If tax crimes remain civil in nature, foreign governments will not cooperate,” M.B. Shah, chairman of the Special Investigation Team on black money, said. Tax evasion needs to be made a serious “criminal offence” to force foreign countries to reveal names and account details of Indians stashing illicit wealth abroad,… – Continue reading
The latest World Bank quarterly report on Indonesia’s economy estimates that 50 percent of tax potential in the country remains untapped, causing the tax ratio — tax receipts as a percentage of gross domestic product (GDP) — to be very low at only 12 percent, among the lowest in the… – Continue reading
The debate on the goods and services tax (GST) in India has now grown beyond the merits of the tax and forayed into the question of its proper implementation. The unanimous support for the idea of a national tax seems to be based on the benefits of a nation-wide, single… – Continue reading
MUMBAI: The capital market regulator has plugged the loophole that allowed savvy mutual fund investors to lower tax by bonus stripping. The Securities and Exchange Board of India (Sebi) has spelt out that it’s not in favour of fund houses launching new schemes with bonus option in their arbitrage funds…. – Continue reading
Something strange happened in 2014 — Americans became very interested in corporate tax policy. It started in the spring, when U.S.-based pharmaceutical giant Pfizer, which produces blockbuster drugs like Lipitor and Viagra, floated a possible merger with its British-based rival AstraZeneca. Normally a merger of that size would make a… – Continue reading
HM Revenue and Customs (HMRC) has pocketed £32 million after demanding early payments of disputed tax from investors in suspected avoidance schemes. The taxman says this equates to 99% of disputed tax from the first tax avoidance scheme users to be issued with accelerated payment notices. HMRC said that 30… – Continue reading
A new standard that would help stamp out tax evasion by forcing multinationals to give governments details about their tax affairs has been uncosted by Treasury, the latest budget update shows. Under a plan agreed to at the G20 finance ministers meeting in Cairns held earlier this year and then… – Continue reading
A collection of valid points of view 1.The Island Editorial says 2. Further Analysis by Nalliah Thayabharan 3 More observations by Christie 4. Some more observations by Nimal 5. A Possible Solution by NeelaMahaYoda The Island Editorial says; “Opposition presidential candidate Maithripala Sirisena claims that the government leaders’ corrupt deals… – Continue reading
Background On 15 December, 2014, the OECD hosted a webcast to update the global tax community on progress under the Base Erosion and Profit Shifting (“BEPS”) Plan. This year, the OECD produced 10 different reports (“BEPS Reports”) covering several actions specific to transfer pricing. This latest OECD webcast summarised efforts… – Continue reading
Given the publicity surrounding the practices of multinationals in structuring their affairs to minimise their tax liabilities, it is not completely surprising that the UK Government has chosen to act by introducing a new tax, called the Diverted Profits Tax (“DPT”), which applies at the rate of 25% (rather than… – Continue reading
They never really lived in U.S., but still have to pay taxes HONG KONG (CNNMoney) —He left America at the age of seven, has never earned a penny there, but might owe the U.S. government $6,000 in taxes. Meet Elad Shahar, who was born in 1969 to Israeli parents in… – Continue reading
Some of the best tax minds in the country agree on one thing: Corporate tax reform will be a very, very heavy lift. Sure, the White House and top lawmakers who will be in charge of writing tax law next year have signaled their openness to the idea. And, yes,… – Continue reading
With the economy slowing, how will Treasurer Joe Hockey meet his target of doubling tax revenue collected from super funds by 2018? Joe Hockey’s budget update shows that he expects to collect enough money from taxes on superannuation that it will offset the loss of revenue from other taxes. The… – Continue reading
A bill filed in the U.S. House of Representatives proposes to reform the tax code and attract new money for transportation and other infrastructure. The bill filed by U.S. Rep. John Delaney, D-Md., would create incentives for U.S. corporations to bring back profits stored in offshore accounts and invest it… – Continue reading
At its Fall Meeting in Nashville, Tennessee on December 11-12, the MTC’s Executive Committee voted to formally contact states to solidify whether there is sufficient financial commitment to fund any potential MTC transfer pricing program. The MTC also formally announced that Iowa, Pennsylvania and Rhode Island will join the MTC… – Continue reading
JAKARTA, Dec 15 — Indonesia and Singapore have agreed to step up efforts to share tax-related information to tighten loopholes on tax evasion in each other’s countries, Indonesia’s finance ministry said. The commitment came after Indonesia’ Finance Minister met his counterpart Tharman Shanmugaratnam in Singapore today, the ministry said in… – Continue reading
Gains derived from the sale of Mexican public debt instruments listed abroad between two foreign tax residents will soon be exempt from Mexican tax. Currently, for Mexican income tax purposes, any gains derived from the transfer of publicly-traded bonds, securities and other credit instruments are treated as interest. If the… – Continue reading
IN TAX, the latest global buzzword is “BEPS” or base erosion and profit shifting. BEPS refers to the practice of multinational corporations (MNCs) of shifting profits from high tax jurisdictions to low tax jurisdictions as a tax mitigation strategy. In February 2013, the Organization for Economic Co-operation and Development (OECD)… – Continue reading
After multiple revisions of a controversial law, the government is adamant that its citizenship-by-investment programme only provides Maltese nationality to people who establish a genuine link to the country. But there may be hundreds of thousands of tourists in any given year who establish stronger links to Malta than many… – Continue reading
The Federal Board of Revenue (FBR) is suffering massive revenue loss of Rs 361 billion per annum on account of estimated tax expenditure in direct taxes, ie, equivalent to 1.6 percent of the Gross Domestic Product (GDP) as a result of exemptions and concessions to various sectors. Former Finance Minister… – Continue reading
NEW DELHI: A major reshuffle has been effected in the CBDT, with the board’s Chairperson Anita Kapur deciding to assume exclusive charge of Income-Tax department investigations in order to personally spearhead ongoing probes into cases of tax evasion and blackmoney. The charge of I-T investigations, usually, is handled by a… – Continue reading
Dubai: Hong Kong and the UAE will soon start negotiations to sign an investor protection agreement on a bi-lateral basis, John C Tsang, Financial Secretary of Hong Kong told Gulf News during his visit to the UAE. “The agreement will create a lot more comfort for people who are investing… – Continue reading
Russian Prime Minister Dmitry Medvedev stated that Moscow does not intend to “physically drag money” to Russia in the framework of amnesty for capital returning to country suggested by Russian President Vladimir Putin. MOSCOW, December 13 (Sputnik) — Moscow does not intend to “physically drag money” to Russia in the… – Continue reading
As multinationals are forced to reveal more about themselves, where should the limits of transparency lie? HOWARD SCHULTZ, the head of Starbucks, said last year that “the currency of leadership is transparency.” If so, bosses should be feeling ever more qualified to command their troops. Business is being forced to… – Continue reading
Last week’s Autumn Statement was another step in the right direction for the British economy. The economic news it contained continues to warrant cautious optimism. Growth for this year has been revised up to 3 per cent, making us the fastest growing major advanced economy. Unemployment is predicted to fall… – Continue reading
Rep. John Delaney (D-Md.) introduced a new plan Friday to pay for highway improvements through fresh revenues from offshore income. Under the measure, offshore corporate income would be taxed at 8.75 percent, allowing multinationals to bring cash back to the U.S. far cheaper than at the top corporate rate of… – Continue reading
All those Dutch sandwiches, double Irishes and Luxembourg, uh, lunchboxes that US multinational companies use to defer taxes and shift profits abroad are expected to be re-empowered today when the Senate votes to enact a one-year tax extension package. Included in the package is a renewal of two breaks, one… – Continue reading
There’s big news from across the pond. The U.K. government’s Autumn Statement (formerly known as the pre-Budget report), released December 3, promises to change how multinational corporations will be taxed – and offers a cautionary tale for would-be U.S. tax reformers. Britain will introduce a “diverted profits” tax, targeting corporations… – Continue reading
This is a United World interview for USA Today for a report on Antigua and Barbuda. Brian Stuart-Young, CEO of Global Bank of Commerce and Non-resident Ambassador to China, spoke about opportunities for American investors in the energy sector, Antigua’s robust framework for financial services, and the potential for the… – Continue reading
Responding to another leak, the Luxembourg Finance Ministry has said that the advance tax rulings issued to multinationals by the country’s tax authority are not, and never have been, secret. The Ministry issued a statement on December 10 acknowledging the publication by the International Consortium of Investigative Journalists (ICIJ) of… – Continue reading
Russia’s President, Vladimir Putin, has said that tax legislation should remain unchanged for the next four years, and that he wants a one-off tax amnesty for individuals who repatriate capital to Russia. Addressing the Federal Assembly, Putin said that there is a need for stable legislation and predictable rules, which… – Continue reading
HM Revenue and Customs (HMRC) has issued a new factsheet for users of tax avoidance schemes, explaining how its follower notices and accelerated payments regimes operate. The factsheet defines a tax avoidance scheme as “a set of arrangements that try to use the law to gain a tax advantage that… – Continue reading
Iceland appears to be looking to remove its capital controls early in 2015, but would, at the same time, impose an “exit tax” on those foreign investors who have been unable to retrieve their funds that were locked in after the country’s banks defaulted in 2008. It is believed that… – Continue reading
Corruption Scandals In May, the legal committee of Parliament’s lower house approved a proposal to expand Swiss banks’ scrutiny of accounts and transfers to include international sporting organizations. The legislation comes in the wake of a series of corruption scandals that have tarnished the image of FIFA. Last year senior… – Continue reading
There’s big news from across the pond. The U.K. government’s Autumn Statement (formerly known as the pre-Budget report), released December 3, promises to change how multinational corporations will be taxed – and offers a cautionary tale for would-be U.S. tax reformers. Britain will introduce a “diverted profits” tax, targeting corporations… – Continue reading
Responding to another leak, the Luxembourg Finance Ministry has said that the advance tax rulings issued to multinationals by the country’s tax authority are not, and never have been, secret. The Ministry issued a statement on December 10 acknowledging the publication by the International Consortium of Investigative Journalists (ICIJ) of… – Continue reading
Jonathan Gruber, MIT professor and Affordable Care Act (ObamaCare) architect, faced the House Oversight committee earlier this week. Gruber was grilled over his comments pertaining to the passage of ObamaCare through Congress and the law’s mechanics. The professor has been caught on camera multiple times almost bragging about the deception… – Continue reading
This Alert provides more details on the most significant measures contained in the draft Finance Bill. Draft clauses of the UK Finance Bill 2015 were published on 10 December 2014. They will now be the subject of consultation until 4 February 2015. This Alert provides more details on the most… – Continue reading
The US Treasury estimated that it will cost foreign banks and financial institutions $8 billion to comply with Fatca. This amount does not take into account the amount of time and cost that US citizens will need to take to comply with the demands of foreign banks and financial where… – Continue reading
The new EU Competition Commissioner has said there is reasonable doubt about whether Apple’s tax arrangements with Ireland were legal. In her first comments on the investigation into the US tech giant’s tax affairs in Ireland, the Danish Commissioner Margrethe Vestager said the case remained open. This is despite Minister… – Continue reading
Do trustees need to register with the US Internal Revenue Service (the “IRS”) before 1 January 2015? Does registration need to be made in respect of a trust? These questions need to be given due consideration by Cayman Islands and British Virgin Islands (“BVI”) trustees and the trusts in respect… – Continue reading
Exports of Ukrainian goods through offshore companies fell by 90 percent in the first nine months of this year, according to the State Fiscal Service, dropping to $334 million. British Virgin Islands, a jurisdiction known for the lack of transparency, remains the most popular offshore destination with Ukrainian companies, attracting… – Continue reading
In the light of new revelations in the Luxembourg tax evasion schemes, some MEPs will push to fast-track the European Parliament’s legislative reports being drafted by the legislature’s economic committee. “The new revelations show this is a European problem that needs a European solution. Citizens and SMEs pay their taxes,… – Continue reading
Ordinary New Zealanders are carrying the tax burden while the wealthy use every possible means to avoid paying tax, ONE News Facebook readers claim, in response to damning new IRD details released yesterday Yesterday ONE News revealed how some of New Zealand’s wealthiest people worth more than $50 million are… – Continue reading
HM Revenue and Customs (HMRC) has issued a new factsheet for users of tax avoidance schemes, explaining how its follower notices and accelerated payments regimes operate. The factsheet defines a tax avoidance scheme as “a set of arrangements that try to use the law to gain a tax advantage that… – Continue reading
THAILAND has offered tax incentives for regional operating headquarters and international procurement centres for more than 10 years, but there are fewer than 300 companies operating ROHs or IPCs. Recently, the Cabinet approved a measure promoting Thailand as the shared-services hub of the Asean Economic Community. It is expected that… – Continue reading
Maples and Calder Michael Gagie, Richard Grasby, Tim Clipstone, Christopher Capewell, Jon Fowler and Tim Frawley Do trustees need to register with the US Internal Revenue Service (the “IRS”) before 1 January 2015? Does registration need to be made in respect of a trust? These questions need to be given… – Continue reading
Scots could end up being “overtaxed” under plans to hand sweeping new powers to Holyrood as part of the Smith Agreement, MSPs have been told. Leading economists warned that big accountancy firms could start selling schemes to “avoid Scottish residence” in order to escape higher tax rates. Holyrood’s devolution committee… – Continue reading
Summary Corporate tax reform is getting closer, repatriation of foreign profits is a possible outcome. Reform may end the practice of deferment, meaning overseas cash hordes will no longer be part of common corporate practice. Many large U.S. companies will have decisions on how to use funds that are no… – Continue reading
A new UK tax on the ‘diverted profits’ of multinationals operating in the UK “is probably not needed, will be hard to apply and will raise little money” according to one expert. 10 Dec 2014 Corporate tax Tax International tax UK Europe Heather Self of Pinsent Masons, the law firm… – Continue reading
