In Denmark, investigations linked to the Panama Papers have revealed almost DKK1bn (USD145m) in undisclosed income, according to a report from the Danish Tax Agency.
The Panama Papers leak concerned more than 11.5m internal documents belonging to Panamanian law firm Mossack Fonseca. The data included emails, financial spreadsheets, passports, and corporate records relating to the ownership of bank accounts and companies in 21 offshore jurisdictions. It covered a nearly 40-year period, through to the end of 2015.
The Danish tax authority paid DKK6.4m for access to information in the Panama Papers linked to Danish citizens in September 2016.
On April 23, 2020, the Danish Tax Ministry announced that as a result of the Tax Agency’s investigations, tax demands totalling DKK411m had been issued to 78 companies and 104 individuals.
The Tax Ministry also revealed a substantial increase in tax data acquired through automatic exchange … Read More »
The tax authorities in the United States have been busy on the international tax front. On April 16, 2020, the United States Internal Revenue Service issued a set of frequently asked questions and answers to help inform taxpayers about transfer pricing documentation best practices.
The six new FAQs deal with topics such as the advantages of preparing and providing “robust” transfer pricing documentation; the IRS’s guiding principle in establishing whether arm’s-length prices were charged in intercompany transactions; areas that the IRS has identified in transfer pricing documentation reports that could benefit from improvement; and examples of a presentation of a company’s intercompany transactions for examiners to use in summary when preparing risk assessments.
The US Treasury Department and the IRS additionally recently issued for comment proposed guidance involving hybrid arrangements and the allocation of deductions attributable to certain disqualified payments under section … Read More »
The Estonian Government have proposed income tax exemptions for donations made to hospitals and other such bodies.
According to the Government, the exemption will apply to donations and gifts to support efforts at corporate hospitals, welfare institutions and state and local government agencies. Normally, donations can only be made tax-free to non-profit associations and foundations that operate in the public interest and which are charitable.
In Latvia, meanwhile, the Government this week approved a Ministry of Finance proposal to exempt donations intended to help prevent the spread of the virus from corporate tax.
Under the plans, the corporate tax exemption will apply to donations of goods and services to entities directly affected by the virus, including companies, associations and foundations. The exemption would apply from the start of the state of emergency until the end of 2020.
Both sets of measures need to be … Read More »
Norway has unveiling a package of measures which includes a value-added tax cut for certain industries, and the postponement of advance tax deadlines.
These new measures are as follows:
A further reduction in VAT for certain industry sectors, including passenger transport, accommodation and parts of the cultural sector, whose supplies are typically subject to a 12 percent VAT rate. The rate was previously lowered to eight percent but the Government has decided to lower this rate still, to seven percent, for transactions during the period April 1, 2020, to October 31, 2020.
For personal taxpayers, the first instalment of advance tax is postponed from March 15 to May 1, 2020, with the second instalment postponed from May 15 to July 15, 2020.
For corporate taxpayers, the second instalment of advance tax is postponed from April 15 to September 1, 2020, although electric power enterprises … Read More »
Faced with an unprecedented situation, and with economic and social conundrums the like of which haven’t been seen since World War II (if then), governments internationally have been obliged to fight on several fronts at once, attempting to ensure support and resources for their health systems, whilst seeking to bolster stuttering economies and suddenly impoverished populations, in the hopes of preventing short-term destitution and long-term hardship.
Moves in this area over the past week have included in India, where Prime Minister Narendra Modi on March 24 ordered the country’s population of 1.3 billion into lockdown for three weeks. However, in addition, the Indian authorities announced various tax measures to support businesses and individuals. These included that:
The deadline for FY18-19 income tax returns has been extended from March 31, 2020, to June 30, 2020.
The Aadhaar-PAN linking date is to be extended from … Read More »