News Europe
ECOFIN Fails to Reach Agreement on EU Digital Services, France and German Propose New Bill
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December 6th, 2018
Despite hopes that agreement could be reached on the EU's proposed digital services tax (DST) before the end of the year, a compromise proposal that was put forward during the 4 December meeting of the Economic and Financial Affairs Council, did not gain the necessary support and was not discussed in detail. Amidst the failure in reaching the agreement on DST, France and German proposed new stripped-down version of digital services tax.
Ireland And Malta Reach An Agreement To Prevent 'Single Malt' Structure
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November 30th, 2018
Ireland's Department of Finance has announced the signing of a competent authority agreement between the Revenue Commissioners and the Maltese tax authority to prevent ‘Single Malt’ structures. This Agreement will ensure that the Treaty does not enable that aggressive structure.
EU Tax Committee Presents First Draft Report On Tax Avoidance And Evasion
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November 30th, 2018
The EU tax committee has presented the report on tax avoidance and evasion. The report, which was drafted on November 14, contains numerous proposals and recommendations to EU Member States and the European Commission to help them face the challenges linked to tax fraud and financial crime such as money laundering.
The Netherlands Announces Stricter Requirement For International Tax Ruling
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November 27th, 2018
The Dutch Ministry of Finance has announced that from 1 July 2019, stricter requirements will be put in place for the issuance of advance tax rulings with an international character. The proposal aims to prevent the Netherlands from being used as a conduit to tax havens where a company with undesired international structures (e.
Money Laundering In EU Banks - In The Spotlight Of Special Tax Committee
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November 22nd, 2018
In light of the recent serious allegations of money laundering involving some EU financial institutions, particularly Danske Bank and ING Groep, the TAX3 Committee has decided to hold a hearing on money laundering in banks on 21 November 2018 with a view to improving the financial supervisory system.
Money Laundering Scandal in EU Banks .
Brexit And Its Impact On Businesses
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November 22nd, 2018
The Brexit will continue anyway on 29 March 2019. But what will the treaty look like? Will it be a 'hard' Brexit, a 'soft' Brexit or 'No Deal'? Certain effects are already noticeable in the Netherlands, the Brexit can hit any business.
France Amends Its 2019 Budget Bill To Reduce Capital Gain Tax On Cryptocurrencies
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November 20th, 2018
The National Assembly of France has passed a bill to lower the capital gains tax on cryptocurrency profits as part of 2019 budget bill. The proposed bill aims to establish France as a major cryptocurrency hub with an attractive and comprehensive framework in taxation.
Germany Explores GLOBE Proposal To Tax Digital Economy
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November 15th, 2018
German Finance Minister, Olaf Scholz, endorsed the global anti-base-erosion (GLOBE) proposal, which includes a tax on base-eroding outbound payments, as a long-term approach to tax the digital economy.
The GLOBE Proposal .
Spanish Clothing Giant Drops Irish Unit Linked to Aggressive Tax Policy
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November 15th, 2018
Inditex, the company that operates Zara and several other clothing stores is closing an Irish subsidiary that has been criticized for its role in allowing the group to pay less tax elsewhere in Europe. The company made a request to be voluntarily taken off the register to Ireland’s Companies Registration Office.
The Netherlands Amends Decree On The Silent Return Arrangement Of A Private Limited Liability (BV or NV)
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November 13th, 2018
Decree No. 2018/99281 of 2 October 2018 on the tax-neutral return from a private limited liability (BV) or public (NV) company to a business undertaken in unincorporated form was published in Official Gazette No. 62988.
Background .
Netherlands To Introduce Withholding Tax On Royalties And Interest To Tackle 22 Billion Euros Tax Avoidance
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November 8th, 2018
The Dutch Amsterdam Research Bureau SEO, commissioned by the Dutch Ministry of Finance, released a report regarding capital flows through the Netherlands. The report revealed that multinationals moved some €22bn in royalties and interest through the Netherlands in 2016 to avoid tax.
ECOFIN - Italy And Germany Compromise Digital Services Tax
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November 8th, 2018
The European Economic and Financial Affairs Council (ECOFIN) met to discuss various issues, including the European Commission's proposed digital services tax.
DST Key Issues .
Malta Introduces Income Tax Treatment Guideline On Scope of Digital Ledger Technology
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November 6th, 2018
The Maltese Commissioner for Revenue has issued three sets of guidelines on transactions involving DLT, which includes the income tax treatment guideline.
Scope of Digital Ledger Technology (DLT) .
Finland Broadens The Scope Of CFC Under The Amended CFC Rules
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November 6th, 2018
Finland submitted the amendment of controlled foreign company (CFC) rules to the Finnish legislation. The proposal, which amends the CFC Law (Laki ulkomaisten väliyhteisöjen osakkaiden verotuksesta), will apply from 1 January 2019.
UK Takes Lead In Digital Tax (DST) But Diverts From EU Plan
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November 1st, 2018
The UK government remains committed to reform of the international corporate tax framework for digital businesses. The OECD and G20 did not reach global consensus yet, therefore on 29 October, UK took the initiative to introduce a two percent digital services tax (DST).
UK Budget 2018 Delivered To Parliament - Several Tax Measures Including Digital Services Tax
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October 30th, 2018
UK Chancellor of the Exchequer Philip Hammond delivered the Budget 2018 to Parliament. The Budget introduced measures to reaffirm the UK’s international competitiveness, including a new measure to impose digital service tax for certain digital activities.
Dutch Government Proposes Anti-Hybrid Rules To Comply With EU's ATAD2
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October 30th, 2018
The Dutch government published a preliminary proposal implementing rules on hybrid mismatches as required under the amended EU Anti-Tax Avoidance Directive (ATAD2). The implementation of ATAD2 in the Dutch legislation will lead to changes in the 1969 Corporate Income Tax Act.
Jersey Lodges Draft Law On Economic ‘Substance’ Measures To Avoid EU Black List
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October 25th, 2018
According to a government announcement on 23 October 2018, Minister for External Relations Ian Gorst lodged a draft economic substance law for debate by Jersey’s States Assembly. The Law has been designed to address concerns of the EU Code of Conduct Group on Business Taxation about the need for relevant businesses to demonstrate adequate economic substance in the Island.
Dutch Supreme Court Confirms CJEU Decision in Fiscal Unity Cases
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October 23rd, 2018
The Dutch Supreme Court issued decisions in case no.15/00194 and no. 15/00878 related to interest deduction limitation and the (non-) deductibility of currency losses on certain participations.
Tax Highlights Of Italian Budget 2019
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October 18th, 2018
The Italian Council of Ministers approved the bill concerning the 2019 state budget. On the same day, respecting the deadline set for all European Member States, the draft Budget was submitted to the EU Commission.
Spain - Draft Budget 2019 Submitted To European Commission
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October 18th, 2018
The Spanish government submitted its Budget Plan for 2019 to the European Commission. The Budget Plan includes tax measures that mainly focused on generating revenue.
Dutch Tax Plan 2019 - Government Amends Several Measures
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October 16th, 2018
The State Secretary for Finance published a letter regarding amendments to the Tax Plan 2019 (the tax plan), to strengthen the business climate in the Netherlands.
These are the following adjustments to the corporate income tax measures:.
Ireland Announces Budget 2019: Government Introduces Tax On Assets Exiting State
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October 12th, 2018
Ireland’s Minister for Finance and Public Expenditure and Reform announced Budget 2019. A new tax charge on multinational companies moving assets out of Ireland was introduced as a feature in the budget.
Switzerland Exchanges Financial Accounts Data With International Partners For First Time
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October 12th, 2018
As part of a new international initiative, the Swiss Federal Tax Administration has for the first time exchanged information on around 2 million financial accounts. The exchanged information aims to ease the cantonal tax authorities to verify whether taxpayers have correctly declared their financial accounts abroad in their tax returns.
Dutch Cabinet To Reconsider Scrapping Dividend Tax After Unilever Pull Out
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October 12th, 2018
On 5 October, Unilever scrapped the planned move of its head office to Rotterdam due to growing protest from British shareholders. Later on the same day, Prime Minister Mark Rutte announced that the government would reconsider the abolition of the dividend tax.
The Norwegian Government Proposed Changes To The Rules On Interest Limitation And Corporate Tax Residency
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October 9th, 2018
The Norwegian Government presented its proposal for the 2019 state budget on October 8, which includes the proposal to change the rules on interest limitation and corporate tax residency.
Corporate Tax Residence .
Finland Issues New Restrictions On Interest Payment Deduction For Corporate Tax Purposes
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October 4th, 2018
The Finnish Ministry of Finance proposed to amend the restriction rules on deduction of interest payments for corporate tax purposes, which is mainly based on the EU ATAD. The objective is to enhance the prevention of the tax evasion caused by large interest deductions.
ECOFIN Renews Its List Of Uncooperative Jurisdictions
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October 4th, 2018
The Economic and Financial Affairs Council (ECOFIN) held a meeting in Luxembourg on 2 October 2018 during which the list of uncooperative jurisdictions (so-called “blacklist”) was revised.
Two Jurisdictions Delisted from Annex II .
Belgian Council Of Ministers Approve Tax Bill On Combating Withholding Tax Evasion And Avoidance
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October 2nd, 2018
On September 28, 2018, the Belgian Council of Ministers approved a preliminary draft bill focusing on combating withholding tax evasion and avoidance in the event of an unjustified exemption or refund.
New Measures .
Dutch Government Starts Public Consultation On Tax Treaty Policy And List Of Low-Taxing Jurisdictions
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September 27th, 2018
The Dutch government is opening a public consultation on the renewal of Dutch tax treaty policy and a list of low-tax jurisdictions. Comments are welcome from all interested parties and should be submitted no later than October 22, 2018.
The Netherlands Amended The Money Laundering And Terrorist Financing Act (Wwft)
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September 25th, 2018
The Dutch tax authorities updated the Act to Prevent Money Laundering and Financing Terrorism (Wwft) on 19 September 2018. This bill followed the 4th European Anti-money Laundering Directive (AMLD4).
UK Updates Guidance On Restriction On Corporation Tax Relief For Interest Deductions
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September 20th, 2018
The UK guidance on restriction on corporation tax relief for interest deductions has been updated to include more information about how to work out a company’s or group’s interest allowance on 17 September 2018.
Corporate Interest Restriction .
Dutch Government Announces 2019 Tax Plan Including Steps To Combat Tax Avoidance And Improve Dutch Business Climate
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September 20th, 2018
The Dutch Government released Tax Plan 2019. Two of the main purposes are to prevent international tax avoidance and tax evasion and to attract international business to contribute to the economy:
1.
EU Drives With Directive Obligation To Report Potential Aggressive Cross-Border Tax-Planning Arrangements
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September 18th, 2018
Recently the Council Directive 2011/16/EU regarding “Mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements” has been amended to cover the obligation to report potential aggressive cross-border tax-planning arrangements. As a result, reportable cross-border arrangements where the first step of implementation is taken between 25 June 2018 and the date of application of the Directive of 1 July 2020, will have to be retroactively reported by 31 August 2020 and are to be exchanged between EU Member States by 31 October 2020.
EU Commission Proposes Stronger Anti-Money Laundering Supervision For A Stable Banking And Financial Sector
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September 13th, 2018
The European Commission proposed to amend the Regulation establishing the European Banking Authority (EBA) to further strengthen the supervision of EU financial institutions to better address money-laundering and terrorist financing threats.
Enhancing the Role of the European Banking Authority .
ECOFIN Council Announces The Possibility Of Implementing An EU Digital Tax This Year
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September 11th, 2018
An informal meeting of the Economic and Financial Affairs Council (ECOFIN) took place in Vienna. At the end of the second day, Hartwig Löger, Austria’s Finance Minister, announced that an agreement to implement a digital tax by the end of 2018 is realistic.
Swedish Government Publishes Three New Measures Against Aggressive Tax Planning, Tax Evasion And Financial Crime
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September 6th, 2018
The Swedish government announced three new additional decisions to counter aggressive tax planning, tax evasion, and financial crime.
CFC Rules: Shorten the Whitelist for CFC .
EU Commission Published The Final Negative Decision On Luxembourg’s Illegal State Aid Granted To Engie
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September 6th, 2018
The European Commission has published the non-confidential version of the final negative decision adopted on June 20, 2018 concluding that Luxembourg granted undue tax benefits to Engie of around €120 million.
Details of the Structure .
Ireland Confirmes The Scenarios To Exempt Interest Payments To Hong Kong
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September 4th, 2018
The Irish Tax and Customs updated the Tax and Duty Manual and confirmed that, in certain circumstances, interest paid to Hong Kong should be exempted.
General Rule .
Swiss Bank Commits US Tax Evasion
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August 30th, 2018
The U.S. Justice Department approved a deferred prosecution agreement (DPA) with Basler Kantonalbank (BKB) which is a bank headquartered in Basel, Switzerland.
Undeclared U.S. Accounts Used for Tax Evasion .
UK Releases Civil Measures Of Money Laundering Supervision
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August 30th, 2018
The UK released civil measures of money laundering supervision. The document released sets out how HMRC will use its powers under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017.
Czech Republic Publishes The List Of Information Exchange Countries
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August 23rd, 2018
The Czech Ministry of Finance has published the list of countries exchanging country-by-country reports with the Czech Republic in Financial Report No. 7/2018. The new list contains 32 countries, replacing the current list of States exchanging reports under its earlier published countries.
Switzerland Adopts Dispatch On BEPS Multilateral Convention
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August 23rd, 2018
The Swiss Federal Council adopted the dispatch on the multilateral convention to implement tax treaty related measures to prevent base erosion and profit shifting (BEPS). The dispatch was submitted to Parliament.
UK Opens Consultation On Money Laundering Supervision Fees
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August 21st, 2018
HM Revenue and Customs (HMRC) launched a consultation on the way it charges fees to the businesses it supervises under the Money Laundering, Terrorist Financing and Transfer of Funds (Information Payer) Regulations (MLR) 2017. The consultation will end on September 21, 2018.
EU Commission Approves New Slovenian Commitment Package For Largest Banking Group In Slovenia
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August 16th, 2018
The European Commission has concluded that Slovenia's aid for Nova Ljubljanska Banka (NLB) remains compatible with EU State aid rules on the basis of a new commitment package submitted by the Slovenian authorities on 13 July 2018.
Background .
Luxembourg Publishes a Bill to Implement EU Directive On Tax Authorities’ Access To Anti-Money-Laundering Information
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August 9th, 2018
Luxembourg published a bill to implement Council Directive (EU) 2016/2258 amending Directive 2011/16/EU regarding access to anti-money-laundering (AML) information by tax authorities. The Bill was approved by parliament previously on July 27, 2018 and will be applicable as from August 10, 2018.
UK Issues Statistics About Transfer Pricing and Diverted Profits Tax
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August 2nd, 2018
The UK tax authority HMRC released statistics relating to transfer pricing and diverted profits tax.
Transfer Pricing
UK Issues Final List Of Reservations And Notifications Under The Multilateral Convention
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July 17th, 2018
The UK published its final list of reservations and notifications of the Multilateral Convention to implement tax treaty related measures and prevent base erosion and profit shifting ( BEPS ).
The Final List .
EU Adopts Best Practices Code To Strengthen State Aid Control
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July 17th, 2018
The European Commission has adopted a new Code of Best Practices for the conduct of State aid control procedures. This Code replaces the Notice on a Code of Best Practices adopted in 2009 and integrates the Simplified Procedure Notice of 2009.
UK Updates Requirement To Correct Guidance On Offshore Assets
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July 12th, 2018
The UK updated the Requirement to Correct (RTC) guidance to provide information about the new RTC legislation which relates to liabilities to Income Tax, Capital Gains Tax and Inheritance Tax.
Offshore Non-compliance Tackled by RTC Legislation .
German Ministry of Finance (MOF) Repeals Administrative Guidelines on Cost Contribution Arrangements
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July 12th, 2018
German ministry of finance (MOF) administrative guidelines on cost contribution arrangements as of 31.12.2018 canceled
By letter dated 5 July 2018, the German Federal Ministry of Finance (MOF) repealed the BMF administrative guidelines "Principles for the examination of deferred income through cost contribution arrangements between internationally affiliated companies" with effect from December 31, 1999.
EU Commission - Dutch Guarantee Scheme Does Not Constitute Illegal State Aid
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July 10th, 2018
The European Commission has decided that the "Growth Facility", a Dutch scheme to improve access to finance for small and medium-sized enterprises (SMEs), does not constitute illegal State Aid within the meaning of EU rules.
The Scheme Considered as Self-financing .
UK: HMRC Updates DTAs With Isle of Man, Guernsey and Jersey
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July 5th, 2018
In July 2017, Her Majesty's Revenue and Customs (HMRC) in the UK has announced the update of tax treaties with three jurisdictions. HMRC signed new comprehensive double taxation agreements and Protocols with Isle of Man, Guernsey, and Jersey respectively, but none of the new treaties has entered into force yet.
EU To Assess 3rd Countries’ Risk By The End Of 2018 For The 5th Anti-Money Laundering Directive
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June 28th, 2018
Commissioner Jourová gave a speech in front of the Special Committee on Financial Crimes, Tax Evasion and Tax Avoidance, at the European Parliament. Jourová emphasised the implementation of third countries’ risk assessment with respect to the 5 th Anti-Money Laundering Directive.
Switzerland - First CbCR Exchange Of Large MNEs
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June 21st, 2018
After the exchange of advanced tax rulings with partner jurisdictions , the Swiss Federal Tax Administration (FTA) is about to send its first multinational groups’ Country-by-Country reports (CbCR) to 35 partner states within the CbCR framework at the end of June, 2018.
Content of Exchange .
Shell Defends 7 Billion Tax Bill From Dutch Government
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June 19th, 2018
Shell is exposed to a potential €7 billion tax payment, which is a possible consequence of a state aid. Paul Tang, a Dutch member of the European Parliament, requested European Commission to investigate a controversial deal that Dutch government made with Shell in 2005, which exempts the UK-based shareholders from dividend tax in the Netherlands and has cost Dutch treasure loss over 7 billion euros.
Ireland Issues Guidance On Mandatory Disclosure Rules
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June 19th, 2018
The Irish Revenue issued a new Tax & Duty Manual related to the Directive regarding mandatory exchange of information in relation to reportable cross-border arrangements (DAC6). The manual provides a general overview of the scope of DAC6 and emphasizes that the Directive comes into force on June 25, 2018.
Switzerland Is Recommended To Rectify Withholding Tax Rules
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June 13th, 2018
The Swiss Federal Council was informed about the recommendation on a reform of withholding tax from the advisory board for the future of the Swiss financial centre.
Three Options .
EU: New Directive To Punish Money Laundering Criminals
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June 13th, 2018
The EU Council (at ambassadors' level) confirmed the agreement reached between the Bulgarian Presidency and the Parliament on new rules on using criminal law to counter money laundering. Member states will transpose it into national law within 24 months after the linguistic revision is done.
Italy Consults The Public On Digital Tax
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June 7th, 2018
The Department of Finance in Italy has opened a public consultation on two directives and a recommendation released by the EU Commission the taxation of the digital econom y . All interested parties are asked to comment on each of the documents proposed.
EU Proposes To Fight Against Fraud With €181 Million Budget
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May 31st, 2018
The EU Commission announced the budget plan for the next long-term during 2021-2027. In order to support Member States' efforts to fight fraud, corruption and other irregularities affecting the EU budget, the Commission proposes a new EU Anti-Fraud Programme by making €181 million available to finance targeted training and the exchange of information and best practice between anti-fraud enforcers across Europe.
Ireland Explains How To Implement Automatic Exchange Of Information
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May 24th, 2018
The Irish Revenue released three Manuals on implementing the automatic exchange of information. The new guidance replaces the former respective documents.
EU Adopts New Rules On Money Laundering
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May 18th, 2018
The Council of the European Union adopted a directive strengthening EU rules to prevent money laundering and terrorist financing. This is the follow-up work of the political agreement reached last December by the Presidency and the European Parliament .
Italy Issues Transfer Pricing Decree In Compliance to BEPS Action 8-10
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May 18th, 2018
The Minister for the Economy and Finance of Italy issued the Decree of Transfer Pricing Guidelines to cross-border transactions between associated companies. It implements the provision contained in Article 59, paragraph 1 of the Decree Law of April 14, 2017 n.
The Netherlands Publishes New Transfer Pricing Decree
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May 15th, 2018
The Netherlands published a new Transfer Pricing decree, in place of the decision of November 14, 2013, no. IFZ 2013 / 184M, providing further details on the application of the arm’s length principle.
Switzerland For The First Time Shares Advance Tax Rulings Information
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May 11th, 2018
The Federal Tax Administration (FTA) in Switzerland has for the first time transmitted information on advance tax rulings to spontaneous exchange of information partner states. For the first batch, Switzerland has transmitted 82 reports to a total of 41 states, including France, Germany, the United Kingdom, the Netherlands, and Russia.
Ireland Issues Country-by-Country Reporting Manual
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May 8th, 2018
The Irish Revenue released a new Tax and Duty Manual on Country-by-Country Reporting (CbCR). The manual responds to some frequently asked questions on the interpretation of the CbCR legislations in Ireland.
France Intends To Quit Its 30% Exit Tax In 2019
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May 3rd, 2018
President Macron of France indicated in an interview for Forbes the planning to attract foreign investment and boost business by abolishing the French exit tax. The policy is expected to be landed in 2019.
ECOFIN - Oncoming EU Efforts To Tackle Tax Fraud And Challenges Brought By Economy Digitalization
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May 1st, 2018
The Economic and Financial Affairs Ministers (ECOFIN) held an informal meeting in Bulgaria. Documents regarding the meeting have been available to the public, indicating oncoming efforts on the Union level to tackle tax fraud and challenges brought by economy digitalization.
Apple And Ireland Tax Appeal To Be Heard This Autumn
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April 26th, 2018
Irish Finance Minister Paschal Donohoe indicated that the appeal by Ireland and Apple against the EU Commission is to be heard this autumn, with the first hearing commencing in September. The Appeal pertains to the State Aid recovery of 13 billion euros from Apple, which was decided by the Commission in 2016.
EU To Harmonise Online Incorporation And M&A Activities
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April 26th, 2018
The EU Commission proposed new company law rules, aiming at digitalising the incorporation procedure and harmonising the merger, division and re-establishment of an enterprise within the Single Market. The new proposal is expected to curb abuse for undue tax benefit and protect legitimate interests of the interested parties, including employees, shareholders and creditors.
Dutch Dividend Tax Abolition Arises Fierce Debate
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April 26th, 2018
The Dutch government released 12 memo files of over 50 pages in total, outlining the decision-making process to abolish the Dutch dividend tax. However, this does not ease the political pressure on the Dutch Prime Minister Rutte, as already last October, the Netherlands proposed to abandon the withholding tax on dividend of domestic source to lighten tax burden on tax payers.
EU Rail Giants With Irish Hubs For Avoidance Purposes Are Targeted
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April 24th, 2018
A group of railway giants with operation in Europe have been brought to light about employing Irish hubs to circumvent their domestic tax liability. By transferring significant value of assets to Irish subsidiaries and signing leasing contract, the rail companies managed to lighten their overall tax burden and hoarding huge profits in the lower-tax jurisdiction, namely, Ireland.
UK - HMRC Releases Proposed Changes To Implement The MLI
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April 17th, 2018
HMRC released a Guidance on the upcoming implementation of the Multilateral Instrument (MLI), which has not yet come into force in UK. The Guideline includes two documents, that is (1) Provisional List Of UK Reservations And Notifications Under The MLI As Made At Signature , and (2) Proposed Changes To The Provisional List of UK Reservations And Notifications Under The MLI As Made At Signature .
EU Digital Economy Tax Gains Traction From The US
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April 17th, 2018
The digital economy tax proposal put forwarded by the EU Commission, including a 3% sales tax on certain transactions and a virtual permanent establishment reform , is held back by the United States. The US indicates to bring the EU proposal before the tribunal of the World Trade Organization.
UK Consults The Public On Tax Avoidance Involving Profit Fragmentation
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April 12th, 2018
On April 10, 2018, the Her Majesty's Revenue and Customs (HMRC) opens a public consultation on an anti-avoidance legislation draft, which tackles tax avoidance by moving UK profits outside the charge of UK tax with offshore trusts and companies. The new legislation is expected to enact in April 2019.
UK Opens Inquiry On Improper Tax Practice
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April 5th, 2018
The Treasury Committee in the UK recently opened an inquiry on Tax Avoidance and Evasion. With the investigation, the government hopes to examine what progress has been made in reducing the amount of tax lost to avoidance and offshore evasion and whether HMRC has the resources, skills and powers needed to bring about a real change in the behaviour of tax dodgers and those who profit by helping them.
IMF Announces Luxembourg Tax System Fragile To External Uncertainty
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April 5th, 2018
The International Monetary Fund (IMF) released a report on Luxembourg’s economic outlook and assessment of possible risks. In the report, the IMF points out that both the tax system of the country and the incentives are fragile and less durable to potential uncertainties and risk.
Denmark - Tax Authority Turns To Uber Drivers
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April 5th, 2018
Recently, the Demark Authority has issued tax letters to nearly 1200 Uber drivers who are found in avoidance cases during tax year 2014 and 2015. The total amount required by the tax authority reaches 11.
TAX3 Members Exchange Views With Moscovici
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March 28th, 2018
Commisioner Moscovici (Economic and Financial Affairs, Taxation and Customs) had an exchange of views with the Members of TAX3 on issues related to taxation. The Recommendation following the inquiry on money laundering, tax avoidance and tax evasion , published, last December was presented during the meeting as well.
UK Updates Anti-Money Laundering Guidance For The Accountancy Sector
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March 28th, 2018
HMRC published the updated Anti-Money Laundering Guidance for the Accountancy Sector, which was firstly issued in August 2008. The latest amendment was from January 2018 and is based on the 2017 Anti-Money Laundering Draft Guidance.
EU Commission Releases New Measures On Digital Economy Taxation
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March 21st, 2018
The European Commission has proposed new rules to ensure that digital business activities are taxed in a fair and growth-friendly way in the EU. The first initiative aims to reform corporate tax rules to capture user created value and forms the Commission's preferred long-term solution; the second proposal responds to calls from several Member States for an interim tax which covers the main digital activities that currently escape tax altogether in the EU.
Clearly With One Eye On The UK - Dutch Withholding Tax
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March 19th, 2018
The Dutch aren’t big on withholding taxes (WHTs), even less than the UK. There’s no WHT on royalties and WHT on interest is limited to loans that work like equity (so the interest is a proxy for dividends).
Switzerland Issues Position Paper On Taxing The Digital Economy
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March 16th, 2018
The State Secretariat for International Financial Matters (SIF) of Switzerland released a position paper, stating that the digitalised economy should be tax properly without being hindered.
Principles Not to be Undermined .
UK Updates Digital Economy Tax Position Paper And Consults Platform’s Role
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March 16th, 2018
Following the first position paper published in 2017 November, on March 13, 2018, the British government updated the position paper to reflect feedback from stakeholders, explaining in more detail how the government thinks this challenge can be solved. On the same day, the government opened a public consultation on how to tax digital economy effectively with the assistance of digital platforms.
ECOFIN - EU Ministers Negotiate The Draft On Tax Transparency Of Intermediaries
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March 13th, 2018
On the Economic and Financial Affairs Council (ECOFIN) regular meeting in Brussels on March 13, 2018, the Ministers are supposed to reach an agreement on a proposal for greater transparency in tax planning schemes. The proposal intends to deal with tax transparency for intermediaries by mandatory reporting, such as tax advisors, lawyers or accountants, aiming to fight tax avoidance and potentially harmful planning schemes.
EU Highlights Seven Member States For Tax Avoidance Risks
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March 9th, 2018
The European Commission released the 2018 European Semester Winter Package, in which economic and social situations are reviewed on a yearly basis. “I want to highlight the fact that for the first time, the Commission is today stressing the issue of aggressive tax planning in seven EU countries: Belgium, Cyprus, Hungary, Ireland, Luxembourg, Malta and The Netherlands”, according to the European Commissioner Pierre Moscovici.
Germany Continues Common Corporation Tax With France
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March 6th, 2018
German Chancellor Angela Merkel announced during her weekly podcast that Germany will push forward the cooperation regarding “Common Corporation Tax Plan” with France. The collaboration between the two countries is becoming closer following the US tax reform by President Trump and Brexit.
EU Establishes Special Committee For Financial Crime And Tax Avoidance
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March 6th, 2018
The European Parliament had its plenary session in Brussel, where it established a new 45-member task force to work on the EU’s Special Committee on Tax Rulings. This task force is a response to the Paradise Papers leak in 2017, and it will also contribute to investigations by the Committee of Inquiry into Money laundering, tax avoidance, and tax evasion.
UK Updates Anti-Avoidance Disclosure Guidance & Interest Deduction Limits
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March 2nd, 2018
Her Majesty's Revenue and Customs (HMRC) updated two legislations on making a tax avoidance scheme disclosure and group interest deduction limitation respectively.
Disclosure of Tax Avoidance Schemes: Guidance .
The Netherlands Proposes The Anti-Avoidance Measures Package
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March 2nd, 2018
The Dutch Ministry of Finance released two policy letters to set out priorities in tax matters for until 2021. In the letters, the government announced a package of tax measures to tackle tax avoidance and evasion consisting of the following two pillars.
France To Cut Corporate Tax Rate To 25% By 2022
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February 27th, 2018
The Budget Act for 2018 in France has introduced a series of significant changes to tax treatments of business, including a reduced corporate tax rate, abolition of tax on dividend distributed, more tolerant financial expense deduction, and transfer pricing documentation requirement.
Reduced Corporate Income Tax .
EU Puts Forward Equalisation Levy Of 1%-5% On Tech Giants
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February 27th, 2018
The European Commission is planning to choose a levy on gross revenue to tax the digital giants with operation in Europe, according to a drafting document of the Commission. This proposal is similar to the equalisation levy proposal provided by France, and it is supposed to be published in the second half of this March.
UK Updates Mutual Agreement Procedure Guidance
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February 22nd, 2018
Her Majesty's Revenue and Customs (HMRC) published the Statement of Practice 1 (2018) to supersede the Statement of Practice 1 (2011). The new statement outlines the mutual agreement procedure (MAP) process and the use of MAP under the relevant UK Double Taxation Agreements and/or the EU Arbitration Convention (EUAC).
EU Releases Consultation Outcome On Digital Economy Taxation Issue
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February 22nd, 2018
The EU Commission released feedbacks from the public on the Fair Taxation of The Digital Economy consultation during October 26, 2017 to January 3, 2018. The public consultation received 446 replies and 121 position papers to further explain views of the repliers.
Azerbaijan Plans Stimulating Policy With Tax Transparency Ensured
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February 15th, 2018
Mikayil Jabbarov, Minister of Taxes in Azerbaijan, announced at the conference on "Taxes - Transparency: Development" that the country intends to pursue a stimulating tax policy, transparency will be ensured in the tax system of Azerbaijan and extensive work is ongoing in this direction.
Economic Image and Tax policy .
UK Updates Business Investment Relief (BIR) Guidance
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February 15th, 2018
HM Revenue & Customs (HMRC) updated the Business Investment Relief (BIR) legislation which was introduced on April 6, 2012. With the amendments, a new category of qualifying target company is added to the target company list.
Germany Tackles 'Goldfinger' Tax Evasion
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February 15th, 2018
Recently, the German authority has raided over 200 private and domestic business presences, where potential risks of tax evasion were highly expected to be detected, with many investors and tax professionals arrested. The arrested were found involved in illegal gold trading to circumvent their tax liability.
France And Germany Drive EUTo Tax Digital Economy
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February 8th, 2018
The German coalition government composed of Chancellor Angela Merkel’s conservatives (CDU/CSU) and the Social Democrats (SPD) announced to step forward in the cooperation with France. One intention of this is to establish a pan-European corporate tax scheme to tax the tech giants and tackle tax avoidance through the common corporate tax base and a minimum rate.
Bulgarian Presidency Releases Tax Policy Roadmap
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February 6th, 2018
The European Union Presidency of Bulgaria released its roadmap for the coming months on tax issues. Taking into account the latest development in tax practice and governmental negotiations, the roadmap set future work regarding direct taxation and indirect taxation, with both short-term and medium-term proposals.
UK Launched A New Regulator On Anti-Money Laundering
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January 25th, 2018
The British government established the Office for Professional Body Anti-Money Laundering Supervision (OPBAS). The new organisation is housed within the Financial Conduct Authority, and it constitutes part of a wider package of reforms to strengthen the anti-money laundering (AML) supervisory regime in the country.
EU Council Approved To Remove Eight Jurisdictions From EU Blacklist
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January 25th, 2018
The European Council agreed to remove eight jurisdictions from its Non-Cooperative Jurisdiction List, based on an expert assessment by the Code of Conduct Group that commitments made by these jurisdictions to address deficiencies identified by the EU may justify the delisting decision. The alleged EU Blacklist was issued by the EU Council on December 5, 2017, and the countries contained may commit to meet the EU criteria to be delisted.
IMF: British Territorial Taxation Largely Boosts ODI In Low Tax Jurisdictions
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January 19th, 2018
The International Monetary Fund (IMF) released the working paper ‘Where Does Multinational Investment Go with Territorial Taxation? Evidence from the UK’. The paper illustrates the outcome of British favourable tax framework on investment, including the influence of UK’s territorial taxation regime and free of dividend tax.
UK Simplified Arrangements On Losses Carried-forward For Group CIT
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January 19th, 2018
HMRC released a notice to announce changes in group relief regulation, under which simplified arrangements are provided for groups to carry forward losses. The new measure will have effect for losses incurred on or after April 1, 2017.
EU Is Delisting Eight Jurisdictions Under Its Tax Haven Blacklist
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January 19th, 2018
The Code of Conduct Group of the European Union proposed to delist eight jurisdictions out of the seventeen from its Non-cooperative Jurisdictions For Tax Purposes , namely, Panama, South Korea, the United Arab Emirates, Barbados, Grenada, Macao, Mongolia and Tunisia.
Background .
Slovakia Plans To Tax Digital Platform And Cryptocurrencies Like Bitcoin
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January 16th, 2018
Earlier this month, Peter Kažimír, the Finance Minister in Slovakia announced that the Income Tax Act has been amended to cover digital platforms such as Airbnb, Booking.com and Uber. He also indicates the plan to draft a proposal on taxation of cryptocurrencies, such as bitcoin.
UK Recovers £137m Tax From Tech Giant
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January 12th, 2018
Apple Europe, the wholly-owned subsidiary of Apple in the UK, announced that an agreement has been reached with Her Majesty's Revenue and Customs (HMRC) after the long auditing and negotiation. Under the agreement, Apple accepts the tax adjustment and will recover extra tax of £137 million to the HMRC.
France Comforts Ireland About The Worries On Its Digital Tax Proposal
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January 10th, 2018
The French President Emmanuel Macron re-affirmed the willing to establish a pan-European tax scheme on digital economy during his New Year's press conference. He also indicated that interests of smaller countries like Ireland, Malta, and Luxembourg are not to be impeded if US tech giants such as Google and Apple are taxed on the Union level.
EU - New Rules To Prevent Tax Evasion And Money Laundering Enter Into Force
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January 4th, 2018
On January 1, 2018, the new amended rules regarding anti-tax evasion and anti-money laundering came into effect, which obliges Member States to give tax authorities access to data collected under anti-money laundering legislation. The new rules welcomed by the EU Commission are enshrined in the Directive on Administrative Cooperation (Directive 2011/16/EU).
Italy Is To Open Web Tax Of 3% On Digital Service
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December 21st, 2017
The Budget Commission of Italy’s lower house approved the “web tax” measure. Under this proposal, companies are obliged to pay a 3 percent levy on certain online transactions.
EU Revises Anti-Money Laundering Directive By Improving Transparency
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December 21st, 2017
The presidency and the European Parliament reached a political agreement on strengthening EU rules to prevent money laundering and terrorist financing. By amending Directive 2015/849, the revised transparency rules are expected to shed light on the large-scale concealment of funds without hindering the normal functioning of financial markets and payment systems.
EU Has Concerns over Dutch Tax Ruling to IKEA as State Aid
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December 19th, 2017
The European Commission announced to open an in-depth investigation into the tax treatment of IKEA in Netherlands. The investigation concerns two Dutch tax rulings granted to Inter IKEA in 2006 and 2011 respectively.
Ukraine: Roadmap On Tax Transparency Standard And Information Exchange
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December 16th, 2017
The Ukrainian Ministry of Finance presented a Roadmap, with which the country commits to implement international standards of transparency and exchange of information, “Tax transparency: EOIR / AEOI CRS”, in Ukraine.
Assessment .
EU Announces Oncoming Legislative Priority
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December 16th, 2017
On December 12, 2017, the European Council approved the EU's legislative priorities for 2018-2019, and initiatives listed in the declaration have been agreed by the European Parliament and the Commission. Substantial progress and agreement on these legislative initiatives are expected to be achieved before the 2019 European elections.
EU Agrees Equalization Levy And Virtual PE Concept On Digital Economy Tax
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December 8th, 2017
The ECOFIN Council has approved Conclusions on Taxation of the Digital Economy , aimed at facilitating the Union to be better involved in the international discussions on digital economy taxation. It also serves as a reference to further work on the subject at EU level, including expected legislative proposals by the Commission early in 2018.
EU Tax Haven Blacklist Including 17 Jurisdictions
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December 8th, 2017
The Finance Ministers of EU Member States agreed to the first ever EU list of Non-Cooperative Tax Jurisdictions during their meeting in Brussels. In total, 17 countries for have been listed failing to meet agreed tax good governance standards.
UK Issues Consultation Outcome On Notifying Offshore Structure Requirement
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December 6th, 2017
HM Revenue & Customs (HMRC) published the consultation outcome on a proposed new legal requirement and responded to issues concerned. In the proposal, if intermediaries create or promote certain complex offshore financial arrangements, they need to notify HMRC of these structures and their clients using them.
Italian Guideline On CbCR And Automatic Information Exchange Released
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November 30th, 2017
The Internal Revenue Agency (Agenzia Entrate) in Italy released an order, which provides information for multinationals based in Italy to disclose data of their subsidiaries in the context of automatic country-by-country reporting. The order covered necessary information concerned the reporting arrangements, the deadlines for reporting the content of communication, and the language regime.
PANA Final Meeting Held With A Hearing on Paradise Papers
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November 30th, 2017
The final meetings of the Committee of Inquiry into Money Laundering, Tax Avoidance and Tax Evasion (PANA) took place with a Hearing on Paradise Papers in the afternoon. During the 15-month investigation by the Committee, 25 hearings, workshops and 11 studies took place.
Dutch Law Amended Regarding Access to Anti-Money Laundering Information
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November 30th, 2017
The Dutch Senate approved the bill on the implementation of the EU Directive on the access of tax authorities to anti-money laundering information in Dutch law. This bill is the amendment to the Act on the International Assistance in Taxation and thus implements the EU Directive 2016/2258 .
Oxfam - Four EU Member States Could Be Found Tax Havens
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November 28th, 2017
Based on information leaked from the Paradise Papers , the EU has announced to compile a blacklist on the low-tax and non-cooperative jurisdictions, and the final version of such a list is expected to be released on December 5, 2017. Accordingly, Oxfam, an NGO based in UK, has issued a report on November 28 to give its opinion on jurisdictions with problematic tax scheme.
UK Issues Position Paper on Corporate Tax and Digital Economy
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November 24th, 2017
The British Government released a position paper to give its view on challenges posed by the digital economy for the corporate tax system and its preferred solutions. The objective is to ensure that the corporate tax rules respond to the modernisation of the economy and deliver appropriate results for digital businesses that generate value in unique ways.
The Netherlands Combats Tax Evasion Via Stricter Trust Rules
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November 24th, 2017
Since publication of the Paradise Papers , many jurisdictions have taken measures to respond and made use of the information released. Recently, the Dutch government also announced to tighten its rules for trust office and trust managers as a resort to combat the evasion which makes use of trusts.
Poland - New Transfer Pricing Regulations Since 1 January 1st 2017 (2)
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November 23rd, 2017
The amended regulations concerning transfer pricing became valid on 1 January 2017. The most significant change is that under the new regulations, taxpayers’ obligations are differentiated by revenues/costs value (in accordance with accounting regulations) exceeded in the previous tax year.
EU State Aid Rules Hit UK CFC Rule And Greek Rule
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November 22nd, 2017
Recently, the European Commission released its latest findings on the investigations into the domestic legislations of UK and Greece respectively. The Commission finds that the British CFC exemption constitutes illegal state aid and decides to initiate the formal investigation procedure to the UK scheme, while the Greek defence system is found to fall outside the scope of the state aid, with a small proportion of illegal measures to be recovered.
New Transfer Pricing Regulations In Poland In Force Since January 1st, 2017
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November 15th, 2017
New transfer pricing regulations in Poland were introduced into the tax system to implement the instruments developed by OECD within BEPS framework. However, there are some different items and obligations included in Polish regulations that are not part of the OECD Guidelines.
PANA Committee Report Confirms Malta Is Not A Tax Haven
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November 14th, 2017
The EU PANA Committee published Report 2017/2013(INI), which presents the Committee’s findings on the investigation into Malta's tax scheme and political sphere. Some of the results illustrate an opposite view to the “Maltese tax haven” opinion held by many scholars and politicians.

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