The federal government forgoes as much as $47.8 billion in uncollected taxes every year, according to a new report that Ottawa has yet to release. These billions represent only a fraction of all taxes that go unpaid because they don’t include taxes owed to the provinces and municipalities — all… – Continue reading
Last Autumn, HMRC issued “Measuring Tax Gaps”, an annual report on the estimated UK tax gap. The tax gap being the shortfall in tax estimated by HMRC as being due in any one tax year from that which is eventually collected. In the accompanying press releases and in comments made… – Continue reading
The Foreign Account Tax Compliance Act (FATCA) United States of America Implementation and Enforcement of the Inter-Governmental Agreement was passed in Parliament without opposition, making it mandatory for Antigua & Barbuda’s banks to provide the banking information of US citizens to the Internal Revenue Service (IRS). The Act requires local… – Continue reading
Authored by IFC Media Recent global events from the release of the Panama Papers to a series of high-profile inversions have given international tax regulators both rhetorical ammunition and public support to execute a global crackdown on multinational tax planning. The goal is to increase total taxes paid by global… – Continue reading
TAX office closures will lead to a surge in the gap between rich and the poor and an increase in tax avoidance as well as people not being paid the minimum wage, the UK Government has been warned. Under controversial HMRC plans 18 Scottish offices, including major centres in Dundee,… – Continue reading
China’s State Administration of Taxation (SAT) issued the Announcement on the Administration of Related-party Transactions and Contemporaneous Documentation (SAT Announcement [2016] No. 42), which introduces a three-tiered documentation framework that will replace its current transfer pricing documentation rules. The June 29 announcement followed the publication of the opinion-seeking draft by… – Continue reading
Wales is to replace stamp duty with a land transaction tax as it moves towards devolved tax collection. The new tax on land transactions will be introduced from April 2018 alongside measures to tackle devolved tax avoidance, the Welsh government said. Land transaction tax is paid on the purchase or… – Continue reading
Israel has signed on as a member of the OECD’s international tax treaty, and as a result the Tax Authority will automatically receive information about bank accounts held by Israelis abroad. Israel, meanwhile, will automatically release information about foreign citizens who have bank accounts here to the governments of countries… – Continue reading
Tanzania’s president, John Magufuli, has extended the e-tax system to all government bodies as he bids to slash fraud. Tanzania’s president, John Magufuli, has been in office for less than a year, but he is already making a name for himself as a staunch opponent of fraud and corruption. Magufuli… – Continue reading
Almost every country and every government now is fighting to detect undeclared Incomes and boost their tax collection. This could potentially help various countries show and collect large taxes from offshore accounts. The renewed thrust on automatic exchange of information (AEOI) between countries could achieve what seemed like a dream… – Continue reading
The world’s major economies need to deepen cooperation on tax collection as companies seek to minimise the amount they pay to governments, finance ministers said Saturday. The issue has become controversial in many countries, with multinational firms from Google to Starbucks facing accusations of not contributing appropriately to the economies… – Continue reading
Slovakia and the United States can now exchange information for tax purposes more easily, thanks to the Foreign Account Tax Compliance Act (FACTA) agreement signed in Bratislava on July 31, 2015. “The objective of the agreement is to prevent tax evasion and tax frauds and improvement of tax collection,” the… – Continue reading
The UAE Ministry of Finance has signed an agreement with Abu Dhabi Global Market (ADGM) on the automatic exchange of information for tax purposes in its premises. This step follows the ministry’s commitment to exchange tax information according to international requirements and sign agreements on the avoidance of double taxation…. – Continue reading
Ukraine and Austria have agreed to sign a protocol to their double taxation agreement to increase withholding tax rates on dividends, interest, and royalty income. The protocol increases the withholding tax rate for dividends and interest to 15 percent and five percent, respectively. Additionally, the royalty rate for patents, trademarks,… – Continue reading
The Dominican Republic and Nauru signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters on June 28, 2016. The two countries are the 97th and 98th jurisdictions to sign the Convention. Nauru, a tiny island nation in Micronesia, has already deposited its instrument of ratification to bring the… – Continue reading
Jamaica and Uruguay today signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters and Brazil deposited its instrument of ratification of the Convention on the occasion of the launch of the OECD’s Latin American and Caribbean Regional Programme and the OECD Ministerial Council Meeting. Jamaica and Uruguay became… – Continue reading
The unpopular Foreign Account Tax Compliance Act (FATCA) of the United States has set off a rash of similar legislation around the world, and Costa Rica has been eager to adopt these international asset reporting treaties, which many taxpayers consider overreaching and in violation of financial privacy. The Costa Rica… – Continue reading
US disregarded entities owned by foreign persons would be treated as domestic corporations under regulations proposed by the US Internal Revenue Service (IRS) on Friday (REG-127199-15). The new rules would apply for purposes of the reporting, record maintenance, and other compliance requirements that apply to 25% foreign-owned domestic corporations under… – Continue reading
With regard to the increasing talk in the US Congress on tax reform, American Citizens Abroad (ACA) has provided the House of Representatives Ways and Means Committee with a full reform proposal for the enactment of residence-based taxation (RBT) for American expatriates. ACA has said lawmakers should enact RBT instead… – Continue reading
Colombia and Panama will sign a financial information-sharing deal aimed at helping Bogota combat tax evasion, the two Central and South American countries said late on Thursday. The deal, set to be signed by the Panamanian and Colombian presidents in June, would establish an initial phase of information sharing until… – Continue reading
History shows us that tax evasion can have terrible effects, from economic inequality to societal collapse. In a world seemingly inured to financial scandals, the Panama Papers leak has reminded us of their capacity to shock. This huge document dump, which has revealed thousands of offshore accounts held in the… – Continue reading
Despite best intentions of the government, there have been little or no takers for India-based fund managers In 2015, the Indian government took a commendable step by introducing a new provision in the Income-tax Act, 1961 (i.e. section 9A), to promote India as a fund manager jurisdiction, and to encourage… – Continue reading
Global international tax takes from multinational companies will almost certainly increase in the next 5-10 years as governments around the world look to level the taxation playing field. Commenting on the New Zealand Herald’s series examining ‘the tax gap’ – multinationals channelling earnings to lower tax regimes, disadvantaging some of… – Continue reading
The tax office plans to deploy a special unit and team up with the Investment Coordinating Board (BKPM) to probe thousands of foreign firms allegedly failing to pay their due taxes. Finance Ministry taxation director general Ken Dwijugiasteadi said around 2,000 foreign investment companies in various sectors, from industry and… – Continue reading
A bill that would have allowed voters to close a tax loophole allowing some of Colorado’s largest companies to hold revenue offshore and avoid paying state income tax died in the Colorado Senate, after being approved by the Colorado House earlier this month. It is the second year in a… – Continue reading
State lawmakers are getting into the act of demonizing corporate inversions even though there is not much they can do to stop them. Corporate inversions, in which U.S. companies merge with or are acquired by an overseas business, are a hot topic on the campaign trail and in the halls… – Continue reading
N.R. Narayana Murthy, Founder and Chairman Emeritus of Infosys, said here on Saturday that reducing friction for business and creating an easy-to-comply-with tax system can help shore up the Human Development Index (HDI) of the country. He also called for jailing people who do not pay tax as it is… – Continue reading
PANAMA CITY BEACH — Bed taxes collected when people stay in hotels and short-term rentals increased for the month of December, the third straight month this fiscal year there was an increase over last year. The Bay County Tourist Development Council announced a 3.63 percent increase in tourism development tax… – Continue reading
