MUMBAI: Many manufacturing and trading subsidiaries of Indian companies that are currently operating independently outside India may have to pay taxes in India as they could fail the new test set under the Place of Effective Management (POEM) guidelines. Not just that, some of the companies could see complications with… – Continue reading
US Democratic presidential hopeful Bernie Sanders has pledged a crackdown on tax avoidance involving Bermuda and other offshore jurisdictions. Mr Sanders, currently trailing Hillary Clinton in the race for the nomination as presidential candidate, made the promise on an online political channel in America. Mr Sanders said he would use… – Continue reading
On 18 December 2015, the Regulations implementing the OECD Common Reporting Standard (“CRS“) in Ireland were approved by the Irish Parliament. This update follows on from previous updates published by Maples and Calder Dublin on CRS and US FATCA and outlines the practical next steps for Irish investment funds and… – Continue reading
Foreign Account Tax Compliance Act is a US global tax law. Countries must agree to the law or face the stick Less than 25 per cent of mutual fund (MF) investors have given out details in line with Foreign Account Tax Compliance Act, or Fatca, a US tax law, said… – Continue reading
“Cash Booked Offshore for Tax Purposes by U.S. Multinationals Doubled between 2008 and 2014” In recent years, U.S. multinational companies have sharply increased the amount of money that they book to foreign subsidiaries. An April 2015 study by research firm Audit Analytics found that the Russell 1000 list of U.S…. – Continue reading
Penalties range from imprisonment to revoking nationally; anyone with a minimum of $10,000 in their bank accounts is subject to the law The US Internal Revenue Service (IRS) will start tracking Americans evading compliance with the Foreign Account Tax Compliance Act (FATCA) as of January 2016, according to Deputy Chairman… – Continue reading
Penalties range from imprisonment to revoking nationally; anyone with a minimum of $10,000 in their bank accounts is subject to the law The US Internal Revenue Service (IRS) will start tracking Americans evading compliance with the Foreign Account Tax Compliance Act (FATCA) as of January 2016, according to Deputy Chairman… – Continue reading
(MENAFN – AFP) US officials announced settlements with four more Swiss banks Wednesday to lift the total fines in the two-year disclosure program to more than 1 billion from 75 banks. “With today’s resolutions under the Swiss Bank Program, the department has reached agreements with 75 Swiss banks, imposed penalties… – Continue reading
With a new year on the horizon it is often at this time when people start thinking about fulfilling a dream of moving abroad and making plans. Others may be thinking about moving back home. For people paying tax in the UK, the country’s tax man has come up with… – Continue reading
At a meeting at the Treasury yesterday, officials from Guernsey, Jersey and the Isle of Man were warned that the UK will not relax its demands for information laid out in formal documents sent to the islands in recent weeks. The document sets out plans to help the islands implement… – Continue reading
Mary-Lou McDonald is one of the more eloquent Dáil performers and she rarely pulls her punches. But consistency has not always been the most remarkable attribute of her contributions. She can be devastating while excoriating the misdeeds of others – but strangely reticent when it comes to matters close to… – Continue reading
The start date for the Common Reporting Standard (CRS) in early adopting countries is approaching fast, with financial institutions required to begin new account on-boarding procedures from 1 January 2016. CRS requires financial institutions in participating jurisdictions to identify account holders who are tax resident in other participating jurisdictions and… – Continue reading
A United States UBS bank client has failed in his bid to sue the Swiss authorities for handing his data to the US during a tax evasion row between the two countries. The European Court of Human Rights (ECHR) said the economic interests of Switzerland outweighed his individual privacy. The… – Continue reading
It’s probably not the best time in the province to announce a payroll rebate to a major offshore bank promising to create 50 jobs in Halifax. Nova Scotia Business Inc. on Tuesday announced a rebate worth a potential $840,000 over six years to the Bank of N.T. Butterfield and Son… – Continue reading
American expats could have their passports revoked next month if they fail to comply with their tax and financial obligations. American expats could have their passports revoked next month if they fail to comply with their tax and financial obligations under the Foreign Account Tax Compliance Act, or Fatca, a… – Continue reading
Dividend income from shares paid into a foreign bank account are among the transactions covered by the Liechtenstein Disclosure Facility which is about to close, accountants warn. Other normal circumstances where offshore tax liabilities may have arisen but can be dealt with via the “generous” LDF include CGT or rent… – Continue reading
The announcements coming out from both the CI government and the UK government on beneficial ownership can provide a lesson in semantics. The arguments are seemingly centered on the meanings of the words “public” versus “centralised.” The “simple definition” of semantics from the Merriam-Webster Dictionary is “the study of the… – Continue reading
A BALANCING ACT in London, folly and redemption in America’s District of Columbia and sheer hypocrisy in Brussels. And in every case, Barbados and many of its Caribbean neighbours were placed in the negative international spotlight at a time when some of the world’s major financial centres are casting about… – Continue reading
China Commits to Automatic Exchange of Tax Information Approved by the State Council, China has committed to the Organization for Economic Co-operation and Development’s (OECD’s) global standard for automatic exchange of tax information and will start to automatically exchange information with other countries’ tax authorities by September, 2018. On December… – Continue reading
A study from Confindustria, the Italian business association, has estimated that tax and social security contributions evaded in Italy amounted to EUR122.2bn, or 7.5 percent of gross domestic product (GDP), in 2014. Confindustria described tax evasion as “a serious obstacle to Italy’s economic and social development because it penalizes equity,… – Continue reading
It is possible that the United States expats could have their passports revoked next month if they fail to comply with their tax and financial obligations under the Foreign Account Tax Compliance Act (FATCA). This was revealed by Mr. Jim O’Niell, Vice President of US Financial Advisory & Audit Firm… – Continue reading
Chinese banks from Hong Kong to London are selling a record amount of yuan-denominated certificates of deposit as China takes steps to curb outflows of the currency. Sales jumped to an unprecedented 66.1 billion yuan ($10.2 billion) this month, data compiled by Bloomberg show. That comes after Hong Kong’s pool… – Continue reading
American citizens risk losing passports if they do not report foreign income, bank accounts Dubai Americans must comply with tax law changes coming into effect in the new year and report income earned abroad and foreign-held bank accounts over $10,000 (Dh36,700) or else they risk losing their passports, a US… – Continue reading
“It is an age-old and universally recognized principle that one sovereign does not assist another in the collection of their taxes . . . but the political sentiment in many countries has changed radically over the years in the light of increasing tax evasion, ” so declared the Singapore High… – Continue reading
While Cayman National maintains its financial stability it says it is unable to declare a dividend as it prepares to pay some CI$5 million as a potential settlement with the US authorities over criminal law breaches related to tax evasion. The financial institution, in its Fourth Quarter report (ending 30… – Continue reading
British offshore tax evaders are being warned that the UK Revenue and Customs Department (HMRC) will start to receive details on British taxpayers from more than 90 countries, including Cyprus, under new global agreements. “The government is giving people one last chance to come clean and get their tax affairs… – Continue reading
Swiss private banking group Julius Baer Group Ltd. (JBAXY.PK,JBARF.PK) may have to pay more than it anticipated to settle a case with the U.S. Justice Department over American offshore accounts, according to media report quoting people familiar with the matter. The report indicated that the U.S. prosecutors could ask Julius… – Continue reading
The provisions commonly known as the Foreign Account Tax Compliance Act (FATCA) became law in March 2010. •FATCA targets tax non-compliance by U.S. taxpayers with foreign accounts •FATCA focuses on reporting: •By U.S. taxpayers about certain foreign financial accounts and offshore assets •By foreign financial institutions about financial accounts held… – Continue reading
Legal experts say court order for restaurant’s parent company based in British Virgin Islands could lead to resolution of more disputes in city Hong Kong’s top court recently gave the go-ahead for the parent company of the famous Yung Kee roast goose restaurant in Central to be wound up, despite… – Continue reading
NEW DELHI: Income tax assessments of Indians holding foreign bank accounts — done hurriedly and on the basis of weak evidence — are now falling apart. The Commissioner Income Tax-4 (Appeals), a quasi-judicial appellate authority had, on October 9, rejected the department’s case on grounds that it had used unauthenticated… – Continue reading
Caribbean nations have long served as tax havens for the world’s economic elite, with many offering so-called economic citizenship where, for large payments, one can simply buy citizenship in their countries. That can save the 1 percent a pretty penny. Overseas tax evasion costs the U.S. government as much as… – Continue reading
Apple CEO says the company pays ‘every tax dollar we owe’ amid debate in the US over corporations avoiding tax by using offshore units Apple’s chief executive Tim Cook has dismissed as “total political crap” the notion that the technology giant was avoiding taxes. Cook’s remarks, made on CBS’ 60… – Continue reading
Edmond de Rothschild (Suisse) SA agreed to pay $45.4 million to avoid prosecution for helping U.S. clients evade taxes, admitting it aided them in moving cash and using sham offshore entities to hide money from the Internal Revenue Service. Rothschild is the 68th Swiss bank to reach an accord with… – Continue reading
When purchasing a real property overseas, there are situations when it may prove advantageous or even necessary to do so through an offshore corporation, rather than owning the property individually. It is crucial to understand that this can also have significant US tax consequences for US persons. Fortunately, “checking the… – Continue reading
The Department of Justice announced today that Edmond de Rothschild (Suisse) SA and Edmond de Rothschild (Lugano) SA (collectively EdR Switzerland) reached a joint resolution under the department’s Swiss Bank Program. EdR Switzerland will pay a penalty of more than $45 million. The Swiss Bank Program, which was announced on… – Continue reading
The Australian Government’s efforts to improve tax collections are more urgent amid falling revenue from weak commodity prices, the Wall Street Journal reports Malcolm Turnbull’s government took the rare step of making public the tax affairs of scores of multinationals, highlighting that many big names—including Apple Inc. and Volkswagen AG… – Continue reading
Not only is Dec. 31 the deadline for any last-minute, year-end tax planning you may be contemplating, but it may also be the last day to come clean to the tax man if you still have an undisclosed Swiss bank account. If that’s you, consider getting your act together and… – Continue reading
According to a research report titled “Illegal Financial Flows from Developing Countries: 2004-2013”, recently published by the Washington based research institute Global Financial Integrity (GFI), Bangladesh stands 26th in the list of 149 developing nations, in terms of flight of capital including money laundering (The Daily Star, December 10, 2015)…. – Continue reading
Dreyfus Sons & Co. has operated for two centuries as a private Swiss bank, catering to Jewish clients who wanted to hide assets from the Nazis during the 1930s and World War II. More recently, it helped U.S. clients hide assets from the Internal Revenue Service by concealing their true… – Continue reading
IP regime To comply with the OECD’s BEPS reports and more specifically its action plan n° 5 regarding harmful tax practices, the Luxembourg intellectual property (“IP“) regime under article 50bis of the Luxembourg income tax law (“ITL“) will be repealed as from 1 July 2016. As such, the Luxembourg 80%… – Continue reading
From next month, offshore tax evasion through tax havens will become more difficult. The Finance Ministry said Thursday that starting January first, financial firms in the country must verify information on financial accounts held in South Korea by overseas residents. This is a prior measure for a system to be… – Continue reading
The whistleblower has been wanted by the Swiss for seven years. Thierry Esch/Getty “There have been times,” Hervé Falciani tells me, “when I’ve wondered if I was losing touch with reality. Could I really have seen what I saw, and revealed the things that I did, while the financial world… – Continue reading
THE Government misses out on £16BILLION a year through people illegally cheating the system and getting away with it, according to an official report. HM Revenue & Customs (HMRC) has an annual tax collection shortfall of £34bn – with almost half the missing cash lost through evasion, hidden economies and… – Continue reading
France’s Socialist government hauled MPs out of bed to attend a late-night parliamentary session this week so they could vote down an anti-tax avoidance measure. They also voted against a move to make a reduction of the VAT rate on online news outlets retroactive, leading to accusations that they are… – Continue reading
As the UK government continues its quest to grab upwards of £500 million in overdue taxes on undeclared overseas bank accounts, the subjects of tax avoidance and tax planning are in the headlines. While many people may be slightly confused as to the difference between tax avoidance and tax planning… – Continue reading
Australian tax authorities on Thursday took the unprecedented step of publishing the records of hundreds of companies, including Google Inc (GOOGL.O) and Apple Inc APPL.O, which show they paid little or no tax on their in-country earnings. Of more than 1,500 largely foreign-owned companies which reported total earnings over A$100… – Continue reading
Fifty-three jurisdictions have agreed to automatic exchange of tax information beginning in 2017, under the OECD’s Common Reporting Standard. Over 40 others have committed to exchange information by 2018. Another wave of global tax information is about to take place, and financial institutions everywhere are in a race to prepare… – Continue reading
16/12/2015 – Today the People’s Republic of China became the 77th jurisdiction to sign the Multilateral Competent Authority Agreement (MCAA), which allows it to move forward with plans to activate automatic exchange of financial account information in tax matters and commence exchanges with other countries in 2018. The G20 Leaders… – Continue reading
Summary In the March 2015 Budget the Chancellor announced tough new sanctions for tax evasion, intended to have a deterrent effect. After a period of consultation, the intention to proceed with these measures was confirmed in the 2015 Autumn Statement. In summary, the measures to be implemented are: A new… – Continue reading
RIGA – The Latvian Financial and Capital Markets Commission (FCMC) on Dec. 11 imposed a record 2-million-euro fine on Ukrainian-owned A/S Privatbank and ordered the dismissal of its CEO and managing board for violations of money laundering and other banking regulatory laws in connection with the alleged plundering and collapse… – Continue reading
