Category: Activity

Proposal to make arbitration mandatory under MAP dropped

India opposed the proposal saying it impinges on the sovereign rights of developing countries in taxation New Delhi: An international proposal to make arbitration mandatory and binding under mutual agreement procedures (MAP) in tax treaties has been dropped after India strongly opposed it. Last year, the Organisation for Economic Co-operation… – Continue reading

India moving fast to resolve tax disputes with overseas entities: Revenue Secretary

Hopeful of settling disputes with 120 US companies in next 3 months NEW DELHI, AUG 23: India will, in the next three months, settle tax disputes involving 120 US companies, Revenue Secretary Shaktikanta Das has said. This will be done under the new framework agreement on Mutual Agreement Procedure (MAP)… – Continue reading

Ireland making ‘little or no’ effort to curb corruption – report

Ireland has made “little or no” effort over the past four years to create a corruption-free playing field for global trade, violating its “obligation to combat cross-border bribery”, reports the Irish Times. The Transparency International Exporting Corruption report, released on Thursday, found that Ireland, along with countries such as Russia,… – Continue reading

France: Dividend Withholding Tax Exemption And Specific Anti-Abuse Provision

In a recent decision (CAA Versailles, July 8, 2015, n°13VE01079), the Versailles Administrative Court of Appeals (CAA) provided an interesting illustration of the operation of the specific anti-abuse provision (i.e., different from the general abuse of law theory) attached to the dividend withholding tax exemption provided, in accordance with the… – Continue reading

Worldwide: Double Tax Treaties – Ratification Update

LUXEMBOURG On September 5, 2014, the Ministers of Finance of France and Luxembourg signed an amendment (Lux Amendment) to the double tax treaty entered into between France and Luxembourg on April 1, 1958, as amended by the 1970 exchange of letters and by the 1970, 2006, and 2009 protocols (FR/Lux… – Continue reading

MY BIZ: Government signals it may accept Shah Committee recommendations

In what could turn out to be a major relief for foreign investors, an expert committee has recommended that there was no case for imposing the controversial minimum alternate tax (MAT) on foreign institutional investors (FIIs) with retrospective effect. The A.P. Shah Committee, appointed to examine the issue of levying… – Continue reading

Tax Transparency In European Union

On 17 June 2015, the European Commission launched a public consultation on further corporate tax transparency, which suggests a variety of tax transparency measures including country-by-country reporting (see here). The consultation is intended to gather feedback on which companies should offer more tax transparency and to whom. The deadline for… – Continue reading

Use of Estonia in U.S. International Tax Planning

According to recent estimates, Estonia, which is situated halfway between Stockholm and St. Petersburg, currently has more than 350 start-up technology companies – one for every 3,700 citizens – and the government expects this number to reach 1,000 by the year 2020. This makes Estonia the number one start-up technology… – Continue reading

INDIA: MANAGEMENT FEES UNDER UK TREATY; TRADE DISCOUNTS

Management and procurement services not taxable as “fees for technical services” under the India-UK income tax treaty: India’s Authority for Advance Rulings concluded that services rendered by a group director to its group company in India were “managerial services” that, as rendered by the UK procurement team, did not make… – Continue reading

U.S. Expatriates Find Financial and Tax Planning in Rio: Sponsored

Amit Ramnani, director of Ipanema Wealth, an independent financial consultancy firm, discusses the key issues facing U.S. expatriates. RIO DE JANEIRO, BRAZIL – Many United States citizens living overseas are unaware of the potential tax liabilities they could be facing in near future. To help out the Rio-based firm Ipanema… – Continue reading

Switzerland: Innovation tax breaks “key to attracting companies”

Industry lobby groups are calling on lawmakers to bolster business innovation as they debate corporate tax reforms aimed at retaining Switzerland’s status as a location for multinationals, reports Swiss Info. Parliament is currently looking at a government recommendation to replace Switzerland’s current, and controversial, cantonal corporate tax system – that… – Continue reading

Everald Dewar | The FATCA Effect On Jamaican Taxes

American residents or nationals, citizens and green card holders – persons of interest – living in Jamaica are required to file US tax returns and must, by voluntary disclosure, fill out a form to disclose ‘foreign assets’. The filing of a Foreign Bank and Financial Accounts Report (FBAR) is an… – Continue reading

Canada Court Ruling Could Put Brakes on FATCA

Aug. 19 — Tax authorities and practitioners around the world are awaiting a Canadian court’s ruling on the legality of Canada’s legislation to comply with the Foreign Account Tax Compliance Act. The Federal Court of Canada is due to issue by Sept. 30 a ruling on the validity of the… – Continue reading

FATCA legislation to impact the South Africa financial services sector

South African companies who do direct and indirect business with US organisations, whether in South Africa, Africa, Europe or further afield, must comply with the United States Foreign Account Tax and Compliance Act (FATCA,) or risk being excluded from lucrative markets the world over, reports the Cape Business News. This… – Continue reading

Australian Committee On Tax Avoidance Issues Interim Report

The Australian Senate inquiry into tax avoidance has released its interim report, which makes 17 recommendations, including the introduction of a mandatory tax reporting code. The Senate Inquiry into Corporate Tax Avoidance was referred to the Economics References Committee in October 2014. The first hearing was conducted in April 2015,… – Continue reading

Summer Budget 2015: new rules for non-domiciled individuals

Introduction Individuals whose domicile of origin is outside United Kingdom Non-UK individuals with UK domicile of origin Consultation and legislation New inheritance tax rules for UK residential property held within offshore corporate envelopes Comment Introduction Individuals domiciled outside the United Kingdom might have been justified in thinking that they would… – Continue reading

Anti-Money Laundering Act: Govt to review limit for punishing tax evaders

ISLAMABAD: In a bid to persuade legislators to withdraw their opposition, the government on Wednesday hinted at reviewing the Rs10 million limit that it proposed for treating tax evasion as an offence under Anti-Money Laundering Act. The government showed this flexibility during a meeting of Senate Standing Committee on Finance and… – Continue reading

Brazil Ruling No. 1,580/2015: changes in the deadline for filing the electronic financial return (“e-Financeira”)

On August 17th, 2015, Ruling No. 1,580/2015 was published, containing amendments to Ruling No. 1,571/2015 concerning the “e-Financeira”, which is the tax return to be filed for the purpose of informing financial transactions of interest to the Federal Revenue Office. The deadline for filing the e-Financeira, in relation to triggering… – Continue reading

US: Explanation of competent authority revenue procedure

The IRS on 12 August 2015 released Rev. Proc. 2015-40 with respect to requesting competent authority (CA) assistance, and it is generally effective for CA requests filed on or after 30 October 2015. Rev. Proc. 2015-40 updates and supersedes Rev. Proc. 2006-54. The IRS concurrently released Rev. Proc. 2015-41 as… – Continue reading

FATCA: Updated “more favorable terms” for Model 1 IGA

In late July 2015, Treasury provided an initial notification of “more favorable terms” concerning “certain alternative procedures” under the Model 1 IGA. This notification has been updated, 18 August 2015. Read the updated Treasury notification [PDF 70 KB]

Proposals for GST and offshore online purchases

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 THE LEFT: Best way to tackle offshore tax evasion

FOR MANY YEARS countries around the world have been engaging in the automatic exchange of information in order to tackle offshore tax evasion and other forms of non-compliance. The Organisation for Economic Cooperation and Development (OECD) has been active in facilitating automatic exchange of information by creating the legal framework,… – Continue reading

Is FATCA chasing a leprechaun and his pot of gold?

FATCA was enacted into law by section 501(a) of the Hiring Incentives to Restore Employments (HIRE) Act 2010 as a revenue offset to help pay for the continuation of unemployment benefits for workers laid off during the 2008-2010 financial crisis. In July 2008, the U.S. Senate Permanent Subcommittee on Investigations… – Continue reading

THE ISSUE: ‘Bowing’ to global pressure

IN THE LAST TEN YEARS the international community has tried to pressure Barbados into signing tax information exchange agreements. Successive administrations, however, have resisted by continuing to show preference for double taxation treaties. That has not stopped the pressure, and some would argue that in some ways the global players… – Continue reading

Tax expert warns Liechtenstein disclosure facility replacement will be tougher

Anyone with undisclosed overseas income, gains or assets will be wise to make use of the Liechtenstein Disclosure Facility while it lasts, according to tax experts at Baker Tilly, reports FT Adviser. Andrew Hubbard, a partner at the firm, warned advisers that everything he has heard has led him to… – Continue reading

Cyprus: The New Protocol To The Cyprus – South Africa Double Taxation Agreement

On 1 April 2015 Cyprus and South Africa signed a Protocol amending their existing double taxation agreement (“DTA”), which was signed in 1997 and has been in force since 8 December 1998. The Protocol amends the 1997 DTA in three areas, namely the definition of residence, withholding taxes on dividends… – Continue reading

SA taxpayers have nowhere to hide

South Africans with undisclosed offshore accounts may feel exposed after their offshore Swiss bank account information found its way into the public domain this year. The theft of information relating to some 30 000 HSBC accounts – the biggest banking leak in history – actually took place five years ago… – Continue reading

The fight of the EU against tax avoidance: More powers for Brussels

In its Resolution of March 25, 2015, on the Annual Tax Report (2014/2114(INI)), the European Parliament renewed its commitment to combating tax havens and tax avoidance. To be sure, most aspects of the resolution have been discussed before. Bundling these aspects into one comprehensive package, however, provides an intriguing snapshot… – Continue reading

Singapore bankers rattled by Asian moves to chase hidden wealth

Singapore-based wealth managers, already under pressure from a global move towards tax information sharing, face a more immediate threat as Asian countries including Indonesia and India look to chase undeclared money in the low-tax city state. A global crackdown on tax evasion launched during the 2008 financial crisis has already… – Continue reading

Bahamas: Fatca compliance ‘will strengthen financial services industry’

Financial Services Minister Hope Strachan said yesterday that the landscape of the country’s financial services industry would be strengthened as a result of the nation’s compliance with the tax information exchange agreements such as the US Foreign Account Tax Compliance Act (FATCA), saying that she was fairly satisfied that The… – Continue reading

Offshore investments in insurance, real estate

With the objective of long-term sustenance of wealth created both inside as well as outside India and continuous revenue generation, high net-worth individuals (HNIs) in India have decrypted and adopted innovative methods for asset protection and estate planning. The latest addition to the existing gamut of methods are offshore investments… – Continue reading

No Plans To Harmonize EU CIT Rates, Says Moscovici

Tax Commissioner Pierre Moscovici has confirmed that the European Commission has no plans, formal or informal, to harmonize corporation tax rates across the European Union. In a written question to the Commission, Jonathan Arnott, a UK Member of the European Parliament, asked the Commission to confirm its latest position on… – Continue reading

The secretive London family at war over its millions

Questions over tax — hotly denied — feature in a row centring on one of the capital’s biggest art collectors One of London’s wealthiest but most secretive families is locked in a bitter feud over the ownership of its empire, which spans high-end London properties to African tobacco-trading businesses. A… – Continue reading

European Union: The Future Of Trusts In The Context Of The 4th AML Directive

The following article by Dr Monica Galea John, partner in the Financial Services Department, analyses the manner in which the Fourth EU Anti Money Laundering Directive (the “Directive“) which has just made its way through the EU’s legislation, obliges, for the first time, EU member states to maintain central registers… – Continue reading

Greece’s Third Bailout Measures Agreed

Greek lawmakers and European Union finance ministers have signed off on a third bailout deal, including a diverse range of tax increases and commitments to curtail spending. A memorandum between the two parties, released on the blog of the former finance minister Yanis Varoufakis, acknowledges that the Government has recently… – Continue reading

International Tax Alert (US): Offshore e-Commerce Service Providers: Changes to Japan’s Consumption Tax Act are Going into Effect

Offshore e-commerce service providers should make themselves aware of changes to Japanese law that affect their operations. Pursuant to a recent amendment of the Consumption Tax Act, a new Registration of Foreign Business Operator system has been in effect since July 1, 2015. Many affected businesses have not yet registered… – Continue reading