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
Pretoria – Trade between African countries remains low, despite efforts to harmonise taxation to allow for the free movement of goods and services. Tax experts this week warned mistrust between countries remains the greatest detractor to achieve harmony and increase intra-trade. Intra-Africa trade was only 11.3 percent of the continent’s… – Continue reading
Fundamental to any developed tax policy is knowing who the taxpayer is (or should be) with respect to any particular transaction. Although that can be relatively straightforward in purely domestic situations, a cross-border dimension can present different answers to this question in the jurisdictions involved and lead to issues over… – Continue reading
Having saved for most of their life to amass an income to use in retirement, most people get to a certain age and start to think about drawing on those financial reserves as they wind down from the daily grind. When that money is held in an international pension plan… – Continue reading
Tax Reform Still in Ryan’s Sights Despite Boehner’s Departure Last week, following the sudden announcement by House Speaker John Boehner (R-OH) that he would be stepping down from Congress at the end of October, House Ways and Means Committee Chairman Paul Ryan (R-WI) and various other Committee members quickly confirmed… – Continue reading
Jeremy Corbyn’s shadow chancellor has caused a stir with his idea that big businesses should pay their taxes. Speaking at the Labour Party conference in Brighton, John McDonnell named and shamed big companies over their tax arrangements. ‘Labour’s plan to balance the books will be aggressive,’ he said. ‘We will… – Continue reading
A Labour government would target Starbucks, Amazon and Google and force them to “pay their fair share of taxes”, the shadow chancellor has warned. John McDonnell promised to tackle the deficit by targeting corporate tax avoiders and not by hitting the poorest in society. In his first speech to the… – Continue reading
The UK’s tax treatment of US limited liability companies (LLCs) will remain mostly unchanged despite a recent Supreme Court decision in favour of the taxpayer, HM Revenue and Customs (HMRC) has confirmed.25 Sep 2015 HMRC said that the decision of the UK’s highest court in favour of George Anson, a… – Continue reading
The Foreign Account Tax Compliance Act, passed in 2010, is a tool devised to help the U.S. locate funds of U.S. citizens being held in foreign banks. (See this earlier FATCA report on LBN). The law requires foreign banks to report data about accounts owned by U.S. citizens to the… – Continue reading
The Internal Revenue Service has entered into landmark Competent Authority Agreements with authorities in Australia and the United Kingdom to support the implementation of the Foreign Account Tax Compliance Act (FATCA). The US has signed FATCA intergovernmental agreements with both of these nations. Each of these agreements provides that Competent… – Continue reading
Tax residency of Jersey companies Jersey companies may (contrary to the default position) be treated as exclusively tax resident in jurisdictions other than Jersey pursuant to Article 123(1)(a) of the Income Tax (Jersey) Law 1961. The criteria for a Jersey incorporated company to be resident (for taxation purposes) in a… – Continue reading
Tax avoidance is a key problem for European countries, with the EU taking several steps to try and limit the ability of businesses to shift their profits to low-tax jurisdictions. Peter Dietsch writes on the nature of the problem and what can be done to tackle it. He argues that… – Continue reading
It could become more expensive for regulated online poker operators to offer services in the ring-fenced Italian marketplace thanks to a proposal to introduce a new “Digital Tax” beginning January 1, 2017. Economy Undersecretary Enrico Zanetti confirmed that if the tax becomes law, it will be levied on online gambling… – Continue reading
Unpredictable and excessive taxes are pushing the British banking sector to the brink, according to a major new report by a leading industry body, reports City AM. The British Bankers’ Association (BBA) and PwC reveal that the UK banking sector contributed an estimated total of £31.3bn in taxes last year,… – Continue reading
For years it has been the currency of the Costa, as criminals simply can’t do business without a bag of ‘black money’. Judges, solicitors and local councils have been prone to their cut on every transaction and complex property transfer for decades. However, now the Spanish are finally cracking down… – Continue reading
The Indian Government must assure investors that it is committed to improving its legal framework, including the tax code, if it is to meet its economic objectives, a senior US State Department official has said. Ahead of Indian Prime Minister Narendra Modi’s visit to the US this week, Nisha Desai… – Continue reading
A new wave of global tax compliance regulation is a game changer in the way asset owners and investment management companies report activities. Globalization of financial markets has made it increasingly simple to make, hold and manage investments outside an asset owner’s own tax domicile. A standard on automatic exchange… – Continue reading
Contractors and freelancers who have been told by Her Majesty’s Revenue and Customs’ (HMRC) Accelerated Payments Team that they owe back-taxes, are being given 90 days to pay even if there is a dispute about whether or not there is an existing debt, reports The Telegraph. As part of new… – Continue reading
Revenue is telling ordinary workers to ‘pay now, argue later’ using new powers to demand tax allegedly owed from years ago – up front Thousands of contractors and freelancers have become ensnared in a £5.5bn tax grab – aimed initially at wealthy tax dodgers – that allows HM Revenue &… – Continue reading
GCC countries are expected to “closely consider” a project that aims to curb perceived tax avoidance by some multi-national companies, according to an international tax expert. Under intense public pressure and unprecedented media focus, leaders of the G20 countries tasked the Organisation for Economic Co-operation and Development (OECD) to come… – Continue reading
High-net-worth, tax-evading South Africans will soon have nowhere to hide, because in future income tax returns will specifically ask them to declare if they have offshore trusts, or directly or indirectly control an offshore trust, Judge Dennis Davis, the convener of the Davis Tax Committee, says. If the South African… – Continue reading
Welcome to this special edition of Jones Day’s Global Tax Update. Almost two years ago, the Organisation for Economic Co-operation and Development (“OECD”) launched a radical and far-reaching review of the international tax system. The project’s name, BEPS (base erosion and profit shifting), provides a good insight into its objectives:… – Continue reading
HMRC has today published new draft guidance notes to cover the automatic exchange of financial account information under the International Tax Compliance Regulations 2015 (SI 2015 No. 878) (the Regulations), which were made in the spring. The main document is a new draft HMRC guidance manual covering the Regulations. The… – Continue reading
UK tax authority HM Revenue and Customs (HMRC) has published an e-brief on the Scottish Rate of Income Tax (SRIT), which is due to enter into effect from April 2016. From April 1, 2016 the Scottish Parliament will have responsibility for a SRIT. Parliament will be able to set the… – Continue reading
Banks are threatening to close accounts of British expats living in the USA if they fail to complete piles of paperwork to comply with the Foreign Account Tax Compliance Act (FATCA). Millions of US expats worldwide are already caught by the law which requires foreign financial institutions to supply details… – Continue reading
Specialist tax advice looks set to be the biggest area for adviser business growth as pension freedoms takes effect and retirement planning becomes more complex, according to recent research by Prudential. Offshore, inheritance tax, business and retirement planning advice are named as potential growth areas as more advisers expect to… – Continue reading
Hong Kong’s Financial Services Development Council (FSDC) has released a report setting out recommendations on policies, including tax measures, to enhance the city’s role as a regional and global financial booking center. Financial institutions utilize such centers to enter into contracts for financial products, undertake primary obligations for delivery or… – Continue reading
Past Progress and Prospects Harmful tax practices (e.g., tax havens, preferential tax regimes, tax rulings) are characterised by the propensity to erode tax bases of other countries which allegedly leads to an undesirable race-to-the-bottom on taxation rates. Action 5 of the OECD Action Plan on Base Erosion and Profit Shifting… – Continue reading
Economist Richard Murphy, a long-standing critic of the Channel Islands, has told ITV News he believes the Bailiwicks are secretive “tax havens” that undermine the UK’s tax system. We spoke to him immediately after today’s Prime Minister’s Questions, where Jeremy Corbyn spoke for the first time as leader of the… – Continue reading
Changing Attitudes to Tax Reputation Risk In recent years, it seems that any discussion of tax includes mention of the moral obligation taxpayers have to “pay their fair share.” Many believe this theme began to get traction in 2011 when Warren Buffett realized that he was paying proportionately less taxes… – Continue reading
IN SPITE of the challenges from large developing countries, assurance has been given that Barbados is sticking with the International Business and Financial Services sector. This is according to Prime Minister Freundel Stuart, who used the opportunity over the weekend to commend Minister of International Business, Donville Inniss, for his… – Continue reading
Administrators of tax-qualified retirement plans (or their delegated payor) are responsible for both withholding on distributions and for reporting the tax withheld. If taxes are under-withheld, the administrator/delegated payor may be subject to penalties. Although the rules governing withholding on distributions to US citizens and resident aliens are clear and… – Continue reading
Google’s CEO may be “proud” of the way his company avoids taxes, but a Canadian tax watchdog group thinks the tech giant’s tax practices should disqualify it from partnering in a Canadian election debate. The Globe and Mail is hosting a leaders’ debate on the economy Thursday night in partnership… – Continue reading
HM Revenue and Customs (HMRC) has used its Accelerated Payments powers to collect GBP1bn (USD710m) from users of tax avoidance schemes. HMRC began sending Accelerated Payment Notices (APNs) to UK users of certain tax avoidance schemes in August 2014. The notices give recipients 90 days to pay the tax in… – Continue reading
HM Revenues & Customs (HMRC) has collected £1 billion from users of tax avoidance schemes after introducing new rules to collect disputed tax upfront. The government introduced the Accelerated Payments regime last year to change the economics of avoidance where disputed tax is paid upfront by avoidance scheme users, who… – Continue reading
As Big Four accountancy firm PwC publishes its annual report Madeline Ratcliffe talks to chairman Ian Powell. PWC, ONE of the world’s largest financial services companies, will today report their full year profits increased by six per cent, to £818m, reflecting a policy of growth and investment over the last… – Continue reading
Many countries have enacted a patent box regime in order to spur innovation and create domestic manufacturing jobs. Simply stated, a patent box regime provides a lower tax rate on income from the exploitation of patented goods than for other income. Among the countries that have patent box regimes are… – Continue reading
An initiative intended to catch tax dodgers could have a negative impact on those with perfectly legitimate bank accounts. Tax expert Howard Bilton offers advice The draconian Foreign Account Tax Compliance Act (FATCA), introduced by the US Government to tackle tax evasion by its citizens, has already affected Britons living… – Continue reading
Indonesians hold $300 billion in Singapore; controversial tax amnesty on the cards. Indonesia’s finance minister Bambang Brodjonegoro told Euromoney earlier this year that tax collection falls way short of targets and must improve to provide funding for infrastructure and other projects It doesn’t take much for Indonesia’s government officials to… – Continue reading
After reopening investigation into HSBC clients hiding money in Switzerland, HMRC admits it has still only prosecuted one tax cheat, reports The Guardian. HM Revenue and Customs (HMRC) is winding down its inquiries into hundreds of British customers who used HSBC’s Swiss bank to evade tax, a senior official has… – Continue reading
LONDON–Royal Bank of Scotland Group PLC (RBS.LN) has sold a portfolio of corporate-loan commitments related to its banking business in China for 498 million pounds ($755.1 million), as part of the bank’s strategy to focus mainly on U.K. and European customers. RBS said it has reached an agreement with China… – Continue reading
LAND including Riverside Retail Park, the Cockhedge Centre and the former site of Mr. Smith’s is owned by companies based in offshore tax havens it has been revealed. Companies are often based offshore to gain from three tax loopholes, including no capital gains tax, no inheritance tax and no stamp… – Continue reading
The Financial Services Compensation Scheme (FSCS) has begun processing about 150 individual claims related to advice to invest in tax ‘mitigation’ schemes after being given the green light by lawyers. The organisation said it had been receiving claims in relation to advice to invest in 80 different tax schemes, including… – Continue reading
In the first meeting between HMRC officials and the new parliament’s Public Accounts Committee (PAC), MPs praised the Revenue’s work but called for urgent improvements to customer service and transparency Labour MP Meg Hillier, who replaced Margaret Hodge as the PAC’s chair, opened proceedings by telling HMRC permanent secretary Lin… – Continue reading
Isle of Man Government chief minister Allan Bell has predicted a wave of negative campaigning focused on the Isle of Man and the other crown dependences, if Jeremy Corbyn wins the leadership of the UK’s Labour Party. Bell identified Corbyn’s chief economic adviser as the offshore critic Richard Murphy, an… – Continue reading
It was an American statesman, Benjamin Franklin, a gentleman of reputedly many talents, who is credited with the widely spoken remark, ‘in this world nothing can be said to be certain, except death and taxes.’ Technically, none of us lives forever and paying taxes is a part of life. Dodging… – Continue reading
HMRC’s recovery of tax quicker than projected Recent figures released by HMRC record the progress that they have made in seeking early repayment of tax under the Accelerated Payment Notice (APN) regime. This was introduced by the Finance Act 2014, which gave HMRC the power to serve tax demands where… – Continue reading
The international financial sector faces a perilous future. Major challenges loom over an uncertain global economy, while a decidedly negative political climate poses an existential threat to the offshore financial community. With each passing year, thanks to demographic changes and poorly designed fiscal policies, politicians from high-tax nations will be… – Continue reading
Multinational companies are facing far more expansive and complex audits by tax authorities fighting over the same pot of profits as budget deficits continue to increase, reports BD Live. An inevitable outcome of efforts globally to prevent tax bases from erosion is double taxation and increased disputes over adjusted assessments… – Continue reading
The Isle of Man, located in the Irish Sea between England and Ireland, is a self-governing country with population a little over 85000. The island has seen three decades of continuous economic growth and has embraced emerging technological innovations with open arms, including satellites and cellular service. It is now… – Continue reading
