Category: Jurisdiction

Govt prepares strategies for withdrawing funds kept in Singapore

Batam, Riau Islands (ANTARA News) – Indonesias finance ministry is preparing four strategies to withdraw funds worth Rp1,500 trillion kept in Singaporean banks, an official stated here on Wednesday. “We are preparing four strategies,” remarked Deputy Minister of Finance Bambang Brodjonegoro. The four strategies are tax incentives, eradication of double… – Continue reading

EU shelves plan to shine light on tax paid by multinationals

(Reuters) – Plans to make companies reveal how much tax they pay country by country were abandoned on Wednesday, knocking back the efforts of lawmakers who had pushed to curb tax avoidance by multinational businesses. Schemes used by Starbucks (SBUX.O), Apple (AAPL.O), Amazon (AMZN.O) and other corporations operating within the… – Continue reading

‘Drop in new India-focused funds in Mauritius’

The Vodafone tax issue has affected investor sentiments towards India: ABAX Corporate CEO NEW DELHI, FEBRUARY 26: The Vodafone tax dispute and General Anti-Avoidance Rules have impacted investor sentiment badly. Coupled with the delay in revising the Double Taxation Avoidance Agreement (DTAA) with Mauritius, fund flow from the island-nation has… – Continue reading

Cyprus: Signing Of Agreement For The Avoidance Of Double Taxation Between Cyprus And Norway

The Cyprus government has announced the signature of a new double taxation agreement with Norway. Double taxation avoidance between Cyprus and Norway is currently regulated by the 1951 double tax agreement between Norway and the United Kingdom, which was extended in 1955 to include several British colonies, including Cyprus. On… – Continue reading

Canada: IGA Requires Canadian FFIs To Register On IRS FATCA Portal

As noted in our previous post, the recently signed Inter-Governmental Agreement between the Canada and the U.S. relating to FATCA (the IGA) will modify the FATCA reporting obligations for Canadian financial institutions. Under the IGA, the term “Financial Institution” (or “FI”) includes custodial institutions, depository institutions, investment entities and specified insurance companies. For… – Continue reading

U.S. Expands Investigations Against Offshore Tax Evasion To India, Israel

WASHINGTON: The U.S. has expanded its action against tax cheaters to countries such as India, Israel and Liechtenstein, a top U.S. official told lawmakers. So far, the U.S. action was primarily focused against tax cheaters on Switzerland. Since 2009, the Department has publicly charged 73 account holders and 35 professionals… – Continue reading

Cyprus: Signing Of Agreement For The Avoidance Of Double Taxation Between Cyprus And Norway

The Cyprus government has announced the signature of a new double taxation agreement with Norway. Double taxation avoidance between Cyprus and Norway is currently regulated by the 1951 double tax agreement between Norway and the United Kingdom, which was extended in 1955 to include several British colonies, including Cyprus. On… – Continue reading

IRS Continues to Target Accounts in Israel, Caribbean Island Nations: Bank Mizrahi Depositor Pleads Guilty

  Kevin Thorn of the Thorn Law Group comments on the recent guilty plea by a United States Taxpayer with undisclosed overseas bank accounts as one in a long line of ongoing IRS and DOJ investigations into U.S. citizens with hidden overseas bank accounts. Thorn observes the U.S. government’s expanded… – Continue reading

Australia’s new transfer pricing laws overlap the thin cap rules: new challenges for taxpayers

The overlap of Australia’s new transfer pricing laws with the thin capitalization rules is causing challenges and likely duplication of analysis for taxpayers – particularly for the arm’s length amount-of-debt test. Australia legislated comprehensive new transfer pricing laws in 2012[i] and 2013.[ii]  These laws were passed in two installments: Subdivision 815-A, dealing with… – Continue reading

National News: Tax havens must be taken seriously

New Democrat MP Pierre Dionne Labelle (Rivière-du-Nord) has tabled a motion in the House of Commons demanding accountability from Conservatives for their continued failure to bring an end to the billions of dollars lost through tax evasion. “Conservatives have repeatedly demonstrated their gross underestimation of the scope of this multi-billion… – Continue reading

Europe’s crackdown on shell firms puts spotlight on Africa

The chickens are quietly coming home to roost. In Europe, that is. For a long time, multinational companies have created shell companies – those offices where, beyond furniture and a teapot, there is hardly any business going on – to mainly pay lower tax and move illicit funds. These opaque… – Continue reading

Switzerland to speed up measures against tax evasion

Switzerland must adopt a position on sharing bank client data with foreign tax authorities more quickly than originally thought and cannot hold back until all other countries have introduced the practice, its finance minister told a Swiss newspaper. So far, 42 countries have declared an interest in automatically sharing information… – Continue reading

UK Government and HMRC Announce Crack Down on Tax Evasion

UK Government and HMRC Crack Down on Secret Bank Account Tax Evasion. Here, International Monetary Fund (IMF) Managing Director Christine Lagarde (L) chats with Osborne before the G20 round table meeting in Sydney.Reuters Britain’s government and its taxman have announced the net is closing on people who are evading tax… – Continue reading

G20 gives Google, Microsoft, Apple et al tax deadline

G20 finance ministers speak loudly, mention big stick The world’s top 20 finance ministers have signalled once again that they’re sick of their taxes disappearing offshore and have signalled a strong intention to get their cash back. The ministers in question are all members of the Group of Twenty (G20)… – Continue reading

U.S. scrutinizing Swiss insurers in offshore probe – WSJ

Feb 24 (Reuters) – U.S. prosecutors are widening their probe of how Swiss banks helped wealthy Americans avoid taxes to look at insurers as well, the Wall Street Journal reported on Monday, citing unnamed sources. Insurers in Switzerland have been preparing for months for U.S. officials to investigate products known as insurance… – Continue reading

HMRC’s Offshore Tax Avoidance Campaign

HMRC have launched a brand new offshore tax avoidance campaign, showing the strangely attractive eyes of HMRC leering at you through a map of the modern world. What do we think about this new approach from the taxman? Offshore tax avoidance was a piping hot potato in 2013, much publicised… – Continue reading

Gibraltar’s financial services centre rebrands, restructures

A major rebranding and restructuring of Gibraltar’s financial services industry, aimed at raising its competitive profile and increasing its focus on particular market sectors, is under way, overseen by minister for financial services and gaming Albert Isola. The restructuring is seen as having its origins in Gibraltar’s last general election,… – Continue reading

US Senate panel says Credit Suisse actively sought US tax dodgers

Credit Suisse Group , Switzerland’s second biggest bank, went to great lengths to assist US customers trying to open Swiss bank accounts and evade taxes, entertaining them at a Swiss-themed ball in New York and golf tournaments in Florida and opening a branch in the Zurich airport to serve Americans… – Continue reading

Panel faults US gov’t over offshore tax evasion

WASHINGTON (AP) — Billions of dollars in U.S. taxes are going unpaid because Americans are exploiting Swiss bank accounts, and the U.S. government has failed to aggressively pursue Switzerland’s second-largest bank, a Senate investigation has found. The bank, Credit Suisse, has provided accounts in Switzerland for more than 22,000 U.S. clients… – Continue reading

Senate Investigations Committee To Question DOJ And Swiss Officials On Illegal Offshore Banking

NWC calls for full and complete investigation into wrongdoing and full protection for whistleblowers Washington, D.C.  February 25, 2014.  The Permanent Subcommittee On Investigations will hold a hearing on “Offshore Tax Evasion” on Wednesday, February 26, 2014, at 9:30AM, in Room G-50 of the Dirksen Senate Office Building. More information can be found… – Continue reading

Ortega’s Zara Fashions Tax Avoidance by Shifting Profits to Alps

Zara’s celebrity chic helps make its Spanish parent company, Inditex SA, the world’s biggest fashion retailer. Singer Taylor Swift, reality-television personality Kim Kardashian and Kate Middleton, Prince William’s wife, have all been spotted wearing the stylish, low-cost brand. Another reason for Inditex’s industry-best profit margins of almost 15 percent: the… – Continue reading

UPDATE 1-China, UK discuss setting up yuan clearing bank in London – Osborne

HONG KONG, Feb 20 (Reuters) – The British and Chinese governments are in active discussions about setting up a clearing bank in London for China’s currency, a milestone that will put the city in a leading position to offer yuan trade business in Europe. Taking a leaf out of Hong Kong’s blueprint in being… – Continue reading

Offshore Tax Evasion Will Be Focus of Senate Hearing

The U.S. Senate Permanent Subcommittee on Investigations will hold a hearing on a crackdown on offshore tax evasion that has stalled as prosecutors conduct criminal probes of 14 banks, including Credit Suisse Group AG. (C:US) The hearing will focus on “the status of efforts to hold Swiss banks and their U.S. clients… – Continue reading

Multinationals unfazed by G20 tax crackdown

The G20 finance ministers have once again agreed to cooperate to counter aggressive cross-border tax avoidance by multinationals. Many US firms are using tax avoidance schemes for their non-US earnings while they shamelessly claim they are paying appropriate taxes in the source countries in which they operate. The OECD responded to earlier… – Continue reading

Double taxation agreement with Norway

CYPRUS and Norway on Monday signed an agreement for the avoidance of double taxation. A statement said the text agreed between the finance ministries of the two countries would contribute to the further development of trade and economic relations between Cyprus and Norway, as well as other countries. “The updating,… – Continue reading

United States: To Avoid FATCA Withholding, Foreign Financial Institutions Must Register With IRS By April 25, 2014

The Foreign Account Tax Compliance Act (“FATCA”) requires foreign financial institutions (“FFIs”) to disclose the foreign accounts of U.S. taxpayers to the Internal Revenue Service (“IRS”). FFIs that fail to comply with FATCA will be subject to a 30% withholding tax on certain U.S. source income starting July 1, 2014…. – Continue reading

Worldwide: Luxembourg, Liechtenstein, Malta, Greece, Iceland And Colombia Commit To Automatically Share Tax Information

Back in April 2013, the G5 Governments agreed to work together on a pilot scheme on multilateral and standardized exchange of tax information, with a new initiative on information exchange, based on the so-called FATCA (Foreign Account Tax Compliance Act) exchange model. Luxembourg, Liechtenstein, Malta, Greece, Iceland and Colombia have… – Continue reading

GIBRALTAR WIDENS TAX EXCHANGE NETWORK

Parliament unanimously approved new legislation on Friday that will dramatically expand Gibraltar’s network of agreements for the exchange of tax information. The legislation implements the OECD’s Convention on Mutual Administrative Assistance in Tax Matters in Gibraltar ahead of the March 1 deadline. The move is part of the Government of… – Continue reading

G-20 Agrees on Automatic Tax Data Sharing, OECD Says

Group-of-20 nations agreed to implement a global standard for automatically exchanging information between tax authorities by the end of 2015, the Organization for Economic Cooperation and Development said. The endorsement is a step toward putting an end to “banking secrecy as we know it,” Pascal Saint-Amans, director of the OECD’s… – Continue reading

Income Tax department finalises response to Vodafone’s BIPA notice

NEW DELHI: The Income Tax department plans to rebut Vodafone’s notice under BIPA saying that the pact between India and Netherlands does not cover taxation issues. The response to the Bilateral Investment Promotion and Protection Agreement (BIPA) notice was finalised after a meeting of the inter-ministerial group, headed by the Finance Secretary. The other… – Continue reading

Barbados To Expand Double Taxation Network

Barbados’ financial-services sector is rated as the second-largest source of foreign exchange earnings, behind tourism, for which new markets are being sought outside of Canada. On Thursday, central bank governor, Dr DeLisle Worrell, said the country has been losing business in its International Business and Financial Services Sector (IBFS), which… – Continue reading