Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra on Wednesday said that the tax exchange agreements with other countries was resulting in information pouring in at a fast pace, thus there was no escaping for the multi-national companies (MNCs) from fair taxation. “We have got wide (tax) information from… – Continue reading
The Internal Resources Division (IRD) has issued a directive to audit maximum 25,000 income tax files of both individuals and corporate taxpayers to detect tax evasion and concealment of actual income, officials said. The income tax authority has received the directive from the IRD not to exceed this number of… – Continue reading
I am a trustee of an offshore trust settled by a UK resident, non-UK domiciled settlor (with no UK origins) for the benefit of himself and his family. He previously opted to be taxed on the remittance basis. The trust holds only offshore investments. The settlor lent monies to the… – Continue reading
Italy has granted non-domiciled status to a taxpayer for the first time, after introducing a new non-dom regime at the start of the year. Withers LLP represented the taxpayer, a high net worth individual who was formerly registered as a non-dom in the UK, and who has decided to move… – Continue reading
Brazil’s Inland Revenue has announced that assets worth BRL4.6bn (USD1.46bn) have been declared by Brazilian taxpayers through its amnesty for undeclared overseas holdings. It said that the income tax and fines linked to these assets totalled BRL1.6bn. The figures cover the period between March 3 and July 31, 2017, when… – Continue reading
The current plan for US tax reform would disproportionately benefit the wealthy, the International Monetary Fund has said, recommending more support for low-income taxpayers and higher indirect taxes. On the need for tax reform, the IMF said in its Article IV consultation for the United States that “the US personal… – Continue reading
The Costa Rican government is very interested in forming part of the Organization for Economic Co-operation and Development (OECD http://www.oecd.org/ ). The OECD is formed by 35 nations to promote policies that will improve the economic and social well-being of people around the world. Last Thursday, economist Bert Brys, explained… – Continue reading
Indians who are on deputation overseas or have settled overseas — whether by way of acquiring a permanent residency such as a green card in the US, or acquiring citizenship of a foreign country — need to be aware of their tax obligations in India. A recent move seeking details… – Continue reading
The algorithm will match residents’ spending patterns, as evidenced from their social media postings, with their declared income. Bloomberg reported that the Indian government will be rolling out a new data analytics platform, called Project Insight, to catch tax evaders. In addition to traditional taxation data, such as IT returns,… – Continue reading
Federal income tax reform is by far the biggest concern of corporate tax executives, a new survey from Bloomberg BNA reveals. Survey of Corporate Tax Departments 2017 spotlights several key tax issues, and “corporate tax professionals are facing a wealth of challenges as they look to prepare their businesses for… – Continue reading
Business group Ibec has said that the Irish Government must “Brexit proof” its 2018 Budget, improve its foreign direct investment model, and implement a range of tax reforms to compete with the UK. Publishing the group’s pre-Budget submission, Ibec Director of Policy and Public Affairs, Fergal O’Brien said: “The Irish… – Continue reading
The OECD has praised Luxembourg’s tax regime for its predictability, although it sounded a warning about the volatility of tax revenues from the financial sector. In its latest assessment of the Luxembourg economy, the OECD said that Luxembourg’s strong economic performance was due partly to “business-friendly regulations, a predictable tax… – Continue reading
Economist Magnus Heystek says that government’s push towards scrapping tax exemptions for South Africans earning a salary in foreign country will encourage a tax revolt. South Africans have expressed a mix of concern and outrage over the past week, following the news that the government is seeking to scrap tax… – Continue reading
The Indian tax authority has announced that it has begun the second phase of its Operation Clean Money initiative, within which it will challenge those taxpayers that have potentially failed to declare all their income. The agency said that 556,000 taxpayers’ affairs will be scrutinized as amounts deposited in bank… – Continue reading
The Australian Government has moved to clarify the tax treatment of foreign investors, following concerns over the practical operation of the Investment Manager Regime (IMR) and the new tax system for managed investment trusts (MITs). The aim of the IMR is to attract foreign investment to Australia and the promote… – Continue reading
Move to maximise revenue collections this fiscal The Income-Tax Department is likely to monitor transactions by e-commerce firms in the coming year to maximise revenue collections including those from the equalisation levy. This is part of the enforcement strategy in the Central Board of Director Taxes (CBDT) action plan for… – Continue reading
Tax returns and annual financial disclosures contain different information Candidates and members of Congress are required by law to file personal financial disclosures that are designed to shed a light on their potential conflicts of interest. These documents show a lawmakers’ assets and liabilities, reported in broad ranges. Tax returns,… – Continue reading
A. Introduction In February 2017 Cyprus Tax Department has announced that the current practice regarding profit margins between related Company loans will be abolished by the 30th June 2017. The announcement indicates that the minimum acceptable margins will apply up to 30th June 2017, and as from 1st July 2017… – Continue reading
In Federal Budget 2017, the Government is clamping down on tax avoidance by foreign investors in real estate, by tightening the foreign resident capital gains tax withholding regime. The new laws apply to both Australian resident and foreign resident vendors: Australian resident vendors of real property of $750,000 or more… – Continue reading
Cairn Energy has petitioned an international arbitration tribunal against billionaire Anil Agarwal-led Vedanta Ltd withholding its dividend for last three years New Delhi: UK’s Cairn Energy plc has petitioned an international arbitration tribunal against billionaire Anil Agarwal-led Vedanta Ltd withholding its dividend for last three years despite tax authorities saying… – Continue reading
The Canadian Government has issued an update on its anti-avoidance work, and said that audits carried out in the past fiscal year are on track to capture more than CAD13bn (USD9.6bn) worth of taxes owed. The report was issued to the Standing Committee on Finance, in accordance with commitments made… – Continue reading
Some 9 million Americans reside abroad. More than 4 in 10 wouldn’t rule out renouncing U.S. citizenship, according to a survey. Americans abroad have just about had it with Uncle Sam’s tax filing requirements. Those were the findings from a recent survey of more than 2,100 U.S. expatriates, according to… – Continue reading
Transferring wealth to a spouse who isn’t a U.S. citizen can create complex gift, estate and generation-skipping transfer tax challenges. Such transfer tax issues require careful planning, as well as a clear understanding of the differences in how citizens and non-citizens are taxed. Unlike citizens and resident aliens, a non-resident… – Continue reading
Malaysia uses both progressive and flat rates for personal income tax, depending on an individual’s duration and type of work in the country. As expatriates may fall into either tax category depending on their work, it is important to understand Malaysia’s basic tax structure. The Income Tax Act of 1967… – Continue reading
For approximately 7,000 tax-evading individuals and businesses in Detroit, it may be time to pay up. Detroit tax collectors are conducting a large scale litigation campaign against tax evading individuals and businesses operating at 33 properties within the city’s downtown and midtown areas, the Associated Press reports. The team behind… – Continue reading
The tax base in India is set to widen with more people coming forward to pay taxes after unaccounted for cash lost its anonymity following the note ban, finance minister Arun Jaitley said today. “A move towards digitisation, an increase in the number of tax assessees and tax returns filed… – Continue reading
The South African Revenue Service (SARS) launched the Special Voluntary Disclosure Programme (SVDP) in October 2016, providing taxpayers with the opportunity to make good on any tax and/or exchange control contraventions of which they may be guilty in relation to offshore investments. The nine-month window period opened on October 1,… – Continue reading
Jacking up the top income tax rate to levels last seen in the late 1980s – just as company taxes are cut – will create a perfect storm for high income earners to engage in tax avoidance, including through increased use of property negative gearing. Policy experts are ringing alarm… – Continue reading
Sub-Saharan African countries should look to tap tax revenues outside natural resources, to finance stimulus measures that could reinvigorate their ailing economies, a new report from the International Monetary Fund says. The IMF’s Regional Economic Outlook for Sub-Saharan Africa report, released on May 9, notes that growth in the Sub-Saharan… – Continue reading
Newly-elected French president Emmanuel Macron has committed to reducing the rate of corporation tax from its current level of 33.3% to 25%, with the aim of bringing it in line with the EU average within five years Reductions in the rate of corporate tax will begin in stages from 2018… – Continue reading
The United States continues to be a magnet for immigration, with nearly 8 million new immigrants settling here between 2008 to 2014 — and some of these new immigrants are high-net-worth individuals who are unprepared for the intricacies of the U.S. tax law, according to Seth Entin, a shareholder at… – Continue reading
Income tax has long been a progressive talking point in Seattle. Washington is one of just seven states without any income tax, and it relies heavily on sales and property taxes to fill the state coffers. As such, Washington earns the dubious honor of having the most regressive tax system… – Continue reading
Only a few days left for this financial year to end and tax filing deadline is striking the calendar. Indian Government has already taken many initiatives to simplify the tax filing process by introducing new ITR forms, online filing facility etc. Yet many taxpayers tend to make silly mistakes while… – Continue reading
Governments are expanding their use of tax incentives to maintain their country’s international appeal to businesses, alongside the adoption of anti-base erosion and profit shifting measures, according to a survey from EY. EY’s survey of tax policy professionals in 50 countries found that, “While the long-term trend for countries to… – Continue reading
Germany will introduce “license barrier rules” as of January 2018. The new rules will limit the tax deductibility of license fees or royalty payments to foreign related parties that benefit from preferential regimes (“Patent Box”, “IP-Box”, “License Box”) which are incompatible with the “OECD nexus approach” (“unqualified preferential regimes”) (sec…. – Continue reading
Malaysia should increase its goods and services tax (GST) rate, strengthen international anti-avoidance rules, and seek to boost compliance, the International Monetary Fund (IMF) has said. The IMF said that increasing the current six percent rate of GST by 0.5 percentage points would increase Malaysia’s revenues by an estimated 0.25… – Continue reading
The UK parliament passed a truncated version of the finance bill (budget) for 2017 last Tuesday after strong opposition to the original bill. The removal of 72 of the 135 clauses allowed the bill to glide through the UK parliament in just two hours. A significant number of the 72… – Continue reading
It often occurs that a multinational company employs a foreign manager based on an employment contract or secondment. In the first case, the Hungarian company is considered as the legal and economic employer, therefore the salary is payed directly by it. In the second case, the employee maintains the employment… – Continue reading
President Trump has signed three executive orders to spark reviews of tax and financial regulations so taxes on businesses and individuals can be cut. The approach would be different from Trump’s earlier plan, which was criticized as an approach that would mostly benefit higher earners. Michael Zezas, a strategist at… – Continue reading
Newcastle managing director Lee Charnley released after HMRC investigation Offices at St James’ Park and club training ground raided by tax authorities The offices of Newcastle United and West Ham United were raided on Wednesday morning and Chelsea confirmed they were asked to provide information as part of a wide-ranging… – Continue reading
President said to call for taxing pass-throughs at 15% Pass-throughs are currently taxed at higher individual rates President Donald Trump plans to propose a 10 percent tax on more than $2.6 trillion in earnings that U.S. companies have stockpiled offshore, said a White House official familiar with the president’s tax… – Continue reading
The Australian Tax Office had a superb win against Chevron in the Federal Court last week, but there is something everyone is missing, something that will turn the art of tax avoidance on its head; a game-changer for multinationals. Put simply, Chevron borrowed US$2.5 billion in the US at less… – Continue reading
People earning more than £70,000-a-year could be forced to pay more tax if Labour wins power, Shadow Chancellor John McDonnell hinted today. He stressed Labour wanted a “fair taxation system” which would see corporations and the rich “pay their way more”. Asked to define rich, Mr McDonnell said they would… – Continue reading
Filing of your income tax return (ITR) is mandatory under the Income Tax Act, 1961 under certain circumstances. For instance, if someone’s income exceeds the maximum amount not chargeable to tax, one is required to file income tax return. Similarly, filing ITR is mandatory for ordinary residents having overseas assets… – Continue reading
(Second of two parts) In last week’s article, we discussed how or why taxpayers working on international assignments have to consider the impact of different tax jurisdictions on their individual tax obligations. We also explained how most companies implement a tax equalization (TEQ) arrangement for the employees so that they… – Continue reading
Irish Finance Minister Michael Noonan has said that despite a dip in tax revenues for the first quarter of 2017, “it remains too early to discern any firm trends.” Noonan made the comment during an appearance before parliament’s Budget Oversight Committee. He said that his Department has increased its GDP… – Continue reading
MANILA, Philippines – Instead, the government should pursue the enactment of the proposed Comprehensive Tax Reform Program (CTRP) before pursuing a tax amnesty program, Citi economist Jun Trinidad said. He said fiscal priority remains the passage of the first component of the tax reform measure that includes income tax cut… – Continue reading
A report released Tuesday shows that Greece is among the countries of Organization for Economic Cooperation and Development (OECD) with the highest tax wedge – the difference between before-tax and after-tax wages, including the tax paid by both the employee and the employer. In the OECD report “Taxing Wages 2017,”… – Continue reading
MUMBAI: Custodians for foreign portfolio investors and tax consultants are in a deadlock with both parties refusing to take the onus of potential liabilities of their clients in the new tax regime. The custodians, mainly foreign banks, want a certificate from consultants such as the big four firms stating that… – Continue reading
A bill introduced by a Democratic State Representative in the Prairie State of Illinois has named 18 Caribbean nations as foreign tax havens and if it becomes law, would forbid a company incorporated in any of those nations from submitting a bid or entering into a contract with the state…. – Continue reading
