Companies have every right to minimise their own tax burdens, but shrinking your footprint only lasts so long before someone gets annoyed. For Apple Australia and Google Australia, that time might be nigh as the Australian Taxation Office (ATO) reportedly gears up to investigate the pair for tax minimisation. The ABC… – Continue reading
STUDIES show multinationals shift profits of $365bn a year from developing to developed countries through transfer pricing mechanisms, the South African Revenue Service (SARS) said on Tuesday. Over three years South Africa has seen “hundreds of billions of rand” leaving in royalties, management and service fees and intellectual property payments,… – Continue reading
The mainland’s efforts to fight tax evasion brought in 46.9 billion yuan (HK$59.2 billion) of additional taxes in 2013, 38 times more than 2008, according to the website of the State Administration of Taxation. Since 2011, China’s transfer pricing agreements with Hong Kong and Macau have saved 34.57 billion yuan… – 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. The British Virgin Islands, Liechtenstein and Jersey are among 44 countries that have set… – Continue reading
Changes to Ireland’s residency rules, designed to eliminate mismatches between tax treaty partners, have not yet affected the residency status of any company, Finance Minister Michael Noonan has confirmed. The reforms were introduced in Noonan’s 2014 Budget and included in this year’s Finance Bill. They are intended to prevent companies… – Continue reading
US companies appear to be thumbing their noses at a global crackdown on tax avoidance, with share registry group Computershare reporting an increase in multinationals re-incorporating in Ireland. In a briefing to investors on its regional outlook last week, Computershare said its Irish division had noticed ”further momentum in US… – Continue reading
The British Virgin Islands Government has today announced the conclusion of negotiations with the United States on a Model 1 Intergovernmental Agreement (IGA) under the US Foreign Account Tax Compliance Act (FATCA). In a statement the Ministry of Finance of the BVI Government said the final text of the agreement has been… – Continue reading
On February 5th, 2014, the Canada signed an intergovernmental agreement (“IGA”) with the U.S. regarding the U.S. Foreign Account Tax Compliance Act (“FATCA”). Under the terms of FATCA, Canadian financial institutions need to report directly to the U.S. Internal Revenue Service (“IRS”) any information regarding bank accounts held by U.S…. – Continue reading
The Swiss Council of States has adopted a bill forwarded on from the Federal Council with modifications, implementing the revised Financial Action Task Force (FATF) Recommendations. Lawmakers increased the tax threshold for a case of tax evasion to be deemed to be a serious tax offence, from CHF200,000 (USD229,164) to… – Continue reading
MUNICH, Germany — German prosecutors said Monday they won’t appeal against Uli Hoeness’ 3 1/2-year sentence for tax evasion, clearing the way for the former Bayern Munich president to start his prison term. Hoeness, one of German football’s most prominent figures, was convicted last Thursday of evading about 28.5 million… – Continue reading
Financial institutions in Bermuda, such as banks and trust companies, will soon be obliged to provide information to foreign tax authorities relating to the financial affairs of United States (US) and United Kingdom (UK) resident clients. The Foreign Account Tax Compliance Act 2009 (US FATCA) is a US law designed… – Continue reading
Not a single company has contacted the tax authorities to say they have been affected by changes announced in the budget as part of Finance Minister Michael Noonan’s clampdown on international tax avoidance. In October’s budget, Mr Noonan included a measure that required any company incorporated in Ireland to be… – Continue reading
The benefits of the New Zealand Government’s desire to push export led growth, as part of its overall economic strategy, could be stymied by a lack of clarity over proposed cross-border tax changes. New research from the Grant Thornton International Business Report survey (IBR) reveals that New Zealand business leaders… – Continue reading
Austrian Finance Minister Michael Spindelegger said a deal on extending a European Union savings tax is in Luxembourg’s hands. Austria “can agree to this tomorrow — it’s not up to us if there isn’t agreement,” Spindelegger told reporters before a two-day meeting with his European Union counterparts in Brussels today…. – Continue reading
From “Tiger of the Indian Ocean” to “Cyber island”, Mauritius has turned now into a “Safe and Reliable Investment Hub” in terms of good governance as well as ethical, economic, political and social stability. Ranked 1st in Sub-Saharan Africa in the World Bank‘s Doing Business Report 2013, Mauritius offers a particularly favorable setting for doing business…. – Continue reading
Jersey Finance has welcomed the signing of the Tax Information Exchange Agreement (TIEA) with Belgium which took place in London on Thursday (March 13, 2014). The new agreement brings the total number of tax agreements Jersey has now signed with EU Member States to 20, which includes both TIEAs and… – Continue reading
Celebrities and major companies locked in legal battles over tax-avoidance schemes will be forced to pay up before their cases are resolved, under new rules to be introduced in this week’s Budget. The rules will hit 65,000 companies and individuals in dispute with the taxman over their use of complex… – Continue reading
BERLIN — When all of his cards were played and Uli Hoeness, the Bayern Munich president and German soccer legend, faced the prospect of a protracted and high-profile appeal of his conviction on charges of tax evasion, he chose to take his punishment. In a surprise move that came hours… – Continue reading
Inland Revenue today released its interpretation of what it means to be tax resident. “This is a particularly important document for New Zealanders living and working overseas. For these people, remaining tax resident in New Zealand can have significant financial implications.” says Rebecca Armour, Tax Director and Head of International… – Continue reading
12 March 2014: In its 2013 Annual Report, the Luxembourg Direct Tax Authorities reported that they have negotiated new tax treaties with Hungary, New Zealand, the UK and Uruguay. It is also reported that 659 exchanges of information upon request, spontaneous information exchanges and automatic exchanges of information have been… – Continue reading
THE INTRODUCTION of changes to the taxation of limited liability partnerships will go ahead on 6 April 2014 despite calls from the House of Lords Economic Affairs Committee and practitioners for 12 months’ delay to the measures. The lords recommended the easement to be put in place until 2015 in order… – Continue reading
France’s disgraced former budget minister Jerôme Cahuzac, who was sacked after admitting he hid funds in a Swiss account, also had a €2.5 million stashed in a secret bank account in the Isle of Man, a British tax haven, it was claimed on Thursday. Cahuzac’s estranged wife Patricia admitted the… – Continue reading
OECD tax director Pascal Saint-Amans has played down concerns that the United States might resist plans to make multinational companies such as Apple and Starbucks pay more tax, arguing that governments must move quickly to close multibillion-dollar loopholes or risk ordinary citizens losing faith in their taxation systems. Mr Saint-Amans… – Continue reading
KUALA LUMPUR: Small and medium enterprises (SMEs) should tap Hong Kong’s access to the markets in China, Japan and South Korea to gain tax advantages under the double-taxation deduction pact signed between Malaysia and HK. Hong Kong Trade Development Council deputy executive director, Margaret Fong, said HK SMEs paid five… – Continue reading
KUALA LUMPUR: Small and medium enterprises (SMEs) should tap Hong Kong’s access to the markets in China, Japan and South Korea to gain tax advantages under the double-taxation deduction pact signed between Malaysia and HK. Hong Kong Trade Development Council deputy executive director, Margaret Fong, said HK SMEs paid five… – Continue reading
MoUs on joint committee and cooperation in higher education Tirana: UAE Foreign Minister Shaikh Abdullah Bin Zayed Al Nahyan met in Albanian capital Tirana Ditmir Bushati, Albania’s Foreign Minister, and discussed with him avenues of joint cooperation between the two friendly countries. The two ministers signed an agreement on avoidance… – Continue reading
Andreas Bachmann of Credit Suisse helped Americans hide $3 billion from Uncle Sam A former Swiss banker pleaded guilty Wednesday to his role in a fraud scheme that prosecutors say helped U.S. taxpayers hide as much as $3 billion in assets from the IRS. Andreas Bachmann, 56, a Swiss citizen,… – Continue reading
The young Ukrainian ex-billionaire Serhiy Kurchenko, now widely suspected of being a front man for overthrown President Viktor Yanukovych’s family, clearly liked offshore destinations. His companies registered in offshore zones are now accused of trading in oil products using a tax evasion scheme that cost Ukraine’s government an estimated $1… – Continue reading
The rich are not like the rest of us, and neither are their offshore bankers. Court documents filed in a big tax evasion case in Northern Virginia provide just a glimpse of the extra services available if you have the means and will to maintain secret accounts with large banks in Switzerland… – Continue reading
The Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Bill contains proposed legislative amendments to give effect to the intergovernmental agreement (IGA) New Zealand is currently negotiating with the United States in respect of the United States’s Foreign Account Tax Compliance Act (FATCA). The Commentary to the Bill states that… – Continue reading
Dubai: The US and UAE governments are in the process of signing the FATCA Intergovernmental Agreement (IGA). Under this agreement, banks and financial institutions in the UAE will be required to annually compile data for submission to the UAE regulatory authorities. The UAE Ministry of Finance would then send this… – Continue reading
Many UK advisers believe that the Foreign Account Tax Compliance Act (FATCA) only applies to UK trusts if there are US beneficiaries, settlors or investments. This is not true. FATCA will apply to all financial institutions (banks, brokerage firms, trust companies and all financial accounts) in the UK and will… – Continue reading
Jersey and the Kingdom of Belgium signed a tax information exchange agreement (TIEA) at the Residence of the Ambassador for the Kingdom in London today (13 March 2014). The TIEA was signed for Jersey by the Minister for External Relations, Senator Sir Philip Bailhache. The Belgian Deputy Prime Minister and… – Continue reading
The draft double taxation agreement between Cyprus and Latvia has been published by the Latvian authorities, allowing practitioners a “sneak preview” of its provisions. The draft agreement requires the approval of the Latvian Cabinet of Ministers before signature. After signature it will need to be ratified by both countries before… – Continue reading
In order to encourage the growth of international trade including that of financial services, successive Maltese governments have sought to conclude double tax treaties with important trading partners as well as with emerging countries. This policy is expected to continue in the future. To date, treaties are in force with… – Continue reading
Georgian Finance Minister Nodar Khaduri and Ambassador of the Federal Republic of Germany to Georgia Ortwin Hennig will sign a protocol to amend the Agreement on liquidation of double taxation between Germany and Georgia on March 10. Khaduri and Hennig will also sign an agreement on financial cooperation and specific… – Continue reading
There has been considerable publicity in recent months on the alleged tax avoidance perpetrated by multinationals that has resulted in the Organisation of Economic Cooperation and Development (OECD) publishing its action plan on base erosion and profit shifting (BEPS). The action plan, consisting of 15 proposals to counter the perceived… – Continue reading
Country’s corporate tax rate sits at about 25 per cent As Canadians dutifully file personal income tax returns during the coming weeks, consider this: many profitable companies pay little or no tax. In an interview this week on The Sunday Edition, Dennis Howlett, executive director of Canadians for Tax Fairness,… – Continue reading
As of January 1st 2014, Cyprus entered into five new Double Tax Treaties (DTT’s) with Estonia, Finland, Portugal, Spain and Ukraine expanding its already rich list of DTTs. All the agreements aim to avoid double taxation between the mentioned countries and follow the OECD conventional model on income and capital. The… – Continue reading
The British Virgin Islands and the United States are close to signing an agreement on implementing the US’ Foreign Account Tax Compliance Act financial law (FATCA). Last week, the two sides concluded their talks on the agreement, initialing the final text of an agreement. In a statement, the British Virgin… – Continue reading
Apple, famous for its innovative products, is equally creative in its tax structure. From 2009 to 2012, it successfully sheltered US$44 billion from being taxed anywhere in the world, including sales generated in Australia. While there are probably some sound reasons for Apple’s CEO, Tim Cook, to claim in a US congressional… – Continue reading
Last summer, HM Revenue & Customs (HMRC) published proposals for major changes to the UK’s rules on the taxation of partnerships. The primary aim of the proposals was to counter arrangements which HMRC regarded as tax avoidance—in particular: disguised employment – the appointment of an individual as a member of a UK Limited… – Continue reading
European Union finance ministers failed once again Tuesday to agree on a sweeping new policy to fight tax evasion because of resistance from Luxembourg, a tiny country that long has prospered from a secretive banking culture. EU Taxation Commissioner Algirdas Semeta said their failure was disappointing because, if approved, the… – Continue reading
The Grand Duchy of Luxembourg, a city state of just over a half million inhabitants, on Tuesday refused to agree on a proposed key EU tax evasion law at the monthly Ecofin meeting of European Union finance ministers. Algirdas Šemeta, EU taxation Commissioner, said Tuesday’s failure was “disappointing” because the legislation… – Continue reading
The OECD proposes to reform transfer pricing documentation for multinational enterprises and to impose onerous country-by-country (CbC) reporting obligations, including disclosure of taxes paid in each country in which a business operates, in a bid to enhance revenue authorities’ abilities to identify high risk transfer pricing situations and to make… – Continue reading
A prominent tax lawyer says that proposed federal legislation relieving Canadian financial institutions from onerous obligations under the U.S. Foreign Account Tax Compliance Act “eviscerates” an intergovernmental agreement signed between Canada and the U.S. earlier this month. “The U.S. Treasury Department may view the legislation, if passed in its current form, as an… – Continue reading
The Bermuda Court of Appeal has ruled that the target of an intergovernmental request for information under a Tax Information Exchange Agreement (TIEA) may require the Attorney General to produce the terms of the request in order to confirm that the request meets the statutory requirements under the International Co-operation… – Continue reading
As far back as the early stages of the global financial crisis in 2007, Nick Mathiason citing the African Union (AU) reported: “More than $150 billion a year is looted from Africa through tax avoidance by giant corporations and capital flight using ‘a pinstripe infrastructure’ of Western banks, lawyers and accountants.”… – Continue reading
The European Union says it is freezing the financial assets in Europe of 18 Ukrainians it says misused the Kyiv government’s state funds. The EU’s foreign ministers approved the list Wednesday but withheld the names for a day before their official publication in the EU’s legal journal, so the Ukrainians… – Continue reading
The inevitable march towards automatic exchange of information (AEI) as the Organization for Economic and Cooperation’s (OECD) global standard was just one of the issues discussed at a recent international tax conference held in Liechtenstein. During his address, Head of the OECD International Cooperation and Tax Administration Division, Achim Pross,… – Continue reading
