In December 2018, the European Commission declared a number of tax exemptions in Gibraltar unlawful and incompatible with state aid rules. The decision concerned Gibraltar’s corporate tax exemption regime for passive interest and royalties applicable between January 1, 2011, and June 30, 2013, and between January 1, 2011, and December 31, 2013, respectively. It also covered five tax rulings granted between 2011 and 2013.
According to the Commission, the exemption regime gave an unfair advantage to some multinational companies. Gibraltar repealed the contentious tax exemptions in 2013 and 2014 but the UK and Gibraltar authorities were required to recover the aid, worth about EUR100m.
In a statement welcoming the EC’s decision, the Gibraltar Government said: “The Government is delighted to note that the European Commission has today announced that it has decided to repeal its decision to open infraction proceedings against the UK … Read More »
In Australia, the ATO is highlighting non-compliance by some businesses with the rules regarding eligibility for providing JobKeeper payments.
The JobKeeper Payment scheme is a temporary wage subsidy for businesses significantly affected by COVID-19. The ATO explained that although the majority of large businesses are doing the right thing, a small number have been identified that may have manipulated their projections or financial positions to access JobKeeper payments they aren’t entitled to receive.
The tax authority went on to reveal that it has also found that some businesses have not kept adequate records to support their enrolment in the scheme. The ATO therefore stated that it was encouraging businesses to review its guidance on eligibility for JobKeeper payments and on the records that should be maintained, and urged them to contact it for assistance if they have made an honest mistake or … Read More »
Ireland’s Revenue department revealed that it would give employers additional time to comply with Temporary Wage Subsidy Scheme compliance checks where they are encountering difficulties responding within the current five day timeframe, according to an announcement from Chartered Accountants Ireland.
Ireland’s COVID-19 wage subsidy scheme has been in place since March 26, 2020, and will be administered by the Irish Revenue until August 31, 2020.
Employers who have received subsidy payments under the TWSS are required to provide documentary evidence to establish that they meet the eligibility criteria, that employees are receiving the correct amount of subsidy, and that the subsidy amount is being correctly identified in employee payslips.
However, in a letter to Chartered Accountants Ireland, Revenue explained that employers experiencing difficulties in preparing information in response to letters issued under the TWSS compliance program can contact Revenue and request additional time.
For … Read More »
The Netherlands has unveiled proposals for wide-ranging reforms to the country’s tax system. Presenting ‘Building Blocks for a Better Tax System’ in a Parliamentary letter submitted to the House of Representatives on May 18, State Secretary for Finance Hans Vijlbrief unveiled plans to improve and “future-proof” the country’s tax system.
The report is based on the results of 11 investigations into seven “bottlenecks” in the tax regime which lead to unfavorable outcomes. It suggests 169 “building blocks” that political parties could use in future to rebuild the tax system.
According to the Government, the seven bottlenecks include:
A rising tax burden on labor;
Ineffective taxation of the platform and gig economy;
Inconsistent taxation of capital, with some forms of capital income taxed more lightly than others;
Inadequate taxation of profits;
Insufficent “pricing” of pollution through taxation; and
The declining effectiveness of national taxation.
Policy options detailed in the … Read More »
The Estonian Government have proposed income tax exemptions for donations made to hospitals and other such bodies.
According to the Government, the exemption will apply to donations and gifts to support efforts at corporate hospitals, welfare institutions and state and local government agencies. Normally, donations can only be made tax-free to non-profit associations and foundations that operate in the public interest and which are charitable.
In Latvia, meanwhile, the Government this week approved a Ministry of Finance proposal to exempt donations intended to help prevent the spread of the virus from corporate tax.
Under the plans, the corporate tax exemption will apply to donations of goods and services to entities directly affected by the virus, including companies, associations and foundations. The exemption would apply from the start of the state of emergency until the end of 2020.
Both sets of measures need to be … Read More »
Norway has unveiling a package of measures which includes a value-added tax cut for certain industries, and the postponement of advance tax deadlines.
These new measures are as follows:
A further reduction in VAT for certain industry sectors, including passenger transport, accommodation and parts of the cultural sector, whose supplies are typically subject to a 12 percent VAT rate. The rate was previously lowered to eight percent but the Government has decided to lower this rate still, to seven percent, for transactions during the period April 1, 2020, to October 31, 2020.
For personal taxpayers, the first instalment of advance tax is postponed from March 15 to May 1, 2020, with the second instalment postponed from May 15 to July 15, 2020.
For corporate taxpayers, the second instalment of advance tax is postponed from April 15 to September 1, 2020, although electric power enterprises … Read More »
Faced with an unprecedented situation, and with economic and social conundrums the like of which haven’t been seen since World War II (if then), governments internationally have been obliged to fight on several fronts at once, attempting to ensure support and resources for their health systems, whilst seeking to bolster stuttering economies and suddenly impoverished populations, in the hopes of preventing short-term destitution and long-term hardship.
Moves in this area over the past week have included in India, where Prime Minister Narendra Modi on March 24 ordered the country’s population of 1.3 billion into lockdown for three weeks. However, in addition, the Indian authorities announced various tax measures to support businesses and individuals. These included that:
The deadline for FY18-19 income tax returns has been extended from March 31, 2020, to June 30, 2020.
The Aadhaar-PAN linking date is to be extended from … Read More »
According to European Council President Donald Tusk, a special place has been reserved in the afterlife for those seeking to bring about a hard Brexit without a plan. By “special,” Mr Tusk didn’t mean “nice.” What he meant was that Boris and Nigel won’t be needing to pack their winter clothes for life in the forever after.
Unsurprisingly, such comments have merely served to fan the flames of the already white-hot Brexit debate. But, away from the fiery rhetoric, member states are at least beginning to make preparations for a no-deal Brexit in an attempt to cushion the blow for taxpayers and businesses. How effective they will be is another matter.
In the Netherlands, State Secretary of Finance Menno Snel informed parliament late last month that the Tax and Customs Administration is preparing for the UK’s withdrawal from the European Union without … Read More »
It’s the start of a new working year, and in the field of taxation it’s very much business as usual. In the United States, taxpayers and their advisers are no doubt still busy poring over the details of reams of proposed new tax regulations which have been issued in recent weeks. And looking ahead, they will also need to get to grips with a new package of technical corrections to the TJCA, as well as to existing tax law.
As has become almost customary, the political climate in Washington is unlikely to help matters, though. We now have a split Congress and a Democrat-controlled House of Representatives that is likely to oppose President Donald Trump at every turn, just as the Republican Congress did in the final years of President Obama’s premiership. A hint of the bipartisan politics to come was … Read More »
On November 26, a legal challenge brought by 13 UK expats against the decision of the EU Council to endorse the start of negotiations with the UK on exiting the European Union was rejected by the General Court of the EU. So is Brexit now an unstoppable force? Perhaps the only question left is what sort of Brexit will it be? Prime Minister May’s EU-lite? Canada +++? The Norway option? WTO rules?
The possibility of another referendum on the matter remains, although the chances are slim. What is crystal clear however, is that the waters are now as muddy as ever. So much so that businesses have largely given up attempting to plan for Brexit. At least, that is the conclusion drawn from a survey by accountants Moore Stephens of Brexit preparedness within the business community.
According to the firm, since last … Read More »