Finance professionals will play a key role in dealing with changes brought about by a global project to combat corporate tax avoidance. A GLOBAL effort to tackle the problem of companies that attempt to reduce their tax burden by exploiting loopholes in tax rules will impact the way global businesses… – Continue reading
Senior tax executives are preparing for changes in the tax landscape as a result of the Organization for Economic Co-operation and Development’s base erosion and profit shifting project. A new survey by Ernst & Young, presented Thursday at its 34th Annual International Tax Conference, found 88 percent of tax directors… – Continue reading
Multinationals selling more than $75k into Australia asked to comply. The Australian government has released its revised exposure draft of legislation that would see GST added to all locally-bought digital products and services sold by overseas vendors by July 2017. In May this year former Treasurer Joe Hockey revealed plans… – Continue reading
Under pressure to find resources for his promises of sweeping tax cuts, Italian Prime Minister Matteo Renzi is hoping to raise billions of euros by forcing multinational Internet firms to pay taxes on profits generated in Italy. Treasury Undersecretary Enrico Zanetti said a so-called “Google Tax” could yield up to… – Continue reading
Tax laws are lagging behind the digital economy. As changes in the digital realm continue to outpace the speed at which legislators can work, and borders increasingly blur because of the internet, SA needs to play catch-up when it comes to tax. Currently, the only digital tax of any consequence… – Continue reading
On 16 September 2014, the OECD released the report on the tax challenges of the digital economy (the “Report”) under its Action Plan on Base Erosion and Profit Shifting (“BEPS”). The Report recognises that because the digital economy is increasingly becoming the economy itself, it would be difficult, if not… – Continue reading
Some Italian parliament members published a proposal for a new law that may dramatically change the scenario for e-commerce and web operators doing business in Italy. The proposal (called by some commentators as “Digital” or “Web Tax”) is substantially a combination of domestic rules affecting the taxation of the digital… – Continue reading
Japan has just embarked on the 2015 Tax Reform to be more growth-oriented with the aim of a reduction in the effective corporate tax rates to allow corporations to pay higher wages to existing employees as well as increase overall employment thereby increasing economic consumption and investment. On 31 March… – Continue reading
Three-quarters of global business leaders would accept higher taxes in exchange for greater clarity on acceptable tax planning, the Grant Thornton International Business Report has found. The survey of 2,580 businesses in 35 countries noted a significant increase from the last time the question was asked – last year –… – Continue reading
New Zealand: GST and the digital economy The New Zealand Government has released a Discussion Document regarding the proposal to impose goods and services tax (GST) on online purchases of goods and services from offshore suppliers by New Zealand resident consumers. The publication Taxing by the megabyte: New Zealand’s GST… – Continue reading
PwC’s views on the Government’s discussion document seeking feedback on proposals for GST and offshore online purchases Following on from the much anticipated Government’s discussion document seeking feedback on proposals for the collection of GST on online purchases of services and intangibles this morning, we are pleased to share our… – Continue reading
On August 11, 2015, the Organisation for Economic Co-operation and Development (OECD) released its annual report addressing global tax administration. The OECD’s stated mission is to “promote policies that will improve the economic and social well-being of people around the world.” The OECD describes its annual report as follows: Tax… – Continue reading
The digital economy is an increasing concern for taxpayers, especially in light of impending BEPS guidance, but how it will impact different industries will vary. The fundamental principle behind the digital economy, in terms of transfer pricing, is its reliance on intangible assets and the difficulties when deciding which jurisdiction… – Continue reading
Yesterday, on June 17, 2015, three state tax bills were favorably reported to the United States House of Representatives (House) by the House Judiciary Committee (House Judiciary) after considering each during a half-day markup. The bills that were advanced included: (1) the Mobile Workforce State Income Tax Simplification Act (Mobile… – Continue reading
On June 17, the House of Representatives Judiciary Committee approved the markup of three bills dealing with interstate tax rules in the United States on individual income tax, business activity taxes, and sales tax on digital goods. The Mobile Workforce State Income Tax Simplification Act is a bipartisan measure that… – Continue reading
Marek Helm, head of the Estonian tax authority, is questioning claims that hundreds of Estonian businesses have been set up in Latvia because Latvia offers them better tax benefits than Estonia, reported Delfi today. Speaking in Reporter, an investigative TV journal of Kanal2, Helm said that he does not believe… – Continue reading
Exposure draft legislation to extend the application of the GST to supplies of intangible products by foreign suppliers to Australian consumers has been released for consultation. While there has been considerable focus on the proposed expansion of the GST regime to cover supplies of “digital products”, the changes will also… – Continue reading
The OECD plans to have international agreement on new tax rules developed as part of its project to tackle aggressive tax avoidance by multinationals through the Base Erosion and Profiting Shifting (BEPS) project by the next G20 summit in November, with implementation completed before 2020 ‘at the latest’ Pascal Saint-Amans,… – Continue reading
On May 13th 2015, the portal for applying for Estonian e-residency was launched at e-resident.gov.ee, which allows to send an application from anywhere in the world to join the Estonian digital identity program, Estonian Ministry of Economy announced, Äripäev.ee/LETA reports. Estonia is the first country to offer e-residency — a… – Continue reading
Grant Wardell-Johnson, KPMG Tax Partner, has said that while it would have been better for Australia to await the outcome of the OECD’s base erosion and profit shifting Action Plan, the international tax measures proposed recently by Treasurer Joe Hockey “have the benefit of being highly targeted.” On May 11,… – Continue reading
South African companies are unable to compete with multinationals selling goods and services online in the country, partly as a result of tax laws. This is according to financial services group PwC, which argues that the country has not kept pace with the changing global economy. “Currently, multinationals in the… – Continue reading
Global business The European Union outlined its strategy to create a digital single market. The thrust of the proposals include establishing standard rules for buying goods online, pruning cross-border regulations on telecoms and reducing the tax burden on businesses. But the plan also calls for a “comprehensive assessment” of whether… – Continue reading
In the 2015 Budget Speech presented to the National Assembly on 25 February 2015 the Minister of Finance announced that amendments will be proposed to change the rules for the digital economy in line with the latest guidance issued by the Organisation for Economic Co-operation and Development (“OECD”) in its… – Continue reading
France’s minister for digital affairs says abolition of ‘double Irish’ was a welcome move Multinational companies, particularly those in the digital sector, will need to pay tax where they create value in a new digital single market for Europe, France’s minister for digital affairs has said. Speaking to The Irish… – Continue reading
Turkey is to host a G20 international tax symposium next month to discuss developments to address Base Erosion and Profit Shifting (BEPS) and the exchange of information between tax administrations The event, organised by Turkish Ministry of Finance, also aims to ensure that developing and low-income countries benefit from the… – Continue reading
TACKLING tax evasion and dealing with the fast-growing digital economy were top of the agenda at a conference on taxation yesterday. Singapore’s Senior Minister of State for Finance and Transport, Mrs Josephine Teo, told the event that the tax authorities around the world are acting to address tax dodges more… – Continue reading
National tax laws are struggling to keep pace with the rise of the digital economy and the progress of multinational companies. These factors leave gaps that are susceptible to misuse and lead to cases of double non-taxation, which undermine the integrity and fairness of tax systems around the world. The… – Continue reading
AS PART of its Base Erosion and Profit Shifting (BEPS) project, the OECD has launched a public consultation on Action 12 – the mandatory disclosure of tax avoidance strategies by multinational companies. The 83-page draft document provides examples of various disclosure regimes in place in member countries, setting out recommendations… – Continue reading
All too often, changes to tax legislation happen at a glacial pace. As a nation, we can’t afford to let that happen with the GST changes required to modernise the law and processes to capture GST from overseas online purchases. Budget 2015 provides a suitable time for the government to… – Continue reading
It has been said taxes are the price we pay for a civilized society. So what happens when some of the wealthiest companies in the world don’t pay toward the upkeep of the societies they operate in? No one likes paying taxes. In my opinion taxes should be as low… – Continue reading
As recommended by Tax Administration Reforms Commission (TARC) under Parthasarathi Shome, for taxation, the appellate functions must be housed separately from the field functions, in order to have fair and judicious orders passed. Indian Revenue should be divided into two distinct sets—the operational side and the technical/adjudication side. The quasi-judicial… – Continue reading
Amid global efforts to combat profit shifting. PRETORIA – In line with international efforts to combat tax avoidance, National Treasury on Wednesday said it is taking further steps to curb financial leakage. With government under pressure to collect more revenue amidst dwindling economic growth, Finance Minister Nhlanhla Nene on Wednesday… – Continue reading
A reclassification of how Value Added Tax (VAT) is to be applied in the EU will force merchants to log users’ location, and make the user pay VAT twice. In particular, this could mean that from January 1 merchants could be forced to log identifying details about bitcoin users’ identity… – Continue reading
SAS supports Dubai Islamic Bank with Anti-Money Laundering solutions Dubai – SAS, the leader in business analytics software and services, announced its collaboration with Dubai Islamic Bank ( DIB ) to help prevent money laundering among the bank’s customers. SAS will support the bank with Anti-Money Laundering (AML) solutions that… – Continue reading
Lobbyists representing firms including Google, Amazon and Apple claim ‘fundamental flaws’ in G20-led reforms The World Economic Forum in Davos, where Google, Microsoft and Facebook executives will discuss the digital economy on Thursday. Photograph: Fabrice Coffrini/AFP/Getty Images Lobby groups representing Google, Amazon and other powerful US tech multinationals have launched… – Continue reading
Both the OECD and the EU are exploring options to change how digital businesses are taxed, while NGOs are stepping up their pressure on tax authorities to challenge large companies’ transfer pricing arrangements. No matter how robust your digital business’s transfer pricing arrangements appear to have been in the past,… – Continue reading
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. Luxembourg’s unorthodox tax deal with Amazon was laid bare by European Commission investigators on Friday, who believe it artificially lowered and “capped” the online retailer’s tax bill,… – Continue reading
Business editor Duncan Foulkes quizzes three prominent Isle of Man businessmen on their thoughts ——————– Chris Eaton, Chief Executive Officer, The ILS Group There is no one major issue or initiative that faces the CSP and TSP sectors in 2015. Rather, they face more of a continued barrage of supra… – Continue reading
IN A PREVIOUS column (http://www.bworldonline.com/content.php?section=Economy&title=the-oecd-action-plan-on-base-erosion-and-profit-shifting&id=99561), we wrote about the general framework of the Base Erosion and Profit Shifting (BEPS) initiative, why addressing BEPS is a key priority for many governments across the globe, and the 15-point BEPS Action Plan drafted by the Organization for Economic Co-operation and Development (OECD). The… – Continue reading
Europe’s tax showdown could be headed straight to people’s wallets. With the new year, a change in fiscal rules in the European Union is increasing the tax on many purchases of digital content like e-books and smartphone applications. Under the new rules, first approved in 2008, the tax rate on… – Continue reading
SOUTH Africa’s tax authorities need to beef up the country’s tax laws and regulations to ensure it derives its rightful dues from the digital economy and e-commerce, the Davis committee says. The committee’s interim report on base erosion and profit shifting, released for public comment last week, said gaps in… – Continue reading
In a blow to Bitcoin’s international presence, Australia has confirmed it will keep its controversial sales tax policy for certain Bitcoin transactions. Following the Australian Tax Office (ATO) issuing the initial legislation earlier this year, considerable community opposition arose, with domestic exchange Coinjar even forced to relocate to the UK… – Continue reading
India will start charging income tax on digital economy firms, such as Facebook, Twitter and Uber, soon after the OECD finalises a framework by April 2015 to tackle the widespread corporate practice of shifting of profits to low-tax countries, government officials said on Wednesday. Tax may be levied on overseas… – Continue reading
The Cayman Islands, a British Overseas Territory in the western Caribbean Sea and a major world offshore financial center, are betting on new financial technologies based on the Bitcoin blockchain, Cayman Compass reports. A new company, Latitude, which provides seed capital and mentorship programs to tech ventures could potentially bring… – Continue reading
(CNS Business): The British government has published draft legislation for a new Diverted Profits Tax (DPT), dubbed the “Google tax”, by which it intends to sidestep Britain’s existing tax treaties with low-tax jurisdictions by levying a charge that would fall outside the corporate tax system. The government hopes to raise… – Continue reading
Think tank targets key aspects of Republic’s role in multinationals’ tax affairs Key features of Ireland’s role in the tax affairs of major technology companies such as Google and Microsoft are being targeted by the OECD’s base-erosion and profit-shifting (Beps) project, it has emerged. Ideas being worked on by the… – 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
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
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
Around the world, countries are desperately seeking ways to stop multinational companies from earning profits within their borders without paying taxes on them, while stashing trillions in tax havens like the Cayman Islands. The British government, after a search, says it knows how to tax the profits Google earns in… – Continue reading
