The U.S. Treasury announced that on April 11, 2014, India agreed “in substance” to sign a Model 1 FATCA IGA with the US. The IGA would therefore require Indian financial institutions to report information on U.S. account holders to India’s Central Board of Direct Taxes, which would then share the information… – Continue reading
Heavy compliance cost may render equity purchases in mother country not worth their while Indians residing in America might, from July, find it tough to invest in products offered by the Indian mutual fund (MF) sector. The Foreign Account Tax Compliance Act (Fatca), that country’s new anti-tax evasion law, which takes effect… – Continue reading
Expats, offshore investors and multinational companies are the target of a new global tax network that is set to revolutionise how governments impose tax laws. Even before the US-led Foreign Account Tax Compliance Act (FATCA) takes effect from July 1, 2014, the Organisation of Economic Co-Operation and Development (OECD) is… – Continue reading
The IRS announced on 2 April 2014, that the deadline for foreign financial institutions registering for a GIIN, in order to appear on the first issued IRS list of foreign financial institutions, has been pushed out from 25 April 2014 to 5 May 2014. They have also indicated that registrations… – Continue reading
Foreign Account Tax Compliance Act (FATCA) opponents are claiming the new tax law is forcing record numbers of Americans to hand back their passports. According to official figures from the US Treasury, almost 3,000 Americans ‘expatriated’ in 2013 – an increase of more than double compared to the year before…. – Continue reading
Forthcoming US rules loom large over Middle Eastern banking sectors The four-year build up to the Foreign Account Tax Compliance Act (FATCA) going live is nearly over, with just eight weeks left until financial institutions have to be compliant. But the act, which is intended to rein in tax evasion by United… – Continue reading
The federal government has entered into an intergovernmental agreement with the United States to “reduce the burden on Australian financial institutions” in complying with the US Foreign Account Tax Compliance Act. Treasurer Joe Hockey announced yesterday that the agreement with the US government has been completed, heralding ramifications for “a… – Continue reading
Laila Arstall of Carey Olsen charts Guernsey’s path to automatic exchange of information. In 2013, UK Prime Minister David Cameron turned the political spotlight on international tax compliance, with his focus on trade, tax and transparency at the World Economic Forum in Davos. He was riding the current trend towards… – Continue reading
Guernsey’s financial services businesses were told that they have nothing to fear from FATCA – yet, at a presentation given by EY’s Executive Director for Tax, Wendy Martin. EY’s Guernsey Head of Tax, David White welcomed the audience of 150 local professionals to the presentation and introduced Wendy Martin who… – Continue reading
The Loan Syndications and Trading Association (LSTA) has released new forms of its primary trading documents, effective for trades entered into on or after April 24, 2014.[1] The LSTA’s updated forms are primarily designed to address foreign withholding tax requirements that will become effective July 1, 2014 under the Foreign Account Tax Compliance Act (FATCA). Additionally, the LSTA… – Continue reading
Next week, Jamaica and the United States (US) will officially sign the intergovernmental agreement (IGA) to implement the US’ Foreign Account Tax Compliance Act (FATCA), putting the island well ahead of its CARICOM counterparts. “We have actually signed off on the text of the agreement and it is going to… – Continue reading
Russia is in a race against time to adapt its laws to the U.S. Foreign Account Tax Compliance Act, or FATCA, and save its banks from financial sanctions. Legislation allowing Russian financial institutions to share information about their U.S. clients with the U.S. tax service, the IRS, was submitted to the State Duma on Wednesday, but has no hope of being… – Continue reading
Attempts by the country’s banks to comply with new American tax legislation are raising fears about customers’ privacy. The United States is one of two countries – the other being Eritrea – that tax their citizens who live overseas, even if their income is generated in a foreign country and… – Continue reading
Russia’s hard line over sanctions following the annexation of The Crimea from Ukraine seems to be softening over the Foreign Account Tax Compliance Act (FATCA). In on-off negotiations that have inched forward over several months, Russia had pledged to sign up to a FATCA inter-government agreement to make the country’s… – Continue reading
After years of failing efforts to spur the economy through spending and tax hikes, the developed countries tightened their belts against the perceived flaws in the international tax rules. These countries, which earlier supported globalisation, soon echoed the cries, of the developing countries, stemming from Base Erosion and Profit Shifting… – Continue reading
When it comes to tax, things are not always what they seem to be, as the recent news of Starbucks and Amazon shows. In a world where multinational corporations shift taxable profits to favourable jurisdictions, and sovereign nations use tax rates to improve their global competitiveness, things are not always… – Continue reading
Americans have always enjoyed the privilege of living abroad without losing citizenship. Think Hemingway and Fitzgerald decamping to write in Europe after World War I, or Gen. MacArthur spending decades in Asia around World War II. Expatriates remain Americans, and have generally been welcomed back to our shores with open… – Continue reading
The Foreign Account Tax Compliance Act (“FATCA”) is a US tax measure enacted in 2010 to prevent and detect US tax evasion and improve taxpayer compliance. It targets tax non-compliance by US taxpayers with foreign accounts by imposing a 30% withholding tax on their transactions with foreign financial institutions and… – Continue reading
Transfer pricing has received a great deal of bad press recently, but it is a useful tool for international businesses, says Lucas Bastin TRANSFER PRICING is the phenomenon by which related corporate entities in different jurisdictions determine the price at which a transfer of goods or services between them should be… – Continue reading
Some investors avoid paying taxes in a move called round-tripping — sending money offshore, then investing it in U.S. stocks or bonds. A study estimates it costs the U.S. billions in lost revenues. Recently, MIT professor Michelle Hanlon and two colleagues set out to find out all they could about… – Continue reading
The Global Organisation for Economic Cooperation and Development’s proposed standard information exchange does not change the FATCA deadline. Jeffrey S. Freeman, J.D., LL.M It is estimated that the U.S. economy suffers a $500 billion loss annually due to tax evasion on foreign source income and assets hidden outside the country…. – Continue reading
India has concluded an ‘in substance’ agreement with the US to combat possible tax evasion by Americans through Indian financial entities. The ‘in substance’ agreement with India under Foreign Account Tax Compliance Act (FATCA) was concluded on April 11, the US Treasury said. Market regulator Sebi plans to issue guidelines… – Continue reading
THE BUREAU of Internal Revenue (BIR) is waiting for the authority to enter into a bilateral agreement with Washington for the local implementation of a US tax law. The agency, BIR Commissioner Kim S. Jacinto-Henares said, is already preparing for the implementation of the Foreign Account Tax Compliance Act (FATCA)…. – Continue reading
The Ministry of Financial Services is pleased to advise that the Cabinet of The Bahamas approved, in principle, the Model 1 Agreement between the Government of The Bahamas and the Government of the United States to implement Foreign Account Tax Compliance Act (FATCA) following a productive round of negotiations with… – Continue reading
On 29 November 2013, the Cayman Islands government signed a Model 1B (i.e. non- reciprocal) intergovernmental agreement with the United States of America (the “US IGA“). The US IGA provides a framework for the implementation of the US Foreign Account Tax Compliance Act (“FATCA“) in the Cayman Islands. Cayman primary… – Continue reading
Financial Institutions have just under three weeks left to apply for a Global Intermediary Identification Number (GIIN), FIs have until 5 May to register with the IRS for a GIIN, a unique identifier that FIs will use to show compliance following the implementation of the Foreign Account Tax Compliance Act… – Continue reading
On 29 November 2013, the Cayman Islands government signed a Model 1B (i.e. non- reciprocal) intergovernmental agreement with the United States of America (the “US IGA“). The US IGA provides a framework for the implementation of the US Foreign Account Tax Compliance Act (“FATCA“) in the Cayman Islands. Cayman primary… – Continue reading
On April 2, 2014, the U.S. Internal Revenue Service (IRS) issued Announcement 2014-17 (the Announcement), which provides certain FATCA relief.1 The Announcement extends from April 25, 2014 to May 5, 2014 the deadline by which an FFI must register with the IRS in order to appear on the first public list of… – Continue reading
Belgium and the US will sign an intergovernmental agreement (IGA) in Brussels on April 23 for the implementation of the US Foreign Account Tax Compliance Act (FATCA), the Belgian Finance Ministry has announced. The IGA requires the Belgian Tax Administration and the US Internal Revenue Service (IRS) to exchange information… – Continue reading
Kuwait International Bank has completed all the requirements to register with the US Internal Revenue Service (IRS) regarding the enforcement of FATCA, said the bank’s Board Chairman Sheikh Muhammad Al-Jarrah Al-Sabah, in a press statement. Kuwait state news agency KUNA reported him as saying that to ensure total compliance with the IRS,… – Continue reading
1. I am a ‘relevant person’ under the Jersey/UK MOU but am fully UK tax compliant. Do I need to take any action? No. The JDF is only relevant to persons who are not UK tax compliant and need to make a disclosure for past tax liabilities. 2. I believe… – Continue reading
It may be tax day for most Americans, but it’s still a tax holiday for those who use offshore accounts to avoid paying levies on as much as $109 billion annually back to Uncle Sam, according to Quartz. Many of the monied types keep their dollars in offshore accounts specifically to… – Continue reading
Here come the tax acronyms; FATCA, AEOI, specified US persons & the potential for a tax residence licence in your wallet alongside your driver’s licence Posted in Personal Finance April 15, 2014 – 07:22am, By Gareth Vaughan First we get FATCA then we’ll get AEOI. Apologies for the acronyms. FATCA… – Continue reading
Deloitte experts have commented on the changes that will occur as a result of the Expo 2020 Dubai win, as well as the challenges facing senior management in the GCC countries and wider MENA region as the countdown to FATCA becomes more imminent. Deloitte experts believe that Expo 2020 will… – Continue reading
By Nduka Nwosu and Steve Omanufeme in Washington DC Nigeria and other African countries have asked the Bretton Woods institutions, the World Bank and the International Monetary Fund (IMF), to help them arrest the intractable problem of illicit financial outflows from the continent. The Coordinating Minister for the Economy (CME)… – Continue reading
Foreign institutional investors face new extraterritorial oversight July 1 this year marks the dawn of the FATCA new world order. Giving the U.S. Internal Revenue Service unprecedented extraterritorial powers to gather information on foreign financial institutions and their underlying account holders, the Foreign Account Tax Compliance Act represents the U.S…. – Continue reading
OECD BEPS Project: If new international corporate tax rules take effect from 2016, at least €50bn or half the annual value of services exports will be vapourised. Nevertheless, Ireland should support reform to a) protect the 12.5% corporation tax rate that will continue to give the country an advantage in… – Continue reading
BRUSSELS, April 12 (KUNA) — Belgium and the US will sign an agreement on 23 April that will allow the automatic exchange of bank data from accounts held in both countries. Belgian Finance Minister Koen Geens was quoted by Belgian media Saturday saying that the new deal “will lead to… – Continue reading
Prague, April 10 (CTK) – The number of Czech companies with owners based in destinations regarded as tax havens grew to 13,168 at the end of March, up by 68 from the end of last year, according to information from consulting company Bisnode. According to Bisnode, interest in tax havens… – Continue reading
MOSCOW, April 11 (Reuters) – Polyus Gold, Russia’s biggest gold miner, is considering state proposals to encourage the rebasing of Russian firms currently owned by offshore entities and intends to explore these issues with the government, the company said on Friday. The comments of the Jersey-registered company, whose share listing is… – Continue reading
NEW YORK (TheStreet) — The Securities and Exchange Commission is serious about going afterApple’s (AAPL_) off-shore cash. In a letter of comment to Apple’s in-house counsel, SEC accounting branch chief Kathleen Collins challenged the company’s aggressive accounting policies. Apple has about $16 billion of offshore cash exempt from taxation by the Internal… – Continue reading
Joe Oliver says Canada brings labour market, tax reforms to international forum Finance ministers from the G20 nations say they will press ahead on tax reform to prevent profit-shifting by companies and new governance measures for banks to prevent future bank failures. At the conclusion of a morning meeting in Washington, Finance Minister… – Continue reading
On April 2, 2014, the U.S. Internal Revenue Service (IRS) issued Announcement 2014-17(the Announcement), which provides certain FATCA relief.[1] The Announcement extends from April 25, 2014 to May 5, 2014 the deadline by which an FFI must register with the IRS in order to appear on the first public list of “Global… – Continue reading
Despite several delays, it seems almost certain that the “Foreign Account Tax Compliance Act”1 (FATCA) will finally go into effect on July 1, 2014. FATCA is a withholding tax regime designed to prevent U.S. taxpayers from hiding income offshore and avoiding U.S. taxes. FATCA’s impact will need to be considered in… – Continue reading
Wout Moelands, Hamir Khatau and Richard Collier, PwC UK Until the work of the OECD is completed, we can expect more frequent and assertive PE challenges, including the international origination arrangements conducted by travelling bankers or representative offices of banks. l. Introduction The PE rules provide tax authorities with a… – Continue reading
March 31 –A proposed country-by-country reporting template will not require multinational companies to break down financial details by legal entity, an official with the Organization for Economic Cooperation and Development announced March 31. Joseph Andrus, head of the OECD’s transfer pricing unit, said that Working Party No. 6 has tentatively… – Continue reading
India is set to scrap the R15-crore threshold for referring every international transaction between an MNC’s arms for compulsory transfer pricing audit, and about to embrace a more focused approach to zero in on cross-border transactions with potential for tax evasion. The proposed risk-based selection of transactions between MNC arms… – Continue reading
In November of 2008, America was sold on the “Hopey, Changey, Yes We Can” promise of Barack Obama. Well America, your hope has been shot since you elected him into office. Now, here comes more of the change Obama was really talking about. Are you ready? On July 1, America… – Continue reading
Abstract The Foreign Account Tax Compliance Act (FATCA) represents a powerful response by the United States to flagrant offshore tax evasion. Although the new reporting regime has been criticized as unilateral and extraterritorial, this short article, prepared for a symposium hosted by Pepperdine Law Review, shows that multilateralism and cooperation… – Continue reading
If Taiwan does not reach a consensus with the US on a pact that would help Taiwanese financial institutions meet requirements for reporting tax before July, the implementation of the Foreign Account Tax Compliance Act by the US on July 1 this year could mean a 30% tax deduction on… – Continue reading
