Taxation Law Articles
Articles written by attorneys and experts worldwide
discussing legal aspects related to Taxation.
A new double tax agreement between Malta and China entered into force. The new agreement replaces the previous long-standing double tax treaty between the two States and applies in respect of income or gains derived on or subsequent to 1 January, 2012.
Section 170 of the Israeli Tax Ordinance (New Version), 5721-1961 (hereinafter: "the Ordinance”) that is titled "Duty of a person making payment to a non- resident”, provides the duty to deduct tax at source (withholding tax) from payments to a foreign resident.
Many people have heard or seen advertisements from tax help firms tax speak of settling back tax debt for “Pennies on the dollar”. The program these advertisements are referring to is called the offer in compromise. While in some cases is really is possible to have this successful outcome, a debt stricken taxpayer should know they will have to qualify for the OIC first. The next question asked of course will be “How do I qualify for the offer in compromise program?”
A lot of businesses are skating on thin ice when it comes to trust fund taxes. However easy it may be to rationalize using the payroll taxes withheld from your employees to help keep the lights on, you might as well be waiving a red cape in front of an angry bull.
Bank Levies and wage garnishment are often confused. Many times a bank levy is mistakenly referred to as a "Garnishment". The main differences are as follows - a bank levy is when the IRS will gain legal access to a taxpayers assets for the purpose of paying off the taxpayers tax liability.
An eggshell audit is an audit in which the returns you have filed contain an understatement of income, an overstatement of deductions or something else that led to you—even by accident—paying less in taxes than you technically owed.
The Money Laundering (Prohibition) Act 2011 provides for comprehensive provisions to prohibit the financing of terrorism, the laundering of the proceeds of a crime or of any illegal activity. This Law further provides for a wide range of penalties and expands the scope of the supervisory and regulatory authorities in Nigeria to combat money laundering offenses. The fact that a money laundering offense was committed in different jurisdictions or different parts of the world is no longer relevant.
There is no doubt that Steve Jobs was a visionary. From the mouse to the iPad, Steve Jobs forever changed the way we communicate. Soon after the tragic news broke of the passing of the Apple co-founder, people began wondering what would become of his $6.7 billion fortune and how much, if any, would be paid to Uncle Sam in the form of estate taxes.
A Convention for the Avoidance of Double Taxation has been signed by Malta and Israel. The Convention fixes maximum withholding tax rates chargeable in the source State on interest payments at 5% and on dividends derived from portfolio investments at 15%.
An introduction to U.S. Capital Gains for international clients.
The following is a summary of the main tax proposals by the Trajtenberg committee:
Whether you are the gambling type or not, you have no choice but to be involved in a high-stakes gamble regarding the estate tax. Depending on the whims of the lawmakers in Washington, your family may wind up paying nothing at all to the IRS or millions of dollars on the same amount of money.
Many purchasers of real estate in Thailand are not using their newly purchased home as a permanent personal residence. Such assets are often meant to be used as a holiday home only and are unoccupied for the remainder of the year. This article will discuss the taxation of individuals who own real estate in Thailand and who receive rental income from renting out the property.
What people commonly suspect in the Thai real estate market is that if a company sells immovable property such as land it is subject to a specific “capital gains tax” or that the sale of that land is taxed at the corporate income tax (“CIT”) rate of 30%. However, such is not necessarily the case.
If you or your company own a condominium unit or villa here in Thailand that was used for even one day (with or without having actually received rental income) during the tax (i.e. generally the "calendar") year then you or your company will most likely be obliged to pay an annual “house and land tax” (“HLT”) in accordance with the House and Land Tax Act (A.D. 1932) and as further amended.
The use of off-shore entities, such as a company incorporated in the British Virgin Islands (“BVI”) to own real estate is not uncommon in Thailand. This article will analyze the tax consequences of an off-shore entity renting out real estate it owns in Thailand.
A Sovereign Investment Authority (Establish, Etc.) Act, 2011 has established for Nigeria a Sovereign Investment Authority. This Authority is charged to receive, manage and invest in diversified portfolios the excess of the medium and long term revenue of the Federal, States, Local Governments and Area Councils. The Proceeds of these investments are statutorily required to create a savings base for the country, develop infrastructure that will attract local and foreign direct investments.
A Limited Liability Company (LLC) is an important investment vehicle for Israelis who operate in the US. An LLC is a company incorporated under the laws of one of the US states. In practice, LLC’s are often formed in the state of Delaware for administrative ease. They are relatively cheap to form and run. An LLC does not have shareholders, but rather members.
Excise taxes are taxes on the purchase of a particular quantity of a particular item, such as gallons of wine or gasoline, much like a sales tax. An excise tax, however, is very different from a sales tax. A sales tax is paid by the buyer; an excise tax, by the manufacturer or retailer. A sales tax is not included in the purchase price; an excise tax is. A sales tax is generally state or local, not federal; an excise tax may be state or federal.
Finance ministers and Central Bank governors of European Union Member States debated during the last informal Economic and Financial ECOFIN Council of September 17, the current condition of the economy and the situation in sovereign bond markets. The debate on the European Union’s financial stability was also attended by representatives of European financial oversight authorities.
Malta’s finance minister Tonio Fenech announced this morning that a High Net Worth Individuals Scheme will be replacing the now obsolete Permanent Residency Scheme.
Without being partisan in any way, the fact is that the results of the midterm elections had a lot to do with the extension of the Bush tax cuts.
Most people know that the proceeds of a life insurance policy are generally free of income taxes. What many do not realize, however, is that life insurance proceeds are included in their estate for estate tax purposes.
In difficult economic times just maintaining enough sales to keep your doors open and business operation can be a real challenge. So it's easy to see why many businesses under financial pressure to either buy the supplies they need to continue fulfilling orders, pay their employes or other essential operating bills or skip make sure they are able to pay the payroll taxes.
The estate tax is one of the first things that you should take into consideration when you are planning your estate.
A treaty for the avoidance of double taxation has been signed between Israel and Malta, and a treaty for the avoidance of double taxation has been initialed between Israel and Panama. These treaties will enter into force on completion of ratification proceedings in the two countries.
One of the reasons why it is advisable to retain the services of an experienced estate planning attorney is to guide you in a manner that enables you to gain tax efficiency
There are a lot of people who think that the estate tax is fundamentally unfair for a number of different reasons.
The Czech Republic has concluded another agreement on exchange of information on tax matters (TIEA). Following the signing of similar agreements with the British Virgin Islands on 13 June 2011 and the Isle of Man on 18 July 2011, the Czech Republic concluded and signed a TIEA with Bermuda on 15 August 2011.
Royalties accruing to a person ordinarily resident and domiciled in Malta would be subject to tax in Malta – regardless of the source of such royalties. However, should non-Malta source royalties accrue to a person who is not both ordinarily resident and domiciled in Malta, such royalties would not be chargeable to tax in Malta except to the extent that they are received in Malta.
People who are interested in estate planning are well aware of the fact that there were some significant changes to the estate tax parameters included in the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
As you probably know, beginning January 1, 2010, Washington loosened rules for converting traditional IRAs (with taxable withdrawals) to “Roth” IRAs (with tax-free withdrawals). The full amount you convert (minus any “basis” in nondeductible contributions) is taxed as ordinary income now when you convert. However, future withdrawals will be tax-free.
Unfortunately, many of the latest statistics suggest that the majority of Americans nearing their 60s are not ready for retirement. Although recent findings indicate that people are better prepared for retirement than they were less than a decade ago, all is still not well.
There are those who are under the impression that they will somehow automatically retire when they reach their mid-60s. They think that they will enjoy their golden years and all of the free time they will have on their hands.
Many parents choose to create a will so that their minor children are always protected. While a will allows you to appoint a guardian for the care of your minor children, it doesn’t allow you to fully explain the level of care that is needed.
If you want to have some control over your future, then you need to create a will. Many people assume that their wishes will be respected, even if they don't have a will in place
1 Introduction: The Law Decree dated 13.5.2011 no. 70 (called “Development LD”), enforced on 14.5.2011, has been converted in the Law dated 12.7.2011 no. 106, enforced on 13.7.2011.
With some tax problems - like not paying or even not filing personal income taxes - it can take the IRS a while (even years) to “catch on”. And even when they do finally realize there’s a problem, they may not react so quickly.
The Isle of Man and the Czech Republic signed a Tax Information Exchange Agreement (TIEA) on 18 July to regulate and facilitate the exchange of tax information between them. The TIEA will enter into force after both parties have completed all required ratification procedures and exchanged corresponding notifications. Most of its provisions will then take effect immediately, with the remainder taking effect on the following 1 January.
You may have heard that the estate tax exclusion was raised to $5 million with a maximum tax rate of 35% as a result of the passage of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
A lot is said about the complexities of estate planning, but in the end it is a relatively simple matter.
While most folks can breathe a sigh of relief regarding the provisions of the 2011 tax law, this relief will only last for the years 2011 and 2012. If you’re not planning on giving away all of your assets or dying during the next two years, the 2011 tax law will likely affect you and your family.
Money issues tend to take on more significance as you enter retirement.
The estate tax was repealed in 2010 due to a provision that was contained in the Economic Growth and Tax Relief Reconciliation Act of 2001. This was a welcome respite from what many derisively refer to as the “death tax,” but it was scheduled to return in 2011. When the tax was last in effect in 2009, the exclusion was $3.5 million, and the top rate of the tax was 45%.
One of the first things that you need to determine when you are planning your estate is whether or not it is exposed to the estate tax.
Many of the estate tax laws address property that is passed from one generation to the next, such as from a parent to a child.
One of your top priorities when you are planning your estate is going to be to determine whether or not your heirs will be exposed to the estate tax
If you've been putting off your estate planning, you are putting yourself and your family at risk. Without a plan, you will have no control over the future and you won't be protected during unexpected events.
More people are looking for new ways to save and this often leaves many people looking for low-cost estate planning options.
Death and taxes may indeed be inevitable, but paying a so-called “death tax” is not. "In this world nothing can be said to be certain, except death and taxes." —Benjamin Franklin
When a person dies, federal estate tax may be due. These are taxes that are due when the assets are passed to another person. Most people refer to this tax as the “death tax.” You may be aware that there are new laws regarding this tax. It is important to stay on top of the new tax law so that you know how you may be affected. Will you have to pay estate taxes?
Independent film financing and tax credits are linked and play a huge role in making a successful film. Understanding where these credits are and how to obtain them is vital. Dunlap, Grubb & Weaver, experienced entertainment lawyers can help with this. This article lists the credits available in the United States by jurisdiction.
Estate planning has everything to do with making sure that your loved ones are properly provided for after you pass away.
One of the things that you are going to have to decide upon when you are planning your estate is the primary vehicle or vehicles of asset transfer that you want to utilize.
When you are a partner in a small business succession planning can be a bit tricky.
There are gifts that you can give to people, other than your spouse, that are not subject to the Federal Gift Tax
Once your child reaches 18 years of age, they are legally considered to be an adult
For parents of young children, the most important element of the estate plan is choosing a guardian for them
One of the things that you must understand about estate planning is the fact that there is no universal, one-size-fits-all approach
As far as entering of a foreign company into the construction market of the Republic of Belarus is concerned, taxation of foreign construction companies’ profits, operating in the Republic of Belarus through the permanent establishment is one of the problematic issues.
An article regarding the legal, tax and business aspects of a prudent accounting in Thailand.
The provisions contained within the tax relief bill that was passed through Congress and signed into law around the middle of December of last year are scheduled to expire at the end of 2012. If no new laws are passed to change the status quo, the estate tax exclusion will return to $1 million in 2013, and the tax will carry a 55% maximum rate.
We heard a lot about the legislation that was passed in the middle of December that is now being called the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 as we were ushering in the new year. As a result of this action the Bush era tax cuts were extended and the Social Security payroll tax was reduced by nearly a third for 2011. As has been widely reported there were also some changes that affect the estate tax.
The recently passed Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 that brought the estate tax rate down to 35% has been a hot topic of late. In case you are unaware of the back story, the rate of the tax was scheduled to revert to the 55% that was in effect in 2001 upon the “sunset” of the Bush era tax cuts at the beginning of 2011. The tax was repealed for 2010, but from 2007 to 2009 the rate of the tax was 45%.
Optimizing your assets is one of the goals of estate planning, and depending on the circumstances this can often times be challenging.
Do you know the best age to start withdrawing from your retirement account? Do you plan to work for a few years after you're eligible for Social Security withdrawals? Is there an age by which you must withdraw money from your IRA?) You're nearing retirement age, but maybe you're unsure at what age you can begin using that money you've socked away all these years.
The European Commission, in its Communication published 20 December, aims to make Member States tax systems more compatible in order to facilitate cross-border activities between citizens from neighboring States. Eventually new measures could make it easier for individuals living, working or moving abroad to confront double taxation, tax refunds reclaim, cross-border income, inheritance taxes, dividend taxes, car registration taxes and E-Commerce.
Panama and the USA Sign an Agreement for Tax Cooperation and the Exchange of Information Relating to Taxes
On the 30th day of November of 2010, the governments of the Republic of Panama and of the United States of America (“USA”) signed an “Agreement for Tax Cooperation and the Exchange of Information relating to Taxes” (“the Agreement”).
Administrative Cooperation in the Field of Taxation (Council Directive 2011/16/EU of 15 February 2011) - Cyprus
In April 2009, the European Commission issued a Communication on “Good Governance in Tax Matters” with the intention to launch a debate about concrete actions that could be taken to better promote the principles of good governance in the tax area (transparency, exchange of information and fair tax competition). The aim of the Commission to improve synergies between tax and development policies becomes concrete with the Council Directive 2011/16/EU of 15 February 2011.
Debt reduced by a mortgage loan modification, short sale or foreclosure will often result in the issuance by the lender of an IRS Form 1099–C, Cancellation of Debt. Under the Internal Revenue Code if you borrow money from a lender who later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes.
Nationwide, tax incentives for films typically take on one of three characteristics: (1) tax rebates, (2) tax credits, or (3) a hybrid of rebates and credits. Utah incorporates some form of each popular tax incentive available. Utah offers a hybrid of tax rebates and credits for qualifying productions. The state currently offers productions 20% maximum on dollars spent in Utah, which they term “dollars left in the state.” The new bill will increase this amount to 25%.
Capital Gains Tax accrues on an actual year basis.
A brief introduction to German estate tax, gift tax, and inheritance tax law. Easy to follow explanation and information in plain English on taxation of estates, heirs, and beneficiaries in Germany.
The presentation of a “Pact of Competitiveness” at the EU summit on 4 February by Germany and France was the plan for the Eurozone Member States to agree on a closer economic convergence in order to restore competitiveness to the euro area.
According to the Money Laundering Prohibition Law, and the Prohibition on Money Laundering Ordinances (Methods of Reporting Monies Entering and Leaving Israel) 5761-2001, it is mandatory to report the flow of money in and out of Israel.
Tax planning is a legitimate method of minimizing your tax liability and should not be confused with tax avoidance. For any individual or company that trades or wants to make business in Europe, Russia, Middle East or Asia, Cyprus offers incredible advantages as an international business center.
The Merchant Shipping (Fees and Taxing Provisions) Law of 2010 (the Tonnage Tax Law) left certain issues of detail to be determined by the Cyprus Department of Merchant Shipping ("DMS"). The DMS has now issued Notifications setting out requirements for qualifying ship managers and prescribing the arrangements for calculation and payment of tax by owners and charterers of foreign ships and ship managers. A summary of their main provisions is given below.
Following the visit of Russian President Medvedev to Cyprus and the signing of the Protocol to the double taxation agreement on behalf of the governments of both countries, it was expected that the amended treaty would be ratified by the Parliaments of the two countries before the end of 2010 and would become effective from 1 January 2011. This timetable was not realised and, assuming the amended treaty is ratified during 2011, it will take effect on 1 January 2012.
One of the most frequently asked questions by consumers who are contemplating filing bankruptcy is: Can I Discharge a Tax Debt in Bankruptcy? This article answers these questions and more on the subject of what tax debts can be discharged by the filing of a chapter 7 bankruptcy.
Circulars issued by the Russian tax authorities in 2010 clarify their interpretation of certain aspects of the existing Cyprus-Russia double taxation agreement, specifically the presence required to give rise to a permanent establishment, the deeming of excessive interest as dividends and the treatment of the proceeds of liquidation of a Cyprus company in the hands of Russian taxpayers.
Major advantages of setting up a company in Bulgaria.
Unification of the Taxation of Foreign Enterprises, Foreign Invested Enterprises and Domestic Enterprises - China
The State Council issued the Notice on Unifying the City Construction Tax and Educational Surcharge of the Foreign Invested Enterprises, Foreign Enterprises, Foreign Individuals and Domestic Enterprises (the "Notice") on October 18th, 2010.
The Provisional Measures for Tax Administration of Foreign Enterprise Representative Office ("Provisional Measures") was issued by the State Administration of Taxation on February 20th, 2010 and became effective since January 1st, 2010.
China Adopts Tax Measures and Disclosure Rule Relating to Share Transfers by Non-Resident Enterprises
The PRC State Administration of Taxation issued the Notice on “Strengthening the Management of Enterprise Income Tax Collection of Income from Share Transfers by Non-resident Enterprises”, on December 10, 2009 (the "Notice").
Notice on Interpretation and Determination of Concept of "Beneficial Owner" for Application of Tax Treaties
The State Administration of Taxation issued the “Notice on Interpretation and Determination of Beneficial Owner under Tax Treaties” (the "Notice"). The Notice intends to regulate the acts of foreign companies preventing them from taking advantage of the “double taxation arrangements” signed by China.
Although most transfers between spouses or former spouses in the context of a marital dissolution will be non-taxable, there are some important exceptions. These exceptions are discussed below. The importance of obtaining records showing the tax basis in the asset received through divorce is also highlighted.
A good way to avoid tax problems is through detailed record keeping, which provides up-to-date information on your finances and spending patterns.
A tax audit is performed to asses the validity of the information on your tax return.
If you failed to pay your federal taxes, the IRS may seize your property. To find out more about alternatives to an IRS seizure of individual property, you can get the help of a tax attorney.
Protecting your property is an important thing. How do you do it? Why do you do it?
A brief summary of the new tax legislation passed by Congress.
With the measure of the Italian Tax Authority dated December 22nd 2010, a new digital communication has been introduced in the Italian regulatory system for all exchanges relevant for the Value Added Tax (VAT) equal or exceeding the amount of 3,000.00 Euro, as foreseen by the art. 21 of the Law Decree no.78/2010 turned into the Law no. 122/2010.
Details of the new double tax treaty between Cyprus and Kuwait have now been made public. The new treaty, signed on 5 October 2010, will take effect when it has been ratified by both countries. Until then the existing treaty, which dates back to 1984, will continue in effect.
Details of the new double tax treaty between Cyprus and Denmark have now been released. The new treaty, signed on 11 October 2010, will take effect when it has been ratified by both countries. Until then the existing treaty, which dates back to 1981, will continue in effect.
Following its emergence as an independent state, Slovenia adopted the double taxation agreement dated 29 June 1985 between the former Yugoslavia and Cyprus. A new double taxation agreement has now been agreed between Cyprus and Slovenia. It was signed on 12 October 2010 and will take effect when it has been formally ratified by both countries. Until then the existing 1985 treaty will continue in effect.
The Merchant Shipping (Fees and Taxing Provisions) Law of 2010 (the Tonnage Tax Law) left certain issues of detail to be determined by the Cyprus Department of Merchant Shipping. The Department has now issued Notifications setting out the arrangements for payment of tonnage tax by owners of ships on the Cyprus Register, the definition of Community ship for the purposes of the Tonnage Tax Law and the towage and dredging activities which qualify for taxation under the tonnage tax regime.
The additional protocol to the Cyprus – Italy agreement on the avoidance of double taxation, which was signed on 28 May 2009, has now been ratified by both countries and has come into effect. The additional protocol provides for the exchange of bank and other information based on the OECD Model Tax Convention.
Mainly, the mining industry comes under the control of is the Mining Code and the ancillary Mining Regulation. This legislature is in general application throughout the entire country and offers some tax advantages and incentives available to private parties that perform mining activities.
Recently, the Magistrate's Court in Ashdod was asked to discuss the admissibility of a statement given in the course of the interrogation of a suspect in tax-related offenses, including theft, conspiracy to commit a crime, accepting property obtained criminally, and evasion of tariff payments owed.
By Connolly Law
There are different ways of disposing of personal effects in a will, one of which is making specific gifts to named beneficiaries. Sometimes people mistakenly believe that verbally telling their prospective executors how assets are to be distributed or writing the names of various relatives’ on masking tape and labeling items are effective ways of planning for the subsequent distribution of the items.