June2015


Australia Faring Well

Posted on June 29th, by Global Tax Weekly in Business, Economy. No Comments

There are numerous annual studies attempting to rank nations in terms of how attractive they are to do business in, and Australia fares well in several of them. For example, the World Bank’s most recent Doing Business Index, which, as its name suggests, ranks economies on the ease of doing business, puts Australia in 10th place out of 189 countries. The Heritage Foundation/Wall Street Journal Index of Economic Freedom, which measures the strength of a number of economic and other rights in 178 nations, places Australia a very creditable fourth. However, when it comes to comparing Australia’s taxes with the rest of the world, the Lucky Country fares less well. According to PwC’s Paying Tax Index 2015, Australia languishes in 39th place out of 189, with a total tax rate on an average business pushing 50 percent. To be fair … Read More »


Talk The Talk, Walk The Walk

Posted on June 23rd, by Global Tax Weekly in E-commerce, Offshore. No Comments

In the beginning, when the internet broke out from its traditional role as a communications device for academics, college nerds, and the US military, offshore was predicted to be the center of the e-commerce universe. By locating websites offshore and in low-tax jurisdictions to carry out functions previously based in high-tax jurisdictions, businesses would be able to take advantage of low rates of taxation for increasingly substantial parts of their operation, or so the theory went. Indeed, in many cases, there’d be no need to have a presence “onshore” at all. Obviously, most internet-based businesses have taken full advantage of their almost ethereal presence to pay less tax in places like the US and Europe, and the world’s governments are only now starting to catch up. However, while many offshore jurisdictions talked the talk during the early phases of the … Read More »


A Very Respectable Four Percent

Posted on June 15th, by Global Tax Weekly in Economy, International Taxation. No Comments

Colombia’s recent economic track record is quite remarkable given the internal strife that continues to blight the country. Large swathes of rural Colombia remain no-go zones for those not affiliated with the FARC guerrilla movement, which the Government has been battling (literally) for 50 years. Yet, the economy has been growing at a very respectable four percent a year for the past four years, stretching a trend of unbroken economic growth which has lasted a decade. Colombia also attracted record levels of foreign investment last year after all three international credit rating agencies upgraded the Government’s debt to investment grade. Not bad for a country seemingly in a perpetual state of civil war. It’s also pretty impressive when you consider how bad the country’s tax system is. As the OECD pointed out recently, the combined statutory corporate tax rate of … Read More »


The “Rock”

Posted on June 8th, by Global Tax Weekly in International Taxation. No Comments

Gibraltar is a jurisdiction that seems to have been in an almost constant state of conflict with the EU over tax in recent years. And the “Rock” was again fighting its own small corner of Europe last week, sending Chief Minister Fabian Picardo along to brief the European Parliament’s so-called TAXE committee on national tax rulings, with Gibraltar’s regime very much in the EU’s sights. And brief it certainly was, for the Q-and-A session lasted little more than an hour — surely not enough time for an in-depth discussion on what is a complex and technical area of taxation. There are two strands to the EU probe on tax rulings: whether these rulings were granted to certain companies on a selective basis in breach of EU state aid laws; and whether, by granting these companies favorable tax treatment, they eroded … Read More »





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