Category: Double Taxation

Find better ways to bring back black money: PMO to tax department

New Delhi: Aiming to intensify government’s drive on black money, the PMO has asked the revenue department to look for ways other than bilater24al tax treaties to bring back funds stashed abroad. The Prime Minister’s Office (PMO) has suggested the tax department to think of other ways to tackle the… – Continue reading

Base erosion and profit shifting – a South African perspective

The concept of base erosion and profit shifting (BEPS) has been debated at various international forums following discussions at the G20 Finance Ministers and Central Bank Governors meeting and the G20 Heads of State summit in Russia last year. The Organisation for Economic Co-operation and Development’s (OECD) BEPS Action Plan… – Continue reading

Base erosion and profit shifting – treaty shopping

The concept of base erosion and profit shifting (“BEPS”) has been much discussed at various international forums including the G20 Finance Ministers and Central Bank Governors meeting in July 2013 in Moscow as well as the G20 Heads of State meeting in September 2013. From a South African perspective, the… – Continue reading

Clampdown on tax avoidance

By closing the tax gap, South Africa can reap billions of rands to benefit the economy. A global crackdown on tax avoidance has begun and South Africa is forging ahead in a bid to tackle wealthy individuals and corporates who practise this tactic. The initiative is better poised to succeed… – Continue reading

Peter Costello offers tax advice to Abbott government, defends fossil fuel investments

Former treasurer Peter Costello and Future Fund chairman appears before the Finance Estimates committee at Parliament House. Photo: Andrew Meares Former treasurer Peter Costello has offered some veiled advice to the Abbott government on how to collect more tax revenue, saying it would be easier to tighten Australia’s domestic tax… – Continue reading

Fruitless pursuit of black money

People curious to know the amount of “black money” stashed by Indians in foreign banks may be in for yet another disappointment after the Supreme Court monitored Special Investigation Team (SIT), submits its findings. After six months in office, the Narendra Modi Government has not been able to lay its… – Continue reading

East Africa: EAC Tax Variance Still a Major Hurdle – Kam

REGIONAL businesses continue to suffer from double taxation three years after a plan to harmonise taxes was approved, causing a delay in realisation of East Africa Community integration benefits. Kenya Association of Manufacturers CEO Betty Maina said the tax issue needs to be urgently addressed by ensuring all member countries… – Continue reading

Rates Cut In New Canada, Spain DTA Protocol

Canada and Spain have signed a Protocol to their income tax convention which, when implemented, will reduce the withholding tax rates applicable on payments of dividends and interest. The Protocol was inked on November 18, 2014, by Canada’s Ambassador to Spain, Jon Allen, and Spain’s Finance Minister, Cristóbal Montoro. The… – Continue reading

FATCA: Are Transnational Criminal Networks Influencing US Policy?

The New York Times’ report on prominent American think tanks receiving some $92 million from a minimum of 63 governments since 2011, prompted Rep. Frank Wolf (R-Va.) to ask Attorney General Eric Holder, a long overdue question: “Should think tanks be allowed to take undisclosed donations from foreign governments?” According… – Continue reading

Cyprus: Cyprus India Relations – Cyprus May No Longer Be A Tax Haven For Funds Or May It?

A publication in the Economic Times has caused much debate in India since after blacklisting Cyprus for not sharing information on tax evaders, India is now looking to take away the favourable tax treatment available to investors from the European tax heaven under the bilateral tax treaty between the two… – Continue reading

India economy not yet mature for GAAR: ASSOCHAM

Apex industry body ASSOCHAM has urged the Centre to amend the Indian income-tax law so as not to introduce the general anti avoidance rules (GAAR) from assessment year 2016-17 as India’s economy is neither mature enough to stand up to its exacting standards nor is the tax administration ready to… – Continue reading

Black Money – Will Agreement with USA help?

The Writ Petition filed by the NDA Government in mid-October consists of two parts. The first part deals with the issue of Double Taxation Avoidance Agreement [DTAA], the information obtained from Liechtenstein through Germany and confidentiality obligations of Indian Government under the said DTAA. I had dealt extensively on this… – Continue reading

The growing threat of wealth taxation

At the September 2014 convention of American labor unions, Senator Bernie Sanders of Vermont specifically urged taxation of wealth, asserting that, “We need a tax system which asks the billionaire class to pay its fair share of taxes and which reduces the obscene degree of wealth inequality in America.” The… – Continue reading

Angry Supreme Court demands black money list TODAY: 800 names could surface as Modi government is accused of protecting the guilty

Furious at what it sees as the Modi government’s flip-flops on the black money issue and selective revelation of names of Indians holding foreign bank accounts, the Supreme Court on Tuesday ordered it to disclose by Wednesday the names of around 800 holders of accounts abroad. A bench led by… – Continue reading

Tax must be paid on dividend unless rules change

Dividend represents a share of the company’s post-tax profit that is divided among its shareholders. In other words, once corporate tax has been paid on profit, the remaining earnings are distributed amongst shareholders as dividend. So far, so good. Then, this dividend is characterised as income in the hands of… – Continue reading

Black money row: Left says BJP and Centre stand exposed

New Delhi: Communist Party of India (Marxist) leader Brinda Karat on Saturday criticized the Prime Minister Narendra Modi-led NDA Government at the Centre for not disclosing the names of persons having money stashed away in safe havens abroad, and alleged that it exposed the utter hypocrisy and double standards of… – Continue reading

Khalifa issues decrees

ABU DHABI: President His Highness Sheikh Khalifa Bin Zayed Al Nahyan has issued a number of federal decrees with respect to ratifying agreements with a number of brotherly and friendly countries and setting up new consulates abroad. The decrees were published in the recent issue of the federal official gazette.Khalifa… – Continue reading

Everything That’s Wrong with the US Tax System in One Chart

Last week the Tax Foundation released its annual International Tax Competitiveness Index for 2014. The United States ranked 32 out of 34 OECD countries surveyed. Only Portugal and France got lower competitiveness scores, and not by much. As if that were not bad enough, the competitiveness score is only half… – Continue reading

Tax information: Cyprus accepts India’s condition

Cyprus has accepted a key condition put forward by India on effective exchange of information on tax avoiders Cyprus has accepted a key condition put forward by India on effective exchange of information on tax avoiders, hoping its move, which comes amid continuing talks on amending their mutual tax treaty,… – Continue reading

How to Avoid Foreign Dividend Withholding Tax

Using foreign stocks to diversify your portfolio can be a good move for investors looking to collect dividends and protect capital. But owners of dividend paying foreign stocks can find themselves being hit by another type of tax: foreign dividend withholding tax. Keeping as much of your dividends as possible… – Continue reading

Weighing tax benefits of S corporations

Factors to consider in deciding which type of incorporation is best for you AS TAX LAWS continue to evolve, so do choices of entity. Being mindful of the alternatives is critical to achieving tax benefits. Both S corporations and Limited Liability Companies (LLC’s) are flow-throughs, which have long been a… – Continue reading

Franking credits a key part of Australia’s economic machine

The sharemarket has settled into a consolidation phase at between 5400 and 5600 index points, mirroring changes in overseas markets. While analysts are confident the current reporting period will not produce unexpected changes to their forecasts, international political instability makes further upward movement in prices unlikely. Compared with overseas markets… – Continue reading