Multinational companies (MNCs) in India which have been evading tax on profits created due to a function carried out in the country by shifting contractual risk to some other location may soon find it difficult to escape the domestic tax net. Experts closely working with the government on how to… – Continue reading
The negotiations conducted by the Ministry of Finance and the Internal Revenue Service (SII) for Chile to sign the agreements to avoid international double taxation with Italy and Japan have concluded successfully. “The successful completion of negotiations with two of the world’s major economies crown an exceptional year in strengthening… – Continue reading
The yuan rose the most in almost a week in offshore trading on speculation Chinese authorities will prevent depreciation as President Xi Jinping promotes the currency’s use in global trade and finance during a trip to the U.K. this week. The People’s Bank of China sold debt overseas for the… – Continue reading
A recent Thomson Reuters survey report reveals that European companies are outpacing all others in developing their Base Erosion and Profit Shifting (BEPS) action plans by Dec. 31, 2017 – the deadline set by the Organization for Economic Cooperation and Development (OECD). But most respondents voiced several concerns about BEPS… – Continue reading
CHINA may implement new rules by the end of this year to prevent tax evasion by multinational companies as the G20 has endorsed a plan to enhance fairness of international tax revenue, Ernst & Young said. The State Administration of Taxation last Friday finished collecting feedback for amendments to a… – Continue reading
On October 5, 2015, the Organization for Economic Cooperation and Development (“OECD”) released its final report on the 15 key elements of international tax rules set out in its Base Erosion and Profit Shifting (“BEPS”) Action Plan. The OECD launched the BEPS Action Plan in 2013 at the request of… – Continue reading
On 17 September, 2015, China State Administration of Taxation (“SAT”) released the Discussion Draft for the Implementation Measures for Special Tax Adjustments (“Discussion Draft”) to overhaul the existing trial version of the Implementation Measures, i.e., Circular 2. In the chapter of “Contemporaneous Documentation” of Discussion Draft, SAT introduces an entirely… – Continue reading
WHEN public spending is being slashed in a way that punishes the poor, every firm have a moral obligation to pay their fair share. AMAZON are taking an ever bigger share of the shopping market. Technological advances mean you can order something from their website late at night from your… – Continue reading
Beijing’s monetary easing has sent onshore yields to multiyear lows, reports the Wall Street Journal. China’s booming domestic debt market is pushing investors to seek higher yields offshore, just as its banks start to expand yuan lending world-wide. The shift comes as China’s central bank is selling its first yuan… – Continue reading
Some might be surprised to learn that certain areas of Richmond and Vancouver, despite being thoroughly decorated with mcmansions, monster homes, and incessantly rising land prices, are actually inhabited by low income residents that make up a surprising per cent of the population. Conservative Party leader Stephen Harper, during a… – Continue reading
Three years ago, Chinese officials said U.K. Prime Minister David Cameron had “seriously damaged” relations by meeting with the Dalai Lama, the exiled Tibetan leader. As planned talks between the two countries were canceled or failed to take place, worries emerged that Britain would miss out on building deeper economic… – Continue reading
[HONG KONG] China’s central bank has hired banks to arrange its debut offshore yuan bond issuance in London, according to a term sheet seen by Reuters on Monday. The so-called dim sum bond sale comes as Chinese President Xi Jinping prepares for a state visit to Britain this week. Sources… – Continue reading
On 17 September, 2015, China State Administration of Taxation (SAT) released the Discussion Draft for the Implementation Measures for Special Tax Adjustments (“Discussion Draft”), as a complete revamp to the existing trial version of the Implementation Measures, i.e., Circular 2. Circular 2 has been serving as a backbone transfer pricing… – Continue reading
(Bloomberg) — China Construction Bank Corp. became the first Chinese bank to receive permission to offer commercial- banking services and clear renminbi transactions in Switzerland. The Swiss financial regulator, Finma, granted the bank permission to open a branch in Zurich, a spokesman said by phone Monday. China Construction Bank applied… – Continue reading
A little over a week ago the British parliamentarian, Sir Eric Pickles – a cabinet member until May of this year and a former Chairman of the Conservative Party – told the London Guardian that the British Prime Minister, David Cameron, was determined to have the BVI and the Cayman… – Continue reading
The federal government will be seeking the opposition’s support for new laws that crack down on tax-dodging multinationals but Labor looks to be on its own pursuing Malcolm Turnbull over his offshore investments. There are hopes that the four-day sitting of the lower house starting on Monday will also bring… – Continue reading
The central government is stepping up its anti-graft drive by cracking down on illegal lending and money-laundering operations in a bid to prevent outbound flows of stolen assets. The Ministry of Public Security says “black banks” and illegal currency exchanges have facilitated the flights of a number of former government… – Continue reading
The following editorial appears in Friday’s Yomiuri Shimbun: International cooperation must be bolstered to close tax loopholes that can be exploited by multinational business corporations. The Group of 20 major economies and the Organization for Economic Cooperation and Development have worked out new international taxation rules to clamp down on… – Continue reading
Finance professionals will play a key role in dealing with changes brought about by a global project to combat corporate tax avoidance. A GLOBAL effort to tackle the problem of companies that attempt to reduce their tax burden by exploiting loopholes in tax rules will impact the way global businesses… – Continue reading
Starbucks Corp. and a Fiat Chrysler Automobiles NV unit are set to be first in the firing line as European Union regulators issue a series of rulings over tax breaks for global companies, including Apple Inc. The EU may issue decisions against Starbucks and Fiat as soon as next week… – Continue reading
Bangladesh is set to sign an agreement with Bhutan to avoid double taxation to boost investments, trade and facilitate information exchange between the two Saarc nations, the National Board of Revenue said in a statement. A team led by NBR Chairman Md Nojibur Rahman is now in Thimpu to take… – Continue reading
Chinese measures to steady its rocky markets are putting the future of the offshore yuan bond market at risk, prompting record redemptions from so-called dim-sum debt funds and choking new issuance, reports Reuters. Just a few years ago investors were lining up to buy these offshore bonds denominated in a… – Continue reading
Authorities in China have been doubling their efforts since April to track down illicit assets exported overseas. The People’s Bank of China, the Ministry of Public Security, the Supreme People’s Court, the Supreme People’s Procuratorate, and the State Administration of Foreign Exchange have been working together in this operation. Chinese… – Continue reading
Swiss firms have bagged major business from global brands such as GSK, Novartis and Crédit Suisse this year, while their Asia ventures have come good. The legal minds behind the Glaxo-SmithKline and Novartis asset swap, global banking investigations, Schaeffler’s €2bn high yield bond issuance and Dufry’s £1.05bn takeover of Nuance… – Continue reading
China has pledged to promote a plan to stop multinational companies from avoiding taxes by shifting profits to destinations with lower corporate tax requirements. The plan was endorsed by G20 finance ministers Friday during the annual meetings of the World Bank and the International Monetary Fund in Lima, Peru, reports… – Continue reading
During Sushma Swaraj’s visit, the nations also sign pacts on avoidance of double taxation and tax information exchange New Delhi: India and the Maldives have drawn up a new blueprint for bilateral ties that included closer economic and defence cooperation, pointing to a thaw in the relations following the Maldives’… – Continue reading
Both internal and external factors threaten politics, economics Hong Kong’s run of good luck is running out. One obvious sign is the increasing interference of Beijing in its domestic affairs, most recently using tame Chief Executive C.Y. Leung and a clique of yes-men to interfere in a senior academic appointment… – Continue reading
A former head of Australia’s anti-money-laundering agency wants tough rules introduced to prevent the country from becoming a safe haven for foreign corrupt funds. Despite credible warnings that large volumes of illicit money leaving China are being laundered in Australia, an investigation by ABC programme Four Corners has found no… – Continue reading
The Federal Board of Revenue (FBR) will grant income tax exemption on interest payment to ICBC bank of China regarding coal-fired energy projects, subject to agreement and signing of third protocol between Pakistan and China under avoidance of double taxation treaty. Sources told Business Recorder here on Friday that the… – Continue reading
To solve the problem of the haze afflicting Singapore, Indonesia and Malaysia, extraterritorial action is needed to quench the forest fires in Indonesia that are generating the haze. A cross-border solution is a necessary answer even if it raises questions of national sovereignty. The Singapore Government should implement laws that… – Continue reading
DBS Bank’s Chinese unit has been chosen to be among the first group of banks to test a new international payment system that promises faster transactions for businesses using the yuan. The Cross-border International Payment System (CIPS), launched yesterday, is seen as a big step towards making the yuan a… – Continue reading
A quarter of companies say they won’t meet the first deadline proposed by the Organisation of Economic Co-operation and Development (OECD) in its base erosion and profit shifting (BEPS) action plan, reports Economia. Globally, 74 per cent said they will complete their country-by-country analysis by the first due date, December… – Continue reading
Uber and Airbnb have revealed in submissions to a federal inquiry that they route profit through companies in the Netherlands and Ireland, where taxes are lower. Uber and Airbnb have told a Senate corporate tax avoidance inquiry that while they comply with Australian tax laws, their Australian operations merely provide… – Continue reading
Stating that a series of measures taken during the 15 months of BJP rule has restored credibility of India in eyes of global players, he said the government was speeding up regulatory clearances, reducing licensing requirements in the defence sector and making tax policy more consistent. “One of the great… – Continue reading
SEJONG, Oct. 5 (Yonhap) — Finance ministers of South Korea, China and Japan will hold talks to coordinate policies on the sidelines of the Group of 20, International Monetary Fund (IMF) and World Bank meetings in Peru this week, the government said Monday. The finance ministry said the meeting, scheduled… – Continue reading
The OECD’s measures to reform international corporate tax systems will cause Ireland fewer problems than forecast, but for eurozone countries it will be just the beginning of greater and more detailed change. Following two years of constant meetings between tax experts from its 34 country members, the Paris-based body releases… – Continue reading
On Monday (5 Oct) the Paris-based Organisation for Economic Cooperation and Development (OECD) will present its final Base Erosion and Profit Shifting (Beps) project corporate tax reform proposals and on Tuesday the Ecofin council of EU finance ministers, is expected to agree on the exchange of tax rulings between member… – Continue reading
European Commission list identifies the city as one of 30 non-cooperative tax jurisdictions, reports the South China Morning Post. The European Commission is likely to remove Hong Kong from its list of top 30 tax havens, according to a source familiar with the situation. The source, who cannot be identified,… – Continue reading
BEIJING/SHANGHAI (Reuters) – China has halved sales tax on small cars to revive growth in the world’s biggest automobile market, a move likely to provide a limited boost to carmakers including Volkswagen AG (VOWG_p.DE), the company embroiled in a global diesel emissions scandal. The cut in sales tax on cars… – Continue reading
China will be at the forefront of embracing the emerging international tax rules to combat base erosion and profit shifting, known as BEPS, as it shifts toward becoming a “capital-export” country, said senior EY executives. “China is not going to be a laggard. A lot of small developing countries are… – Continue reading
China’s State Administration of Taxation (SAT) has been busy during recent months pushing ahead with its own plans to update/revise a series of domestic tax laws and regulations as well as Sino-foreign tax treaties. The most prominent of these changes is a proposed update of Circular Guoshuifa 2009 No.2 (Circular… – Continue reading
Bloomberg BNA’s first transfer pricing conference in Asia—the latest offering in our Global Transfer Pricing Conference series with Baker & McKenzie—could not have been better timed. The day the conference opened, Sept. 17, China issued a revised draft circular on transfer pricing that completely changed the game for multinational companies… – Continue reading
Myanmar plans to introduce more laws and regulations to increase its tax income over the coming years, sources said. The Internal Revenue Department (IRD) currently sets polices under the Myanmar Tax Law and the Union Tax Law. Sources at the IRD said they will issue further notifications, if required, to… – Continue reading
Floor traders work during afternoon trading at the Hong Kong Stock Exchange in this November 6, 2013 file photo. Hong Kong is working night and day to launch an initiative that will let global investors trade Chinese stocks from the city for the first time and secure the former British… – Continue reading
SHANGHAI (Reuters) – China’s yuan weakened on Wednesday as the dollar strengthened in global markets and after activity in the country’s factory sector shrank unexpectedly to a 6-1/2-year low in September. Offshore yuan, however, trimmed earlier losses due to intervention from state banks, trade sources told Reuters. Before the market… – Continue reading
Foreign institutional investors (FIIs) on Monday sought simplified requirements for making investments in India, during their meeting with Finance Minister Arun Jaitley. Jaitley, who has wrapped up his two-day visit here, highlighted recent initiatives taken by the government to attract investments and told them, efforts were being taken to further… – Continue reading
Development Goals (SDGs) but poorer countries should exercise caution when borrowing money, Gail Hurley, a development finance expert with the UN Development Program (UNDP), told Xinhua. “There’s a lot more finance available now—public and private, domestic and international — (but) a lot of it is loan finance, so we do… – Continue reading
In 28 August 2015, the Chinese State Administration of Taxation issued an Announcement for Granting Tax Treaty benefits to non-residents. The Announcement proposes a new system for granting tax treaty benefits where there pre-approval of the tax authorities is no longer required for withholding tax agents to apply reduced tax… – Continue reading
Industry welcomes move by Singapore’s financial regulatory authority to go public with tax criticism of ARFP passport scheme. They say it could force Australia and Korea into a corner. Industry figures have welcomed a move by the Monetary Authority of Singapore (MAS) to go public with the reasons it declined… – Continue reading
China’s State Administration of Taxation on 17 September 2015 released a discussion draft of proposed guidance relating to “special tax adjustments”—including those concerning transfer pricing—for public consultation. It is anticipated that this guidance could be finalized by the end of 2015, and once final, would replace the existing transfer pricing… – Continue reading
