Int'l Tax News
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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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Flexibility Key to EU Combating Tax Evasion, Professor Says
The European Parliament's Committee of Inquiry into Money Laundering, Tax Avoidance and Tax Evasion (PANA) must take into account that patterns of tax evasion vary significantly among member states, an academic told members of the committee January 26.
"It doesn't help to have a one-size-fits-all approach because then you may have [legal compliance] in the books but you don't have it in reality," said Brigitte Unger, an economics professor at Utrecht University in the Netherlands.
"It doesn't help to have a one-size-fits-all approach because then you may have [legal compliance] in the books but you don't have it in reality," said Brigitte Unger, an economics professor at Utrecht University in the Netherlands.
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Trump Open to 20 Percent Tax to Pay for Mexico Border Wall
President Donald Trump is considering paying for thewall on the U.S.-Mexico border by imposing a 20 percent tax on all imports from Mexico, according towhite House press secretary Sean Spicer.
The plan that is taking shape now looks at "using comprehensive tax reform as a means to tax imports from countries thatwe have a trade deficit from, like Mexico," Spicer said Jan. 26, according to awhite House press pool report.
The plan that is taking shape now looks at "using comprehensive tax reform as a means to tax imports from countries thatwe have a trade deficit from, like Mexico," Spicer said Jan. 26, according to awhite House press pool report.
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U.K. Opposition Party Tables Anti-Tax-Haven Amendment to Brexit Bill
The U.K. opposition Labour Party has tabled several amendments to a government bill thatwould give Prime Minister Theresa May the power to begin Britain's formal exit from the EU, including a provision to prevent May from turning the U.K. into a tax haven.
David Davis, the British secretary of state for exiting the European Union, on January 26 introduced the three-page European Union (Notification ofwithdrawal) Bill to the House of Commons,which, if approved,will allow May to trigger article 50 of the Treaty on European Union to startwithdrawing from the EU.
David Davis, the British secretary of state for exiting the European Union, on January 26 introduced the three-page European Union (Notification ofwithdrawal) Bill to the House of Commons,which, if approved,will allow May to trigger article 50 of the Treaty on European Union to startwithdrawing from the EU.
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Tax Havens and the Transparency Wave of International Tax Legalization
Tax havens have posed an increasingly important challenge to theworld economy, yet they receive little attention in the international economic law and policy literature. This relative neglect springs largely from taxation's tangential connectionwith the major structures of international economic governance. But a highly developed treaty regime has been in place for decades.
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Destination-based Cash Flow Taxation
This paper sets out a possible approach to the international taxation of corporate profit: a destination-based cash flow tax (DBCFT). This option is one of a number that have been considered over the last three years by a group of economists and lawyers, chaired by Michael Devereux. The other current members of the group are Alan Auerbach, Michael Keen, Paul Oosterhuis,wolfgang Schön and John Vella.
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Euro group chief warns Britain against tax haven temptation
The head of the council of euro zone finance ministers said Britainwould be taking a "crazy step backwards" if it opted to turn itself into a tax haven after leaving the European Union,warning that such a movewould hurt both Britain and the EU.
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Mexico Likely to Retaliate Against Border Adjustment Tax
A Republican proposal for a border tax that boosts exports could push Mexico to do the same, according to a former trade minister.
A reform package developed by House Republicans for a corporate tax overhaulÔøΩincluding a border tax adjustment measure thatwould effectively subsidize exports and tax importsÔøΩwould likely drive Mexico to adopt similar measures, according to Luis de la Calle, the former undersecretary for international business negotiations under the Vicente Fox administration (2000-06).
A reform package developed by House Republicans for a corporate tax overhaulÔøΩincluding a border tax adjustment measure thatwould effectively subsidize exports and tax importsÔøΩwould likely drive Mexico to adopt similar measures, according to Luis de la Calle, the former undersecretary for international business negotiations under the Vicente Fox administration (2000-06).
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OECD, Major Organizations Recommend a 'Realistic' Approach to Comparability
Instead of using the profit-split methodwhenever local comparables are scarce, tax authorities in developing countries should apply one-sided transfer pricing methods using a combination of elective safe harbors, relaxed geographic comparability standards, and regional data collection initiatives, according to draft recommendations released by the Platform for Collaboration on Tax.
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Mexico set to 'mirror' policy on any U.S. trade tax change: minister
Mexico's economy minister said his countrywas ready to renegotiate trade ruleswith the United States and that any change in U.S. tax policy that affected importswould have to be counteredwith a "mirror action" in Mexico.
U.S. President Donald Trump told a meetingwith U.S. executives on Monday that companieswould face a "major border tax" if they shifted jobs outside the United States. Such a measure could affect Mexico's exports to the United States, its top trading partner.
U.S. President Donald Trump told a meetingwith U.S. executives on Monday that companieswould face a "major border tax" if they shifted jobs outside the United States. Such a measure could affect Mexico's exports to the United States, its top trading partner.
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Trump and VAT: NAFTA, Trade Barriers, and Retaliatory Tariffs
During the first presidential debate, Donald Trump argued that the VAT operates as a trade barrier to U.S. business interests around the globe. In particular, he pointed to the North American Free Trade Agreement, and he singled out Mexico as a special concern. Trump also identified China as a concern, saying hewas troubled both by China's VAT and by the nation's alleged currency manipulation.
A discussion of VAT as a trade barrier to U.S. firms is potentiallywide-ranging and cannot be fully accomplished here. To fit in a single article, the scope must be narrowed. The NAFTA agreement between the U.S., Mexico, and Canada provides an optimal point of focus.
A discussion of VAT as a trade barrier to U.S. firms is potentiallywide-ranging and cannot be fully accomplished here. To fit in a single article, the scope must be narrowed. The NAFTA agreement between the U.S., Mexico, and Canada provides an optimal point of focus.
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News Analysis: What's Next for the OECD Under Trump?
Over the past few years, the OECD has consolidated and strengthened its position as the leading international tax rulemaker. But the new Trump administration in the United Stateswill likely call into question the organization's more expansive role, and possibly even its continued relevance.
Through its base erosion and profit-shifting project, the OECD haswreaked havoc on the tax planning strategies of multinational taxpayerswhile at the same time successfully portraying itself as an aid to governments looking for additional revenue.with various initiatives -- including the Global Forum on Transparency and Exchange of Information for Tax Purposes, the Forum on Tax Administration, and the new inclusive framework -- it has expanded its reach beyond its member countries to take on a role as the leader for countries developed and developing.
Through its base erosion and profit-shifting project, the OECD haswreaked havoc on the tax planning strategies of multinational taxpayerswhile at the same time successfully portraying itself as an aid to governments looking for additional revenue.with various initiatives -- including the Global Forum on Transparency and Exchange of Information for Tax Purposes, the Forum on Tax Administration, and the new inclusive framework -- it has expanded its reach beyond its member countries to take on a role as the leader for countries developed and developing.
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Advocate general: Gibraltar and UK one entity on tax issues
An advocate general for Europe's highest court said Thursday the United Kingdom and Gibraltar should be treated as "one entity" in their freedom to provide services.
"The application of EU law to Gibraltar does not create new or supplementary rights between the U.K. and Gibraltar that are in addition to those flowing from U.K. and Gibraltar constitutional law,"wrote Advocate General Maciej Szpunar. The European Court of Justice usually follows the line of thinking of its advocate generals, andwill rule on the case in the coming months.
"The application of EU law to Gibraltar does not create new or supplementary rights between the U.K. and Gibraltar that are in addition to those flowing from U.K. and Gibraltar constitutional law,"wrote Advocate General Maciej Szpunar. The European Court of Justice usually follows the line of thinking of its advocate generals, andwill rule on the case in the coming months.
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Lawmakers reject EU laundering blacklist, want tax havens included
European Union lawmakers rejected on Thursday an EU blacklist of ten countries at risk of facilitating money laundering or terrorist financing on the grounds that the list is too short and needs to be expanded to include tax havens.
In a bid to cut terrorist funding after January 2015 attacks on French magazine Charlie Hebdo, the EU adopted stricter rules against money laundering and began naming countrieswith legal loopholes that could be exploited by militant organizations to get funding.
In a bid to cut terrorist funding after January 2015 attacks on French magazine Charlie Hebdo, the EU adopted stricter rules against money laundering and began naming countrieswith legal loopholes that could be exploited by militant organizations to get funding.
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IRS Moves to Curtail Cross-Border Partnership Transfers
The IRS on January 18 released temporary and final regulations on cross-border partnership transfers that disallow nonrecognition treatment to some transfers of built-in gain property to partnershipswith foreign partners.
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U.K. Opts for Clean Break from EU, Prompting Tax Haven Fears
British Prime Minister Theresa May has confirmed that the U.K.will leave the EU single market and seek a bespoke free trade dealwith the bloc, prompting concerns that her governmentwill use the threat of turning the U.K. into a tax haven as leverage in negotiationswith the EU.
In a highly anticipated January 17 speech, May outlined a general strategy for Britain to leave the EU, following the controversial June 2016 referendum vote, emphasizing that the U.K. is not seeking any kind of arrangement that leaves Britain "half in, half out."
In a highly anticipated January 17 speech, May outlined a general strategy for Britain to leave the EU, following the controversial June 2016 referendum vote, emphasizing that the U.K. is not seeking any kind of arrangement that leaves Britain "half in, half out."
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Swedish Tax Agency Opposes Financial Industry Tax
A Swedish government plan to introduce a tax on banks and other financial institutions is prompting criticism from an official at the nation's tax agency.
Tomas Algotsson, head of unit at the agency's legal department, told the Dagens Industri (DI) newspaper Jan. 15 that the proposed taxwould increase administrative burdens both for companies and the tax authority, Skatteverket.
Tomas Algotsson, head of unit at the agency's legal department, told the Dagens Industri (DI) newspaper Jan. 15 that the proposed taxwould increase administrative burdens both for companies and the tax authority, Skatteverket.
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Globalism vs. Populism in the International Tax World
Adoption of the base erosion and profit shifting (BEPS) action items in specific countries can be expected to alter traditional multi-national enterprises (MNE) tax strategy processes. In this regard, it is appropriate to note that tax authorities and the Organization for Economic Co-operation and Development (OECD) often seem to overlook, or conveniently ignore, that MNE strategies are often a function of the rules established by countries to develop their own tax base (at the expense of other countries). In otherwords, countries, in their respective self-interests, grant incentives of various sorts to encourage economic investment. MNEs take advantage of these incentives to minimize their tax liabilities,which the BEPS process views as, somehow, inappropriate behavior of MNEs denuding the tax base of other countries.
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U.A.E. Ratifies Tax Instruments With 12 Countries
United Arab Emirates President Khalifa bin Zayed Al Nahyan has issued federal decrees ratifying the pending income tax treatieswith Belize, Comoros, Jordan, and Macedonia, and the pending tax information exchange agreementswith Argentina, Colombia, Denmark, Faroe Islands, Finland, Iceland, Norway, and Sweden, according to a U.A.E. government news release.
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House Republican Blueprint: A destination based cash-flow tax
The increased potential for comprehensive tax reform in 2017 has put a spotlight on the House Republican Blueprint, released by House Speaker Paul Ryan (R-WI) andways and Means Committee Chairman Kevin Brady (R-TX) last June. The Blueprint is the likely starting point for drafting tax reform legislation in the House. The business provisions of the Blueprintwould radically transform the existing corporate income tax and individual income tax on pass-through business income into a consumption-based tax by providing for "cash-flow" taxation and border adjustability. This Tax Insight provides more detail on these business provisions and discusses the impact the Blueprintwould have on US competitiveness, the potential market impact of border adjustability, and the change itwould represent in the taxation of cross-border income.
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France Must Slash Corporate Tax Rate to Compete in EU, Advisory Body Says
France should lower its corporate tax rate from 33.3 percent to 25 percent, the average rate among the major European economies, if itwants to remain competitivewith other EU member states, according to a French government advisory council.
In its January 12 report, le Conseil des prélèvements obligatoires (CPO), a government advisory council associatedwith, but separate from, the French Court of Auditors, noted that the French corporate tax rate faces two challenges: the mobility of capital, companies, and individuals; and the intense competition between countries. Although the French government already plans to gradually reduce the rate to 28 percent by 2020, it must aim for a lower, more harmonized ratewith its European partners, the report says.
In its January 12 report, le Conseil des prélèvements obligatoires (CPO), a government advisory council associatedwith, but separate from, the French Court of Auditors, noted that the French corporate tax rate faces two challenges: the mobility of capital, companies, and individuals; and the intense competition between countries. Although the French government already plans to gradually reduce the rate to 28 percent by 2020, it must aim for a lower, more harmonized ratewith its European partners, the report says.
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IMF boosts U.S. growth forecasts on Trump spending, tax plans
The International Monetary Fund on Monday said the U.S. economywould grow faster than previously expected in 2017 and 2018 based on the incoming Trump administration's tax and spending plans, but it kept its global growth forecasts unchanged due toweakness in some emerging markets.
Updating itsworld Economic Outlook, the IMF forecast overall global growth at 3.4 percent for 2017 and 3.6 percent for 2018, unchanged from October. That compared to 3.1 percent in 2016, theweakest year since the 2007-2009 financial crisis.
Updating itsworld Economic Outlook, the IMF forecast overall global growth at 3.4 percent for 2017 and 3.6 percent for 2018, unchanged from October. That compared to 3.1 percent in 2016, theweakest year since the 2007-2009 financial crisis.
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The worrying macro-economics of US border taxes
The financial markets have begun towake up to the fact that the Republican reforms to US corporate taxationwill probably include important new "border adjustments" to the definitions of company revenues and costs. The basic idea is that US should shift to a "territorial" system,with corporations being taxed only on revenues and costs incurredwithin the US itself, and not on theirworldwide aggregates,which is the principle behind the present system.
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