The French and Luxembourg governments have signed a new amendment to the French-Luxembourg tax treaty that will significantly impact the investment structures involving Luxembourg vehicles holding French real estate assets. This amendment, signed early in September, will come into force once the ratification process by the respective parliaments of both… – Continue reading
Nokia, Skype and Minecraft-maker Mojang have more in common than just the fact that they are among Microsoft’s biggest acquisition targets in recent years. They are all also based outside the U.S., and that’s no coincidence. As the debate over so-called inversions heats up and critics — from President Obama… – Continue reading
Twitter is funnelling much of the revenue it generates in Britain through an offshore sales structure, newly published annual accounts suggested today. Twitter UK has filed abbreviated 2013 accounts for a small company under Companies House rules, which are usually applicable to a business with an annual turnover of less… – Continue reading
Archaic rules mean the world sees us as a tax haven Think of tax havens and you’ll probably think of Switzerland, Isle of Man and Luxembourg but for the rest of the world, they think of us. You see the UK’s quirky and ancient laws mean we have rules that… – Continue reading
Yesterday saw the release of the first set of deliverables under the OECD’s project on base erosion and profit shifting (BEPS). These constitute the “building blocks” for an internationally agreed and co-ordinated response to government and media concerns in recent years about the perceived way in which shortcomings in relevant… – Continue reading
BEIJING, Sept. 16 (Xinhua) — The Luxembourg branch of China’s largest lender, ICBC, has been appointed as a clearing bank for renminbi business in the European country, the Chinese central bank said on Tuesday. The People’s Bank of China (PBOC) made the decision in accordance with a memorandum of understanding… – Continue reading
American taxpayers are being robbed by yet another giant corporation that is deserting the USA after using the country’s advantages to build untold wealth. Burger King’s recent decision to pursue a corporate inversion to Canada is the culmination of years of maneuvering to dodge paying its fair share in corporate… – Continue reading
The French and Luxembourg Finance Ministers signed, on 5 September 2014, a Protocol amending Article 3 (the “Protocol”) of the France-Luxembourg double tax treaty for the avoidance of double taxation and the establishment of rules of reciprocal administrative assistance with respect to taxes on income and fortune (the “Tax Treaty”)…. – Continue reading
China’s Bank of Communications is expected to settle in Luxembourg before the end of the year, marking the sixth Chinese bank to do so. The Luxemburger Wort first reported the bank, the fifth largest in China, had eyed up Luxembourg in January this year. This was confirmed on Tuesday by… – Continue reading
London and Singapore are fast closing the gap on Hong Kong in the race to become centres for offshore renminbi business and capitalise on Beijing’s ambition to make the RMB a global currency. Fred DiCocco, Asia-Pacific head of sales & relationship management for BNY Mellon’s Treasury Services business, says London… – Continue reading
The offshore tax affairs of a company previously headed by the economics minister are to be re-examined by the finance department of canton Bern. The move comes after Swiss Public Television, SRF, published a memo written by the Federal Tax Authorities (FTA) which raised questions about the previous investigation. The… – Continue reading
On 5 September 2014, the Governments of France and Luxembourg signed an amendment to the France-Luxembourg treaty dated 1 April 1958 (the “Treaty”), which will have an impact in the future for certain investments in French real estate. Indeed, the amendment introduces new provisions under Article 3 paragraph 4, allocating… – Continue reading
Seven Dutch financial institutions may be involved in evading taxes and are ‘extremely vague’ about what they do to ensure this does not happen, the Dutch Fair Bank Guide said on Wednesday. ABN Amro, Aegon, Delta Lloyd, ING, NIBC, Rabobank and Van Lanschot emerge as potential tax avoiders in research… – Continue reading
On 9 July 2014, Luxembourg Parliament voted a law aimed at allowing the issuance of the first Luxembourg sovereign Sukuk in response to the recent surge in investor demand for Sharia-compliant instruments. In a nutshell, the law authorizes a sale and buy-back transaction of real estate assets to a Special… – Continue reading
More to the point, extant global financial architecture facilitates transfer of illicit money through the Hawala route first to a Tax Haven, only to launder it in specialised locations like London. “There are 42,800 persons – let me repeat, only 42,800 persons – who admitted to a taxable income exceeding… – Continue reading
Ottawa (27 Aug. 2014)—Premiers and territorial leaders in Charlottetown for the Council of the Federation need to demand the federal government and the Canada Revenue Agency (CRA) stem the flow of Canadian money offshore because it is depleting revenues by at least $7.8 billion each year. Retrieving that money could… – Continue reading
Foreign Account Tax Compliance Act (FATCA) has been in force for a month and still more countries are joining the tax network. So far, 101 countries and financial jurisdictions have either signed or agreed to join FATCA. FATCA is aimed at identifying US taxpayers with offshore bank accounts and investments. Overseas… – Continue reading
NEW YORK — There’s more than one way for a U.S. company to avoid taxes by claiming a foreign address. Consider the business founded in 1916 as General Plate Co., a maker of sensors and controls for everything from Fords and Frigidaires to the spaceship that first carried Americans to… – Continue reading
Ireland can adopt ‘wait-and-see’ approach on tax breaks, says Department of Finance Ireland supports the EU review of all patent box regimes – under which certain member states offer tax breaks for intellectual property – and has decided to take a “wait-and-see approach” on the issue until guidance is provided… – Continue reading
MONTREAL • Eugene Melnyk, the billionaire owner of the Ottawa Senators and founder of drug maker Biovail Corp., is waging war against the company that now controls his one-time business. Mr. Melnyk alleges that Valeant Pharmaceuticals International Inc. is masquerading as a Canadian company to make use of this country’s… – Continue reading
Planting its European headquarters in Luxembourg has afforded Amazon significant tax advantages. That does not sit well in Britain, where members of Parliament from across the political spectrum have expressed outrage at the strategy. t would be hard to find anything better, unless, of course, you’re Cecil or Amazon. A… – Continue reading
The Isle of Man’s Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital with Luxembourg is now in force. The agreement was signed on April 8, 2013 in London between Eddie Teare MHK, the Isle of Man’s… – Continue reading
Northern Ireland looks set to be handed the power to slash corporation tax in a move with the potential to significantly boost our stuttering economy. In a development which could transform international investment, senior sources in London and Belfast predict that an announcement will be made no later than October… – Continue reading
Luxembourg has appointed HSBC and BNP Paribas as co-lead arrangers of its first issue of sovereign Islamic bonds, and is organising a roadshow for investors at the end of September, the country’s finance ministry said on Monday. The roadshow will visit London, Saudi Arabia, the UAE, Malaysia and Qatar, the ministry… – Continue reading
(CS) The Foreign Account Tax Compliance Act, more commonly known as FATCA, will be submitted to a vote at the Luxembourg parliament this autumn, before coming into force next year, Finance Minister Pierre Gramegna has revealed. In answer to a parliamentary question by CSV MP Laurent Mosar, Gramegna said that… – Continue reading
The Guardian explains why opposition to Juncker as EU President is somewhat misguided. The Grand Duchy of Luxembourg’s Ruritanian title carries a whiff of archaic glamour. But it is nothing more than a piratical state. The only difference between pirates old and new is that instead of using muskets and… – Continue reading
Taipei, July 11 (CNA) An agreement signed by Taiwan and Luxembourg on avoiding double taxation and preventing tax evasion was approved by Luxembourg’s parliament Wednesday and will take effect on Jan. 1, 2015, the Ministry of Foreign Affairs said in a statement Friday.The agreement was signed by the Taxation Agency… – Continue reading
(Reuters) – European officials have asked Luxembourg to hand over documents relating to U.S. online retailer Amazon’s tax affairs in the country, the Financial Times reported on Thursday, citing official sources. The EU’s competition commission has requested information from the Grand Duchy, where the online retailer’s main European operating company… – Continue reading
Amid a global crackdown on tax avoidance, EU competition regulators last month opened a probe into suspected tax breaks for Apple Inc. in Ireland, Starbucks Corp. in the Netherlands and Fiat Finance & Trade SA in Luxembourg. Microsoft Corp, the world’s biggest software maker, is among companies embroiled in a… – Continue reading
LUXEMBOURG/BRUSSELS (Reuters) – The European Commission is widening its probe into how multinationals use countries such as Luxembourg to cut their tax bill, an official with knowledge of the matter said on Friday. Last month, the Commission warned Ireland, another EU country that offers companies offshore tax status, that it… – Continue reading
(CS) The Luxembourg Finance Ministry on Thursday published a statement defending its tax regime, following the launch of an EU probe into deals with multinationals in several members states. The investigation aims to determine whether special tax deals could amount to illegal state aid. Affected companies include Apple, Starbucks, Google,… – Continue reading
The European Commission raised pressure on Ireland, the Netherlands and Luxembourg over their corporate tax practices, saying it was investigating deals the countries have cut with Apple, Starbucks and Fiat. The Commission, the executive body of the European Union, is looking at whether the countries’ tax treatment of multinationals that… – Continue reading
EC launches Apple tax investigation The European Commission has launched a formal investigation into Apple’s tax arrangements in Ireland The EC has announced three “in-depth investigations” into the transfer pricing arrangements on the corporate taxation of Apple, Starbucks in the Netherlands and Fiat in Luxembourg, as to whether they comply… – Continue reading
Tax breaks for Apple Inc. (AAPL:US), Starbucks Corp. (SBUX:US) and Fiat Finance & Trade SA in three European Union countries are under investigation by EU competition regulators in a clampdown on special treatment for companies. The EU is checking whether the tax deals in Ireland, the Netherlands and Luxembourg are illegal state aid, according to… – Continue reading
Reuters) – The European Commission raised pressure on Ireland, the Netherlands and Luxembourg over their corporate tax practices, saying it was investigating deals the countries have cut with Apple, Starbucks and Fiat. The EU is looking at whether the countries’ tax treatment of multinationals, which help to attract investment and… – Continue reading
Vodafone is increasingly using the tax haven of Luxembourg as a base to manage its global spending, in a move that will reignite the controversy about its tax practices. The company’s annual report, which showed the mobile giant is managing spending of €10.2bn (£8.6bn) through Luxembourg, also revealed Vodafone paid… – Continue reading
The European Union may open a formal probe as soon as next week into tax breaks that Ireland and the Netherlands use to attract international companies, according to people familiar with the case. The European Commission is scheduled to discuss the issue at a meeting June 11, said two people,… – Continue reading
The internet retail giant Amazon is facing fresh claims of tax avoidance after its latest accounts showed it routed more than £11 billion through its Luxembourg-based subsidiary in 2013 – yet paid only £4 million in UK corporation tax last year. Amazon trades through the Luxembourg subsidiary, Amazon EU SARL,… – Continue reading
Since the global financial crisis in 2008, a handful of life companies in Luxembourg have seen their businesses flourish, as high- and ultra-high-net worth individuals in certain European markets have turned to a type of single premium bond marketed by these insurers as a safe and tax-efficient place to park… – Continue reading
Luxembourg and the US have signed an intergovernmental agreement (IGA) to implement the Foreign Account Tax Compliance Act (FATCA). Luxembourg and the US negotiated a Model 1 IGA, requiring the Luxembourg Tax Administration and the US Internal Revenue Service (IRS) to exchange information automatically on accounts held by US citizens… – Continue reading
Canada is clamping down on off-shore tax shelters used by private-equity funds, in a move that may curb investment in the oil and gas industry by KKR & Co. and Blackstone Group LP. (BX) The government has given private-equity firms and other interested parties until April 11 to respond to proposals tucked… – Continue reading
The decision by Luxembourg and Austria to automatically exchange tax data with other European Union countries has isolated Switzerland in the global crusade against banking secrecy, a Tax Justice Network (TJN) expert tells swissinfo.ch. The two European Union states caved in to demands last month by signing up to the revised… – Continue reading
Luxembourg’s Prime Minister Xavier Bettel said the conclusions adopted at the recent European Council meeting on the revised Savings Tax Directive have enabled “a green light from the Grand Duchy of Luxembourg.” He expressed his satisfaction that all 28 European Union (EU) member states reached an agreement at the latest… – Continue reading
The US and Luxembourg governments have signed an agreement to improve international tax compliance and to implement the Foreign Account Tax Compliance Act (FATCA). On 27 February 2014, the Luxembourg and US negotiating teams agreed on the substance of the Model 1 Agreement. ALFI – the Association of the Luxembourg… – Continue reading
The Bahamas needs to position itself as a ‘low tax’ jurisdiction to access potential benefits from tax and investment treaties with other countries, a Tax Coalition co-chair warning yesterday that a ‘flat’ or ‘no tax ‘ posture would “cause problems”. #Robert Myers told Tribune Business that the Bahamas needed to… – Continue reading
WASHINGTON (Reuters) – Caterpillar Inc’s offshore tax strategies will come under scrutiny on Tuesday at a U.S. Senate hearing expected to examine dealings by the world’s largest mining and construction equipment maker in Switzerland, Bermuda and Luxembourg. With many multinationals being criticized for tax avoidance, veteran tax sleuth Senator Carl Levin… – Continue reading
The Luxembourg and US governments have today signed an agreement to improve international tax compliance and implement the so-called Model 1 Intergovernmental Agreement (IGA) of the US Foreign Account Tax Compliance Act (FATCA). As a result of this agreement, the Luxembourg Tax Administration has set up two working groups including… – Continue reading
As part of a plea agreement, an ex-Credit Suisse banker recently disclosed how U.S. customers avoided offshore account disclosure requirements. In an effort to crack down on offshore accounts, federal prosecutors have stepped up investigations of the largest Swiss banks, their bankers and account holders. The most recent bank to… – Continue reading
Apple, amazon, and other digital item retailers will have to charge 20% VAT starting in 2015 A long-standing tax loophole has been available in the UK that allowed buyers of digital download products to pay fewer taxes on their purchases of digital books, music, and apps. That loophole has now… – Continue reading
The European Union has formally adopted the Savings Tax Directive after six years of negotiations. The directive is intended to bolster the power of the EU to crackdown on tax evasion. The measure was adopted shortly after Luxembourg and Austria abandoned their opposition to the plan. EU tax commissioner Algirdas Semeta, commenting… – Continue reading
