The IRS’s specialist compliance teams revealed recently that they have significantly increased their focus on virtual currency tax issues during the 2020 fiscal year.
The newly published Criminal Investigation (CI) division’s annual report highlights the agency’s successes and criminal enforcement actions taken in fiscal 2020, the majority of which occurred during the COVID-19 pandemic. During the 2020 fiscal year, over USD10bn was identified as tied to tax fraud and other financial crimes, the report revealed.
The report showed that the key focuses of CI in fiscal year 2020 included COVID-19-related fraud, cybercrimes, with an emphasis on virtual and cryptocurrencies, traditional tax investigations, international tax enforcement, employment tax, refund fraud, and tax-related identity theft.
In response to COVID-19 related crimes, CI special agents quickly adapted their investigative techniques to initiate cases into fraudulent claims for Economic Impact Payments, Paycheck Protection Program loans, and refundable … Read More »
In Turkey, a corporate tax break for businesses that newly issue their shares on Borsa Istanbul has been approved.
With the exception of certain financial services companies, businesses which list their shares on the stock exchange for the first time will benefit from a reduced rate of corporate tax of 18 percent, down from 20 percent, for up to five years. Law No. 7256, published on November 17, 2020 provides that the measure will be offered for fiscal years beginning on or after January 1, 2021.
At least 20 percent of a company’s shares must be offered in order for the business to avail itself of the reduced rate.
An earlier iteration of the law was to include a provision allowing the president discretion to lower the corporate income tax rate by up to five percentage points. However, this provision was removed from … Read More »
According to announcements made during the election campaign, Biden’s tax proposals include a potential increase in the federal headline rate of corporate tax from 21 to 28 percent, reforming the GILTI rules, and introducing a 15 percent minimum tax, or “book tax,” on companies with reported income in excess of USD100m. He also discussed imposing sanctions on jurisdictions deemed to facilitate corporate tax avoidance and voiced support in July 2020 for tax relief for manufacturing companies.
In terms of personal taxes, Biden has said he would restore the top rate of personal income tax to 39.6 percent from 37 percent; restrict tax breaks for wealthy taxpayers; and tax capital gains as ordinary income and prevent wealthy taxpayers from deferring tax through investments. He also proposed that estate taxes, also reduced by the TCJA, should be raised back to “the historical norm.” … Read More »
Germany and Luxembourg recently announced that they had reached a new agreement on the treatment of frontier workers who may be caught between their respective tax systems as a result of the changed working practices necessitated by the pandemic.
The authorities explained that they have signed a new agreement providing for concessionary tax treatment for frontier workers during the COVID-19 crisis which confirms that employees working from home due to the COVID-19 crisis may remain taxable in the state in which they exercised their professional activity before the health crisis.
This agreement applies to income from employment, including from public sector employment, and replaces the cross-border worker deal that had been agreed in April 2020. The new agreement applies from March 11, 2020, until December 31, 2020, and will be automatically extended on a monthly basis until it is cancelled by one … Read More »