JOHANNESBURG – A R2.6bn merger deal between telecoms firm Telkom and IT services company Business Connexion Group (BCX) has been approved with conditions. The Competition Commission (CompCom) on Thursday announced that it recommended to the Competition Tribunal that the merger be approved with conditions. “These are technical conditions relating to… – Continue reading
Following on from a press release issued by the Treasurer on May 11th, the government has released a draft bill containing a new limb to the general anti-avoidance provision, which is directed at foreign multinational groups who have global revenue exceeding $1 billion. The law will apply where: • the… – Continue reading
The minimum alternate tax row has damaged the credibility of government promises to enforce an investor-friendly tax regime and made the Indian stock market Asia’s worst performer this year New Delhi/Mumbai: Castleton Investment Ltd, a unit of GlaxoSmithKline Plc (GSK), in 2012 asked an arm of the Indian finance ministry… – Continue reading
The Organisation for Economic Co-operation and Development (OECD) has published stakeholders’ comments on its discussion draft on base erosion and profit shifting (BEPS) Action 11, on improving analysis of BEPS. Through Action 11, the OECD hopes to develop recommendations to better chart the scale and economic impact of BEPS issues,… – Continue reading
The latest changes to VAT and profit tax legislation, implications of recent measures taken to fight fiscal evasion, changes to international tax reporting rules and the need to improve holding legislation were some of the topics discussed by participants in BR’s 14th Tax & Law conference which took place in… – Continue reading
The OECD plans to have international agreement on new tax rules developed as part of its project to tackle aggressive tax avoidance by multinationals through the Base Erosion and Profiting Shifting (BEPS) project by the next G20 summit in November, with implementation completed before 2020 ‘at the latest’ Pascal Saint-Amans,… – Continue reading
JOHANNESBURG – There is considerable scope to collect more revenue by addressing tax leakage due to transfer pricing. Speaking at a forum event hosted by the Gordon Institute of Business Science (Gibs), Judge Dennis Davis, chair of the Tax Committee that was tasked with a comprehensive review of South Africa’s… – Continue reading
Even as the action plan to address Base Erosion and Profit Sharing (BEPS) is being worked out, multinationals are bracing for some turbulent times in India. For some time now, transfer pricing – the price of goods and services determined by a company when two of its subsidiaries transact –… – Continue reading
Technology companies need to stop “extremely aggressive” tax planning, the man charged with reforming global tax rules has told the BBC. He says these “push the boundaries of what is legal”. Pascal Saint-Amans, who runs the OECD’s Centre for Tax Policy, said that new standards would require companies to pay… – Continue reading
The worldwide transfer pricing landscape is in a state of flux and the need for sound and reliable dispute resolution mechanisms has never been more important for multinational enterprises. In particular, where aggressive tax administrations such as India are concerned, double taxation is a key concern for businesses. Mutual agreement… – Continue reading
While the Bureaucrat Hall of Fame and Moocher Hall of Fame already exist, the Hypocrite Hall of Fame is just a concept. But once it gets set up, Congressman Alan Grayson of Florida will definitely be a charter member. Here are some passages from a column in the Tampa Bay… – Continue reading
May 13 — The hiring of an outside law firm in a sharply contested audit of Microsoft’s transfer pricing “appears to violate federal law and the express will of the Congress,” Senate Finance Committee Chairman Orrin G. Hatch (R-Utah) said in a letter to IRS Commissioner John Koskinen. Hatch, in… – Continue reading
Head of forum’s tax policy will push for reform to cut down on avoidance. The OECD has attacked the “extremely aggressive” tax planning of companies such as Google, Amazon and Apple as it pushes for reform of global tax rules to cut down on avoidance. Pascal Saint-Amans, who heads up… – Continue reading
U.S. Rep. Alan Grayson, the outspoken, populist Democrat who thunders against Wall Street fat cats,and used to to joke about Mitt Romney’s low tax bill, incorporated a couple hedge funds in the Cayman Islands so investors could avoid taxes. Grayson Fund Ltd. and Grayson Master Fund were incorporated in 2011… – Continue reading
Current international tax rules are based on principles that have not kept up with globalisation and the rise of the digital economy. Over the years the rules have been patched up but, almost two years ago, the Organisation for Economic Co-operation and Development (OECD), acknowledging that a substantial overhaul was… – Continue reading
The Foreign Investors’ Chamber of Commerce & Industry (FICCI) has objected to a news item headlined “Tax theft by MNCs: Call to enforce transfer price rules” published in Sunday’s issue of The Financial Express. In a statement, the chamber said the shoulder “Tax theft by MNCs” and the reporter’s remarks… – Continue reading
If you are moving or trading goods across borders, this topic should be of primary importance from both a Transfer Pricing and Customs perspective. There is potential for you to have Transfer Pricing and Customs exposures in your supply and value chains as a result of the OECD/G20 initiative on… – Continue reading
I. VAT and Customs In many cases, the principal in the contract manufacturing relationship owns some or all of the raw materials, work-in-process and finished goods throughout the manufacturing process. The principal and many of the suppliers are typically outside of the manufacturing jurisdiction. 1. Generally Speaking, What Are The… – Continue reading
New rules applicable to payments made by Chinese companies to ‘related’ companies offshore will prevent them from artificially shifting profits to lower tax jurisdictions through “unreasonable” service and royalty payments, the State Administration of Taxation (SAT) has said. Circular 16, which came into force on 18 March, and its accompanying… – Continue reading
Australia to fine tech tax-dodgers 100% of their avoided tax, plus profits Australia’s treasurer* Joe Hockey has revealed that he and other money ministers from the Organisation for Economic Co-operation and Development (OECD) have shared plans to have online retailers charging the appropriate consumption tax on intangibles and goods bought… – Continue reading
JAKARTA: Indonesia is considering cutting its corporate tax rate to as low as 17.5 per cent from 25 per cent to attract more investment from companies that are operating in the region, a tax ministry official said on Monday. Indonesia, which posted the weakest economic growth since 2009 in the… – Continue reading
Bangladesh is set to enforce transfer pricing rules to curb tax evasion and overseas fund transfers by multinational and foreign firms, officials said. The National Board of Revenue will start auditing income tax files of multinational companies from next fiscal year. Last month, the tax administrator assigned seven of its… – Continue reading
THE issue of tax evasion is a concern for various Governments around the world. Tax authorities continue to face challenges from both local businesses and multinational corporations. In Zambia has the challenge has been to ensure that traders, local manufacturers and multinationals pay taxes due to the treasury. The situation… – Continue reading
Recently the Polish Ministry of Finance has presented a new bill introducing amendments to the Tax Ordinance and proposed amendments to the income tax regulations. Deferral of the effective date of the general anti-abuse clause On May 4, 2015 the Polish Ministry of Finance published a draft amendment to the… – Continue reading
VietNamNet Bridge – How to deal with transfer pricing – whether to view it as an inevitable part of foreign direct investment (FDI) or take drastic measures to stop it – remains a controversial matter among Vietnamese. METRO Cash & Carry Vietnam (MCC) will have to pay VND507 billion (US$23.8… – Continue reading
Danish jewelry maker Pandora will pay 995 million Danish crowns ($151 million) to the Danish tax authorities, Skat, in a settlement after a transfer pricing audit for 2009 to 2014, it said on Thursday. Pandora also said its reported tax rate for 2015 is expected to be around 22 pct… – Continue reading
After nearly a year of planning, the Multistate Tax Commission Executive Committee today approved the Arm’s-Length Adjustment Services Advisory Group (the Group) Final Program Design. The following six states have agreed to participate in the Program: Alabama, Iowa, Kentucky, New Jersey, North Carolina and Pennsylvania. Today’s discussion focused on some… – Continue reading
The Malawi Economic Justice Network (MEJN) says illicit financial flows are highly affecting economic growth of the country, saying the siphoning of the funds is undermining growth in Malawi. Speaking during the second meeting of the African parliamentarians on illicit financial flows and tax (APNIFFT) in the capital Lilongwe, MEJN’s… – Continue reading
In what may come as a relief to foreign portfolio investors (FPIs), the Bombay High Court has issued a stay on the tax department’s order seeking minimum alternate tax (MAT) from Aberdeen Global Emerging Markets. In what may come as a relief to foreign portfolio investors (FPIs), the Bombay High… – Continue reading
“Book Loss” and not “operating loss” a relevant indicator for determining persistent loss – Mumbai Tribunal Ruling in the case of Sumitomo Chemical India Private Limited Transfer pricing aims at establishing the arm’s length price of the controlled transactions using the most appropriate method. The success of transfer pricing lies… – Continue reading
It’s a race against time for governments of the worlds’ largest economies seeking a coordinated plan to make it more difficult for multinational corporations to shield profits overseas. Some countries are preparing to act on their own. International finance leaders from advanced- and developing- economies are set to gather Wednesday… – Continue reading
VietNamNet Bridge – Metro Cash & Carry Vietnam, the German invested retailer, which repeatedly reported losses over the last 12 years in Vietnam, has engaged in transfer pricing to evade tax, according to the General Department of Taxation (GDT). It has asked the big retailer to reduce the reported loss… – Continue reading
The Davis Tax Committee (“DTC”) recently addressed the issue of base erosion and profit shifting (“BEPS”) in South Africa. The international importance of transfer pricing was once again emphasized when 4 out of the 15 actions identified in the OECD Action Plan on BEPS related to transfer pricing. The 15… – Continue reading
Thailand is expected to introduce new transfer pricing (TP) laws in the near future, which will apply to all companies in the Kingdom with related-party transactions. At a recent Deloitte seminar on “Thailand TP Developments”, with participation from senior officials from the Revenue Department, we shared some valuable insights on… – Continue reading
The OECD/G20 Base Erosion and Profit Shifting (BEPS) Project is changing the international tax landscape by building a new international consensus on how to tackle BEPS. In September 2014, the first seven of the deliverables under the 15-point BEPS Action Plan were presented to G20 Finance Ministers when they met… – Continue reading
Introduction The Organisation for Economic Cooperation and Development (OECD) recently issued a discussion draft on the use of profit split methods in relation to transfer pricing and in the context of global value chains as part of the Base Erosion and Profit Shifting (BEPS) project.(1) This update provides an overview… – Continue reading
Big hue and cry from the rich and the powerful against modification of tax return forms has again pushed the govt on back foot John Maynard Keynes famously said the avoidance of tax is the only intellectual pursuit that carries a reward. Historically, tax ‘avoidance’ is understood as an intellectual… – Continue reading
COMPANIES that engaged in tax avoidance practices such as the abuse of transfer pricing should be expropriated without compensation, Economic Freedom Fighters (EFF) MP Floyd Shivambu proposed in Parliament on Wednesday. This was one of a raft of “aggressive” measures that he believed the government should adopt to deal with… – Continue reading
Autumn Statement 2014, Budget 2015 and Finance Act 2015 The UK Chancellor delivered his Autumn Statement on 3 December 2014 and his Budget speech on 18 March 2015. For an overview of some of the key announcements, please see our Autumn Statement 2014 briefing and Budget 2015 briefing. The UK’s… – Continue reading
Home to 5,000 plus FDI projects, HCM City has comfortably remained Viet Nam’s growth engine, and it plans to make full use of its position to rise to international standards in many areas, Xuan Huong reports. Despite all the international and regional competition, Viet Nam has remained an attractive destination… – Continue reading
Turkey is to host a G20 international tax symposium next month to discuss developments to address Base Erosion and Profit Shifting (BEPS) and the exchange of information between tax administrations The event, organised by Turkish Ministry of Finance, also aims to ensure that developing and low-income countries benefit from the… – Continue reading
In brief: At the recent G20 meeting in Washington, Treasurer Joe Hockey announced the establishment of a working group between Australia and the UK to develop initiatives to address so-called diverted profits involving multinational enterprises. What are the implications for multinationals doing business in Australia? Partner Martin Fry (view CV)… – Continue reading
BHP Billiton is contesting A$522 million (S$544.8 million) in Australian tax bills on its Singapore marketing operations up to 2010, after having paid almost no tax in Singapore since 2006, the global miner told an Australian Senate panel, reports the Business Times. The figures were released on Monday by a… – Continue reading
An OECD initiative on tax evasion is causing ripples around the world While a host of topics — from the necessity and the proposed scope of corporate tax reform, to corporate rate reduction and corporate inversions — are of major concern to those engaged in international tax, the overriding issue… – Continue reading
The Vietnamese unit of motor maker Honda and the Ministry of Finance still fail to reach an agreement on a preferential tax treatment the company is supposed to enjoy, thanks to which it refuses to pay nearly US$10 million in tax arrears. Honda Vietnam Co. Ltd. has been asked to… – Continue reading
BHP Billiton is contesting $522 million in Australian tax bills on its Singapore marketing operations up to 2010, after having paid almost no tax in Singapore since 2006, the global miner told an Australian Senate panel. The figures were released on Monday by a Senate committee that is investigating corporate… – Continue reading
KELLY NJOMBO, Lusaka THE Jesuit Centre for Theological Reflection (JCTR) says Government’s discussion to approve changes to the mineral royalty tax regime will result in the increase in primary budget deficit and possible limiting of expenditure. JCTR says the threat of job losses, placing the mines under care and maintenance… – Continue reading
Trade in today’s global era visualizes significant number of international transactions in form of transfer of goods, services, capital and intangibles. International transfers arise within the Multinational Enterprise group entities and are called intra-group transfer. What is actually paid by one entity to another entity in the intra-group transfer is… – Continue reading
Multinationals play such a large role in many nations’ budgets that effective control is crucial. Business Tax-base erosion cripples Africa 24 Apr 2015 00:00 Lisa Steyn Multinationals play such a large role in many nations’ budgets that effective control is crucial. Finance Minister Nhlanhla Nene says practices such as incorrect… – Continue reading
FATCA 1. New FATCA IGA guidance notes On 3 February 2015, the Jersey Chief Minister’s Department published the latest version of the Guidance Notes on the Taxation (International Tax Compliance) (Jersey) Regulations 2014 in relation to the implementation of obligations arising under the intergovernmental agreements (IGAs) with the US and… – Continue reading
