THE GOVERNMENT is still awaiting assurance from Thailand that a World Trade Organization (WTO) ruling on cigarette taxation issued in favor of the Philippines will not be invalidated by an ongoing tax evasion case there. Asked to comment on a status report submitted by Thailand to the WTO last June… – Continue reading
“A government that robs Peter to pay Paul, can always count on the support of Paul”– George Bernard Shaw. Well, the UPA government certainly did a Peter to multinational companies operating in India by hiking withholding taxes from 10% to a good 25% in the 2013 budget. Who is the… – Continue reading
Property-buyers and expats in Spain should note that a new Double Taxation Convention between the UK and Spain, which was signed in London on 14th March 2013, came into force in June 2014. Richard Way, Editor of www.OverseasGuidesCompany.com, publishers of www.SpainBuyingGuide.com said: “From June 12th, rules for withholding tax on… – Continue reading
Besides DTAC, both nations have BIPPA; India has been largest exporter of goods and services to Mauritius since 2007 Seeking to dispel concerns about Mauritius being used for round-tripping of Indian money, the island nation’s financial sector watchdog has sought a quick resolution of tax related issues between the two… – Continue reading
The British Virgin Islands (BVI) government entered into its twenty-sixth tax information exchange agreement (TIEA) with the Government of Japan on 18 June 2014. This new TIEA is not present in force but will enter into force on the thirtieth day after completion of the domestic implementation procedures by both… – Continue reading
South Carolina property owners who rent their homes to vacationers will face more tax-related scrutiny under one new state law, but some could see big tax savings under another new law. The impacts will mostly play out in beach communities where such rental properties are plentiful. The added scrutiny, which… – Continue reading
Minister of Finance Hany Dimian said introducing amendments to some provisions of the tax law on individual’s annual income allow inserting articles to combat tax evasion. The Minister added that this comes within the reform package adopted by his ministry to address the new budget deficit. These amendments, President Abdel… – Continue reading
Treasurer Joe Hockey has said that he will improve the structural integrity of Australia’s tax system to address international tax avoidance by multinational enterprises. In particular, the tax law will be tightened to prevent a multinational from shifting profits from Australia by claiming excess interest expense deductions. This tax avoidance technique is… – Continue reading
The authorities are looking to entice Russian-owned offshore firms to repatriate capital. A new law will impose penalties on such companies for tax evasion, but offers 2-year amnesty for those firms which decide to relocate to Russia. The Finance Ministry has decided to grant a 2-year amnesty for offshore companies… – Continue reading
Treasurer Joe Hockey will introduce legislation this month to tighten corporate taxation loopholes but says there must be a global solution to tax evasion. The government is going ahead with rule changes to lower the amount of debt a multinational firm based in Australia can have on its books. This… – Continue reading
OPINION: In February and April I wrote about a decision of the Taxation Review Authority (TRA) that found a taxpayer was still a New Zealand tax resident despite living predominantly outside New Zealand for more than 10 years. In those articles I highlighted why I thought the authority’s decision was… – Continue reading
Deal Allows U.S. to Enforce its Foreign Account Tax Compliance Act, or FACTA JERUSALEM—Israel has joined 80 other countries in signing an agreement with the U.S. government on fighting offshore tax evasion, the Israeli finance ministry said Wednesday. According to the agreement, Israel’s tax authority will submit information on local… – Continue reading
The BVI Government has signed a Model 1B (non-reciprocal) Intergovernmental Agreement (IGA) in relation to the US Foreign Account Tax Compliance Act (FATCA), it was announced on 30 June 2014. It was announced in March this year that negotiations had been concluded with the US and later in April the… – Continue reading
The Finance Ministry is pushing ahead with its program to entice Russian-owned offshore firms to repatriate capital. A new law will impose penalties on such companies for tax evasion, but offers the carrot of a 2-year amnesty for those firms which decide to relocate to Russia. The Finance Ministry has… – Continue reading
Spain signed an agreement with the Dominican Republic to avoid double taxation of individuals and companies that are subject to levies in both nations. The accord, published today in the Spanish government’s Official Bulletin, allows income tax paid in one nation to be deductible in the other nation from income… – Continue reading
Sweeping rules aimed at stopping tax evasion took effect on Tuesday, ushering in a new system that Obama administration officials say will leave tax cheats with fewer havens overseas. The Foreign Account Tax Compliance Act, one of President Obama’s initiatives for fighting offshore tax evasion, is arriving after multiple delays,… – Continue reading
The 2010 Foreign account tax compliance act represents a significant initiative by the United States to tackle offshore tax evasion. But it has not been popular with Chinese authorities, especially the banking sector, in part because it was considered an extra burden. Why should it obligate itself to do such… – Continue reading
Isle of Man chief minister Allan Bell has labelled tax information exchange agreements (TIEAs) ‘redundant’ and defended the lack of any new double taxation agreements (DTAs) signed by the island since the one with Luxembourg in April last year. The last TIEA it signed bilaterally was with the Czech Republic… – Continue reading
BERNE: Switzerland and the European Union stepped closer on Tuesday to resolving a near-decade long dispute over corporate tax rates, a sign of cooperation between the two amid friction over immigration policy. The pair signed an agreement, announced late last month, which outlined Switzerland’s intention to propose scrapping long-cherished rules… – Continue reading
The federal first-time homebuyer tax credit programs expired near the end of 2011, but there is still tax help out there depending on the state or county where you live. For example, states such as Delaware, Texas, Kentucky and many more states have local homebuyer tax credit programs that you can take advantage of. Other… – Continue reading
Australia’s taxing agency is doubling efforts to identify individuals with undisclosed foreign income and assets so they can participate in a streamlined tax program for individuals with offshore assets, the agency said Monday. The Australian Taxation Office said it is sorting through data to identify people with offshore assets so… – Continue reading
When Canada’s banks reopen for business on July 2, they will begin formally operating as informants for the United States Internal Revenue Service — the IRS. Financial institutions in Canada will be required to ask all new and existing clients opening a new account questions such as where they were… – Continue reading
Just days before the Foreign Account Tax Compliance Act’s entry into force, China and the United States initialed a model one intergovernmental agreement (IGA) on June 26, 2014, to simplify the process for financial institutions in both territories to provide relevant information to support tax enforcement activities under the Act…. – Continue reading
So much of what Switzerland has traditionally stood for is now anathema to its neighbours in Europe and other members of the club of developed nations: confidentiality underpinned by strong banking secrecy laws; and a liberal tax regime offering a tax sanctuary to the wealthy and multinational companies. To a… – Continue reading
As the new government gets to work, one key item on the agenda would be the revival of growth. The key to that objective is the revival of the investment climate in India for renewed flow of overseas investments. One aspect that has vitiated the investment climate is the tax… – Continue reading
AN area for immediate consideration and co-operation is a review of the New Zealand-Fiji double taxation avoidance agreement (DTAA). Speaking at the Fiji-New Zealand Business Council conference on Saturday, Ministry of Industry and Trade permanent secretary Shaheen Ali said it was woefully out-of-date and needed revision. He said this was… – Continue reading
MOSCOW, June 30 (RAPSI) – Russian President Vladimir Putin has signed a law to allow Russian financial institutions to provide information about US taxpayers and to oblige foreign financial institutions to report Russian taxpayers to Russia’s Federal Tax Service. The document has been posted on the government website of legal information…. – Continue reading
The Australian Tax Office is stepping up its surveillance of Australians funnelling money into secret offshore bank accounts. The extra scrutiny is part of an amnesty program that will allow some tax dodgers to avoid severe punishment by declaring income and agreeing to come back into the tax system before… – Continue reading
Qualifying Recognised Overseas Pension Schemes (QROPS) are becoming increasingly popular in America, due to the loophole represented by a double-tax treaty signed with Malta – a country in the top three jurisdictions of choice since QROPS were introduced. Previously it was largely viewed as near-impossible to arrange for a viable,… – Continue reading
The agreement between China and the United States for US financial accounts registered at banks in China to send their tax reports to the US Internal Revenue Services (IRS) to curb offshore tax evasion will have positive effects for China, experts said. The agreement will also enable Beijing to obtain… – Continue reading
Mumbai: The Reserve Bank of India (RBI) has said India and the US have agreed to implement a foreign tax compliance law and asked banks and financial institutions to register by this year-end to report accounts and assets held by US citizens. India and the US have agreed to implement… – Continue reading
Amendments to the double taxation convention (DTC) between France and Switzerland will bring the treaty’s information exchange provisions up to the international standard. An additional Protocol to the Convention, signed on June 25, 2014, will enable France to secure additional information from Switzerland on individual taxpayers, including their name or… – Continue reading
Are you an American resident? It’s a question that Canadian “snowbirds” will have to ask themselves before celebrating Canada Day next week, when the U.S. Foreign Tax Compliance Act – or FATCA – kicks into effect. Financial institutions around the world will answer to the U.S. Internal Revenue Agency so… – Continue reading
This week one of the key Democratic Party strongholds voted to reduce income taxes and expand the sales tax base. The District of Columbia Council, which in 2012 supported President Barack Obama over challenger Mitt Romney by a wide margin of 13 votes to 1 (in a city where 90.9… – Continue reading
Mainland China has been included on a list of jurisdictions co-operating with the United States on a new law to halt tax evasion. It removes the threat of blacklisting or penalties that had been hanging over Chinese financial institutions. The inclusion will also benefit institutions in Hong Kong, the US… – Continue reading
An oldie-but-goodie tax strategy is back in the limelight thanks to the Clintons’ much-publicized attempts to soften the blow of estate and gift taxes. The qualified personal residence trust is back. Bill and Hillary Clinton are making headlines for their use of the qualified personal residence trust or QPRT —… – Continue reading
Are you an American resident? It’s a question that Canadian “snowbirds” will have to ask themselves before celebrating Canada Day next week, when the U.S. Foreign Tax Compliance Act – or FATCA – kicks into effect. Financial institutions around the world will answer to the U.S. Internal Revenue Agency so… – Continue reading
The Cayman Islands and Colombia are to sign an automatic exchange of tax information agreement under the Multilateral Convention on 1 July 2014. The Tax Information Exchange Agreement (TIEA) will be in accordance with global regulatory standards. This will be Cayman’s 36th such agreement, the third in 2014, with the Seychelles… – Continue reading
Law360, Los Angeles (June 25, 2014, 10:42 PM ET) — Russia’s upper house of parliament reportedly approved legislation Wednesday that would allow Russian banks to share information about their foreign clients with the U.S., so the banks can comply with the Foreign Account Tax Compliance Act, despite the Russian government’s… – Continue reading
The Indian economy today is in urgent need of measures to restore growth. A stable, clear and transparent tax regime would go a long way in improving sentiments and investor confidence. Building such a tax regime would require an integrated effort including legislative changes to bring in clarity, operational changes… – Continue reading
The unequivocal mandate given to the Modi led NDA government will allow them to take a long term perspective while making policy decisions. The finance ministry led by Arun Jaitley has close to 15 days left to put together the dream budget and at the same time address ‘inclusive growth’… – Continue reading
Q. I have lived in my house for 30-plus years. I have been told that if I sell it for more than I paid for it, I will have to pay capital gains tax on the difference between what I paid for it and what I sell it for. Others… – Continue reading
ANYONE with a second residence or holiday home in Co Donegal who has not paid the taxes due on it now have an outstanding bill of €4,220. This amount, accrued from 2009-2013, will rise however to a whopping €7,230 on September 1, 2014. Donegal County Council said it is “actively… – Continue reading
France and Switzerland have agreed to meet OECD standards when it comes to data exchange between the two countries. Finance Minister Eveline Widmer-Schlumpf, and her French counterpart, Michel Sapin, came to an agreement during his visit to Bern on Wednesday. The newly-signed deal brings the previous double taxation agreement between… – Continue reading
This year, Park City primary residence owners will have to pay $18 more per $500,000 of assessed valuation in property taxes. That is because the Park City School District has imposed a one-time judgment levy to make up for the $760,000 it will have to refund to taxpayers after the… – Continue reading
Should investors pay much heed to domicile when investing in an investment trust IPO? The first half of 2014 has very much mirrored what we saw last year, certainly from a new issues perspective. The investment trust sector is going full throttle, with the sector raising £1.8bn so far this… – Continue reading
Canada’s investment and banking industries hailed a key victory Tuesday in five-year fight to dull the impact of onerous new U.S. tax rules expected to affect about a million Canadian residents and dual citizens. A newly ratified inter-governmental agreement with the United States excludes registered accounts for education, retirement, and… – Continue reading
The Financial Supervisory Commission (FSC, 金融監督管理委員會) yesterday stated that Taiwan is currently recognized by the United States of America as an “Agreements in Substance” nation of the Foreign Account Tax Compliance Act (FATCA). The status allows Taiwanese financial institutions and their patrons to be exempted from a 30 percent withholding… – Continue reading
With regard to business operations, a resident of one country (e.g., Panamanian company) may be taxed in the other country (e.g., Israel) if it has a “permanent establishment” (PE) in the other country. Panama is famous for its canal, colorful history and cool offshore tax regime. To that we can… – Continue reading
Facing global pressure, Switzerland today decided to relax a key legislation to make it easier to extend help to foreign countries, including India, probing cases of suspected tax crimes. The proposed revision in Switzerland’s Tax Administrative Assistance Act would do away with an existing requirement where all individuals are given… – Continue reading
