OECD: Issues Latest Tax Transparency Ratings
Twelve new reports have been issued by the OECD’s Global Forum, emphasizing measures that need to be taken by jurisdictions to reach the required international standard for the exchange of tax information. The “Global Forum on transparency and
See MoreMexico: Appeal procedures for certain challenges to tax reform
Mexico’s Supreme Court of Justice (Suprema Corte de Justicia de la Nación) has postponed the hearing of appeals in amparo actions, these being legal actions that challenge the constitutionality of some measures included in the 2014 tax reform.
See MoreColombia: issues regulations on thin capitalization provisions
The Colombian government issued Decree 627 on 26 March 2014. This Decree regulates the thin capitalization rules (article 118-1 of the Tax Code) that were brought in as part of the recent tax reforms and takes effect from the date of publication.
See MoreItaly: Government reduces IRAP rate and enacts other tax measures
Law Decree no. 66 published in the Official Gazette on 24 April 2014 confirms certain tax changes that were previously announced on 12 March 2014. The measures include a reduction of the regional tax on productive activities (IRAP) from a standard
See MoreHong Kong: Raises air passenger security charge
Hong Kong’s Airport Authority has raised the passenger security charge with effect from June 1 2014. This charge is paid by each passenger departing from Hong Kong International Airport and is to be increased by 36 percent. This passenger security
See MoreVietnam – Tax Revenue Receipts Increase
In Vietnam the tax collections in the first three months of 2014 reached VND134 trillion (USD6.37bn). This amount is 16.5 percent more than in the same period in 2013, and represents the highest level of first-quarter revenue in the past three
See MoreUS : Persons holding PFIC stock through tax-exempt organizations or accounts will be exempt from Form 8621 filing requirements
In the US the definition of a shareholder for the purpose of the Section 1291 regulations has been amended by Notice 2014-28. Under this section a special tax and interest charge is levied on a US person has shares in a passive foreign investment
See MoreUS: ATR finds that Obama has proposed 442 tax hikes
The organization known as Americans for Tax Reform (ATR) has calculated that since 2009 President Obama has proposed 442 tax increases. This figure results from a survey of the budgets for the fiscal years 2010 to 2015. In addition to these tax
See MoreUS – More taxpayers e-filing from home computers
An internal report issued by the Treasury Inspector General for Tax Administration (TIGTA) indicates that more US taxpayers are using e-filing to submit their tax returns and that more tax refunds are being issued. By 7 March 2014 more than 90
See MoreUS – IRS issues 2014 foreign housing tax deduction limits
In the US the Internal Revenue Service (IRS) has issued Notice 2014-29. The Notice sets out the inflation-adjusted limitations in respect of foreign housing expenses for tax year 2014. The figures included in the Notice show that Hong Kong, Moscow,
See MoreUS: GAO Reports that Large Partnerships are Avoiding the IRS Net
In a preliminary report from the United States Government Accountability Office (GAO) it is shown that the IRS is currently conducting a tax audit in respect of only around one percent of the largest partnerships in the US. The GAO report suggests
See MoreAustralia: Guidance TR 2014/D4 clarifies the requirements of transfer pricing documentation
The transfer pricing rules require documentation to be prepared by the time of lodging the relevant tax return. Guidance in TR 2014/D4 clarifies that documentation must be brought into existence by the date of the tax return. Documentation prepared
See MoreUS: Annual study shows heavy tax compliance burdens
According to the US National Taxpayers Union (NTU) the US has lost billions of hours of productivity owing to the burden of compliance with the complex tax code. The NTU has computed the total cost of tax compliance at USD224.3bn a year. This
See MoreUK – Tougher Penalties for Offshore Evaders
Offshore tax evaders are likely to face stiffer penalties under measures recently announced in the 2014 UK Budget. The UK government has said that stricter penalties would apply to individuals who hold money in hidden bank accounts in countries that
See MoreUS: Budget proposals for 2015 have implications on inbound investors
In March 2014, the Obama Administration (the Administration) released its fiscal year 2015 Budget proposals (the Budget). In addition to the transfer pricing rules the earnings stripping rules also apply to transactions with foreign related parties
See MoreSpain Introduces New Tax Measures
Tax reforms published in Spain include a number of changes intended to boost employment and growth. The changes announced on 25 February 2014 include an increase in family allowances and the allowances for older people; an exemption from income tax
See MorePakistan Needs to Chase Non-Taxpayers
Currently Pakistan has one of the world’s lowest ratios of tax to gross domestic product (GDP). The ratio in Pakistan is 9 percent compared to India’s tax to GDP ratio of 16 percent, Indonesia’s ratio of 14 percent, and Malaysia’s 15 percent
See MoreOECD – Transfer pricing documentation and country-by-country reporting consultation
The OECD is holding a consultation on 19 May 2014 to consider transfer pricing documentation and country-by-country reporting. This follows the publication of a discussion draft in relation to the BEPS (base erosion and profiting shifting) Action
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