Fed decision due after December 15-16 meeting Hong Kong and mainland Chinese stocks both closed significantly higher on Thursday, adding to a global stock rally after minutes from the US Federal Reserve’s October meeting sent a stronger signal about a possible December rate increase. The Hang Seng Index advanced 1.4… – Continue reading
Latest developments under the Base Erosion and Profit Shifting (BEPS) initiative of the Organisation for Economic Co-operation and Development (OECD) was one of the key points of a recent four-day visit by KPMG’s global leader for Transfer Pricing Services Sean Foley to Vietnam. He shared the issue with Vietnam’s General… – Continue reading
On November 18, 2015 the Swiss Federal Council adopted a dispatch on the introduction of the automatic exchange of information (AEOI) in tax matters with Australia and submitted the dispatch to the Swiss Parliament for approval. The Federal Decree on the introduction of the AEOI with Australia was the subject… – Continue reading
Approximately 40 per cent of individuals who have used the UK’s Liechtenstein Disclosure Facility (LDF) were already being investigated by HM Revenue and Customs (HMRC), according to international law firm Pinsent Masons, reports Tax News. The LDF was launched in 2009 and will close for new registrations on December 31,… – Continue reading
If statistics are anything to go by, today India is the world’s fastest growing economy at 7.3% in 2015, outstripping the global average of 3.1%. With a new government in the centre, we do seem to be riding high on the growth trajectory. The Modi government has certainly done its… – Continue reading
Baku, Fineko/abc.az. Azerbaijan and the U.S. are likely to sign another agreement in support of the Foreign Account Tax Compliance Act (FATCA). Deputy Taxes Minister Natig Amirov has stated that the general agreement on cooperation has already been ratified by the head of state. “Work is underway over the signing… – Continue reading
BRUNO Manser Funds (BMF) is investigating an art painting donated to the Art Gallery of South Australia by a a company linked to Abdul Taib Mahmud, a Malaysian politician who ruled Sarawak for over three decades. The conservation group is calling on the art gallery to disclose the full value… – Continue reading
Online accommodation platform, Airbnb, appeared before the Senate Inqury into the tax avoidance of multinational companies on Wednesday, with the ANZ manager arguing the startup brings a significant amount of money into the economy. Airbnb has found itself in the spotlight on Wednesday, when a Senate inquiry into the tax… – Continue reading
Finnish companies continue to take advantage of legal tax planning to shelter their profits from taxation. According to Yle’s Ajankohtainen kakkonen current affairs programme, state-owned firms are among those that have been dragging their feet on reporting income from their foreign subsidiaries. The European Union is making an effort to… – Continue reading
Uber ANZ director of public policy appeared before the Senate inquiry into the tax avoidance of multinational companies on Wednesday, focusing on tax requirements of an individual driver, rather than the company. A Senate inquiry into the tax avoidance of multinational companies continued in Sydney on Wednesday, when Uber appeared… – Continue reading
Markets finished close to unchanged on Tuesday, but these stocks soared. Find out why. After big gains to start the week, the stock market treaded water on Tuesday, with most major benchmarks finishing close to the unchanged level. Yet for Airgas (NYSE:ARG), Nuance Communications (NASDAQ:NUAN), and Syngenta (NYSE:SYT), the day… – Continue reading
Chevron, the US oil giant behind Australia’s biggest liquefied natural gas project, has been hit with claims its tax affairs are a “rort”. We have spent a year trying to find Australia’s biggest tax dodger and we’ve found it. It’s Chevron. Sam Dastyari But the company insists it is the… – Continue reading
18 November 2015 – The Group of 20 (G20) leaders have called for more collective action to achieve strong, sustainable and balanced growth that can be universally beneficial. In a communique issued at the end of the summit, the leaders agreed that not only do they have to do more… – Continue reading
MUMBAI: In an order that may benefit multinational and Indian companies that are tied down in transfer pricing disputes with the revenue department, the Income Tax Appellate Tribunal has held that officers must “apply their mind” before firing off tax demands. Assessment officers (AOs) as well as commissioners of the… – Continue reading
Sign protocol to avoid double taxation Observer Report Wednesday, November 18, 2015 – Tashkent—Prime Minister Nawaz Sharif has said his government is keen to enhance connectivity in the region and wants to increase cooperation with Uzbekistan. In a meeting with Uzbek President Islam Karimov in Tashkent on Tuesday, Nawaz said… – Continue reading
EY believes the key to a robust tax system is striking the right balance between enabling and mandating A report by the Big Four firm explores whether proposals outlined in HMRC’s consultation document on “Improving large business tax compliance” has led the UK far away from the robust but competitive… – Continue reading
Perhaps in theory there are ways to fix tax avoidance, but they aren’t politically feasible. Libertarian anarchists used to say “taxation is theft.” New research by economist Gabriel Zucman suggests that there is some truth to this—when tax havens are taken into consideration. In his new book The Hidden Wealth… – Continue reading
The new tax treaty signed between Australia and Germany on 12 November 2015 is the first tax treaty Australia has signed that comprehensively incorporates the proposals in the OECD base erosion and profit shifting (BEPS) final recommendations. Some notable BEPS-related changes in the new Australia and Germany treaty include: The… – Continue reading
WASHINGTON—The U.S. Treasury Department will release new “targeted guidance” this week designed to reduce the tax benefits available to U.S. companies that move their tax addresses overseas. Treasury Secretary Jack Lew informed lawmakers of the coming announcement in a letter on Wednesday, which provided no details on its intentions. The… – Continue reading
American Innovation Matters (AIM), a coalition of companies that includes Cisco, Boeing, Intel, Oracle and Facebook, has released a statement pushing for the introduction of a US patent box, or an “innovation box” as it is known in the United States. The statement looks at the endorsement on November 16… – Continue reading
The Isle of Man’s role as an offshore finance centre will come under the spotlight on television following a Welsh town’s experiment in how to avoid paying UK tax. Independent traders in Crickhowell, led by the salmon smokery, the local coffee shop, the adventure clothes shop, the optician, the book… – Continue reading
Google is said to have evaded paying an estimated $1.3 billion earned from selling apps in Korea based on the argument that their server is based in Ireland. The so called ‘Google Tax’, also known as the Base Erosion & Profit Shifting (BEPS) regulation, has been adopted this week by… – Continue reading
Hong Kong (HKSAR) – The Financial Secretary, Mr John C Tsang, on behalf of the Government of the Hong Kong Special Administrative Region, today (November 18), signed in Bucharest an agreement on the avoidance of double taxation with Romania. Romania’s State Secretary for Public Finance, Mr Attila Gy?rgy, signed on… – Continue reading
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for the protocol amending the Agreement between India and Kuwait for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. The Protocol provides for internationally accepted standards… – Continue reading
Offshore tax havens came under fire after the global financial crisis in 2008. Front and center among the countries calling for transparency was the U.S., which made a stand against Switzerland in particular, by demanding release of the names of ultra-rich account holders. So it might surprise you to learn… – Continue reading
UPDATE 12.45pm: Bermuda has a company tax rate of zero. In Ireland its 12.5 per cent and, with the Netherlands, has given the world the term “Double Irish Dutch Sandwich”. But a trio of prominent Australian business leaders have denied the tax links of their companies to the three offshore… – Continue reading
TAIPEI — Japan and Taiwan will sign a bilateral tax treaty aimed at improving the flow of people and investment between the two economies, sources familiar with the matter said on Wednesday. The treaty will reduce or eliminate taxes on dividends repatriated from companies’ overseas branches and help avoid issues… – Continue reading
BearingPoint’s FiTAX catches on while a FATCA critic says that more Americans are renouncing their citizenship because of the controversial tax law. While controversy swirls around the Foreign Account Tax Compliance Act (FATCA), management and technology consultancy BearingPoint reports that between March and August 2015, more than 2,000 financial institutions… – Continue reading
Policies on perks, more bilateral pacts can help generate funds for growth: Accounting firm Singapore’s tax system can be improved to ensure the country can generate the funds needed for long-term growth and development, according to a white paper from accounting giant PwC yesterday. It called for policies that ensure… – Continue reading
As early adopters of the new global standard for the automatic exchange of information; Jersey and Spain signed a tax information exchange agreement (TIEA) on Tuesday. The agreement was signed at the Spanish Embassy in London by Jersey’s assistant chief minister, senator Philip Ozouf, who said: “We attach great importance… – Continue reading
Tax Commissioner Chris Jordan says multinationals are already approaching the Australian Taxation Office to negotiate before the Turnbull government’s tougher anti-avoidance laws take effect in January, and he expects the office to reap $1.1 billion from them. We at the ATO acknowledge Australia needs investment by foreign companies in infrastructure… – Continue reading
Global tax is set to face the biggest shake up ever that will affect every saver and investor with accounts in any of the world’s major financial centres. Financial firms and governments are readying to start the Common Reporting Standard (CRS) from January 1, 2016. CRS is a souped up… – Continue reading
In his seminal 1987 work Crisis and Leviathan, economic historian Robert Higgs traces the pattern of government growth as a response to catastrophic events. The federal government, in particular, grows over time through a “ratcheting up” effect, as politicians respond to disasters and catastrophes with calls to “do something,” often… – Continue reading
PwC Australia Australian Taxation Office New or updated materials on ATO website, including: Decision impact statement on McGrouther & Anor v Commissioner of Taxation case concerning whether a taxpayer can waive or withdraw a notice given to the Commissioner under s14ZYA(2) of the Taxation Administration Act 1953 (requiring the Commissioner… – Continue reading
KPMG in Kuwait discusses plans to implement a tax on business profits, changes to the Kuwait tax authority’s (KTA) approach to deemed permanent establishments, and Kuwait’s shift away from tax holidays toward tax credits to attract foreign direct investment. TAXATION OF COMMERCIAL PROFITS Based on recent local media reports1, KPMG… – Continue reading
One of the amendments proposed in the Taxation Laws Amendment Bill (TLAB), relates to the revision of the definition of “immovable property.” This definition is significant when considering the potential tax liability of non-resident persons, especially when it comes to capital gains tax (CGT). Paragraph 2 of the Eighth Schedule… – Continue reading
Under Indian foreign exchange regulations, Indian companies having foreign investment participation are generally categorised either as Indian owned and controlled company (IOCC), or foreign owned or controlled company (FOCC). An Indian company in such cases is considered as IOCC where they are owned and controlled by resident Indian citizens and/or… – Continue reading
Globally, taxpayers are becoming more interdependent, and engage in cross-border financial activities with more regularity. With this, comes the need for enhanced co-operation and understanding across countries on issues such as tax administration and transparency, to curb tax evasion and ensure a fair allocation of taxes to tax jurisdictions. “The… – Continue reading
MEPs grilled eleven multinational companies on their corporate tax practices in a five-hour debate with the Special Committee on Tax Rulings on Monday. These companies had declined the committee’s first invitation to appear before it, but later changed their minds and accepted its last chance invitation. Of the 13 original… – Continue reading
Notwithstanding the NDA’s election promise to end tax terrorism the dynamics on the ground belie easy fixes The National Democratic Alliance (NDA) government is seeking to prepare a road map to reduce existing tax litigation and look into increasing pecuniary threshold limits to discourage tax departments from launching new cases…. – Continue reading
Brussels – Google and Facebook were among US companies facing questions on Monday from European Union lawmakers about their tax-reducing techniques, a month after regional antitrust regulators raised the stakes by ordering Starbucks and a Fiat Chrysler Automobiles NV unit to repay millions of euros in back taxes. The queries… – Continue reading
Fund houses and R&T agents have already started alerting investors to furnish Fatca and KYC details Mutual fund (MF) investors have to submit declarations to their fund houses to comply with the Foreign Account Tax Compliance Act (Fatca), which was passed in the US in 2010 (read more on this… – Continue reading
EXCLUSIVE A federal tax designed to share profits from the oil and gas sector with the Australian public is barely raising a single extra dollar despite the industry’s transformation from a $5 billion concern a decade ago to a $60 billion export powerhouse. With Australia poised to become the world’s… – Continue reading
THE liquidation of Kingdom Bank Africa Limited (KBAL) Botswana has been derailed after creditors declined to give the liquidator, Max Marinelli, autonomous authority to sell the assets of the defunct offshore bank. KBAL depositors and debtors are predominantly in Zimbabwe where the bank originates. In a seven-hour long heated meeting… – Continue reading
BY the very criteria set in the United States (US) by the Multistate Tax Commission (MTC), several states in the US are “tax havens”. But they have not been named in the legislation passed by the legislatures of Oregon, Montana and others. Among the MTC criteria for determining a tax… – Continue reading
Some people think popular furniture store IKEA is being naughty, and not paying its proper share of tax in Australia. The franchise is a behemoth, both literally in terms of store size and figuratively in that it collected a US$5 billion profit for the 2014 financial year. A community action… – Continue reading
A Ministry of Finance decree published on 11 November 2015 provides follow-up guidance concerning advanced tax rulings issued by the Dutch tax administration. BACKGROUND Adopted in July 2014, an amendment to the EU Parent-Subsidiary Directive addresses mismatches resulting from hybrid financing, and involves the inclusion of an anti-hybrid provision. Under… – Continue reading
JAKARTA (REUTERS)- Indonesia is considering offering tax incentives for employees as part of the country’s current efforts to spur economic growth through changes to its tax regime, Coordinating Minister for Economics Darmin Nasution said on Tuesday (Nov 17). The government of South-east Asia’s largest economy has introduced several other incentives… – Continue reading
President Park Geun-hye called Monday for a careful adjustment of monetary policies of advanced countries amid lingering worries over a potential Fed rate hike. Last month, the U.S. Federal Reserve kept interest rates at near zero due to global headwinds but suggested that it could raise rates by the end… – Continue reading
HM Revenue and Customs (HMRC) has published a brief on how the UK will implement the G20’s High Level Principles on Beneficial Ownership Transparency. The brief explains that the UK will require companies to report beneficial ownership information to a central register. This register will be publicly accessible and is… – Continue reading
