Transfer pricing is a tax planning method where related companies enter into transactions among each other to shift funds, and thereby profits. For instance, a parent company can extract funds from a subsidiary by having the issue a dividend, but the parent can also provide a service to subsidiary and… – Continue reading
In our previous columns, we tackled some of the recommendations from the Organisation for Economic Co-operation and Development (OECD) on how to address the issue of Base Erosion and Profit Shifting (BEPS) in international tax systems. We will now focus on the topic of transfer pricing (TP) of intangibles as… – Continue reading
Companies operating cross border through presence of Branch offices, Liaison and representative offices, appointed distributors and agents should closely watch the changes coming through in international tax norms. OECD and G20 countries adopted a 15 point action plan to address Base Erosion and Profit Shifting (BEPS) and Action Point 7… – Continue reading
The Central Board of Direct Taxes (CBDT) has recently entered into eleven (11) more Advance Pricing Agreements (APAs) with Indian subsidiaries for foreign companies. In a major push towards providing certainty to foreign investors in the arena of transfer pricing, the CBDT signed these APAs operating in various segments of… – Continue reading
A review of Nigeria’s present fiscal and currency control regimes as they relate to commercial and industrial IP rights become imperative in order to give impetus to government’s efforts towards reviving and diversifying the country … Prior to the introduction of the Income Tax (Transfer pricing) Regulations on 2 August,… – Continue reading
Under Action 8 of the BEPS project (Base Erosion and Profit Shifting) – Aligning Transfer Pricing Outcomes with Value Creation – work was carried out which resulted in certain changes to the OECD guidelines on transfer pricing (Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations), with special emphasis on… – Continue reading
Karl Samuda, a member of the parliamentary opposition, says he is against legislation that would “prevent a company from using its creativity to maximise its profit position”. The North Central St Andrew MP, who speaks on industry for the opposition, said that it is a bad thing to put in… – Continue reading
India is expected to ink upto 40 Advance Pricing Agreements before the end of fiscal as the country looks to provide tax certainty to foreign investors. “The new momentum will go a long way in avoiding disputes,” a finance ministry statement said on Friday. As many as 22 APAs have… – Continue reading
INTRODUCTION The Taxation Laws Amendment Act, 2015 and the Tax Administration Laws Amendment Act, 2015 have now both been passed by Parliament, but await signature by the President. Once again, and for the second year running, the number and scope of the changes to the various fiscal Acts (mainly the… – Continue reading
Firms over a certain threshold group turnover may be required to give detailed info of financials. MULTINATIONAL companies in India over a certain threshold group turnover may be required to make comprehensive disclosures relating to their revenues, taxes paid, staff strength and assets in different countries where they operate from… – Continue reading
The Association of Retail Trade (ACDET), which is part of Walmart, defended the decision to the chain filed a lawsuit against the government and the law 72. Considers that the law is unconstitutional and arbitrarily penalize one company. “Since April we warn the people that the measures were being discussed… – Continue reading
A global law firm has today criticised HM Revenue & Customs’s (HMRC) recently announced plans for cracking down on tax avoidance by businesses, saying that parts of the proposals would make HMRC the “judge, jury and executioner.” Further details on legislation that would allow the UK tax authority to place… – Continue reading
As the EU prepares for country-by-country tax reporting requirements, businesses would do well to understand the minutiae of the upcoming regulations October 2015 was a busy month for announcements regarding base erosion profit shifting (BEPS) and country-by-country reporting. The OECD issued the last of the guidelines on BEPS, the various… – Continue reading
Samuda blasts Gov’t for transfer pricing policy Opposition spokesman on industry and commerce Karl Samuda addressing the transfer pricing policy in Parliament on Tuesday. KARL Samuda has described the transfer pricing regime, as well as the Government’s push to implement it retroactively, as unfriendly to business, and has predicted that… – Continue reading
In 2013, the 39th G8 summit in Lough Erne committed to reform the international tax system. The G8 Lough Erne Declaration stated that such reforms would benefit developing countries. The G20 declaration in St Petersburg 2013 also stated specifically that “Developing countries should be able to reap the benefits of… – Continue reading
Source: United Kingdom – Executive Government & Departments – Press Release/Statement: Headline: News story: Finance Bill 2016 paves way for even simpler tax system and tough offshore evasion regime The government has today (Wednesday 9 Wednesday) published draft tax legislation to implement policies published at Summer Budget 2015 and Autumn… – Continue reading
Akhilesh Ranjan, joint secretary (foreign tax), who led India’s initiative in the BEPS project, candidly shared his views on India’s plans for its implementation and what lies in the future. The fundamental principle of the BEPS project, is that income of MNCs should be taxed in that country where economic… – Continue reading
Policy will disrupt investment: Samuda THE Government fell back on its huge majority in the House of Representatives yesterday to approve the back tax provisions included in new transfer pricing regulations despite objections from the Opposition that the measure would strangle businesses and obstruct investments. The 21 Government members (excluding… – Continue reading
ROME—The Italian government will pocket over €4 billion ($4.4 billion) in proceeds from a tax amnesty it launched as part of a broad crack down on Italian money stashed abroad. The additional money will be a boon for the government, as it seeks to meet its budget targets amid a… – Continue reading
On December 9, 2015 the UK HM Revenue & Customs (HMRC) published a policy paper titled: “Corporation Tax: anti-hybrid rules”. Next to publishing the policy paper the UK Government also announces that on December 22, 2015 a series of examples illustrating the application of the hybrid mismatch rules will be… – Continue reading
NEW DELHI: India and Korea have inked a new memorandum of understanding on suspension of collection of taxes during pendency of mutual agreement procedure. This MoU will relieve the burden of double taxation for taxpayers in both the countries during the pendency of MAP proceedings. MAP or Mutual Agreement Procedure… – Continue reading
The European Union’s Economic and Financial Affairs Council agreed a work plan in response to the OECD’s base erosion and profit shifting recommendations at its meeting on December 8. Following the meeting, ECOFIN – comprised of finance and economy ministers from all member states – released a list of agreed… – Continue reading
On 8 December 2015, the Council adopted a directive aimed at improving transparency on tax rulings given by member states to companies in specific cases about how taxation will be dealt with. The directive is one of a number of initiatives aimed at preventing corporate tax avoidance. It will require… – Continue reading
MUMBAI: India has been an active participant in the Base Erosion and Profit Sharing (BEPS) action plan, the final package of which was rolled out by the Organisation for Economic Co-operation and Development (OECD) in October. The action points, set down by the OECD, aim at closing loopholes that enable… – Continue reading
Global corporation tax reform proving good for country As things stand, it would appear that matters are going Ireland’s way insofar as global corporation tax reform is concerned. The country-by-country reporting rules that have been proposed under the OECD’s Beps programme, and that commentators had been focused on in relation… – Continue reading
Explosives maker Orica will take a $36 million hit to its bottom line after the Federal Court found it had avoided tax by using “round robin” financing arrangement it put in place a decade ago to boost its profit and ward off takeover bids. BusinessDay revealed Orica’s battle with the… – Continue reading
Ramos Vega asked to accept pay 2% of sales per year as a reasonable contribution Representative Luis Vega Ramos called Walmart today the company to desist from his claim against the Government of Puerto Rico by the tax increase purchases subsidiary on the island does to its parent company. The… – Continue reading
Yahoo has reportedly abandoned its plan to spin off its stake in Alibaba. Yahoo’s proposed spinoff had been driven by tax concerns. In a world without taxes, Yahoo could have simply sold its Alibaba shares and distributed the proceeds to shareholders. Yahoo will now concentrate on other strategic options, including… – Continue reading
The EU Council has adopted a new transparency directive aimed at preventing corporate tax avoidance The directive, which was proposed by the European Commission (EC), is aimed at improving transparency on tax rulings given by member states to companies about how their taxes are calculated. Under the new directive, member… – Continue reading
INTRODUCTION The Taxation Laws Amendment Act, 2015 and the Tax Administration Laws Amendment Act, 2015 have both now been passed by Parliament, but await signature by the President. Once again, and now for the second year running, the number and scope of the changes to the various fiscal Acts (mainly… – Continue reading
This Administration has shown flashes of the kind of thinking that countries need to achieve economic growth. On previous occasions we have, in this space, pointed to some of the policies implemented and have extended due commendations to Mrs Portia Simpson Miller’s team. Just two months ago, we commented on… – Continue reading
The Internal Revenue Service (IRS) continues its focus on perceived abuses in corporate inversion transactions. On November 19, the IRS released Notice 2015-79, which places new limitations on the ability of a U.S. multinational corporation to reduce its U.S. tax burden by inverting its corporate structure. U.S.-based multinationals are subject… – Continue reading
Tax inversions — the process of U.S. firms, merging with or buying foreign companies to shift their taxpaying headquarters abroad — have deprived the U.S. Treasury of ever-increasing billions of dollars. Although President Barack Obama promised to take punitive action against companies deliberately engaging in mergers and/or acquisitions for tax… – Continue reading
Main principles of direct taxation – Domestic Tax Rules In our second article in a series of articles on the tax challenges of the digital economy, we shall be providing you hereunder with a brief overview of the principles of direct taxation, with a focus primarily on the taxation of… – Continue reading
The plan seeks to limit the fiscal erosion through interest deduction explains Alma Gutierrez; also seeks to prevent abuses in treaties and strengthening of controlled foreign companies rules. MEXICO CITY (CNNExpansión) – The Organisation for Economic Co-operation and Development (OECD) is a forum where the governments of different countries, including… – Continue reading
Companies caught cheating on their tax bill in Australia will have to repay double what they owe plus interest under news laws to prevent tax avoidance by multinational companies. The government secured the passage of the Tax Laws Amendment (Combating Multinational Tax Avoidance) Bill last week, which ministers said will… – Continue reading
Australian Taxation Office New or updated materials on ATO website, including: Class ruling to be released on Wednesday BAS reporting – offshore to offshore supply of goods: Some taxpayers are incorrectly including offshore to offshore supplies of goods in their business activity statements (BAS). This document sets out to clarify… – Continue reading
The Base Erosion and Profit Shifting (BEPS) project is an initiative being pursued by the Organization of Economic Cooperation and Development (OECD) to curtail perceived exploitation of international tax rules and loopholes by multinational enterprises (MNEs). The OECD’s BEPS project was initiated in 2013 at the request of the Group… – Continue reading
Campaigners attack offshore centre for support of tax dodging, corruption and terrorist financing, reports the Financial Times. Bermuda has hit back against its critics, claiming that the financial centre is the victim of an “irresistible urge to stereotype” the British overseas territories. Bob Richards, finance minister, mounted a trenchant defence… – Continue reading
The Australian Senate has passed legislation that will require companies that “avoid” taxes to pay back double what they owe, plus interest. The new Multinational Anti-Avoidance Law (MAAL) will cover all multinationals operating in Australia with global revenues of more than AUD1bn (USD730.7m). Approximately 1,000 companies will be affected. The… – Continue reading
WASHINGTON — Hillary Clinton on Wednesday will unveil a proposal for a new “exit tax” aimed at cracking down on corporate inversions, a practice that permits U.S. companies to merge with corporations overseas to lower their tax bill. The new tax would be part of a broader effort to target… – Continue reading
Pierre Gramegna says “challenging and long lasting” impact of the terrorist and refugee crises means countries have “no choice” but to ramp up spending Terrorist attacks are the biggest threat facing the European Union and countries have “no choice” but to tear up budget rules and ramp-up spending in order… – Continue reading
THE Private Sector Organisation of Jamaica (PSOJ) is not happy with amendments to the Income Tax Act that will see the implementation of a transfer pricing regime retroactive to April 1 this year. The PSOJ, in a letter to Tax Administration Jamaica (TAJ) Commissioner General Ainsley Powell in September, had… – Continue reading
In last week’s column, we started our discussion on Base Erosion and Profit Shifting (BEPS) Action Plan 10, which seeks to align transfer pricing outcomes to value creation by providing protection to payor-countries against base-eroding payments and prescribing additional rules on the applicability of the profit split method. BEPS Action… – Continue reading
TAXPAYERS are obliged to ensure maximum adherence to their tax obligations to avoid facing heavy penalties including criminal sanctions as well as frustrating the economic development of the country. Retired President, Mr Ali Hassan Mwinyi, made this call in Dar es Salaam on Thursday during the Accountants’ Annual Conference held… – Continue reading
MUMBAI: India has been an active participant in the Base Erosion and Profit Sharing (BEPS) action plan, the final package of which was rolled out by the Organisation for Economic Co-operation and Development (OECD) in October. The action points, set down by the OECD, aim at closing loopholes that enable… – Continue reading
Employees at Allergan have been told a proposed merger with Pfizer is about changing healthcare – not skirting tax law. Allergan’s global chief executive Brent Saunders has written directly to the company’s employees – including around 1,000 in Ireland, telling them the controversial deal is not just about tax savings…. – Continue reading
From the start of 2016, multinational companies found to be avoiding tax will have pay back the tax owed, plus a 100 per cent penalty, reports ZD Net. The Australian Greens have voted with the Coalition to pass legislation that will see multinational companies with annual revenue above AU$1 billion… – Continue reading
Amit Ramnani, director of Ipanema Wealth, an independent financial consultancy firm, discusses year-end tax planning techniques for U.S. expatriates. RIO DE JANEIRO, BRAZIL – Amit Ramnani, director of Ipanema Wealth, reminds U.S. expatriates that they still have time to apply some year-end tax-planning techniques. U.S. citizens who are resident in… – Continue reading
On December 1, the Italian Revenue Agency issued a guide delineating how companies can take advantage of Italy’s “patent box,” together with a circular containing the answers to questions arising out of the new regime’s operation. With effect from the present 2015 fiscal year, the patent box offers an optional… – Continue reading
