A tax fraudster who hid his true wealth in the UK has been jailed for four years after police discovered he was building a £2.3 million ‘PALACE’ abroad. Mohammed Suleman Khan, 42, lived a luxury life in Birmingham despite no obvious income. But he was handling huge amounts of undeclared… – Continue reading
March 31 –A proposed country-by-country reporting template will not require multinational companies to break down financial details by legal entity, an official with the Organization for Economic Cooperation and Development announced March 31. Joseph Andrus, head of the OECD’s transfer pricing unit, said that Working Party No. 6 has tentatively… – Continue reading
Abstract The Foreign Account Tax Compliance Act (FATCA) represents a powerful response by the United States to flagrant offshore tax evasion. Although the new reporting regime has been criticized as unilateral and extraterritorial, this short article, prepared for a symposium hosted by Pepperdine Law Review, shows that multilateralism and cooperation… – Continue reading
Introduction Article 10 of the Russia-Cyprus double tax agreement grants taxing rights over dividends to the state of residence of the company paying the dividends (in addition to the state of residence of the recipient). The tax that may be imposed in the state in which the dividends originate is… – Continue reading
Potato king Paul Rennie has told a court he is unable to explain why he sent millions of dollars to tax havens in transactions revealed by a Project Wickenby investigation. The Federal Court heard Mr Rennie had been raided by federal police, who seized documents related to his Griffith-area potato… – Continue reading
The Government of the Kingdom of Denmark and the Government of the Republic of Ghana have signed the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains In relation to the Danish Minister for Trade and Development… – Continue reading
In June 2013 the OECD published a report for the G8 Summit regarding delivering a standardised, secure and cost effective model of bilateral automatic exchange of information in a multilateral context. The report noted a step change in international tax transparency driven by developments around the globe and the endorsing… – Continue reading
Washington, DC – With the annual tax filing deadline approaching on April 15, today the Justice Department announced highlights of its work during the past year to enforce the nation’s tax laws. The Tax Division has worked with the Internal Revenue Service (IRS) to carry out their combined tax enforcement… – Continue reading
1. The traditional attitude to tax avoidance is encapsulated in the judgment of Lord Tomlin in the English case of IRC v Duke of Westminster (1936): “Every man is entitled if he can to arrange his affairs so that the tax attaching under the appropriate Acts is less than it… – Continue reading
A joint effort by India and the US to amicably decide on their respective shares of taxes from IT and ITeS companies operating in both countries is threatening to unravel, owing to a big, seemingly unresolvable gap between the transfer pricing (TP) margins individually determined by them. While New Delhi… – Continue reading
The OECD has been prolific in its publication of discussion documents since the start of the year. OECD discussion draft documents have been released in respect of: Action 13: Transfer pricing documentation and country by country reporting – 30 January 2014 The BEPS Action Plan issued on 19 July 2013… – Continue reading
They have big money and experienced staff, and operate with effortless sophistication. These are some of the features of multinational companies that use complex instruments to avoid paying taxes especially in developing countries. Mindful of this, Uganda Revenue Authority is keeping on guard. The tax body has joined a global… – Continue reading
On Tuesday, the House Ways and Means Committee holds a hearing to discuss making permanent several of multinationals’ favorite tax code provisions, including the Apple loophole. Thus the House, like the Senate, is in the early stages of enacting these expired provisions yet again. That’s how Congress traditionally gives multinationals their offshore tax loopholes: propose… – Continue reading
Given the proximity of Canada to the U.S., it is not surprising that many Canadians own real estate south of the border. Some, especially those who are retired snowbirds, also spend a good part of the year in the U.S. It is important to understand what the tax implications are… – Continue reading
We are a tax avoidance nation. Almost everyone employs some strategies to avoid paying more taxes than they should. So it’s hardly news to anyone, except Sen. Carl Levin, D-Michigan, that Caterpillar Inc. may have employed some strategies to reduce the amount of federal taxes it pays. Levin, chairman of… – Continue reading
Irish Economy 2014: Ibec, Ireland’s leading business lobby group, in its latest economic forecast today forecasts “continued robust growth in services exports and a recovery in goods exports.” The strong growth in services mainly reflects tax-avoidance related revenue diversions to Ireland that do not reflect local economic activity. If the… – Continue reading
Commission proposal to clamp down on companies cheating tax by opening subsidiary companies in different member states supported by vast majority of MEPs. On Wednesday Labour MEPs were part of a very small minority of 32 MEPs who voted against a resolution backing the Commission’s proposal to tighten the Parent-Subsidiary… – Continue reading
ZURICH (Reuters) – Credit Suisse faces the threat of a new investigation into its role in helping wealthy Americans avoid paying taxes after New York state’s top financial regulator requested documents from the Swiss bank. Switzerland’s second-largest lender had raised expectations it was putting the long-running American tax controversy behind it when it… – Continue reading
The revenue the UK Government will see in its coffers as a result of the Liechtenstein Disclosure Facility amnesty scheme “is likely to fall significantly short of its £3bn target”, a UK law firm has predicted. With just two years left to run, the number of new LDF registrations each… – Continue reading
Luxembourg and the US have signed an intergovernmental agreement (IGA) to implement the Foreign Account Tax Compliance Act (FATCA). Luxembourg and the US negotiated a Model 1 IGA, requiring the Luxembourg Tax Administration and the US Internal Revenue Service (IRS) to exchange information automatically on accounts held by US citizens… – Continue reading
During 2013, the Central Bank of Barbados (Bank) continued to enhance its regulatory framework in response to emerging international standards and best practices and to collaborate with other domestic regulators and stakeholders on various national issues, including the Global Forum on Transparency and Exchange of Information for Tax Purposes Peer… – Continue reading
On January 30, 2014, the Organization for Economic Cooperation and Development (OECD) released a discussion draft for comment on Action 13; the transfer pricing documentation prong of the Base Erosion and Profit Shifting (BEPS) project, which includes country-by-country reporting. As the Committee of Fiscal Affairs believes it is essential to… – Continue reading
Offshore companies can not acquire and have ownership of agricultural land in Bulgaria, according to the latest amendments to the Agricultural Land Ownership and Use Act. The changes to the Agriculture Land Act were passed on second reading, Thursday, Bulgarian BTV reports. The restriction applies to joint-stock companies that have issued bearer shares, as well…. – Continue reading
The National Treasury and the SA Revenue Service are discussing entering into an inter-governmental agreement (IGA) with the United States on a foreign tax compliant act, Sars said on Thursday. “The wording of a draft IGA has now been agreed upon and will be signed at governmental level as soon… – Continue reading
The United States Department of the Treasury and the Internal Revenue Service (IRS) have announced that foreign jurisdictions that have reached agreement on the terms of intergovernmental agreements (IGAs) under the Foreign Account Tax Compliance Act (FATCA) can be treated as having such agreements in effect until the end of… – Continue reading
April 2 — The Treasury Department and the Internal Revenue Service announced that countries that have reached intergovernmental agreements (IGAs) in substance under the Foreign Account Tax Compliance Act before July 1 will be treated as having signed agreements through Dec. 31, 2014, winning praise from practitioners. The government also said… – Continue reading
Canadians who spend their winters in the warmer climates of the United States may be attracting some unwanted attention starting this year. A new tax treaty between Canada and the United States has spawned a cozy relationship between the Canada Revenue Agency and the U.S. Internal Revenue Service. The two… – Continue reading
Baku, Fineko/abc.az. The U.S. is waiting for Azerbaijan’s response on the agreement on the exchange of tax information on the FATCA rules. The U.S. Embassy reports that the US has engaged the Azerbaijani government on this issue. “Now we’re waiting for their response. The US government is negotiating similar arrangements… – Continue reading
Bloomberg news reports that on March 18, 2014, U.S. Senators Carl Levin and John McCain wrote a letter urging the Justice Department to seek extradition of about 30 Swiss bankers and others who are charged with enabling offshore tax evasion and failed to appear in federal courts. McCain and Levin,… – Continue reading
On 27 March 2014, the Commissioner of Taxation announced an initiative to allow eligible taxpayers to come forward and voluntarily disclose unreported foreign income and assets. He urged taxpayers with offshore assets to declare their interests ahead of a global crackdown on people using international tax havens. The initiative covers… – Continue reading
Banking regulations in Caribbean nations are more robust than those in countries that are critical of the region’s financial sector, Bahamian Prime Minister Perry Christie said Monday in Nassau. In an address to open the third Caribbean Conference on the International Financial Services Sector, Christie blasted those who seem to… – Continue reading
The department had slapped a tax demand of Rs 2,080 crore on the company last year while re-opening the assessment for AY 2006-07 and 2007-08. As Finnish phone-maker Nokia strives to meet the April 30 deadline for sealing the $7.2 billion deal with Microsoft, its tussle with the Indian tax… – Continue reading
CFOs of multinationals face growing confusion because of mixed message on new tax rules around the world that threaten investment and the global recovery, a new study revealed on Wednesday. A total of 74 percent of finance chiefs polled in the study by Taxand, a global tax adviser, said political… – Continue reading
Canada is clamping down on off-shore tax shelters used by private-equity funds, in a move that may curb investment in the oil and gas industry by KKR & Co. and Blackstone Group LP. (BX) The government has given private-equity firms and other interested parties until April 11 to respond to proposals tucked… – Continue reading
Macquarie Group successfully lobbied the Abbott government to water down and delay moves to tighten laws over which the bank is fighting a tax battle worth hundreds of millions of dollars. Fairfax Media has learnt that Macquarie was among industry players who attended a November 6 meeting with then-assistant treasurer… – Continue reading
BRUSSELS: While the origin of illicit financial flows ranges from government embezzlement to human trafficking, and from corporate tax evasion to grand corruption, the destination seems less ambiguous. A $35 million mansion in California, artwork totalling 18 million, and a $38 million dollar private jet. These sound like items purchased… – Continue reading
Credit Suisse Group (CSGN) AG, Switzerland’s second-biggest bank, said losses in the fourth quarter were larger than previously reported after it booked more charges for a probe into tax evasion by U.S. clients. The net loss amounted to 476 million Swiss francs ($534 million), the Zurich-based bank said today, as… – Continue reading
Corporate Tax Reform: The Organisation for Economic Co-operation and Development (OECD) held a briefing and webcast at its Paris headquarters Wednesday on its Base Erosion and Profit Shifting (BEPS) project and Pascal Saint-Amans, the director of the OECD’s tax centre confirmed that “Double Irish Dutch” sandwich tax schemes, which involve… – Continue reading
ActionAid Ghana (AAG) said Illicit Financial Flows (IFFs) was depriving Africa of billions of dollars each year, more than is received in overseas development aid or foreign direct investment combined. It said IFFs were commonly associated with criminal activity like drug dealing, smuggling or human trafficking, adding that the United… – Continue reading
WASHINGTON — Caterpillar Inc. executives defended a tax strategy Tuesday that has saved the manufacturing giant billions in U.S. taxes. They got support from Republican senators, including one who said the company deserves an award. Caterpillar has avoided paying $2.4 billion in U.S. taxes since 2000 by shifting profits to… – Continue reading
Outlook Caterpillar is the world’s largest maker of construction and mining equipment. It’s really good at building big and complicated bits of kit. It’s even better at ducking paying tax on the profits from doing that, at least according to a report issued by a US Senate sub-committee which reckons Uncle… – Continue reading
The decision by Luxembourg and Austria to automatically exchange tax data with other European Union countries has isolated Switzerland in the global crusade against banking secrecy, a Tax Justice Network (TJN) expert tells swissinfo.ch. The two European Union states caved in to demands last month by signing up to the revised… – Continue reading
Caterpillar channeled 85 percent of its international parts profits into what amounts to a tax shelter. The dictionary defines the caterpillar as a “wormlike larva” and a “crawler.” Also, that “pillar” part of the word is derived from a French verb that means to “pillage, abuse, mistreat.” Good to know…. – Continue reading
Expats should put their financial affairs in order while they have the chance as governments around the world prepare a global tax net aimed at wiping out avoidance. The operation is headed by the Organisation of Economic Co-Operation and Development (OECD) and closely follows the lines of the controversial US… – Continue reading
On Friday the Conservative government tabled legislation to implement key elements of this year’s Budget. But it contains more than tax credits. Buried within is a revised version of draft legislation implementing the Intergovernmental Agreement (IGA) with the U.S. on FATCA. A Department of Finance press release makes no mention of this… – Continue reading
ZAMBIA, which has signed 22 double taxation treaties (DTT) with various nations has been urged to develop its own model that suits particular circumstances to maximise benefits. Double taxation is levying of taxes on the same income (or capital) of the same tax payer in the same period. According to… – Continue reading
Caterpillar avoided $2.4 billion in federal taxes between 2000 and 2012 by shifting $8 billion in profits from international parts sales to a tax haven in Switzerland, said Chairman Carl Levin, (D-MI), of the Senate Permanent Subcommittee on Investigations on Monday. Joining Microsoft (MSFT), Hewlett Packard (HPQ) and Apple (AAPL),… – Continue reading
Luxembourg’s Prime Minister Xavier Bettel said the conclusions adopted at the recent European Council meeting on the revised Savings Tax Directive have enabled “a green light from the Grand Duchy of Luxembourg.” He expressed his satisfaction that all 28 European Union (EU) member states reached an agreement at the latest… – Continue reading
The US and Luxembourg governments have signed an agreement to improve international tax compliance and to implement the Foreign Account Tax Compliance Act (FATCA). On 27 February 2014, the Luxembourg and US negotiating teams agreed on the substance of the Model 1 Agreement. ALFI – the Association of the Luxembourg… – Continue reading
Harben Barker is breathing a huge sigh of relief – along with the accountancy profession in general – after the Court of Appeal threw out a High Court finding that the firm had a duty to advise wealthy clients to avoid tax The five-director firm based in the West Midlands… – Continue reading
