Many kinds of U.S. multinational companies, including S-corporations, REITS, and financial services companies apparently dodged a bullet last month when the U.S. Treasury Dept. issued its final, substantially revised rules aimed at curtailing “earnings stripping.” The revised regulation represents an attempt by Treasury to help “narrow the rule and avoid… – Continue reading
The Internal Revenue Service lacks a strong operation to audit a critical international tax compliance area, according to a watchdog report released Thursday. At issue is transfer pricing, a cost structure used by multinational companies to price goods and services they sell to subsidiaries in foreign locations. The IRS requires… – Continue reading
Global governments battling tax avoidance increasingly are pushing multinational corporations for a bigger picture of how and where they pay taxes, leading to increasingly narrow questions from company tax officers. “We have a number of entities that are disregarded for U.S. tax purposes. When I fill out the country-by-country form,… – Continue reading
The row between commercial banks in the Caribbean and the larger ones on the American mainland just would not go away. In the past week, finance officials from across the globe and from multilateral institutions such as the International Monetary Fund (IMF) flew to Antigua for a conference on the… – Continue reading
German Finance Minister Wolfgang Schaeuble wants to force Germans to disclose their dealings with offshore firms in tax havens and make banks liable for lost tax income if they conceal their clients’ business with such firms, a draft law shows. Tax havens were thrown into the limelight in April when… – Continue reading
Royal Bank of Canada has stopped offering tax advice to its clients in the UK and Channel Islands as firms grow increasingly wary about providing tax advisory services. The bank made the decision to cut the service over the summer, and has dismissed claims the decision was related to HM… – Continue reading
The APA scheme was initiated in 2012 in the IT Act and in 2014, rollback provisions were introduced. The Dollar Business Bureau The Central Board of Direct Taxes (CBDT) on Thursday signed five Unilateral Advance Pricing Agreements (APAs) with Indian taxpayers, making the total number of APAs to 108. “The… – Continue reading
The Federal Board of Revenue (FBR) on Wednesday refused to share tax details of offshore companies owned by Mariam Nawaz, Hassan Nawaz, Imran Khan and Jehangir Khan Tarin with National Assembly Standing Committee on Finance. The National Assembly Standing Committee on Finance, which met under the chairmanship of Qaiser Ahmed… – Continue reading
After five years of negotiations, the European Commission has finally announced its plans to overhaul the way in which companies are taxed in the Single Market. The revised Common Consolidated Corporate Tax Base (CCCTB) is aimed at making it easier and cheaper to do business in the Single Market and… – Continue reading
The Indian government has collected more than Rs650bn (US$9.8bn or UK£8bn) in the form of cash and assets through a tax evasion amnesty scheme. For a four-month period, ending in September, the government offered tax cheats immunity from prosecution if they came forward, paid their evaded tax bill and stumped… – Continue reading
With the Internal Revenue Service (IRS), the tax-collection arm of the United States government, stepping up its global sweep to catch American individuals and corporations hiding their overseas earnings, the American Chamber of Commerce in Cambodia yesterday held a presentation for investors and financial institutions to make sure they are… – Continue reading
The European Commission has unveiled its latest plan to harmonise corporate tax. After two past failures, the executive hopes the recent flurry of tax scandals will give the project a new lease of life. The EU has revived its tax crusade with a new attempt to establish a Common Consolidated… – Continue reading
The Armenian Parliament has ratified today two agreements to avoid double taxation and prevent tax evasion with respect to taxes on property and income with Serbia and Slovakia. According to Deputy Minister of Finance Armen Hayrapetyan, the document on the mutual avoidance of double taxation on property and income with… – Continue reading
Days of underpaying taxes to end soon as China takes part in worldwide scheme on swapping information on foreign residents’ financial assets The mainland tax agency wants to collect the financial information of non residents who live in China as it takes part in a multilateral scheme to crack down… – Continue reading
A new EU corporate tax proposal could fundamentally change how multinationals pay their tax bills in Ireland. It comes at a sensitive time for the State, following so closely after the commission ruled phone giant Apple tapped illegal tax breaks worth around €13bn. In proposals to be unveiled tomorrow, the… – Continue reading
With the exception of British Antarctica, the U.K.’s overseas territories and offshore dependencies are all surrounded by sun-winking ocean water. But that’s not their only common feature—they are all under increasing political pressure to become more transparent with their financial information. In a parliamentary report on tackling overseas corruption, the… – Continue reading
Aiken City Council unanimously approved the first of two votes to maintain the City’s tax rate of 62 mills and seek other funding sources to cover a millage shortfall due to decreased city property values during its Monday meeting. City leaders had considered raising taxes by 1.7 mills to cover… – Continue reading
A United Nations human rights expert has urged the next UN secretary-general to make the elimination of tax havens a priority to ensure that corporations, billionaires and ‘kleptocrats’ pay their fair share of taxes. Speaking on Friday, American law professor Alfred de Zayas also urged Antonio Guterres, who will succeed… – Continue reading
FURTHER POWERS are being sought by HMRC, despite ‘failing’ to use those it already has, such as Conduct Notices, said RPC. Conduct Notices are a powerful weapon for HMRC to use against ‘high risk’ promoters involved in tax avoidance, said RPC. It can be issued to promoters and then impose… – Continue reading
Twenty years after starting talks, Poland and Taiwan have signed a double taxation agreement that Warsaw hopes will boost bilateral trade and investment. The deal, signed in the Taiwanese capital, Taipei, means citizens of Taiwan and Poland doing business in both countries will be able to pay taxes only in… – Continue reading
Pakistan’s authorities are making efforts to seek information about tax details of 270 offshore companies from nine known tax havens around the globe where 444 individuals have invested billions of dollars, and, finally, their names appeared through PanamaLeaks, The News has learnt. The cases of 444 individuals involving nine jurisdictions… – Continue reading
Governments of Pakistan and Mauritius on Friday signed a number of trade deals which included the Preferential Trade Agreement (PTA) – an agreement on avoidance of double taxation – which have a great potential for enhancing their bilateral trade. These agreements were signed during discussions held at the Mauritius Board… – Continue reading
The narrowing figure of £36bn roundly condemned for ignoring estimated tens of billions lost in profit shifting and tax avoidance by multinationals Tax experts warned that HM Revenue & Customs was underestimating the size of Britain’s tax avoidance problem after the agency claimed that Britain’s annual tax shortfall was only… – Continue reading
An extensive tax treaty that would shield Chinese businesses operating in the Kingdom from double taxation, and vice versa, has been drafted and is expected to be approved imminently, according to a senior Cambodian tax official. Experts said yesterday the double taxation agreement (DTA) would create a clear legal framework… – Continue reading
FATCA disclosure agreement takes effect, worrying some Israeli-Americans Dual American-Israeli citizens finally need to pay up. After years of the US Internal Revenue Service gradually baring down on American citizens living in Israel who evaded reporting income or paying taxes and numerous rounds of amnesty for those belatedly coming forward,… – Continue reading
Several Swiss banks have received a letter from the United States Ambassador to Bern, Suzan LeVine, asking them not to shun US citizens who want to open accounts in Switzerland. Many Swiss banks have frozen out US clients, and even closed down existing accounts, in the wake of a damaging… – Continue reading
The OECD tax team is calling on tax professionals and multinationals to participate in an online survey on tax certainty, responding to widespread concerns about the increasing complexity of tax rules and lack of stability for companies and multinationals over tax regulations. This follows the detailed work on the OECD’s… – Continue reading
Proposed legislation is designed to curb the profit-shifting multinationals use to reduce tax liabilities on their income in Europe The European commission will redouble its crackdown on multinational tax avoidance next week with the relaunch of proposals to create an overarching corporation tax regime across all member states. The proposed… – Continue reading
China is requiring multinational groups to provide more information, including the location-specific advantages of their Chinese entities, when they apply for advance pricing agreements. The State Administration of Taxation’s Public Notice 64, dated Oct. 11 and released Oct. 18, requires companies to provide the additional information to Chinese tax authorities… – Continue reading
Talks on a data exchange agreement have progressed following Panama President Varela’s state visit to Berlin. Panama is looking to clean up its reputation in the aftermath of the “Panama Papers” leak earlier this year. Germany and Panama moved a step closer towards signing an information-sharing agreement, German Chancellor Angela… – Continue reading
Turkmenistan in a bid to expand its bilateral ties with Germany in the trade sphere ratified an agreement on the avoidance of double taxation with respect to income and property taxes, the Turkmen government reported. The document signed with Germany was approved at the regular meeting of Parliament this week…. – Continue reading
India has stressed the need for a mutually acceptable mechanism among BRICS nations to prevent multinationals from dodging taxes, along with norms to curb black money and bring those accused of corruption and tax evasion to book. “Another key issue that we are pushing is the issue of tax evasion,… – Continue reading
The decision was made during a meeting between Iranian Finance and Economic Affairs Minister Ali Tayyenbia and the visiting Luxembourg Economy Minister Etienne Schneider in Tehran on Monday, IRNA reported. As reported, the Luxembourger minister also visited Central Bank of Iran Governor Valiollah Seif on Tuesday. Expressing satisfaction over the… – Continue reading
Argentina and Chile yesterday announced the implementation of a long-awaited agreement to eliminate double taxation for residents of both countries in order to encourage investment and prevent tax evasion. Chile’s Foreign Minister Heraldo Muñoz, Public Works Minister Alberto Undurraga, and Finance Minister Rodrigo Valdés met with Argentina’s Finance Minister Alfonso… – Continue reading
A chartered tax body has echoed an alert that advice on complicated and unclear areas of law, such as IR35, could be hit by proposals to penalise so-called ‘avoidance enablers.’ In fact, in line with the alert by WTT Consulting, the Chartered Institute of Taxation says “many reputable” firms may… – Continue reading
Individuals and entities that have accounts at the Vatican bank and are subject to taxation in Italy will have until mid-April to report to Italian authorities the income earned by their Vatican accounts. As part of ongoing efforts by the Vatican to increase financial transparency and accountability, an agreement between… – Continue reading
Department of Finance receives ‘unprecedented’ lobbying from property funds Overseas investors in Irish property may have to wait for a further two months for clarity on how the Government plans to tax structures they have used to snap up billions of euro of real estate after the financial crisis. The… – Continue reading
On 30 September 2016 Ukraine signed a protocol (the “Protocol”) modifying the not-yet-in-force Convention between the Government of Ukraine and the Government of the Grand Duchy of Luxembourg for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital (the “Convention”)…. – Continue reading
One of the most common ways multinationals take advantage of current laws to reduce their tax bill is through what’s known as transfer pricing. Former Treasurer Wayne Swan last week accused mining giant BHP of “aggressive transfer pricing,” denying the Australian government A$5.7 billion in tax revenue. For most companies,… – Continue reading
Expats who have money or assets outside Britain can expect to start receiving letters from the UK tax man soon. Hundreds of thousands of letters are being drafted for expats who have returned to the country after spells abroad and for expats considered UK taxpayers who have had overseas assignments…. – Continue reading
The finance department over the weekend said it has received the backing of the International Monetary Fund (IMF) on its planned comprehensive tax reform package, as well as proposals to relax the country’s bank secrecy law. The Department of Finance (DOF) said the IMF has given its nod to the… – Continue reading
South Korea said Friday it has signed an agreement with Singapore to share some financial information on their nationals residing in each other’s territory. It’s meant to help tackle offshore tax evasion and other illegal activities, the Ministry of Strategy and Finance said. Under the deal, the two sides will… – Continue reading
Georgia and Kyrgyzstan are increasing economic cooperation by signing an agreement on avoidance of double taxation. The deal was signed today in Georgia’s capital Tbilisi and will prevent people or businesses working between the two countries from evading income and capital taxes. Double taxation is the levying of tax by… – Continue reading
Former Labor treasurer Wayne Swan has accused one of Australia’s biggest companies of evading taxes for more than a decade, and for lying to the former Labor government during the height of the mining tax debate. Swan used parliamentary privilege on Wednesday to claim BHP Billiton had been “gaming the… – Continue reading
Tough rules to regulate tax advisers, banks and lawyers who help companies avoid tax are set to be advanced by European Union finance ministers. The Council of Economic and Financial Affairs Oct. 11 also will likely move toward a system of automatic exchange of beneficial ownership registers to better target… – Continue reading
The Inland Revenue Authority of Singapore (IRAS) has published detailed guidance on the implementation of a new country-by-country (CbC) reporting requirement in the territory. The guidance, released on October 10, sets out which entities are obliged to report and how to complete and submit a CbC report to IRAS. For… – Continue reading
In July 2016 the then Indonesian finance minister Bambang Brodjonegoro, in conjunction with the launch of the widely publicized tax amnesty program (TAP) for undeclared offshore assets, also laid out less publicized plans for a new tax haven on the islands of Bintan and Rempang (Proposed Tax Haven). A key… – Continue reading
Treasury concedes that provision to use an income tax instrument to address estate duty and donations tax avoidance is flawed. The initial tax avoidance blow to prevent the misuse of low interest or interest free loans to trusts as a vehicle to reduce wealth taxes – such as donations tax… – Continue reading
EESC debate also calls for safeguards against misuse of data collected An EESC debate this week on fighting money laundering, terrorist financing and tax evasion called for a number of policy proposals aimed at “making the lives of criminals more difficult and their actions impossible”. The Brussels event made a… – Continue reading
The season hasn’t started off that well for Wayne Rooney – and now it’s got even worse. The England and Manchester United captain is now facing a £3.5million tax bill after authorities challenged a tax avoidance scheme that he was involved with. Rooney has already come under fire this season… – Continue reading
