Totally Tax
Follow
Find
8.5K views | +4 today
Totally Tax
Global Tax News
Curated by Chris Bale
Your new post is loading...
Your new post is loading...
Scoop.it!

Is there a silver bullet for FATCA?

Is there a silver bullet for FATCA? | Totally Tax | Scoop.it

“There are no silver bullets for FATCA” The challenge is that FATCA assumes everyone is an American until there is evidence that they are not.

Chris Bale's insight:

Great article by Haydon Perryman:


I’m going to argue that FATCA is actually quite simple and that there is a silver bullet. I will also argue that there are a few unexploded grenades and if you act quickly you can prevent the pins from being pulled out of those grenades right next to your customers.

(No you can’t pull out the pins and throw the grenades at the regulators.)


FATCA is about four things:


  1. Due Diligence / Documentation
  2. Withholding
  3. Reporting
  4. Governance / Compliance / Certifications

FATCA has been around for more than four years now. Hopefully most of us now fully understand that divesting from US markets and exiting American customers won’t get us “off the grid” for FATCA. Such an approach robs institutions of American revenue streams and leaves the cost of FATCA largely unchanged.


The challenge is that FATCA assumes everyone is an American until there is evidence that they are not – exiting American customers does nothing to help with the burden of evidencing that our remaining clients are not Americans. Again, this would be a subject for another paper – but my hope is that by now no one seriously believes that exiting the US market and US customers is a good strategy.

more...
No comment yet.
Scoop.it!

U.S. Treasury Secretary Calls for Ban on Tax Inversions - just hot air I think

U.S. Treasury Secretary Calls for Ban on Tax Inversions - just hot air I think | Totally Tax | Scoop.it
Lew wants to "shut down" corporate tax inversions retroactively to May 2014.
Chris Bale's insight:

I think the concern that the rules governing inversions will change is probably overstated, notwithstanding Shire's sudden share plunge.


I am not aware of any US financial policy that has had a retrospective clause to it, and in any case it is extremely unlikely that the Republicans in Congress would allow the necessary legislation to go through. 

more...
No comment yet.
Scoop.it!

Deloitte believes there is a major transformation going on with in-house tax functions

Deloitte believes there is a major transformation going on with in-house tax functions | Totally Tax | Scoop.it
To learn how Deloitte addresses what transformation means to today’s tax departments and what steps tax executives can take to effectively prepare for and
Chris Bale's insight:

Click through to download the report from Deloitte. Here is an excerpt:


The role of the tax executive can be viewed as having four faces: an operator, who balances tax department costs and service levels to fulfill compliance and planning responsibilities; a steward, who is charged with protecting and preserving organizational assets; a strategist, who provides specific tax direction and aligns tax department activities with broader business strategies; and a catalyst, a driver of action across the business to support financial goals.


In a Deloitte Dbriefs poll on organizational transformation, nearly half of the more than 2,600 non-Deloitte respondents viewed their tax function as spending the majority of its time as an operator or steward of the business. Less than one-third regarded the tax executive as a catalyst or strategist for organizational change and growth. 


Transformation offers tax executives the opportunity to expand their skills in these two vital and challenging roles and increase their value to the organization.


For years, tax departments remained in the shadows as transformation swept across other business functions. Now, it’s the tax department’s turn to step into the spotlight. With a clear view of how the tax function’s role can evolve and expand, and the commitment of the CFO and tax executives, something big can indeed happen. The tax function can enhance operational efficiency at a global level and contribute significantly to decision-making across the business. Its operations can become more transparent to CFOs and other senior executives, from performance and risk management perspectives, in much the same way other business functions have become in the past decade or two. And, importantly, tax executives and other tax specialists – especially those willing to develop a broader understanding of the business and play leadership roles in the transformation – should be able to build eminence within the business and lay the foundation for career growth in the future as the business reaps the rewards of the transformation.

more...
No comment yet.
Scoop.it!

Salix to Merge With Cosmo in Latest Tax Inversion Deal

Salix Pharmaceuticals Ltd. agreed to buy patents to three gastrointestinal drugs from Cosmo Pharmaceuticals SpA for about $2.7 billion in stock, allowing the U.S. company to move to Ireland and lower its tax bill.
Chris Bale's insight:

Salix Pharmaceuticals Ltd. (SLXP) agreed to buy patents to three gastrointestinal drugs from Cosmo Pharmaceuticals SpA (COPN)for about $2.7 billion in stock, allowing the U.S. company to move to Ireland and lower its tax bill.


Salix, of Raleigh, North Carolina, will merge with an Irish unit of Lainate, Italy-based Cosmo, the companies said yesterday in a statement. Salix shareholders will own just less than 80 percent of the combined company, which will be renamed Salix Pharmaceuticals Plc, and Cosmo will own the rest.


The transaction adds to the wave of U.S. companies gaining an overseas address as a way to lower their tax rates. AbbVie Inc. is bidding for Shire Plc for to execute a similar tax inversion. With the deal, Cosmo is reversing its decision to try to market some products on its own in the U.S.


“It’s a very good deal because first of all you get these shares which are valuable and are real currency, and on the other hand the company retains the rights outside of the U.S.,” said Friedrich von Bohlen, managing director of Dievini Hopp Biotech Holding GmbH, Cosmo’s second-largest shareholder. “It’s a leapfrog into the U.S. market without any incremental costs.” Von Bohlen is also a member of Cosmo’s board.

more...
No comment yet.
Scoop.it!

How will Juncker handle the embarrassment of continuing with infringement proceedings against his own country, over tax rules introduced during his premiership ?

How will Juncker handle the embarrassment of continuing with infringement proceedings against his own country, over tax rules introduced during his premiership ? | Totally Tax | Scoop.it
Next week we expect Jean-Claude Juncker, the former long-standing prime minister of Luxembourg, to be nominated to the powerful role of President of the European Commission. The man who for many years defended one of Europe’s nastiest and biggest secrecy jurisdictions (or tax havens) now faces an important question. Will he continue discreetly to find …
Chris Bale's insight:

Next week we expect Jean-Claude Juncker, the former long-standing prime minister of Luxembourg, to be nominated to the powerful role of President of the European Commission. 


The Financial Times has reported on a recent European investigation into the tax arrangements of various large multinationals, including practices of individual tax rulings by Luxembourg which are profoundly corrupting of markets and the business environment. The European Commission (EC) has asked Luxembourg to provide information it needs to complete its probe; Luxembourg, recalcitrant as ever, is refusing to co-operate. The EC has launched legal proceedings against the little tax haven to get the information. As the FT puts it:

“Foot-dragging by Luxembourg over an EU probe into questionable tax deals for multinational corporations has created a potential conflict of interest for the Grand Duchy’s former premier who is set to head the EU’s executive branch. . . . If Luxembourg refuses to comply, Mr Juncker could be faced with the embarrassment of continuing with infringement proceedings against his own country over tax rules introduced during his premiership.

This particular probe is going to be very awkward for him, as an EU official explains. But this is just one angle in what is potentially one hefty great long-running conflict of interest.

more...
No comment yet.
Scoop.it!

Germany Proposes a Road Tax Aimed Primarily at Foreigners

Germany Proposes a Road Tax Aimed Primarily at Foreigners | Totally Tax | Scoop.it
Critics said the law would discriminate against Germany’s many neighbors.
Chris Bale's insight:

The German government announced plans on Monday to charge a road-use fee on all cars using roads and highways in Germany, a measure aimed at the foreign-registered cars that make an estimated 170 million trips to and through the country each year.

Grappling with decaying infrastructure, particularly in densely populated areas of western Germany, the government brushed aside criticism that the measure was too sweeping or violated European Union norms.

Alexander Dobrindt, the transport minister, designated the new toll an “infrastructure levy,” which he said would add 2.5 billion euros, or $3.4 billion, over a four-year period to the funds available for road repair and construction.

He said foreigners would be able to buy 10-day road-use passes for €10 and two-month passes for €20. Mr. Dobrindt added that no foreigner could expect to pay more than €100 every 12 months.

more...
No comment yet.
Scoop.it!

UBS Belgium Boss Charged in Tax Fraud Investigation

Belgian investigators detained the head of UBS Belgium on Thursday (June 19) for questioning in connection with an alleged multi-billion euro tax fraud by th...
Chris Bale's insight:

Belgian investigators detained the head of UBS Belgium last week for questioning in connection with an alleged multi-billion euro tax fraud by the Swiss bank's Belgian unit.

more...
No comment yet.
Scoop.it!

Should the IRS collect its own taxes or use bounty hunters ?

http://taxlawchannel.com IRS and Collecting Delinquent Taxes with Tax Attorney Robert Wood Tax attorney Rob Wood discusses his Forbes article, "Owe IRS? Dog The Bounty Hunter May Collect."...
Chris Bale's insight:

We have covered this topic before on TotallyTax.com but interesting to watch a video on the topic of IRS Collectors vs Bounty Hunters.

more...
No comment yet.
Scoop.it!

$6 billion inheritance tax bill for Samsung heirs. Ouch.

SEOUL - The heirs of ailing Samsung Group patriarch Lee Kun-hee face one of the biggest inheritance tax bills ever, and appear to have little option but to pay up.
Chris Bale's insight:

The Lees have long prepared for succession in anticipation of the eventual transfer of control to the younger generation.


However, a series of manoeuvres that was widely criticised by civic groups and politicians means the group would be less likely to attempt any tax measures that might stir a public outcry, some analysts and tax experts said.


The elder Lee's three children acquired big stakes in Samsung Everland and Samsung SDS at prices far below market value during the 1990s in deals that were detailed during 2008-09 trials at which Lee Kun-hee was charged with breach of trust and tax evasion. He was found guilty of breach of trust regarding Samsung SDS, and tax evasion, and given a suspended 3-year jail sentence, but later received a presidential pardon.


The younger Lees' shares in Everland and SDS will likely be worth billions of dollars after the companies go public.


Lee Kun-hee's daughters, Boo-jin and Seo-hyun, both in their early 40s, are expected eventually to control the group's hotels and fashion businesses, respectively.


"Any tricks to try to skimp on the inheritance tax in the current public climate will lead to a huge backlash," said Chung Sun-sup, chief executive of research firm Chaebul.com. "The information is public and there is a consensus on how much the family should pay. If they try to pay 20-30 percent instead of half, would the public accept that?"

more...
No comment yet.
Scoop.it!

Proposed Hungarian advertising tax appears to be more about the ruling party attacking largest media group, RTL, than about raising revenue.

A Hungarian lawmaker from the country's ruling party has put forward a proposal for an additional high level of tax on media advertising. The Hungarian Advertising Association said it was...
Chris Bale's insight:

Even pro-government media outlets are up in arms about this. Sounds like a step too far ?

more...
No comment yet.
Scoop.it!

Hedge Funds vs IRS - article by Victor Fleischer in NY Times

Hedge fund managers don’t benefit from the carried interest tax advantage that are the focus of proposed legislation, Victor Fleischer writes in the Standard Deduction column. Instead, many use Bermuda-based reinsurance companies to avoid taxes.
Chris Bale's insight:

Interesting article by US tax professor, Victor Fleischer, about Hedge Funds vs IRS.


Until recently, many fund managers would defer a portion of their fees in a Cayman Islands corporation, which would act as the equivalent of a titanic tax-deferred retirement account. Congress closed that loophole in 2009, although some investments parked offshore will not be deemed repatriated (and will not be taxed) until 2017.


To replace the Cayman strategy, many top hedge fund managers have entered the business of reinsurance, using Bermuda-based reinsurance companies as a capital base for investment in their hedge funds. Insurance companies must hold capital in reserve, and there is nothing to stop an insurance company from holding a huge reserve and investing that capital in a hedge fund. By stapling a small reinsurance business onto billions of dollars of hedge fund capital, any profits can be indefinitely deferred from tax offshore. Better yet, when the fund manager sells an interest in the Bermuda company, the gain may be taxed at the lower long-term capital gains rates.


Some of the article from NY Times is shown above but a quote that caught my eye was this....


"So no matter what happens with the carried interest tax legislation, the chess match between tax collectors and fund managers will continue.


The top 25 hedge fund managers have one advantage, though. They made more than five times the income of all the federal, state and local tax examiners, collectors and revenue agents in the United States, combined."


more...
No comment yet.
Scoop.it!

Serenading eunuchs - a new strategy in tax collection ? IRS and HMRC, take note

Serenading eunuchs - a new strategy in tax collection ? IRS and HMRC, take note | Totally Tax | Scoop.it
The Indian state of Bihar sends eunuchs onto the streets to persuade debtors to paying their tax bills.
Chris Bale's insight:

Tax authorities in one Indian state are attempting to persuade debtors to pay their bills by serenading them with a delegation of singing eunuchs.


Eunuchs are feared and reviled in many parts of India, where some believe they have supernatural powers. Often unable to gain regular employment, the eunuchs have become successful at persuading people to part with their cash.


The eunuchs will get a commission of 4% of any taxes collected.

In Bihar's capital, Patna, officials felt deploying the eunuchs was the only way to prompt people to pay up.


Bharat Sharma, a revenue officer, told the Associated Press agency he was pleased with the eunuchs' work.


"We are confident that their reputation and persuasive skills will come in handy," he said.

more...
No comment yet.
Scoop.it!

Should all Heads of Tax assume responsibility for the Treasury function ?

I wonder whether Corporate Treasurers are nervous that they may become a No 2 in their own department in the future ?

Chris Bale's insight:

I was sent a press release today about how Harsco has promoted its Head of Tax to now take responsibility for the company's treasury function as well


Whilst combining Tax & Treasury functions under one person is not new, it does seem to be increasingly common. In my experience it is usually the tax guy that assumes this dual role. The logic is that a Head of Tax (who is probably an accountant anyway) will pick up Treasury issues much quicker than a Corporate Treasurer will learn tax legislation.  


I wonder whether Corporate Treasurers are nervous that they may become a No 2 in their own department in the future ?



more...
No comment yet.
Scoop.it!

Macedonia Intends to Set up Tax Haven - further details in October

Government plans to establish a tax haven that will encourage wealthy corporations to move their operations to Macedonia have won a mixed response.
Chris Bale's insight:

Macedonia's Prime Minister Gruevski insisted the plan will not attract criminal money, but will boost employment.

“We aim to open an international financial zone on an area of 10 to 20 hectares where we will copy the financial laws from countries such as the United States, Britain or Germany, which will additionally boost its credibility," he said.


"The regulations will be taken from these top economies and companies that decide to move their HQs here will be offered additional tax and other benefits,” he explained.

The government plans to give more details about the draft law soon after the constitutional changes are adopted by parliament, which should happen by mid-October.

more...
No comment yet.
Scoop.it!

FTSE 100 Increases Tax Litigation Provisions for next year to £2.39 billion - mainly from Pharma

FTSE 100 companies have had to increase the amount of money they set aside to cover the cost of tax disputes and litigation by an additional £139m taking provisions for tax disputes to £2.39bn in the last year - up from £2.25bn in the previous year.

 

Chris Bale's insight:

FTSE 100 companies have had to increase the amount of money they set aside to cover the cost of tax disputes and litigation by an additional £139m taking provisions for tax disputes to £2.39bn in the last year - up from £2.25bn in the previous year.

 

Thomson Reuters says that with tax authorities around the world continuing their efforts to increase tax revenues, companies continue to find themselves in potentially costly tax disputes which individually can be worth hundreds of millions of pounds.

 

UK listed pharmaceutical companies made the biggest provisions for tax disputes and litigation in the last year, with the three big UK pharmaceutical companies accounting for 79%, or £1.89bn, of the total FTSE 100 provisions for tax disputes and litigation. That was an increase from £1.68bn in the previous year.

 

AstraZeneca made the largest provision for tax disputes out of all FTSE 100 companies, increasing its provision from £1.32bn to £1.53bn.

 

Pharmaceutical companies can come under intense scrutiny by tax authorities over their transfer pricing arrangements - the allocation of the costs of an international business across the different countries in which it operates.

 

Transfer pricing may result in potential profits in higher tax jurisdictions being moved to lower tax jurisdictions. Tax authorities will investigate if they think the company has used artificial arrangements to achieve that result.

 

It is not uncommon for a global pharmaceutical company to be subject to a number of different transfer pricing investigations undertaken by different tax authorities around the world.

 

“Pharmaceutical companies have been at the centre of many of the biggest ever tax disputes. That is partly become the revenues that flow from one part of a pharmaceutical business to another are huge – meaning so much potential tax is at stake,” Raichel Hopkinson, Head of the Practical Law Dispute Resolution Service at Thomson Reuters, explains.

 

“Under pressure from governments to recoup more tax, authorities around the world have been adopting much more aggressive methods and interpretations of tax rules to clamp down on what they see as tax avoidance by businesses.”

 

Thomson Reuters legal business says that as well as facing investigations into their own affairs financial services companies are increasingly at risk of blockbuster fines where they are seen to have assisted their customers in tax evasion or avoidance. For example, at least three FTSE 100 financial services groups have confirmed that they are under investigation by the Department of Justice in the US relating to tax evasion by US clients.

 

Credit Suisse recently agreed to pay a US $2.6billion penalty in relation to possible tax evasion by its US clients.

 

The success of businesses in tax litigation is not only important in terms of avoiding fines but also because successful tax litigation can see tax payments reduced and provisions released back to the company. For example one FTSE 100 company was able to release back £137m in taxes as a result of a successful resolution of a dispute.

 

However, Thomson Reuters adds that becoming involved in a lengthy tax dispute in public may also have considerable effects on the company’s reputation and brand.

 

“The public’s perception of a company is partly based on whether it is a ‘good citizen’ and that includes being seen to pay a fair amount of tax.  Protracted litigation over tax issues may be damaging from a PR perspective,” says Raichel Hopkinson.

 

“That’s especially an issue for a company that is consumer-facing.”

 

 

more...
No comment yet.
Scoop.it!

A refreshingly frank and unscripted conversation with women of the PwC US Leadership Team.

This is a 5 minute youtube video just released by PwC USA where 4 women from the leadership team talk to a mixed male/female audience about their experiences and offer advice to aspiring female partners.

Chris Bale's insight:

This is a 5 minute youtube video just released by PwC USA where 4 women from the leadership team talk to a mixed male/female audience about their experiences and offer advice to aspiring female partners.


Personally I found the discussion really refreshing. Often these sort of diversity meetings are rather stage-managed and scripted. This is obviously not the case here and it is all the more engaging as a result.



more...
No comment yet.
Scoop.it!

Is there an internal power struggle at the IRS ? 4 senior resignations in a month does not look random.

Is there an internal power struggle at the IRS ? 4 senior resignations in a month does not look random. | Totally Tax | Scoop.it
There have been disturbing departures from the IRS recently. Are more coming?
Chris Bale's insight:

Two weeks ago it was announced that Michael Danilack, deputy IRS commissioner (international), IRS Large Business and International Division (LB&I), was leaving. Last week brought two other resignations from the same division: Samuel Maruca, director of transfer pricing, and Diana Wollman, director of international strategy. This week we learned Laura Prendergast — acting deputy commissioner (domestic) is leaving as well. 


So what’s going on? Is this an internal war at the tax agency, specifically in LB&I – a power struggle, if you will? Or is it the more predictable result of competent IRS leaders, who could easily make more money in the private sector, deciding to escape an agency that is being treated like a political piñata? Or is this the new IRS commissioner cleaning house? 


No doubt the truth will out very soon, once any gagging restrictions have expired.

more...
louise li's curator insight, July 9, 10:40 PM

Is this change indicative of a change in international tax policy or something else?


Scoop.it!

Offshore secrets of the UK's wealthy political donors revealed by The Guardian today - time for a register of Channel Islands trusts ?

The first in a series revealing the offshore links of the elite, as obtained by the International Consortium of Investigative Journalists, names party donors who have given six-figure sums
Chris Bale's insight:

It reads like a Who's Who of Britain's most prominent political donors; the wealthy elite who have donated six-figure sums – and who happen to manage some of their financial affairs offshore.


Their names have emerged as part of leaked offshore client lists from the "wealth management" firm Kleinwort Benson, obtained by the International Consortium of Investigative Journalists.


All the donations and offshore structures have been perfectly legal, to use a phrase beloved of tax lawyers. But full transparency has been previously lacking, because there is no register of trusts, and has been no automatic disclosure of Channel Islands client details to the authorities.


In the interests of transparency, the Guardian and ICIJ are publishing some of our findings in a register over the coming days, detailing the offshore links of political donors, international celebrities, judges, sportsmen, businessmen, and British aristocrats.

more...
No comment yet.
Scoop.it!

German Finance Minister Peer Steinbruck is suspiciously quiet about German companies using Malta as part of their tax optimisation strategy

German Finance Minister Peer Steinbruck is suspiciously quiet about German companies using Malta as part of their tax optimisation strategy | Totally Tax | Scoop.it
German Finance Minister Peer Steinbrück has been railing against tax havens such as Switzerland and Luxembourg with harsh rhetoric. But he has paid too little attention to completely legal loopholes -- such as having subsidiaries on Malta -- that allow German corporations and the ultra-rich to minimize their tax burdens.
Chris Bale's insight:

Companies like Lufthansa, Puma, BASF, K+S and Fraport have their offices in the town of St. Julian's, near the "Stiletto Gentleman's Club" and the pubs where foreign language students drink themselves into oblivion. The offices of the BMW Malta Group are near the casino in the upscale Portomaso waterfront development.


"The number of companies in Malta is growing rapidly," says Andrew Manduca, a partner in the accounting firm Deloitte Malta. He avoids using the term tax haven. "Companies pay a 35 percent tax rate here, which is more than in Germany." Technically, this is correct, but in a second step, shareholders can apply for a refund of the bulk of those taxes. On balance, profit distribution in the form of dividends is taxed at only 5 percent. After taxation, the net dividends are returned to the coffers of the German parent companies -- 95 percent tax-exempt, thanks to the decisions of the former Social Democratic and Green Party coalition government under former Chancellor Gerhard Schröder.


No one seems to be troubled by the fact that this loophole deprives the German treasury of massive amounts of revenue. On the contrary.


Last summer, Germany's ambassador to Malta invited German banking executive Frank Krings -- now a member of the management board of the troubled mortgage lender Hypo Real Estate -- to his private residence for a meeting with representatives of subsidiaries of German companies. Krings apparently liked what he heard. The local media has reported that banking giant Deutsche Bank plans to expand its business in Malta this year.

more...
No comment yet.
Scoop.it!

Greece's new top tax official is a Big 4 Senior Manager. Am I the only person to find this a perplexing hire ?

Ms Savvaidou is reported to be the Tax Knowledge Manager for PwC Greece and leads a team of 100 tax professionals. However, she is only a Senior Tax Manager. Given the importance of the role of Head of a Revenue Department, and especially given the fragility of Greece's tax receipts, is there nobody more senior to do the job ? Why not a Big 4 Tax Partner ?

Chris Bale's insight:

Greece's government named tax lawyer Katerina Savvaidou as the country's top tax official on Monday after her predecessor abruptly resigned under a cloud, causing concern among the country's international lenders. Her formal title is General State Revenue Secretary.

Harry Theoharis stepped down this month after just over a year in the post. He cited personal reasons but Greek media said the government blamed him for mishandling some aspects of his job. His sudden departure cast doubt over Athens' commitment to implement reforms and raise tax revenues, a key condition of Greece's 240-billion euro ($326.22 billion) bailout from the European Union and International Monetary Fund.


Ms Savvaidou is reported to be the Tax Knowledge Manager for PwC Greece and leads a team of 100 tax professionals. However, she is only a Senior Tax Manager. Given the importance of the role of Head of a Revenue Department, and especially given the fragility of Greece's tax receipts, is there nobody more senior to do the job ? Why not a Big 4 Tax Partner ?



more...
No comment yet.
Scoop.it!

Australian Treasurer, Joe Hockey, describes his tax system as 'compromised'

Australian Treasurer, Joe Hockey, describes his tax system as 'compromised' | Totally Tax | Scoop.it

"Whilst income tax is by far our largest form of revenue, just ten per cent of the population pays nearly two thirds of all income tax. In fact, just two per cent of taxpayers pay more than a quarter of all income tax.

Chris Bale's insight:

Quoted below is a section from Joe Hockey's speech to the Sydney Institute. 


"Whilst income tax is by far our largest form of revenue, just ten per cent of the population pays nearly two thirds of all income tax. In fact, just two per cent of taxpayers pay more than a quarter of all income tax.


Maybe these taxpayers would argue that the tax system is already unfair.


Company tax is our second largest source of revenue. Less than one per cent of companies pay 62 per cent of all company tax. In fact just 12 companies in Australia pay one third of all company tax.


These companies constantly argue that our tax system is unfair because our tax base is vulnerable to increasing global competition with significantly lower rates in the United Kingdom (21%), Singapore (17%) and Hong Kong (16.5%).


Our tax base is facing significant headwinds and that is why the Prime Minister promised at the last election to deliver a taxation white paper after widespread community consultation.


So with a compromised taxation system we must deal with the pressures on our spending programs….and they are growing."


Click through to see the full speech as reported by the Sydney Morning Herald

more...
IE.Finance's curator insight, June 20, 2:07 AM
Is the Australian Tax System Compromised? #CFO #CFOTreasury #Finance #Treasury
louise li's curator insight, June 20, 10:55 AM

Interesting commentary on Australia's tax system with aims of a just and fair society which never leaves anyone behind yet does not seek to penalise those who aspire to be better.



Read more: http://www.smh.com.au/national/treasurer-joe-hockeys-address-to-the-sydney-institute-20140612-zs5ok.html#ixzz35Cei5ZIi

Scoop.it!

Should E-Cigarettes be taxed ?

Chris Bale's insight:

Interesting article by David Brunori


"Taxing e-cigarettes is a money grab. If people use e-cigarettes instead of real cigarettes, the state loses money. The vested interests like the public employee unions and the myriad government contractors can't have that. But proponents won't admit the money-grabbing motive. They pretend there are actually externalities to be addressed. Now, truthfully, we really don't know what the long-term effects of e-cigarette use are, but at the moment there's no evidence they're dangerous. "

more...
No comment yet.
Scoop.it!

Credit Suisse says $2.5 billion fine has seen no material impact on it business. Lucky not to have US license revoked.

One day after Credit Suisse pleaded guilty to helping Americans evade taxes and agreed to pay $2.5 (1.8 billion euro) fine, the bank said it has seen no mate...
more...
No comment yet.
Scoop.it!

Australian Tax Office to shed 3,000 jobs

Australian Tax Office to shed 3,000 jobs | Totally Tax | Scoop.it
About 3,000 jobs at the ATO will go and more than 200 spending programs will be slashed in the budget.
Chris Bale's insight:

About 3,000 jobs in the Australian Tax Office (ATO) will go and more than 200 spending programs will be slashed in next week's federal budget.

The ATO's Second Commissioner Geoff Leeper wrote to staff this morning asking them to be patient and saying he would be in touch after the budget to explain what the final details will mean.

Treasurer Joe Hockey wants to shrink the size of Government in his first budget and thousands of public service staff will be retrenched.

He says despite the cuts he remains proud of his budget.

"On Tuesday night I think people will see that thanks to the hard work of my colleague Mathias Cormann, the Prime Minister, everyone, the Coalition is going to build a stronger more prosperous Australia," Mr Hockey said.


Last year, the ATO announced 900 jobs would go as a result of an efficiency dividend.

Community and Public Sector Union (CPSU) national secretary Nadine Flood says the axing of jobs will hurt small business and damage service delivery.


"If you cut 3,000 jobs in the ATO, that will damage their capacity to help small business, help industry and ensure we raise tax revenue appropriately," she said.


"Cuts of this magnitude to the Tax Office would do enormous damage not just to jobs but to services and our capacity to actually raise tax revenue so that you can fund the things the community wants of government.


"You can't cut to that level without impacting on services."

more...
No comment yet.
Scoop.it!

US Corporate Tax Leaders sceptical that OECD will meet goals of BEPS action plan within deadline - according to KPMG survey

Tax Information Disclosure Requirements and Transfer Pricing Rule Changes Cited as Top Concerns on Initiative. Survey Results Issued in Connection with KPMG’s U.S. Cross-Border Tax Conference
Chris Bale's insight:

KPMG conducted a survey of  220 U.S. senior tax professionals and revealed that 64 percent of respondents said the OECD’s 24-month timetable was not sufficient to address concerns regarding profit shifting or “double non-taxation” and provide a “level playing field” among tax systems and taxpayers. Only 21 percent were positive on the issue of timing.

 

“Tax leaders may not believe the OECD has adequate time to achieve all the objectives in the Action Plan, but with the significant political demand for immediate action, the deadlines are not likely to change,” said Manal Corwin, national leader of KPMG’s International Tax practice and principal-in-charge of International Tax Policy in the firm’s Washington National Tax practice.

 

“Corporate tax departments need to engage with the OECD and policymakers on the specifics, keep a sharp focus on the potential compliance implications, and anticipate the impact of likely changes on their global operations,” Corwin added.

 

Said Brett Weaver, KPMG’s partner in charge of tax transparency services and the firm’s West Area international tax practice:  “The OECD is moving full-speed ahead with an initiative that will drastically change the international tax landscape. It’s critical that the business community is prepared.”

 

Of particular interest in the survey:  While a vast majority of respondents (82 percent) feel the BEPS Action Plan is an issue that has garnered the attention of their board and C-level management, only 11 percent believe these two groups have a high level of understanding of the initiative or are concerned about its implications on their companies.

more...
No comment yet.