The following article is from the February 13-26 print edition of the Budapest Business Journal. While the 2008 financial crisis questioned the justification for structured products globally, the recent decision of the Swiss National Bank to scrap the euro peg has revealed risks – not previously perceived by domestic investors… – Continue reading
CANBERRA: Australian Tax Office has said that Australia’s corporate tax base is in crisis because of tax relief by multinational companies in the country. The alarming data in these internal documents is at odds with the public position of the Australian Tax Office (ATO), which maintains the tax regime in… – Continue reading
PREMIER Rufus Ewing has called out United Kingdom Opposition Leader, Edward Miliband for published statements he recently made regarding the TCI being a tax haven. Miliband is reported in the UK press as stating that the UK overseas territories (OT) are not complying with UK directives on beneficial ownership of… – Continue reading
London Mayor Boris Johnson was born in New York City in 1964, and he has held dual British and American citizenship throughout his life. Recently, after months of grousing about having to pay a capital gains tax to the U.S. on the sale of his house in Greater London, Johnson… – Continue reading
Last September, I wrote that America’s business tax system is a nightmare that simultaneously undermines the competitiveness of American companies while also causing lots of irritation in other nations. Both of those bad things happen because politicians in Washington think the IRS should be able to tax income that is… – Continue reading
Financial information to be passed to IRS in September Abu Dhabi: The UAE’s financial institutes are set to comply with the US’s Foreign Account Tax Compliance Act (Fatca) before the deadline at the end of the second quarter of this year, officials confirmed on Sunday. The information will then be… – Continue reading
UNTIL NOW, many British expatriates have been able to sell UK property without having to pay any capital gains tax in the UK. This changes from April when new rules come into effect. The concept of charging UK capital gains tax on the disposal of UK residential property owned by… – Continue reading
Some of the biggest listed Irish firms have subsidiaries in so-called ‘tax havens’, like the British Virgin Islands, Jersey or Luxembourg. They say it’s not to reduce their tax bills – so why are they there? The subsidiaries are registered in well-known offshore tax havens, such as the British Virgin… – Continue reading
The shadow chancellor has promised that a Labour government would crack down on what he called “systemic tax evasion”. Speaking on the BBC’s Andrew Marr Show, Ed Balls drew a distinction between families who legitimately plan their tax affairs and those who, in his words, “set up false structures”. He… – Continue reading
Public fury over tax dodging by some clients of HSBC’s Swiss arm is set to escalate after sources close to the Revenue’s investigation said there would be no more prosecutions for tax evasion. Despite Revenue and Customs being handed details of 6,000 Swiss bank accounts held by UK residents and… – Continue reading
The automobile industry is very important for the Indian economy, given its significant contribution to the national GDP, and the employment it generates directly and indirectly. After two years of sluggish growth, the fortunes of the industry seem to be changing. The latest forecast shows growth in almost all the… – Continue reading
NEW DELHI: The government plans to defer implementation of the General Anti Avoidance Rules (GAAR) until the time the tax administration is able to rebuild trust with companies on the controversial issue. “Given the low level of confidence in tax authorities, investors fear that the provisions may result in harassment…. – Continue reading
AMSTERDAM: Google shifted nearly €10bn in royalties to the tax haven of Bermuda via the Netherlands in 2013. That is almost €1bn up on 2012, the paper says. It bases its claims on an analysis of the annual reports of Dutch-registered Google Netherlands Holdings BV. Over €9bn came from Google… – Continue reading
Budget should issue a) rules for announcements that were made in the budget in July 2014, (b) clarifications and guidance on matters that were at the centre of controversy during the past few years like equity infusion, valuations, etc. and (c) tax administrations, infrastructure and approach. The new government in… – Continue reading
Australian retail billionaire Gerry Harvey slammed the country’s powerful business lobby groups for pushing the interests of profit-shifting multinational corporations ahead of Australian companies. Harvey said companies that pay their fair share in taxes have no voice in government. The billionaire retailer spoke after it was publicly revealed that Apple… – Continue reading
The UK Treasury Committee has said that the draft legislation on the diverted profits tax (DPT) is unwieldy and stressed that the Government’s unilateral policy response should not destabilize international tax reform efforts. The Committee’s response to the plans are included in its new report on the Autumn Statement 2014,… – Continue reading
Former Enemalta chairman Tancred Tabone had set up a Jersey offshore trust into which he deposited $1 million, according to the HSBC data revealed in Swiss leaks. Reporting on the matter today, The Guardian said Mr Tabone planned to transfer more funds, with the bank noting “the potential is evaluated… – Continue reading
In the last several years, a “record” number of Americans abroad have been giving up their passports: That’s supposedly due to the demands of the Foreign Account Tax Compliance Act, known as FATCA, a US law enacted in 2010 to fight tax evasion by forcing foreign banks to share information… – Continue reading
Confidential documents obtained from the Tax Office under the Freedom of Information Act show Australia’s corporate tax base is in crisis because of the explosion in tax haven dealings by multinational companies. The alarming data in these internal documents is at odds with the public position of the Australian Tax… – Continue reading
A UNITED Nations official has launched a scathing attack on Ireland over its corporation tax regime. Philip Alston, the UN’s Special Rapporteur on extreme poverty and human rights, accused the country of supplementing the 12.5pc rate with a raft of schemes that appear designed to allow tax avoidance by big… – Continue reading
If the Davis tax committee’s recommendations are followed, tax avoidance could be effectively reined in. Zeroing in on the super-wealthy and tax reluctant remains at the top of the global agenda as budgets across the world grow increasingly hungry for extra revenues. Now a draft report from the Davis tax… – Continue reading
NEW DELHI: Committing to boost trade ties, India and the US today resolved to enhance cooperation, remove obstacles to investment flows and work towards early adoption of FATCA to facilitate automatic flow of tax information. “We are committed to share our experiences in tackling offshore tax evasion and avoidance. We… – Continue reading
Feb 12 (Reuters) – Brazilian Trade Minister Armando Monteiro said on Thursday he does not see much chance of agreeing on a tax treaty with the United States in the short term. In an interview during a visit to Washington, his first overseas trip as minister, Monteiro said double taxation,… – Continue reading
NEW DELHI: India and the US on Thursday committed to take the renewed India-US partnership forward through “shared effort and progress for all” when Finance Minister Arun Jaitley and Jacob J. Lew, US Secretary of the Treasury, met in the Capital for the Fifth Annual India-US Economic and Financial Partnership…. – Continue reading
(Bloomberg) — The backlash against acquisitions meant to skirt U.S. tax laws could spur more midsize U.S. drugmakers to sell to overseas buyers, Bill Ackman, the billionaire activist hedge fund manager, said Thursday. Takeover activity in 2014 was highlighted by U.S. companies — including Medtronic Inc. and Pfizer Inc. —… – Continue reading
UN special rapporteur says loopholes and schemes damage Ireland’s reputation The United Nations special rapporteur on extreme poverty and human rights has criticised Irish tax policies which have had a negative impact on poorer and developing countries. Professor Philip Alston has said loopholes and schemes introduced by successive governments have… – Continue reading
Tax paperwork seen as main culprit HONG KONG (CNNMoney) —Goodbye, sayonara, ciao, Uncle Sam! The number of Americans choosing to give up their passports hit a record 3,415 last year, up 14% from 2013, and 15 times more than in 2008, when only 231 people renounced their citizenship. Experts say… – Continue reading
NEW DELHI: The much-feared general anti avoidance rules (GAAR) could be deferred by about two years so that business sentiment is allowed to improve in India but will need to be rolled out in some form or the other by 2017, in sync with the international framework on preventing treaty… – Continue reading
Lord Fink, the former Conservative treasurer who threatened to sue Ed Miliband over his comments on tax avoidance, has conceded that the practice is normal in British society. The peer – a multimillionaire former hedge fund manager turned Conservative donor and philanthropist – also said he did take “vanilla” tax… – Continue reading
Some of your well-to-do clients may be thinking of moving to the “51st state.” Puerto Rico is quickly becoming a tax haven for U.S. citizens fed up with paying higher taxes on the mainland. If you qualify, the tax rate on much of your investment income – including certain capital… – 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
The International Chamber of Commerce (ICC) has released the 2015 update of its policy statement on “Transfer Pricing and Customs Valuation” first issued in 2012. The statement supports companies that face the challenge of determining the appropriate related party valuation of goods in the context of disparity between governments’ customs… – Continue reading
SINGAPORE: Singapore has signed agreements with France and Uruguay for avoidance of double taxation (DTA). In the agreement with France, the revised DTA offers improved terms for businesses, such as lower withholding tax rates for dividends and includes anti-abuse provisions. The signing took place in Singapore between Singapore Deputy Prime… – Continue reading
In a recent letter to the Committee on Foreign Relations, the American Institute of Certified Public Accountants (AICPA) requested that the US Senate urgently approve all pending bilateral double taxation agreements (DTAs) and protocols. The AICPA pointed out that the full Senate has not approved any DTA or protocol since… – Continue reading
Local businesses still have a lot to consider for the next stages of the Foreign Account Tax Compliance Act (FATCA) implementation, delegates heard at a recent breakfast seminar hosted by EY. The event, led by Wendy Martin, EY’s Tax Executive Director, highlighted the recent updates made to the FATCA guidance… – Continue reading
New Delhi: Top officials from IT, BPO and e-commerce sectors have requested Finance Minister Arun Jaitley to address certain issues related to taxation in the Budget for fiscal year 2015-16, and provide incentives for setting up data centres in the country. They also suggested that the minister look at ways… – Continue reading
The coalition government has failed its promise to make the UK the most competitive tax regime in the G20, according to a report by the Oxford University Centre for Business Taxation (CBT) According to the report, tax reforms pushed through the coalition government “have only marginally improved the UK’s competiveness”…. – Continue reading
Documents detail customers who faced allegations including drug-running, corruption, doping and money laundering This article is the subject of a legal complaint made on behalf of Anura Perera. HSBC’s Swiss bank concealed large sums of money for people facing allegations of serious wrongdoing, including drug-running, corruption and money laundering, leaked… – Continue reading
The Australian Taxation Office has identified at least 36 Australian companies with related entities in Switzerland that may have engaged in tax evasion costing billions in possible tax revenue. According to internal communications between the ATO and the Department of Treasury the bulk of companies under investigation are based in… – Continue reading
Labour too has received cash and loans from bank’s clients, while leaked documents also reveal many donors with HSBC accounts had non-dom tax status Conservative donors, peers and a high profile MP are listed among the wealthy who legally held accounts in Switzerland with HSBC’s private bank, for a wide… – Continue reading
AutoRek, a leading global provider of financial data management solutions, today announced a strategic alliance with Grant Thornton UK LLP, the financial and business adviser, to enable customers to achieve optimal performance across their financial controls and reporting processes. This collaboration merges innovative financial data management solutions with industry-leading knowledge… – Continue reading
The number of Americans relinquishing their citizenship will drop as the world adjusts to FATCA, says Nigel Green, chief executive of deVere. Since the Foreign Account Tax Compliance Act (FATCA) was introduced in July last year, the number of citizens cutting of their US ties has jumped to 3415, 14%… – Continue reading
NAMIBIANS who have Swiss bank accounts could face an Anti-Corruption Commission investigation if they evaded tax and money was transferred after the graft body was established. ACC director Paulus Noa told The Namibian yesterday that the ACC can only investigate the accounts if any Namibian holders of Swiss bank accounts… – Continue reading
NINETY nine Tanzanians own 114 million US dollars (over 200bn/-) stashed away in 286 bank accounts in just one bank in Switzerland, a cache of leaked documents from the Swiss arm of the HSBC bank shows. The findings follow a massive cache of leaked data that revealed how the Swiss… – Continue reading
Davidson Iriekpen with agency report New records obtained by the Paris-based Le Monde newspaper and the International Consortium of Investigative Journalists (ICIJ) have unveiled more details on the $182 million Halliburton bribery scandal in Nigeria that indicted several top government official, in the country who received the bribes, but for… – Continue reading
On 9 February 2015, Standard & Poor’s Ratings Services lowered its long- and short-term foreign and local currency sovereign credit ratings on the Kingdom of Bahrain to ‘BBB-/A-3’ from ‘BBB/A-2’. At the same time, it lowered the long- and short-term foreign and local currency credit ratings on the Central Bank… – Continue reading
By Eugene Okumu and Lola Okulo KENYA has been ranked 58th in a global list of countries with the most dollar deposits in Swiss banks, at a whopping Sh51.18 billion ($559.8 million). This is according to a leaked report titled Swiss Leaks, compiled by the International Consortium of Investigative Journalists… – Continue reading
“Well, Jon, the Government’s about to bring in a 1.5% corporate, or company, tax cut from the 1st of July. That’s something that obviously we support, because (the) corporate tax rate at 30% is not competitive with the rest of the region and we need to drive that down.” –… – Continue reading
A Welsh Scout leader wanting to open a bank account was astonished when he was told he could only do so if he filled in a form for the United States tax authorities. Darren Stockton, who has run a Scout troop in Usk for six years, approached his local branch… – Continue reading
BEIJING – Li Xiaolin, daughter of former Chinese Premier Li Peng, known for his support of the bloody military crackdown on the 1989 democracy movement in Beijing, held close to $2.5 million in a secret HSBC account in Switzerland, the International Consortium of Investigative Journalists (ICIJ) has found. The revelation,… – Continue reading
