Feb. 26 (Bloomberg) — Credit Suisse Group AG moved to blame a small number of employees after a U.S. Senate report said the Swiss lender helped clients hide as much as $10 billion of assets from tax authorities. “Some Swiss-based private bankers went to great lengths to disguise their bad… – Continue reading
A resident is defined in section 1 of the Income Tax Act No. 58 of 1962 (“the Act”). The definition includes a place of effective management test as one of the tests to determine the residence of a company. In terms of the definition a company that has its place of effective… – Continue reading
American Citizens Abroad (ACA) has provided testimony to the Senate Homeland Security and Governmental Affairs Permanent Investigations Subcommittee following its recent hearing on offshore tax evasion, and has recommended that the United States should implement a residence-based tax (RBT) system to avoid penalizing American expatriates. The ACA, as the principal… – Continue reading
NASSAU, The Bahamas – The Commonwealth of The Bahamas and the Czech Republic entered into an Agreement on the Exchange of Information on Tax Matters during a signing ceremony at the Ministry of Foreign Affairs on Thursday, March 6, 2014. Minister of State for Finance Michael Halkitis signed for The… – Continue reading
Bayern Munich president Uli Hoeness, once one of Germany’s most admired managers, goes on trial on Monday charged with tax evasion in a case that has shocked the nation and changed attitudes towards paying taxes. Hoeness, 62, who helped turn Bayern Munich into one of the world’s most respected clubs and won… – Continue reading
The quest of African countries to carry out economic stability and transformation is threatened by illicit financial outflows through tax evasion and avoidance, a UN expert observed here on Thursday. He said the draining of tax revenues and scarce foreign exchange resources stifled growth and socio-economic development and weakened governance…. – Continue reading
The Australian press is incandescent with rage after it discovered that the fruit themed cargo cult Apple has worked out a way of avoiding giving billions to its taxman. Apple is already in hot water for overcharging Australians for its shiny toys and now it seems that it is refusing to pay tax…. – Continue reading
Government forecasts for the amount it can recoup through closing tax loopholes are vulnerable to “great uncertainty”, MPs have said. The Treasury Select Committee suggests these projections should be limited when drawing up budgets. Reporting on last year’s Autumn Statement, the committee said projections for some previous schemes had been… – Continue reading
Albania Government approved a new law aiming to ban money transfers between related companies in order to collect more corporate profit tax, and to fight tax avoidance from big corporations. The law, designed by International Financial Corporation, was approved by the government this week. Transfer pricing is used by companies… – Continue reading
(Reuters) – Britain’s budget forecasts are in danger of becoming too reliant on hard-to-predict windfalls from the fight against tax avoidance, lawmakers said on Saturday. The government has projected that by tightening its rules to reduce legal tax avoidance the state could net 6.8 billion pounds ($11.37 billion) in new… – Continue reading
(Reuters) – Amazon’s tax affairs could come under more scrutiny in Britain, tax experts said, after a judge questioned whether it really was organized in the tax efficient way it said it was. The ruling comes as big technology groups, including Amazon, face increasing scrutiny in Britain over their tax… – Continue reading
This was an appeal to the Court of Appeal from the decision of the Royal Court of Jersey, by which the Royal Court dismissed an appeal brought under Article 14(1)(c) of the Taxation (Exchange of Information with Third Countries) (Jersey) Regulations 2008 (the “Regulations”) and upheld the decision of the… – Continue reading
New Delhi: The Income Tax department has rebutted Vodafone’s notice under BIPA saying that the pact between India and Netherlands does not cover taxation issues. “Tax department has sent its response to Vodafone saying BIPA does not cover tax issues,” an official source said. The response to the Bilateral Investment… – Continue reading
France’s 2014 Finance Act (No 2013-1278) requires that the additional amount of tax assessed by the tax authority upon the launch of a Mutual Agreement Procedure (MAP) must be paid in advance of an outcome. This measure was introduced by repealing Article L. 189 of the Tax Procedures Code (LPF), with effect… – Continue reading
Switzerland may no longer be a honeymoon spot for tax evaders. A new international standard of tax data sharing is set to make things harder for tax haven networks around the world that have in the past included Switzerland and tiny island nations and enclaves. But India would have to… – Continue reading
PRLog (Press Release) – Mar. 4, 2014 – NICOSIA, Cyprus — As of January 1st 2014, Cyprus entered into five new Double Tax Treaties (DTT’s) with Estonia, Finland, Portugal, Spain and Ukraine expanding its already rich list of DTTs. All the agreements aim to avoid double taxation between the mentioned… – Continue reading
WASHINGTON – The Senate Permanent Subcommittee on Investigations, which I chair, has spent several years examining the ways offshore banks have aided and encouraged U.S. taxpayers in evading their responsibility to pay what they owe. By using secret bank accounts, these taxpayers conceal their income and therefore avoid paying taxes…. – Continue reading
U.S. President Barack Obama’s call on Tuesday for an end to billions of dollars in tax breaks echoes a 979-page draft reform plan last week from Dave Camp, the top Republican tax writer in the House of Representatives. Given the gridlock in Washington, neither the Democrat Obama, who included the… – Continue reading
Even rumours of a so-called “mansion tax” were enough to stagnate the prime property market in London, a panel of experts heard today At a property debate hosted by asset manager London Central Portfolio, panellist Paul Emery, real estate director at PwC, said the government couldn’t keep “tinkering with the… – Continue reading
BANGALORE: In response to the letter written by finance minister P. Chidambaram, the Swiss finance minister Eveline Widmer-Schlumpf has informed that the Swiss authorities can’t share the details of the bank accounts held by Indians in Swiss bank without the consent of the account holders, reports Economic Times. An Indian… – Continue reading
Bank Secrecy Act (“BSA”) compliance, and in particular anti-money laundering (“AML”) controls, remains a focus of regulators as evidenced by record fines levied in recent weeks. On February 7, 2014, the Financial Industry Regulatory Authority, Inc. (“FINRA”) suspended a former AML compliance officer at Brown Brothers Harriman (“BBH”) and assessed… – Continue reading
The Foreign Accounts Tax Compliance Act (FATCA) will, from 1 July 2014, impose an array of new reporting obligations, especially on foreign financial institutions that serve Americans, including the need to report directly to the IRS. Leading many non-resident Americans and EU based financial firms calling for change or looking… – Continue reading
Cambodia has agreed to help the United States in its global effort to crack down on tax evasion by working with local banks to hand over financial data on US residents and business interests abroad, according to tax experts and officials. Speaking yesterday at the 17th Government-Private Sector Forum held… – Continue reading
The Canadian government is bending over backwards, and bending our laws, to allow the U.S. to enforce its new tax compliance act. Canadian visitors to Washington sometimes wonder why their embassy stands at the foot of Capitol Hill. The answer? To be close to where Canada’s laws are made. Case… – Continue reading
Negotiations between the governments of Cyprus and Latvia on a new double taxation agreement, which began in 2006, appear to be reaching the final stages. The Latvian authorities have now published the text of the final draft agreement, which requires the approval of the Latvian Cabinet of Ministers before signature…. – Continue reading
Charging offshore companies stamp duty for owning mansions in Britain has brought an unexpected tax windfall. The move to close a loophole that allowed celebrities and the wealthy to avoid stamp duty on multi-million homes owned by offshore companies was expected to raise around £20 million a year. Instead the… – Continue reading
Canada has aligned with the thinking of other countries around the world in battling against international tax avoidance. As the treaties that Canada has with other countries come up for renewal, exchange of information agreements are being added to updated treaties while exchange of information document agreements are being drawn… – Continue reading
NEW DELHI: India and the United States have decided to enhance cooperation for automatic exchange of information on tax evasion and detection of financial crimes, shoring up efforts to crackdown on blackmoney cases involving economic channels of the two countries. A team of the US Treasury officials recently met Indian Income… – Continue reading
The President of Tynwald, the Hon Clare Christian, has welcomed His Excellency Mr Dominik Furgler, Ambassador of Switzerland to the United Kingdom, to Tynwald. His Excellency was joined by his wife, Mrs Hayam Furgler and Ms Rebekka Benesch, First Secretary for Financial and Fiscal Affairs on a two-day visit which… – Continue reading
When a bipartisan Senate panel last week lambasted Swiss bank Credit Suisse for helping rich Americans evade billions in taxes, some watching the high-profile hearing couldn’t help but notice an elephant in the room. That is, Sen. Rand Paul. The connection? Paul for years has single-handedly blocked an obscure U.S.-Swiss… – Continue reading
NEW DELHI: As part of its strategy to curb offshore tax evasion and promote foreign investment, India has recently operationalised seven new Income Tax Overseas Units (ITOUs) in countries like Germany, USA and France. A similar Income Tax office in Cyprus has, however, not been activated as India, last year in November, classified the island nation… – Continue reading
World is getting smaller; Hidden cash far away will soon be more transparent and seemingly nearer. On February 13 the OECD unveiled a Common Reporting and Due Diligence Standards for the automatic exchange of tax information between tax authorities worldwide, which was endorsed by the G20 in its communique… – Continue reading
(Reuters) – The central bank governor of Mauritius has publicly criticised delays in the island’s efforts to develop Islamic finance, saying such “foot-dragging” could deprive the financial sector of chances to grow and increase risks. Governor Rundheersingh Bheenick said in an annual letter to stakeholders that legislation was needed to… – Continue reading
The Republican Party has recently formally approved a petition to repeal the Foreign Account Tax Compliance Act – the repeal comes just 5 months before the act is set to come into effect. The main sponsor of the Republic party resolution to repeal FACTA, is Solomon Yue, who is a… – Continue reading
Members of limited liability partnerships still face uncertainty – and the prospect of big, unexpected tax bills – under measures aimed at curbing tax avoidance, business tax advisers warned last week. New rules aimed at curbing the abuse of partnership status by ‘disguised employees’ for tax reasons come into force… – Continue reading
(Reuters) – China’s foreign currency regulator eased restrictions for companies registered in Shanghai’s recently established free trade zone (FTZ), increasing the amount of foreign currency companies registered in the zone can lend in offshore markets, according to an announcement posted on the FTZ’s website. The new regulations issued by the… – Continue reading
NEW DELHI: The Swiss authorities have told the Indian government they will not be able to share information on bank accounts without the consent of the account-holders. In a letter last month, Switzerland’s finance minister also told her Indian counterpart that the 2011 Double Taxation Avoidance Agreement, under which India… – Continue reading
Liechtenstein, one of the world’s most uber secretive tax havens, has joined Switzerland in freezing the assets of ousted Ukrainian president Viktor Yanukovich’s administration. An unnamed senior Liechtenstein government source told Reuters that Liechtenstein was freezing the assets of former party officials in the Ukrainian administration after other jurisdictions launched… – Continue reading
APIA, Samoa — Dividends, land sale income, insurance payments, management fees and airline ticket payments over $1 million tala (US$425,800) are all to come under new exchange controls from next month. On Friday, the Central Bank of Samoa released a statement signed by Governor Maiava Atalina Ainu’u-Enari, covering the different areas…. – Continue reading
Gibraltar lawmakers unanimously approved new legislation that will dramatically expand Gibraltar’s network of agreements for the exchange of tax information. The legislation implements OECD’s Convention on Mutual Administrative Assistance in Tax Matters in Gibraltar ahead of the March 1 deadline. The move is part of the Government of Gibraltar’s policy… – Continue reading
Pension professionals in Gibraltar will soon be able to offer Qualifying Non-UK Pension Schemes (QNUPS) from Gibraltar. The Gibraltar Government has, in consultation with the Gibraltar Association of Pension Fund Administrators (GAPFA), worked to enable the sector to offer Gibraltar QNUPS. Discussions then took place between the Government… – Continue reading
(Reuters) – Austrian Chancellor Werner Faymann on Wednesday demanded movement in European Union tax talks with Switzerland and other non-EU countries and linked this to whether Vienna will agree to automatically exchange data on cross-border savings. His remarks to reporters after he met Luxembourg Prime Minister Xavier Bettel appeared to… – Continue reading
Feb 26 (Reuters) – Luxembourg is talking to China about allowing mutual recognition of investment funds based in the two countries, a senior Luxembourg official said on Wednesday. Such an agreement would boost the European financial centre’s bid to be a major hub for the offshore renminbi, or yuan, currency,… – Continue reading
George Town, Grand Cayman – For persons who want to let Government know their thoughts on beneficial ownership of companies – including if Cayman effectively maintains information on who owns the companies, and if that information is readily available to appropriate authorities – the deadline to respond is this Friday,… – Continue reading
Despite National Treasury’s silence on proposed changes to trust legislation in Wednesday’s Budget, a review is still firmly on the agenda, tax experts say. Fatal Limpopo blast caught on camera Related Stories ANC will not reveal its election budget 4.3.2014 Should you still invest in listed property unit trusts? 1.3.2014… – Continue reading
Luxembourg has been widely hailed as an international investment center for years. The Association of the Luxembourg Fund Industry (ALFI) provides a number of reasons underlying the country’s designation as a top fund-industry choice. Its legal and regulatory framework for investment funds is recognized for its excellence by the global… – Continue reading
Kevin E. Packman is a Partner in our Miami office While Israel welcomes immigrants, and even provides them with tax incentives, it is serious about ending any perceived notion that it is somehow complicit with taxes evaded by its foreign residents in their home country. As such, it plans to… – Continue reading
On February 20, 2014, the Internal Revenue Service (IRS) issued additional final and temporary regulations (T.D. 9657)under the Foreign Account Tax Compliance Act of 2009 (FATCA) as well as new regulations (T.D. 9658) that modify the international withholding, backup withholding and information reporting rules that apply outside the scope of FATCA. FATCA generally… – Continue reading
Ireland’s Fianna Fáil party has expressed its concern over the “seemingly snail’s pace” progress being made by the European Commission in its preliminary probe of the country’s corporate tax regime. Fianna Fáil finance spokesperson Michael McGrath said: “News of the preliminary probe by the European Commission into the corporation tax… – Continue reading
The Russian Finance Ministry will offer companies based offshore but with operations in Russia a choice: either disclose their ultimate beneficiaries and maintain their zero tax rate, or pay taxes at the higher Russian rate. Under Russia’s current corporate tax structure, offshore beneficiaries of Russian companies are treated as de-facto… – Continue reading
