2017
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U.S. tax reform plan could have currency spillover effect: IMF's Obstfeld
A proposal to overhaul the U.S. tax code that favors exports over imports could have spillover effects to other economies as itwould strengthen the dollar, International Monetary Fund (IMF) chief economist Maurice Obstfeld said on Monday.
"There are significant spill-over effects thatwe are looking into," Obstfeld said, adding that G20 finance ministers and central bankerswill discuss the issue later thisweek at their meeting in Baden-Baden, Germany.
"There are significant spill-over effects thatwe are looking into," Obstfeld said, adding that G20 finance ministers and central bankerswill discuss the issue later thisweek at their meeting in Baden-Baden, Germany.
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News Analysis: The All-Purpose U.K. Anti-Hybrid Rules
What happenswhen a player puts an elbow in an opponent's face?
Referees' responses to the Argentine elbow, as it is often called, varywith the league. In France, it's no big deal. French matches are so physical -- to use the English euphemism -- that theywould endwith five on a side if every foulwere called. In Italy, an elbow has recently become a yellow card. In England, it's a red card. In America, it's a red card and an inquest. In Spain, there's no need to elbow anyone because players fall downwithout contact.
Referees' responses to the Argentine elbow, as it is often called, varywith the league. In France, it's no big deal. French matches are so physical -- to use the English euphemism -- that theywould endwith five on a side if every foulwere called. In Italy, an elbow has recently become a yellow card. In England, it's a red card. In America, it's a red card and an inquest. In Spain, there's no need to elbow anyone because players fall downwithout contact.
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U.S. Tax Changes May Spark Retaliation, Merkel to Tell Trump
German Chancellor Angela Merkelwillwarn U.S. President Donald Trump that a proposed tax overhaul could spark retaliatory measures, including higher tariffs for American companies, according to Der Spiegel magazine.
The German government is reviewing its responses to a border-adjustment tax,whichwould only tax U.S. corporations' imports and not their exports. Documents for Merkel's upcoming meetingwith Trump cited by Spiegel label the measure a "protective tariff" and say it violatesworld Trade Organization rules.
The German government is reviewing its responses to a border-adjustment tax,whichwould only tax U.S. corporations' imports and not their exports. Documents for Merkel's upcoming meetingwith Trump cited by Spiegel label the measure a "protective tariff" and say it violatesworld Trade Organization rules.
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Italy, Switzerland agree to exchange more tax information to fight evasion
Italian and Swiss tax authorities have signed an accord to improve the exchange of information to fight tax evasion, the Italian economy ministry said on Tuesday.
The agreement took effect at the start of this month and aims to further enhance transparency following a previous accordwhichwas introduced last summer, the ministry said in a statement.
It said the latest agreementwill help Italy obtain revenues from a tax amnesty aimed at raising 1.6 billion euros ($1.70 billion) this year, following 4 billion euros cashed in through the measure in 2016.
The agreement took effect at the start of this month and aims to further enhance transparency following a previous accordwhichwas introduced last summer, the ministry said in a statement.
It said the latest agreementwill help Italy obtain revenues from a tax amnesty aimed at raising 1.6 billion euros ($1.70 billion) this year, following 4 billion euros cashed in through the measure in 2016.
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Sixty Countries Expected to Sign Tax Agreement: OECD Official
The OECD expects at least 60 nations to sign an agreement implementing changes in the global tax system, according to an officialwith the organization.
Grace Perez-Navarro, deputy director for taxes at the Organization for Economic Cooperation and Development, said the total number of participants in the "multilateral instrument"wouldn't be clear until a signing ceremony planned for June 7. The agreementwould adopt several items from the OECD's Action Plan on Base Erosion and Profit Shifting (BEPS)ÔøΩits comprehensive rewrite of the global tax rulesÔøΩby changing aspects of existing double tax treaties. Those changes include new language for preventing abuse of treaties and a new definition for permanent establishments, or the taxable presence of a foreign entity not registered in a jurisdiction.
Grace Perez-Navarro, deputy director for taxes at the Organization for Economic Cooperation and Development, said the total number of participants in the "multilateral instrument"wouldn't be clear until a signing ceremony planned for June 7. The agreementwould adopt several items from the OECD's Action Plan on Base Erosion and Profit Shifting (BEPS)ÔøΩits comprehensive rewrite of the global tax rulesÔøΩby changing aspects of existing double tax treaties. Those changes include new language for preventing abuse of treaties and a new definition for permanent establishments, or the taxable presence of a foreign entity not registered in a jurisdiction.
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EU to Seek Clarity on U.S. Tax Plans at G-20 Summit
The EU has grown increasinglyworried about the tax reform that the new U.S. administration is preparing behind the scenes.
Experts from France, Germany, and the European Commission met in Brussels on February 28 to define a common line ahead of the G-20 meeting to be held March 17 and 18 in Baden-Baden, Germany.
Experts from France, Germany, and the European Commission met in Brussels on February 28 to define a common line ahead of the G-20 meeting to be held March 17 and 18 in Baden-Baden, Germany.
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U.K. Tax Rebellion Reminds May Brexit Allies Remain a Threat
The growing revolt over tax increases in the U.K. budget is a reminder for Theresa May that difficult members of her Conservative Party haven't gone away.
Just as she seemed to have tamed party rebels over Brexit, May found herself fighting a mutiny over taxes. And barely a day after the new policywas announced, she signaled there may be room for concessions.
Just as she seemed to have tamed party rebels over Brexit, May found herself fighting a mutiny over taxes. And barely a day after the new policywas announced, she signaled there may be room for concessions.
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IRS, Business, and OECD Representatives Weigh In on BEPS Progress
Progress on implementation of the OECD's base erosion and profit-shifting project has surpassed expectations, said Theodore Setzer, IRS assistant deputy commissioner (international),who recalled that a year ago, the challenges of the project seemed to loom larger than the opportunities.
Setzer listed reasons for his measured optimism during a panel discussion on the challenges of BEPS at the Pacific Rim Tax Institute in Redwood City, California, on March 9. He citedwork to finalize regulations for country-by-country reporting (T.D. 9773) development of draft instructions,work on a model bilateral CbC competent authority agreement, and progress on terms of reference and methods for the mutual agreement procedure forum.
Setzer listed reasons for his measured optimism during a panel discussion on the challenges of BEPS at the Pacific Rim Tax Institute in Redwood City, California, on March 9. He citedwork to finalize regulations for country-by-country reporting (T.D. 9773) development of draft instructions,work on a model bilateral CbC competent authority agreement, and progress on terms of reference and methods for the mutual agreement procedure forum.
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OECD To Hold Fourth Meeting On International VAT Reform In April
The OECD has announced the agenda and date for the fourth meeting of the OECD Global Forum on value-added tax (VAT), to be held on April 12-14, 2017.
The fourth meeting of the OECD Global Forum on VATwill focus in particular on the policy and operational challenges faced by tax authorities in the era of digital globalization, and on the efficient and the effective implementation of the standards and mechanisms for addressing these challenges recommended by the International VAT/GST Guidelines.
The fourth meeting of the OECD Global Forum on VATwill focus in particular on the policy and operational challenges faced by tax authorities in the era of digital globalization, and on the efficient and the effective implementation of the standards and mechanisms for addressing these challenges recommended by the International VAT/GST Guidelines.
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U.S. Emerging as Leading Tax, Secrecy Haven, EU Report Says
The U.S. is emerging as a "leading tax and secrecy haven for rich foreigners" because of its resistance to global tax disclosure standards and the array of tax-free facilities available for non-residents, according to a European Parliament report.
Released March 7ÔøΩtwoweeks before European Union lawmakers visitwashington D.C. and Delaware to probe money laundering and tax evasion issuesÔøΩ the report says U.S. states such as Nevada,wyoming, South Dakota and Delaware are attracting money flows from around theworld because of laws that permit beneficial owners of companies to remain anonymous.
Released March 7ÔøΩtwoweeks before European Union lawmakers visitwashington D.C. and Delaware to probe money laundering and tax evasion issuesÔøΩ the report says U.S. states such as Nevada,wyoming, South Dakota and Delaware are attracting money flows from around theworld because of laws that permit beneficial owners of companies to remain anonymous.
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The OECD's Multilateral Treaty Instrument and Its Impact on Dispute Resolution
On July 1, 2016, Latvia deposited its instrument of accession to the OECD Convention, thereby becoming the 35th member of the Organization for Economic Cooperation and Development. That modest expansion of membership, however, is dwarfed by the number of countries now participating in the OECD's taxwork "on an equal footing," thereby being treated as full memberswith the right to veto any proposals or reportswithwhich they disagree. More than 60 countrieswere directly involved in the formulation of the final Base Erosion and Profit Shifting reportswhich received approval from the G20 leaders in November 2015. But the BEPS project did not endwith the publication of those reports; soon thereafter, the OECD established an "inclusive framework" on implementation and monitoring of the BEPS measures. Details onwhat that involves are scarce, although the OECD has promised some form of monitoring of compliancewith the four BEPS "minimum standards," aswell as a peer review of implementation of the BEPS measures around theworld to ensure that no country gains an "unfair competitive advantage."
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U.N. Addresses BEPS Issues for Income From Services in Developing Nations
A country's tax base may be eroded if the country doesn't tax some income from services, or if it allows a deduction for payments for services against its tax base but doesn't tax those services, according to a U.N. portfolio. Erosion may also occur if the tax on the payments is less than the tax savings resulting from the deduction of the payments, the U.N. said.
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China promises $50bn in fresh corporate tax breaks
Chinese Finance Minister Xiao Jie is promising 350 billion yuan ($50.7 billion) in corporate tax breaks this year, aiming to stimulate the economy and keep companies frustratedwith heavy taxation from seeking greener pastures overseas.
The measures, targeting mainly manufacturers and small businesses, come on top of a tax overhaul that saved companies 570 billion yuan last year. "The goal is to further lighten the burden on companies," Xiao said in his first news conference since his appointment as minister last fall.
The measures, targeting mainly manufacturers and small businesses, come on top of a tax overhaul that saved companies 570 billion yuan last year. "The goal is to further lighten the burden on companies," Xiao said in his first news conference since his appointment as minister last fall.
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Netanyahu's Deregulation Chief Seeks to Cut Bureaucracy, Taxes
Israel is ratcheting up its deregulation efforts to stimulate economic growth and attract multinational companies, according to the director general of Prime Minister Benjamin Netanyahu's office.
Eli Groner,who coordinates among various government agencies to implement Netanyahu's economic policies, says regulations have been cut in 27 areas of the economy, from cosmetic imports to the hotel industry,with a goal of reaching 60 areas by the end of next year. Efforts to simplify regulationwere presented thisweek to the cabinet as part of awider two-year plan for government ministries.
Eli Groner,who coordinates among various government agencies to implement Netanyahu's economic policies, says regulations have been cut in 27 areas of the economy, from cosmetic imports to the hotel industry,with a goal of reaching 60 areas by the end of next year. Efforts to simplify regulationwere presented thisweek to the cabinet as part of awider two-year plan for government ministries.
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EU Proposes Willing States Should Harmonize Tax Regimes
The European Commission has outlined possible scenarios inwhich EU member states could cooperate more on tax. The Commission thisweek published itswhite Paper on the future of Europe.
The document presents five scenarios for the potential state of the Union by 2025. One of these scenarios is, "where certain member stateswant to do more in common, one or several 'coalitions of thewilling' [would] emerge towork together in specific policy areas."
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EU Mulls Tax Sanctions for Countries Branded Tax Havens
Countries that end up on the European Union's list of tax havens could subject companies operatingwithin their borders to tax sanctionsÔøΩsuch aswithholding taxes and denied deductions for royalty paymentsÔøΩdamaging the businesses' ability to offset losses in the jurisdictions.
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European Commission Launches Consultation on VAT Cooperation, Fraud
The European Commission on March 2 announced a public consultation on administrative cooperation and the fight against VAT fraud, acknowledging thatwhile the topics primarily concern tax administrations, the need for modernization also affects member-state businesses and citizens.
The commission is planning to update rules governing administrative cooperation and cross-border VAT fraud to improve the functioning of the single market and curb losses to EU member states, according to a commission press release. Because the single market guarantees free circulation of goods and services among member states, the correct application of VAT on cross-border transactions is a challenge for tax administrations, the commission said.
The commission is planning to update rules governing administrative cooperation and cross-border VAT fraud to improve the functioning of the single market and curb losses to EU member states, according to a commission press release. Because the single market guarantees free circulation of goods and services among member states, the correct application of VAT on cross-border transactions is a challenge for tax administrations, the commission said.
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My Big Fatca IRS
Almost since the Foreign Account Tax Compliance Act (Fatca) became law in 2010 to go after fat cats stashing money abroad, these pages have reported that it has led the IRS to treat law-abiding Americans as criminals. Turns outwe have alliesÔøΩat the IRS.
Buriedwithin the most recent report the IRS taxpayer advocate submitted to Congress in January is a section taking issuewith Fatca. "The IRS," says the report, "has adopted an enforcement-oriented regimewith respect to international taxpayers. Its operative assumption appears to be that all such taxpayers should be suspected of fraudulent activity, unless proven otherwise."
Buriedwithin the most recent report the IRS taxpayer advocate submitted to Congress in January is a section taking issuewith Fatca. "The IRS," says the report, "has adopted an enforcement-oriented regimewith respect to international taxpayers. Its operative assumption appears to be that all such taxpayers should be suspected of fraudulent activity, unless proven otherwise."
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News Analysis: Why the Swiss Referendum Matters for U.S. Tax Reform
On February 12 Swiss voters threw their government's commitments to the EU -- and the stability of many multinationals' European structures -- into disarray. In a referendum, they rejected a package of corporate tax reforms thatwere supposed to fulfill Switzerland's commitments to the EU and its obligations under the OECD's base erosion and profit-shifting project,while also providing sufficient incentives to keep companies that had been attracted to the country because of the favorable tax breaks.
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US companies would avoid EU state aid rules with Republican tax proposal
A planned reform of the US tax system designed to attract economic activity and jobs to the country could also put US companies beyond the reach of European state aid rules, an EU official told EURACTIV's media partner PaRR.
On 9 February, US President Donald Trump promised to announce a "phenomenal" tax reform in the next two or threeweeks.
On 9 February, US President Donald Trump promised to announce a "phenomenal" tax reform in the next two or threeweeks.
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Companies Get Draft Instructions for U.S. Global Tax Reports
U.S. multinational companieswith more than $850 million in annual consolidated gross income now have draft instructions for filing IRS reports on their global tax and profits.
The Internal Revenue Service added instructions to the draft Form 8975 and accompanying draft Schedule A it released in December 2016, companies that are the "ultimate parent" of global groups must report information including the amount of revenue, profit or loss, capital and accumulated earnings for each country of operation. The IRS noted that the instructions are a "draft as of February 23, 2017."
The Internal Revenue Service added instructions to the draft Form 8975 and accompanying draft Schedule A it released in December 2016, companies that are the "ultimate parent" of global groups must report information including the amount of revenue, profit or loss, capital and accumulated earnings for each country of operation. The IRS noted that the instructions are a "draft as of February 23, 2017."
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Brazil Outlines Process for Asking International Tax Questions
Brazil's federal revenue service is continuing to adapt the country's tax rules to OECD recommendations, as shown in recent guidance on how companies should seek help from the government on international tax questions.
Normative Instruction 1689, issued Feb. 21, spells out the requirements for companies to request a consultation on international taxation questions including those dealingwith transfer pricing, a Brazilian program providing tax incentives for the electronics industry and the opening of foreign offices.
Normative Instruction 1689, issued Feb. 21, spells out the requirements for companies to request a consultation on international taxation questions including those dealingwith transfer pricing, a Brazilian program providing tax incentives for the electronics industry and the opening of foreign offices.
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European Companies Push Back on CCCTB Proposal
The European Commission's revised proposal for a common consolidated corporate tax base (CCCTB) has metwith resistance from European companies,which see the plan as far less business-friendly than the 2011 proposal.
The original proposalwas essentially pro-business, an EU official told Tax Analysts, adding that the only antiabuse provision included in 2011was requiring companies joining the system to commit for at least five years. Not only does the commission's new plan, announced in October 2016, make the common base mandatory for large companies, it also leaves the consolidation aspect for later as part of a separate legislative proposal.
The original proposalwas essentially pro-business, an EU official told Tax Analysts, adding that the only antiabuse provision included in 2011was requiring companies joining the system to commit for at least five years. Not only does the commission's new plan, announced in October 2016, make the common base mandatory for large companies, it also leaves the consolidation aspect for later as part of a separate legislative proposal.
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New CCCTB Push Faces Early Criticism
EU member states have voiced fresh criticism of the proposal put forward by the European Commission to establish a common consolidated corporate tax base (CCCTB) in the EU. After a first unlucky attempt in 2011, the commission tried to make its plan more attractivewith tax incentives such as a super deduction for research and development costs and the so-called notional interest deduction inspired by Italy's.
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All Eyes on White House's Border Adjustment Tax Decision
The fate of a controversial import tax in the House tax overhaul plan now restswith thewhite House after pointed criticism from several Republican senators in the pastweek.
House Speaker Paul D. Ryan (R-Wis.),ways and Means Chairman Kevin Brady (R-Texas) and other supporters,who have been backed into a corner about the 20 percent import tax, now have their hopes set on President Donald Trump.
House Speaker Paul D. Ryan (R-Wis.),ways and Means Chairman Kevin Brady (R-Texas) and other supporters,who have been backed into a corner about the 20 percent import tax, now have their hopes set on President Donald Trump.
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Swiss want Plan B for tax reform by mid-2017
The Swiss government told the finance ministry onwednesday to come upwith a Plan B by mid-year for eliminating ultra-low tax rates for multinationals after voters rejected the original proposal, setting up a clashwith other rich countries.
The Swiss had promised to meet international standards and end by 2019 special low tax rates that benefit about 24,000 companies, a deadline that Finance Minister Ueli Maurer has saidwas dashed by this month's referendum.
The Swiss had promised to meet international standards and end by 2019 special low tax rates that benefit about 24,000 companies, a deadline that Finance Minister Ueli Maurer has saidwas dashed by this month's referendum.
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Developing Countries Lack Political Will to Adopt AEOI, Says OECD Official
As the OECD strives to help developing countries enhance their tax systems through the automatic exchange of information (AEOI), it has run into several problems, including a lack of awareness and politicalwill to make the necessary changes, according to an OECD official.
Speaking at a February 16 tax fairness conference organized by the Department of Taoiseach in Dublin, Monica Bhatia, head of the Secretariat of the Global Forum on Transparency and Exchange of Information for Tax Purposes, said thatwhile the Global Forum has seen great success in the last five years, it is now facing several challenges in its mission to help get as many countries signed onto AEOI as possible.
Speaking at a February 16 tax fairness conference organized by the Department of Taoiseach in Dublin, Monica Bhatia, head of the Secretariat of the Global Forum on Transparency and Exchange of Information for Tax Purposes, said thatwhile the Global Forum has seen great success in the last five years, it is now facing several challenges in its mission to help get as many countries signed onto AEOI as possible.
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Uncertainty and concern follow voter rejection of Switzerlands company tax reform
Speaking to Tribune de Genève, Serge Dal Busco, Geneva's minister of finance, voiced his concerns about last Sunday's rejection of Switzerland's planned company tax reform. At the same time he remains optimistic about the chances of a new federal corporate tax reform project.
His biggest concern is that Bern might backtrack on its promise to help the cantons replace the lost tax revenue created by lowering standard tax rates. Switzerland's federal government promised around CHF 1.2 billion to the cantons and communes, had the vote been accepted.
His biggest concern is that Bern might backtrack on its promise to help the cantons replace the lost tax revenue created by lowering standard tax rates. Switzerland's federal government promised around CHF 1.2 billion to the cantons and communes, had the vote been accepted.
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Linking repatriation to job creation
Householdwords, an expression coined bywilliam Shakespeare, are those familiar to everyone and it seems "tax repatriation" has now joined the club. That is mainly because the president and House GOP members have trumpeted an idea to incentivize multinationals to bring home some $2.5 trillion in cash they have stashed offshore, and their CEOs have enthusiastically joined the chorus.
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Swiss Seek New Tax Allure as Vote Hurts Pro-Business Image
Switzerland needs to burnish its appeal to multinationals by presenting a simplified plan to lower corporate tax rates after voters rejected proposals they fearedwould squeeze public services and shift the fiscal burden onto individuals.
Voters rejected the reform package by 59 percent to 41 percent on Sunday following more than a decade of pressure on Switzerland from the European Union to scrap tax breaks for multinationals.
Voters rejected the reform package by 59 percent to 41 percent on Sunday following more than a decade of pressure on Switzerland from the European Union to scrap tax breaks for multinationals.
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Proposed Directive Would Expand EU Arbitration Convention to All Business Tax Disputes
A proposed directive on double taxation dispute resolution mechanismswould simplify the European Union's tax system by expanding the scope of the EU arbitration convention to cover all questions related to business taxes.
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Border Tax Could Upend Global Markets, but Investors Shy Away From Any Bets
A Republican tax plan has analysts predicting seismic shifts in global markets, from a double-digit surge in U.S. oil prices to the strongest dollar since the 1980s. But so far, few investors arewilling to bet on it.
Markets are struggling to size up the far-reaching impact of the so-called border adjustment,whichwould tax imports at a rate of 20%while exempting exports. The aim is to make the U.S. a more attractive place for businesses to invest,while also raising $1 trillion to offset Republicans' proposed tax-cut plans.
Markets are struggling to size up the far-reaching impact of the so-called border adjustment,whichwould tax imports at a rate of 20%while exempting exports. The aim is to make the U.S. a more attractive place for businesses to invest,while also raising $1 trillion to offset Republicans' proposed tax-cut plans.
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India Leads Crackdown on Deviant Shell Companies to Curb Tax Evasion
In yet another move to tackle its "black money" economy, India has introduced new measures to discourage shell companies from engaging in money laundering and tax evasion, including the creation of a task force to monitor government action against such companies.
The Indian Ministry of Finance on February 10 announced that senior officials from several government departments met at Prime Minister Narendra Modi's office to examine how shell companies in India function in order "to prevent their misuse for money laundering and tax evasion," especially as the country continues its efforts to find black money, or undeclared assets.
The Indian Ministry of Finance on February 10 announced that senior officials from several government departments met at Prime Minister Narendra Modi's office to examine how shell companies in India function in order "to prevent their misuse for money laundering and tax evasion," especially as the country continues its efforts to find black money, or undeclared assets.
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Swiss Reject Tax Reform, Threatening Countrys Competitive Edge
Switzerland shot down the government's plan to reform corporate taxation, a decision that risks hurting its appeal as a place for multinational companies.
After opponents labeled the reform a series of "complicated tax tricks," voters opposed it by 59 percent to 41 percent, the federal chancellery said on Sunday. Polls had suggested the electoratewas evenly split on the measure,whichwould have given companies reductions for income from patents and research and development activities.
After opponents labeled the reform a series of "complicated tax tricks," voters opposed it by 59 percent to 41 percent, the federal chancellery said on Sunday. Polls had suggested the electoratewas evenly split on the measure,whichwould have given companies reductions for income from patents and research and development activities.
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Border adjustability could be double-edged sword for tax avoidance
House Republicans' tax-reform plans could go a longway towards quashing the tricks big companies have used to avoid paying taxes ÔøΩ if lawmakers don't inadvertently open up newways to game the system.
Their "border adjustment" proposal, now at the center ofwashington's tax-reform debate,would make inversions obsolete, alongwith other corporate tax-avoidance strategies that have frustrated lawmakers for years.
Their "border adjustment" proposal, now at the center ofwashington's tax-reform debate,would make inversions obsolete, alongwith other corporate tax-avoidance strategies that have frustrated lawmakers for years.
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Banks take bigger role in Latin America fight against tax evasion
When Argentina launched a tax amnesty program last year to bring billions of dollars back into the country, it found support from an unlikely corner: the bankswhose clients had stashed money abroad.
President Mauricio Macri had no shortage of motivation to initiate the amnesty plan. Some $400 billion in undeclared fundswas being held outside Argentina, the economywas in recession and the government badly needed to boost revenues.
President Mauricio Macri had no shortage of motivation to initiate the amnesty plan. Some $400 billion in undeclared fundswas being held outside Argentina, the economywas in recession and the government badly needed to boost revenues.
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Gold Stashed in Bag Shows Hurdles in Italys Tax-Evasion Fight
On the day Italy claimed an unprecedented victory campaign against tax evasion, 125 gold coins found during a police check on a train from Switzerland come as a reminder of how long the road to compliance still is.
Italy's tax agency got about 19 billion euros ($20 billion) from cracking down on tax evasion last year, its head Rossella Orlandi told reporters at a press conference Thursdaywith Finance Minister Pier Carlo Padoan.
Italy's tax agency got about 19 billion euros ($20 billion) from cracking down on tax evasion last year, its head Rossella Orlandi told reporters at a press conference Thursdaywith Finance Minister Pier Carlo Padoan.
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Apple Decision Has Damaged BEPS Project, Irish Tax Expert Says
The European Commission's recent decision in its state aid case against Apple has not only been detrimental to Ireland's tax sovereignty, but it has also been damaging to the effective implementation of the OECD's base erosion and profit-shifting project, according to the tax director of a major Irish accounting body.
Speaking before the Irish Committee on Finance, Public Expenditure and Reform, and Taoiseach on February 7, Brian Keegan, director of taxationwith Chartered Accountants Ireland, said therewere "13 billion reasons" forwanting to accept the commission's decision against Apple, but itwould be a "false economy to do so."
Speaking before the Irish Committee on Finance, Public Expenditure and Reform, and Taoiseach on February 7, Brian Keegan, director of taxationwith Chartered Accountants Ireland, said therewere "13 billion reasons" forwanting to accept the commission's decision against Apple, but itwould be a "false economy to do so."
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Countries Need More Time for Tax Reporting: Securities Group
Foreign banks and other companies are strugglingwith last-minute requirements as they try to identify foreign owners of income subject to U.S.withholding to the IRS, the Securities Industry and Financial Markets Association said.
The group said in a letter released Feb. 7 that the Internal Revenue Service didn't leave enough time in Dec. 30, 2016, guidance for these financial institutions to include taxpayer identification numbers for "beneficial owners" and dates of birth for individuals. The Jan. 1, 2017, effective date has left those affected scrambling.
The group said in a letter released Feb. 7 that the Internal Revenue Service didn't leave enough time in Dec. 30, 2016, guidance for these financial institutions to include taxpayer identification numbers for "beneficial owners" and dates of birth for individuals. The Jan. 1, 2017, effective date has left those affected scrambling.
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Tax Overhaul Bill Design Will Address Import Concerns: Brady
House Republicans crafting a tax overhaul plan are exploringways to design a bill thatwill allay concerns about a proposed import tax,ways and Means Chairman Kevin Brady (R-Texas) said at awashington forum.
Brady said at a Georgetown Law School forum that he has been asking for "ideas to make surewe get the design right, the mechanics right and the transition right." But therewould be no special exceptions for any kind of importers, he said.
Brady said at a Georgetown Law School forum that he has been asking for "ideas to make surewe get the design right, the mechanics right and the transition right." But therewould be no special exceptions for any kind of importers, he said.
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News Analysis: Canada Dubbed World's Newest Tax Haven
Canada's pristine reputation is being used to make questionable financial transactions appear more palatable, and the country is increasingly being promoted as a place to hidewealth, according to an investigation by the Toronto Star and CBC/Radio-Canada.
Documents obtained by the International Consortium of Investigative Journalists revealed that Mossack Fonseca, the law firm at the center of the Panama Papers, "actively marketed Canada as a tax haven and established shell companies [there] to avoid taxes," according to a report on the investigation published by the Star in four installments, the last posted on January 27.
Documents obtained by the International Consortium of Investigative Journalists revealed that Mossack Fonseca, the law firm at the center of the Panama Papers, "actively marketed Canada as a tax haven and established shell companies [there] to avoid taxes," according to a report on the investigation published by the Star in four installments, the last posted on January 27.
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Beijing warns U.S. over high taxes on Chinese steel products
China is disappointed at continued high U.S. tax rates on Chinese steel products andwill take necessary steps to protect the rights of its enterprises, a Ministry of Commerce official said on Saturday.
The United States moved closer to slapping duties on imports of stainless steel sheet and strip from China thisweek, issuing a final determination that the productswere being subsidized and dumped in the U.S. market at below fair value.
The United States moved closer to slapping duties on imports of stainless steel sheet and strip from China thisweek, issuing a final determination that the productswere being subsidized and dumped in the U.S. market at below fair value.
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The Angolan Tax Reform Project: Lessons for Effective Transformation in Emerging Markets
Angola's Tax Reform Project is the result of many factors. The international economic crisis in 2010 hit hard, affecting growth and investment in Angola,with a marked effect on the GDP. The crisis exposed the nation's heavy dependence on oil revenue, its outdated tax system, and its ineffective tax administration, all ofwhich highlighted the need for a major tax restructuring.
Thewide-ranging Tax Reform Project in Angola has included the redrafting of tax statutes, the identification of existing tax loopholes, and the introduction ofwhatwe call "quickwins." It also entailed the creation of an effective tax enforcement system, improved collection mechanisms, transformed audit procedures, and a newly designed administrative organization, and the development of the IT and human resources needed to support these efforts.
Thewide-ranging Tax Reform Project in Angola has included the redrafting of tax statutes, the identification of existing tax loopholes, and the introduction ofwhatwe call "quickwins." It also entailed the creation of an effective tax enforcement system, improved collection mechanisms, transformed audit procedures, and a newly designed administrative organization, and the development of the IT and human resources needed to support these efforts.
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House Cash Flow Tax Plan Could Put U.S. in Difficult Position
As the tax reform debate heats up on Capitol Hill, tax expertswere on hand to examine the destination-based cash flow tax (DBCFT) proposal offered by House Republicans,which one expert argued had several critical shortcomings.
"It puts us between a rock and a hard place," Edward Kleinbard of the University of Southern California Gould School of Law said at an event sponsored by the Levin Center atwayne State University Law School inwashington on January 31. Kleinbard argued that its economic effects depend entirely on currency exchange rate adjustment, orwhat he referred to as "fx magic" -- a theory that he said might be true. He added that the tax resembled a Rorschach testwith numerous interpretations. "If fx magic does not happen, then Joe Consumer faces higher prices atwalmart," he said. "If it does happen, Joe Consumer does not face higher prices atwalmart, and every investor in the United States collectively . . . loseswhat in the aggregate is trillions of dollars by virtue of the U.S. dollar appreciating so dramatically that all investments in foreign securities go down in value."
"It puts us between a rock and a hard place," Edward Kleinbard of the University of Southern California Gould School of Law said at an event sponsored by the Levin Center atwayne State University Law School inwashington on January 31. Kleinbard argued that its economic effects depend entirely on currency exchange rate adjustment, orwhat he referred to as "fx magic" -- a theory that he said might be true. He added that the tax resembled a Rorschach testwith numerous interpretations. "If fx magic does not happen, then Joe Consumer faces higher prices atwalmart," he said. "If it does happen, Joe Consumer does not face higher prices atwalmart, and every investor in the United States collectively . . . loseswhat in the aggregate is trillions of dollars by virtue of the U.S. dollar appreciating so dramatically that all investments in foreign securities go down in value."
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EU Nations Set Up Panels, Mini-Inquiries After Panama Leaks
Some European Union nations are scrambling to decipher and act on Panama Papers leaks that revealed 200,000 offshore entities held bywealthy individuals and businesses from across the globe.
Lawmakers from the Netherlands, Belgium and Austria outlined the experiences of panels launched by their governments following the massive leak of 10 million documents from the Panama law firm Mossack Fonseca & Co. during a Jan. 31 meeting jointly held by the European Parliament Committee on Economic and Monetary Affairs and Panama Papers investigative committee.
Lawmakers from the Netherlands, Belgium and Austria outlined the experiences of panels launched by their governments following the massive leak of 10 million documents from the Panama law firm Mossack Fonseca & Co. during a Jan. 31 meeting jointly held by the European Parliament Committee on Economic and Monetary Affairs and Panama Papers investigative committee.
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Irish showdown with Brussels fizzles in Dublin corral
Furious over the Commission'swar on their country's tax policies, Irish lawmakers dragged their Danish antagonist up from Brussels for a showdown and presumably a chewing out over the Apple case.
Once in their den Tuesday ÔøΩ after posingwith supposed nemesis Commissioner Margrethe Vestager for photos, takenwith iPhones ÔøΩ the EU's antitrust czar barely broke a sweat.
Once in their den Tuesday ÔøΩ after posingwith supposed nemesis Commissioner Margrethe Vestager for photos, takenwith iPhones ÔøΩ the EU's antitrust czar barely broke a sweat.
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Swiss vote on multinational tax perks in February referendum
U.S. medical implant maker Zimmer Biomet's decision on a potential $40 million investment in its Swiss factory has been put on hold until the outcome of a referendum next month on tax reform.
A long-standing tax break that has attracted thousands of companies to Switzerland is set to go and the issue for Zimmer and some 24,000 international firms is how the new regimewill stack up against other low-tax jurisdictions.
A long-standing tax break that has attracted thousands of companies to Switzerland is set to go and the issue for Zimmer and some 24,000 international firms is how the new regimewill stack up against other low-tax jurisdictions.
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Economic Analysis: New Treasury Studies Lean in Favor of Cash Flow Tax
Immediately before President Trump's inauguration, the tax staff at Treasury issued two studies on business tax reform. The first study, a 71-page report analyzing the current system and prospects for reform, included a discussion ofwhy conventional 1986-style tax reform may not be an attractive option. The second, a 21-pageworking paper by two Treasury economists (not necessarily expressing official Treasury views), used massive amounts of corporate tax return data to analyze the revenue effects of replacing the current U.S. corporate taxwith a destination-based cash flow tax and provided commentary on the economic impact of that change.
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Multinationals Concerned About Misuse of CbC Reports
Now that multinational enterprises are preparing detailed country-by-country reports for sharing among tax authoritiesworldwide, practitioners are divided aboutwhether some of the tax agencies receiving the informationwill keep the reports confidential andwhether the reports could be improperly relied on for making transfer pricing assessments.
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New Global Tax Rules Have Uncertain Impact on Companies: GAO
New global tax rules from the OECDwill likely have a small administrative cost for the IRS but could put uncertain compliance costs on multinational companies, a Government Accountability Office report said.
The report, sent to Senate Finance Committee Chairman Orrin G. Hatch (R-Utah), also said the ruleswould have uncertain economic effects but could have a small impact on U.S. employment and investment.
The report, sent to Senate Finance Committee Chairman Orrin G. Hatch (R-Utah), also said the ruleswould have uncertain economic effects but could have a small impact on U.S. employment and investment.
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