The Kenya-South Africa double taxation agreement comes into force from January 1. An announcement in the November 19, South African government gazette says the agreement applies for taxes withheld at source. “A resident of Kenya will not be taxed on any South African business profits, unless it carries on business… – Continue reading
City watchdogs say Barclays adopted a no-questions-asked policy Bank did not check where ultra-wealthy clients’ money came from £72million fine has been imposed on the bank for turning a blind eye Barclays has been shamed over a murky £1.9billion deal with ultra-wealthy clients which left the country vulnerable to financial… – Continue reading
The European Parliament has overwhelmingly approved a suite of corporate tax reforms that will ensure multinational companies pay taxes where profits are made and increase transparency. A total of 508 MEPs voted in favour of the adoption of recommendations put forward by the Special Committee on Tax Rulings last month…. – Continue reading
The Dutch government said Friday it will appeal an EU ruling that the Netherlands gave Starbucks an illegal tax break and ordered the coffee giant to pay some 30 million euros ($34 million). “The government is of the opinion that the Commission does not convincingly demonstrate that the tax authority… – Continue reading
NEW DELHI, NOVEMBER 27: The Central Board of Direct Taxes (CBDT) has entered into 11 more unilateral advance pricing agreements (APAs). These APAs were signed with Indian subsidiaries of foreign companies operating in various segments of the economy like investment advisory services, engineering design services, marine products, contract Research & Development,… – Continue reading
Maltese MEPs voted against a report that promotes measures that would introduce tax convergence and harmonisation Labour MEP Alfred Sant said that tax competition should remain part of the limited array of decision tools available to national economies. Sant was reacting to the report on tax rulings and other measures… – Continue reading
When the first flames of the Arab Spring began to burn, a Tunisia suffering from decades of mismanagement, inequality and abuse broke free from under the long reign of Zine Al-Abidine Ben Ali. As the government fell and the turmoil in the country spread across the region, the sheer scale… – Continue reading
The Dubai Gold and Commodities Exchange (DGCX) is slated to launch Chinese Yuan Futures, scheduled for the 18th of December 2015, subject to regulatory approvals. The new launch is part of DGCX’s efforts to make the Yuan accessible to regional and global participants as China prioritizes its internationalization and is… – Continue reading
‘Offshore exposure should be a part of any well-balanced investment portfolio, regardless of the rand’s value’ – Duane Gilbert. Fund managers are very much aware of the impact of the weaker rand on investments, but for consumers not dealing with asset management on a daily basis it is a huge… – Continue reading
On the day he took office as Greece’s shipping minister in June 2012, Kostis Moussouroulis received a visit from a 90-year-old shipowner. He still remembers the older man’s words: “Don’t forget, the best minister of shipping and maritime affairs is the minister who is doing nothing for the shipping industry…. – Continue reading
The planned penalty for arrangements subject to the General Anti-Abuse Rule (GAAR) has now been formally set at 60% (in line with the amount proposed in consultation), and the anticipated introduction of rules addressing hybrid mismatch arrangements has been confirmed for 1 January 2017. Civil penalties for those who enable… – Continue reading
The OECD published 13 final reports along with an explanatory statement under its base erosion and profit shifting (BEPS) project on the 5th October 2015. This was endorsed three days later on the 8th October 2015 by the G20 Finance Ministers’ meeting in Peru’. The BEPS project outlines 15 action… – Continue reading
Many Poles may cause blocking of accounts and bills. And all because at the beginning of December 2015. Poland will begin to implement the so-called. FATCA agreement, or an agreement with the United States, which is to counteract the concealment of income. As for the transmission of data for Ocean… – Continue reading
Shriram Asset Management Company gets Sebi nod for offshore fund management Shriram Asset Management Company Ltd today said it has got market regulator Sebi’s approval to manage offshore funds. “The company has recently got the go-ahead from Securities and Exchange Board of India (Sebi) to undertake ‘offshore fund management’,” Shriram… – Continue reading
The House of Lords has recently criticised the speed of further devolution of powers to Scotland, but nevertheless the Scotland Bill is progressing through the UK parliament. Devolution more widely across the UK is a direction of travel in this Chancellor’s Autumn Statement. Among the announcements, George Osborne said that… – Continue reading
Following an independent report which ranked the British Virgin Islands (BVI) as the most important offshore jurisdiction for the sixth consecutive year, local stakeholders are singing the territory’s praises, with one going as far as to claim that the report has challenged the common perception that the BVI is being… – Continue reading
TODAY NICARAGUA – The upcoming entry into force of the tax rules on transfer pricing may take some Nicaraguan companies unawares. An article on Elnuevodiario.com.ni reports that “… Most Nicaraguans companies are concerned about not being ready to cope with the entry into force of the Law on Transfer Pricing… – Continue reading
Recent developments with regard to CRS (the OECD’s “Common Reporting Standard”) mean that Irish funds need to take steps now to update their application forms and subscription documents. As referred to in Matheson’s November Investment Funds Newsletter, the Irish Finance Bill 2015 contains further provisions putting in place the necessary… – Continue reading
Introduction Transfer pricing is a term used to define the price charged between associated enterprises for the transfer of goods, services and intangible property. Increasing cross-border activities have made transfer pricing a real issue as enterprises seek to use transfer pricing as a tool for tax avoidance. Consequently, HK has… – Continue reading
FOCUS: Significant changes to the international tax system planned for the next five years, coupled with a major shift in attitudes towards tax avoidance, has all but killed off the traditional tax scheme. So what does the future hold for businesses seeking to engage in tax planning? To celebrate Out-Law’s… – Continue reading
Israel has joined 90 other countries in signing up to the OECD’s instrument to combat offshore tax avoidance and increase transparency in tax matters. The middle-eastern country became the 91st jurisdiction to sign the Multilateral Convention on Mutual Administrative Assistance in Tax Matters yesterday, which enables the exchange of information,… – Continue reading
Global taxpayers can expect to pay more tax in the years ahead. Many governments worldwide continue to update their tax legislation and expand their tax systems to repay debt and pay for increased social welfare, even as the memory of the last global financial crisis lingers. These are the conclusions… – Continue reading
In response to the announcement that pharmaceutical firms Pfizer and Allergan would merge, Hillary Clinton released a statement that completely missed the real issue behind these inversions – they are a symptom of the greedy, complex, and inefficient U.S. tax code. “Inversion is a symptom, not a disease,” said Grover… – Continue reading
Greater China, Southeast Asia Seen as Global Leaders in Use of Offshore Vehicles, Drawn by Efficiency & Legal Frameworks Key Highlights: OIL’s sixth annual survey shows: The offshore industry will be a leaner, more resilient and confident member of the global economy by 2020, driven by demand from increasing numbers… – Continue reading
The Senate Finance Committee and the House Ways and Means Committee’s Subcommittee on Tax Policy today both announced hearings relating to the OECD’s base erosion and profit shifting (BEPS) project. Both hearings are scheduled for Tuesday, December 1, 2015. SENATE FINANCE HEARING According to today’s release, the Senate Finance Committee’s… – Continue reading
India’s Supreme Court has asked Vodafone to pay $302 million to the Indian government as part of its plans to merge four of its operating businesses ahead of a public listing in India. Vodafone is contesting charges of around $1.1 billion that the government is seeking to allow the merger… – Continue reading
BERN, Switzerland, 25 November 2015 / PRN Africa / — Today, the Federal Council adopted the dispatch on the agreement regarding the automatic exchange of information (AEOI) in tax matters with the EU and submitted it to Parliament for approval. The agreement was the subject of a consultation procedure from… – Continue reading
Hong Kong is tipped to become the world’s largest offshore corporate services centre by 2020, helped ironically, by the industry’s own struggles against reform demands coming from western governments and pressure groups. On notice after high profile money laundering and tax avoidance scandals, traditional offshore havens like the British Virgin… – Continue reading
Transfer pricing adjustment cannot be made in a case where the tax rate in the country of the Associated Enterprise is higher than the Indian rate and where, accordingly, establishment of tax avoidance or manipulation of prices or establishment of shifting of profits is not possible. Only after proper application… – Continue reading
The new provisions of the 4th Amendment to the France/Luxembourg double tax treaty on profits deriving from sale of real estate assets signed on September 5, 2014 will not be applicable in 2016. Currently, the right to tax the capital gains realized by a Luxembourg company upon the transfer of… – Continue reading
The Central Board of Direct Taxes (CBDT), Government of India, via press release dated September 24, 2015, assured the inapplicability of Minimum Alternate Tax (MAT) provisions to Foreign Companies with effect from 01.04.2001. The Government recently issued a circular, accepting the recommendations of the Committee (A P Shah Committee) appointed… – Continue reading
BERLIN (AP) — Germany has shared some 10,000 records on possible Greek tax cheats with Athens. Authorities in the German state of North Rhine-Westphalia say the records concern Greek individuals and companies who had almost 4 billion Swiss francs stashed in Swiss bank accounts. Bank secrecy rules in Switzerland long… – Continue reading
On Tuesday, Deutsche Bank Suisse, a unit of German lender – Deutsche Bank AG DB entered into an agreement with the Department of Justice (DOJ) under which the bank will pay a penalty of around $31 million. The non-prosecution deal entered under the Swiss Bank Program will help the bank… – Continue reading
New Zealand will take steps to prevent base erosion and profit shifting (BEPS) while at the same time ensuring that the country continues to be a good place to do business, Todd McClay, Minister of Revenue, has said. McClay was addressing a recent conference organized by the Chartered Accountants Australia… – Continue reading
Deutsche Bank AG’s Swiss unit agreed to pay $31 million to receive a non-prosecution agreement in a U.S. probe of banks in Switzerland that helped Americans evade taxes. The accord announced Tuesday by the Justice Department is the third-largest of 57 reached this year with Swiss banks. The firms, which… – Continue reading
Veteran banker says India purchase reflects client demand for onshore private banking advice. Julius Baer’s Asia Pacific head Thomas Meier is preparing to leave Asia after 20 years, but he isn’t leaving Asia behind. The veteran banker, who also worked at Credit Suisse and Deutsche Bank, will continue to oversee… – Continue reading
The Governments of the United Arab Emirates and Republic of South Africa have signed an agreement for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and capital gains, and its annexed protocol. Inked by Hamad Hareb Al Habsi, UAE Ambassador to South… – Continue reading
Participants listen to an expert during the seminar hosted by KPMG Qatar. KPMG in Qatar held a seminar recently to help chief financial officers and chief compliance officers from financial institutions understand the implications of Common Reporting Standard (CRS) and what they need to do to comply. The seminar comes… – Continue reading
HMRC introduces new measures to tackle tax avoidance The Chancellor has introduced a new penalty equal to 60% of tax due for all cases successfully tackled by the General Anti-Abuse Rule (GAAR). The GAAR was introduced in 2013 as part of the government’s attempt to crack down on tax abuse…. – Continue reading
The number of Swiss institutions have seen “asset outflows” and the tax status of many of their clients have been found to be “inappropriate”, as per the Swiss Financial Market Supervisory Authority (FINMA), which also has the mandate to combat money laundering activities. Switzerland authorities revealed on Tuesday that India… – Continue reading
Multinationals should pay their taxes where they make their profits, according to one of the recommendations by the tax rulings committee, which were adopted by MEPs on 25 November. Report authors Elisa Ferreira (S&D, Portugal) and Michael Theurer (ALDE, Germany) told us it had been difficult for the committee to… – Continue reading
News Hour: Today the European Parliament voted in favor of specific recommendations aimed at stopping corporate tax avoidance across the European Union. The plenary adopted the report of its special committee on tax rulings, which had been created after the Luxleaks scandal. Oxfam welcomes the parliament’s broad consensus on ending… – Continue reading
Israeli politicians occasionally risk the ire of their American allies. Some have successfully challenged legislation in court to slow the implementation of FATCA-related legislation. Watch and learn, Hong Kong. As the United States continues to bring country after country to their knees to comply with its Foreign Account Tax Compliance… – Continue reading
Pharmaceuticals manufacturer Pfizer is set to move its tax address to Ireland following a major merger A Government minister has said that Ireland is not a tax haven, and that companies choose to locate here for ‘lots of reasons’. It comes in the wake of the decision by the pharmaceuticals… – Continue reading
Corporation tax in Northern Ireland is on its way ‘The future depends on what you do today’. It’s a very simple mantra but it rings so true when you consider the author and what he achieved, Mahatma Gandhi truly was a man of iconic vision and wisdom. As details of… – Continue reading
Teddy Sagi still owns a 30 per cent stake in Playtech, the gambling software firm The Israeli billionaire Teddy Sagi’s £460m takeover of Plus500, the financial trading firm, was torpedoed yesterday due to “concerns” raised by the Financial Conduct Authority watchdog. Mr Sagi is the founder of the gambling software… – Continue reading
On 17-18 November 2015, a new regional meeting as well as a governmental workshop on BEPS was held for the Latin America and the Caribbean region to discuss the outcomes of the BEPS Project, and the ways that the countries can explore to be involved on an equal footing in… – Continue reading
The Italian Supreme Court overturned decisions of lower courts to conclude that two renowned Italian fashion designers were not guilty of tax evasion. The designers, however, could still be subject to civil penalties of about €343.3 million. BACKGROUND The designers had set up Luxembourg companies, to which they had transferred… – Continue reading
Protecting the tax base of extractive industries, moving toward more responsive and flexible fiscal regimes, and improving international cooperation have become priorities in the Andean region, as commodity prices and revenues from extractive industries continue to decline, participants at a recent IMF conference heard. The three-day conference, Determining the Tax… – Continue reading
Steptoe & Johnson LLP Today, Senate Finance Committee Chairman Orrin Hatch (R-UT) announced that the Senate Finance Committee will hold a hearing on December 1, to examine the Organization for Economic Cooperation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) reports and the European Union’s (EU) State Aid investigations… – Continue reading
