In the UK, new proposals were recently released designed to address the promotion and enabling of tax avoidance schemes.
The Government unveiled a number of planned legislative changes to existing anti-avoidance regimes to strengthen HMRC powers to further clamp down on the market for tax avoidance.
These included changes under the Disclosure of Tax Avoidance Schemes (DOTAS) regime to ensure that the UK tax authority can act quickly and decisively where promoters fail to provide information on their avoidance schemes and clients.
Changes have also been proposed to enable HMRC to more effectively issue “stop notices” to promoters under Promoters of Tax Avoidance Scheme (POTAS) rules, to make it harder to promote schemes that do not work, and to prevent promoters from abusing corporate entity structures to avoid their obligations these rules.
The proposed legislative amendments would also ensure that HMRC can obtain information … Read More »
Apple and the Irish Government have been successful in overturning a European Commission decision that two tax rulings granted to the company by the Irish Government were unlawful.
Following an in-depth state aid investigation launched in June 2014, the European Commission concluded that the tax rulings (issued in 1991 and in 2007) “substantially and artificially lowered the tax paid by Apple in Ireland since 1991.” Apple was required to pay back taxes into an escrow account set up by the Irish Government, along with interest, pending the outcome of the Government and Apple’s appeal.
The European Commission had argued that Ireland’s endorsement of Apple’s Irish tax arrangements had enabled Apple to pay less tax than competing companies would be able to pay – that it had granted it a “selective tax advantage”, and that the tax rulings issued by Ireland endorsed an … Read More »
Ireland’s Revenue department revealed that it would give employers additional time to comply with Temporary Wage Subsidy Scheme compliance checks where they are encountering difficulties responding within the current five day timeframe, according to an announcement from Chartered Accountants Ireland.
Ireland’s COVID-19 wage subsidy scheme has been in place since March 26, 2020, and will be administered by the Irish Revenue until August 31, 2020.
Employers who have received subsidy payments under the TWSS are required to provide documentary evidence to establish that they meet the eligibility criteria, that employees are receiving the correct amount of subsidy, and that the subsidy amount is being correctly identified in employee payslips.
However, in a letter to Chartered Accountants Ireland, Revenue explained that employers experiencing difficulties in preparing information in response to letters issued under the TWSS compliance program can contact Revenue and request additional time.
For … Read More »
The finance ministers of France, Italy, Spain, and the United Kingdom have reportedly sent a letter to the US Treasury Secretary, Steven Mnuchin, proposing that new international tax rules for digital companies could be gradually phased in.
The ministers suggest in the letter, seen by Bloomberg News, that tax rules for providers of digital services could initially be restricted to those companies providing “automated” digital services and later could be applied more widely.
By offering such a compromise, the European countries are hoping to persuade the US to re-join negotiations towards the creation of an internationally-agreed framework of tax rules for digital companies. They reportedly suggested that an agreement that includes the US could be reached by the end of 2020 if a phased approach to the introduction of these rules was on the table.
For more information on this, and other topical … Read More »
EU member states have reached a provisional agreement on modernized taxation rules for alcohol products, following a meeting held on June 24, at which member states’ ambassadors to the EU provisionally endorsed proposals to update the excise duty rules on alcohol within the EU.
Since 1992, EU countries have had in place common rules to ensure that excise duties are applied in the same way and to the same products everywhere in the EU. These rules include minimum excise duty rates. The reform package will extend the special regime of reduced excise duty rates for small beer and ethyl alcohol producers to producers of other fermented drinks, such as cider. It will increase the threshold for lower strength beer that can benefit from reduced rates from 2.8 percent volume to 3.5 percent volume, with the aim of incentivizing consumers to choose … Read More »