International Tax News Blog

Archives: 2017

  • Goldman Sachs expects $5bn hit from US tax reforms

    Financial Times By: Martin Arnold and Ben McLannahan (Financial Times)

    Goldman Sachs has warned that it will take a $5bn hit to fourth-quarter profits as a result of president Donald Trump’s tax overhaul, mostly because of a new levy on overseas earnings.

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    By Arnold, Martin; and McLannahan, Ben, posted on Friday December 29, 2017
  • Barclays and Shell warn of billion-dollar hits from Trump tax reform

    Financial Times By: Martin Arnold and Ralph Atkins (Financial Times) 

    Both Shell and Barclays said that while they were likely to benefit over time from the reduction in the US corporate tax rate from 35 percent to 21 percent, they expected to take hefty non-cash charges in their fourth-quarter results. Shell expects to take a $2bn-$2.5bn charge against the accounting value of its “deferred tax assets” in response to a sweeping overhaul of the US tax system that was signed into law by Mr. Trump. Barclays said it expected to record a £1bn charge in its 2017 results.

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    By Arnold, Martin; and Atkins, Ralph , posted on Wednesday December 27, 2017
  • Spillover from the Haven: Cross-Border Externalities of Patent Box Regimes Within Multinational Firms

    By: Thomas Schwab and Maximilian Todtenhaupt

    In this paper, the authors analyze the cross-border effects of patent box regimes that reduce the tax rate on income from intellectual property. The authors argue that the tax cut in one location of a multinational enterprise may reduce the user cost of capital for the whole group if profit shifting is possible. This spillover effect of the foreign tax cut raises domestic R&D investment. 

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    By Schwab, Thomas; and Todtenhaupt, Maximilian, posted on Tuesday December 26, 2017
  • Tax Reform Flaws Build the Case For a New Consumption Tax

    Politico Logo

    By: David Rogers

    Is the real lesson from tax reform that Americans rely too much on the income tax to fund their government? Time and again, that box has proven too small a revenue pot to do all that it’s asked by tax writers. And this leads to decisions, however well-intentioned, that contribute to distortions down the road. Most other industrial nations lighten the load on their income tax by combining it with some form of consumption taxes — a hard sell in today’s Washington. But given the partisan carnage of this latest tax fight, the uncertain result, and very real debt crisis facing the nation, is it time for both parties to start looking at other options?

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    By Rogers, David, posted on Thursday December 21, 2017
  • OECD Announces Establishment of Over 2,600 CRS Information Exchange Relationships

    Tax Analysts By: Tax Analysts

    Over 2,600 bilateral relationships for the exchange of common reporting standard information have been established, the OECD said in a December 21 release, adding that 39 of the 53 jurisdictions committed to first exchanges in 2018 have implemented the international legal requirements.

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    By Tax Analysts, posted on Thursday December 21, 2017
  • Credit Suisse Sees $2.3 Billion Hit From Tax Overhaul

    WSJ logo By: Brian Blackstone (The Wall Street Journal)

    Swiss bank Credit Suisse Group AG said that it expects to write-down 2.3 billion francs ($2.3 billion) in tax-deferred assets this quarter as a result of the signing of a sweeping U.S. tax overhaul. The write-down is a one-time accounting adjustment and has minimal impact on the bank’s strong regulatory capital position, the bank says.

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    By Blackstone, Brian, posted on Friday December 22, 2017
  • India To Adopt E-Way Bill Under GST Regime Starting Feb

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    By: Mary Swire

    India will trial a new system that will enable goods to be sent to other Indian states without border checks under the country's new goods and services tax (GST) regime from February 2018.

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    By Swire, Mary, posted on Thursday December 21, 2017
  • Australian Tax Cuts Now Urgent, Ministers Say

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    By: Mary Swire

    Australia's Finance Minister has said that company tax cuts are now "even more urgent" and that it would be "absolutely reckless and irresponsible" for the opposition to continue to block reform legislation.

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    By Swire, Mary, posted on Thursday December 21, 2017
  • EU Approves Irish SME Share Scheme

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    By: Jason Gorringe

    The European Commission has approved an Irish tax incentive for employee share schemes offered by SMEs – the Key Employee Engagement Programme (KEEP).

    To read more go here

    By Gorringe, Jason, posted on Thursday December 21, 2017
  • Common Tax Base Plans May Depend on Ireland: EU Tax Chief

    Bloomberg By: Penny Sukhraj (Bloomberg BNA)

    The European Union's tax chief is optimistic that structural reform of the bloc's tax system—through a common consolidated corporate tax base (CCCTB)—is possible, but admits that “it depends” on governments such as Ireland. Ireland, with its 12.5 percent corporate tax rate—among the lowest in the bloc—is expected to be less inclined to agree to a CCCTB.

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    By Sukhraj, Penny, posted on Thursday December 21, 2017

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