EU Parliament Considers Change to EU Funding
The members of the European Parliament have given their support to planned measures to lower the share of VAT receipts of member states that go towards the funding of EU projects. According to plans adopted on 16 April 2014, the amount of funds
See MoreTax Freedom Day Comes Later For US Taxpayers
An organization known as the Tax Foundation (TF) computes the date of a day called Tax Freedom Day each year. This date is found by applying the average tax burden, expressed as a percentage, to the number of days in the year. The Tax Freedom Day is
See MoreUS: IRS Confirms Deductibility of Puerto Rican Excise Tax
The IRS has confirmed in a document published recently (Letter 2014-0006) that the IRS will not challenge the claim that Puerto Rico’s manufacturers excise tax is a tax that can be credited against United States federal income tax. In October
See MoreSpanish Tax Cuts to Favor Low Income Workers
The Spanish government has emphasized its intention to lower the personal income tax for all individuals and in particular for lower income groups. The Spanish government is to raise the tax incentives in respect of savings and investment and will
See MoreOECD releases discussion drafts on hybrid mismatch arrangements
On 19 March 2014, the Organization for Economic Cooperation and Development (OECD) published for consultation two Public Discussion Drafts in relation to Action 2 on hybrid mismatch arrangements under the Action Plan on Base Erosion and Profit
See MoreOECD releases discussion draft on tax challenges of the digital economy
On 24 March 2014, the Organization for Economic Cooperation and Development (OECD) published a discussion draft relating to addressing the tax challenges of the digital economy. This is Action 1 of the Action Plan on Base Erosion and Profit Shifting
See MoreGermany and the EU Agree Energy Tax Break Revision
Germany is being allowed by the European Commission to continue to give energy tax incentives to 65 sectors under the renewable energy tax rules. There has been a long discussion as to whether the measures constitute illegal state aid under EU
See MoreEU – VAT refund claims are due by 30 June 2014
Businesses incurring costs in many EU countries may recover the VAT on those costs even if they are not registered for VAT in that particular country. In many of the EU jurisdictions there is a 30 June deadline in any year for making the reclaim.
See MoreEU – Changes to VAT place-of-supply rules in 2015
There will be a change to the EU VAT place-of-supply rules, which determine where VAT is collected and remitted for some types of service, with effect from 1 January 2015. This change will affect businesses providing services such as
See MoreEU Tackles Single Market Tax Obstacles
The European Commission has begun two public consultations, on discriminatory tax rules that my affect the position of individuals in European Union (EU) member states. These consultations are aim to help efforts to take away tax obstacles to
See MoreEU: Court of Justice decision affecting US regulated investment companies
On 10 April 2014, the Court of Justice of the European Union (CJEU) ruled in case C-190/12 concerning the Emerging Markets Series of DFA Investment Trust Company. The CJEU held that barring a non-EU investment fund, in this case a US investment
See MoreOECD – Update on transfer pricing documentation
The OECD’s Centre for Tax Policy and Administration held a webcast on 2 April 2014 at which an update was provided on the progress of aspects of the action plan on base erosion and profit shifting (BEPS). The update covers the issues of transfer
See MoreIreland – Taxation of Termination Payments Challenged
European Commission has requested Ireland to change its legislation on termination payments paid to individuals when their employment contracts end, as the Commission is of the opinion that the Irish rules are a restriction on the free movement of
See MoreEU – VAT guidance for e-services rule changes effective in 2015
The European Commission has issued guidance to help businesses cope with for the new value added tax (VAT) rules for in respect of e-services including telecom, broadcasting, and electronic services. The changes to the place of supply rules are to
See MoreEU Probes French Energy Tax Breaks
The European Commission is looking at the French tax decreases granted to the large energy consumers and consulting other interested parties on the matter. The tax reductions have been granted to reduce the amount of the renewable energy surcharges
See MoreOECD – New Information Exchange Standard Gains Support
The European Council has encouraged some European countries to move quickly to make a commitment to the global standard for automatic tax information exchange. These countries are to implement the standard at an early stage. Also, Austria and
See MoreOECD – Digital Economy Review May Hit Ireland Hardest
As part of the action plan on base erosion and profit shifting (BEPS) the OECD has produced a discussion draft on the tax consequences of the digital economy. The professional body Chartered Accountants Ireland has suggested that the proposed
See MoreOECD – Discussion draft on digital economy (BEPS action plan)
The Organization for Economic Co-operation and Development (OECD) has issued a discussion draft on Action Item 1 (Tax Challenges of the Digital Economy) of the base erosion and profit shifting (BEPS) Action Plan. The BEPS Action Plan Item 1 aims to
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