Taxation Law Articles
Articles written by attorneys and experts worldwide
discussing legal aspects related to Taxation.
Rescued From the Brink of Insanity: Practical Advice for Making the Decision to Opt Out of the OVDI - Part II
Hypotheticals demonstrating when opting out is detrimental to the taxpayer.
Rescued From the Brink of Insanity: Practical Advice for Making the Decision to Opt Out of the OVDI - Part I
Opting Out: The solution for the non-willful OVDI taxpayer? Hypotheticals demonstrating when opting out is in the best interests of the taxpayer.
Argentina: Tax Havens - Publication of the List of Cooperative Jurisdictions for Tax Transparency Purposes
The National Tax Authority (“AFIP”) published today in its “web” site the list of countries, jurisdictions, territories, states and special tax regimes which qualify as cooperative for tax transparency purposes (the “Cooperative Jurisdiction List”).
The unprecedented level of economic growth in Turkey during the last decade have created an economy with a GDP person of USD$ 10.000, an inflation rate cut down below the double digits, a purchasing power more than quadrupled, capacity utilization ratio of 75.6%, a government budget deficit below the Maastricht criteria of 3% and a public debt to GDP reduced down to 36% of the GDP.
In line with its high economic growth and its transformation in to an economic hub in its region, Turkey is recently investing alot to transform itself in to a center of high tech and R&D.
I. INTRODUCTION Turkey has been trying to take the strong measures against tax havens and monies left to these countries, but the measures still seem not enough. In order to understand this, foreign investors’ tendency and applicability of Turkish laws should be examined.
Today, in global cash flow around the world made multinational companies to think more on tax benefits and cost effectiveness before they invest in a country.
The problem of taxation of permanent representative offices of non-residents (including multinational pharmaceutical companies) has recently gained considerable importance, not least of all due to the attempts on behalf of the tax authorities to make such permanent representative offices pay the taxes in Ukraine. Such attempts of the tax authorities have several times been backed up by the courts, thus the debate to define the “tax nature” of representative offices has become a pressing issue.
Beginning in 2011, the IRS started cracking down on taxpayers who did not file gift tax returns after making gifts that required reporting.
Paying tax is painful. But reading about it shouldn't be.
Whether real estate is being acquired entirely new in the context of property acquisition or if it was already in the partnership’s possession is an important fact.
Italy’s Parliament approved a controversial law on Friday forcing tech giants like Google to sell advertising online only through Italian intermediaries, provoking anger from digital economy experts.
A rather detailed introduction of the legal aspects of outbound investment from China to foreign countries based upon the legal reality of China before 2012, which is undergoing further major changes in China at the moment.
For millions of Americans, the holiday season is about giving and charity, and few stop to consider the state of their personal finances and taxes. But, the end of the year is also the end of a tax period for individuals, meaning that come December 31, they cannot make any more changes that will help reduce the taxes they will have to pay in a few months.
New Jersey is one of only a few states that impose both an inheritance tax and a state estate tax. The inheritance tax applies when someone who lived in New Jersey, or owned property there, leaves property to someone who isn’t a close relative. The tax rate depends on how closely the inheritors and deceased person were related.
New Jersey collects both an inheritance tax and its own estate tax, separate from the federal estate tax.
Those who have dabbled with tax laws much at all are probably familiar with the general mantra that any money received may be taxable income. They may also be familiar with the idea that payments over a certain amount or in certain types of relationships (like employer/employee) often require that the payer ensure taxes are taken out before the balance is given to the payee. But what about gifts? Is there any tax liability for giving a gift?
In 2014, essentially all the financial institutions operating in Panama will be required to submit information to the United States (IRS) authorities, concerning “American citizen” in Panama.
Perhaps you are one of the fortunate few who has achieved a level of wealth where you are legitimately concerned that the ebb and flow of the U.S. economy could have a dramatic effect on your personal finances. Or, perhaps, you have heard that there are ways to avoid certain taxes if you keep your money offshore.
A Message from Uncle Sam to Taxpayers Who Have Undisclosed Foreign Bank Accounts: the Clock Is Ticking
OVDI: Is the IRS playing unfair? Read on...
Everyone has seen a few cents on the ground, likely dropped while someone pulled a ring of keys from their pocket. While we would probably not think twice about picking up a penny, what if it was a bank envelope full of $100 bills? It may seem like a dream come true, but there are certain legal obligations when one finds misplaced money.
As the real estate market in the U.S. has made a strong indication of recovery, some outside of the United States have begun to look again at American real estate investments as a possibility. This leads some to wonder, though, whether it is even possible for a foreigner to buy real estate in the U.S.? If so, are there any special laws to be aware of or taxes that must be paid?
A criminal investigation conducted by the IRS is different from a civil investigation. Criminal investigation of taxpayer returns or fraudulent activity is conducted by the Criminal Investigation Division of the IRS (CI). CI is the heavy artillery of the IRS arsenal.
In an “eggshell audit,” you must walk on eggshells to represent your client effectively in the civil examination without exposing the fraud, all the while honoring your duties to the tax system not to mislead the revenue agent.
To File or Not to File an Amended Return to Correct an Original Return That Has Criminal Tax Dimensions
Your client has filed a fraudulent return underreporting his tax liability. He now has misgivings. He comes to you and expresses great concern. What should you do?
All of us procrastinate. But some take things to dangerous extremes – putting off the filing of tax returns for a few years, or even many years. According to the IRS, each year some ten million people fail to file their tax returns. Nonfilers, as the IRS calls them, are skating on thin ice. They face both criminal and civil consequences. Luckily, these problems can be resolved if addressed, but they can also bring imprisonment and financial ruin if ignored.
New regulations in Turkish International Trade Law came into effect on 10.01.2013 in order to simplify customs procedures for international traders. With the new regulation, economic operators can apply for an Authorized Economic Operator (AEO) status, which is given permanently with no expiry, either to have easier access to customs simplifications or to be in a more favorable position to comply with the new security requirements.
According to the California Franchise Tax Board, the state is owed more than 6.5 billion dollars in tax revenue. Some contend that implementation of a whistleblower rewards program could help to bring in some of that lost revenue.
Malta's continuous effort in extending its tax treaty network (nearly 70 treaties entered into by Malta up to the end of October 2013) is again evidenced by a new tax treaty signed with Liechtenstein.
Further to the suspension of the Permanent Residents Scheme in December 2010, the Government of Malta has put in place a scheme for special tax status aimed at attracting internationally mobile, high net worth individuals (HNWI) to become tax resident in our islands and benefit from a favorable tax rate of 15% on any income remitted into Malta.
Trusts are still alien to the Italian legal system as they are essentially based on concepts in contrast with the Italian general principles on ownership. As the Italian legal system does not have a definition of trust, the Hague Convention has provided one, together with rules to be applied by Italian judges in the presence of conflicts in case of assets in trust located in Italy.
The value added tax (VAT), is a type of indirect turnover based tax that is levied during the final phase of the purchaser of the goods and is included in the price of the purchased item or service. Being a turnover tax, VAT is levied at each stage of the production and the distribution process as well.
When persons get together to start a business, they generally share a common vision and goal for the business. However, as the journey progresses, the expectations, ambitions and even commitment of the individual shareholders tend to diverge.
When assessing the value of a property because of the duty to disclose information and pay gains in divorce proceedings, the costs incurred are not tax deductible.
It was reported in the past weeks that a “total of 320 professionals who have taken up residence in Malta are benefiting from a maximum tax rate of 15% on their €75,000-plus salaries”.
Under certain circumstances, inheritance tax charged in another country cannot be deducted or considered as a liability against the capital assets of a German testator.
One of the most common questions often asked of corporate attorneys by small business owners who are just setting up their first company is how to write off expenses. Usually, two of the most important expenses these people want to write off are meals and entertainment expenses.
If inheritance tax paid in a foreign country is not meant to be deductible in Germany, it is disregarded when the German inheritance tax is calculated.
In 2012, with the dreaded “Fiscal Cliff” looming, many were worried about the inaction that would cause the estate tax exemption level to fall to $1 million. However, in the first two days of the new year, Congress finally passed the American Taxpayer Relief Act of 2012 (ATRA) which makes permanent the $5 million exemption as well as portability.
The American Taxpayer Relief Act of 2012 (ATRA) extended and made permanent (i.e., until Congress changes its mind) a number of key estate tax provisions. This includes a $5 million ($5.25 including inflation) estate tax exemption and portability of a deceased spouse’s exemption to the surviving spouse. The result of this means that married couples can shelter up to $10.5 million of their estate from federal taxes.
The Supreme Court’s recent decision to allow same-sex couples to receive marriage benefits raised several questions that left many lawmakers, financial institutions and individuals anxious for answers. Now, finally, the IRS has issued guidance in Revenue Ruling 2013-17. A Revenue Ruling is the IRS’s interpretation of the law.
Due to disparities that must be calculated, investors in shipping funds may have to wait a long time before benefiting from expected tax savings.
If you have already been sued, it is probably too late to do anything to protect your assets. But, if you are a planner and looking to protect your assets before you have a problem, this article is for you.
This article provides a brief introduction to the German inheritance tax.
Cyprus had been the first Member State to experience and implement the resolution and bail-in approach with respect to failing banks, thus relieving taxpayers and direct investors from suffering the burden of rescuing failing, bad-managed banks. But there can be no doubt that Cyprus is a jurisdiction actively protecting foreign direct investment at the highest levels.
Congratulations on your decision to start a new business. The question you may be asking, though, is what kind of business you should form? What is the difference between a corporation, an LLC, and a partnership? Why form one and not another?
The confidentiality of tax information is privately agreed, but this does not prevent the collection of information from a tax investigation subsequent to request for confidential information.
Double tax treaties provide for relieving double taxation; sometimes double taxation relief is extend to tax paid by foreign subsidiaries and other foreign affiliates in terms of economic definition.
On the 29th July 2013, the VAT Department published guidelines in relation to the Malta VAT treatment of short-term yacht charters starting in Malta, which guidelines are largely similar to the interpretation which applicable to long-term yacht leases.
Following the launch of the Global Residency Program earlier this month, the Government has (by means of Legal Notice 178 of 2013) amended the HNWI Rules.
The old English proverb says, “There are only two things in life that we can’t avoid, death and taxes,” – and it confirms once again the value and importance of the tax due diligence procedure as one of crucial attributes of most M&A (mergers and acquisitions) transactions.
Acknowledging the importance of the IT sector in Ukraine’s economy, the government has provided tax breaks to qualified companies and individuals in the IT sector that fall under the category of "subjects of the software product industry". From the period of January 1, 2013 until January 1, 2023, qualified IT companies and individuals are subject to a reduced profit tax rate of only 5%, provided they maintain a separate accounting of income and expenses of their activity in this sphere.
Almost twenty years have passed since the enactment of Law 8 of 1994, which until the end of the year 2012 regulated tourism investments and incentives in the Republic of Panama. This body of law responded to a national strategy and a master plan oriented towards promoting tourism related investments in Panama.
The 2013 Global Residence Program Rules have been finally published. Conversely as what has been expected however, these Rules are only applicable to non-Maltese, non-EEA and non-Swiss nationals.
Voluntary Disclosure in Relation to Untaxed Income Received from Service Fees Charged to an Agency - Germany
Reportedly, a number of university-level professors have voluntarily made disclosures in relation to untaxed income received as service fees charged to a PhD conferral mediation agency.
The Metropolitan Court passed a strange judgement in a recent case. According to the judgement, taxpayers cannot argue that they used arm’s-length price in their transaction with their related companies if the corresponding transfer pricing document does not meet the legal requirements.
Legal Notice 152 of 2013, has brought into effect amendments to the Highly Qualified Persons Rules, applicable retrospectively from the 1st of January 2013.
Tax avoidance like tax evasion is a worldwide phenomenon, prevalent in all countries including Cameroon. It is not a modern device, neither merely resulting from the present day imposition nor necessarily brought about by the strong and popular resentment of taxation. The origin o f tax avoidance can be traced to the thirteenth and fifteenth centuries England where the “Use” and the ‘’Trust’ were employed to avoid the incidence of manorial tenure.
Financial criminal offenses may occur more readily and more frequently than most people expect. In a recent decision, the BGH seems to have tightened its jurisdiction on tax misdeeds.
Sales tax is a tax incurred when deliveries or other services are exchanged. For this reason, sales tax is incurred with respect to nearly every service and every product.
An overview of key developments affecting doing business in Angola and an introduction to its legal system for foreign investment, currency regulations and incentives, business vehicles and relevant restrictions and liabilities. It provides short overviews on the laws regulating employment relationships including redundancies and on competition law, data protection, product liability/safety, taxation/tax residency and IP rights over patents, trade marks, registered and unregistered designs.
The German Federal Supreme Court (BGH) is said to have tightened its jurisdiction on tax offenses in a recent ruling. In some cases, a suspended sentence is excluded.
Whether real estate is being acquired entirely new in the context of property acquisition or if it was already in the partnership’s possession is an important fact.
In the judgement S&D Yachts Limited vs MY Nautonnier delivered by the Court of Magistrates in Malta on the 3rd May 2013, it was held among other things that a vessel registered as a commercial yacht was not automatically entitled to an exemption from VAT.
India and Malta renegotiated the Double Taxation Avoidance Agreement (DTAA) between the two countries with the intention of aligning to changes in domestic laws.
The Federal Court of Justice (BGH) has seemingly tightened the jurisprudence on tax evasion. This shall particularly concern tax evaders who have failed to pay tax on multi-million euro amounts.
The 2013 amendments to the VAT legislation brought about changes to the place of supply rules in relation to long-term leases of yachts (leases for more than 90 days) to a non-taxable person.
Territoriality Tax Rule or Territorially tax system means “Do not pay taxes in Panama incomes for offshore source”, is a major fiscal benefits for foreign investors, however the country was victimize for Criminal Organization, choosing our jurisdiction for laundry money activities.
The authors offer an overview of the process to obtain a bank account in Panama.
A business can potentially be acting anti-competitively if the notice of included sales tax only becomes visible after clicking on the button “shipping and payment options”.
Up to now, it was not clear from a tax law perspective whether accrued property transfer tax constitutes incidental acquisition costs or an expense that is immediately tax deductible when there is a change to the composition of partners.
The BFH has quashed constitutional doubts concerning the 1%- rule on the basis of the gross list new price.
Thailand is recovering from historic floods that inundated the country on a scale never seen before. Drastic taxation measures helped to boost the economy in 2012. Despite uncertainty about the evolution of the global economy, the Thai economy is expected to rebound sharply with GDP growing by 5.5% in 2012 and 5% in 2013 (according to The World Bank).
Delay in Application of Uniform Act Organizing and Harmonizing Company Accounting Systems - Democratic Republic of the Congo (DRC)
The entry into force of the OHADA Treaty in the Democratic Republic of the Congo (DRC) resulted in the immediate application of the Treaty, its Regulations and Uniform Acts. It also led to the repeal of any DRC anterior legal instruments contrary to the Treaty and its Uniform Acts.
The audit of the authenticity of invoices has been one of the primary inspection targets for the National Tax and Customs Administration (NAV) during the last few years. Despite the numerous Hungary-related decisions of the European Court of Justice last summer, the legislator introduced a series of year-end tax law changes that will allow the tax authority to maintain its current practice.
The Internal Revenue Service Criminal Investigation Division serves the American public by conducting criminal investigations regarding alleged tax violation and various money laundering statutes. The IRS is the only federal agency that can investigate potential criminal violations of the Internal Revenue Code. There is a long, complicated investigation process involving many levels of personnel that goes into prosecuting these types of criminals.
The Hawaii Department of Taxation has announced its goals for 2013, and the #1 goal is to increase voluntary compliance. The Department is going to focus its outreach and enforcement efforts on non-compliant groups, including non-residents and persons "new" to the tax system.
The new Inheritance and Gift Tax Act that came into force on 1 January 2009 with the reform to inheritance tax is to be re-examined with respect to its constitutionality.
It is wise to know what the tax changes are when planning for the next tax season. Following are a few of the changes for 2013 that could affect the amount of taxes that you will pay.
High-net-worth individuals with valuable possessions around the globe need effective asset protection tools to manage and safeguard their wealth, as a respond to the differing legislations and tax regulations of the various jurisdictions.
In Australia, failure to comply with taxation laws can lead to a Commonwealth criminal charge. What happens if you are found guilty and what penalty can you receive? Know the law for this offense and what you should do if you are charged.
Tax avoidance versus tax evasion has always been a hotly debated subject. The difference between tax avoidance and tax evasion is very narrow. Nowadays tax laws are being drafted in a manner to diminish the possibilities of tax avoidance though, yet tax planning offers many avenues to reduce tax liability. From this perspective, the study to differentiate between tax evasion and tax avoidance is interesting and noteworthy.
The world of law, tax and real estate continue to become more and more complex. Costs can be a strong deterrent to a person seeking professional advice. Wischmeyer Professional Services Access Plan allows employers to provide valuable resources to their employees at minimal cost and can even benefit themselves. Access to free consultations with an attorney, accountant or real estate agent with discounts if services are needed for professional resources and services.
The re-election of President Obama ensures that the Affordable Care Act (“ACC”) will be implemented. The ACC imposes obligations that most individuals maintain health care coverage. Individuals who fail to comply with the law are subjected to penalties in the form of excise taxes. For permanent residents who may maintain coverage provided by a foreign company or government and for expatriates living abroad, the individual mandate creates a number of potential issues and concerns.
In view of world wide economic integration, the international aspect of income taxation has become increasingly important. This note provides an introduction to the policies that countries seek to advance. The questions of source, jurisdiction and distinction between resident and non-resident from the perspective of international taxation are an important issue and in this perspective tax treaties and related instruments have been reviewed.
Many Americans live in fear that the dreaded IRS man will come knocking with in-home income tax audits. The truth of the matter is that the auditing process usually begins with a letter or a phone call that you must respond to.
Income tax return preparers may be subject to a number of general penalty provisions as well as specific preparer penalties aimed directly at them. Beware getting yourself into a position of having overstated deduction areas repeatedly. You can lose your right to prepare returns if you do.
The gift tax exists because of the fact that people logically transfer assets to their future heirs while they are still alive in order to avoid the estate tax at their death
By MMLC Group
Foreign investors need to understand China's indirect taxes, especially its withholding taxes and VAT reforms. China relies greatly on these for its revenue base, thus enforcement of these taxes is strict. This article reviews these indirect taxes and identified major current issues.
Malta’s position within the financial services, gaming and aviation sectors, is further bolstered by the newly introduced 15% flat tax rate on; income derived from employment in Malta, by persons not domiciled in Malta and working in either of the ‘eligible offices’ as defined by the HQP Rules. With a minimum annual tax payable of € 11,250, equating to a 15% tax rate being applied to an income of € 75,000, tax planning has become a lot simpler.
The VAT Department in Malta has issued guidelines relating to aircraft leasing. The guidelines which are based on the current yacht leasing measures, seek to mitigate the VAT impact on the purchase of an aircraft and its engines.
Until recently, residential property owners in Ukraine did not need to pay any property tax whatsoever. At long last, however, the government has passed legislation designed to remedy this significant loophole in its ongoing tax collection efforts.
Inheritances may possibly expire at the end of the year, because of a legislation alternation in compliance with the inheritance reform. The reform of 2010 changed the actual guidelines and may even display its effects for the first time this coming year. On the 10.09.2010 the new inheritance and also limits legislations grew to be useful.
In order to regulate the levy of Sales Tax on services provided, rendered, initiated, received or consumed in the province of Sindh, the provincial government enacted, The Sindh Sales Tax on Services Act, 2011,1 which became enforceable from the first day of July 2011.2
Even inheritors of tax evaders should eventually take criminal prosecution against them into account, since more and more tax investigations due to fiscal fraud were lately brought to light. It seems that a stricter pursuit of tax evaders is to be expected.
General principles on ‘Taxability’, ‘Jurisdiction’, ‘Taxable person’, ‘Taxable event’, Taxable supply, Tax exemption, Adjustments, etc bear a common phraseology among different jurisdictions, hence understanding of the general principles elucidated by courts of different jurisdiction will extend us new grounds for understanding the complexities of issues arising between taxpayer and tax department.
This article is dealing with the battle over the salse taxes over beer in Israel. It was recently reported that the Minister of Finance raised the sales tax rate on beer from NIS 2.18 per liter to NIS 4.19 per liter and in light of this, local producers of beer claim that they will not be able to withstand such a tax raise.
The basic laws governing taxation are covered by the Tax Code of the Russian Federation (TC RF). The Tax Code consists of two parts. The first part of the Tax Code came into effect on January 1, 1999. It contains the basic rules that are applicable to tax legislation in Russia, including the concepts used in the tax law, the principles of taxation, the system of taxation, the status of taxpayers and government bodies involved in taxation...
levy that is imposed on gifts that you give to others if they exceed a certain amount. Every year you can give as much as $13,000 to any number of gift recipients free of the gift tax. The total sum of these tax-free gifts can equal any amount of money.
Some of the objectives of the proposed Income Tax (Transfer pricing) Regulations, 2012 as published by the Federal Inland Revenue Service in pursuance of the powers conferred on it by Section 61 of the Federal Inland Revenue Service (Establishment) Act include the provision to the Nigerian tax authorities, tools to fight tax evasion, which is usually promoted through over or under–pricing of transactions between associated enterprises not adhering to the arm’s length tax principle.