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I've just realised HMRC issued a new VAT gap estimate late last week.
Interesting blog post by Richard Murphy this week.
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Doctors, lawyers and others say they are ‘asphyxiated’ by increases
Another group joined France’s rumbling tax revolt yesterday, when 750,000 members of the National Union of Liberal Professions (UNAPL) declared themselves “asphyxiated” by taxation and excessive government regulation.
Four-fifths of the professionals, who include doctors, pharmacists, lawyers, notaries, accountants and architects, have no employees other than themselves. The remainder make up a million people, for example secretaries and cleaners.
Much of the private sector resents France’s 5.2 million civil servants, who retire earlier, with greater benefits. Only a quarter of civil servants’ pensions are financed by their own contributions. Taxpayers finance the remainder: €37.3 billion this year alone.
The Hollande administration fears that multiple small tax revolts could meld into significant unrest. Some 72 per cent of respondents in a poll last month said they believed social discontent will lead to a broader social movement.
James Henry: Canadian companies use Barbados as a tax haven to reduce their taxes from 24 percent to 2.5 percent, leaving Barbados with revenue shortage See ...
Interesting interview with James Henry, Senior Economist with the Tax Justice Network. 75% of the banking sector in Barbados is Canadian owned.
The Internal Revenue Service has spent 19 months and more than $8.6 million getting ready to enforce a new law against offshore tax evasion that takes effect next year, but the agency is still not prepared, a watchdog...
More IRS computer and staff improvements are needed to administer the Foreign Account Tax Compliance Act, said the Treasury Inspector General for Tax Administration.
Interesting that Ryan has chosen a strategic alliance in Chile rather than a launch + organic growth
It’s as traditional as turkey and football on Thanksgiving. The IRS again last week released some important news just before a major holiday. Taxand USA discusses the significant changes to US transfer pricing regulations announced last week.
If you are a US corporate contemplating a Competent Authority claim or an Advance Pricing Agreement or if you have operations in India, this may be worth reading.
German authorities on Tuesday raided some 40 branches of Commerzbank, the country's second biggest bank, over suspected tax fraud by hundreds of clients, the bank and prosecutors said.
Commerzbank is not a suspect in the affair, just a witness. The probe centres on more than 200 wealthy clients suspected of hiding income in life insurance policies provided by an Ireland-based division of an Italian financial institution.
Jailed heroin dealer complains after receiving 80,000 euro tax bill, after deducting "travel expenses" for car used to carry drugs
I love the comments from the drug dealer's lawyer - you can just hear the false outrage in his voice:
"They're treating my client like he's running a small business," said Samra Boudiba, the man's lawyer. "So they're taxing him for his dealing since 2008 by working out his 'reconstituted turnover': It's absolutely extraordinary. How can they tax a trade that is completely illegal?
"In a sense, one gets the impression that they are acknowledging the legality of this (drug) dealing as they consider it to be a small business."
The prospect of an even more stringent European-wide Financial Transaction Tax (FTT) is back on the agenda following Tuesday’s German coalition agreement.
Nice summary from Richard Asquith at TMF as to where we are with FTT in Europe. It is these sort of aggressive (and illegal) political machinations by unelected bureaucrats that encourages UK citizens to leave the EU altogether.
Deals are part of U.S. effort to enforce the Foreign Account Tax Compliance Act, enacted in 2010 and set to take effect in July, 2014
The island nation of Cayman Islands is home to 53,000 people and has no income tax. It is one of the world’s most popular destinations for investment funds to organize for tax purposes. You have to wonder whether it will have a future as a financial services centre, now that it has agreed to be more transparent.
Following the meeting of the Global Forum on Tax Transparency in Jakarta last week, Luxembourg, Liechtenstein, Colombia, Greece, Iceland and Malta have agreed to automatically share information on UK taxpayers with HM Revenue & Customs through the G5’s pilot initiative launched by the G5 on automatic exchange of tax information
Chancellor of the Exchequer, George Osborne, said:
This government has been leading the way in pushing for greater tax transparency and information sharing, putting it at the heart of our G8 agenda – the commitments made today demonstrate the considerable and rapid progress that has been made.
We have also made significant investment in HMRC’s anti-avoidance and evasion work to ensure that people pay the tax they owe.
Tax information sharing will provide HMRC with vital information in the fight against evasion as we continue to clamp down on individuals seeking to hide their assets offshore.
Ahead of the 2014 fiscal year, the federal government has said it has contracted the services of an international tax firm to assist the Federal Inland Revenue Service (FIRS) in strengthening tax collection in non-oil sector.
The Nigerian government has already contracted McKinsey & Co for the provision of technical support to the FIRS towards non-oil revenue and enhancement and capacity of the organisation in its tax drive.
The Finance minister said that the firm, which will commence operation this year for over the next 12 months, is expected to be paid 1.75 percent as commission which is N470million for the targeted collectible revenue.
"One of the areas of weakness has always been in our tax policy. The new move will see the non- oil sector contribute more to the economy through payment of appropriate taxes by relevant organisations"
Mishcon de Reya has announced that it is to completely restructure its Tax offering, launching a consolidated practice that encompasses all related services, including: Real Estate Tax; Corporate Tax, as well as Private Tax & Wealth Planning.
Oman Tax revenue forms just 1.5% of GDP
Davis Kallukaran, Managing Partner of Horwath Mak Ghazali, said the government revenue from income tax is around OMR350 million and customs duty constitutes another OMR180 million per annum."In Oman, we have a very low rate of taxation. When compared to other countries like India or the United States, it is much lower," he said, while addressing the workshop, which was organised by Crowe Horwath under the patronage of Abdul Salam Al Murshidi, chief executive of State General Reserve Fund.He said that the government needs additional sources of revenue by way of tax for meeting budget requirements for developing new projects and infrastructure facilities, which are vital for creating employment opportunities for nationals.
Deloitte Tax LLP Principal Aydin Hayri recently published Transfer Pricing in Action, a business novel that attempts “to bridge the abstract theory of transfer pricing and its everyday practice.”
Hayri comments that he "wants readers to appreciate that tax planning decisions are as real and mission-critical as any other business decisions, and that they require the same level of due diligence as any business investment."
Here's what the IMF says - it falls short of an actual recommendation but seems pretty bullish about the upside.
"The sharp deterioration of the public finances in many countries has revived interest in a “capital levy”— a one-off tax on private wealth—as an exceptional measure to restore debt sustainability.1 The appeal is that such a tax, if it is implemented before avoidance is possible and there is a belief that it will never be repeated, does not distort behavior (and may be seen by some as fair).
There have been illustrious supporters, including Pigou, Ricardo, Schumpeter, and—until he changed his mind—Keynes. The conditions for success are strong, but also need to be weighed against the risks of the alternatives, which include repudiating public debt or inflating it away (these, in turn, are a particular form of wealth tax—on bondholders—that also falls on nonresidents).
There is a surprisingly large amount of experience to draw on, as such levies were widely adopted in Europe after World War I and in Germany and Japan after World War II. Reviewed in Eichengreen (1990), this experience suggests that more notable than any loss of credibility was a simple failure to achieve debt reduc- tion, largely because the delay in introduction gave space for extensive avoidance and capital flight—in turn spurring inflation.
The tax rates needed to bring down public debt to precrisis levels, moreover, are sizable: reducing debt ratios to end-2007 levels would require (for a sample of 15 euro area countries) a tax rate of about 10 percent on households with positive net wealth.2
It is not every day that you hear a major Union calling for a cut in the corporate tax rate, but it is a sign of how bad the economy really is in France when Union leaders and Chief Execs are singing from the same hymn sheet.
Given that the rate of compulsory levies in France is currently one of the highest in Europe, just behind Denmark, this has resulted in a loss of competitiveness for businesses, in less investment, and in fewer jobs, Roux de Bézieux emphasized, making clear that there is therefore an "urgent need" to lower taxation. Taxation, he declared, should be seen as a "competitiveness weapon."
The most underrated practice groups in Biglaw, according to the ATL readership.
Underrated Tax Practices:White & CaseCooleyProskauer Rose
The government had proposed a non-binding conciliation to the telecom major to sort out the tax dispute.
The British telecom major is facing a tax liability of over Rs. 11,200 crore, along with interest, on its 2007 acquisition of Hong Kong-based Hutchison Whampoa’s stake in India’s telecom major, Hutchison Essar.
Merry Christmas from all of us at Cassons! We hope you like our own special version of the classic Bonnie Tyler song "Holding out for a Hero". Our specially ...
SPD finance ministers used letter-box companies for pension fund securitisation
German politician Peer Steinbrück – one of the fiercest critics of Ireland’s tax regime – used Irish letter box companies when finance minister to try to balance the German budget through financial engineering.
Mr Steinbrück – an unsuccessful candidate in the recent German election – and his Social Democratic Party (SPD) have been particularly vocal critics of Ireland’s tax laws.
He used the recent election campaign to attack failed finance market alchemy and condemn “tax oases” such as Ireland and the Netherlands.
According to this morning’s Der Spiegel magazine, Berlin began doing business in Ireland to tap into pension funds of Germany’s post office, which was privatised and broken up in 1995 into three companies for telecoms, post and post office bank.
The UK’s tax regime has maintained its position as one of the most attractive against key competitors as perceived by executives in large businesses operating in Britain, according to KPMG’s seventh annual survey of tax competitiveness.
Jane McCormick, Head of Tax at KPMG in the UK, said: “Our research shows that the efforts that the current and previous government have made to address anomalies and improve the attractiveness of the UK to business from a tax perspective are bearing fruit. Policymakers recognise that business is a powerful growth engine, creating jobs, wealth and generating economic activity.
The dial seems to have moved on the UK’s tax regime from it being an actual deterrent to business and economic activity just five short years ago when some PLCs were emigrating, to it now being positively attractive, especially when viewed in the context of the UK generally being seen to be a very desirable place to live, work and do business. Even better, the results suggest there is no need for a ‘race to the bottom’ on rates with few respondents calling for further rate cuts.”
The Tax debate is sometimes taken over by emotions and anger rather rational & statutory legal opinions. For as long as we the debate does not digress then we should be on a great path. Would you say that there should be a moral construct to Taxation?
On Tuesday, November 26, 2013, the Deputy Minister of Finance released a new transfer pricing decree which brings Dutch policy on transfer pricing in line with recent developments in this area.
The Deputy Minister has used the new decree to clarify the policy on transfer pricing. While he has succeeded on a number of issues, we would argue that the position taken in a number of cases is open to interpretation. Taxpayers should, nevertheless, anticipate the introduction of this policy. In particular, it is important to ensure there is transfer pricing documentation that explains the commercial rationale behind existing and proposed structures and group transactions and which substantiates functionality. This also applies to financial transactions for which a ‘simple’ benchmark is no longer appropriate. In this respect, the decree is in line with international developments.
Tax lawyer Jim Love, who the federal Conservatives have appointed to various posts, helped the heirs of a former Tory prime minister move a chunk of their fortune through offshore tax havens, CBC News has learned.
See the CBC video for detailed info.
The chair of the Royal Canadian Mint, who also served as an adviser on international taxation to the federal Finance Department, helped engineer the transfer of millions of dollars of a prominent Canadian family through offshore tax havens in what others involved characterized as a "tax avoidance scheme," documents obtained by CBC News show.
Slightly more than $8 million was moved through offshore entities in Bermuda, Barbados and Antigua, later prompting allegations that the arrangement, if exposed, could lead to potentially hundreds of thousands of dollars in "taxes, interest and penalties." The documents show there were also concerns about secrecy and instructions to shred files
RIO DE JANEIRO, Nov 27 (Reuters) - Brazilian mining companyVale said on Wednesday that it agreed to pay 22.325billion reais ($9.61 billion) in back taxes to the Braziliangovernment on profit from overseas operations, after agreeing to a payment plan with tax authorities....
Looks like Brazil has the mettle to go after the tax due on profits shifted overseas. Maybe US and Europe could learn a lesson from them ?