IMF Technical Note on introducing a GAAR
On 31 January 2016 the IMF issued a technical note on ensuring that a general anti-avoidance rule (GAAR) achieves its purpose. Many countries have either introduced a GAAR or are considering its introduction, which the objective of combating
See MoreWorld Tax Brief: January 2016
Chile CFC Rule: Under the Circular 30 of the tax administration from 2016, the main aspects of the CFC rules are: A controlled foreign entity exist where a Chilean resident holds, directly or indirectly, more than 50% of the shared capital,
See MoreUK: Use and Impact of Venture Capital Schemes
On 3 February 2016 HMRC published a research study of the use and impact of the Enterprise Investment Scheme (EIS) and Venture Capital Trusts. The research examined the incentive effects on investors of the two schemes; the impact on the ability of
See MoreCanada: Tax measures regarding New Brunswick’s 2016 budget
The 2016-17 provincial budget of New Brunswick which was presented on 2nd February 2016. It includes measures as follows: The province’s rate of harmonized sales tax (HST) has increased from 13% to 15%; Increase the corporate income tax rate
See MoreColombian Tax Court rules on statute of limitations for penalties
In a recent court decision the Tax Court ruled on determining the statute of limitations for the tax authority to impose penalties. Article 638 of the Tax Code presents the statute of limitations for imposing penalties as a result of tax filing
See MoreEuropean Commission publishes Anti Tax Avoidance Package
The European Commission published its Anti Tax Avoidance Package on 28 January 2016. This package consists of the following main elements: Anti Tax Avoidance Directive The provisions of a proposed Anti Tax Avoidance Directive have been published
See MoreNigeria: Country-by-country reporting update
A Multilateral Competent Authority Agreement (MCAA) has been signed by Nigeria for executing the exchange of country-by-country (CbC) reports. This reports will include summary of income earned and tax paid, and the number of employees positioned by
See MoreUK: Digital communications research published
The UK tax administration HMRC plans to extend online tax accounts to all individuals and businesses paying tax in the UK. To prepare for this customer research was performed to look at the reaction of difference groups of taxpayers and to help in
See MoreOECD: Multilateral Competent Authority Agreement for exchange of CbC reports
On 27 January 2016 thirty-one countries signed a Multilateral Competent Authority Agreement for the automatic exchange of Country by Country (CbC) reports. The Agreement will facilitate speedy implementation of the CbC reporting requirement as set
See MoreUkraine: Cancelation of carry forward of excess advance corporate income tax on dividends
According to recent amendments to the Tax Code adopted on 24 December 2015, advance corporate income tax payments due upon distribution of dividends should be offset against the taxpayer's outstanding corporate income tax liabilities in the same tax
See MoreUkraine: State Fiscal Service issues guideline on reporting requirements for corporate taxpayers
The State Fiscal Service (SFS) issued Guidance Letter No. 102/7/99-99-19-02-01-17 on 4 January 2016 regarding clarification on reporting requirements for corporate taxpayers. Corporate taxpayers with annual turnover not exceeding UAH 20 million must
See MoreRussia: Amendment of tax law implements in 2016
In Russia, recently important tax laws were passed for corporate taxation from 2015 onwards, which will take effect from 2016. The major changes are given below: In 2016, an interest rate threshold from 75% to 125% for the Central Bank will apply
See MoreEcuador: Income tax rates for banana sector
According to a Presidential Decree issued on 30 December 2015, a single corporate income tax regime for the banana sector is established with rates that range from 0.50% to
See MoreChile: Details of administrative interpretation on CFC rules disclosed
The Circular 30 of the tax administration has been effected from January 1, 2016. It was published in the official gazette on May 14, 2015. The main features of the CFC rules are as follows: A controlled foreign entity exists where a Chilean
See MoreTurkey: R&D reform package declared
The Prime Minister of Turkey has announced an R&D Reform Package on 14th January 2016 to increase the share of R&D activities in the Turkish economy from 1% to 3%. Moreover, the objectives of the Package are to increase R&D investments,
See MoreCanada: WHT relief for foreign employers of cross-border workers
Under Regulation 102 of the Income Tax Act, non-Canadian resident employers with non-resident employees working in Canada can now apply to qualify for a new exception from the withholding tax requirements. Under the provisions of many of the double
See MoreOman: The State Council approves corporate tax rate increase from 12% to 15%
The State Council of Oman approved the proposed changes to the Income Tax Law, Foreign Capital Investment and Insurance Companies Laws for immediate implementation by Royal Decree, on 12 January 2016. The Chairman of the Economic Committee said
See MoreCanada: CRA updates T5008 guide for return of securities transactions
The Canada Revenue Agency (CRA) has published an updated T5008 guide 2015 regarding filing securities transactions returns on 12th January 2016. Under the Income Tax Act, the term "filer" refers to the person (individual or organization) that must
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