An Australian taxpayer advocacy group has joined forces with a coalition of international taxpayer organizations and academics to condemn the Government’s plans to abolish the low-value goods and services tax threshold on imports. In separate submissions to the Senate inquiry into the proposes GST changes, the Australian Taxpayers Alliance and… – Continue reading
Banks are urged to stop lending to zombie companies and shell companies in CBRC guidelines highlighting 10 types of specific risk China’s banking regulator has urged commercial lenders to be more vigilant when dishing out loans after a spate of heavily indebted companies found themselves in hot water in the… – Continue reading
Antigua & Barbuda, on Wednesday, launched what government said was a strong objection with the US State of Illinois, which has introduced legislation, listing the twin island state and 10 Caricom countries as tax havens. In letters to the Speaker of the House of Represen-tatives of the Illinois General Assembly,… – Continue reading
China’s new transfer pricing rules, effective May 1, endorse the continued use of the arm’s-length standard—the internationally agreed bedrock for pricing transactions within multinational enterprises. The new guidance, Bulletin 6, augurs well for resolving tax disputes between China’s State Administration of Taxation and the U.S. Internal Revenue Service over the… – Continue reading
Seventy-four percent of UK executives surveyed by KPMG said they see Ireland as having one of the top three most competitive tax regimes. KPMG has published the findings of its Annual Survey of Tax Competitiveness 2016, which are based on interviews with 100 senior tax decision makers in the largest… – Continue reading
Dedicated technical experts from the UK’s HM Revenue & Customs (HMRC) will visit all English Premier League, Championship and Scottish Premier League clubs over a three year period and review all compliance risks including payments to players, the government has said. The statement was made in Treasury Minutes containing the… – Continue reading
HMRC has launched its Making Tax Digital for business pilot to test out its new reporting system, with a year to go before businesses with turnovers above the VAT threshold are required to switch to digital records and provide quarterly summary updates from April 2019 This month HMRC says it… – Continue reading
Credit Suisse Group AG (CS – Free Report) is facing money-laundering and tax-evasion investigations involving thousands of account holders. In addition to the homeland, the investigation covers the Netherlands, Britain, Germany, France and Australia. The probes were triggered after FIOD, the Dutch office for financial crimes prosecution, got a tip… – Continue reading
Financial institutions are working together to combat tax evasion, bribery and corruption through ISO certifications and the Common Reporting Standard. These are among the topics discussed in the spring 2017 issue of Deloitte’s quarterly publication, the Middle East Point of View (ME PoV). The spring 2017 issue tackles several hot… – Continue reading
Australian lawmakers have passed legislation to cut the company tax rate for SMEs. However, the Enterprise Tax Plan was only partially approved. On March 31, the Senate passed legislation to phase in three years of changes to the company tax system. The Government’s original proposals had covered a period of… – Continue reading
Hyderabad: Shell companies are becoming a common phenomenon globally and even in India. These companies are posing several challenges to governments and regulators for various reasons had been probing their involvement in large scale money laundering and tax avoidance cases. A shell company is a non-trading organisation that does not… – Continue reading
Google says it paid 36.4m (AUD59.8m) in UK corporation tax in the last financial year, as the internet firm’s operations in this country remain mired in controversy. The US company, which was revealed early last year to have done a 130m (AUD213.7m) deal with the taxman covering 10 years of… – Continue reading
Move shows that Beijing is joining the global move against diversion of profits to low-tax jurisdictions Beijing on Saturday posted a new rule on scenarios that could trigger tax-avoidance investigations of multinationals, under¬lining its commitment to a global move to combat profit shifting. The new rule, posted on the website… – Continue reading
Chile is leading a regional push across Latin America to clamp down on tax avoidance and profit-shifting by multinational and local firms, with the country’s tax authority making companies with interests and assets one of its priorities for inspections this year. Outlining its tax enforcement plan for 2017 on March… – Continue reading
1099 Pro now offers Common Reporting Standard software for CRS reporting as part of the OECD’s Automatic Exchange of Information for Tax Matters (AEoI) program. 1099 Pro, Inc., https://www.1099pro.com, known for over 25 years of Windows based product development for 1042-S, 1099, & FATCA reporting recently confirmed the upcoming release… – Continue reading
As a reaction to the so-called “Panama Papers” the German legislator proposed, on 30 December 2016, a draft bill to combat tax avoidance (so-called Steuerumgehungsbekämpfungsgesetz – StUmgBG). The aim of the draft bill is to enhance the German tax authorities’ means to determine and reveal EU-foreign domicile company structures which… – Continue reading
Switzerland introduced the automatic exchange of information of data concerning bank customers at the beginning of this year. Swiss private banks now warn the government that the planned extension of the system to a further set of countries may endanger their wealthy clients in some of the highly corrupt partner… – Continue reading
Malta’s threat places it 20th out of 27 states, Pana Committee told Malta faces an annual €8 billion money laundering risk, according to figures quoted in a study presented to the European Parliament’s Pana committee. The committee, which visited Malta in February for a fact-finding mission on the island’s involvement… – Continue reading
KARACHI: Tax authorities have sought banks’ assistance to curb tax evasion by flagging suspicious financial transactions, sources said on Friday. The source said the Federal Board of Revenue (FBR) asked banks to share with the board details of foreign trade, detected under anti-money laundering laws. “The purpose for obtaining the… – Continue reading
Swiss bank, UBS Group AG UBS , and its French unit will be facing a trial in France against allegations that the bank helped its clients in that country to evade taxes. Notably, a five-year probe into such allegations was closed last year. Following this, the prosecutor’s office was supposed… – Continue reading
The European Parliament’s Panama Papers investigative committee is preparing for a “fact-finding” visit with counterparts in the U.S. Congress, as well as officials from the Treasury Department and Internal Revenue Service. The European Union lawmakers’ four-day U.S. trip, which begins March 21, will include a visit to Delaware for meetings… – Continue reading
The 2017 Finance Bill was published on Monday 20 March, introducing dozens of initiatives with a focus on improving and modernising the tax system The Treasury said the bill, which is over 700 pages in length, “continues the government’s crackdown on tax avoidance” and “improves the fairness of the tax… – Continue reading
The OECD and the International Monetary Fund have submitted to the Group of Twenty (G-20) nations a report on improving tax certainty for businesses. The report follows a global survey of more than 700 large, multinational businesses and a survey of 25 advanced nation tax administrations. The report highlights several… – Continue reading
A committee of the UK’s upper house of Parliament has called on the Government to further delay its Making Tax Digital plans until 2020. Under Making Tax Digital, the Government will require taxpayers with a turnover exceeding GBP10,000 (USD12,370) to maintain digital accounts. Chancellor Philip Hammond announced in the Spring… – Continue reading
The Caribbean Community is looking at spending nearly quarter of a million dollars on a Washington-based consultant to lobby the Trump administration about the Foreign Accounts Tax Compliance Act. Cayman appears unlikely, however, to be affected by any lobbying – or even FATCA repeal – in the wake of last… – Continue reading
Value added tax is likely to be an irrecoverable cost, negatively affecting margins for the banking sector Dubai: The UAE and GCC banks that are facing increased regulatory burden from Basel III capital requirements and International Reporting Standards 9 (IFRS 9) are expected to face further pressure in terms of… – Continue reading
AMMAN — Addressing tax evasion efficiently has become of vital importance to the state budget and the overall economy in light of Jordan’s current economic conditions, experts agreed on Saturday. Participants in a panel, organised by the Jordan Transparency Society, agreed on the need for stricter inspections and more awareness… – Continue reading
PETALING JAYA, Mar 15 (Sin Chew Daily) — Local taxation expert Koong Lin Loong said the Internal Revenue Department’s target was not wealthy people but tax evaders. “Whether a person is evading tax is normally assessed with the ten-point criteria, and assets of unidentified origins will be their focus of… – Continue reading
Last November, the High Court’s decisions in Bywater Investments and Hua Wang Bank (Bywater) confirmed that a number of companies incorporated overseas were nevertheless Australian resident for tax because they “carried on business” and had their “central management and control” (CM&C) in Australia. The facts were extreme: the primary judge… – Continue reading
The Central Board of Direct Taxes (CBDT) has on 24th January 2017 issued final guidelines for determination of “Place of effective management”(POEM). On 27th of January, again CBDT released clarifications on “General Anti Avoidance Regulations” (GAAR). POEM is effective April 01,2016 whereas GAAR is effective from April 01,2017.POEM can be… – Continue reading
The LuxLeaks and Panama Papers scandals aroused shock and outrage the world over. However, reaction from Central and Eastern European statesmen and citizens was decidedly more muted. A new report has suggested profit shifting and tax dodging by businesses in the region is endemic – perhaps accounting for the lack… – Continue reading
It’s unlikely that RCM will be there for agricultural produce such as fruit, vegetables or cereals In services and goods prone to tax evasion, there will be a mechanism under the proposed goods and services tax (GST) regime to make buyers or receivers liable to pay the tax, instead of… – Continue reading
The government’s plan to issue a regulation in lieu of law (Perppu) concerning banking transparency, which includes allowing the tax authority to access taxpayers’ bank data, has sparked hot public debate. The proponents argue that such an initiative is critical, outlining the fact that the government has to comply with… – Continue reading
Ghana has signed an agreement with the government of Mauritius to ensure that its investors will not be taxed twice by the two countries and vice-versa. Known as the Double Taxation Avoidance agreement (DTA), the both Foreign Affairs ministers Shirley Ayorkor Botchwey and Mauritius counterpart Hon SeetanahLutchmeenaraidoo signed the agreement… – Continue reading
WASHINGTON — In the current deregulatory environment, investment advisers might expect a reprieve from new federal compliance rules. But one exception is the proposal for an anti-money-laundering regulation, which experts believe is likely to become the law of the land, bringing with it a significant new compliance responsibility. A year… – Continue reading
Creating a fairer tax system is on the state budget agenda again with a proposal from Democratic Gov. Tom Wolf to eliminate a business tax loophole. Wolf wants to close the Delaware loophole — a mechanism that allows businesses headquartered in other states to avoid paying taxes on their operations… – Continue reading
These three CGT exclusions have remained unchanged for five years. Over the last few years government has collected a significant amount of tax revenue by not fully adjusting the personal income tax tables for inflationary increases in earnings, thereby increasing the effective tax rate of individuals. A middle-class individual earning… – Continue reading
The Hong Kong Government has put forward a proposal to amend its tax laws to establish a dedicated tax regime for aircraft owners/lessors based in Hong Kong and leasing to offshore (including PRC) lessees/airlines (see Timeline / References below) (“Proposed Regime”). Assuming there are no surprises or drafting issues in… – Continue reading
Accounting firm’s contracts with federal government questioned. A former client of the accounting giant KPMG says a tax dodge that involved wealthy people gifting their money to an offshore jurisdiction was a “facade” designed to hide money from the taxman. The client, who spoke to CBC’s the fifth estate and… – Continue reading
What is a business expense deduction? A business expense deduction is a deduction allowed for ordinary and necessary expenses paid or incurred in connection with an individual’s trade, business or profession. IRC Section 62(a)(1) operates to assure that all trade or business expenses, deductible as delineated under specific IRC Sections,… – Continue reading
Federal agents raided three Caterpillar buildings near its Illinois headquarters on Thursday, company and law enforcement officials said, in an escalation of an inquiry into the heavy equipment manufacturer’s offshore tax practices. Caterpillar has been dogged by accusations that it slashed its domestic tax bill by shifting corporate profits from… – Continue reading
On 30 December 2016 the Commercial Court of Voronezh Oblast delivered a judgement in case No. А14-10190/2014 (the “Decision”) under the claim of Ilyushin Finance Co. Open Joint Stock Company (the “Company”). The case is an example of a broad interpretation of the list of documents confirming entitlement to a… – Continue reading
Nonresident Alien NRA tax withholding is applicable to U.S sourced income paid to foreign person and does not apply to payments made to U.S. persons. Foreign persons include nonresident alien individual, foreign partnerships, foreign corporations, foreign estates, and foreign trusts. The tax generally must be withheld from the payment made… – Continue reading
The European Parliament’s Monetary Affairs and Civil Liberties committees’ overwhelming support for access by EU citizens to information concerning the beneficial owners of companies without having to demonstrate a ‘legitimate interest’ and trusts would have to meet the same requirements. MEPs agreed the on their position on EU Anti-Money Laundering… – Continue reading
THE ORGANISATION for Economic Cooperation and Development (OECD) initiated the base erosion and profit shifting (BEPS) project in 2013 to address perceived gaps in international tax rules causing a loss of revenues for governments of about US$100 billion to $240 billion (Bt3.5 trillion to Bt8.4 trillion) annually. The OECD’s BEPS… – Continue reading
The importance of taxation to a nation’s economic wealth and development cannot be overemphasised. However, the achievement of this goal is often undermined by tax evasion and deliberate attempts by multinationals to shift profits from one jurisdiction to another, amongst others. Over the years, Nigeria has attempted to use taxation… – Continue reading
KARACHI: Directorate Intelligence and Investigation, (DI&I) Inland Revenue Karachi has detected around 453 fake registered persons, who were reportedly involved in Rs 5.6 billion tax evasion. According to sources, the DI&I-IR, Karachi under the supervision of its Director Hyder Ali Dharejo has kicked off a crackdown against tax mafia, who… – Continue reading
Transfer pricing—the price charged for intercompany transactions between entities in different tax jurisdictions—can be used to shift funds within a multinational corporation (MNC), and serves as an effective means to manage a firm’s finances. Transfer pricing—the price charged for intercompany transactions between entities in different tax jurisdictions—can be used to… – Continue reading
Global banking giant HSBC has disclosed being probed by tax authorities in India and several other countries, including against its Swiss and Dubai units, for allegedly abetting tax evasion of four Indians and their families. Besides, the bank has been approached by the regulatory and law enforcement agencies of various… – Continue reading
Finance Minister, Sri Mulyani, says that Indonesia continues to make preparations for implementing exchange of information in financial services and taxation sectors like alignment of the rules in the Law on the General Rules and Procedures of Taxation (KUP). “We will try various ways to incorporate various articles for KUP… – Continue reading
