Taxation Law Articles
Articles written by lawyers and expert witnesses worldwide
explaining the different aspects of Taxation.
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.
According to the China central government’s 13th five-year plan, it has showed its full support for Hong Kong to participate in the nation's "One Belt One Road" development strategy, in which Hong Kong is going to play a bigger role in China's opening up to the rest of the world.
Bulgarian businesses are subject to VAT registration under specific rules. A brief overview of the requirements for a VAT registration in Bulgaria.
Voluntary declarations with respect to tax evasion have not come to an end this year, which indicates that untaxed income in foreign bank accounts is becoming a burden on those concerned.
The recent amendment of the Luxembourg - Hungary double tax treaty will result in a sharp decrease of Luxembourg-based schemes for Hungarian real estate transactions. Those groups which currently use such schemes for holding their Hungarian real estates will need to react fast.
The IRS collection process is a series of actions that the IRS can take to collect taxes that taxpayers owe if they do not voluntarily pay them. Generally, a taxpayer is required to pay a tax along with filing a tax return. The IRS will assess a taxpayer’s delinquent tax obligation if the taxpayer fails to pay a tax obligation when due. Subsequently, the IRS will send a notice and demand for payment to the taxpayer.
In part because of the high levels of noncompliance with foreign tax reporting requirements (oftentimes out of innocent ignorance), the IRS has developed voluntary disclosure programs that allow taxpayers to come forward, correct their past mistakes, pay past-due taxes, and pay a set penalty (or, in some circumstances, pay no penalty).
Representing yourself or your company in an audit initiated by the Internal Revenue Service (“IRS”) is likely to be an exercise in futility. The IRS employs highly skilled revenue agents who will seek to take advantage of taxpayers who, understandably, are not knowledgeable on the rights and powers of the IRS.
On 5 October 2015, the Organisation for Economic Cooperation and Development (OECD) issued a final report with regards to its Action Plan to address Base Erosion and Profit Shifting (BEPS), as well as a plan for follow-up work and a timetable for implementation. In this article, we shall focus on the action plan regarding transfer pricing (TP) and its tax implications to China and Hong Kong.
Foundations based in Switzerland need to pay tax on their income generated in Germany, even if they pursue non-profit causes.
New Resolution Imposes the Electronic Billing System to Contributors Registered in the Value-Added Tax - Argentina
On March 11, 2015, the Tax Authorities (hereinafter “AFIP”) issued General Resolution No. 3749/2015 (“GR”) which obliges contributors registered in the Value-Added Tax (from now on “VAT”) to apply the electronic invoices’ system to support operations within the framework of the internal market, having to comply since July 1st of this year.
Today it is not a secret that the "raider / unlawful seizures" have become the norm and rather the rule of doing business than the exception to the rule, and both domestic enterprises and large foreign investors are suffering from unlawful seizures. What can be attributed to the notion of "raider seizure". Raider seizure - unlawful seizure of real estate, corporate law, intellectual property by other economic entities, physical entities and public authorities.
Italians Can Derive Tax Benefits from the Newly Enforced Double Tax Treaty with HK when Investing in China
The agreement between Hong Kong and Italy for the avoidance of double taxation with respect to taxes on income and the prevention of fiscal evasion has entered into force.
When a Thai company engages the services of another company, it must comply with a few tax obligations under the Revenue Code. It must withhold and remit a tax of 3% of any fees paid for services, it must itself pay a value-added tax of 7% on those fees, and the contract as well may be subject to a stamp duty depending on the transaction. But what are the implications for a Thai company that engages the services of a company overseas?
The tax authorities are increasingly applying time-series comparisons as a method of estimation in the context of external audits, but according to the Bundesfinanzhof (German Federal Fiscal Court), this is only permissible under certain conditions.
The Ministry of Finance of Cyprus announced on 08 September 2015 the conclusion of the negotiations with Ukrainian Ministry of Finance. The two Contracting States agreed to a Protocol that will amend the Convention for the Avoidance of Double Taxation and the prevention of fiscal evasion with respect on taxes on income when it expire.
Receiving an inheritance can be a blessing, but there are typically tax obligations involved including the inheritance of an IRA. If you inherit an IRA, you should check with an attorney or financial advisor as soon as possible to find out what your options are.
On 17 July 2015, the Hong Kong Government gazetted the Inland Revenue (Amendment) (No.2) Ordinance 2015 (“the Ordinance”), which extended the profits tax exemption for offshore funds to private equity (“PE”) funds.
The European Union wants to change its tax policy. One of its aims is for businesses in future to pay tax on their profits in the state in which they are generated.
During a recent visit of a senior Iranian delegation to Cyprus, the Cyprus-Iran DTT was signed. The DTT is yet to be ratified or come into force, a fact that is expected to happen in the next few months.
Depending on the extent of a couple’s assets, a divorce can raise some very complicated financial questions.
The much awaited indirect tax reform in India will be further delayed.
A new law went into effect in New Jersey last year, which makes it a criminal offense to issue a bad electronic funds transfer.
Islamic finance is one of the fastest growing sectors in the international financial market. Given the strategic importance and influence of the Middle East investors, Islamic finance is increasingly in demand by investors wanting investment and financing products compliant with Islamic law (known as “Shariah”).
The prohibition of tax deductibility of bribes and the risk of claiming these payments as "expenses" in order to get a tax return under the Greek law.
On July 1, 2015, the President of Cyprus forwarded several proposed tax law amendments to the Cyprus Parliament for ratification. Provided the parliament enacts them into law which is a certainty they will take effect upon publication in the Official Gazette of Cyprus.
The application for the tax benefit must clearly state the provisions supporting the right for the benefit.
Article 528-A of the Commercial Code, added by Act 85 of 2012, deals with the dissolution of companies and explains causes and effects of their permanence in time to the end of the liquidation of its assets, after collecting their debt and pay its liabilities.
Hong Kong was named among the thirty uncooperative tax jurisdictions in the European Commission’s (“EC”) tax haven blacklist released on June 17, 2015. The tax jurisdictions on the aforesaid list had been flagged up by ten or more European Union member states. Six of the thirty countries blacklisted are former British territories. Countries notable by their absences include Jersey, Luxembourg and Switzerland, whose secretive tax system are well-known to the world.
Capital amnesty law is adopted granting release from criminal, administrative and tax liability for individuals who have voluntarily declared their property.
The Chinese real estate boom in Australia will only be accelerating. It is predicted that an additional $70 billion demand for real estate from Chinese HNWI investors and immigrants over the next five years to 2020. It is an inevitable trend since China is undergoing its unprecedentedly greatest wealth creation, and Australia is on China’s doorstep.
Over the last fifteen years Canadian tax law has undergone a remarkable evolution in the legal remedies available to assist in fixing tax mistakes. Over this period, tax rectification has developed from being virtually unknown, to being a potent addition to tax lawyers' arsenal of tools available to fix tax problems.
Any state cannot exist without taxes and control over the timely treasury reimbursement and taxes are conducted by state revenue bodies. One of the instruments of tax policy is tax inspections. Our last dispute practice between tax authorities and entrepreneurs on the additional charges based on the results of the tax inspections shows that entrepreneurs in general are always "at gunpoint" of the tax authorities and they are not protected from repeated for the same period inspections.
Granting Preferences to Kazakhstani Legal Entities in Connection with their Investments in Kazakhstan
The issues related to the provision of preferences to Kazakhstani legal entities in connection with their investments in Kazakhstan are mainly governed by the Law of the Republic of Kazakhstan “On Investments” dated January 8, 2003 (hereinafter the “Investment Law”) and the Code of the Republic of Kazakhstan “On Taxes and Other Obligatory Payments to the Budget” dated December 10, 2008 (hereinafter the “Tax Code”).
By MMLC Group
The State Council of China has recently issued several decisions for the purpose of further decentralization and the abolishment of tax administrative approval and registration requirements.
The “anti-offshore” law relating to the use of public funds, introduced in 2011, aimed to prevent off-shore companies with unidentifiable ownership structure from acquiring grants out of domestic and EU public funds. The original intention of the legislation seriously distorted, however. Numerous innocent foreign-owned firms, including Hungarian subsidiaries of US-based multinational firms got trapped by the rules.
Investors from different countries are continuing to establish their offices in Kazakhstan and many companies are willing to do business here. The rate of success stories for investors in Kazakhstan is good enough. However, there is always something new and unexpected when a foreign investor starts its business in an unknown country.
In light of increased recent interest in incorporating corporations in Hong Kong and in Singapore, we have summarized briefly hereunder the procedures and the advantages of such corporations, as follows:
How many taxes do you have to pay? And where can you actually pay fewer taxes? The “Swiss Tax Report 2015″, from the highly regarded auditing and consulting firm KPMG, provides you with all the answers.
The new year of 2015 also marks the implementation of the Cyprus – Lithuania Double Tax Treaty (DTT), which was initially signed in June, 2013.
Business expenses are the associated costs of carrying on a business. Such expenses are typically deductible if a business is operated to make a profit.
Foreign companies wishing to open a branch in Ecuador, should be incorporated in their country of origin as a trading company, may be of limited liability or a Inc and consider the following issues.
They are frequently in the news, passing out fliers about not paying taxes, and conducting meetings in local hotels and restaurants about not being beholden to the government. Often referred to as “sovereign citizens,” these groups believe that they have found loopholes that exclude them from following laws by which they do not wish to abide. But, are sovereign citizen groups right, or is their interpretation of the law off base?
Firstly, is important to understand the cause of money laundry crime. Usually, is related to drugs traffic, terrorism, trafficking of humans, others international crimes. In 1989, the group of seven (G-7), composed in those days by Italy, United Kingdom, France, Canada, United States, West Germany and Japan, create Financial Action Task Force (FATF).
The Cyprus International Trust is a powerful asset protection tool because it effectively removes the assets from a less favorable jurisdiction, and places the ownership of the assets in the Trust.
Information about the tax liabilities of foreign investors in Turkey.
Turkey aims to encourage production and export activities, fasten the entrance of foreign capital and technology in Turkey and develop the international trading activities through the grant of incentives to the investors. In the light of that, the local and foreign investors have equal access to the investment incentives system in Turkey.
Lease services often lead to uncertainty from a VAT perspective. Some services which seem like lease at first glance do not meet the criteria “lease” for VAT purposes. The improper classification can lead to surprises: on the one hand the lessor’s deduction right can be challenged, on the other hand a seemingly VAT-exempt transaction could trigger VAT liability. A recent ECJ decision will set standards for these situations.
As the world seems to develop faster and faster, a new gadget has been placed to the disposal of the foreigners and non-resident persons in Estonia, namely the digital identity card also known as e-residency.
Proposed Price Changes for Medicinal Products and Medical Devices in National and Foreign Currency in the Ukraine
On March 13, 2015 on the web-site of the Ministry of Healthcare of Ukraine the draft of the Regulation of the Cabinet of Ministers of Ukraine was published, which is consider to change the Regulation of the Cabinet of Ministers of Ukraine “On reference pricing for medicinal products and medical devices procured by the state and local budgets”, dated 02.07.2014 N 240, in the aspect of the declaring currency of wholesale and selling price (hereafter as the Draft of Regulation).
Cyprus and Barbados announced earlier this month, that they are to begin negotiating a double taxation treaty to strengthen economic relations between them.
Switzerland has perhaps had its day as a tax haven. According to media reports, Swiss investigators are supporting German tax investigators in searching several banks.
The Hungarian government just recently finalised the new rules for the controversial EKAER system.
The choice for the appropriate legal structure to transact business in the United States (“U.S.”) depends on a combination of factors relevant to a specific activity or sector, as well as on the needs and goals of the investor.
Deforestation Tax in the Democratic Republic of the Congo: Problematic of Tax Liability of Mining Titleholders
For some time, mining companies in the Democratic Republic of the Congo are facing the National Forest Fund, (“Fonds Forestier National”), a technical and financial public establishment set up by the law N° 011/2002 of 29 August 2002 relating to the Forestry Code (“Forestry Code”) for the payment of the “deforestation tax” as a result of the deforestation made by them concerning the mining areas covered by their mining titles.
It is possible to evade taxes even in the absence of intention. In these cases, an amended tax return is preferable to a voluntary declaration.
A Cyprus company can be registered within two working days provided the pertinent documentation is submitted to the Registrar of Companies.
The Cyprus Ministry of Finance officially announced on 09 March 2015 that the Republic of Cyprus and the Kingdom of Bahrain signed a Treaty for the Avoidance of Double Taxation on Income and on Capital.
Wealthy Florida residents who are married or planning to get married might want to consider creating a prenuptial or postnuptial agreement before they consult their financial advisor to plan their tax strategy for the coming years.
Software developer companies fall under a very favourable corporate income taxation in Hungary. Moreover, their income is local business tax exempt. Surprisingly, however, most of such companies are not aware of their beneficial status, losing billions of forints as a consequence.
It's not a secret that Ukraine is still one of the market dark horses in context of entrepreneurship. Not many of large companies venture to base their businesses here despite of the wide range of potentially profitable areas for investment. The events of winter and spring of 2014 scared even those who worked steadily for our economy for years. However, now due to the current European course, there are good prospects for the climate improvement in this area
Legal action can be taken even against the assessment notice of a tax office. Those who get involved in a tax dispute normally require plenty of stamina and competent legal representation.
Due to a number of important Supreme Court decisions in the 21st century, married same-sex spouses are entitled to a number of benefits that were previously outside their reach. While domestic partners may be entitled to some benefits, married spouses are typically eligible for more benefits. Marriage is a factor in many federal benefits.
Beginning in 2015, the general rate will be 24% instead of the current rate of 24.75%.
By LPA Law Firm
Foreigners who wish to reside in Albania on a long-term basis (in any case more than three months within each six-month period) are issued a residence permit.
The recently adopted tax law changes significantly expand the definition of related parties. As of 2015 not only those companies will qualify as related parties which are connected in their ownership chain, but also those with an overlap in their management. As a result, the number of transactions where parties have to apply arm’s length pricing will increase. The new definition may, however, cause uncertainties as well.
Tax implications on certain immigrants and non-immigrants.
If you own a property in Spain and you are non resident at tax purposes here, you are obliged to present and pay the Non Resident Tax Return, which must be filed and presented before the 31st of December each year.
When the business faces a cash flow problem, many business owners use the payroll taxes collected but not yet turned over to the IRS.
It is becoming increasingly difficult for tax evaders to remain undetected due to the automatic exchange of information between EU member states, particularly as Switzerland has signalled its willingness to cooperate.
Unpaid Income Tax Establishes Liability of the Managing Director of a German Limited Liability Company
In terms of the overall responsibility, a managing director is also liable for the income tax of employed workers that is not paid to the tax office.
North Rhine-Westphalia’s (NRW) Minister of Finance, Walter Borjans, announced in the Rheinischen Post Online that NRW will continue purchasing CDs with data on suspected tax evaders.
The number of amended tax returns in cases of tax evasion continues to rise. According to media reports, it doubled in the first half of the year 2014 compared with the same period of the previous year.
In the case of inheritance, there is a risk of becoming guilty of tax evasion, particularly if the estate could include illicit earnings.
Turkish parliament has enecated the Law No: 6552 that has been promulgated as of September 11, 2014 and provides restructuring for unpaid tax debts and administrative penalties.
Tax evasion has represented a lucrative, albeit criminal, business not only for tax evaders but also some banks. An amended tax return can present a path to legality.
Tax evasion is a criminal offence which not only entails heavy financial penalties, but also custodial sentences. By submitting an amended tax return, you can obtain an exemption from punishment.
All states have their own inheritance laws. In succession cases involving a foreign element, the question arises as to which inheritance law is applicable. In many cases, this is a complex matter.
The German Federal Constitutional Court (Bundesverfassungsgericht) is currently dealing with inheritance and gift tax. The focus is the question of whether tax benefits for businesses are justified.
Nasty surprises can be a risk in the case of inheritance, particularly if an estate includes untaxed illicit earnings. Heirs must be careful.
Legal Notice 269 of 2014 has amended the Malta Retirement Programme Rules which were originally promulgated in 2012.
In the event of inheritance, the state generally cashes in on inheritance tax, yet money can also be saved with respect to this tax.
By virtue of two legal notices published on the 8th of July, the High Net Worth Individuals Rules (HNWI Rules) have now been amended to reflect the Global Residence Programme threshold, both in terms of tax and property value (be it purchase or lease), and a new special tax status is presented.
Recently, on 18 July 2014 Order no. 1847 was issued by the President of the National Agency for Fiscal Administration to cover the approval of the application and the forms to be used by inactive taxpayers.
By Loeb Smith
The Cayman Islands (“Cayman”) continue to be the leading offshore jurisdiction for the establishment of both hedge funds and private equity funds. Typically, private equity funds are structured in Cayman as exempted limited partnerships (“ELPs”) and the introduction of the Exempted Limited Partnership Law, 2014 (the “New ELP Law”), which came into force on 2nd July 2014, will enhance the attractiveness of Cayman as the leading offshore jurisdiction for private equity funds.
Following the signature of the intergovernmental agreement (“IGA”) between Malta and the US on the 16th December, 2013 whereby the latter agreed to implement Foreign Account Tax Compliance provisions (commonly known as FATCA) in Malta, the Inland Revenue Department (“IRD”) has issued draft FATCA Regulations and Guidelines implementing the said intergovernmental agreement.
By MMLC Group
This article looks at the reasons behind the newly announced reduction in VAT for biological products by the Chinese government.
In 2008, when it was revealed that wealthy individuals around the world were utilizing accounts and trusts in Liechtenstein to evade taxes, the United States initiated a coordinated effort with foreign governments to combat tax evasion through the use of offshore trusts and accounts. The U.S. Department of Justice (DOJ) has since launched criminal investigations of several foreign banks, many of which are ongoing.
The Statistical Office of the European Union (Eurostat) and the European Commission's Directorate-General for Taxation and Customs Union has issued a detailed statistical and economic analysis of the tax systems of the Member States of the European Union, which presents an overview of the tax system in each of the 30 countries covered (EU countries, Iceland and Norway), the revenue trends and the main recent policy changes.
Tax Liability in Joint Stock (“Anonim Şirket”) Companies As it has been known, administration and representation of joint stock companies are carried out by board of directors of the company.
U.S. taxpayers hiding assets abroad should take note of the Internal Revenue Service’s plan to sharply increase penalties for such acts, while those who unintentionally fail to disclose offshore accounts will experience much more leniency.
The form for the submission for tax purposes of part-time, self-employed individuals has been amended by virtue of Legal Notice 186 of 2014 [Part-Time (Forms of Self-Employed) (Amendment) Rules, 2014], therefore replacing the previous form in toto.
Corporation taxes came into force on April 2012, which applies to all legal entities that are duly registered in the Costa Rican Public Registry (e.g. “S.A.”, “LTDA”, among others), as well for those corporations that are in the process of being registered or that will be registered in the future.
Extra! Extra! Read All About It! IRS Commissioner Announces That Changes Are In the Offing For OVDP 2012
On June 3, 2014 the new IRS Commissioner, John A. Koskinen, gave a speech before the International Business - OECD International Tax Conference. His speech covered the history of the offshore enforcement initiative since the UBS debacle in 2009. His remarks acknowledge what most professionals in the tax community have recognized since the inception: that OVDP needs more tweaking in order to meet the overall goals of enforcement and fairness.
In a case that has raised eyebrows in the tax community, a jury in the Southern District of Florida has sustained the IRS’s assessment of multiple willful FBAR penalties against an American business man and bank director.
What is an installment agreement? An installment agreement is an option for those who cannot pay their entire tax bills by the due date. It allows taxpayers to pay the amount due over a period of time
Since the IRS announced the 2009 Offshore Voluntary Disclosure Program (OVDP) over five years ago, our firm has been assisting taxpayers submit accurate and complete disclosures in accordance with the program guidelines and procedures. The evolution of the OVDP through the 2011 and 2012 programs has brought a longer look-back period, steeper penalties, and more insight into IRS positions and procedures at different points in the program.
With FATCA set to take effect on July 1, financial institutions around the world have been lobbying to delay implementation of the law, citing concerns about costs and potential disruptions to global markets.
In case you have a secret account in Switzerland with a Swiss bank, if you are a US person, if you have received a letter from a Swiss bank demanding to waive your rights to have bank secrecy, is a good idea if you start to act proactively. You can qualify for the OVDP or you file a late FBAR. It is worth to analyse this complex topic on a case-by-case basis.