Taxation Law Articles
Articles written by attorneys and experts worldwide discussing legal aspects related to Taxation.
January 26, 2011 By Walzer & Melcher LLP
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.
January 19, 2011 By Anurag Gupta Professional Corporation
Protecting your property is an important thing. How do you do it? Why do you do it?
January 15, 2011 By Moulinos & Associates, LLC
A brief summary of the new tax legislation passed by Congress.
January 4, 2011 By Batini Colombo Saottini
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.
December 11, 2010 By Yav & Associates
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.
December 8, 2010 By Gill Nadel Law Offices
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.
December 7, 2010 By The Gierach Law Firm
It is hard to believe, but in less than two months the year is over. This year, doing year-end tax planning is full of uncertainty, as the tax rules for 2011 are not set. It is not probable that Congress will act in the lame-duck session now that the elections are over. As a result, it is difficult for a person to decide what to do, in order to lower the overall tax bill for 2010 and 2011.
December 3, 2010 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.
November 23, 2010 By Karakhanyan & Partners Law Office LLC
Persons conducting entrepreneurial activities often pay state duties while dealing with different state bodies. It is necessary that the citizens paying duties are aware of the cases when the paid duty is subject to return. It is also desirable to clarify the procedures of returning the duty.
November 22, 2010 By Vijayan Law Group, LLC
If the IRS plans to take a collection action against you, there is a Collection Due Process (CDP) that the IRS must follow.
November 17, 2010 By Walzer & Melcher LLP
The treatment of California Registered Domestic Partners under federal tax law as compared to spouses is far from equal, but 2010 private letter ruling by the IRS is major step toward the application of federal law in a way that is consistent with the rights granted RDPs under California law.
November 16, 2010 By Dr. Avi Nov, Law Offices
The Israeli Tax Authority position regarding the classification of transactions involving computer programs has been published in a special Circular (hereinafter: the Circular).
October 10, 2010 By Harris Kyriakides LLC
Cyprus is definitely on the map as a prominent forum for the establishment of private investment funds, also known as private International Collective Investment Schemes (private ICIS). An ICIS can also be formed as a public fund, however the purpose of this brief is to provide a general overview of the primary advantages of a private ICIS.
October 9, 2010 By Dr. Avi Nov, Law Offices
Israel offers several exemptions from tax to foreign residents
October 8, 2010 By Connors and Sullivan, Attorneys at Law, PLLC
As December 31 came and went, so did the federal estate tax - or at least for the time being. The estate tax, or the "death tax" as it is more affectionately known, is a tax imposed on the property and assets (i.e. "the estate") that an individual leaves behind at death. Under 2009 rates, the first $3.5 million of the estate was exempt from the tax while any amount over this was taxed at 45 percent.
October 2, 2010 By Pia Anderson Dorius Reynard & Moss
Will Section 181 permitting a 100% federal tax write-off on film investment be renewed?
September 30, 2010 By Dr. Avi Nov, Law Offices
This article focuses on the Israeli tax rules on depreation concerning various assets.
September 29, 2010 By Vijayan Law Group, LLC
If you fail to pay your taxes in Baltimore, the Internal Revenue Service (IRS) may issue a tax levy against you.
September 27, 2010 By Dr. Avi Nov, Law Offices
New Israeli tax law provides an exceptional tax planning strategy for foreign investors. Such investors can use an Israeli company as the owner of their global investments and have full exemption from Israeli tax and tax reporting requirements.
September 25, 2010 By Hg.org
The federal government has incentives in place to encourage us all to be more energy efficient. These include tax credits for the purchase of certain energy-efficient products or renewable energy systems for your home.
September 24, 2010 By Blackfriars LLP
The emergence of the Federal Inland Revenue Service (FIRS) Establishment Act may bring smile to the faces of corporate tax payers if the provision that introduces tax refund will be given the necessary push and attention.
The Ontario attempt to harmonize its provincial sales tax regime with the federal GST has the charity sector struggling to understand the impact these sweeping changes will have on the various types of charities within the sector.
September 20, 2010 By The Gierach Law Firm
Most probably you have heard ads on the radio or seen spots on the television for businesses who claim to be able to help taxpayers who are behind on their tax liabilities. The ads claim that they are able to represent the taxpayers and can settle cases for pennies on the dollar. The ads chime—why pay more?
This year may be particularly beneficial for individuals in the latter category because of the unique opportunity afforded donors in the Conservative government's tax changes announced in the May 2006 budget. The most prominent of the changes allowed for the donation of shares in public companies to public charities (i.e. all but private foundations) on a tax free basis.
After the 2006 Budget, many observers expected that the elimination of tax on the donation of publicly listed securities to "public" charities would be extended to private foundations, and, indeed, Budget 2007 lived up to this prediction.
Overseas operation is fundamental to the operation of many charities, especially religious charities, and so it is important for these charities to have a good understanding of the law regarding carrying out charitable activities overseas. Given that the government subsidizes registered charities to the extent that it gives tax credits for the amount donated, it should not be surprising that the CRA attempts to exert as much control over funds spent overseas as funds spent domestically.
Since June 2005, the Canada Revenue Agency has had the power to impose penalties on charities for breaking certain rules which stop short of revoking the charity's registered status. These intermediate penalties range from a $500 penalty for not filing a charitable information return to paying 110% of an undue benefit bestowed upon a third party.
It is important for charities to be flexible in their thinking when raising funds. In this way, charities may be able to amass donations of items they would otherwise never have sought let alone receive. One such area that deserves further focus by charities is that involving life insurance.
The first and most obvious way is that charities dedicated to relieving poverty obviously have greater restraints put upon them in times when more people are suffering from poverty. Unfortunately, just as the individual suffers from these economic troubles, so too does the charity.
The first interesting change is the abolishment of the PST and the adoption of the HST. While the official government announcement indicated that the rebates available to charities under the HST effectively made charities revenue neutral between it and the PST.
In 1999, Parliament amended the Income Tax Act (the "Act") to create what are commonly called Third Party Civil Penalties. The provisions, which are broadly worded, ostensibly target those individuals who assist others in making what the CRA would believe is a false statement or omission on their tax returns.
For the second time in six years the Federal government is changing the disbursement quota calculation for charities. Originally instituted in 1976 as a way to force charities to spend their funds on their charitable activities, the quota has turned into a cross between a math nightmare and an obstacle for the growth of small charities.
Homeowners in most provinces know that the land transfer tax due on purchase of the home can be the straw that breaks the camel's back as far as affordability goes. Most provinces have a version of the land transfer tax (as called in Ontario, or the Property Transfer Tax or Land Purchase Tax in other provinces). The tax is generally calculated as a percentage of the property being transferred, so the higher the value of the property the greater the tax.
The advent of the HST system in Ontario has been treated with a distinct lack of enthusiasm by charities. On the one hand, as the HST system is based on the GST regime some may feel comfortable with HST as simply being an extension of the GST (the only problem is that the GST is an enigma to most). On the other hand, the silence about the HST in the charities community is in some ways surprising given the now enhanced consequences to directors and charities for misunderstanding the law.
We are periodically faced with the unfortunate situation when a charity or not for profit is forced into bankruptcy or receivership. Unfortunately, giving clear advice in the area is complicated by the relative lack of applicable law. In one circumstance we were confronted with a situation as to whether a going concern operating as a charitable trust could make a proposal in bankruptcy.
This case serves as a warning to any advisors that receive commissions paid by promoters to avoid potentially conflicting situations regardless of their confidence in the shelter. And perhaps more importantly, advisors should hold themselves to the highest fiduciary standards in all cases, even if their relationship with the donor is more fleeting thatn was the one between the Lembergs and Mr. Perris.
The first and likely most recurring situation is a return of member's dues. In theory, there is nothing wrong with the organization returning amounts paid by the members to the organization. However, in circumstances where the organization has provided some (non monetary) benefits to its members the organization would have to deduct the value of these benefits from the amounts being returned to the member.
Recently, there was a report that President Barack Obama and Democratic lawmakers planned to freeze the estate tax at the current level of $3.5 million exemption per estate, which would prevent the temporary one year repeal of federal estate taxes in 2010, with the tax returning in the following year with only a $1.0 million exemption, along with a tax rate of as much as 55%.
Ask a tax professional before losing or walking away from your home. These days in this shaky economy and what the experts are calling the “jobless recovery,” there are many people still out of work. Perhaps the reader of this article has friends or family that are currently out of work, but have been actively seeking work.
As many Napervillians become more successful in their businesses, they may purchase another residence in another state. As time goes on, they may choose to spend more time in that state (especially in the wintertime). The other state may be more attractive, because that state might not have an income tax or an estate tax upon death. Thus, even if people choose to spend a substantial amount of time at their Illinois residence, they may declare they are a resident of another state.
September 17, 2010 By Chang & Diamond, APC
It often happens that for one reason or another you owe back taxes. The IRS can be relentless in their pursuit for payment. It may seem like filing for Bankruptcy would get the tax man off your back, but this is not necessarily the case. The Franchise Tax Board and the Internal Revenue Service really don't like to lose money.
September 17, 2010 By M. Korelis & Co LLC
The mechanism of Cyprus International Trusts in Tax Planning.
September 3, 2010 By The Law Offices of Philip F. Counce
Many people incorrectly believe that they cannot discharge unpaid tax debt in bankruptcy. While this is a very complicated area of bankruptcy law, it is possible to obtain a bankruptcy discharge of many tax debts, including the penalties and interest owed thereon. In fact, bankruptcy can be the best available option for individuals with unpaid tax debt to relieve some or all of the financial and personal hardship caused by owing money to the IRS.
August 11, 2010 By Oldham, Li & Nie Lawyers
Hong Kong signed comprehensive agreements with the UK and Ireland on the avoidance of double taxation in June 2010.
July 29, 2010 By Dr. Zoltan K. Toth, Attorney at Law
They say there are two things that are almost sure in your life: death and taxes. It is likely that none of these problems will ever be completely “solved”, however as medical professionals are continuously working on expanding life expectancy, we, tax professionals are always trying to offer cosmetic solutions for lowering the overall tax burden of businesses.
July 26, 2010 By Angela Wang & Co.
Although representative offices (“RO”) are legally only allowed to conduct limited activities in China e.g. liaison, research and marketing for their foreign holding companies, it has been a popular form of business entity for foreign companies to set up due to its simple registration requirements and no registered capital payment is needed. Recent changes to the tax rules for ROs may however affect this trend.
July 23, 2010 By Dardikman Law Offices
How to establish a Limited Liability Corporation, Joint Stock Corporation from a practical point of view.
July 23, 2010 By Dr. Zoltan K. Toth, Attorney at Law
The Hungarian Parliament passed a bill on 22/07/2010 which brings company tax exposure of Hungarian companies down to 10% on profits up to EUR 1,8 million.
July 16, 2010 By Molina & Co.
The term to exercise the right to be reimbursed any overpaid or improperly paid amounts to the Treasury is reduced from 7 to 3 years, counted from the last day of the year on which payment was made.
July 16, 2010 By Molina & Co.
The rates for natural person shall be as follows:
July 16, 2010 By Diaz Reus, LLP
Does your company make payments to foreign entities or non-U.S. individuals? If yes, you may have tax withholding requirements under US Tax Code Section 1441: Withholding and Reporting Requirements.
July 11, 2010 By MMLC Group
The China State Administration of Taxation ("SAT") issued Circular Guoshuihan  No.507 “Notice of the State Administration of Taxation about the Issues Relevant to the Execution of the Royalty Clauses of Tax Treaties” (“Circular 507”) on 14 September 2009 clarifying some issues on implementation of the Royalty Clauses under the tax treaties between the PRC and various countries. This article reviews the major issues of that Circular.
July 11, 2010 By Angela Wang & Co.
The Mainland and Hong Kong signed an Arrangement between them for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (the “Arrangement”) on 21 August 2006 to eliminate any situation of double taxation that might otherwise be faced by a Mainland or Hong Kong investor or resident in the conduct of cross border activities.
July 8, 2010 By Molina & Co.
With the enactment of Law No.8 of 2010, new rates will take effect on income tax for both legal entities and for individuals. Note that the application of these rates is retroactive, so their entry into force is from January 1, 2010. In addition, it includes tariff changes regarding ITBMS (similar to the VAT), ISC and Stamps, which take effect from July 1, 2010.
July 7, 2010 By Anastasios Antoniou LLC
The following piece details the business-friendly tax regime of Cyprus and how it can be harnessed through the establishment of a Cyprus Holding Company, the most tax-efficient holding corporate vehicle in the EU with a corporate tax at 10% and zero withholding tax on dividends in most cases
June 29, 2010 By Frishberg & Partners
Looks like the Yanukovich government is finally turning its attention to the Ukrainian taxpayer (physical and legal entities alike). Is that good news or bad? To answer this question, we provide you with a brief analysis of the new-and-improved draft Tax Code that is currently under consideration.
June 28, 2010 By Domanski Zakrzewski Palinka
A Q & A guide to corporate real estate law in Poland. © This chapter was first published in the PLC Cross-border Corporate Real Estate Handbook 2011/2012 and is reproduced with the permission of the publisher, Practical Law Company.
June 14, 2010 By George R. Belche, Attorney at Law
IRS section 529 or Qualified Tuition Programs (QTP's) are found under Title 26, Subtitle A, Chapter 1, Subchapter F, Part VIII, Section 529 of the Internal Revenue Code or "IRC". It is considered the most complicated and hard to read section of the Code and a good treatment for insomnia. This section deals with special tax breaks for families, hence the "insomnia effect".
May 26, 2010 By Law Offices of John C. Martin
The myriad options presented to home buyers when titling real estate have significant tax, asset protection, and estate planning consequences.
May 19, 2010 By Clark Law Offices
As more families refinance their mortgages, are forced into foreclosure or find other ways to cancel their mounting debt, the last thing that may be on their minds is the potential tax consequences of their actions.
China Clarifies Procedures of Tax Refund and Exemption for Foreign-invested Research and Development Centers
May 13, 2010 By Guo Lian Law Firm
On 22 March 2010, China’s Ministry of Commerce, Ministry of Finance, General Administration of Customs and the State Administration of Taxation jointly issued Circular on Measures of Qualification Review for Tax Refund and Exemption Granted to Foreign-invested Research and Development Centers concerning Equipment Purchases to clarify the procedures that foreign-invested R&D Centers shall follow when claiming refund or exemption of import taxes imposed on purchase of equipment.
May 5, 2010 By Fikadu Asfaw and Associates Law Office
If you are a business company intending to open a new business here in Ethiopia or have an already established business, here is a list of taxes imposed on business companies operating in Ethiopia.
April 17, 2010 By Anurag Gupta Professional Corporation
This article will briefly discuss the advantages and disadvantages of the two common structures – share purchase or asset purchase arrangements.
April 1, 2010 By Guo Lian Law Firm
China State Administration of Taxation issued on 20 February 2010 the Provisional Measures for Tax Collection and Administration for Foreign-Enterprise Representative Office (“Provisional Measures”). The Provisional Measures bring significant changes to the existing taxation rules and should have significant implications on the tax liabilities of representative offices.
March 24, 2010 By The Stewart Law Firm
Both the Delaware and Vermont captive insurance statutes are modern statutes, with leading edge provisions, carefully tended by thoughtful and committed local captive insurance communities.
March 17, 2010 By Thorn Law Group, PLLC
Tax law in U.S. is getting very stringent over the foreign bank accounts holders. New administration in U.S. is keeping strict vigil to undisclose the foreign bank accounts. So every foreign bank account holder should know the details or take advises from an expert to stay away from any kind tax related disputes.
February 28, 2010 By Angela Wang & Co.
The term “beneficial owner” has been used in various tax treaties between mainland China and other foreign countries (including the double taxation arrangements with Hong Kong and Macao) and the status is often a pre-requisite for non-resident enterprises claiming preferential tax treatment in the PRC.
January 18, 2010 By Dardikman Law Offices
What is a CFC? How is the Israeli tax authority treats these type of corporations after the new (132) amendment all in the following article.
January 15, 2010 By Dardikman Law Offices
The following article will explain the changes in the Israeli income tax ordinance regarding trusts. Through it we will stand on the main affects the amendment has on those who have established or planning on establishing a trust that has any relations to the state of Israel weather by having an Israeli settlor or an Israeli beneficiary.
January 14, 2010 By Simon Shang & Partners
VAT applies to all individuals and enterprises engaged in supplying goods or rendering services or in importing goods (not services). Provision of services that are not covered by VAT may be subject to Business Tax (see below).
December 5, 2009 By KNJ Partners
The much awaited Goods and Service Tax was proposed to be introduced on 1st April 2010 by the Finance Minister. However, the deadline of April 1, 2010 is likely to be missed due to differences among states and the Center over various aspects of GST. The principal broad based consumption taxes that the GST would replace are the CENVAT & the Service Tax levied by the center and VAT levied by the states. All these are multi stage Value added taxes.
November 17, 2009 By KNJ Partners
The author describes what GST is and its effect on consumers.
November 3, 2009 By Law Offices of John C. Martin
Which business entity is the best from a legal, tax, and business standpoint? In this article, we discuss three major points that business owners should touch upon when considering a choice of entity.
November 3, 2009 By UB & Co. Attorneys and Counselors
The new PRC Enterprise Income Tax Law (the “New Law”) , which took effect on January 1st 2008, levels the playing field between foreign invested enterprises (“FIEs”) and domestic enterprises. The New Law sets an enterprise income tax (“EIT”) rate of 25% applicable to both FIEs and domestic enterprises.
October 30, 2009 By Jones & Ryan Tax Attorneys
The authors explain the possibilities of tax relief for an average client as he seeks tax help from the IRS. He is single and owes the IRS $80,000 in back taxes for tax years 2000 through 2003. He thinks he probably owes some money to the State of Ohio and he currently makes $40,000 per year. He just received a Notice of Levy, which states that the IRS plans to garnish his wages. He knows he will be fired, if his employer finds out. What can he do?
October 23, 2009 By Cornelius Law, LLC
Payment to the executor's or fiduciary of an estate is taxable income on Line 21 "other income" on the Form 1040. This income isn't subject to self-employment tax unless the executor is in the routine business of handling estates or unless there was an actual business in the estate which the executor was paid to run (see Publication 559 as a google search).
October 23, 2009 By Burges Salmon LLP
HMRC announced on 15 October 2009 that anti-avoidance legislation will be included in the next Financial Bill, but which will have retrospective effect from 15 October 2009, and which affects debt buybacks.
October 18, 2009 By Michael Carabash Attorney
Following up on my recent articles about Ontario limited partnerships, what they’re all about, how a limited partner can lose their limited partner status, how a limited partnership is not a separate legal person, and securities laws compliance, this article discusses certain tax considerations for limited partnerships.
August 27, 2009 By Carlo Scevola & Partners
The article reflects on the outcomes of the summit G20, which occurred in April 2009. White, grey and black lists of jurisdictions are described and analyzed. Latest tendencies in the offshore world are represented.
August 26, 2009 By The Law Firm of Labeed Abdal
The article was done to follow the new amendments in the Taxation system of Kuwait , especially when Kuwait brought the rate of taxation to 15% only after it was 55% for foreign companies. The article is focused on the practical applications for the foreign companies , when they do business in Kuwait ...
August 23, 2009 By Kittelson & Carpo Consulting
One sided lease agreements in the Philippines are the rule of thumb and don’t imagine for a second that they are in favor of the lessee.
August 20, 2009 By Pohl & Short, P.A.
There is a significant hidden federal tax lien that may attach to real property conveyed by a foreign Seller. It may not turn up in a search of the public records and, ultimately, impose an obligation on the Buyer to pay a portion of the Seller’s income tax obligation.
For many, especially non-experts on taxation, tax time can be daunting. Should you go for the standard deduction or itemize?
Due to the number of taxpayers, you may think that what you do will be unnoticed by the IRS.
There are experts qualified to assist you if you are daunted by the tax laws' complicated loopholes. Tax attorneys from Tampa can assist you with the deductions and the different forms to fill out so you'll grasp them better.
Because IRS jurisdiction is a little murky, protesters normally attempt to dispute the power of the IRS to avoid paying taxes. To avoid having IRS issues in the future, have a look at how wide the jurisdiction of the Internal Revenue Service extends.
Root canals and IRS audits are two things that can make you wince. You will be able to steer clear of a root canal if you take care of your teeth. Likewise, you'll be able to steer clear of an IRS audit by avoiding certain practices and look after your financial well-being.
In general, people feel anxious when confronted with possible IRS penalties like the payment of back taxes. Unbeknownst to them, there are actually guidelines and strategies that will help them contend these issues.
It is always in your best interest to file for an amended tax return if you realized that there were mistakes on last year's tax return or the one you just sent off in the mail. You do not want the IRS to learn about the discrepancy because this could lead to serious IRS problem for you in the future.
There are two primary methods that the IRS uses in order to collect tax debts from taxpayers: wage levies and bank account levies. Regardless of which technique the IRS chooses to implement, both points out that you have a grave IRS problem.
The ultimate purpose of an Offer in Compromise or an OIC, is the settlement and elimination your tax debt. This is an arrangement where both parties, made up of you as the taxpayer and the IRS, arrive at a mutually beneficial agreement.