For better or worse, BEPS has permeated deep into the fabric of the world’s tax regimes. You can tell this by the sheer volume of tax developments that are related to, directly or indirectly, the issues discussed in the OECD’s BEPS report each week. And the remainder of those tax developments that aren’t exclusively about BEPS likely still reference them in one way or another.
From Liechtenstein to Luxembourg, from Andorra to Anguilla, the list of jurisdictions now incorporating new international standards on tax avoidance and tax transparency tells you all you need to know about how far the BEPS project’s tentacles have spread into the tiniest jurisdictional nooks and crannies.
Combined with tax reform in the United States and elsewhere, for tax commentators, this is boom time – a fiscal Klondike Gold Rush, if you like, with a rich, golden seam … Read More »
Profound changes are afoot generally, both politically and technologically. However, it’s good to know that beneath the quaking and shaking, it’s business as usual. And there’s nothing like a good transfer pricing development to distract you from the turbulence and turmoil generated at government level in various places.
In Italy, for example, we can forget for a moment the uncertainty caused by the recent election of the most unlikeliest of coalition arrangements and instead get our teeth into “Provvedimento 108954/2018,” setting out how Italian companies can request a “downward adjustment” to their taxable income in Italy following a transfer pricing adjustment in another territory, to avoid double taxation. If that doesn’t take your fancy, then there’s always the Ministry of Finance’s consultation on whether to support the EU’s digital tax plans, and in particular, its proposal for an “interim tax” on … Read More »
US tax reforms are causing a certain amount of competitive anxiety in some of world’s major economies, especially in Canada, given that its geographical proximity to the US makes it doubly vulnerable to such competitive pressures. And the results of the International Monetary Fund’s latest assessment of the Canadian economy will have done nothing to assuage these concerns.
Often, the IMF’s messages get lost behind a thick fog of economic jargon. But in this case its conclusions were quite clear. Its staffers wrote of “economic anxiety,” of Canada as “a less attractive destination for investment,” of substantial “shifting of real activity and profit,” and of the need for a “careful rethink of Canadian tax policy.”
Surveys suggest that businesses on the ground in Canada are growing increasingly worried about the future too, due largely to the tax and trade policies of the US. … Read More »
The UK has eased the tax shackles on small-time “digital entrepreneurs,” with the introduction also of a similar “sharing economy tax allowance.”
However, another more recent initiative to encourage compliance with UK VAT rules among online marketplaces and those that use them has got off to a less-than-auspicious start, and it’s not difficult to see why.
The new scheme is intended to allow online marketplaces to demonstrate their support for the proper collection of VAT. However, the honor of having their name on a list of VAT-compliant marketplaces involves some fairly extensive requirements. These include supplying HMRC with information on marketplace sellers, including, at a minimum, a sellers’ identity; the value and volume of sales of each seller; and the sellers’ contact details. This is in addition to educating sellers about their UK VAT obligations and responding to any evidence of non-compliance. In … Read More »
Maybe it’s because we now live in increasingly fast-paced, on-demand economies, but there seems to be a growing sense of impatience at the pace – or lack thereof – of the OECD’s work on some crucial areas of the BEPS project – notably around the taxation of the digital economy.
That the European Union went charging into this matter like the proverbial bull in a china shop can be put down to its usual enthusiasm for fixing international tax problems. But even the saintly United Nations now can’t wait any longer, having decided to press ahead with its own work on digital taxation. When the UN can bear the OECD’s procrastination no more, you know the game’s up. The patience of saints is only finite, it transpires.
The official line of most governments is that it is preferable to work in conjunction … Read More »