxpayers in the domain of transfer pricing by specifying the methods of pricing The Central Board of Direct Taxes (CBDT) has entered into an advance pricing agreement (APA) with an Indian subsidiary of a Japanese trading company to foster a non-adversarial tax regime. “Signing of this… – Continue reading
An agreement on avoidance of double taxation, which was signed today between the governments of Ukraine and Malaysia, will allow enhancing business contacts and attracting investors. Ukrainian President Petro Poroshenko said this at a joint news conference with Malaysian Prime Minister Najib Tun Razak, an Ukrinform correspondent reports. “We think… – Continue reading
The Ghana Revenue Authority (GRA) is developing a manual on the new Income Tax (Act 896, 2015) to make it easy for taxpayers to understand the provisions of the law. The manual, known as Practice Note, which will contain examples of how to calculate taxes, is expected to give directives… – Continue reading
Transfer pricing documentation rules have come to the fore with the United Kingdom’s Brexit. The European Union and the Organization for Economic Cooperation and Development appear to apply similar transfer pricing documentation rules to multinational companies, but differences nevertheless abound. Some multinational enterprises may view these differences as nuances, but… – Continue reading
The total amount of fines handed out to Greek taxpayers with suspected undisclosed foreign assets has reached EUR810m (USD905m) as a result of recent investigations, the Government’s anti-corruption unit has announced. According to a July 29 government press release, Special Financial Prosecutor Panagiotis Athanasiou said that the Government is intensifying… – Continue reading
A revenue-neutral modification of Finland’s tax structure could boost the nation’s economic growth, the Organisation for Economic Cooperation and Development said in a recently released report. Finland has already adopted some measures to make the tax structure more growth friendly in recent years, the report, Boosting Productivity in Finland, said…. – Continue reading
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
Local banks will report account holders with American citizenship to the IRS beginning in September The Knesset Finance Committee on Monday approved a series of regulations by the Finance Ministry, paving the way to full implementation of the US Foreign Account Tax Compliance Act, which was signed between the two… – Continue reading
Possible EU sanctions against New Zealand could make travel harder and have a massive effect on the economy. New Zealand is under investigation by the EU as it prepares a blacklist of global tax havens, Newshub revealed on Monday night. The grouping of 28 European nations has compiled a list… – Continue reading
As many are now aware, the double tax avoidance arrangement (DTAA) between India and Mauritius was amended through the protocol released last month. The direct impact summarized in one line is as follows: India shall now tax capital gains arising from alienation of shares by a Mauritius investor acquired on… – Continue reading
As worldwide pressure grows to fight offshore tax evasion, new statistics obtained by the Star show the Canadian government has convicted only 49 people and levied just $13.4 million in fines for what it calls offshore activity since 2010. These numbers are far lower than in comparable countries and show… – Continue reading
Almost every country and every government now is fighting to detect undeclared Incomes and boost their tax collection. This could potentially help various countries show and collect large taxes from offshore accounts. The renewed thrust on automatic exchange of information (AEOI) between countries could achieve what seemed like a dream… – Continue reading
Kenya will create an international taxation center to help in the global crackdown against tax avoidance, a senior official said on Wednesday. John Njiraini, the Commissioner General of the Kenya Revenue Authority (KRA), said the formation of the international tax office would enable Kenya to curb tax evasion. The office… – Continue reading
The government is hell-bent on cracking down on black money and undisclosed income of Indians within the country and safely stowed away abroad. While there is no proper estimation of the actual amount of black money in the economy, the government is actively taking measures to stop it. Recent media… – Continue reading
The Malaysian government won’t protect its citizens from legal action taken outside the country stemming from the scandal surrounding the state investment fund 1 Malaysia Development Berhad, a senior official said this week. Johari Abdul Ghani, who is second in command in the Finance Ministry under Prime Minister Najib Razak,… – Continue reading
Ukraine is to sign a double tax agreement with Malaysia that will cap withholding tax rates on dividends, interest, and royalties. Under the deal, the withholding tax rate for dividends would be capped at 15 percent. A special rate of five percent would apply to dividends received by a company… – Continue reading
At the recent G20 meeting in China, finance ministers stressed their support for greater tax transparency, calling for a report from the OECD on the implementation of automatic exchange of information before the end of the year, and stating that by July 2017 it wants a list of non-compliant jurisdictions… – Continue reading
The Trudeau government has won a round in its battle against offshore tax cheats. Two banks have agreed to give the federal revenue minister information from the accounts of a Caribbean financial institution to help the government crack down on Canadian tax evaders. The Federal Court of Canada has approved… – Continue reading
With elements of the Liberal government’s 2016-17 budget coming to fruition, tax lawyers must stay up to date with the changes as their workload increases, according to a global firm partner. Speaking with Lawyers Weekly, DLA Piper tax partner Jock McCormack (pictured) said tax lawyers can expect to be busy… – Continue reading
International tax experts are to convene in Canada on August 29-31, 2016, to discuss global transfer pricing developments and other issues affecting large corporations as a result of the OECD’s base erosion and profit shifting (BEPS) project. Bloomberg BNA and Baker and McKenzie will host two events: The 3rd Annual… – Continue reading
MINISTER of Finance Lou Jiwei is calling for a taxation overhaul, saying innovative industries should also come under the purview of taxation to reflect a socially balanced economic growth. “Preferential tax policies are needed to boost development of new business sector, but fairness also matters,” Lou said. He was speaking… – Continue reading
Officials from the Department of Finance and the Revenue Commissioners said they are investigating recent media reports that so-called vulture funds are using a clause in Irish law to pay small amounts of tax here. Minister for Social Protection Leo Varadkar has said that the Government is “very concerned” at… – Continue reading
The world’s major economies need to deepen cooperation on tax collection as companies seek to minimise the amount they pay to governments, finance ministers said Saturday. The issue has become controversial in many countries, with multinational firms from Google to Starbucks facing accusations of not contributing appropriately to the economies… – Continue reading
Slashing rates probably won’t be the U.K.’s magic bullet. As Britain plans its way out of the European Union, politicians have been looking for ways for the country to maintain its dominance as a center for global capital. One idea: turning the post-Brexit U.K. into a tax haven. In the… – Continue reading
Public Accounts committee criticised HMRC’s lack of strategy HM Revenue & Customs (HMRC) is exploring how it can better publicise fraud investigation outcomes and increase the impact of the sanctions it uses, in order to dispel the myth “people are getting away with tax evasion”. The department said it wants… – Continue reading
The Panama Papers have put the spotlight on tax avoidance once again. This is, of course, not a new issue. Before that, we had Swiss Leaks and BVI Leaks. You may be asking: how does tax avoidance work and why have policymakers struggled to rein it in? Firstly, it is… – Continue reading
During a recent speech in Pretoria to the High Level Conference on Illicit Financial Flows, South African Minister of Finance Pravin Gordhan noted that tax code improvements are required in African countries so that multinational enterprises (MNEs) “pay their fair share of taxes in the countries where they generate their… – Continue reading
The Macau Special Administrative Region (MSAR) and China’s State Administration of Taxation in Beijing signed an additional protocol to the agreement to avoid double taxation and prevent tax evasion, officials said in Macau. The Additional Protocol, the third, according to the statement released by the Office of the Secretary for… – Continue reading
The Internal Revenue Service has released new guidance on how foreign financial institutions can enter into a Qualified Intermediary agreement with the U.S. under the Foreign Account Tax Compliance Act, or FATCA. Notice 2016-42, released earlier this month, outlines the proposed QI agreement, which revises and updates the current agreement… – Continue reading
Slovakia and the United States can now exchange information for tax purposes more easily, thanks to the Foreign Account Tax Compliance Act (FACTA) agreement signed in Bratislava on July 31, 2015. “The objective of the agreement is to prevent tax evasion and tax frauds and improvement of tax collection,” the… – Continue reading
An International Monetary Fund (IMF) review has called for a comprehensive reform of the US tax system, with the aim of removing exemptions, simplifying the system, rebalancing from direct to indirect taxes, and reducing statutory rates for individual and corporate income taxes According to its annual Article IV consultation report… – Continue reading
Tax executives at U.S.-based multinational companies are having a hard time adjusting to the new rules demanded by the Organization for Economic Cooperation and Development’s Base Erosion and Profit Shifting plan, also known as OECD BEPS, according to a new survey. While OECD BEPS is not a requirement in the… – Continue reading
The latest APAs signed with taxpayers pertain to various sectors like banking, information technology and automotives In a move designed to reduce tax litigation, the Central Board of Direct Taxes (CBDT) on Monday signed seven more unilateral Advance Pricing Agreements (APAs) with Indian taxpayers. “With today’s signing, the total number… – Continue reading
The German Federal Cabinet has adopted a bill to implement key aspects of the OECD’s base erosion and profit shifting (BEPS) recommendations and the European Union’s administrative cooperation directive. The Act Concerning the Implementation of Changes to the EU Administrative Cooperation Directive and of Additional Measures against Base Erosion and… – Continue reading
Tax and prosecution bodies must build the capacity to curb illicit activities that rob countries of tax revenues, said Finance Minister Pravin Gordhan on Thursday, speaking at the High Level Conference on Illicit Financial Flows at the University of Pretoria. Illicit money leaving Africa reduces the amount of resources available… – Continue reading
As part of the aim to sustainably meet the highest international standards in the tax field, the Minister of Finance Dr. Jose Jardim has joined the Base Erosion and Profit Shifting agenda of the OECD. In this context, the section with regard to the Common Reporting Standards concerning the automatic… – Continue reading
Multinational companies are making strides in preparing for radically changed cross-border tax and transfer-pricing reporting rules as compliance deadlines near, research by Thomson Reuters suggests, but uneasiness remains amongst tax executives about their readiness. The new rules will require multinational enterprises with annual revenues of €750 million ($830 million) or… – Continue reading
On 12 July 2016, the Council adopted new rules addressing some of the practices most commonly used by large companies to reduce their tax liability. The directive is part of a January 2016 package of Commission proposals to strengthen rules against corporate tax avoidance. The package builds on 2015 OECD… – Continue reading
The OECD has released its standardised IT-format for the exchange on tax rulings (ETR) between jurisdictions to meet the new tax framework following adoption of BEPS Action 5 on countering harmful tax practices more effectively The ETR XML Schema is part of the OECD’s work to ensure the swift and… – Continue reading
The “Big Four” global accounting firms – PwC, Deloitte, KPMG and Ernst & Young – are the masterminds of multinational tax avoidance and the architects of tax schemes which cost governments and their taxpayers an estimated $US1 trillion a year, according to an Australian taxation expert. The controversial new claims… – Continue reading
Ukraine and Austria have agreed to sign a protocol to their double taxation agreement to increase withholding tax rates on dividends, interest, and royalty income. The protocol increases the withholding tax rate for dividends and interest to 15 percent and five percent, respectively. Additionally, the royalty rate for patents, trademarks,… – Continue reading
The Irish Revenue has released guidance on how it will exchange information on the tax rulings it grants. Revenue eBrief No.65/16, which was released on July 5, 2016, sets out Revenue’s arrangements for implementing Council Directive (EU) 2015/2376; and the OECD’s framework for the compulsory spontaneous exchange of information in… – Continue reading
A recent paper from the Tax Foundation (TF) pointed out that, while most Organisation for Economic Co-operation and Development (OECD) countries lean more on tax revenue from consumption taxes, the United States relies more on individual income tax, while raising relatively little from consumption taxes. The TF noted that “this… – Continue reading
Kenya and India will enter into a revised agreement for the avoidance of double taxation on Monday when President Uhuru Kenyatta and Prime Minister Narendra Modi of India preside over the signing of several agreements on Monday. At a press briefing on Sunday, President Kenyatta’s spokesman Manoah Esipisu said other… – Continue reading
Fast-fashion retailer H&M is one of a growing number of multinationals locking in their Australian tax, as debate continues about whether Australia has stopped corporate tax leakage. H&M’s strongly performing Australian subsidiary has entered into a four-year Advanced Pricing Agreement (APA) with the tax office that expires on November 30,… – Continue reading
The European Union’s Anti-Avoidance Directive, which has to be put into national legislation by 2019,is aimed at plugging loop-holes in tax systems which allow large corporations to legally avoid paying tax. While Malta has been criticised for offering competitive tax rates, despite the openness and uniformity of such competitive rates,… – Continue reading
The U.S. Internal Revenue Service (IRS) said Facebook Inc. may have understated the value of intellectual property it transferred to Ireland by “billions of dollars,” unfairly cutting its tax bill in the process, according to court papers. The U.S. Justice Department filed a lawsuit on Wednesday in federal court in… – Continue reading
