This is part one of a five-part series on avoiding unnecessary U.S. taxes. The United States has be-come an attractive outlet for direct grain sales by many Canadian producers since the dissolution of the Canadian Wheat Board’s single desk trading monopoly. U.S.-based grain traders are soliciting new business in Canada,… – Continue reading
In addition to Justice Martineau’s denial of injunctive relief and dismissal of the request for summary judgment in Hillis and Deegan v. The Attorney General of Canada, as discussed in our previous post, U.S. citizens residing in Canada received more disappointing news on September 29, 2015, when Judge Thomas M…. – Continue reading
Not many people actually like Obamacare’s dreaded “Cadillac Tax,” including, reportedly, Hillary Clinton. But that doesn’t mean it will necessarily get repealed before it starts in 2018. A new survey shows that while that tax, which targets high-cost, employer-based health plans, is at first glance broadly unpopular with the public,… – Continue reading
Donald Trump’s tax plan was revealed with a message for millions of Americans: “You win!” But like everything linked to taxes, not everyone would win equally under his plan, which the Republican presidential candidate says is geared toward providing tax relief for the middle class and giving the U.S. economy… – Continue reading
After a whistleblower leaked the details of secret Swiss accounts at global bank HSBC earlier this year, the strongest reaction came from advanced economies, where governments launched efforts to reclaim tax money hidden abroad. But a new analysis by the Financial Transparency Coalition and Christian Aid shows that the financial… – Continue reading
NEW YORK, September 30, 2015 – A new report from Thomson Reuters sheds light on the dividend and income reporting requirements for banks, brokerages, and other financial institutions under the Foreign Account Tax Compliance Act (FATCA). Published by Thomson Reuters Checkpoint, New FATCA Compliance Obligations Facing Business Entities can be… – Continue reading
WASHINGTON, D.C., Sept. 30, 2015 –His Excellency Dr. Eugene Newry, Bahamas Ambassador to the United States, has written a letter to Municipal Officials of the District of Columbia and Federal Congressional Officials protesting “in the strongest terms” The Bahamas’ designation as a “tax haven” by D.C. authorities in the District… – Continue reading
At least 25 multi-millionaire Canadians used an offshore “sham” set up by accounting firm KPMG, a document filed Tuesday in Federal Court shows. For more than two years, KPMG has been fighting a court order to provide the list of names of multi-millionaire clients who had used what the CRA… – Continue reading
On 28 March 2014, Luxembourg and the US signed an intergovernmental agreement (“IGA”) to implement automatic exchange of information in the context of the Foreign Account Tax Compliance Act, which gave birth to the Law of 24 July 2015 (“FATCA Law”). The purpose of the FATCA Law is to identify… – Continue reading
Moving overseas to cut tax burden remains a viable option for some firms, though the presidential candidates may have other plans. With the long haul of a presidential election campaign just beginning, companies that leave the U.S. to lower their tax bills are once again political targets. Donald Trump this… – Continue reading
On 8 September 2015, Montserrat and the United States signed a Foreign Account Tax Compliance Act (FATCA) Agreement. FATCA seeks to obtain information on accounts held by U.S. taxpayers in other countries. It requires U.S. financial institutions to withhold a portion of certain payments made to Foreign Financial Institutions (FFIs)… – Continue reading
WASHINGTON, D.C. — United States authorities have begun the exchange of information with Mexico on all Mexicans with bank accounts or investments in the U.S. who have obtained more than $10 USD in annual interest. With the implementation of the Foreign Account Tax Compliance Act (FATCA), Mexico plans to deliver… – Continue reading
MUMBAI: The promoter of a Delhi-based, mid-sized, listed company has a Rs 700-crore problem. The cash is in various overseas accounts but the businessman has no plans of declare it before the black money deadline of September 30. Instead, he plans to invest it in the Indian capital markets by… – Continue reading
Tax havens are by design secretive and opaque. The entire point of their existence is to conceal the wealth hidden within them. And a new book by Gabriel Zucman, The Hidden Wealth of Nations: The Scourge of Tax Havens, reveals, as never before, the extent of their role in the… – Continue reading
Gabriel Zucman, one of 3 French economists who in recent times have published extensive research on wealth and equality, in a book, ‘The Hidden Wealth of Nations: The Scourge of Tax Havens,’ published this month, estimates that 8% of the world’s financial wealth — some US$7.6tn — is hidden in… – Continue reading
MIAMI (AP) — A former executive at Swiss bank UBS AG might avoid jail time and end up with probation because of his extensive cooperation in a long-running U.S. investigation into tax evasion using secret accounts. Prosecutors asked a judge to order five years’ probation and a $150,000 fine for… – Continue reading
The OECD has said that its base erosion and profit shifting (BEPS) project will create policy challenges for Ireland, but the nation should emerge well placed to attract foreign direct investment, reports Tax News. The report states: “Given the strong presence of intellectual property-intensive information technology and pharmaceutical companies in… – Continue reading
Fundamental to any developed tax policy is knowing who the taxpayer is (or should be) with respect to any particular transaction. Although that can be relatively straightforward in purely domestic situations, a cross-border dimension can present different answers to this question in the jurisdictions involved and lead to issues over… – Continue reading
Having saved for most of their life to amass an income to use in retirement, most people get to a certain age and start to think about drawing on those financial reserves as they wind down from the daily grind. When that money is held in an international pension plan… – Continue reading
If you are a foreign executive moving to the United States for work, not only do you have to consider practical concerns like moving your family and finding a new residence, but you also need guidance as to any US tax implications stemming from the move. One of the first… – Continue reading
NEW DELHI: The ambitious anti-offshore tax evasion and black money detection pact between India and the US – Foreign Account Tax Compliance Act (FATCA) – will become operational from tomorrow. The pact aims to cover automatic sharing of information on bank accounts as well as financial products like equities, mutual… – Continue reading
Efforts to amend details of new rules on corporate profits raise questions, reports the Wall Street Journal. Nearly 50 governments are set to agree this fall to a new set of rules to clamp down on tax avoidance among multinational corporations. Their chance of success, however, is unclear. If the… – Continue reading
ESPN FC’s Fernando Palomo previews the upcoming UCL action, highlighting that Barcelona will have to learn to play without Messi. Also Mou faces his old Club, while Bayern may be playing at their best. Barcelona star Javier Mascherano was charged with two counts of defrauding the Spanish tax authorities of… – Continue reading
International families are establishing domestic trusts at a record pace.1 Previously, these families set up trusts in the United States only if they had family and/or assets in the United States. This strategy still remains popular for international families, but now they’re also using domestic trusts even if they don’t… – Continue reading
Since its inception in August 2014, the SMU-TA Centre for Excellence in Taxation has worked tirelessly with industry practitioners, international academics and various key stakeholders to produce its first set of research works. On September 17, the Centre successfully presented its inaugural conference titled “A New Equilibrium in Tax Competition… – Continue reading
Financial institutions, partner jurisdictions and affected stakeholders have been working to implement the Foreign Account Tax Compliance Act (“FATCA”) since its enactment in March 2010. Time and again, as key implementation dates draw near, stakeholders redouble their efforts to satisfy these deadlines. Nonetheless, some stakeholders are not as prepared as… – Continue reading
Tax Reform Still in Ryan’s Sights Despite Boehner’s Departure Last week, following the sudden announcement by House Speaker John Boehner (R-OH) that he would be stepping down from Congress at the end of October, House Ways and Means Committee Chairman Paul Ryan (R-WI) and various other Committee members quickly confirmed… – Continue reading
On September 17, 2015, the Canadian Border Services Agency (“CBSA“) released a revised D-Memorandum D13-4-5, “Transaction Value Method for Related Persons” (the “Memorandum“), addressing the impact of income tax transfer pricing on the value for duty to be declared on goods imported into Canada. This new guidance will have a… – Continue reading
French economist Gabriel Zucman, a protégé of Thomas Piketty, has a new book outlining how to avoid this. To Gabriel Zucman, protégé of rock star French economist Thomas Piketty, the United States is starting to look a lot like Europe in the late 1800s. “There’s been this great reversal where,… – Continue reading
The Department of Justice announced today that Migros Bank AG (Migros) and Graubündner Kantonalbank (Graubündner) have reached resolutions under the department’s Swiss Bank Program. These banks will collectively pay penalties totaling more than $18 million. “It is abundantly clear from the agreements reached to date that for decades, many foreign… – Continue reading
The UK’s tax treatment of US limited liability companies (LLCs) will remain mostly unchanged despite a recent Supreme Court decision in favour of the taxpayer, HM Revenue and Customs (HMRC) has confirmed.25 Sep 2015 HMRC said that the decision of the UK’s highest court in favour of George Anson, a… – Continue reading
The Foreign Account Tax Compliance Act, passed in 2010, is a tool devised to help the U.S. locate funds of U.S. citizens being held in foreign banks. (See this earlier FATCA report on LBN). The law requires foreign banks to report data about accounts owned by U.S. citizens to the… – Continue reading
Reading companies’ annual reports to the Securities and Exchange Commission is a reliable cure for insomnia. Every so often, though, there is a significant revelation in the paperwork. Last year, one of the most important revelations came from Microsoft’s filings, which spotlighted how the tax code allows corporations to enjoy… – Continue reading
TORONTO (miningweekly.com) – The world’s largest precious metals streaming firm Silver Wheaton is set to challenge the Canadian Revenue Agency (CRA) over the agency’s decision to reassess the company’s 2005 to 2010 tax years and collect taxes on income earned by Silver Wheaton’s offshore subsidiaries. The TSX– and NYSE-listed company,… – Continue reading
Two more Swiss banks will pay fines to the United States as part of settlements that mean they will not face criminal charges for helping Americans avoid taxes, U.S authorities said on Friday. Migros Bank AG will pay approximately $15 million and Graubündner Kantonalbank will pay $3.6 million, the U.S…. – Continue reading
The Internal Revenue Service has entered into landmark Competent Authority Agreements with authorities in Australia and the United Kingdom to support the implementation of the Foreign Account Tax Compliance Act (FATCA). The US has signed FATCA intergovernmental agreements with both of these nations. Each of these agreements provides that Competent… – Continue reading
Automatic exchange of information for tax law enforcement purposes started first in Europe with the EU Savings Tax Directive, went international with the US Foreign Accounts Tax Compliance Act, and, from 2017, will go global with the recently-agreed Common Reporting Standard, the subject of this feature. Introduction To The Common… – Continue reading
When Delta, a South Africa-based property investment fund, decided to switch the offshore domicile of its international operations from Bermuda to Mauritius a year ago, it gained unexpected benefits, reports the Financial Times. “We’ve been very pleased,” says Bronwyn Corbett, head of Delta, as she reflects on the success of… – Continue reading
On September 18, 2015, the IRS issued Notice 2015-66 (the Notice), which provides that the Treasury Department and the IRS intend to amend regulations issued under Sections 1471-1474 of the Internal Revenue Code (commonly known as FATCA). The Notice, among other things, indicates that the Treasury and the IRS will… – Continue reading
Tax avoidance is a key problem for European countries, with the EU taking several steps to try and limit the ability of businesses to shift their profits to low-tax jurisdictions. Peter Dietsch writes on the nature of the problem and what can be done to tackle it. He argues that… – Continue reading
Just under Rs 500 cr declared so far, officials hope for surge in last six days. With only six days to go before a compliance window to declare offshore assets closes, officials say several thousand applications are in but the total amount declared so far seems very little. Until last… – Continue reading
Notice 2015-66 was issued on 18 September 2015 announcing that the US Treasury Department and IRS intend to amend section 1471-1474 of the regulations. Transitional Rules The transitional rules provided in Notice 2015-66 are intended to allow for and facilitate an orderly transition for withholding agents and FFIs regarding FATCA… – Continue reading
US taxpayers with secret bank accounts in Belize are about to feel the full force of the Internal Revenue Service (IRS). A federal court in Miami has issued summonses against Belize Bank International and Belize Bank aiming to identify accounts controlled by US taxpayers from 2006 until 2014. Belize banks… – Continue reading
On September 16, 2015, the Honorable Mr. Justice Martineau rendered summary judgment in the matter of Hillis and Deegan v. The Attorney General of Canada, docket T-1736-13 (2015 FC 1082). As a matter of background (and as discussed in a previous post), on August 11, 2014, the plaintiffs, Hillis and… – Continue reading
The IRS recently replaced Rev. Proc. 2006-54 for requesting assistance under the Mutual Agreement Procedure (“MAP”) article of U.S. tax treaties, and Rev. Proc. 2006-9 for requesting Advance Pricing Agreements (“APAs”). The new Rev. Procs. (2015-40 and 2015-41, respectively) largely track draft procedures issued in 2013 (Notices 2013-78 and 2013-79),… – Continue reading
A former Valparaiso man has admitted lying about his control of a Bahamian trust account worth millions of dollars, for the purpose of stonewalling attempts to collect $188 million in civil judgments against him. On Tuesday, Peter G. Rogan, 69, pleaded guilty to perjury in the U.S. District Court in… – Continue reading
Prime Minister Narendra Modi is scheduled to attend the UN Sustainable Development Summit as part of his second visit to the United States. INDIA IS likely to talk on the increased global efforts against tax avoidance and tax evasion at the United Nations later this month. Prime Minister Narendra Modi… – Continue reading
NEW YORK, NY–(Marketwired – September 23, 2015) – With the global implementation of FATCA and anticipation of the Common Reporting Standard (CRS), legal and compliance professionals within the banking industry have never seen such a regulatory overload and focus on ensuring proper compliance processes. As these multi-national regulations become implemented… – Continue reading
The tax office is beefing up efforts to catch international tax cheats by swapping banking information with US authorities. Details of more than 30,000 financial accounts worth over $5 billion held in Australia by US citizens will be provided to US Internal Revenue Services under the first wave of transparency… – Continue reading
Chief Minister Allan Bell has written to the District of Columbia Council to outline his concerns at the island’s inclusion in a blacklist of tax havens. Washington DC released the list of 39 ‘tax havens’ as part of its Budget Support Act, which was signed by the Mayor in August…. – Continue reading
