October2018


Italy Ponders Tax Reforms

Posted on October 31st, by Global Tax Weekly in Budgets. No Comments

Italy’s tax regime leaves a lot to be desired. Although, there are some disagreements, and principally how bad things are. The Tax Foundation ranks Italy 34th out of 35 OECD economies, so it’s safe to say that there’s room for improvement there. PwC, on the other hand, places the country in 112th place globally. That means it’s (albeit marginally) easier for a business to pay its taxes in Lesotho (111th), the Federated States of Micronesia (110th), and the West Bank and Gaza (109th), which is hardly a ringing endorsement of the Italian tax system. In other words, opinions of Italy’s tax regime range from dire to disastrous.

However, for all its controversial policies, one thing that Italy’s populist coalition Government is trying to achieve is to give business taxpayers something of a break. For small firms and the self-employed, there’s a … Read More »


US Tax Reform Sees Repatriation Of Offshore Earnings

Posted on October 23rd, by Global Tax Weekly in Offshore. No Comments

The US tax reform legislation might not be perfect, as anyone grappling with the transition tax and the alphabet soup of acronyms and abbreviations, such as BEAT, GILTI, and FDII, would attest. But if the repatriation of the huge pile of stock and cash accumulated offshore by US corporations was a major goal of tax reform, then it appears to have worked. At least, that ‘s the conclusion to be drawn from the United Nation ‘s latest report on global foreign direct investment flows.

For the administration of President Donald Trump and the Republican lawmakers who pushed the Tax Cuts and Jobs Act through, these statistics must have seemed like a godsend. As James Zhan, Director of the Investment and Enterprise Division at the United Nations Conference on Trade and Development, observed the agency had said back in early January that … Read More »


EU Interim Digital Tax Approaches

Posted on October 18th, by Global Tax Weekly in E-commerce. No Comments

There’ll be a digital tax by Christmas, proclaimed European Commissioner for Taxation Pierre Moscovici last week. Perhaps he needs to brush up on his history. We’ve heard such bold claims in previous eras. For example, they said that World War One would be all over by Christmas. And it was. Christmas 1918, not Christmas 1914.

Nevertheless, as Christmas 2018 approaches, digital taxation is dominating the international tax agenda. Indeed, it’s somewhat like listening to children excitedly discussing their chances of receiving the next new-fangled toy or gadget in their Christmas stockings this year – every government now seems to want a digital tax! The Spanish Government just added one to its 2019 Budget wish list; the UK isn’t quite sure yet whether it really needs a digital tax, but it certainly would like one; and at the beginning of October, the … Read More »


Doubts About Effectiveness Of FATCA

Posted on October 11th, by Global Tax Weekly in Compliance. No Comments

Banks and financial institutions the world over were worried about the legal and reputational costs of falling foul of FATCA (the United States Foreign Account Tax Compliance Act) from the outset. However, what if an entire country ends up missing a FATCA deadline? And this is no mere hypothetical question either. It’s happened. Recently it emerged that the Caribbean territory of Saint Vincent and the Grenadines has requested a 60-day extension from the reporting deadlines under FATCA.

So what will happen? Will SVG now be hauled over the coals by the United States Department of Justice and the Internal Revenue Service? I doubt that, but we’ll have to wait and see. I think it’s probably the territory’s financial institutions that are sweating the most.

Then again, things have gone remarkably quiet on the FATCA front. Successful FATCA-related prosecutions have been very few … Read More »


Brazilian Tax Reforms Proposed

Posted on October 5th, by Global Tax Weekly in Sales Tax. No Comments

In tax circles, Brazil is notorious for its complex tax system. You could compare it to the vast, dense, often impenetrable rain forests that dominate its interior, full of assorted critters and creepy-crawlies ready to bite you at the first opportunity. Indeed, Brazil’s tax code is so vast, it’s probably home to a lost tribe or two.

The good news for taxpayers is that several candidates for the Brazilian presidency, to be decided on October 7, 2018, are proposing to reform indirect taxation, an area of the tax regime particularly noted for its mind-boggling complexity, with a more widely understood system of value-added tax. The bad news is that sales tax in Brazil has also proven to be stubbornly resistant to reform. And this is only one aspect of a tax regime which, akin to an expedition in the country’s huge … Read More »





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