The US Internal Revenue Service (IRS) has netted more than $10 billion in secret offshore cash and investments. The controversial Foreign Account Tax Compliance Act (FATCA) has encouraged more than 100,000 taxpayers to reveal their overseas holdings. But the IRS suggests this is just the start as FATCA cranks up… – Continue reading
A government taskforce created to analyse the Panama Papers data leak has identified a number of leads that are relevant to a major insider-trading operation, led by the Financial Conduct Authority (FCA) and supported by the National Crime Agency. After acquiring data on offshore activity in Panama, the taskforce has… – Continue reading
Vietnam’s Ministry of Finance released a draft circular on October 11th which, if passed, is set to become the largest change to transfer pricing (TP) regulation since the implementation of Circular 66/2010/TT-BTC in 2010 – which the draft updates. Touching on conditionality of TP exemption and thresholds for defining related… – Continue reading
American multinational corporations are apparently dodging nearly $700 billion in U.S. taxes they owe on profits stockpiled offshore, according to a new “corporate tax chartbook” from Americans for Tax Fairness (ATF) and the Economic Policy Institute (EPI). Last year, Fortune 500 companies had $2.4 trillion in untaxed offshore profits, on… – Continue reading
The New Mexico tax department has agreed to stop automatically withholding income tax refunds from many foreign nationals without Social Security numbers who file under alternative identification numbers provided by the IRS, a New Mexico state senator said Friday. Sen. Gerald Ortiz y Pino said he co-signed the settlement as… – Continue reading
The APA scheme was initiated in 2012 in the IT Act and in 2014, rollback provisions were introduced. The Dollar Business Bureau The Central Board of Direct Taxes (CBDT) on Thursday signed five Unilateral Advance Pricing Agreements (APAs) with Indian taxpayers, making the total number of APAs to 108. “The… – Continue reading
The Federal Board of Revenue (FBR) on Wednesday refused to share tax details of offshore companies owned by Mariam Nawaz, Hassan Nawaz, Imran Khan and Jehangir Khan Tarin with National Assembly Standing Committee on Finance. The National Assembly Standing Committee on Finance, which met under the chairmanship of Qaiser Ahmed… – Continue reading
After five years of negotiations, the European Commission has finally announced its plans to overhaul the way in which companies are taxed in the Single Market. The revised Common Consolidated Corporate Tax Base (CCCTB) is aimed at making it easier and cheaper to do business in the Single Market and… – Continue reading
The Indian government has collected more than Rs650bn (US$9.8bn or UK£8bn) in the form of cash and assets through a tax evasion amnesty scheme. For a four-month period, ending in September, the government offered tax cheats immunity from prosecution if they came forward, paid their evaded tax bill and stumped… – Continue reading
With the Internal Revenue Service (IRS), the tax-collection arm of the United States government, stepping up its global sweep to catch American individuals and corporations hiding their overseas earnings, the American Chamber of Commerce in Cambodia yesterday held a presentation for investors and financial institutions to make sure they are… – Continue reading
On October 26, Hong Kong’s Government launched a public consultation on the implementation of base erosion and profit shifting (BEPS) measures proposed by the OECD. “Hong Kong is supportive of international efforts to promote tax transparency and combat tax evasion,” said Secretary for Financial Services and the Treasury K C… – Continue reading
The European Commission has unveiled its latest plan to harmonise corporate tax. After two past failures, the executive hopes the recent flurry of tax scandals will give the project a new lease of life. The EU has revived its tax crusade with a new attempt to establish a Common Consolidated… – Continue reading
The International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD), the UN Department of Economic and Social Affairs (DESA), and the World Bank Group introduced a joint initiative, the Platform for Collaboration on Tax, to UN Member States. Marijn Verhoeven, World Bank Group, expressed excitement that the… – Continue reading
A new EU corporate tax proposal could fundamentally change how multinationals pay their tax bills in Ireland. It comes at a sensitive time for the State, following so closely after the commission ruled phone giant Apple tapped illegal tax breaks worth around €13bn. In proposals to be unveiled tomorrow, the… – Continue reading
With the exception of British Antarctica, the U.K.’s overseas territories and offshore dependencies are all surrounded by sun-winking ocean water. But that’s not their only common feature—they are all under increasing political pressure to become more transparent with their financial information. In a parliamentary report on tackling overseas corruption, the… – Continue reading
Indonesia’s government must make it clear to errant taxpayers that an amnesty program, which has revealed almost $300 billion in undeclared assets, is the last chance to fix their affairs before full penalties are applied, the Organisation for Economic Cooperation and Development said. “Authorities must communicate clearly that this offer… – Continue reading
Ecuadorean President Rafael Correa wants the country to consider a novel approach to limit the use of tax havens: preventing politicians from using them. Accompanied by leaders from social movements and political allies, Ecuadorean President Rafael Correa made the case before the constitutional court for a plebiscite to give lawmakers… – Continue reading
A United Nations human rights expert has urged the next UN secretary-general to make the elimination of tax havens a priority to ensure that corporations, billionaires and ‘kleptocrats’ pay their fair share of taxes. Speaking on Friday, American law professor Alfred de Zayas also urged Antonio Guterres, who will succeed… – Continue reading
The Financial Intelligence Unit (FIU) of Sri Lanka has entered into a Memorandum of Understanding with the Department of Inland Revenue to co-operate in the fight against money laundering and terrorist financing, including tax evasion. The agreement is to exchange information in order to facilitate investigations and prosecutions on money… – Continue reading
As international compliance efforts pass several new milestones, the Internal Revenue Service reminds U.S. taxpayers with undisclosed offshore accounts that they should use existing paths to come into full compliance with their federal tax obligations. Updated data shows 55,800 taxpayers have come into the Offshore Voluntary Disclosure Program (OVDP) to… – Continue reading
Pakistan’s authorities are making efforts to seek information about tax details of 270 offshore companies from nine known tax havens around the globe where 444 individuals have invested billions of dollars, and, finally, their names appeared through PanamaLeaks, The News has learnt. The cases of 444 individuals involving nine jurisdictions… – Continue reading
The narrowing figure of £36bn roundly condemned for ignoring estimated tens of billions lost in profit shifting and tax avoidance by multinationals Tax experts warned that HM Revenue & Customs was underestimating the size of Britain’s tax avoidance problem after the agency claimed that Britain’s annual tax shortfall was only… – Continue reading
An extensive tax treaty that would shield Chinese businesses operating in the Kingdom from double taxation, and vice versa, has been drafted and is expected to be approved imminently, according to a senior Cambodian tax official. Experts said yesterday the double taxation agreement (DTA) would create a clear legal framework… – Continue reading
Counsel and others who merely give advice on tax avoidance schemes without helping to design them should be excluded from a proposed new regime of sanctions, the Faculty of Advocates has recommended. In a submission to HM Revenue and Customs, the Faculty said it was unclear if advisers were intended… – Continue reading
FATCA disclosure agreement takes effect, worrying some Israeli-Americans Dual American-Israeli citizens finally need to pay up. After years of the US Internal Revenue Service gradually baring down on American citizens living in Israel who evaded reporting income or paying taxes and numerous rounds of amnesty for those belatedly coming forward,… – Continue reading
Proposed legislation is designed to curb the profit-shifting multinationals use to reduce tax liabilities on their income in Europe The European commission will redouble its crackdown on multinational tax avoidance next week with the relaunch of proposals to create an overarching corporation tax regime across all member states. The proposed… – Continue reading
Guyana and the United States (US) on Monday inked an agreement, clearing the way for this country to share bank account information about American citizens and permanent residents with the US to help stamp out offshore tax evasion. “Today’s signing makes a significant step forward in our countries’ efforts to… – Continue reading
One of the most common ways multinationals take advantage of current laws to reduce their tax bill is through what’s known as transfer pricing. Former Treasurer Wayne Swan last week accused mining giant BHP of “aggressive transfer pricing,” denying the Australian government A$5.7 billion in tax revenue. For most companies,… – Continue reading
The Lagos State Government has moved to streamline revenue collection in the state in a bid to nip issues of multiple taxation in the bud. There has been complaint by the public of alleged double taxation from Lagos State Government and Local Governments. Speaking at the Stakeholders’ Forum on Taxation… – Continue reading
U.S. companies operating contract manufacturers in Mexico can avoid double taxation between the United States and Mexico under a deal struck between their respective tax authorities and unveiled Friday by the IRS. So-called maquiladoras can avoid double taxation through a unilateral advance pricing agreement signed with the Servicio de Administración… – Continue reading
Expats who have money or assets outside Britain can expect to start receiving letters from the UK tax man soon. Hundreds of thousands of letters are being drafted for expats who have returned to the country after spells abroad and for expats considered UK taxpayers who have had overseas assignments…. – Continue reading
The finance department over the weekend said it has received the backing of the International Monetary Fund (IMF) on its planned comprehensive tax reform package, as well as proposals to relax the country’s bank secrecy law. The Department of Finance (DOF) said the IMF has given its nod to the… – Continue reading
Applicable to transfer pricing for MNCs whose consolidated annual revenue is over Rs 5,000 crore The finance ministry will issue rules and guidance to address some concerns and ambiguity over mandatory reporting norms with respect to transfer pricing for multinational companies whose consolidated annual revenue is over Rs 5,000 crore…. – Continue reading
The Inland Revenue Authority of Singapore (IRAS) has published detailed guidance on the implementation of a new country-by-country (CbC) reporting requirement in the territory. The guidance, released on October 10, sets out which entities are obliged to report and how to complete and submit a CbC report to IRAS. For… – Continue reading
In July 2016 the then Indonesian finance minister Bambang Brodjonegoro, in conjunction with the launch of the widely publicized tax amnesty program (TAP) for undeclared offshore assets, also laid out less publicized plans for a new tax haven on the islands of Bintan and Rempang (Proposed Tax Haven). A key… – Continue reading
Nigeria’s Federal Inland Revenue Service (FIRS) has announced that a tax amnesty is now in operation for undeclared tax liabilities for the three years from 2013 to 2015. To avoid the payment of tax penalties and interest for those years, taxpayers must declare their tax dues by November 24, 2016…. – Continue reading
Foreigners will come under a coordinated databank just after arrival so they could be traced until checkout and tax evasion by any of them prevented, officials said. They said a databank having networking with relevant nodal points would be developed under the National Board of Revenue (NBR). The NBR recently… – Continue reading
Accounts show each of the firm’s 682 workers took home average of £242,000 each in 2015 Facebook lavished £165million on its UK staff last year, while handing the taxpayer just £4million. Accounts show each of the firm’s 682 workers took home average of £242,000 each in 2015. The bumper payout… – Continue reading
Singapore is seeking more time to revise the two-decade old tax treaty with India, saying its investors need more time to shift to source-based taxation. India has, however, rejected any deferment in the revision of the treaty that will help prevent Singapore, which is the top source of FDI into… – Continue reading
During a recent speech, the Secretary for Financial Services and the Treasury, K C Chan, reiterated Hong Kong’s commitment to meeting the international standards on tax transparency, and to implementing the Organisation for Economic Co-operation and Development’s (OECD’s) base erosion and profits shifting (BEPS) package. In his speech on October… – Continue reading
EY announced today the results of a new tax survey at its 35th Annual International Tax Conference, “Unlocking the future.” The survey revealed that, more than ever, companies are experiencing an increasing number of audits and more aggressive enforcement from tax authorities around the world. According to the survey, nearly… – Continue reading
Ethiopia recently adopted new transfer pricing rules in the form of Directive 43/2015 (“the Directive”) issued by the Ministry of Finance and Economic Development. The Directive provides detailed guidance as to the application of Article 29 of the Income Tax Proclamation (ITP) 286/2002, which requires taxpayers to ensure transactions between… – Continue reading
The Indonesian government recently launched tax hunt on Google Indonesia. If Google were indeed guilty of tax avoidance, it would have to pay a huge price for its actions. But Google is not alone in avoiding paying tax to Indonesian government. Indonesians and Indonesian companies are squirrelling their wealths in… – Continue reading
Jakarta. Tax dodgers and taxpayers who have underreported their wealth in the past and who now seek to rectify the situation should join the tax amnesty program as they will not be able to hide once a system for the automatic exchange of financial information between states comes into effect… – Continue reading
The United States is recommending that Trinidad and Tobago pass the Foreign Account Tax Compliance ACT (FATCA) by February next year, providing a five-month breathing space for the country. US Ambassador John Estrada in a brief statement issued from Washington said he wanted to provide an update on FATCA after… – Continue reading
More than 2,000 files under review, 85 taxpayers under audit National Revenue Minister Diane Lebouthillier said in a statement Monday that a few thousand files are now being pursued by the tax agency after it sifted through the Panama Papers. Canadians implicated in the Panama Papers shouldn’t expect any leniency… – Continue reading
The threshold could be R5,400 crore of annual consolidated group revenue for the purpose of country-by-country reporting Not more than 120 India-headquartered firms — along with their global associates — are likely to be impacted by the base erosion and profit shifting (BEPS) protocol once it is implemented, as the… – Continue reading
House Democrats have introduced legislation that would require multinational corporations to disclose more information about the taxes they pay in other countries. The bill, known as the Corporate Transparency and Accountability Act, aims to shine more light on corporate tax avoidance strategies, requiring the disclosure of country-by-country and pre-tax profit… – Continue reading
The government has stepped up efforts to collect what it says are millions of dollars of outstanding tax liabilities from Singapore-based Google Asia Pacific Pte. Ltd., which has allegedly booked hefty revenue from Indonesian advertisers without paying proper taxes. The message to the tech giant is clear: we want a… – Continue reading
Seven private sector organisations Tuesday called on the Trinidad and Tobago government and opposition to put aside their differences and ensure the country meets the September 30 deadline for the Foreign Account Tax Compliance Act (FATCA). They also warned that failure to do so could result in ”serious negative consequences”… – Continue reading
