IT is ironic that what was almost at the centre of the BEPS project has ended up in not having a concrete agreement and with a vague promise of some review by the year 2020. One may recall that it was the big digital companies and their tax affairs that… – Continue reading
A study from Confindustria, the Italian business association, has estimated that tax and social security contributions evaded in Italy amounted to EUR122.2bn, or 7.5 percent of gross domestic product (GDP), in 2014. Confindustria described tax evasion as “a serious obstacle to Italy’s economic and social development because it penalizes equity,… – Continue reading
It was Kerry Packer who famously told the nation’s politicians “if anybody in this country doesn’t minimise their tax they want their head read” because “as a government I can tell you you’re not spending it that well that we should be paying extra”. The words have gone down in… – Continue reading
The Australian Taxation Office (ATO) released its first tax transparency report, outlining for the 2013-14 year, the tax information published by the ATO covering income tax of certain corporate taxpayers with total income of AUS $100 million or more. Of the 1,539 total number of companies disclosed in the ATO’s… – Continue reading
Footwear is one of the industries with high export turnover. However, the profitable industry is being controlled by companies from South Korea and Taiwan. According to the Vietnam Leather & Footwear Association (Lefaso), with 800 enterprises and 1 million workers, FIEs account for one-fourth of total number of footwear makers,… – Continue reading
As the Government of Jamaica moves on its agenda to prevent revenue leakage through transfer pricing legislation, local companies are still waiting to see what impact the changes will have on their operations. The new law allows for the detailed examination of the accounts of companies with associates and branches… – Continue reading
Case law Chevron appeal to the Full Federal Court Chevron Australia Holdings Pty Ltd has appealed the decision of the Federal Court in Chevron Australia Holdings Pty Ltd v Commissioner of Taxation (No 4) [2015] FCA 1092 to the Full Federal Court. For details of the Federal Court decision, please… – Continue reading
The Delhi High Court held that the taxpayer’s advertising, marketing, and sales promotion expenses were not an “international transaction” under provisions of India’s tax law, and thus, could not be the basis of a transfer pricing adjustment. The court further held that a “bright line test” as applied by the… – Continue reading
A list of tax paid by Australia’s biggest companies, released by Tax Commissioner Chris Jordan on Thursday, may have raised more questions than it answered. Nevertheless, we needed it. This is just the beginning of a long journey towards tax transparency. The Australian Taxation Office (ATO) released the data for… – Continue reading
The European Parliament has spelt out the legal steps needed to improve corporate tax transparency, coordination and an EU-wide policy convergence in a resolution voted on this week. Parliament’s drive to persuade EU member states to act to counter aggressive corporate tax planning and evasion by multinationals in Europe was… – Continue reading
Group companies, irrespective of the jurisdiction, will have to conform to common standards The Organization for Economic Cooperation and Development (OECD) recently released 15 action-plans to address the issue of “Base Erosion & Profit Shifting” or BEPS, which has led to misalignment between where taxes are paid and where value… – Continue reading
Liability below the mid-point of the range in IPO prospectus TORONTO, Dec. 18, 2015 /CNW/ – Spin Master Corp. (“Spin Master” or the “Company”) (TSX: TOY) announced today that it has reached a settlement agreement with the Canada Revenue Agency (“CRA”), which resolves a previously disclosed transfer pricing matter arising… – Continue reading
According to a research report titled “Illegal Financial Flows from Developing Countries: 2004-2013”, recently published by the Washington based research institute Global Financial Integrity (GFI), Bangladesh stands 26th in the list of 149 developing nations, in terms of flight of capital including money laundering (The Daily Star, December 10, 2015)…. – Continue reading
Initiated by the Organisation for Economic Cooperation and Development in 2013 and endorsed by the G-20, the OECD’s “Action Plan to Address Base Erosion and Profit Shifting (BEPS)” includes 15 key areas to encourage more transparency, better reporting and more cooperation between countries in which multinational companies operate. On October… – Continue reading
In the wake of the final OECD BEPS reports issued in October, the European Council adopted amendments to Directive 2011/16/EU providing for the automatic exchange of information concerning advance cross border rulings (ACBR) and advance pricing arrangements (APA) between Member States. The amendments, which will come into force from 1… – Continue reading
On the 29th of September of this year, one of the most important and controversial norms of the tax reform: the general anti-avoidance rule came into effect. This norm intends to cutback aggressive tax planning providing new faculties to the Chilean IRS. Indeed, this norm has incorporated what is widely… – Continue reading
Mexico has recently gazetted new transfer pricing documentation requirements, which will be effective from the 2016 tax year. The legislation was submitted to Congress by the Government on September 8, 2015, and published in the Official Gazette at the end of November. It will introduce the country-by-country (CbC) reporting framework… – Continue reading
WHETHER he is being straitjacketed by the International Monetary Fund (IMF) or it’s a case of his own ignorance of how economies work, Dr Peter Phillips is recklessly betraying the cause of Jamaican businesses. The finance minister, with the tacit support of the Cabinet – and his self-serving cabal –… – Continue reading
Nokain Tyres is appealing a tax adjustment for 2007-2010 that requires the tiremaker to pay an extra 87 million euros. The adjustment includes an additional 55 million euros in additional taxes and 32 million in punitive taxes that must be paid by January 2016, Tyres and Accessories reported. Nokian described… – Continue reading
The tax commission of the ruling coalition (the Liberal Democratic Party and New Komeito) on 10 December 2015 reached an agreement for a draft outline of tax reform proposals for 2016. Among the items in the draft outline are proposals for transfer pricing documentation rules based on Action 13 (Transfer… – Continue reading
The Belgian Minister of Finance has just shared new insights on how Belgium will be addressing the outcome of the OECD/G20 project in relation to Base Erosion and Profit Shifting (“BEPS”). He opted to do so via the “Plan to combat tax fraud”. The title of his policy note is… – Continue reading
Provisions under new article 76A of Mexico’s tax law reflect certain items of the OECD’s base erosion and profit shifting (BEPS) project—in particular expanded transfer pricing disclosure requirements that will apply for the 2016 tax year. Background The Mexican government’s 2016 federal budget, presented 8 September 2015, included proposals for… – Continue reading
Executive summary On 9 December 2015, the UK released draft clauses for Finance Bill 2016 as well as consultation documents. The key items released include: A new requirement for large businesses to publish their tax strategies as they relate to or affect UK taxation. This sits alongside new ‘special measures’… – Continue reading
In 10 years between 2004 and 2013, Ghana has lost a cumulative $4 billion to illicit financial flows. A report issued last week by the Global Financial Integrity (GFI), a Washington DC-based research and advisory organization found that every year $401 million leave the shores of Ghana illicitly. The report… – Continue reading
The Australian Taxation Office (ATO) has released a Taxpayer alert on arrangements involving the use of offshore entities which source goods (procurement hub) on behalf of Australian resident multi-national enterprises (MNEs) (TA 2015/5). In the alert the ATO announces that it is currently reviewing arrangements involving the use of offshore… – Continue reading
the company will make a complaint against the decision Nokian Tyres plc (HEX:NRE1V) has received a renewed reassessment decision from the Tax Administration, according to which the Company is obliged to pay EUR 87 million additional taxes with punitive tax increases and interests concerning tax years 2007-2010. Payment must be… – Continue reading
Dear clients and cooperation partners, This newsflash will tell you about findings reflected in court judgements with regard to application of resale price method, and in particular – contradictions in calculation of arm’s length profit level. Recent transfer pricing judgements in Latvia lead to increased controversy in application of resale… – Continue reading
Check out the most important news stories which captured the headlines at the corporate level in India and internationally. SBI will issue EMV chip and pin based debit cards to its new customers to ensure enhanced secure transactions. EMV chip and pin feature protects against skimming and card transaction frauds…. – Continue reading
Hundreds of millions of dollars of revenue could be up for grabs as the Tax Office announces reviews of multinationals using offshore hubs in Singapore to minimise their tax. The ATO has issued a warning to multinationals to come forward immediately to discuss their overseas hub arrangements, if they have… – Continue reading
Stricter Tax and documentation requirements for foreign transactions “Amazon, Facebook, Google and Starbucks pay little taxes …” or “Luxembourg attracts international corporations” – headlines like these have 62 states and the OECD called into action. The result was “base erosion and profit shifting” BEPS shortly. Even the German SME sector… – Continue reading
Something unusual is happening with the Irish corporation tax in 2015 — so unusual that Ireland’s top tax man felt obliged to write to the parliament to explain what is going on. But the explanation left a lot to be desired. According to government data, Ireland received 57.7 percent more… – Continue reading
Dec. 14 — The Coca-Cola Co. filed a petition in U.S. Tax Court challenging a proposed $9.4 billion income adjustment related to the company’s transfer pricing for tax years 2007-09 (Coca-Cola Co. v. Commissioner, T.C., petition filed, 12/14/15). If the adjustment is sustained, the company could face a tax bill… – Continue reading
Ghana’s new Income Tax Act (No. 896 of 2015) will come into force on January 1, 2016. It is intended to improve tax compliance and administration and broaden the country’s income tax base by rationalizing tax breaks. In the new Act, there are specific provisions governing the imposition of income… – Continue reading
This article is the fourth and final part in a series examining the Canadian and U.S. income tax implications of the temporary assignment of an employee from Canada to the U.S. Specifically, these articles address the situation of an employee remaining employed by a Canadian entity, but temporarily assigned to… – Continue reading
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
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
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
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
