On 30 July 2015, Insurance Europe and the Pan European Insurance Forum jointly published a position paper. The paper summarises the views of the European insurance industry regarding the proposals of the Organisation for Economic Co-operation and Development (OECD) in its draft versions of its Action Plan on Base Erosion… – Continue reading
Business executives are giving mixed predictions on when and if tax reform will finally happen in Washington, in a new survey, reports Accountancy Today. The latest Business Tax Reform Barometer survey from the Tax Council and Ernst & Young polled approximately 1,000 business executives, tax directors, government relations representatives and… – Continue reading
The British Virgin Islands had the highest rate of tax compliance out of 12 countries reviewed by the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes, reports Public Finance International. The forum, which has 127 member nations, exists to implement internationally agreed transparency standards and the… – Continue reading
Introduction Following the implementation of the EU Alternative Investment Fund Managers (AIFM) Directive (2011/61/EC) and associated legislation, Cyprus now lays claim to being a growth jurisdiction within the European Union for the establishment and servicing of boutique and low cost alternative investment funds based locally or offshore. The choice of… – Continue reading
As global efforts to close loopholes intensify. JOHANNESBURG – South Africans with unauthorised funds abroad better get their affairs in order because tighter regulation in tax havens will soon become a reality, a tax expert has warned. Speaking at a recent seminar hosted by The Wealth Corporation, Tony Davey, director… – Continue reading
Until 2009 Switzerland had the questionable reputation of being the ideal parking spot for all kinds of money. The USA action against the UBS was the start of a series of actions to change old practices. Being the world number one in offshore money management, inevitably resulted in Switzerland being… – Continue reading
On May 20, 2015, the U.S. Treasury Department (“Treasury”) released five sets of proposed revisions to the U.S. Model Income Tax Convention (“Model Treaty”) for public comment. The Model Treaty was last updated in 2006. The purpose of the proposed revisions is to ensure that the United States maintains the… – Continue reading
MUMBAI: HSBC has been asking all “politically exposed persons” (PEP) having accounts with the bank to disclose their source of fund and income. The bank is also refraining from opening accounts of US-based non-resident Indians and persons of India origin in the wake of the Foreign Account Tax Compliance Act… – Continue reading
Currently, olim are exempt from Israeli tax on overseas income and gains for 10 years. Now that the Israeli election is long forgotten, government officials have circulated their decisions on what state budget proposals should be presented to the cabinet for approval and submission to the Knesset for enactment. Some… – Continue reading
The Davis Tax Committee’s First Interim Report on Estate Duty (“DTC Report”) was released for public comment on 13 July 2015. In essence, the DTC Report proposes that “a highly progressive tax that patches loopholes, helps provide equality of opportunity and reduces the concentration of wealth, must be implemented”. The… – Continue reading
Law firm Edwin Coe maps out the upcoming changes to the taxation of high net worth individuals in the UK, as announced in the last two Budgets. While many commentators have focused their sympathies on those reliant on benefits following last month’s Summer Budget, law firm Edwin Coe argues that… – Continue reading
Cyprus and the Islamic Republic of Iran signed a double taxation and a fiscal evasion treaty which aim at helping the two countries develop bilateral trade and economic links, the finance ministry said today. “Expansion and upgrading the network of double taxation agreements, is of high economic and political importance… – Continue reading
Romanian prosecutors have completed its investigations into the alleged fraud committed at a local Lukoil refinery and on August 4 indicted the Russian-owned Petrotel refinery, its Russian director-general and five other officials. Prosecutors estimate the losses to the state at RON 7.6bn (€1.76bn), and have seized shares and bank accounts… – Continue reading
A challenge by way of judicial review to notices issued by HM Revenue & Customs (HMRC) requiring “accelerated payment” of tax pending the outcome of a tax dispute has been dismissed by Mrs Justice Simler DBE in the High Court.04 Aug 2015 Tax Disputes and Investigations Litigation & International Arbitration… – Continue reading
Vancouver International Airport is the major port of entry for millions in hidden cash being smuggled into North America by mostly Chinese citizens, a federal document investigation by The Province reveals. And according to money laundering investigators, the amounts identified in Canada Border Service Agency cash seizure data, obtained by… – Continue reading
Two Canadian women begin their Federal Court case in Vancouver on Tuesday, seeking to have a judge declare that Canada’s cooperation in supplying financial information to U.S. tax collectors is unconstitutional. Gwen Deegan, 53, a Toronto graphic designer, and Ginny Hillis, 68, a retired lawyer living in Windsor, were both… – Continue reading
On 11 July 2015 a new Corporate Income Tax Regulation (CITR) was approved in Spain, introducing, amongst other things, amendments to the Spanish transfer pricing reporting requirements. The new requirements largely reflect the recommendations made by the OECD with respect to Action 13 of the OECD Base Erosion and Profit… – Continue reading
The Seychelles Revenue Commission (SRC) has announced that the system enabling financial institutions to report information about their American clients under the United States Foreign Account Tax Compliance Act (FATCA) went live on July 31, 2015, although it is not yet possible for FIS s to upload the necessary data…. – Continue reading
The Government of Jersey has signed a Double Tax Agreement (DTA) with the Republic of Seychelles. The agreement was signed in London on 28 July 2015. The deal is part of a programme by Jersey that aims to develop closer economic and taxation co-operation with other countries. The DTA is… – Continue reading
HSBC has reported its half-year profits are up 10 per cent to £8.7bn as it sets aside £731m to deal with a raft of ongoing regulatory investigations. The bank posted a pre-tax profit of £7.9bn at the same time last year. Its interim results, published today, reveal HSBC has made… – Continue reading
When it comes to opening its $5.7 trillion bond market to global central banks, China is rolling out the red carpet. The world’s top underwriters are struggling to get in the back door. Morgan Stanley set up a joint venture that’s helped manage 30.2 billion yuan ($4.9 billion) of note… – Continue reading
More than AU$600 billion of assets could be managed under a multilateral framework for investment funds in Asia within 15 years, says a report by AT Kearney, but savers and fund managers might not fully benefit from trade liberalisation unless competing schemes in the region are consolidated, reports the Sydney… – Continue reading
CAPITAL flight to offshore tax havens, estimated at between US$21 trillion to US$32 trillion, poses a major challenge especially in tackling income inequality, poverty and debt issues. In total, 10 million individuals around the world hold assets offshore, with almost half of the minimum estimate of US$21 trillion to US$9.8… – Continue reading
NEW YORK, USA — On the heels of revelations earlier this year about questionable Clinton family activities in Haiti, the Wall Street Journal revealed last week that presidential candidate Hillary Clinton and her husband accepted cash from Swiss bank UBS, after she intervened to help it out with the IRS,… – Continue reading
New Delhi, Aug 3: India has signed its first unilateral roll back Advance Pricing Agreement (APA), bringing certainty to tax liability of a US-headquartered multinational company for a nine year period. This is significant as this agreement between the central board of direct taxes (CBDT) and the taxpayer comes within… – Continue reading
An agreement signed between Kenya and the American government could introduce new drastic measures in curbing corruption and help seal loopholes in the dwindling war against the vice in the government. But the initiative could dampen hopes of Cabinet secretaries mentioned in various corruption scandals of ever getting back to… – Continue reading
On July 30, 2015, the Justice Department’s Tax Division announced that three more Swiss banks — PKB Privatbank AG, Falcon Private Bank AG and Credito Privato Commerciale in liquidazione SA (CPC) – have cut deals with the U.S. to resolve allegations that those institutions assisted their U.S. customers in hiding… – Continue reading
The tax and in particular the transfer pricing arrangements of multinationals is currently under the spotlight both internationally, through the OECD/G20 BEPS project, and domestically in Australia, by way of the Senate inquiry into corporate tax avoidance. This has resulted in new legal measures being adopted (such as the DPT… – Continue reading
Tax enforcers are targeting people with big houses, private jets and yachts to make sure they are declaring all of their income. People living millionaire lifestyles and flaunting “badges of wealth” but only declaring a relatively small income will be hunted down by HM Revenue and Customs (HMRC). It has… – Continue reading
The IRS published a list of Information Exchange agreements it has with state agencies, a copy of which is available here IRS State Information Exchange Table.pdf The disclosure of this list may help taxpayer’s and practitioner’s determine when and possibly whether to file late or amended state or municipal returns…. – Continue reading
This article is the third in our current three part series discussing various impacts of the Organisation for Economic Co-operation and Development’s (OECD’s) efforts to address the perceived global tax problem of base erosion and profit shifting (BEPS). The first article provided an overview of the key aspects of the… – Continue reading
On August 3, 2015 the Global Forum on Transparency and Exchange of Information for Tax Purposes published 12 new peer review reports. Phase 1 reports were published on: Albania, Burkina Faso, Cameroon, Dominican Republic, Lesotho, Pakistan and Uganda. The reports assessed these countries’ legal and regulatory frameworks for transparency and… – Continue reading
United Kingdom Budget The Chancellor of the Exchequer delivered his Summer Budget to the United Kingdom (UK) Parliament on 8 July 2015. A number of personal, corporate and indirect tax-related measures were announced in the Budget including a reduced corporate tax rate; introduction of a bank corporation tax surcharge; a… – Continue reading
Australian QROPShave been closed down and kicked off HMRCs ROPS list bar one the LG Super Australian Superannuation scheme which is the Aussie government scheme. QROPS Specialists are offering free QROPS transfers from any Aussie QROPS to a Malta QROPS. The transfer fee and set up fee will be waived…. – Continue reading
Overpayments are often the result of errors on the part of the Government rather than criminal intent Last month the National Audit Office published a ‘stocktake’ of incorrect payments by Department for Work & Pensions and HM Revenue & Customs to those claiming state benefits, including working tax credits. It… – Continue reading
Labour’s housing spokesperson on the London Assembly wants estate agents and mayor Boris Johnson to take money laundering in property more seriously. Tom Copley says recent studies by global pressure group Transparency International suggests over 36,000 London properties are held by companies operating in offshore tax havens. “Owing to the… – Continue reading
Maples and Calder and Maples Fund Services representatives explain how US and UK Fatca will impact Cayman-based funds. The implementation of the US Foreign Account Tax Compliance Act (US Fatca) and the less well-known but equally applicable UK equivalent (UK Fatca) have been a topical and core focus for Cayman… – Continue reading
A Laguna Beach doctor was sentenced today to probation and ordered to pay about $235,000 in fines and restitution for hiding an offshore bank account. Baruch Fogel, an obstetrician and gynecologist, diverted at least $8 million to an undeclared bank account in Luxembourg through the Israel-based Bank Leumi, according to… – Continue reading
UK tax authority HM Revenue and Customs (HMRC) has won a challenge concerning the legality of its accelerated payments regime. HMRC began sending Accelerated Payment Notices (APNs) to UK users of certain tax avoidance schemes in August 2014. The notices give recipients 90 days to pay the tax in question…. – Continue reading
THOUSANDS of pieces of land across Scotland have been snapped up by huge offshore companies – many of which are based in the world’s biggest tax havens. The revelation has prompted fears that firms owning Scottish land are dodging taxes, or even acting as fronts for laundering money. In total… – Continue reading
British expats in Cyprus could lose a host of privileges if Britain withdraws from the EU, a popular expat forum has warned. The website is urging them to register to vote in the UK’s in/out referendum, which could take place as early as the middle of next year. The vote’s… – Continue reading
A millionaire businessman charged over an alleged $63 million tax-evasion and money-laundering scheme can’t afford to pay his legal bills after blowing millions of dollars on luxury cars, boats and an extravagant lifestyle, a court has heard. The taxpayer will now bear at least $624,000 in legal fees incurred by… – Continue reading
CIVIL society organisations and the business community say the impact of Tax Inspectors without Borders (TIWB) initiative meant to curb tax evasion and illicit financial flows depended on the willingness of actors in Zimbabwe to reform and agree to be scrutinised. The TIWB project is aimed at helping developing countries… – Continue reading
Training and planning have helped insurance brokers meet new tax reporting regulations for 2015, and compliance is moving into the “another part of doing business” phase. Initial reporting under the Foreign Account Tax Compliance Act, meant to help combat international money laundering, began Jan. 1. “The go-live in January was… – Continue reading
India and the US recently signed a tax information sharing agreement that will facilitate exchange of information between the two countries, beginning October. Foreign Account Tax Compliance Act (Fatca) was enacted by the US government in 2010, as part of the Hiring Incentives to Restore Employment (HIRE) Act. Fatca requires… – Continue reading
DELHI: Finance Minister Arun Jaitley today said as many as 37,506 tax dispute cases were pending before various Income Tax Appellate Tribunals having a financial implication of Rs 1.45 lakh crore at end March 2015. Similarly, Rs 37,683.98 crore has been locked in 34,281 tax dispute cases pending before various… – Continue reading
The Hong Kong Monetary Authority ordered a local unit of India’s largest bank to pay a HK$7.5 million ($960,000) penalty for failing to carry out proper checks to prevent money laundering and terrorism financing. In its first action since gaining new anti-money laundering powers in 2012, the HKMA said the… – Continue reading
MUMBAI: The Financial Services Commission (FSC) of Mauritius, which is the regulatory body for the Mauritian non-banking financial services sector, has introduced a new application form for obtaining a tax residency certificate (TRC). FSC verifies these applications and recommends issue of the Mauritius tax residency certificate by the Mauritius revenue… – Continue reading
The Barbados Revenue Authority (BRA) was subjected to rigorous assessments by the United States Internal Revenue Service (IRS) recently in a bid to verify the island’s readiness to enact the Foreign Account Tax Compliance Act (FATCA), reports Barbados Today. Anthony Gittens, the BRA’s manager of policy and planning, said as… – Continue reading
The Government of Jersey has published the Agreement between the Government of Jersey and the Government of the Republic of Korea on the Exchange of Information Relating to Tax Matters (hereafter: the TIEA), which was signed on July 21, 2015. Although signed, the TIEA has not yet entered into force…. – Continue reading
