The Australia Institute recently urged the Government to resist partaking in the ”race to the bottom” on corporate tax rates. Instead, it recommended that Australia tackle tax loopholes and avoidance schemes, arguing that the priority is to ensure enough revenue is raised to fund public services and infrastructure. But if you look around the world, you’ll find that parliaments are voting through tax reforms that do both – cut corporate tax while shoring up the corporate tax base.
It’s no coincidence that in recent times a succession of governments have announced, are legislating for, or have completed, tax reforms which reduce the rate of corporate tax while restricting interest deductions and strengthening controlled foreign company regimes, among other anti-avoidance measures. These moves are largely a response to base erosion and profit shifting (BEPS), but they also show that tax competition is far from … Read More »
When it comes to economic and tax developments, Ireland doesn’t do half measures. Most countries are accustomed to riding the ups and downs of the economic cycle, but Ireland has made the experience something of a rollercoaster, from the roaring Celtic Tiger economy of the 1990s and 2000s, to the country’s near-bankruptcy at the nadir of the global financial crisis when, at one point, the Government reported a budget deficit in excess of 30 percen of GDPt.
You might have thought that this stomach-churning ride through boom and bust might have tempered ambitions and expectations in Ireland. But not a bit of it. In 2015, GDP was estimated to have grown by a massive 26 percent, although that figure was, it turned out, greatly distorted by a few large assets transfers connected to corporate inversions by US multinationals.
Nevertheless, the economy has … Read More »
The Isle of Man’s coat of arms, as seen on its flag, features a curious three-legged symbol clad in medieval armor, known as a triskelion. The accompanying motto, in Latin of course, roughly translates to “whichever way you throw me, I shall stand” – quite appropriate for an offshore jurisdiction. For whatever the world seems to throw at IOFCs, or tax havens – whatever you prefer to call them – seems to just bounce off.
From reputational and economic hurricanes, including the OECD’s 20-year campaign against harmful offshore tax regimes, domestic political and fiscal strife, tax avoidance scandal after tax avoidance scandal, and the deepest financial crisis since the 1930s, to actual hurricanes, some of which have devastated many a Caribbean offshore territory in recent years, IOFCs have survived something of an onslaught, yet they remain thorns in the sides of the … Read More »
Companies in the remote gambling sector aren’t exactly having a happy time of it, as they face an increasingly dangerous tax and regulatory minefield in the jurisdictions in which they operate, especially in Europe. Two recent cases highlight how the European market has become something of a lottery for the remote gambling sector. The first was in Germany, where a recent court decision appeared to all but slam the door on e-gaming and gambling firms, but, with this ruling apparently contradicting earlier jurisprudence, including from the EU courts, this situation is far from clear. The other was in Belgium, where remote gambling firms won a major tax victory after legislation that imposed value-added tax on the supply of e-gaming services, while leaving the legacy gambling sector exempt from VAT, was annulled.
Culturally, some countries, including in Europe, have been hostile to the gambling … Read More »