G20 leaders have agreed to boost their combined economies by at least 2.1% by 2018, injecting $2 trillion into the world economy, Australian Prime Minister Tony Abbott announced. Closing the 2014 G20 Leaders Summit in Brisbane at the weekend, Abbott set out economic pledges agreed by world leaders, including greater… – Continue reading
G20 leaders have made “real progress” towards ensuring that “big companies pay the tax they owe”, David Cameron said at the end of the G20 summit in Brisbane yesterday. “There are now over 92 different countries and tax authorities properly sharing information and, as the OECD set out at this… – Continue reading
BRISBANE, Australia — Under pressure to jolt the lethargic world economy back to life, leaders of G-20 nations on Sunday finalized a plan to boost global GDP by more than $2 trillion over five years. The fanfare, however, was overshadowed by tensions between Russian President Vladimir Putin and Western leaders…. – Continue reading
You know those annoying “We Agree” television ads by the fossil fuel corporate giant Chevron? The ones where an actor playing a student or a concerned member of a community “agrees” with supposedly noble objectives of this multinational? Those ads make me feel like puking. The objective of this campaign… – Continue reading
BRISBANE: Australia has vowed a “very aggressive” crackdown on tax avoidance at weekend G-20 talks, as a row rages over Luxembourg’s sweetheart arrangements with multinationals. Closing corporate tax loopholes and endorsing a common reporting standard to increase transparency are set to be a primary focus of the G-20 summit in… – Continue reading
The growing crackdown on tax avoidance risks ushering in a broader suppression of international tax competition, harming the interests of all taxpayers. An inevitable consequence of economic globalisation is that supply chains and financial linkages have become dispersed across geographic space, and producers now strive to provide customers with quality… – Continue reading
The Organisation for Economic Co-operation and Development (OECD) released this week a strategy for deepening developing-country engagement in its work to stop the erosion of national tax bases and the shifting of profits to jurisdictions solely to avoid paying tax. The emerging-market strategy, designed to strengthen developing-country involvement in decision-making… – Continue reading
(AFP) The OECD Friday forecast competition heating up among countries wanting to attract revenue from big digital companies like Apple and Google, even as a row rages over Luxembourg’s arrangements with multinationals. Closing corporate tax loopholes and endorsing a common reporting standard to increase transparency are set to be a… – Continue reading
The OECD’s head of tax has rejected calls to publicly release country-by-country breakdowns of taxes paid by multinationals, despite growing pressure from community and transparency groups. Agencies such as Transparency International and a host of community groups are putting pressure on the OECD and G20 leaders at the summit in… – Continue reading
Hybrid entities have long been a tool for corporate tax planning. While tax authorities have fought the use of such hybrid mismatches for tax planning purposes, national efforts to prevent the use of hybrid mismatches have not proven to be very efficient, explain Michael Graf and Timothy Santoli, of Dentons… – Continue reading
Multinational tax avoidance risks losing citizens’ trust, says Joe Hockey G20 working on ‘important reforms which will significantly improve the integrity of the tax system’, Australian treasurer says The Australian treasurer, Joe Hockey, has warned that citizens will lose trust in the legitimacy of their governments if multinationals are allowed… – Continue reading
Y20 head on youth unemployment mission Countries may have to battle for revenue from digital companies once the global plan to stop tax avoidance succeeds, says the OECD’s head of tax Pascal Saint-Amans, but at least they now have something to fight for. In an exclusive interview with Fairfax Media… – Continue reading
(Reuters) – A showdown between Western leaders and Russian President Vladimir Putin is likely at the G20 summit in Australia starting on Saturday, following fresh reports of Russian troops pouring into eastern Ukraine. Ukraine has accused Russia of sending soldiers and weapons to help separatist rebels in eastern Ukraine launch… – Continue reading
Brisbane (Australia) (AFP) – The Organisation for Economic Co-operation and Development on Friday forecast competition heating up among countries wanting to attract revenue from big digital companies like Apple and Google, even as a row rages over Luxembourg’s arrangements with multinationals. Closing corporate tax loopholes and endorsing a common reporting… – Continue reading
The ability of multinational companies to shift profits into low-tax jurisdictions is undermining governments’ ability to raise revenue. But the cross-border policy solutions are complex. Curbing international tax avoidance has become a focus of G20 discussion this week, after last week’s revelation that major companies including Ikea, AMP and Pepsi… – Continue reading
The OECD released today its new Strategy for Deepening Developing Country Engagement in the Base Erosion and Profit Shifting (BEPS) Project, which will strengthen their involvement in the decision-making processes and bring them to the heart of the technical work. The BEPS Project aims to create a coherent set of… – Continue reading
12/11/2014 – The OECD released today its new Strategy for Deepening Developing Country Engagement in the Base Erosion and Profit Shifting (BEPS) Project, which will strengthen their involvement in the decision-making processes and bring them to the heart of the technical work. The BEPS Project aims to create a coherent… – Continue reading
November 12: The Organisation for Economic Co-operation and Development (OECD) today released a report addressing the role of developing countries with respect to the base erosion and profit shifting (BEPS) project. As noted in today’s OECD release [PDF 259 KB], the BEPS project is intended to address tax planning strategies… – Continue reading
According to Bill Thompson, tax partner at Minter Ellison, Base Erosion and Profit Shifting (BEPS) — the base erosion referred to as the tax base and its implications for future tax structures — will be a key focus at the G20 Summit in Brisbane, with possible rapid changes to the… – Continue reading
The UK has agreed to put forward a proposal to close its patent box tax break, which allows income from the commercial exploitation of intellectual property (IP) to be taxed at 10%, in a concession to German concerns about artificial shifting of profits between European countries.12 Nov 2014 Intellectual Property… – Continue reading
Patent boxes allow firms to pay much lower taxes on profits from patented inventions, but critics say it gives UK too much of a fiscal advantage George Osborne’s move removes one of the potential flash points between the UK and Germany before this week’s G20 summit in Brisbane. Photograph: Pa… – Continue reading
The European Union should complete its four tax probes before it can “decide what to do next,” EU Competition Commissioner Margrethe Vestager said. “Maybe in the beginning of the second quarter of next year we will have results on at least some of those open cases,” Vestager told reporters after… – Continue reading
Prime Minister Narendra Modi would attend the G-20 summit later this week where world leaders would come together for discussing issues including automatic exchange of tax information, taxation of large companies operating digitally, and a comprehensive strategy for strong, sustainable and balanced growth. Official sources said that the leaders will… – Continue reading
ovember 10: The Organisation for Economic Co-operation and Development (OECD) last week published a discussion draft on Action 10 (Proposed Modifications to Chapter VII of the Transfer Pricing Guidelines Relating to Low Value-Adding Intra-Group Services) as an additional deliverable under the OECD’s base erosion and profit shifting (BEPS) action plan…. – Continue reading
Those who live in glass houses do well not to throw stones, and Ireland’s predilection for such tax schemes as the “double Irish” probably makes it the last place to cast aspersions at Luxembourg’s creative approach to assisting what is now euphemistically called “tax planning”, once “tax avoidance”. Having sensibly… – Continue reading
India, keen to go ahead with a global tax pact to curb tax avoidance by companies, is expected to push for negotiations of some provisions of the OECD’s Base Erosion and Profit Shifting (BEPS) agreement at the meeting of heads of states of G20 nations to be held in Brisbane… – Continue reading
On November 3, 2014, the Organisation for Economic Co-operation and Development (OECD) published its discussion draft on the proposed modifications to Chapter VII of the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. These proposed modifications have been developed in connection with Action Point 10 of the Action… – Continue reading
Vivek Prasad, chief commissioner of Income-Tax – III, Mumbai said they were striving to rid themselves of the unwarranted epithet of ‘tax terrorists,’ and said with regards to tax morality, base erosion, profit shifting and GAAR (general anti-avoidance rules) they were on a learning curve and are evolving beyond the… – Continue reading
NEW DELHI: India’s attempts to amend tax treaties with countries such as Mauritius may have drawn a blank so far, but its efforts are about to get a huge boost with several nations getting together to ramp up work on a global convention to plug treaty abuse. “Multilateral convention will… – Continue reading
Ahead of next weekend’s G20 summit, the release of leaked documents showing Luxembourg’s facilitation of industrial scale tax avoidance by multinational corporations could not have been better timed. A cache of documents obtained by the International Consortium of Investigative Journalists, and released on Thursday, found hundreds of companies – including… – Continue reading
The hollowing out of tax collected for public purposes by rich and poor nations is not confined to technology and mining companies, according to a major leak of secret tax agreements covering more than 340 companies around the world. The documents, published by the International Consortium of Investigative Journalists, include… – Continue reading
The global base erosion and profit shifting (BEPS) rules, aimed at collecting a fair share of taxes from multinationals operating in different tax jurisdictions, are likely to be finalised by December 2015, a senior finance ministry official today said. “Work on BEPS is moving very fast. If things go on… – Continue reading
BEPS Action 10: Proposed modifications to Chapter VII of the Transfer Pricing Guidelines relating to low value-adding intra-group services On 3 November 2014, the OECD, as part of its work on the Action Plan to address Base Erosion and Profit Shifting (‘BEPS’), released a Discussion Draft in relation to Action… – Continue reading
Tax Commissioner Chris Jordan has rapidly abandoned several agreements with multinationals aimed at giving companies certainty about the tax they are required to pay in Australia in future years, after deeming they had misled and engaged in “aggressive tax planning”. Taxpayers can enter into a deal to lock in the… – Continue reading
Covidien transferred right to $6.9bn loan to new entity Multinational medical supplies group, Covidien, transferred the right to loans totalling $6.9 billion from Luxembourg to a new Irish company as part of an elaborate inter-group tax planning arrangement agreed with the Luxembourg tax authorities in 2009. Under the deal, the… – Continue reading
From 1970 to 2011, US$2 trillion from Latin America and the Caribbean have been funneled to offshore tax havens. It’s money that moves behind the scenes, in illicit financial flows (IFF). These transnational transfers come from three sources of illegal funds: corruption (bribery), money laundering (contraband, trafficking of drugs, weapons,… – Continue reading
New Delhi: As it attempts to unearth black money stashed abroad, India today said the Grouping of 20 major economies(G20) of which it is a member is committed to a global response to deal with cross border tax avoidance and evasion. Tax evasion will be a key issue at G20’s… – Continue reading
NEW DELHI, NOVEMBER 6: India has circulated a paper on the issue of taxation of global companies, an issue which will be raised at the forthcoming G-20 meeting in Brisbane later this month. Briefing newspersons on the meeting, Suresh Prabhu, the ‘Sherpa’ for Prime Minister Narendra Modi at the G-20… – Continue reading
BRUSSELS – Dividend, interest and royalty payments that companies let pass through the Netherlands to avoid taxation have increased substantially in the past decade, the Netherlands Court of Audit has found. In a report published on Thursday (6 November), the court writes that tax laws and treaties that originally were… – Continue reading
Ernst & Young Solutions LLP, Singapore* It has been eight years since the Inland Revenue Authority of Singapore (IRAS) first released its Circular on Transfer Pricing Guidelines. During that time, there have been significant changes in the international tax landscape. In Singapore, we have seen supplementary guidance from the IRAS… – Continue reading
For more than a decade, tax gurus at PricewaterhouseCoopers helped Caterpillar Inc., the U.S. heavy equipment maker, move profits produced by its lucrative spare-parts business from the U.S. to a tiny subsidiary in Switzerland. Little changed except the bookkeeping. Parts were still shipped from suppliers to a warehouse in Morton,… – Continue reading
Tax treaty rules on ‘permanent establishment’ should be changed in order to ensure companies are taxed in the jurisdiction where their economic activity takes place, the Organisation for Economic Cooperation and Development (OECD) has said.05 Nov 2014 Corporate tax Tax Tax Disputes and Investigations TMT Advanced Manufacturing & Technology Services… – Continue reading
ICC has expressed concern that the Organization for Economic Co-operation and Development (OECD) Action Plan on combating Base Erosion and Profit Shifting (“BEPS”), mandated by the G20, may inadvertently incur severe collateral damage on compliant taxpaying companies of all sizes as a result of well-meaning measures undertaken unilaterally by states… – Continue reading
It is important that the Brisbane G20 Summit on Nov. 15–16 is a success. In an increasingly integrated global economy, effective forums for economic cooperation are needed. The 2008 global financial crisis was the catalyst for the G20 becoming a leaders’-level forum. The Washington, London, and Pittsburgh summits helped save… – Continue reading
November 3: The Organisation for Economic Cooperation and Development today released a discussion draft of the proposed modifications to Chapter VII of the OECD Transfer Pricing Guidelines relating to low value-adding intra-group services. Action 10 of the OECD’s action plan on base erosion and profit shifting (BEPS) directs the OECD… – Continue reading
Ahead of Prime Minister Narendra Modi’s first G20 meet in Australia this month, India is putting in place a cohesive strategy to prioritise issues of development and employment to the top of the agenda at the Summit. According to sources close to the development, the Prime Minister’s Office is keen… – Continue reading
Global tax reform is on the agenda at the G20 in Brisbane to prevent aggressive tax avoidance, but developing countries are being excluded from decision-making Tax avoidance and evasion will be at the top of the agenda at the G20 Leaders’ Summit this month, when the leaders of many of… – Continue reading
Mark Hendrickson teaches economics at Grove City College. He writes the “No Panaceas” blog at Forbes.com and is a contributing editor of the St. Croix Review. Hendrickson’s most recent book is “God and Man on Wall Street: The Conscience of Capitalism” with Craig Columbus. The political left in America remains… – 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. http://www.ft.com/cms/s/0/e56ca00c-6010-11e4-98e6-00144feabdc0.html#ixzz3I617l1GT It is no secret that Apple, Starbucks and Amazon are among several high-profile companies… – Continue reading
HA NOI (VNS) — Appropriate policies and enhanced management capacity are critical in the fight against transfer pricing to ensure a healthy business investment environment in Viet Nam, said experts on Wednesday. They were participating in an online discussion on the Government’s e-portal. Transfer pricing is causing losses to the… – Continue reading
