Jan. 23 — The growth of global tax transparency is expected to leap ahead in 2015—meaning companies, individual taxpayers and financial institutions must exercise new levels of caution, practitioners told Bloomberg BNA. With more than 100 intergovernmental agreements under the Foreign Account Tax Compliance Act and dozens of countries signing… – Continue reading
Apple’s Australian net profit after tax for the 2014 financial year increased, despite the company paying more tax. In documents filed to the Australian Securities and Investments Commission (ASIC), the Cupertino-based tech giant reported that net profit after tax for the group during the 2014 financial year was AU$171.5 million,… – Continue reading
Summary:Apple has reported that it paid AU$80.3 million in income tax during 2014, up from the AU$36.4 million that was paid during the 2013 financial year. This is despite the company paying more than double in income tax for the year. During 2013, Apple had only paid AU$36.4 million compared… – Continue reading
Each year U.S. multinational corporations avoid an astounding $90 billion in corporate income taxes by booking their profits on paper through international tax havens. At a time of growing inequality and budget austerity, it is outrageous that we allow the world’s richest companies to get away with not paying their… – Continue reading
A total of 97% of respondents to a Deloitte consultancy survey over the major obstacles to doing business in Portugal identified the “inconsistencies” and changes in the information made available by the taxation authorities as a problem. The Deloitte European Tax Survey also reported that that 97% resulted from what… – Continue reading
The tax regime applicable to non-UK investors in UK commercial real estate continues to be relatively generous. The tax on acquisition is low and there is generally none on disposal. Moreover, tax on income would generally be charged at the basic rate of 20% and this liability is capable of… – Continue reading
Jonathan Weiss hasn’t lived in the US for 25 years. But that didn’t keep his foreign bank account from being frozen in the wake of new US tax laws. Find out how you can avoid the same fate at the hands of FATCA. “I had been living in Switzerland for… – Continue reading
The tax regime applicable to non-UK investors in UK commercial real estate continues to be relatively generous. The tax on acquisition is low and there is generally none on disposal. Moreover, tax on income would generally be charged at the basic rate of 20% and this liability is capable of… – Continue reading
Tax avoidance costs developing countries billions every year. So this week 16 domestic and internationally focused organisations have joined forces to launch a campaign for a Tax Dodging Bill. When I mention in the course of a conversation that I work for an international development charity, I often get an… – Continue reading
INTRODUCTION The Hon’ble High Court of Bombay has recently in the case of an Indian unit of Royal Dutch Shell Plc, categorically held that issuance of shares by an Indian Company to its foreign parent is not exigable to transfer pricing provisions as there is no income arising there from…. – Continue reading
On 11 November 2014, the UK and German governments issued a joint statement on proposals for new rules for preferential intellectual property (IP) regimes within the G20/OECD base erosion and profit shifting (BEPS) project. Germany currently does not have a special regime for Patent Boxes, but suffers from structures that… – Continue reading
Puerto Rico’s Acts 20 & 22, tax incentive laws aimed at luring wealthy American investors to move there and at reviving the Island’s economy, are celebrating their third anniversary this month. While Puerto Rico’s economic situation remains bleak (it currently has more than $73 billion of “junk” status debt, unemployment… – Continue reading
A few days ago we posted a warning to folks that opened offshore bank accounts through a company called Sovereign Management & Legal, Ltd. Based in Panama, the company offers to help Americans open offshore bank accounts with nominee corporations. Knowing that many people who do take these actions are… – Continue reading
The chairman of BIAC’s tax committee, Will Morris, made an address to the OECD’s consultation on dispute resolution last week and said success on the dispute resolution action item is crucial to the overall success of the BEPS project as a whole. His comments to the OECD are as follows:… – Continue reading
The tech industry is ramping up its lobbying efforts on tax reform, seeking to make sure it doesn’t end up the loser if Washington can finally find a consensus on rewriting U.S. tax laws. The Tax Innovation Equality Coalition, or TIE, a group that counts both technology and pharmaceutical titans… – Continue reading
American internet giant Google shifted nearly €10bn in royalties to the tax haven of Bermuda via the Netherlands in 2013, the Telegraaf says on Saturday. 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… – Continue reading
(Reuters) – Shareholders in Israel’s Bank Leumi are seeking to file a class action lawsuit worth about 475 million shekels ($119 million) against the bank over its handling of a U.S. probe into alleged tax evasion, Bank Leumi said on Sunday. Leumi, Israel’s second largest lender, said the lawsuit argues… – Continue reading
With a fast-growing pool of Chinese yuan and a close trade relationship with China, in the long term the nation has the potential to become a leading offshore yuan center, foreign banks said in Hong Kong. The internationalization of the yuan is to continue this year, with more regions or… – Continue reading
Senate Finance Committee Chairman Orrin Hatch reiterated his view that the only solution to corporate tax inversions is United States tax reform, during remarks at a conference hosted by the Brookings Institution on January 23. Hatch has long been skeptical of short-term measures – legislative or non-legislative – to deter… – Continue reading
Americans living in Canada fear they may have to pay huge capital gains tax bills when they sell their home as a result of the new US Foreign Account Tax Compliance Act (FATCA). The issue concerns a rule buried in reams of Internal Revenue Service (IRS) tax guidance that states… – Continue reading
Businesses have made their feelings clear about the OECD’s work on preventing treaty abuse, which is a sub-section of the organisation’s work on base erosion and profit shifting (BEPS). Comments made in an address to the OECD by Will Morris, chairman of BIAC’s (business advisory arm to the OECD) tax… – Continue reading
The tech industry is ramping up its lobbying efforts on tax reform, seeking to make sure it doesn’t end up the loser if Washington can finally find a consensus on rewriting U.S. tax laws. The Tax Innovation Equality Coalition, or TIE, a group that counts both technology and pharmaceutical titans… – Continue reading
US sanctions on companies in third countries, ease of doing business and intellectual property rights were among a dozen issues that figured at the India-US CEO Forum where US President Barack Obama and Prime Minister Narendra Modi were also present. US sanctions on companies in third countries, ease of doing… – Continue reading
Fatca registration, which is mandatory, could reveal technical violations of three other American laws, with penal consequences The Foreign Account Tax Compliance Act (Fatca) might be a bigger headache for the Rs 11 lakh-crore-mutual fund (MF) sector than earlier believed. Fatca is an American legislation, under which financial institutions (FI)… – Continue reading
The Chinese Ministry of Commerce has released the draft of the proposed new Foreign Investment Law to solicit public opinions. The proposed law will significantly reduce barriers to foreign investment, while increasing scrutiny of foreigners trying to evade the regulations on investing in restricted industries. The draft law proposes five… – Continue reading
This edition of the Tax-News monthly feature takes in noteworthy events in the international tax arena, including attempts to inject new life into the campaign for comprehensive tax reform in the United States, and developments in the areas of free trade, indirect taxation, BEPS and tax transparency and compliance. US… – Continue reading
When Cecil-based generic drug giant Mylan bought Bioniche is 2010, it didn’t simply hand over a check to the owners of the Irish pharmaceutical firm. Instead, Mylan channeled financing through Luxembourg, a small European country that is a magnet for U.S. companies seeking ways to cut their tax bills. The… – Continue reading
The Malta Chamber of Commerce, Enterprise and Industry strongly disagrees with the new property tax announced by the government in the 2015 Budget. The Malta Chamber believes the new tax regime will have an adverse effect on the property market, which has been showing signs of recovery after a period… – Continue reading
IN THIS second installment of the series on Base Erosion and Profit Shifting (BEPS) 2014 deliverables, we will discuss the recommendations of the Organization for Economic Co-operation and Development (OECD) on how to neutralize the effects of Hybrid Mismatch Arrangements. A Hybrid Mismatch Arrangement refers to an arrangement whereby companies,… – Continue reading
IF YOU thought the publication of the command paper on “more powers” has brought clarity to the tax levying and reporting regime, think again. It’s all about as clear as a plate of dribbled mince. And businesses in Scotland, I fear, have now been put at a disadvantage to their… – Continue reading
While President Barack Obama’s new tax proposals may never see the light of day, given the Republican majorities in both the House and Senate, they have generated discussion among cross-border tax practitioners. Dual citizens living in Canada or Canadians who own U.S. properties may wonder whether they need to reopen… – Continue reading
BENGALURU: US President Barack Obama’s visit to India could help unlock over $10 billion stuck in tax disputes between India and various countries. The move will largely benefit American technology companies as a big chunk of the disputes involve software development and IT-enabled services (ITeS) sectors. India’s competent authority Akhilesh… – Continue reading
A year in review: the far reach of the IRS in Canada – Foreign Account Tax Compliance Act What is FATCA? The Foreign Account Tax Compliance Act1 (“FATCA”) was enacted by the United States Congress in order to deal with non-compliance by US taxpayers using foreign bank accounts. FATCA requires… – Continue reading
BENGALURU: US President Barack Obama’s visit to India could help unlock over $10 billion stuck in tax disputes between India and various countries. The move will largely benefit American technology companies as a big chunk of the disputes involve software development and IT-enabled services (ITeS) sectors. India’s competent authority Akhilesh… – Continue reading
With so much attention on FATCA in recent times, the financial services industry could be forgiven for seeing it as the most obtrusive regulation ever imposed. This view will soon change. Once the Automatic Exchange of Information comes into force, financial institutions will have far greater challenges to overcome, writes… – Continue reading
The Foreign Account Tax Compliance Act (FATCA) is a new chapter in the US Internal Revenue Code. Chapter 4 was added by the Hiring Incentives to Restore Employment (HIRE) Act. It seeks to identify US taxpayers having accounts at foreign financial institutions (FFIs) and attempts to enforce reporting of those… – Continue reading
NEW DELHI: The government may prosecute those accused of evading taxes under the Prevention of Money Laundering Act (PMLA) as part of a wide ranging crackdown on black money. Further, non-declaration of foreign bank accounts and assets may also be made a criminal offence, according to people who have been… – Continue reading
BEIJING, Jan. 23 (Xinhua) — The internationalization process of China’s currency has made a new stride forward during the ongoing World Economic Forum annual meeting, with Beijing and Bern inking a deal to expand financial cooperation. Under the agreement, signed Wednesday in the Swiss ski resort of Davos, China gives… – Continue reading
Tax and estate planning usually takes place during a client’s lifetime. That said, there are post-mortem planning opportunities that you should discuss with clients. The goal of post-mortem planning is to reduce the overall tax liability for the estate and its beneficiaries. So create a customized plan to deal with… – Continue reading
Prime Minister David Cameron has said he hopes Scottish devolution settlement will be lasting, but professors warn it may already need to be reviewed Academics in Scotland have warned that devolving tax powers could see this region’s rich residents moving north of the border. And with the possibility that giving… – Continue reading
Industry body Assocham has urged the Government to clarify that MAT will not be levied on foreign companies that do not have any branch or a permanent establishment in India. Such a clarification is needed for incomes sourced out of India by such foreign companies, the chamber said in a… – Continue reading
Over the past few years, the European Union has targeted multinational corporations using tax planning strategies to reduce corporate tax burdens. Recently, the EU has launched an investigation into tax deals between Amazon (AMZN) and the country of Luxembourg. With an array of subsidiaries within European countries, Amazon’s European headquarters… – Continue reading
The income tax department has moved the Supreme Court seeking directions to a tax tribunal to consider certain facts relating to the taxable income of Vodafone India Services for the 2007-08 fiscal. This relates to the sale of its calls centre business and an alleged exercise of call options in… – Continue reading
India has worked out a bilateral tax agreement with the United States, which could be signed during U.S. President Barack Obama’s visit, that would boost foreign investment and ease investors’ concerns raised by high profile cases against Vodafone and Shell. The pact, which industry executives say would specifically target the… – Continue reading
The Fiji Revenue and Customs Authority (FRCA) has announced two six-month amnesty programs, for undeclared offshore assets and for persons struggling to pay tax dues. The first amnesty will enable taxpayers who disclose assets held offshore to be liable for unpaid taxes only. Initially announced by the Fijian Minister for… – Continue reading
Premier Li Keqiang (Left) meets with Simonetta Sommaruga, president of the Swiss Confederation, in Davos, Switzerland, Jan 21, 2015.[Photo/english.gov.cn] China will give Switzerland an investment quota of 50 billion yuan ($8.05 billion) under its Qualified Foreign Institutional Investors (QFII) scheme to support the establishment of the Zurich offshore renminbi market,… – Continue reading
Luxembourg’s business-friendly tax laws have saved companies billions. The party’s almost over. On a typical day, thousands of passengers pull into Luxembourg’s central train station and traverse the busy shopping street of Rue de la Gare, where everything from pastries to rain boots is on offer. Few, however, step inside… – Continue reading
Lobby groups representing Google, Amazon and other powerful US tech multinationals have launched a fierce attack on global plans to stamp out artificial corporate structures used to avoid tax. In responses to the latest stage of a two-year, G20-led programme of international tax reform, lobbyists for the US tech industry… – Continue reading
London mayor Boris Johnson has agreed to pay a substantial tax bill to the US government despite earlier claiming that it was “outrageous” for the US to tax expat American citizens in an interview at the end of November last year. Johnson was born in New York but left when… – Continue reading
Leading regulatory supervision software provider adds new features to provide a robust, future-proof FATCA & AEOI system. Ottawa, Canada (PRWEB) January 22, 2015 Vizor, the leading regulatory supervision software provider, today introduced new features that help Tax Authorities meet their Foreign Account Tax Compliance Act (FATCA) obligations as well as… – Continue reading
