Countries that work together like Ireland and the US “need to be cognisant” of the impact their tax policies have on each other, new US Ambassador to Ireland Kevin O’Malley said in a speech yesterday. He said cross-border mergers can make the Irish and American economies stronger, but that “these… – Continue reading
Around $180 million in undeclared offshore income has now been recovered as part of the amnesty, the ATO said. A further $1 billion in assets has also been recovered. Photo: Louie Douvis The Tax Office is keeping a close eye on foreign banks as part of its push to stop… – Continue reading
On June 18, 2014, the Internal Revenue Service introduced significant changes to both its Offshore Voluntary Disclosure Program (OVDP) and its Streamlined Filing Compliance Procedures (Streamlined) and posted updated Frequently Asked Questions on its website.1 These changes apply to new OVDP “submissions” (which most practitioners believe refer to the Offshore… – Continue reading
(Reuters) – A key witness in the federal tax evasion trial of a top Swiss bank executive took the stand on Thursday to testify against his former boss, Raoul Weil, who is accused of conspiring to conceal up to $20 billion in U.S. taxpayers’ assets in secret offshore accounts. The… – Continue reading
The number of companies lobbying the U.S. government on tax inversions more than doubled in the quarter ended Sept. 30, as they sought to prevent Congress and the Obama administration from imposing new restrictions. Novartis AG (NOVN), SAP SE, and Eaton Corp Plc (ETN) were among companies that began lobbying… – Continue reading
Corporate tax “inversion” deals became a prime target this year of President Barack Obama, as part of his running theme that many U.S. corporations are stealing from Americans by not paying their fair share. After the August announcement of Burger King’s plans to merge with Canada-based Tim Hortons, the administration… – Continue reading
Democratic House and Senate candidates seem likely to lose the votes of a large constituency they rarely think about over a law that most Americans have never heard of. The issue is FATCA — the Foreign Account Tax Compliance Act — passed by Congress and signed into law in 2010…. – Continue reading
For now, while the benefit for American corporations to buy or merge and move overseas may be over, as evidenced by AbbVie cancelling its merger with Shire Pharmaceutical, that doesn’t mean that consolidation within the industry is through. A new research report from Merrill Lynch features three top companies, dubbed… – Continue reading
The lower house of Parliament has approved legislation that allows the exchange of information about banking accounts with other countries. The bill is a prerequisite for the implementation of the FATCA agreement with the United States which will require Czech financial institutions to inform US authorities about account owned by… – Continue reading
If the house always wins, then the taxman isn’t far behind – at least not during the last year. Inland Revenue won outright almost 85 per cent of litigation it was in over the 12 months to June 30 – its highest rate of success since at least 2010. It… – Continue reading
Facebook was today facing a fresh row over offshore tax avoidance as UK accounts showed it paid no corporation tax for the second year in a row while granting shares worth tens of millions of pounds to London staff. Research firm eMarketer estimates Facebook’s London operation in Euston made £371… – Continue reading
(Reuters) – Panama and Colombia will negotiate a financial information-sharing deal, ending a stand-off over Colombia’s classification of the Central American country as a tax haven and removing it from that status, Colombia’s president said on Tuesday. The Colombian government is trying to curb tax evasion and two weeks ago… – Continue reading
Oct. 20 — U.S. insurance companies don’t like the extra reporting burdens their overseas operations are facing under the Foreign Account Tax Compliance Act combined with existing requirements. The industry is asking the Internal Revenue Service to lighten that burden, asserting that the layers of reporting now being imposed could… – Continue reading
Standard Chartered has notified thousands of UAE small and medium enterprise customers it is closing their accounts as it responds to pressure from US regulators to cut its risks following an anti-money laundering settlement. “We regret to notify you that Standard Chartered Bank will no longer be able to provide… – Continue reading
Samuel Wyly, the U.S. businessman who may have to forfeit as much as $400 million after being found liable for using offshore trusts to hide stock holdings and make illegal trades, filed for bankruptcy. Wyly, 80, listed assets and debt of $100 million to $500 million each in a Chapter… – Continue reading
As of July 1, 2014, the Internal Revenue Service (IRS) has implemented several changes to the streamlined filing procedures for offshore compliance, as well as the Offshore Voluntary Disclosure Program (OVDP). These programs provide taxpayers with offshore assets an avenue to bring their tax obligations into compliance. The expanded programs… – Continue reading
Reports from Vanuatu say an entertainment company with interests in China is to offer a new style of gambling to Vanuatu. The Daily Post Newspaper reports Amax International Holdings plans to offer live-dealer online gambling to high-rollers in the country. Amax is an investment holding company engaged in gambling and… – Continue reading
The U.S. government’s move to hamper tax-inversion deals is good for the drug industry because it forces companies to focus on intrinsic business reasons for transactions, Actelion Ltd. Chief Executive Officer Jean-Paul Clozel said. Since the U.S. Treasury said last month that it would tighten tax rules, three of eight… – Continue reading
Senate Finance Committee Chairman Ron Wyden has indicated that, as companies appear to be reconsidering inversions following the administrative measures put forward by the Treasury Department last month, he is focused on reforming the US tax code, rather than pressing for immediate anti-inversion legislation. “While it looks like the rush… – Continue reading
Background The Foreign Account Tax Compliance Act, commonly known as FATCA, was signed into law on March 18, 2010. FATCA generally requires U.S. withholding agents to withhold tax at a 30 percent rate on certain U.S. payments to a foreign financial institution (“FFI”) unless the FFI has entered into an… – Continue reading
AbbVie Inc. (ABBV) and Shire Plc agreed to terminate what would have been the biggest U.S. tax inversion after AbbVie pulled its support for the deal in the wake of proposed changes to U.S. rules governing such transactions. AbbVie, based in North Chicago, Illinois, planned to buy Shire for an… – Continue reading
Echegaray says account holders can take part in country’s fiscal amnesty If Argentines who hold 4,040 undeclared bank accounts in Switzerland don’t normalize their fiscal status and pay their debts, the AFIP tax bureau will file a complaint before the Office of Economic Crime and Money-Laundering (PROCELAC) requesting it investigates… – Continue reading
Foreign structures are tempting targets for governments, says Vanessa Houlder. When governments around the world embarked on a drive to plug tax loopholes in 2012, the urgency of the move was underpinned by rising tensions over austerity and inequality. Widespread public outrage over alleged tax-dodging by wealthy individuals and multinationals… – Continue reading
DALLAS (CN) – Former Texas billionaire Sam Wyly filed for bankruptcy protection after a federal jury ordered him to pay as much as $400 million for using offshore trusts to hide stock trades. A noted philanthropist and contributor to Republican causes, Wyly, 77, of Dallas, made his fortune… – Continue reading
If you are a US taxpayer with overseas bank accounts or investments, you need to take immediate steps to show you are reporting your overseas earnings to avoid tax penalties under Foreign Account Tax Compliance Act (FATCA). Now FATCA is in full swing with foreign financial institutions filing reports on… – Continue reading
Climate Change Law Practice Group Blog, Environmental, Energy and Resources Law The BC Government tabled Bill 6, the Liquefied Natural Gas Income Tax Act, on October 2, 2014. Bill 6 sets out the features of the new LNG tax regime. The LNG taxation proposals have been the subject of great… – Continue reading
The Organization for Economic Cooperation and Development’s (OECD) plan for base erosion and profit shifting (BEPS) is already affecting corporations, according to speakers participating in a Captive Insurance Companies Association (CICA) transfer pricing webinar. Polling results during the webinar revealed attendees’ opinions were in line with tax industry surveys indicating… – Continue reading
The tide of tax inversions has started to recede, taking with it a substitute for real growth at some of our biggest companies. AbbVie Inc. just decided to bail out of an acquisition that would have moved its headquarters overseas where corporate tax rates are lower than U.S. rates. AbbVie… – Continue reading
Dividend represents a share of the company’s post-tax profit that is divided among its shareholders. In other words, once corporate tax has been paid on profit, the remaining earnings are distributed amongst shareholders as dividend. So far, so good. Then, this dividend is characterised as income in the hands of… – Continue reading
European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift… – Continue reading
Representation of foreign individuals who wish to purchase US residential property should include careful attention to the manner in which the income and gain from the property will be taxed in addition to the other aspects of ownership. In addition, it is important to be aware of the manner in… – Continue reading
(Reuters) – International banking activity expanded for a second straight quarter between April and June with banks lending more to emerging markets, particularly China, and to investment funds in offshore centers such as the Cayman Islands, data showed on Monday. Foreign lending to offshore centers rose to $2.269 trillion in… – Continue reading
In recent years, the United States has increased initiatives to counter tax evasion committed by U.S. persons who are not reporting and paying U.S. income tax on earnings derived from foreign financial assets. The Foreign Account Tax Compliance Act (“FATCA”) represents the latest major initiative in this regard, having been… – Continue reading
Obama finds foreign a tax rate that is both fair and efficient What is the maximum income-tax rate that anyone should be expected to pay? Some questions are never settled, in part because people often ignore the theoretical and empirical evidence, and history that can help answer the question. The… – Continue reading
Nearly 105,000 financial institutions are listed on the US Internal Revenue Service (IRS) database of Foreign Account Tax Compliance Act (FATCA) organisations complying with the tax reporting rules for US citizens. The latest list was published on October 1, 2014 by the IRS and shows 104,344 financial organisations have signed… – Continue reading
These crimes hinder the development of societies, prevent strengthening the legitimacy of democracy SANTIAGO — Corruption and tax evasion are flagrant violations of human rights in Latin America, where they contribute to inequality and injustice in the countries of the region, according to studies and experts consulted by IPS. “Tax… – Continue reading
A number of American corporations are making news, and not in a good way. They have announced mergers with foreign companies so they can avoid paying U.S. taxes. They are seeking what is called a “tax inversion” and it allows an American corporation to merge with a foreign corporation, move… – Continue reading
PANAMA CITY – Panama and Colombia said they will talk uninterruptedly to resolve a dispute that erupted after Bogota included the Central American nation on its list of tax havens. Panama’s vice president and foreign minister, Isabel De Saint Malo de Alvarado, and Colombia’s foreign minister, María Angela Holguín, delivered… – Continue reading
Senate Finance Chairman Ron Wyden (D-Ore.) said Friday that he hopes to build on the pharmaceutical company AbbVie’s move away from a tax inversion. AbbVie’s board advised shareholders to vote against the proposed merger with the Irish competitor Shire, which Wyden said showed the company saw “the strategic business value… – Continue reading
Some 19 British firms are at the center of an investigation into in a mammoth global money-laundering operation. The scheme was allegedly contrived to make $20bn (£12.5bn) worth of ill-gotten gains appear legitimate. The illicit funds are thought to have originated from criminal gangs and corrupt officials across the globe,… – Continue reading
A plastic surgeon with a practice in the Basking Ridge section of Bernards has been accused of evading federal income taxes on more than $10 million of income. By ripping off the federal government, authorities said, David Evdokimow, 54, of Harding, led a lavish lifestyle. Now he is facing prison… – Continue reading
Ireland puts an end to a tax loophole that saved Google, Apple, Microsoft, and Facebook billions in taxes “Double Irish” might sound like a drink that corporate tax lawyers reach for at the prospect of paying higher tax bills, but it’s actually the name of a controversial — albeit legal… – Continue reading
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Emailftsales.support@ft.com to buy additional rights. Trustees of private family trusts are being urged to register with the US tax… – Continue reading
Minnesota Democrat invested in opponent’s tax-inverting company as son’s private equity firm opens shop in Caymans Sen. Al Franken (D., Minn.) is hoping to saddle his Republican challenger with Mitt Romney-esque charges of “vulture corporatism,” but his own investment activities, and those of his son, could blunt those attacks with… – Continue reading
The European Union expanded its crackdown on illegal tax breaks, ordering Spain to recover money from companies that benefited from rules encouraging merger activity outside of the country. The European Commission said the Spanish measures unfairly rewarded companies for buying stakes in foreign competitors. Telefonica SA (TEF) last year lost… – Continue reading
The £32bn takeover of a leading UK pharmaceuticals firm is in danger of collapse because of a tax crackdown announced by the White House. AbbVie said this week that its board would meet on Monday to reconsider the purchase of Basingstoke-based Shire, which is best known for its drugs to… – Continue reading
Budget measures including new foreign direct investment incentives discussed State agencies and Government Ministers and officials have launched a co-ordinated campaign of letters and phone calls to senior executives of foreign multinationals, to reassure them that Ireland remains a top destination for investment following the budget, Minister for Enterprise Richard… – Continue reading
The collapse of AbbVie’s takeover of Shire shows President Obama has put an end to the tax inversion bonanza for bankers and lawyers but they will find new ways to keep the deal wheels turning In 2010, a group of corporate lawyers went cycling in the French countryside. They whizzed… – Continue reading
Ireland has this week moved to change its tax law, closing the “double Irish” tax avoidance technique widely used by multinational enterprises including Google and Microsoft. Picture: Getty Images In very broad terms, the current Irish tax law allows a company incorporated in Ireland to be a tax resident of… – Continue reading
The IRS has issued FAQs relating to the new streamlined procedures for offshore compliance, and for Delinquent International Information Return Submission Procedures. The FAQs for the streamlined program provide more detailed guidance on how the 5% penalty will be computed, how 100% owners of an incorporated business will be treated,… – Continue reading
