Australia: 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
See MoreOECD official suggests alternatives to arm’s length standard may be needed
As part of the action plan on base erosion and profit shifting consideration is being given to ways to improve the transfer pricing rules. According to an official of the Organization for Economic Cooperation and Development (OECD), the arm’s
See MoreUS: IRS Gives Bonuses to Tax-Delinquent Employees
In the US the Treasury Inspector General for Tax Administration (TIGTA) provides independent oversight of the activities of the Internal Revenue Service (IRS). TIGTA aims to ensure economy and efficiency of administration within the IRS and is
See MoreMexican tax reform of 2014 imposes deadlines for Maquiladora companies
The Mexican tax reform of 2014 has introduced a number of important changes for maquiladora enterprises. The changes apply to companies that are operating under the requirements of the Decree for the Promotion of the Manufacturing, Maquiladora and
See MoreJapan – Corporate income tax rate reduction effective April 2014
Following the enactment of Japan’s 2014 tax reform a decrease of the effective corporate income tax rate is in force from April 2014. The fall in the effective tax rate is a result of the repeal of the special reconstruction surtax. This surtax
See MoreItaly Introduces e-advertising Tax Legislation
Italy has introduced a tax measure under which foreign companies must apply for a VAT number if they intend to engage in the sale of online advertising to enterprises in Italy. This measure is to take effect on 1 July 2014. The delay in carrying out
See MoreEgyptian Government to widen the income tax base and introduce VAT
Egypt’s Finance Minister has announced that the interim Government is in the process of drawing up amendments to the tax law aimed at widening the tax base and to dealing with the problem of tax evasion and avoidance. Egypt intends to broaden the
See MoreChinese exporters gain VAT refund
The Chinese State Administration of Taxation (SAT) has given more time to exporters to make an application for a VAT refund. Enterprises that export goods from China may apply for permission to make input tax reclaims to obtain a VAT refund. An
See MoreAustria Focuses on Income Tax Reform
The Austrian Government intends to go ahead with proposals to simplify the income tax system by the second half of 2014, the Finance Minister has announced. He commented that payroll taxes in Austria are too complex and place a compliance burden on
See MoreAustralia: Draft ATO guidance on new transfer pricing rules
New draft tax Rulings and draft Practice Statements outline the Australian Tax Office’s approach to transfer pricing and the standards that are required from taxpayers. Businesses need to urgently consider these publications in order to manage tax
See MoreSaudi Arabia issues new Ministerial Resolution amending tax by-laws
Saudi Arabia issued Ministerial Resolution No 1776 on 19 March 2014 to give effect to changes in some of the implementing regulations of the tax law. The resolution is effective from the date of issue and will apply to all tax cases including those
See MoreUS: IRS Should Improve Efficiency to Counteract Reduced Funding
The United States Government Accountability Office (GAO) is an independent agency that reports to the Congress and is often referred to as the congressional watchdog. The organization is headed up by the Comptroller General of the United States and
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