Mauritius and Singapore are both examples of countries with Double Taxation Avoidance Agreements (DTAAs) with India, meaning dividends from corporations that are paid out to shareholders are not taxed further, having already been taxed at the corporate level. This legislation has meant that such countries have been used to “round-trip”… – Continue reading
The parties to licenses of technology should consider tax issues with such licenses. The following is a summary of some of the tax implications that may arise with regard to technology licenses. Withholding Taxes. Where a license crosses an international border, withholding taxes may apply to any royalties payable. Under… – Continue reading
Group of wealthy expats facing prison for failing to declare property purchases in Marbella A NETWORK of foreign businessmen and lawyers are facing 48 years in prison for tax evasion on the Costa del Sol. The group are to go on trial for using offshore companies to avoid paying taxes… – Continue reading
A federal judge demanded to know more about HSBC Holdings Plc’s compliance with its trade sanctions and anti-money-laundering deal with the U.S. after a monitor said the bank was “too slow” to mend its ways. U.S. District Judge John Gleeson in Brooklyn, New York, ordered the government to file a… – Continue reading
Authorities in Milan said on Monday that they have detained a former Swiss banker for allegedly helping wealthy Italian clients evade taxes and launder large sums of money, including the proceeds of embezzlement. Italian financial police (Guardia di Finanza) from Varese northwest of Milan said that Filippo Dollfus, a former… – Continue reading
Indonesia is introducing a tax amnesty this month to boost revenues as slowing economic growth puts pressure on the government to increase spending, Finance Minister Bambang Brodjonegoro said. The amnesty will last until the end of the year and allows citizens to avoid penalties if they pay five years of… – Continue reading
The patent box regime, adopted at the end of 2014 with Italy’s Stability Law, was recently modified by the Investment Compact Decree and implemented into law at the end of March 2015. A distinctive feature of the Italian regime is that the measure now also covers trademarks and designs. A… – Continue reading
The Tax Foundation released its inaugural “International Tax Competitiveness Index” (ITCI) on September 15th, 2014. The United States was ranked an abysmal 32nd out of the 34 OECD member countries for the year 2014. (See accompanying Table 1.) The European welfare states such as Norway, Sweden and Denmark, with their… – Continue reading
Bermuda is listed as 14th in a survey of the world’s biggest tax havens, by a US activist non-profit organisation. The Global Citizen organisation placed the Island just ahead of Guernsey in the Channel Islands to round its 15-strong list — well behind the US, UK and number one spot… – Continue reading
With a new candidate seemingly entering the race for president each week, national attention is understandably focused on American politics. But while Americans spare little mind for the goings-on of international organizations, their activities not only have significant impact around the world, but could also play a role in the… – Continue reading
NEW DELHI:Money makes the mare go, and it seems to have gone. From 2012 through 2014, overseas investment by Indians grew by an astonishing 700 per cent in the British Virgin Islands, a favourite tax haven for biz pashas with big bucks. After Narendra Modi — whose war was to… – Continue reading
The Australian Taxation Office (ATO) has given the Senate inquiry into tax avoidance a blueprint on how to properly calculate the amount of tax multinationals should be paying each year on their Australian operations. A critical new methodology provided to the inquiry by the ATO, and seen by the ABC,… – Continue reading
Morgan Stanley veteran and former managing director Sridhar Sivaram told NDTV that the government’s decision to levy the contentious minimum alternative tax (MAT) retrospectively on foreign institutional investors (FII) for capital gains made during previous years, poses a hindrance to foreign fund flow into the country. “It’s very tough to… – Continue reading
The nation needs to talk about tax. That’s not a new proposition. Every incoming government seems to think it’s a good idea to conduct endless reviews, and the tax system is often at the top of the list. John Howard did it and actually came up with worthwhile reform with… – Continue reading
Monrovia – Chinese Businessman, Shun Feng, held on charges of tax evasion, economic sabotage and smuggling by the West Point Magisterial Court was Friday cleared of the charges, but warned by the court not to repeat the act. The five-year penalty that follows the crimes was also dropped by the… – Continue reading
Monsanto announced that it has resumed possible merger talks with Syngenta, a Swiss-based agricultural chemical giant. The pair explored a merger in early 2014 before deciding against it. When the 2014 talks were going on, one of the principle attractions for the deal was the possibility of Monsanto buying Syngenta… – Continue reading
On April 21, 2015, the U.S. Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”) issued a Geographic Targeting Order (“GTO”) lowering reporting thresholds and triggering additional recordkeeping requirements for certain financial transactions in a move that is likely to have effects far beyond the 700 Miami-based electronics exporters that are specifically… – Continue reading
On 21 April 2015, the Danish Parliament adopted a bill, which sets out to deal with certain potential abuses recently encountered by the tax authorities as well as the Danish enactment of the general international anti-abuse initiatives currently considered at EU and OECD level. The new Danish GAAR will take… – Continue reading
Chapter 3 of the Internal Revenue Code requires payors (and recipients) of certain types of U.S. source income to withhold tax if the beneficial owner or recipient is a non-U.S. person for income tax purposes. Chapter 4 also imposes similar withholding under FATCA for payments to foreign financial institutions and… – Continue reading
Money makes the mare go, and it seems to have gone. From 2012 through 2014, overseas investment by Indians grew by an astonishing 700 per cent in the British Virgin Islands, a favourite tax haven for the biz pashas with the big bucks. Inexplicable, after Narendra Modi—whose war was to… – Continue reading
A Netherlands-based company threatened to sue the South Korean government for inflicting more than 183 billion won in losses through double taxation during its sale of Hyundai Oilbank shares five years ago, it was revealed Saturday. If a lawsuit is filed, it will mark the second time for South Korea… – Continue reading
MADRID (Reuters) – Herve Falciani, a former HSBC employee who leaked information on the bank’s clients and tax situation, told Spanish newspaper El Mundo he had knowledge of other cases and could act again, adding his “work was not done”. Falciani previously said that media leaks on HSBC accounts held… – Continue reading
NEW DELHI:Investment made by individuals or other entities may not have broken the law or acted improperly to hide details, details of investments made in famous tax haven countries or countries with little to offer besides registration of mail box entities are indeed intriguing. For example, total investment to Switzerland… – Continue reading
Warren Buffett, the billionaire chairman of Berkshire Hathaway Inc., said he expects a slump in reinsurance results in the coming decade as investors enter the market. “It’s a business whose prospects have turned for the worse and there’s not much we can do about it,” Buffett said Saturday at his… – Continue reading
Bradley Birkenfeld, the former UBS employee who helped bring down Swiss banking secrecy, has explained to Swiss public television SRF why he blew the whistle on the bank’s tax evasion violations in the United States. Birkenfeld claims he was pushed into the action by the discovery of an internal document… – Continue reading
Taipei, May 2 (CNA) Taiwan has reached an agreement with Canada on the avoidance of double taxation at an annual bilateral economic consultation, the Ministry of Economic Affairs (MOEA) said Saturday. The double taxation avoidance pact, which will be signed very soon, will be favorable to Taiwan businesses because it… – Continue reading
A year after the signing of the intergovernmental agreement regarding FATCA (Foreign Account Tax Compliance Act) between Luxembourg and the United States, the bill of law was finally introduced on 27 March 2015 to the Luxembourg Parliament. The bill of law relates to the exchange of tax information between the… – Continue reading
HM Revenue & Customs will publish a new list of reference numbers for tax avoidance schemes which may be subject to accelerated payment notices. The tax office said it would issue the list after the General Election on 7 May, marking further efforts by the UK government to clampdown on… – Continue reading
Warning corporates not to take unfair advantage of the liberalised tax environment, Finance Minister Arun Jaitley on Friday said the world is moving towards a more transparent regime that would remove the veil of secrecy from unlawful transactions. “I think, for every assessee, every person in the commercial business also,… – Continue reading
MUMBAI: Five Foreign Portfolio Investors (FPIs) on Thursday mainly from the US and the UK have dragged the Indian government and the Income Tax department to the court for levying Minimum Alternate Tax (MAT) on their capital gains for the year 2011-12. The five FPIs — National Westminster Bank Plc,… – Continue reading
With its enviable reputation in offshore trusts, pensions and insurance, Bermuda is an ideal jurisdiction for employers to establish international pension and employee benefit plans (IPPs). Global organisations may consider establishing Bermuda IPPs for employees who work outside their home country or the home country of both the employees and… – Continue reading
The debate around transparency, information exchange and beneficial ownership continues to evolve and has demanded a real focus for those working in International Finance Centres (IFCs), which frequently find themselves in the frame when it comes to ill-considered accusations relating to secrecy and illicit financial flows. In fact, Jersey and… – Continue reading
In October 2013 Minister Michael Noonan presented Budget 2014. The Minister’s budget speech indicated that one of the primary aims of that Budget was to bring Ireland back to a position where it could fund itself fully through the international markets in a sustainable way, at competitive interest rates. It… – Continue reading
The National Accountability Bureau (NAB) has forwarded a novel set of recommendations to the prime minister proposing establishment of the Pakistan Revenue Regulatory Authority (PRRA) for imposing taxes while limiting the role of the Federal Board of Revenue (FBR) to tax collection. The prevention committee on tax evasion recommendations were… – Continue reading
HM Revenue & Customs is facing a possible legal challenge in the form of judicial review, over the use of a tax amnesty to exonerate hundreds of suspected tax evaders whose names appeared on documents leaked from HSBC in Geneva, reports the International Business Times. Campaign group Avaaz made clear… – Continue reading
Bradley Birkenfeld was released from federal prison in August 2012 after serving 2½ years for his role as a Swiss banker hiding millions of dollars for wealthy American clients. Five weeks later, he found himself in the kitchen of a small rental house in Raymond, New Hampshire. At that moment,… – Continue reading
A committee set up by the finance ministry to address industry’s tax concerns has invited trade and industry for talks on the issue. Experts, however, say Finance Minister Arun Jaitley should have in his reply to a debate on the Finance Bill 2015 provided clarity on minimum alternate tax (MAT)… – Continue reading
Interpreting corporate tax data shouldn’t be like playing “Where’s Waldo.” Analysts seeking to understand whether big corporations are engaged in tax-avoidance hijinks should be aided, not thwarted, by the information that companies make available in their annual financial reports. A long-brewing effort to require country-by-country (CbC) reporting of corporate income… – Continue reading
Iran and the Czech Republic have signed an agreement which allows the two countries’ companies to avoid paying double tax on their trade activities. The agreement was signed on Thursday by Iran’s Minister of Economic Affairs and Finance Ali Tayyebnia and his Czech counterpart, Andrej Babiš, in the Czech capital… – Continue reading
HM Revenue and Customs (HMRC) has intensified its clampdown on suspected tax avoidance amongst High Net Worth Individuals (HNWIs) through its ‘Rising Stars’ unit, international law firm Pinsent Masons said. The ‘Rising Stars’ team was created in 2012 to investigate the tax affairs of individuals with rapidly rising incomes and… – Continue reading
Move to enable fund managers to locate themselves in India New Delhi, May 1: The Finance Minister Arun Jaitley has sweetened the income tax deal for certain offshore investment funds, boosting the chances of their fund managers to be based out of India. Sovereign wealth funds and investment funds promoted… – Continue reading
During 2014, Barbados again produced strong evidence of the underlying strength of its financial system. All of the financial stability indicators and stress tests performed for the financial system strongly indicate that the system remains stable with the capacity to withstand a wide variety of severe economic shocks. It is… – Continue reading
Over vodka martinis at Scott’s of Mayfair, James Bond might raise a quizzical eyebrow. The lease on 14-25 Mount Street — home of Ian Fleming’s favourite London haunt — has been put on the market by its wealthy owners at a rumoured £110 million. But the puzzle is, who are… – Continue reading
The sandwiches and coffee were standard fare at HSBC’s annual meeting. But it took mere minutes for political red herrings to be added to the menu. Take the bank’s confirmation it is reviewing its headquarters’ location. Labour’s attempt to blame HSBC’s action on a Conservative-inspired EU referendum was misguided, but… – Continue reading
In the spotlight for tax practices in Australia, Apple has raised a flag about the potential cost if it is required to pay past taxes to Ireland as part of a European Commission investigation. Apple has raised a flag about the potential cost if the company is required to pay… – Continue reading
[HONG KONG] Foreign interest is building in China’s Panda bond market ahead of potential rule changes that bankers expect to encourage more offerings. Monetary easing from the People’s Bank of China have dragged onshore renminbi bond yields below their offshore equivalents, raising the appeal of so-called Panda bonds to foreign… – Continue reading
The game of cat and mouse between tax authorities and citizens has been played for a very long time. People have been dodging taxes for centuries. But the more nuanced and sophisticated game of avoiding tax is a more recent phenomenon. Indeed, when it comes to tax avoidance the game… – Continue reading
FORMER treasurer Peter Costello says changing or ending tax credits for shareholders who get dividends would see investors send their money offshore. The financial system inquiry (FSI) last year questioned the wisdom of dividend imputations, where shareholders get a tax credit for the profits a firm shares with investors via… – Continue reading
Many of London’s wealthy are preparing to leave the U.K. amid signs Labour Party leader Ed Miliband may become prime minister after the May 7 general election, according to luxury-hotel operator Rocco Forte. “We haven’t seen such a left-wing manifesto since the 60s and 70s,” he said in an interview… – Continue reading
Singapore is not a tax haven, it’s a value-adding hub. That is the claim of the island nation’s Economic Development Board, the Singaporean government agency that’s been charged with attracting business and investment. It has disputed recent claims at the Senate inquiry into corporate tax avoidance that it’s being used… – Continue reading
