Croatia, USA start talks on avoidance of double taxation
Dividends for tax non-residents are taxed at a rate of 30%, which causes significant problems for Croatian companies and makes them uncompetitive. ... - Continue reading
Category: Forms
QIB continues to introduce new features on its award-winning mobile application
Qatar Islamic Bank (QIB) has introduced new features to its award-winning Mobile App, in line with the bank’s ongoing efforts to provide customers with innovative digital options to fulfill all their banking needs remotely.Developed with customers’ daily banking requirements in mind, the QIB Mobile App now allows customers to benefit from new and simplified features, including the postponement of their Personal Finance Monthly Installment, opening the exclusive Certificates of Deposit for COVID-19 frontliners, filling and submitting the Common Reporting Standard (CRS), and completing Foreign Account Tax Compliance Act (FATCA) declarations. ... - Continue reading
Sweden’s tax agency rejects Puma’s transfer pricing position, concludes risk borne elsewhere
The Swedish tax agency has adjusted the taxable income for the PUMA Group’s Swedish distributor, Puma Nordic AB, concluding that, for transfer pricing purposes, the Swedish distributor could not control the main risks in the Puma Group and therefore should not have carried the local market risks. The adjustment, made… – Continue reading
IRS Reminds International Taxpayers of Filing Obligations
The Internal Revenue Service (IRS) has reminded certain non-US citizens, such as international students and scholars working or receiving scholarship funds, that they may have special requirements to file a US tax return. The IRS also reminded withholding agents, such as payroll professionals or universities, that accurately filed Forms 1042-S,… – Continue reading
IRS Proposes New QI Agreement for Foreign Banks to Comply with FATCA
The Internal Revenue Service has released new guidance on how foreign financial institutions can enter into a Qualified Intermediary agreement with the U.S. under the Foreign Account Tax Compliance Act, or FATCA. Notice 2016-42, released earlier this month, outlines the proposed QI agreement, which revises and updates the current agreement… – Continue reading
Panama To Join Automatic Tax Info Exchange Deal
Panama announced on July 15, 2016, that it intends to sign the Multilateral Convention on Mutual Administrative Assistance in Tax Matters. Pascal Saint-Amans, Director of the OECD’s Centre for Tax Policy and Administration, said: “We very much welcome Panama’s request to join the Convention. Signing and ratifying the Convention will… – Continue reading
Panama Papers Point to Tax Evasion
It was quite a revelation when leaked documents, made public in April, showed that Mossack Fonseca, a Panamanian law firm, had helped 14,000 clients worldwide create offshore accounts to conceal assets or dodge taxes. On Monday, a report by The Times found that there were at least 2,400 clients based… – Continue reading
Google tax kicks in starting June 1
The finance ministry has notified that the equalisation levy (popularly known as Google tax) introduced in this budget, will come into force from June 1. As of now, it will apply to payments for online advertisements made by Indian business entities to non-residents (such as Google,Yahoo, Twitter, Facebook) where the… – Continue reading
FATCA documentation for US-based trusts
Introduction Even though a trust may be established under the laws of a US state and have a US trust company serving as trustee (hereinafter a ‘US-based trust’), this does not mean that it is a US domestic trust for income tax purposes. If non-US persons make substantial decisions for… – Continue reading
Mexico: Multilateral Agreement For Automatic Exchange Of Transfer Pricing Documentation
On January 27, 2016, 31 Countries (among them Mexico) signed the Multilateral Competent Authority Agreement for automatic exchange of Country-by-Country reports (the “Agreement”) to be received from their taxpayers as part of the implementation of Action 13 of the Base Erosion and Profit Shifting Action Plan issued by the Organisation… – Continue reading
Beware tax payers! Evasion can cost you hefty punishment
Tax evasion has always been a criminal offence in India. Few know that this can even land you in jail. Persecution in any related offence can come under Chapter XXII of the Income-tax Act, 1961. Under this act, 3-6 months of rigorous jail will be given to offenders under these… – Continue reading
A closer look at the flat tax
Another form of taxation that has gotten greater attention during the last two presidential election campaigns is the flat tax. A flat tax is a plan that will apply the same rate to every taxpayer, regardless of the income they have earned. At present, federal taxes are calculated on a… – Continue reading
What to consider before doing business outside the U.S.
Before conducting business outside of the U.S. for the first time, a company must establish the business case for doing so. That means looking beyond just the profit potential on the product or service to the other costs that can be involved, of which there are many. “The culture of… – Continue reading
Countries that accept BEPS minimum standards may participate in global tax effort, OECD says
Any country that agrees to adopt the OECD/G20 base erosion profit shifting (BEPS) project minimum standards and pay an annual fee will be allowed to participate in future BEPS project work, according to a plan agreed to by the OECD today. The OECD’s framework for BEPS plan implementation, to be… – Continue reading
Subsidies will not be eliminated but better targeted, says Modi
Modi promised efficiency in allocation of resources as well as creation of opportunities for citizens to progress. New Delhi: Promising reforms that will transform lives, Prime Minister Narendra Modi on Friday said the government will not eliminate all subsidies but will rationalise and target them to the needy. He said… – Continue reading
The Asia Tax Awards are back: Enter now for 2016
The revived Asia Tax Awards will feature categories for companies, firms and individuals. The Asia Tax Awards are back! More than five years after they last took place in November 2010, the Asia Tax Awards will be held once again on Thursday May 5 2016, following the Asia Tax Forum,… – Continue reading
IRS Still Hunts Offshore Accounts As More Foreign Banks Sign Deals With U.S.
With the web of FATCA information exchanges, whistleblowers, cooperating witnesses, and other sources, the IRS and Justice Department have a wealth of information at their disposal. They have warned offshore account holders to disclose before it’s too late. Under FATCA, banks everywhere want to know if you are compliant with… – Continue reading
Dual Residents Not Required to Report Some Foreign Assets
Jan. 6 — Some dual-resident taxpayers don’t have to report specified foreign financial assets on Form 8938 for 2015, the IRS said. These taxpayers won’t have to do the reporting as long as they determine their income tax liability—for all or part of the taxable year—as if they were nonresident… – Continue reading
Life insurers need to know customers’ tax status
Insurers and financial advisers are required to know the tax information of their customers, according to guidance published by the Association of British Insurers (ABI) and the Association of Professional Financial Advisers (APFA). The new requirement follows UK information exchange agreements including Foreign Account Tax Compliance Act, agreements with Crown… – Continue reading
Based on comments and feedback received, the Guidance Note for implementation of FATCA and Common Reporting Standard (CRS) updated
An Inter-Governmental Agreement between India and USA was signed for implementation of Foreign Account Tax Compliance Act (FATCA). The Government of India has also joined the Multilateral Competent Authority Agreement (MCAA) for Automatic Exchange of Information as per Common Reporting Standard (CRS). For implementation of FATCA and CRS, necessary legislative… – Continue reading
Ireland: OECD Common Reporting Standard Implementation In Ireland – Implications For Irish Investment Funds And SPVs
On 18 December 2015, the Regulations implementing the OECD Common Reporting Standard (“CRS“) in Ireland were approved by the Irish Parliament. This update follows on from previous updates published by Maples and Calder Dublin on CRS and US FATCA and outlines the practical next steps for Irish investment funds and… – Continue reading
The Unreported Offshore Account: Still Alive After Death & Plaguing Executors and Heirs
When someone dies owning an unreported financial account, the heirs and executors of the estate are faced with a serious problem. First, assuming there is undeclared income earned with respect to the account, such income will generate a tax liability for the decedent with respect to any tax years that… – Continue reading
Cayman Islands: CRS Update: Self-Certification Forms
The Cayman Islands Tax Information Authority (TIA), on December 8, 2015 provided the following implementation updates for the Common Reporting Standard (CRS): 1. Updated Self-Certification Forms ( Individual and Entity) for compliance with CRS, U.S. and U.K. FATCA, which should be used by Cayman Islands funds. From January 1 onwards,… – Continue reading
Central Bank programme of themed inspections in Markets Supervision
The Markets Supervision Directorate of the Central Bank published its programme of themed-inspections for 2016. These inspections reflect a number of supervisory priorities for 2016 and anticipate areas of emerging risk. This programme builds on the successful supervisory work undertaken in 2015 in the areas of Cyber Security, Operational Risk… – Continue reading
Information Of Foreign Account Tax Compliance Act
The provisions commonly known as the Foreign Account Tax Compliance Act (FATCA) became law in March 2010. •FATCA targets tax non-compliance by U.S. taxpayers with foreign accounts •FATCA focuses on reporting: •By U.S. taxpayers about certain foreign financial accounts and offshore assets •By foreign financial institutions about financial accounts held… – Continue reading
Australia: Country-by-country reporting guidelines
The Australian Taxation Office (ATO) on 17 December 2015 released guidelines that address country-by-country reporting. The ATO release—Law Companion Guideline (LCG) 2015/3—discusses Tax Laws Amendment (Combating Multinational Tax Avoidance) Act 2015 that was enacted earlier this month and discusses, in particular, Schedule 4. Background Schedule 4 created Subdivision 815-E of… – Continue reading
Register now for your free, tailored, daily legal newsfeed service.
Case law Chevron appeal to the Full Federal Court Chevron Australia Holdings Pty Ltd has appealed the decision of the Federal Court in Chevron Australia Holdings Pty Ltd v Commissioner of Taxation (No 4) [2015] FCA 1092 to the Full Federal Court. For details of the Federal Court decision, please… – Continue reading
Additional OECD CRS self-certifications required from investors subscribing to Cayman Islands (and other non-U.S.) investment funds on or after January 1, 2016
The Cayman Islands (along with the United Kingdom, Ireland, Jersey, Guernsey, the British Virgin Islands and over 70 other countries) has committed to implementing the OECD Common Reporting Standard (“CRS”), which will require investment funds to collect tax identification and tax residency information from all new subscribers and transferees (including… – Continue reading
Draft 2015 FATCA Form 8966 instructions reflect form’s new check boxes and lines
Draft 2015 Instructions for Form 8966. IRS has published a draft version of the instructions to the 2015 Form 8966 (FATCA Report), which certain foreign financial institutions (FFIs) and others use to report information with respect to U.S. accounts under the Foreign Account Tax Compliance Act (FATCA). The instructions reflect… – Continue reading
U.S.A.: FATCA: IRS releases instructions for Form 1042 for 2015
The U.S. Internal Revenue Service (IRS) has released Instructions for Form 1042 for 2015 that provide guidance for withholding agents regarding the filling in of their form. It includes updates for FATCA requirements in accordance with the newly issued regulations under Chapter 3 and 4 of the Internal Revenue Code…. – Continue reading
Foreign Banks Pay To Avoid Tax Evasion Charges As More Americans Disclose Offshore Accounts
Lately, the IRS is warning offshore account holders to disclose before it’s too late. Under FATCA, banks everywhere want to know if you are compliant with the IRS. And the cost of compliance for many people is growing. The IRS updated its list of foreign banks where accounts trigger a… – Continue reading
Cayman Islands Automatic Exchange of Information Update
The Cayman Islands Tax Information Authority (“TIA“) has issued an advisory addressing several points of note regarding the Common Reporting Standard (“CRS“) in the Cayman Islands. Updated Self-Certification Forms The TIA has published new entity and individual self-certification forms which address the account holder disclosure requirements under each of CRS,… – Continue reading
Cayman issues self-certification templates and participating jurisdiction list
The Cayman Islands Ministry of Financial Services’ Department for International Tax Cooperation (DITC) on 8 December 2015 issued an industry advisory regarding the ongoing implementation of the Common Reporting Standard (CRS) in the Cayman Islands. The advisory issued two new templates; the entity self-certification form and the individual self-certification form… – Continue reading
Clinton offers new ‘exit tax’ on U.S.-foreign company mergers
WASHINGTON — Hillary Clinton on Wednesday will unveil a proposal for a new “exit tax” aimed at cracking down on corporate inversions, a practice that permits U.S. companies to merge with corporations overseas to lower their tax bill. The new tax would be part of a broader effort to target… – Continue reading
When Foreign Banks Ask For U.S. Taxpayer ID, How Should You Respond?
Approximately eight million Americans live abroad. Most have bank accounts where they live. Many other Americans also have overseas accounts. Most are receiving letters from their banks asking for their U.S. tax ID numbers. Some want you to certify you are compliant with the IRS. American citizens, residents—even people with… – Continue reading
Change in UK Treatment of Dual-Resident Companies May Affect U.S. Tax Planning
On November 30, 2015, the UK tax authorities at HM Revenue and Customs (HMRC) reached an agreement with Jersey about the interpretation of the company residence tie-breaker provision of the Jersey-UK income tax treaty. After reviewing other income tax treaties that contain similar provisions, HMRC will now take the view… – Continue reading
British Virgin Islands: BVI Financial Account Reporting — Preparing For The CRS
The Common Reporting Standard (CRS) is the standard for automatic exchange of financial account information produced by the Organisation for Economic Cooperation and Development (OECD) which provides for systematic and periodic automatic exchange of information between signatory jurisdictions. At its heart is a requirement for financial institutions, including British Virgin… – Continue reading
Russian withholding tax reclaim process
In a previous article we have discussed that you might be entitled to reclaim withholding tax on your foreign investments in Russia (including ADRs, GDRs). For transactions where the ultimate beneficial owner is not declared prior to the payment of income, local Russian custodians apply 30% withholding tax on dividends1… – Continue reading
How MF investors can provide additional KYC information for FATCA/CRS compliance
Effective November 1, 2015, all new investors who wish to purchase units of mutual funds have to provide additional KYC related information required for Foreign Account Tax Compliance Act (FATCA)/CRS compliance. From January 1, 2016 even existing investors who wish to make fresh purchases, need to complete the additional KYC… – Continue reading
Sea-change in landscape of taxation
KUWAIT CITY, Nov 29: “The world of taxation has changed tremendously impacted by FATCA, transfer pricing, Base Erosion and Profit Sharing, and others which require dramatic changes in existing operating models and structures,” remarked Fouad Douglas, PwC Country Senior partner, at a tax seminar organised by the PwC in conjunction… – Continue reading
Wesley Snipes Sues IRS Over Abusive $17.5M Tax Bill, False Promise Of ‘Fresh Start’
Wesley Snipes is in court with the IRS, again, and this time he has gone on the offensive. He was one of the more high profile criminal tax defendants in recent memory, facing an all-out prosecution on multiple serious felony tax evasion counts. In 2008, Mr. Snipes was convicted of… – Continue reading
Common Reporting Standard effective in Ireland from 1 January 2016
Recent developments with regard to CRS (the OECD’s “Common Reporting Standard”) mean that Irish funds need to take steps now to update their application forms and subscription documents. As referred to in Matheson’s November Investment Funds Newsletter, the Irish Finance Bill 2015 contains further provisions putting in place the necessary… – Continue reading
US Justice Department Announces Privatbank IHAG Zürich AG Reaches Resolution Under Swiss Bank
The Department of Justice announced today that Privatbank IHAG Zürich AG (IHAG) reached a resolution under the department’s Swiss Bank Program. IHAG will pay a penalty of more than $7 million. “Through the information provided by IHAG and other Swiss banks in the Program, the department has unraveled the various… – Continue reading
DYK: You have to update your KYC details for mutual fund investments
Fund houses and R&T agents have already started alerting investors to furnish Fatca and KYC details Mutual fund (MF) investors have to submit declarations to their fund houses to comply with the Foreign Account Tax Compliance Act (Fatca), which was passed in the US in 2010 (read more on this… – Continue reading
Common Reporting Standard (CRS) effective 1 January 2016; self-certification forms/ documentation update (13 November 2015)
The Common Reporting Standard (CRS) impacts Irish funds from 1 January 2016. The CRS framework represents a globally coordinated approach to the disclosure of income earned by individuals and organisations in order to combat tax evasion. It emerged from the Organisation for Economic Co-operation and Development (OECD) in February 2014… – Continue reading
DAVIS: A refresher on foreign asset reporting requirements
Recently, the Internal Revenue Service announced the exchange of financial account information with certain foreign tax administrations as the next step in efforts to combat offshore tax evasion. This is a significant portion of the IRS’s efforts to enforce FATCA, the Foreign Account Tax Compliance Act, which was enacted in… – Continue reading
Preparing for FATCA
By the summer of 2015 more than 90% of Russian banks joined the FATCA Now they need to how to implement the next steps (grant to the March 30, 2016 data on US tax residents), and prepare for the future requirements of FATCA. To send the required information to the… – Continue reading
FATCA to promote tax transparency between India and US
Hyderabad: Customers of several public and private sector banks across the Telangana and Andhra Pradesh are finding fault with their bankers for asking to fill up more forms under Foreign Account Tax Compliance Act (FATCA), and Common Reporting Standard (CRS). The new rules have come into effect from November 1,… – Continue reading
Fair’s Fair: Balancing The Interests of the State and of Wealthy Migrants
Clare Maurice, Arabella Murphy and Sophie Mazzier, Maurice Turnor Gardner LLP For better or worse, the concept of “fairness” is here to stay in relation to taxation, whether domestic or international. Politicians of all persuasions like to insist that their respective policies will ensure that everyone pays his or her… – Continue reading
Still Broken: major new report on global corporate tax cheating
“In 2013 the OECD, supported by the G20, promised to bring an end to international corporate tax avoidance which costs countries around the world billions in tax revenues each year. However, with the recently announced actions against corporate tax dodging, G20 and OECD countries have failed to live up to… – Continue reading
