UK Warns Against Scams

Posted on November 30th, by Global Tax Weekly in Compliance. No Comments

The UK’s HM Revenue & Customs has urged self-assessment taxpayers to be wary of falling foul of scams as the filing deadline approaches.

In a November 16 statement, HMRC warned that such scams were on the rise, with nearly 800,000 reported in the last year, as fraudsters use Self Assessment season to try and steal money or personal information from unsuspecting individuals, ahead of the January 31, 2022, deadline.

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EU To Investigate Pandora Papers

Posted on November 2nd, by Global Tax Weekly in Compliance. No Comments

There have been calls in the European Parliament for an investigation into any wrongdoing exposed by the Pandora Papers that took place in EU jurisdictions.

Adopting a resolution on October 22 by 578 votes in favor, 28 against, and 79 abstentions, MEPs identified what they see as “the most urgent measures the EU needs to take to close loopholes that currently allow for tax avoidance, money laundering and tax evasion on a massive scale.”

They also called for legal action to be taken by the Commission against EU countries that do not properly execute existing laws, noting that numerous member states are delayed in their implementation of existing rules intended to counteract money laundering and tax avoidance. They called on the Commission to analyze whether further legislation should be proposed and establish if legal action against some member states is warranted.

For more … Read More »

Finland Ends Concessionary Payment Scheme

Posted on September 8th, by Global Tax Weekly in Compliance. No Comments

The doors have closed on Finland’s concessionary payment scheme for tax debtors. Finland has now stopped accepting applications from tax debtors for concessionary payment arrangements, with the deadline to apply for the relief set at August 31.

The Government previously legislated to offer a concessionary rate of interest to tax debtors and new tax payment deferral options, in response to the ongoing COVID-19 pandemic. The legislation provided that where a taxpayer entered into a payment arrangement with the tax authority, interest on outstanding tax liabilities would be reduced to 2.5 percent from seven percent.

Further, taxpayers were granted more time to pay tax debts already covered by a payment arrangement and the option to enter into a new tax payment deferral arrangement of up to two years, covering new tax liabilities.

Finland began accepting applications in late April, and as at the closing … Read More »

US Announces Anti-Avoidance Plans

Posted on June 2nd, by Global Tax Weekly in Compliance. No Comments

The US Government has unveiled more domestically-focused anti-avoidance plans, to complement its international proposals, having set out measures to close the “tax gap” in the United States – the difference between the taxes owed and actually paid.

According to Treasury analysis, the tax gap totalled nearly USD600bn in 2019 and will rise to about USD7 trillion over the course of the next decade if left unaddressed – roughly equal to 15 percent of taxes owed.

Initiatives to close the tax gap were outlined in a recent report, which revealed that as a first step, the Biden Administration had made a multi-year commitment to “rebuild the IRS” with sustained funding. In total, it has pledged USD80bn in additional resources over the next decade. Funding would go to modernizing IT systems, improving data analytics and hiring experts dedicated to complex enforcement activities.

For more information … Read More »

Netherlands Announces COVID Extensions

Posted on February 3rd, by Global Tax Weekly in Compliance. No Comments

In the Netherlands, COVID support on offer is tailored to businesses on a day-to-day basis. Under a scheme put in place in 2020, businesses are able to defer payment of numerous taxes (income tax, the health insurance levy, corporate tax, payroll taxes, and VAT). Initially, businesses had been granted an automatic exchange of up to three months and thereafter they could request an extension by submitting a request by October 1, 2020. This deadline to submit a request was subsequently extended until the end of 2020.

Under the first iteration of the scheme, tax debts were required to paid starting January 1, 2021, over a 24-month period. In September 2020 the Government announced that businesses would be allowed 36 months to pay these amounts and would be required to do so only from July 1, 2021. It said interest on tax … Read More »

IRS Reports Released

Posted on November 25th, by Global Tax Weekly in Compliance. No Comments

The IRS’s specialist compliance teams revealed recently that they have significantly increased their focus on virtual currency tax issues during the 2020 fiscal year.

The newly published Criminal Investigation (CI) division’s annual report highlights the agency’s successes and criminal enforcement actions taken in fiscal 2020, the majority of which occurred during the COVID-19 pandemic. During the 2020 fiscal year, over USD10bn was identified as tied to tax fraud and other financial crimes, the report revealed.

The report showed that the key focuses of CI in fiscal year 2020 included COVID-19-related fraud, cybercrimes, with an emphasis on virtual and cryptocurrencies, traditional tax investigations, international tax enforcement, employment tax, refund fraud, and tax-related identity theft.

In response to COVID-19 related crimes, CI special agents quickly adapted their investigative techniques to initiate cases into fraudulent claims for Economic Impact Payments, Paycheck Protection Program loans, and refundable … Read More »

Calls To Simplify US State Tax Rules

Posted on September 7th, by Global Tax Weekly in Compliance. No Comments

In the United States, the American Institute of CPAs and the Council on State Taxation have urged Congress to pass legislation to simplify state tax rules for remote and mobile workers.

In a joint letter to congressional leaders, dated August 27, 2020, AICPA and COST said lawmakers should focus on the Remote and Mobile Worker Relief Act of 2020, and a particular section of the American Workers, Families and Employers Assistance Act, in any final COVID-19 relief package.

Under current law, non-resident employees who visit a state for as little as 24 hours to do work can be subject to certain state income tax laws. Businesses must also comply with states’ varying withholding requirements with regards to employees who travel out of state for work purposes.

However, under the Remote and Mobile Worker Relief Act 2020, introduced in the Senate on June 18, … Read More »

Calls For Clarity On US Payroll Tax Deferral

Posted on August 26th, by Global Tax Weekly in Compliance. No Comments

In the United States, while all eyes are on the forthcoming Presidential election, behind the bluster and bombast there are attempts to keep the business of doing business running smoothly, with the US Chamber of Commerce joining calls for the Treasury Department to issue clear guidance on the recently announced payroll tax deferral.

Earlier this month, President Trump signed an executive order requiring Treasury to defer the collection and payment of employee payroll taxes for the period September 1, 2020, until December 31, 2020. The deferral is available to employees whose wages or compensation was less than USD4,000 during any bi-weekly pay period, calculated on a pre-tax basis, or the equivalent amount with respect to other pay periods.

Trump signed the order, bypassing Congress, after talks between Republicans and Democrats on a new COVID-19 tax bill stalled. Trump said in comments alongside … Read More »

US Overseas Taxpayers Receive Deadline Extension

Posted on June 16th, by Global Tax Weekly in Compliance. No Comments

The US Internal Revenue Service has reminded overseas taxpayers living and working abroad that they have an extra month to file their 2019 federal income tax return and pay any tax due. This includes Americans who live and work abroad, non-resident aliens and foreign entities with a US filing and payment requirement.

The deadline for these taxpayers is normally June 15. However, it has been extended to July 15 as part of the various COVID-19-related tax relief measures announced by the Treasury Department and the IRS in April 2020.

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Finland Examines Options For Tax Revenue Increases

Posted on May 29th, by Global Tax Weekly in Compliance. No Comments

Finland has been looking broadly at measures to increase the country’s tax take post-COVID, and at ways to increase compliance in a number of areas.

Earlier this month, for example, the Finnish Government published a report which explores the economic and fiscal consequences of the COVID-19 pandemic for Finland and considers what taxes could be increased to help restore the public finances.

The report observes that Finland already has one of the highest tax burdens in the world, especially on labor. Therefore, raising taxation poses the risk of damaging Finland’s competitiveness, it warns, but goes on to identify certain tax areas in which there is scope for revenue increases without threatening the economy.

These, according to the report, are: property taxes (which tend not to be economically distortive and affect largely wealthier taxpayers); corporate tax (where there is scope available to reduce the … Read More »


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