This edition of the Tax-News monthly feature takes in noteworthy events in the international tax arena, including attempts to inject new life into the campaign for comprehensive tax reform in the United States, and developments in the areas of free trade, indirect taxation, BEPS and tax transparency and compliance. US… – Continue reading
While President Barack Obama’s new tax proposals may never see the light of day, given the Republican majorities in both the House and Senate, they have generated discussion among cross-border tax practitioners. Dual citizens living in Canada or Canadians who own U.S. properties may wonder whether they need to reopen… – Continue reading
BENGALURU: US President Barack Obama’s visit to India could help unlock over $10 billion stuck in tax disputes between India and various countries. The move will largely benefit American technology companies as a big chunk of the disputes involve software development and IT-enabled services (ITeS) sectors. India’s competent authority Akhilesh… – Continue reading
A year in review: the far reach of the IRS in Canada – Foreign Account Tax Compliance Act What is FATCA? The Foreign Account Tax Compliance Act1 (“FATCA”) was enacted by the United States Congress in order to deal with non-compliance by US taxpayers using foreign bank accounts. FATCA requires… – Continue reading
BENGALURU: US President Barack Obama’s visit to India could help unlock over $10 billion stuck in tax disputes between India and various countries. The move will largely benefit American technology companies as a big chunk of the disputes involve software development and IT-enabled services (ITeS) sectors. India’s competent authority Akhilesh… – Continue reading
(Reuters) – The U.S. Senate’s top tax law writer sounded determined on Friday about pursuing comprehensive tax reform, though this is viewed as unlikely by most analysts. “Though there are disagreements on the details, there is bipartisan support for tax reform in Congress,” said Orrin Hatch, Republican chairman of the… – Continue reading
With so much attention on FATCA in recent times, the financial services industry could be forgiven for seeing it as the most obtrusive regulation ever imposed. This view will soon change. Once the Automatic Exchange of Information comes into force, financial institutions will have far greater challenges to overcome, writes… – Continue reading
The Foreign Account Tax Compliance Act (FATCA) is a new chapter in the US Internal Revenue Code. Chapter 4 was added by the Hiring Incentives to Restore Employment (HIRE) Act. It seeks to identify US taxpayers having accounts at foreign financial institutions (FFIs) and attempts to enforce reporting of those… – Continue reading
It’s income tax season and many people are working to prepare their tax returns but the IRS is warning people to beware of tax scammers. Although tax scams happen year round, they tend to occur more often during tax season. That’s why, around this this time each year, the IRS… – Continue reading
NEGOTIATING A DOUBLE Taxation Agreement (DTA) with Israel was a major talking point when that country’s Ambassador to Barbados, Mordehai Bivas, paid a courtesy call on Minister of Foreign Affairs and Foreign Trade, Senator Maxine McClean at her Culloden Road headquarters. Senator McClean told the Ambassador: “One of the things… – Continue reading
New Delhi, Jan. 23: India and the US have failed to make much progress in the totalisation pact that addresses the the problem of the double payment of social security taxes by Indian software professionals in America, dampening expectations surrounding President Barack Obama’s visit this weekend. Top officials said discussions… – Continue reading
Companies and U.S. citizens shifting profits and income offshore are bilking the U.S. government out of $100 billion in tax revenue a year, according to a new analysis by a congressional research group. Those using offshore tax havens to skirt paying taxes cost the U.S. government “around $100 billion per… – Continue reading
India has worked out a bilateral tax agreement with the United States, which could be signed during U.S. President Barack Obama’s visit, that would boost foreign investment and ease investors’ concerns raised by high profile cases against Vodafone and Shell. The pact, which industry executives say would specifically target the… – Continue reading
Luxembourg’s business-friendly tax laws have saved companies billions. The party’s almost over. On a typical day, thousands of passengers pull into Luxembourg’s central train station and traverse the busy shopping street of Rue de la Gare, where everything from pastries to rain boots is on offer. Few, however, step inside… – Continue reading
Lobby groups representing Google, Amazon and other powerful US tech multinationals have launched a fierce attack on global plans to stamp out artificial corporate structures used to avoid tax. In responses to the latest stage of a two-year, G20-led programme of international tax reform, lobbyists for the US tech industry… – Continue reading
London mayor Boris Johnson has agreed to pay a substantial tax bill to the US government despite earlier claiming that it was “outrageous” for the US to tax expat American citizens in an interview at the end of November last year. Johnson was born in New York but left when… – Continue reading
Leading regulatory supervision software provider adds new features to provide a robust, future-proof FATCA & AEOI system. Ottawa, Canada (PRWEB) January 22, 2015 Vizor, the leading regulatory supervision software provider, today introduced new features that help Tax Authorities meet their Foreign Account Tax Compliance Act (FATCA) obligations as well as… – Continue reading
Transfer pricing has been a favorite Canada Border Services Agency (CBSA) enforcement target for some time now. Payments made by importers because of income tax transfer pricing requirements can trigger obligations and liabilities under Canadian customs laws. This arises, for example, when CBSA seeks to assess duties and taxes on… – Continue reading
The US Foreign Account Tax Compliance Act (FATCA) is in the vanguard of a global movement towards the automatic exchange of information on tax matters. The US enacted FATCA in 2010 to tackle the problem of tax evasion by US citizens and residents who under-report or fail to report income… – Continue reading
NEW DELHI: India and the US have finalised a framework to resolve transfer pricing cases, some of them pending for five years, in what could end tax trauma for more than 50 American MNCs such as Microsoft, IBM and Oracle by the fiscal year-end and send a strong signal to… – Continue reading
Despite its throwback name, Adobe Products is a cutting-edge technology company whose products—notably, PDF files—are used by millions of Americans every day. As it turns out, Adobe’s tax-avoidance technology is pretty 21st-century too. The company’s newest annual financial report, released earlier this week, discloses that Adobe is currently holding more… – Continue reading
To comply with unconstitutional pseudo-treaties negotiated by the Obama administration without the consent of Congress or any semblance of constitutional authority, the IRS announced that it will be sharing private financial information on U.S. bank account holders with foreign powers. No warrant is needed for foreign governments or tyrants to… – Continue reading
The IRS has unveiled a secure web application, the International Data Exchange Service (IDES), for cross-border data sharing. IDES will allow Foreign Financial Institutions (FFIs) and tax authorities from other countries to transmit financial data on U.S. taxpayers’ accounts, via an encrypted pathway, to the IRS. The tool is part… – Continue reading
2014 was a year replete with new legislative and regulatory initiatives impacting federally regulated financial institutions. The key initiatives introduced or implemented in 2014 are outlined in our annual year in review. PRUDENTIAL REGULATION: GUIDANCE FROM OSFI Proposed New Bail-in Regime for Large Banks On August 1, 2014, the Government… – Continue reading
President Vladimir Putin is pushing harder on Russia’s richest citizens to repatriate offshore assets amid a slump in the ruble and the imposition of sanctions by the US and the European Union, The Business Times said. Under new tax rules signed into law by a presidential decree in November, Russian… – Continue reading
In his state of the union address last night President Obama urged U.S companies to repatriate all those profits hiding off-shore and away from the prying eyes of the IRS. Ed Mills, Managing Director at FBR Capital Markets summed it up in his morning note: The President called on Congress… – Continue reading
On October 29, 2014, through the OECD “Global Forum on Transparency and Exchange of Information for Tax Purposes,” both the OECD and G20 countries endorsed a new Standard for Automatic Exchange of Financial Account Information in Tax Matter. 59 countries are so-called “early adopters” and are committed to undertaking their… – Continue reading
Democratic lawmakers Tuesday pushed legislation to stop U.S. companies from reincorporating overseas to reduce their tax bills, saying a wave of so-called inversions last year has nearly doubled the revenue the federal government will lose from those moves over the next decade. The bill would make it tougher for U.S…. – Continue reading
A person who is required to file an information return with the IRS must obtain your correct taxpayer identification number (TIN) to report, for example, income paid to you, payments made to you in settlement of payment card and third party network transactions, real estate transactions, mortgage interest you paid,… – Continue reading
In December 2014, the Canada Revenue Agency (CRA) issued a letter to a sample of taxpayers to remind them of the criteria for filing a T1135-Foreign Income Verification Statement and to review their income tax filings to ensure they have been properly reporting the relevant assets and income. All Canadian… – Continue reading
President Obama reopened a fiscal can of worms with his proposal to increase the capital gains tax to 28 percent, a plan Republicans said they would not adopt. The administration has tried to paint it as a mainstream idea, noting that the rate was 28 percent under President Ronald Reagan,… – Continue reading
A couple of decades ago, the senior management of major corporations was often less than responsive to public pressures of various sorts. With a few exceptions where major media got involved, issues such as customer complaints or public outrage over corporate policy (labor exploitation, tax avoidance) could almost always be… – Continue reading
Hillary Clinton will give two speeches Wednesday in Canada and is co-hosted by the Canadian Imperial Bank of Commerce. The bank has recently come under investigation from the United States for helping wealthy Americans offshore money in the bank’s Caribbean accounts to avoid paying federal taxes. The Elizabeth Warren-supporting wing… – Continue reading
On Dec. 12, 2014, Rep. John Delaney (D-MD) proposed a new version of his “repatriation holiday” tax plan. The latest version would require multinational corporations to pay a token amount of taxes on their accumulated offshore profits and exempt those profits from any further U.S. income tax. Delaney’s new plan… – Continue reading
Costa Rica’s going under the magnifying glass for the next two weeks as international money laundering experts comb through the country’s books. President Luis Guillermo Solís declared the audit from the Financial Action Task Force of Latin America (GAFILAT) a subject of national interest in Monday’s edition of the official… – Continue reading
The Tax Story in 2015: Myths, Misconceptions and Reality Checks by Aswath Damodaran, Musings on Markets Each of us believes that we pay our fair share in taxes and that it is other people that do not, and not surprisingly, we find evidence to back up our priors. I find… – Continue reading
Over the past few years, Canadian courts have started taking note of the existence of trust protectors. Despite comments from a certain Saskatchewan judge in 2009 (“As indicated, the term “trust protector” is foreign to me…”[1]), recognition of trust protectors as a legitimate party to a trust may be on… – Continue reading
(Bloomberg)– A Swiss banker who faced more than three years in prison for providing WikiLeaks with confidential details of his former employer’s offshore activities walked out of a Zurich courtroom a free man on Monday. Rudolf Elmer, 59, was given a suspended fine of 16,800 Swiss francs ($19,397) for violating Swiss… – Continue reading
Tax forms will arrive in the mail any day now. At least one county in the area wants residents to know they’re cracking down on those who try to dodge the bill from Uncle Sam. Platte County Prosecutor Eric Zahnd announced last week that his office collected $220,000 in back… – Continue reading
Congressional Democrats are preparing new efforts to curb the offshore tax deals that drew the ire of President Obama last year. Senate Minority Whip Dick Durbin (D-Ill.), Sen. Jack Reed (D-R.I.), Rep. Sandy Levin (D-Mich.) and Rep. Lloyd Doggett (D-Texas) will introduce legislation on Tuesday seeking to stop the maneuver… – Continue reading
Observers of offshore financial centres will know that post 2008 they have been weathering a perfect storm. Firstly, reduced transactional flows, simply because there is less money available for structured finance and investment generally. Secondly, a constant barrage of negative publicity, which deliberately seeks to conflate tax evasion and tax… – Continue reading
Kansas Governor Sam Brownback had championed the largest tax cuts in the state’s history, eliminating taxes on non-wage earnings for nearly 200,000 small businesses. Just like all Republicans these days, Brownback had made cutting taxes and shrinking government the centerpieces of his government. Now the great State of Kansas has… – Continue reading
Since the introduction of the Transaction Value System of customs valuation by Canada on January 1, 1985, the Canada Border Services Agency (CBSA) has maintained a stated policy of denying refund claims of related party importers who seek to amend declared values for duty to account for adjustments that decrease… – Continue reading
Having abandoned its policy of capping the Swiss franc’s value versus the euros, the Swiss National Bank needs a Plan B for blocking the destructive, deflationary forces emanating from Switzerland’s struggling neighbors in the eurozone. Most likely, it will consist of allowing Swiss banks to charge negative interest rates to… – Continue reading
Asia’s ultra-high-net-worth-individuals (UHNWIs) are expected to hang onto their wealth for longer, as succession planning becomes an increasingly pertinent issue among this investor demographic elsewhere in the world. According to a new report by consultancy Wealth-X, around US$16 trillion of global UHNWI wealth is expected to be handed over to… – Continue reading
No issue dominates this year’s legislative and regulatory agenda of the risk management and property/casualty insurance community as reauthorization of the federal terrorism insurance backstop did even several weeks ago. Extension of the program, which lapsed several days before Congress reinstated it in early January, united the industry around a… – Continue reading
Jan 19 (Reuters) – Chinese companies that have borrowed heavily in dollars face sharply higher currency hedging costs at a time when the yuan’s rising volatility means they need to hedge more. The yuan unexpectedly weakened 2.4 percent against the dollar in 2014, its first significant loss since the landmark… – Continue reading
In the world of offshore asset protection and personal finance, you regularly come across the claim that there are only two countries that actively tax their residents’ worldwide income: the United States and Eritrea. All other countries only tax income earned at home. That’s apparently no longer true. It turns… – Continue reading
City Residents Forced Into Double Taxation Unfortunately, Lewis County officials seem to conveniently forget that “city” resident/taxpayers are entitled to the same consideration given to resident/taxpayers who live in the unincorporated area of Lewis County — something akin to an “us vs. them” situation.
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. Luxembourg’s unorthodox tax deal with Amazon was laid bare by European Commission investigators on Friday, who believe it artificially lowered and “capped” the online retailer’s tax bill,… – Continue reading
