Taxation Law Articles
Articles written by lawyers and expert witnesses worldwide
explaining the different aspects of Taxation.
February 8, 2017 By GRP Rainer LLP
It was a long time coming before the reforms to inheritance tax became finalized. The legislation has since come into force with retrospective effect as of July 1, 2016. The reforms have ramifications for company heirs.
February 3, 2017 By Kinanis LLC
On 1 December 2016, the European Commission has published proposals to improve the Value Added Tax (VAT) environment for e-commerce businesses in the EU. Particularly, the proposed changes, aiming to allow start-ups and SMEs, to buy and sell goods and services more easily online.
February 1, 2017 By KCG Partners Law Firm
New transparency rules entered into force on 1 January 2017. EU Member States are obliged to automatically exchange information through a central depository on all new cross-border tax rulings and advance price arrangements that they issue, accessible to all other Member States.
January 31, 2017 By KCG Partners Law Firm
The regulation of the European Parliament and of the Council establishing a European Account Preservation Order procedure to facilitate cross-border debt recovery in civil and commercial matters, is applicable from 18 January 2017.
January 30, 2017 By Youssry Saleh Law Firm
On 5th of September 2016, the new Value Added Tax (VAT) Law in Egypt has been promulgated and published in the Official Gazette entering into effect on 8th of September 2016. The new Law no. 67 of year 2016 replaces the General Sales Tax (GST) Law no. 11 of year 1991 and any other legal provision contradicting with the new law shall be annulled.
December 30, 2016 By Kaimakliotis LLC
There have been recent amendments to the Stamp Duty Law of Cyprus (Law 19/1963) (the “Law”) with the aim of modernising and simplifying the Law. The main amendments relate to the rates of stamp duty payable for different types of documents. This short memo provides an overview of the stamp duty regime in Cyprus
December 22, 2016 By N. Pirilides & Associates LLC
The Board of Directors of a CIF shall consist of at least two executive Directors and two independent non-executive Directors. The majority of the Directors shall be Cyprus residents. The independent non-executive Directors shall be persons of reputation and good standing, experienced and well-known in the business community for their skills and abilities, who can themselves, promote the company’s goals.
December 12, 2016 By Law office Dr. Cornelia Draganova
A legal entity in Bulgaria may be used as a suitable vehicle for different purposes, including for outsourcing business development, for real estate acquisition, for cost saving and planning, for starting of joint ventures and others. The process of setting up a company in Bulgaria is inexpensive. The flat tax rate of 10 %, the relatively low commercial and labour costs and the membership of the country in the European Union makes Bulgaria a strategic business destination.
In the following article we will review a case in which a car was imported by personal import, but was released to a person who was not the original importer. The original importer filed a claim against all entities involved in the release process, including the Customs Authority, the customs agents, the advisers who aided the procedure, the foreign company (the seller), etc. The court accepted the claim and divided the liability among the various entities.
The Ramla Magistrate Court rejected a claim filed by an importer in order to release goods seized in the possession of a different person as he was entering the country. The court determined that the seizer by the Customs Authority was performed in accordance with the law.
Recently, the Knesset (the Israeli Parliament) approved the Amendment of the Defense Export Control Law, 2016, thus establishing it as an inseparable part of the Defense Export Control Law.
December 1, 2016 By Masson de Morfontaine
Hong Kong is now challenging the tax substance of special purpose vehicles (SPV) such as intermediate holdings and this is producing great troubles for some companies.
November 28, 2016 By APC Law Firm
The taxation procedure for the income, obtained by a non-resident from Ukrainian source is mainly governed by the Tax Code of Ukraine.
There are various signs that a criminal investigation is on the horizon. These are not the same as civil inquiries. The Internal Revenue Service initiates these from the recommendation of the auditor assigned to the person or company. Tax returns or fraudulent activity that includes illegal acts are analyzed by the Criminal Investigation Division of the IRS.
Reporting foreign accounts in banks is vital to ensure criminal consequences are not issued to individuals filing taxes. Adherence to the Foreign Bank Accounts Reporting is vital to ensure penalties that may be as little as $10,000 or 50 percent of all account income in offshore accounts do not occur.
Audits tend to occur when there is a suspected tax crime. It is important to ensure a civil examination is accomplished with cooperation, a calm presence and peaceful actions. The revenue agent provided for the investigation should not be misled or lied to. With all information disclosed properly even after the examination initiates, a criminal investigation may not be the next process.
When persons work in the United States, it is illegal to not report income after a certain threshold has been reached. This is especially important for businesses.
Anti-money laundering compliance is very important to banks and financial institutions per the United States government. Without adherence to these regulations, a company is open to potential prosecution for various internal activities.
The Foreign Account Tax Compliance Act was issued by the IRS in response to the Hiring Incentives to Restore Employment Act signed by President Obama in 2010. This was implemented to ensure foreign accounts with taxable income are reported and adherence to guidelines issues was followed by individuals with income in accounts in overseas banks.
Foreign Bank and Financial Accounts Report (FBAR) and the Foreign Account Tax Compliance Act (FATCA) are both important acronyms to know when dealing with potential issues with the Internal Revenue Service.
Fraud comes in many shapes and sizes. The amount that is taken during fraud crimes is one factor considered when charges are filed and when a case initiates. Tax fraud is different than these other types as only the Internal Revenue Service is permitted to pursue suspected tax offenders.
The Internal Revenue Service is called when both businesses and individuals are suspected of illegal income, revenue and wage activity. Anyone may be subject to an audit, but these are especially harmful when there are actual illegal processes occurring within the company.
Because criminal investigations initiated by the Internal Revenue Service require resources and time that may be better utilized elsewhere, starting a case for possible tax crimes is not sought after by this agency. Audits are often routine for various reasons based on data collected during and after tax season.
Documents are the foundation of tax cases where crimes are suspected. Subpoenas are often issued that demand extensive documentation to back up a claim of offenses for evidence against someone that may have committed tax crimes.
The Report of Foreign Bank and Financial Accounts, known as the FBAR, is assessed by the Internal Revenue Service for civil penalties if necessary. However, a violation of FBAR may not necessarily lead to a penalty. This is due to specific circumstances involved in each case.
The Internal Revenue Service provides a variety of voluntary disclosure options to help parties avoid possible criminal action if they come forward and report certain information. One such disclosure provision regards the Offshore Voluntary Disclosure Program.
One of the first decisions a business owner or practicing professional faces is choosing the best business entity for their organization.
When someone fails to file a tax return and is then charged with a crime of this nature, they often wonder why they were targeted for this crime. After all, there are criminals who have not filed tax returns for years because of their illegally-acquired funds. Often, the question comes down to the willful nature of the failure.
If a person fails to file his or her tax return when required to do so, he or she may face significant penalties based on a failure to file charge. Being aware of the defenses may help a defendant avoid the most serious consequences. However, defendants should also be aware of the limitations of these defenses.
It’s common knowledge that in Hungary, calculation of the corporate tax liability is based on the items recognised in the accounting books. But a nasty surprise could lie in store for taxpayers who think they can apply the principles of accounting recognition fully in the course of calculating corporate tax.
The main provisions of the Ukrainian legislation governing taxation in agriculture are embodied in the Tax Code of Ukraine, which regulates the special tax regime in the agricultural sector. Ukraine’s tax law provides certain tax benefits for agricultural producers.
Corporate Taxpayers: Corporate Income Tax (CIT) is paid by the resident companies, which receive income in Ukraine as well as abroad. CIT is also paid by the non-resident companies, which receive income from Ukrainian sources.
Having one of the lowest corporate tax rates in Europe and a wide network of double tax treaties, Cyprus is a very attractive and established jurisdiction for registering companies. The country is well known for the high standard of service providers such as law firms and accountants. English is widely spoken and the country has a pro-business environment and investor-friendly mentality. This article examines the advantages and process of setting up a company in Cyprus.
“In this world nothing can be said to be certain, except death and taxes.” Benjamin Franklin strikes again. However, in the world of high tech and Israeli tax there has been some uncertainty as to whether entrepreneurs, whose shares are subject to a reverse vesting mechanism or a holdback upon their sale, should be paying income or capital gains tax.
Purchasing a residential property is generally one of the most profound, expensive and important decisions you make in your life. Even more so when purchasing a residential property in Israel.
Thailand’s reputation is that of a business-friendly country and together with foreign investment has made it a leading centre of trade in Southeast Asia. Thailand has emerged as an internationally recognized destination for service and industry sectors with tax incentives, well-developed infrastructure, cost-effective workforce as well as ideal geographic location.
On 24 March 2016, the PRC Ministry of Finance (“MOF”) and the State Administration of Taxation (“SAT”) jointly released the Notice on the Comprehensive Roll-out of the Business Tax (“BT”) to Value Added Tax (“VAT”) Transformation Pilot Programme (Circular Caishui  Number 36) ("Circular").
In succession cases involving real estate, it is particularly important to pay attention to details when it comes to inheritance tax. Those who are not careful may be asked to pay up by the exchequer.
Germany’s federal and regional state governments want to step up their measures once again in the fight against tax evasion and hang out tax havens to dry. Voluntary disclosure leading to immunity represents a way out for tax evaders.
The two houses of the Indian Parliament recently passed an historic bill which aims to enact a common goods and services tax (GST) among the federal and the state governments of the Republic of India.
The legislature has deliberately maintained the option for tax dodgers to return to a state of tax compliance by means of voluntary disclosure leading to immunity. Professional assistance is vital in this context.
Wouldn’t you like to know what is in the Canada Revenue Agency’s (“CRA”) files concerning your GST/HST audit?
How to Claim Refunds for Overcharged Import Taxes Due to Surveillance Certificate Requirements in Turkey
Ministry of Economy determines certain minimum thresholds for certain products in order to force the exporters to pay higher taxes on the products in customs. Ministry determines the minimum value threshold per each kilogram of the imported product and sets forth that any exports into Turkey that does not meet this minimum value threshold shall be required to obtain a surveillance certificate. Based on new precedent, it is now possible to reclaim such overcharged tax and expenses.
Tax investigators have apparently been sifting through the Panama Papers in the hope of rumbling suspected tax dodgers. There is still time to submit a voluntary declaration that can lead to immunity.
By Molina & Co.
Panama is a land blessed by God, where you can enjoy on the same day the tropical heat of its beaches and the fresh air from the high lands.
When you purchase a property in Italy, you need to be aware of the amount of taxes you will be required to pay, and at that stage you need to be informed if you are purchasing a luxury home or not, this might make a huge difference, as a luxury home is excluded from “fiscal benefits”.
Tax system :As a result of enactment of the Tax Law 91 for the year 2005, and its amendment by the Presidential Decision No. 96 for the year 2015, the taxation system in Egypt has been transformed.
Enhanced life estate deeds, commonly known as “Lady Bird Deeds” provide a legal mechanism for property to pass automatically to a person or group of people without going through Florida probate.
The Commissioner of Hong Kong Inland Revenue Department recently commented on the implementation of BEPS project in Hong Kong, particularly in the area of transfer pricing (TP). The Hong Kong Government regards TP legislation and TP documentation requirements are their top priority. The Commissioner also said that the simplified limitation on benefits (LOB) rule as well as the principle purposes test (PPT) will very likely be the norm for Hong Kong tax treaties in the coming future.
China is taking forward the Belt and Road initiative, the national strategy for long term development. It is certain that the emerging markets along the routes are likely to become the new catalyst for the future development of Hong Kong.
The Singapore Government has recently announced in their budget that, the concessionary tax rate for corporate operations that qualify as Corporate Treasury Centre (CTC) would be 8%, decreased from 10%, and such move set the major tax rate to 0.25% lower than the level proposed by the Hong Kong Government as part of their CTC tax incentive measures which are still undergoing legislative process.
Leave or Remain? We will know the answer today! One can imagine that if UK leave the EU, the country is very likely to have their own tax and TP legislation. Facing the possible leave vote, MNCs may eager to determine the potential tax implications such as the absence of the EU Parent-Subsidiary Directive and the imposition of WHT on dividends.
There is a Belgian paradox insofar as, every year, Belgium is ranked by OECD among the highest taxed countries, based on the ratio of the tax burden (state, regional and local taxes, social contributions) and gross domestic product; within the European Union, Belgium is also known for being the second country with the highest tax burden. But Deloitte and the European Commission refer to sophisticated mechanisms.
The reforms to inheritance tax need to be in place by June 30, 2016, yet company heirs in particular still do not know what burdens they will be faced with going forward.
The Republic of Cyprus and the Government of the Republic of Latvia signed in Brussels, on 24 May 2016, a Treaty for the Avoidance of Double Taxation on Income (‘DTT’).
The so-called “Panama Papers” have the potential to reveal tax evasion on a massive scale. German tax evaders can return to a state of tax compliance by way of voluntary disclosure.
According to reports in the Indian media, the Cyprus foreign ministry has confirmed that the Cyprus authorities have informed their Indian counterparts that they are ready to finalise the new double taxation agreement between the two countries, having accepted in principle the Indian government’s proposed changes regarding the taxation of capital gains.
According to [some] calculations there are presently 60 taxes in force in Hungary. Value added tax accounts for 25% of central tax revenues whereas the personal income tax accounts for 13%. However, most taxes account for less than 1% of these tax revenues. The figure of 60 different taxes seems slightly excessive also in an international context.
Unfortunately, many people are still suffering from the housing market crash that began in 2006. It’s particularly painful if you owe more on your mortgage than your house is worth.
One of the most efficient ways to motivate employees is to make them owners. In Hungary, however, plenty of legal and tax obstacles have restricted the introduction of such incentive so far. Changes made to the legal and tax environment in the recent years may yet boost the spread of employee stock programmes in the future.
According to the requirements of the Tax Code of Ukraine taxpayers, whose amount of controlled transactions with one counterparty exceeds 5 million USD (excluding VAT), are required to present the report on controlled operations for reporting calendar year to central executive body that implements the state tax and the customs policy, before May, 1 of the year following the reporting by electronic means electronically in compliance with the law on electronic document and digital signature.
ln December 2015 the Cyprus tax laws were amended to temporarily exempt loan restructurings from tax in order to facilitate and encourage the restructuring of non-performing loans. The amendments affect the lncome Тах Law, the Capital Gains Тах Law, the Special Defence Contribution Law, the Stamp Duty Law, the VAT Law, the Collection of Taxes Law and the Department of Lands and Surveys (Fees and Charges) Law.
International Forwarder is Not Responsible for a Delay in the Release of Goods Due to the Holiday Season in Isreal
We will review the case of a bicycle and electric vehicles importer ("the importer"), who hired the services of a forwarding and customs broker ("the forwarder"). The importer sued the forwarder for a delay in the release of goods from customs.
The Tel Aviv Magistrate Court determined that an importer proved his claim regarding the essence of the goods and accepted the importer's classification. The court criticized the Customs Authority for its conduct in the case, as it failed to preserve samples of the product and submitted opinion reports based on theories and assumptions rather than facts.
Hesse’s Finance Minister, Dr. Thomas Schäfer, has announced that the fight against tax evasion will continue. Voluntary disclosure is still the only way out for tax dodgers.
Importance of declaring both of the spouses in the property declaration.
On the 30/12/2015, The Government of the Republic of Cyprus and the Government of the Federal Democratic Republic of Ethiopia have signed the Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income.
Investors in Scholz Holding GmbH bonds will not receive an interest payment on March 8. The due payment has been deferred until May 31, 2016.
Be it Liechtenstein, Austria or Switzerland, many tax havens have had their day. Anyone who still has untaxed income in foreign accounts ought to consider voluntary disclosure.
Remote trading in Ukraine is developing rapidly, created favorable conditions, therefore it would be reasonable it would be prudent for many companies of distant trade - non-residents to consider the Ukrainian market as one of the high-potential.
Under the Egyptian law there are different taxes that shall be paid for different transactions, estates’ registration and income tax.
Complex tax legislation and changes to the rules can result in mistakes being made by businesses when it comes to tax matters. An efficient tax compliance management system helps to prevent mistakes and avoid sanctions.
Tax Evasion: Automatic Exchange of Information to Trigger New Wave of Voluntary Declarations - Germany
Anyone who has evaded taxes is still able to submit a voluntary declaration that can lead to immunity. With the help of a successful voluntary declaration, it is possible to avoid a conviction for tax evasion.
Since December 2015, U.S. steel producers have filed cases charging foreign competitors with dumping products, U. S. government has twice penalized foreign steel producers as a result. Likewise, the Taiwan based steel manufacture, Chinese Steel Corporation (“CSC”), has filed a petition to the competent authority of Taiwan.
According to Jordanian Corporate law, the non-operating Foreign Company in Jordan is a Company or an entity which has its regional or representative office in Jordan for operations that it conducts outside the Kingdom for the purpose of using such a regional or representative office for managing its operations and coordinating them with its headquarters, and it is prohibited from carrying out any business or commercial activity inside the Kingdom.
Companies have been formed in the past for many reasons in Romania. Over the past few years the Romanian Trade Registry has endeavoured to clean up the number of Romanian dormant or non-trading companies which had been set up in the first flush of a free trade economy as shown on the register. In many cases the owners have let these companies die as they had no interest in them or their assets.
Value Added Tax (VAT) is the tax on the amount by which the value of an article/item has been increased at each stage of its production or distribution which means that taxes are applied to the difference between the seller-purchased price and the resale price. This is accomplished by taking full tax on all sales, but refunding the tax difference to the sellers.
People may not pay taxes for a variety of reasons. They may think that they will not owe anything and the cost to prepare them will outweigh whatever small return they might receive. A recent divorce or death may make the process confusing. Someone may know that they will owe taxes and may try to avoid tax liability by simply not filing. Whatever the reason, the consequences for not filing taxes can be very serious.
One of the current most challenging issues on the incorporation of a company in Romania is the immediate tax impact on the company and its profitability. The majority of Romanian companies were incorporated with the minimum capital of two hundred (200) RON. This means a minimum capital of approximately forty five (45) Euros. This is still the case.
By Kinanis LLC
New laws have recently been enacted in Cyprus, effecting important changes to the Income Tax Law and Capital Gains Tax Law. In addition, a serious change has been effected on the procedure followed by the Income Tax Authorities in issuing tax residency certificates with the aim to secure that the management and control of the tax resident companies is indeed exercised in Cyprus.
You may be ready to start your taxes. You’ve collected your W-2, 1099’s and other documents. You have last year’s tax form for guidance. But, if you’ve gotten divorced in the last year, this year’s taxes may be very different.
At the end of 2007, the Defense Export Control Law, 2007 (hereinafter: the "Law") entered into effect.
Parallel import in Israel is a growing and expanding phenomenon. Many brands are imported not only by official/exclusive importers, but by other importers as well.
Hong Kong and Russia have entered into a Comprehensive Double Tax Agreement (“CDTA”) on Jan 18, 2016. This is the 34th CDTA that Hong Kong has signed with its trading partners. The CDTA sets out clearly the allocation of taxing rights between the two jurisdictions and thus will help investors better assess their potential tax liabilities from cross-border economic activities.
On January 1, 2015, Law No. 5493 entered into force, introducing amendments to the Tax Code of the Autonomous City of Buenos Aires (“TC”) concerning the Stamp Tax.
Those who are engaged in the import of goods from countries with which Israel has entered into trade agreements, enjoy customs exemption on a regular basis, but are constantly exposed to the risk that such customs benefits will be revoked retroactively.
On September 7, 2014, the Israel Tax Authority published a new procedure for voluntary disclosure of previously unreported income and assets, as well as a temporary order to replace the previous procedure, which was in effect since 2005, and the temporary order, which was in effect since 2011.
On regional level, Cote d’Ivoire belongs to three major regional entities: The Economic Community of West African States (ECOWAS), The West-African economic and monetary Union (WAEMU). These countries share the same currency, the same central bank (BCEAO), and the same business law. The Organisation for the Harmonisation of Business Law in Africa (OHADA)
Cameroon is described as the largest economy of Central Africa because of its demographics (20 million), with an area of 475,442 km², and a diversified economy. As a state party to the Organisation for the Harmonisation of Business Law in Africa (OHADA) and the Economic and Monetary Community of Central Africa (CEMAC), Cameroon has adopted financial regulations enacted for the whole countries of CEMAC.
Landmark Case Confirms the Tax Exemption to the Internal Reorganization of an Economic Group in Argentina
On September 7th, 2015, the Federal Court in and for the City of Mar del Plata ruled in favor of the merger between business entities owned by the same economic group. Such decision was based on Law No. 20,628 about income tax (the “income tax law”), its regulatory decree, and precedents from the Argentine Supreme Court of Justice.
In July 2015 the Cyprus government submitted a number of draft laws to parliament to implement the new provisions of the EU Parent-Subsidiary Directive, to simplify the tax regime and make it more attractive, fair, and effective, with the aim of stimulating economic activity and attracting inward direct investment.
Nowadays, owing to the growing importance of the Asian market, multinational corporations are encouraged to set up their corporate treasury centres (“CTC”) in the region.
Be it as a result of the purchase of CDs containing information on tax evaders or cooperation among countries, things are becoming increasingly difficult for tax evaders. Voluntary disclosure represents the only way out for them.
Tax Evasion in Germany: Investigators’ Nets Becoming Ever More Tightly Knit – Voluntary Disclosure Loophole
Whether it be untaxed illicit earnings or untaxed income from capital, tax evaders are taking a big risk. They can address the risk of being convicted with a voluntary declaration.
Tax dodgers who have already closed their accounts with untaxed income from capital in Austria or Switzerland still need to worry about detection. Voluntary disclosure continues to present a way out.
Indirect Taxation Authority is responsible for the collection of all customs duties.
Ever since the first CD on tax evaders was purchased in 2006, the number of voluntary declarations concerning tax evasion has risen dramatically. This remains the only way of returning to a state of tax compliance.
Time Is Running Out for Concealed Untaxed Income from Capital in Germany – Voluntary Disclosure on Account of Tax Evasion
It is now almost impossible for untaxed income from capital in foreign accounts to remain concealed from the German exchequer. As long as the tax evasion has not yet been detected, a voluntary declaration can still be submitted.
The formation of a company in Cyprus is a simple and straightforward process and offers huge tax advantages.
A Trust is an arrangement whereby a person known as the ‘Settlor’ transfers ownership of property to another person or persons, the 'Trustees’ for them to hold on behalf of third persons, the ‘Beneficiaries’. The assets are placed under the control of the Trustees for the benefit of the beneficiaries or for a specified purpose.