British chancellor George Osborne’s promise to clamp down on a tax avoidance loophole widely used by multinational technology companies could actually result in a reduction in the amount of money the government takes in, the Chartered Institute of Taxation has warned. Patrick Stevens, the group’s tax policy director, admitted the… – Continue reading
American technology companies are suddenly living in fear. European governments are finally standing up to the power of these giants that are happy to talk about the benefits their digital products and services bring to society while being accused of not paying their fair share of corporation tax, not doing… – Continue reading
The Court of Appeal in Versailles has ordered the elusive international art dealer Guy Wildenstein, to pay a €20 million as a security deposit against tax avoidance allegations which have been levied against him. The funds must reach the court before by 15 October, according to the Le Monde newspaper…. – Continue reading
Troubled Italian fashion giant Prada stonewalled questions over its tax affairs on Monday after it emerged that its top two executives are being investigated for allegedly not disclosing many millions in overseas earnings to Italian authorities. Chinese fashion titans look to Italy for value (29 Sep 14) Global fashion circus… – Continue reading
George Osborne, the Chancellor of the Exchequer over here in the UK, has just announced at the Conservative party conference that he’ll be changing the tax laws to make sure that Google GOOGL +0.16% and other tech multinationals (Facebook, Microsoft MSFT -0.17%, possibly Apple AAPL +0.64%, among them) end up… – Continue reading
Troubled Italian fashion giant Prada stonewalled questions over its tax affairs on Monday after it emerged that its top two executives are being investigated for allegedly not disclosing many millions in overseas earnings to Italian authorities. Chinese fashion titans look to Italy for value (29 Sep 14) Global fashion circus… – Continue reading
Almost a third of Australia’s largest companies are paying less than 10¢ in the dollar in corporate tax, a report that exposes a gaping hole in government revenues over the past decade shows. As Australia prepares to host world leaders at the G20 summit in Brisbane in November, where a… – Continue reading
The European Commission is expected to announce today that Apple, now one of the world’s biggest listed companies, got special treatment from the Irish authorities, when the American company sought assurances on tax issues in 1991 and 2007 – – from the latter year, Apple’s foreign tax rate tumbled compared… – Continue reading
European regulators are set to examine whether Apple violated EU law by striking special tax deals with the Irish government. The European Commission opened an initial investigation into Apple’s tax affairs in June, looking at whether the company’s two percent tax rate in Ireland — far less than the standard 12.5… – 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. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/f0564d62-4803-11e4-b5ad-00144feab7de.html#ixzz3EsBYd5vW Technology companies “that go to extraordinary lengths” to cut their tax… – Continue reading
(Reuters) – British finance minister George Osborne said on Monday he was examining changes to clamp down on tax avoidance by multinationals which the government says are depriving Britain’s public coffers of hundreds of millions of pounds each year. “Some technology companies go to extraordinary lengths to pay little or… – Continue reading
Korean companies and individuals have invested more than 25 trillion won (about $23 billion) in 50 tax haven countries over the past seven years, according to a report submitted Sunday by the National Tax Service (NTS) to the National Assembly. “Investments by small-and medium-sized companies and individuals are in decline… – Continue reading
There is nothing illegal about tax planning. Yet some things are legal while others are not, and the lines can sometimes get fuzzy. Add to that the fact that some people go to extraordinary lengths to avoid paying taxes, and it can be a recipe for disaster. Increasingly, if you… – Continue reading
PORT LOUIS: Mauritius has provided details on majority of information requests received from Indian authorities in the last one year, according to a government official. India has concerns that Mauritius, which is one of the top sources of foreign direct investments into the country, is being used for round-tripping of… – Continue reading
Italian judge rules Cellino guilty of ‘Machiavellian’ tax evasion • Football League rules bar club owners convicted of dishonesty • Cellino’s lawyer says judge’s ruling is ‘full to the brim of errors’ • How an elegant yacht became vital to Leeds United’s future • Cellino: I don’t know why I… – Continue reading
Twitter is funnelling much of the revenue it generates in Britain through an offshore sales structure, newly published annual accounts suggested today. Twitter UK has filed abbreviated 2013 accounts for a small company under Companies House rules, which are usually applicable to a business with an annual turnover of less… – Continue reading
Inversions are technically a financial transaction where a corporation from one country, say the United States, merges with a company in a foreign country, say Ireland. Nothing changes in the United States from a business point of view, except that the value and financial sustainability of the corporation goes up significantly. Why… – Continue reading
Three years ago, Russia adopted new transfer pricing legislation. The new rules became effective on Jan. 1, 2012. They are in line with international standards (OECD Guidelines on Transfer Pricing), but their concept was, and still is, quite new for the Russian tax authorities. Thus the rules provide for a transition period until 2017: For the years 2012… – Continue reading
AstraZeneca shares are leading the losers on the FTSE 100 after the US Treasury department revealed that it forging new rules that will make it more difficult for companies to move their bases abroad to avoid tax. The AstraZeneca stock price has tumbled by over 5% to 4348.50p by midday while rival GlaxoSmithKline was hit by 1.25% at… – Continue reading
Labour could stop controversial cab-on-demand app Uber from operating in Britain over concerns about its tax arrangements. Shadow transport secretary Mary Creagh warned that Labour would not tolerate “tax avoidance on a large scale”, describing Uber’s tax arrangements, being based offshore, as “interesting”. She also seized on the fact that… – Continue reading
After an almost two year investigation into offshore stock entities in Belize, things moved quickly on Sept. 9. The indictment in Brooklyn was unsealed and at 11:45 a.m. Robert Bandfield was arrested in Miami on stock fraud charges. By 1 p.m., FBI agents and Belize police were on the fourth… – Continue reading
Plans to curb tax avoidance will hit Ireland. Most countries are set to force multinationals to pay more tax and as the political controversy grows, our own role in these activities will come under ever increasing scrutiny On Tuesday the OECD, the Paris-based club of the world’s richest economies, published… – Continue reading
On 11 September 2014, Business BVI held its Annual Asia conference in Hong Kong — ‘Pivoting to Asia: the pathway to new opportunities’. Paul Christopher, managing partner of Mourant Ozannes’ Hong Kong office, appeared as a panellist in a key panel discussion on the event’s programme, entitled ‘The BVI-HK connection:… – Continue reading
Having recently blasted corporate tax evaders, the deputy president now has egg on his face after Lonmin’s Bermuda tax avoidance tactics surfaced. Evidence before the Marikana commission that Lonmin moved millions in platinum revenue from South Africa to tax-free Bermuda is likely to prove embarrassing for ANC deputy president Cyril… – Continue reading
If the all-American fast food chain Burger King, with its thousands of restaurants in the United States, can claim to be a foreign company for tax purposes, our corporate tax system is in real trouble. The crisis of corporate inversions is now apparent even to those who aren’t connected to… – Continue reading
With an eye to next year’s federal election, the Harper government has begun to sprinkle tax-relief treats across the country. Small businesses got theirs last week with a break on employment insurance premiums. Sometimes, however, what governments don’t do can be as telling as their actions. The Finance Department has… – Continue reading
Factors to consider in deciding which type of incorporation is best for you AS TAX LAWS continue to evolve, so do choices of entity. Being mindful of the alternatives is critical to achieving tax benefits. Both S corporations and Limited Liability Companies (LLC’s) are flow-throughs, which have long been a… – Continue reading
Labor has accused the government of procrastinating on a key measure to stop multinational companies shifting profits offshore. It comes as the government prepares to chair the G20 finance ministers meeting in Cairns next week. The information-sharing deal, part of the global push to tackle tax avoidance, has been signed… – Continue reading
A contingent of so-called “corrupt clients” from Canada have been caught in the net of a massive fraud investigation by the FBI and the U.S. Attorney, a source close to the investigation told CBC. CBC News reported Wednesday that two Canadians, along with four others, were indicted in the U.S…. – Continue reading
The offshore tax affairs of a company previously headed by the economics minister are to be re-examined by the finance department of canton Bern. The move comes after Swiss Public Television, SRF, published a memo written by the Federal Tax Authorities (FTA) which raised questions about the previous investigation. The… – Continue reading
Washington, DC—(ENEWSPF)—September 5, 2014. Joshua Vandyk, an investment advisor, was sentenced today to serve 30 months in prison for conspiring to launder monetary instruments, the Justice Department and Internal Revenue Service (IRS) announced. Vandyk, a U.S. citizen, and Eric St-Cyr and Patrick Poulin, Canadian citizens, were indicted by a grand… – Continue reading
Noble Energy and Jordan recently signed a nonbinding agreement for the sale of 8.5% of Leviathan’s gas over the course of 15 years, for as much as $15 billion. By Avi Bar-Eli | Sep. 9, 2014 | 2:47 AM The preliminary deal for the sale of gas to Jordan from… – Continue reading
A multi-count indictment was unsealed this morning in federal court in Brooklyn, New York, against six individual defendants: Robert Bandfield, a U.S. citizen; Andrew Godfrey, a citizen of Belize; Kelvin Leach, a citizen of the Bahamas; Rohn Knowles, a citizen of the Bahamas; Brian De Wit, a citizen of Canada;… – Continue reading
On Tuesday, the SEC and the Justice Department charged several companies claiming to be located on the same floor of an office building in Belize City with fraud and conspiracy. We may not have heard the last from Cynk Technology. On Tuesday, the Securities and Exchange Commission and the Department… – Continue reading
MONTREAL – The disclosure by Valeant Pharmaceuticals International Inc. that it is under audit by the U.S. Internal Revenue Service is raising further doubts among tax specialists about the future of the Quebec-based drug company’s tax strategies. Valeant estimates it has achieved US$2.5-billion in tax and other “corporate structure” savings… – Continue reading
The police conducted on Monday morning, September 8, searches at several companies in Romania in a case of tax evasion in the sale of software. The searches took place at 7 places in Bucharest and Ilfov and Giurgiu counties, targeting the suspects’ homes and several companies. According to sources quoted by… – Continue reading
US companies can end up sitting on vast piles of untappable cash, held overseas for tax purposes. Success for the iPhone 6 would make things worse If, as expected, the launch of the new iPhone and Apple’s iWatch health monitor leads to record sales, more money than ever will pour… – Continue reading
The verdict serves as reference for invoking treaty abuse provisions in the absence of General Anti-Avoidance Rules Mukesh Butani September 7, 2014 Last Updated at 22:33 IST In a ruling demonstrating wise judicial discipline, the Delhi High Court (HC) recently upheld non-taxability of sale of shares in an offshore company… – Continue reading
Antony Ting describes it as “like finding treasure”. It was 18 months ago when the powerful US congressional committee blew the lid on Apple’s aggressive corporate tax structure, which allowed it to funnel $US44 billion dollars out of the countrythrough a network of tax haven subsidiaries. Dr Ting, a senior… – Continue reading
Audits may now be based on risk of tax evasion The government has dropped the Rs 15-crore threshold for referring transactions between a multinational company and its Indian subsidiary for compulsory scrutiny by the tax department. It might, instead, move towards a risk-based approach to identify international transactions prone to… – Continue reading
MINNEAPOLIS (WCCO) — A tough new ad from Democratic Sen. Al Franken accuses his Republican opponent’s business of avoiding taxes by headquartering overseas. But Republican Mike McFadden calls the ad “ridiculous” and “full of lies.” The ad marks a new Franken campaign strategy: directly attack McFadden for his business dealings…. – Continue reading
(Seychelles News Agency) – The Seychelles has become an early adopter of an agreement launched by the G5 group of countries – the United Kingdom, France, Germany, Italy and Spain – to automatically disclose details of individuals who have taxable income kept in offshore accounts. According to a press statement by Her Majesty’s… – Continue reading
Mention financial secrecy at the dinner table ten years ago and you would most likely have been greeted with a blank stare. Tax evasion in particular was a subject matter deemed largely the preserve of accountants and frustrated FBI men seeking circuitous ways to prosecute mobsters. These days, though, the… – Continue reading
Last year, $20 trillion disappeared into secret off-shore tax havens across the world — an amount that can save 3.6 million lives annually. A study conducted by the UK-based NGO, ONE, has found that corruption, tax evasion and corporate malpractices is leading to monetary losses of the scale that could… – Continue reading
Aug. 28 — The hardest part about forming an offshore company in the Republic of Seychelles may be coming up with a catchy name.Luckily for applicants, that can be a multiple choice question.Seychelles, a nation of islands off the east coast of Africa, is gaining popularity as a tax haven,… – Continue reading
More to the point, extant global financial architecture facilitates transfer of illicit money through the Hawala route first to a Tax Haven, only to launder it in specialised locations like London. “There are 42,800 persons – let me repeat, only 42,800 persons – who admitted to a taxable income exceeding… – Continue reading
Education and Economic Development Minister Grant Gibbons said yesterday the Registrar of Companies’ data on new company incorporations for the second quarter of 2014 continues to show a strong positive trend in the number of new company registrations. Results following the close of the quarter in June showed that the… – Continue reading
Despite the political and media pressure on offshore financial centers, new incorporations of offshore companies worldwide continue to grow. A new report on offshore company incorporations by law and fiduciary firm Appleby shows that new company registrations increased in most offshore jurisdictions in the second half of 2013. “As the… – Continue reading
(Reuters) – The U.S. government has grappled for more than 30 years with corporate deals known as inversions in which U.S. companies shift their tax domiciles abroad to avoid U.S. taxes. Fifty-two substantial deals like this have occurred since 1983, about half of them since the 2008-2009 credit crisis, according… – Continue reading
Since the global financial crisis struck in 2008, offshore financial centres (OFCs) have come under sustained attack. As the world’s leading economies struggled to balance their books in the face of massive declines in tax revenue, the lowest fruit was seen to be hanging from the offshore tree. Estimates of… – Continue reading
