Summary:A new discussion paper released by the Australian government suggests that the emergence of new financial transaction technology such as bitcoin is making it tough for the country’s authorities to clamp down on tax avoidance. The emergence of new technology is proving to be problematic for Australia’s tax system, according… – Continue reading
This article continues our series on the Base Erosion and Profit Shifting (BEPS) project, and the Action Plans that have so far been submitted, by the Organisation for Economic Co-operation and Development (OECD). We now look at Action Plan 15 on Developing a Multilateral Instrument to Modify Bilateral Tax Treaties…. – Continue reading
A vote in favor of repealing FATCA sends a message: a message to foreign banks that they can get back to helping wealthy Americans hide their assets and use offshore accounts to evade tax. In anticipation of yesterday’s Senate’s budget resolution “vote-o-rama,” Sen. Roger Wicker (R-Miss.) has introduced an amendment… – Continue reading
(CNS Business): Cayman’s leader, Premier Alden McLaughlin, was joined by the COO of Dart Enterprises at the House of Lords this week in promoting Cayman when he delivered a key-note address at the Caribbean Council reception. As McLaughlin sold the crowd on the benefits of investing in Cayman and the… – Continue reading
Irish firm featured in Luxleaks coverage has set up a new company: Glanbia Cheesip Ltd In the wake of the Luxleaks controversy last year, then chair of the Revenue Commissioners Josephine Feehily said that a company’s tax policies contained the potential for reputational risk if the strategies they were implementing,… – Continue reading
Michael Betley, group chairman of Trust Corporation International looks at how Guernsey has coped in an increasingly transparent and regulated world and how it can adapt to further change in the future. Is Guernsey positioned to navigate its way successfully through the maze of initiatives designed to penetrate the legal… – Continue reading
ISLAMABAD: A three member high level delegation of Inland Revenue-Policy Wing of the Federal Board of Revenue (FBR) will attend a three day conference on regional taxation problems in the first week of April in Japanese capital Tokyo. The conference is funded by the International Monetary Fund (IMF) as well… – Continue reading
The Abbott Government will shortly release a discussion paper on the Australian tax system. It will be the first step towards the much anticipated tax white paper. International factors should figure prominently in the white paper — specifically, how to ensure that Australia has a resilient tax system given the… – Continue reading
Internationally, Australia has been seeking to take a lead on addressing transfer pricing issues as chair of G20, with a focus on a global and coordinated approach to base erosion and profit shifting (BEPS). Domestically, the focus has been on reform of the transfer pricing regime in light of deficiencies… – Continue reading
The Organisation for Economic Co-operation and Development (OECD) has briefed leaders of the Group of Twenty (G-20) nations on recent advances towards the conclusion of its base erosion and profit shifting project, which it says may be completed ahead of schedule. The OECD presented a report to the G-20 Finance… – Continue reading
Mainland authorities are targeting tax evasion by multinationals, implementing new regulations aimed at “unreasonable” payments such as for service and royalties to overseas related parties. “The tax administration’s nationwide audit has discovered instances of multinationals in China making unreasonable payments to related parties overseas, causing the erosion of our tax… – Continue reading
On March 18, 2015, the European Commission presented a package of transparency measures aimed at tackling corporate tax avoidance and harmful tax competition within the European Union, reports Tax News. The transparency package is said to be “the first step in the Commission’s ambitious agenda for 2015 to fight tax… – Continue reading
The measure The Chancellor confirmed that the new diverted profits tax (DPT) will be introduced from 1 April 2015. DPT will apply in two distinct situations, being: Where a foreign company has artificially avoided having a taxable presence in the UK; and Where a UK company (or a UK permanent… – Continue reading
The OECD’s base erosion and profit-shifting project has dominated the international tax scene for over a year. Ever since the G-20 tasked the organization with finding solutions to the perceived problem of multinationals paying low effective tax rates, the international tax community has talked about little else. The OECD hoped… – Continue reading
1.GENERAL QUESTIONS 1.1 Why is the Commission presenting a Tax Transparency Package? The Commission has made the fight against tax evasion and corporate tax avoidance a political priority, with a view to creating a socially and economically more efficient Single Market. While much has been done to advance this agenda… – Continue reading
The International Chamber of Commerce (ICC) has responded to announcements in the Budget speech by the UK Chancellor, George Osborne. On the new diverted profits tax, John Danilovich, ICC Secretary General, said: “We welcome the UK Government’s efforts to consult business on the introduction of a ‘diverted’ profits tax in… – Continue reading
The agreement under the Foreign Account Tax Compliance Act will enable exchange of information on cases of tax avoidance through overseas entities The Cabinet on Tuesday approved the signing of an inter-governmental agreement between India and the US seeking to impose higher withholding tax on Indian companies on their US… – Continue reading
On March 13, 2015, New Zealand’s Minister of Revenue, Todd McClay, announced the Government’s tax policy work program for 2015/16, which includes key international tax reforms aimed primarily at countering base erosion and profit shifting (BEPS). In particular, the Government intends to focus on the following areas of reforms: •… – Continue reading
As the OECD/EU project on Base Erosion and Profit Shifting (“BEPS”) moves towards its next set of reports in autumn 2015, Ireland Inc.’s low tax offering has been, and will be, further refined. While the 12.5% corporate tax rate remains beyond approach both domestically and internationally, the BEPS initiative has… – Continue reading
Tax Regulation Number PER-01/PJ/2015, which is supposed to be effective starting this year, has triggered controversy within the banking industry. This is mainly due to the new obligation for banks to disclose details on every customer’s tax payments on deposits or savings interest. The Finance Minister needed to postpone indefinitely… – Continue reading
Multinational tech giants Google and Facebook could soon be charged goods and services tax on advertising booked by Australian companies if a proposal flagged by federal Communications Minister Malcolm Turnbull is adopted. While multinational corporations continue to come under fire for minimising their tax bills in Australia, Turnbull has floated… – Continue reading
The Price We Pay argues that profit-shifting by corporations is undermining democracies A new Canadian documentary draws attention to the profit-shifting tactics used by multinationals to avoid billions of dollars of taxes. Directed by Montrealer Harold Crooks, the film The Price We Pay opens this Friday in Toronto and Montreal,… – Continue reading
The Chancellor will take credit for the improving state of the economy and public finances, but real policy changes will have to wait until after the election. Chris Sanger, Head of Tax Policy at EY, comments: “With this Budget announced in the dying embers of the coalition, next week’s event… – Continue reading
Two business federations from the Netherlands and Germany have urged the Organisation for Economic Co-operation and Development to ensure that there is a level playing field under new international rules proposed for preferential regimes for intellectual property (IP) income, reports Tax News. The two organizations’ statement concerns the development of… – Continue reading
The call for tax transparency is being echoed around the globe, with ‘midshore’ centres like Bahrain and the UAE emerging as reputable, regulated and tax efficient jurisdictions A 2012 book entitled Offshore Apocalypse – The Collapse of the Tax Haven Industry, written by a team of tax-law academics, auditors, compliance… – Continue reading
Responding to widespread anger about corporate tax avoidance, the impacts of such avoidance on inequality and poverty, and concerns that current tax reform processes are inadequate, a new nonpartisan body-the Independent Commission for the Reform of International Corporate Taxation (ICRICT)-has been established to propose reforms from the perspective of the… – Continue reading
The main legal weapon used by the tax office to hunt down multinationals trying to avoid paying tax often doesn’t work, a problem that could cost the federal government billions a year. A Tax Office internal document, Offshore hubs mitigation strategy overview, said that Australia’s general anti-avoidance rule, Part IVA,… – Continue reading
Tax avoidance is being documented across the world, with Australia no exception. The government is now looking at how to clamp down on the billions of dollars being lost as top Australian firms are succeeding in dodging taxation. Last year saw the release of multiple reports highlighting the worrying number… – Continue reading
The Government of the Virgin Islands enhanced relations with the Portuguese Republic by concluding a Tax Information Exchange Agreement (TIEA) this week bringing the total signed TIEAs to 19. Deputy Premier and Minister of Health and Social Development, Honourable Dancia Penn, OBE, QC, and Secretary of State for Tax Affairs… – Continue reading
Amid mounting pressure last year, the US launched a supposed crackdown on tax inversion. But it might not have been as far-reaching as was made out, and with good reason The recent G20 crackdown on tax avoidance by funnelling profits through tax havens has sparked a variety of reactions –… – Continue reading
The recent tax scandals had revealed that HSBC bank offered a friendly advice to its private clients on how to succeed in their tax evasion attempts. This effectively shows that our societies are divided between those who have higher share of wealth (and thus greater opportunities to pursue their interests)… – Continue reading
Bill Shorten, criticised for adopting a near invisible profile as Labor Leader, outlined a “policy brief” on Monday intended to tackle multinational tax avoidance and add nearly $2 billion to consolidated revenue over three years. The four-pronged approach includes changing the so-called thin-capitalisation rules allowing corporations to claim tax deductions… – Continue reading
Government proposes to come out with a modified General Anti-Avoidance Rules by incorporating provisions of the OECD’s BEPS project so as to effectively deal with the problem of tax avoidance by MNCs. The BEPS initiative aims to ensure that taxes are paid where profits are made. Multinational companies use a… – Continue reading
When an economist presents his opinion to the public on any subject he should be asked to swear, similar to what witnesses do in a court trial, that he will follow Henry Hazlitt’s Lesson (Economics in One Lesson – Henry Hazlitt – 1946 – Harper & Brothers): “The art of… – Continue reading
Amid widespread condemnation of multinational profit shifting, Tax Commissioner Chris Jordan says the Australian Taxation Office is on track to recoup $1 billion in revenue from companies. The political pressure on the Tax Office and Treasury to stop companies such as Apple, Google and Microsoft from shifting profits to low-tax… – Continue reading
Thanks in part to past concerns that globalization could lead to double taxation, corporations have numerous techniques at their disposal to reduce their tax bills, including the placement of subsidiaries and spinoff holding companies in low-tax jurisdictions. The Group of 20 wants to change that. The Organisation for Economic Cooperation… – Continue reading
The government is set to make changes in the income tax rules to seek overseas operational details of multinational businesses that have a turnover of over R5,000 crore in India in order to decide which companies should be audited for income suppression, reports Gireesh Chandra Prasad in New Delhi. The… – Continue reading
When I consider what’s likely to have the most impact in tax this year, I keep coming back to the massive shift in attitude by tax authorities in the aftermath of the Global Financial Crisis (GFC). Usually changes in the tax world are incremental, but what is going on now… – Continue reading
According to Peter Willey, EY’s Channel Islands Head of Tax, the Channel Islands are likely to be impacted by decisions being made now in other jurisdictions. EY recently surveyed its tax policy leaders in 32 jurisdictions to ask them to forecast the tax policy outlook for 2015 in their jurisdiction…. – Continue reading
The economic downturn across the world and rising public debt seems to have led various governments, globally, to focus on curbing erosion of the tax base by shifting profits to overseas jurisdictions. Several revenue authorities, globally, were of the view that companies have structured their intra-group contractual arrangements in a… – Continue reading
Caterpillar, Inc. (CAT), the heavy equipment maker is now under scrutiny as the IRS now demands $1 billion in taxes and penalties. This should come as no shock after the company faced Senate scrutiny in 2014 over its tax plans. Tax Woes The company deals in the designing, manufacturing and… – Continue reading
A fresh drive by the European Commission to ensure companies pay their tax where they make their profits could have far-reaching consequences for Irish corporate tax revenue. Some new pieces of legislation will be presented over the next few months, but one of the biggest could be the revival of… – Continue reading
The European Commission launched its work on its ambitious agenda to combat tax avoidance and aggressive tax planning. The College of Commissioners held a first orientation debate on possible key actions to ensure a fairer and more transparent approach to taxation in the EU.President Jean-Claude Juncker has made the fight… – Continue reading
The Government may have retreated on its promises to crack down on multinational IT companies avoiding tax, but the Australian Tax Office says it’s on the case. Less than a year ago the ATO appointed Andrew Mills, a tax lawyer from outside the government bureaucracy, to the important role of… – Continue reading
Every acquisition requires careful tax planning early on in the process, especially when dealing with cross border acquisitions. One important consideration when a foreign company plans to acquire a Canadian company is the impact of any tax treaties that currently exist between the two jurisdictions. Tax treaties effectively reduce tax… – Continue reading
Firms need clear rules, certainty to remain in compliance with tax law, says expert Heightened scrutiny of foreign companies’ tax practices is a sign of China’s effort to modernize its taxation system to keep up with the fast-changing international business environment, but there is another dimension that concerns the foreign… – Continue reading
PREMIER Rufus Ewing has called out United Kingdom Opposition Leader, Edward Miliband for published statements he recently made regarding the TCI being a tax haven. Miliband is reported in the UK press as stating that the UK overseas territories (OT) are not complying with UK directives on beneficial ownership of… – Continue reading
NEW DELHI: The much-feared general anti avoidance rules (GAAR) could be deferred by about two years so that business sentiment is allowed to improve in India but will need to be rolled out in some form or the other by 2017, in sync with the international framework on preventing treaty… – Continue reading
The International Chamber of Commerce (ICC) has released the 2015 update of its policy statement on “Transfer Pricing and Customs Valuation” first issued in 2012. The statement supports companies that face the challenge of determining the appropriate related party valuation of goods in the context of disparity between governments’ customs… – Continue reading
The coalition government has failed its promise to make the UK the most competitive tax regime in the G20, according to a report by the Oxford University Centre for Business Taxation (CBT) According to the report, tax reforms pushed through the coalition government “have only marginally improved the UK’s competiveness”…. – Continue reading
