As a small island nation, with a vibrant insurance sector and relatively low tax rates, Bermuda can be a target for political leaders and pundits in the United States. But history shows that our nations are natural friends, allies and economic partners. Seventy years ago, fighting against Imperial Japan and… – Continue reading
Using foreign stocks to diversify your portfolio can be a good move for investors looking to collect dividends and protect capital. But owners of dividend paying foreign stocks can find themselves being hit by another type of tax: foreign dividend withholding tax. Keeping as much of your dividends as possible… – Continue reading
On Monday the 11th of August, an appeal was filed with the Federal Court of Canada in Vancouver seeking a declaration that the enforcement by the Canadian Government of the United States’ Foreign Account Tax Compliance Act (“FATCA”) on Canadian soil is unconstitutional. Under FATCA financial institutions enter into an… – Continue reading
Factors to consider in deciding which type of incorporation is best for you AS TAX LAWS continue to evolve, so do choices of entity. Being mindful of the alternatives is critical to achieving tax benefits. Both S corporations and Limited Liability Companies (LLC’s) are flow-throughs, which have long been a… – Continue reading
A senior Democratic tax writer said Friday that the Obama administration could take unilateral action targeting offshore tax deals before Congress leaves town for the midterm elections. Rep. Sandy Levin (D-Mich.) said that Treasury Secretary Jack Lew told a group of House Ways and Means Democrats on Wednesday that the… – Continue reading
Labor has accused the government of procrastinating on a key measure to stop multinational companies shifting profits offshore. It comes as the government prepares to chair the G20 finance ministers meeting in Cairns next week. The information-sharing deal, part of the global push to tackle tax avoidance, has been signed… – Continue reading
Much has been written about the poor public health and clinical capacity to respond to the Ebola outbreak in West Africa. Inadequate medical and nursing staff resources, inadequate isolation wards, inadequate intensive care resources, insufficient ambulances. An international emergency response is being mounted in an attempt to fill this huge resource gap…. – Continue reading
The past few years have seen a quantum leap in globalisation, resulting in free movement of capital and labour, shifting of manufacturing bases from high-cost to low-cost locations, gradual removal of trade barriers, technological and telecommunication developments, etc. These developments have, on one hand, led to increasing sophistication in tax… – Continue reading
Lagos, Sep 12 (IANS): In yet another sign of India’s growing trade ties with Africa, India’s High Commissioner to Nigeria A.R. Ghanashyam has said that trade between his country and this West African nation is likely to rise beyond $20 billion this year. “The last figure I have of trade between… – Continue reading
The Obama Administration, along with a couple senators, have been leading a campaign of moral indignation against “inversions.” In tax terms, inversions are a U.S. incorporated company changing its residence to a lower tax country to reduce the tax burden on its income. Because U.S. companies are taxed in the… – Continue reading
(Reuters) – The German government is considering a proposal to give the country’s 16 states more freedom to set their own tax rates, even though many of the states oppose the plan. In a interim paper obtained by Reuters, the government said it was open to talks on giving the… – Continue reading
Criminal fines imposed on corporations should not be tax deductible, but tax rebates could be claimed on illegally gained profits that a court has ordered a company to pay back, the Swiss government advised on Friday. The cabinet was responding to a parliamentary motion to clarify the situation in light of a… – Continue reading
Although the Foreign Account Tax Compliance Act (FATCA) went “live” July 1, 2014, guidance continues to fall into place. On July 16, the IRS issued instructions for the requester of various Forms W-8 and continues to update its FAQ website. The Cayman Islands Tax Information Authorityissued regulations effective July 4, 2014 addressing the… – Continue reading
Racing authorities have launched an investigation into allegations offshore bookmaker Betjack is failing to pay punters their winnings. The move comes as Betjack, based in tropical tax haven Vanuatu, gears up ahead of the spring racing carnival by hiring more sales staff for its Australian call centre, located on the… – Continue reading
Financial institutions outside Switzerland may be tempted to think that the U.S. Department of Justice’s focus and pressure on Swiss banks in recent years leaves them in the clear. And, indeed, the DOJ has had great success in targeting these institutions far from U.S. shores. It has levied monetary penalties… – Continue reading
China’s Bank of Communications is expected to settle in Luxembourg before the end of the year, marking the sixth Chinese bank to do so. The Luxemburger Wort first reported the bank, the fifth largest in China, had eyed up Luxembourg in January this year. This was confirmed on Tuesday by… – Continue reading
Withholding on US source income under FATCA started on 1 July 2014. The withholding will apply to gross “proceeds of sale” of securities bearing US source income (which includes repayment of principal on a loan to a US borrower) and, potentially, to “foreign passthru payments” from January 2017. Now that… – Continue reading
London and Singapore are fast closing the gap on Hong Kong in the race to become centres for offshore renminbi business and capitalise on Beijing’s ambition to make the RMB a global currency. Fred DiCocco, Asia-Pacific head of sales & relationship management for BNY Mellon’s Treasury Services business, says London… – Continue reading
Countries worldwide have cut their corporate tax rates in the past two decades. Germany lowered its top rate to 29.6% from 59.7% in 1993. Canada went from 44.3% to 26%, Ireland from 40% to 12.5%. The average top rate for 34 non-U.S. countries went from 36.9% in 1993 to 25.1%… – Continue reading
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Rep. Mark Pocan, D-Wis., has introduced three pieces of legislation to close tax breaks that enable U.S. multinational corporations to use so-called “inversions” in which they merge with a foreign company and move their tax domicile abroad to a low-tax country to reduce corporate taxes. Corporate inversions are used by… – Continue reading
A contingent of so-called “corrupt clients” from Canada have been caught in the net of a massive fraud investigation by the FBI and the U.S. Attorney, a source close to the investigation told CBC. CBC News reported Wednesday that two Canadians, along with four others, were indicted in the U.S…. – Continue reading
The offshore tax affairs of a company previously headed by the economics minister are to be re-examined by the finance department of canton Bern. The move comes after Swiss Public Television, SRF, published a memo written by the Federal Tax Authorities (FTA) which raised questions about the previous investigation. The… – Continue reading
Transfer pricing continues to be a critical issue for the Indonesian Tax Office (“ITO”). In an effort to provide much needed clarity on transfer pricing practices, particularly in relation to transfer pricing audits, the ITO issued PER 22[1] to provide guidance to auditors on what they should be focusing on in… – Continue reading
Outsourcing the responsible officer (RO) function under the Foreign Account Tax Compliance Act (FATCA) offers limited value to Cayman-Islands’ domiciled fund managers.The Model one Intergovernmental Agreement (IGA) between the Cayman Islands and the US does not stipulate that a responsible officer is required. The responsible officer title is a feature… – Continue reading
(MCT) — Five senators on Thursday urged Burger King Worldwide Inc. not to move to lower-tax Canada, accusing the company of trying to avoid paying its fair share for roads and other public services it receives in the United States. The letter, organized by Sen. Richard Durbin (D-Ill.) was intended… – Continue reading
NEW DELHI, SEPTEMBER 11: Indian companies looking to raise money abroad through offshore bond issuances to overseas investors are in a bind, thanks to the new company law requirement around private placement of securities. They are now looking up to the Corporate Affairs Ministry (MCA) to provide clarity on whether… – Continue reading
DOWNTOWN — The Roanoke Building at 11 S. LaSalle St. will undergo an $88 million renovation to transform the office building into a Residence Inn by Marriott, thanks to a property tax incentive approved Thursday by the city. Aldermen voted Thursday to grant LaSalle Hotel Partners LLC a Class L Property… – Continue reading
EVEN MORE Philippine companies have complied with a US tax law since a July 1 deadline, after which foreign financial institutions (FFIs) not yet registered with the US Internal Revenue Service (IRS) faced penalties. A list published by the IRS earlier this month showed that a total of 197 Philippine-based… – Continue reading
Washington, DC—(ENEWSPF)—September 5, 2014. Joshua Vandyk, an investment advisor, was sentenced today to serve 30 months in prison for conspiring to launder monetary instruments, the Justice Department and Internal Revenue Service (IRS) announced. Vandyk, a U.S. citizen, and Eric St-Cyr and Patrick Poulin, Canadian citizens, were indicted by a grand… – Continue reading
MINNEAPOLIS (WCCO) — A 43-year-old Vadnais Heights investment advisor pleaded guilty to accusations that he spent clients’ money on personal items instead of investing their funds, the United States Attorney’s Office announced Wednesday. Joel William Carlson, who was charged on Aug. 4, pleaded guilty Wednesday to two counts of tax evasion… – Continue reading
The tax authorities of the United Kingdom and Canada are to deepen cooperation to establish a stronger mutually beneficial relationship, senior officials from both Government have said. Canada’s Revenue Minister, Kerry-Lynne D. Findlay, met with David Gauke, the UK’s Financial Secretary to the Treasury, in London on September 8. Findlay… – Continue reading
Sen. Charles Schumer (D-N.Y.) released legislation Wednesday seeking to roll back the tax benefits for companies that reincorporate abroad. Schumer’s bill takes aim at a maneuver known as earnings stripping, a process by which U.S. subsidiaries can take tax deductions on interest stemming from loans from a foreign parent. The… – Continue reading
Retroactive legislation curtails tax-avoidance schemes but undermines faith in a government that changes the rules of game after an investment is made The temperature is rising in the United States over corporate inversions. U.S. Treasurer Jacob Lew is looking to pass retroactive law to undo recent corporate restructurings and, with… – Continue reading
BANGKOK, Sept 10 (Bernama) — Developing countries may be losing over US$160 billion annually due to corporate tax avoidance – money that could fund greater policy ambitions to get the global economy out of the doldrums and moving towards a more inclusive and sustainable future. Greater policy ambition in both… – Continue reading
(Seychelles News Agency) – According to a new report by the United Nations Conference on Trade and Development (UNCTAD), Seychelles and Mauritius are two of the most attractive small island developing states for foreign direct investment (FDI) due to the competitive advantages they offer to foreign capital. SIDS which are… – Continue reading
The Federal Court has handed down its decision in the case of Task Technology v Commissioner of Taxation in relation to the tax treatment of specific software payments. The case related to payments made by Task to CaseWare International Inc (CWI) for the right to market and distribute CWI software to end users… – Continue reading
This article was first published in the 2nd quarter 2014 edition of Personal Finance magazine. You might need a bank account in a foreign country for all sorts of reasons. As Gerrit Viljoen, financial planner at Ultima Financial Planners, says: “More and more South Africans have business interests and property… – Continue reading
Now that we have new cabinet ministers to drive the economy forward, the next expectation is for martial law to be lifted so that foreign investors and tourists can feel more comfortable about returning to Thailand. Meanwhile, the junta is determined to quickly show the people some signs of genuine… – Continue reading
If Lib Dems return to government in May, ‘big projects’ would need funding Mr Clegg said well-off would have to pay price – with mansion tax a priority Also wants capital gains tax raised, bringing political stance closer to Labour Party would enforce Royal Charter on press regulation in… – Continue reading
A cynical tax avoidance scheme which “abused the reliefs” offered for research into life-saving vaccines to claim back £77m, has been rejected at a second tribunal. HMRC said investors in the scheme used a Jersey registered limited partnership which claimed to be involved in creating and exploiting intellectual property from… – Continue reading
Scandal Is an Embarrassment to Separatists Planning Independence Referendum BARCELONA— Jordi Pujol often said he discovered his mission for Catalonia while climbing a mountain as a boy and seeing the destruction wrought by the Spanish Civil War of the 1930s. Decades later, as Catalonia’s long-serving leader, Mr. Pujol presided over… – Continue reading
Noble Energy and Jordan recently signed a nonbinding agreement for the sale of 8.5% of Leviathan’s gas over the course of 15 years, for as much as $15 billion. By Avi Bar-Eli | Sep. 9, 2014 | 2:47 AM The preliminary deal for the sale of gas to Jordan from… – Continue reading
Airbnb has joined other multinational tech companies by booking its Australian profits offshore through an Irish subsidiary. The move raises questions about how much local tax it pays and whether its rent-sharing model will run into trouble with regulators here. The private company, estimated to be worth $10 billion, has sought immunity from corporate… – Continue reading
UBS AG (UBSN) asked a Paris appeals court to overturn a $1.4 billion bail looming over the Swiss bank as France steps up a two-year-old tax evasion probe. The hearing dragged on for nearly three hours as the parties argued the case. The court said it would decide on the… – Continue reading
A retired businessman from Northern Ireland has made a 13.5 million euro (£10.8m) settlement with the tax man in the Republic – one of the largest ever. Anthony Cafferkey, from Lisnarick Road, Irvinestown, Co Fermanagh has been named and shamed on the latest defaulters’ list over his tax affairs. Listed… – Continue reading
A multi-count indictment was unsealed this morning in federal court in Brooklyn, New York, against six individual defendants: Robert Bandfield, a U.S. citizen; Andrew Godfrey, a citizen of Belize; Kelvin Leach, a citizen of the Bahamas; Rohn Knowles, a citizen of the Bahamas; Brian De Wit, a citizen of Canada;… – Continue reading
Medical device giant Medtronic Inc. leads all corporate inverters in the amount of offshore cash waiting to be tapped if their tax inversion deals are consummated. Medtronic is buying Covidien and moving to Dublin, and it has $13 billion of cash outside the United States, according to a report from the Financial Times,… – Continue reading
On Tuesday, the SEC and the Justice Department charged several companies claiming to be located on the same floor of an office building in Belize City with fraud and conspiracy. We may not have heard the last from Cynk Technology. On Tuesday, the Securities and Exchange Commission and the Department… – Continue reading
Principal source of information for Israel Tax Authority probe comes from someone who obtained information from foreign tax authorities and handed it over to Israeli officials. A gag order is expected to be lifted in the next few days on a major investigation of tax evasion by scores of Israelis… – Continue reading
