By Kurt C. Wulfekuhler, Economics Partners, LLC
Globalization has produced tremendous gains for the world’s economies through increased trade and foreign direct investment leading to greater employment and innovation. Multinational enterprises (“MNEs”) have also become more integrated and globalization has helped them reduce their tax burdens by shifting profits to lowtax jurisdictions through transactions with related parties. Concerned that this so-called base erosion and profit shifting (“BEPS”) poses a serious risk to tax revenues, tax sovereignty, and tax fairness, the Group of Twenty (“G20”) and the Organisation for Economic Co-operation and Development (“OECD”) developed an Action Plan on Base Erosion and Profit Shifting (“Action Plan”).
By Martin Straub
Automatic Information Exchange (AIA) of client financial data under the US Foreign Account Tax Compliance Act (FATCA) and the OECD’s Common Reporting Standard (CRS) is now reality. Information is flowing under FATCA and information will start to flow under CRS in September 2017. These unprecedented invasions of personal privacy have now removed any remaining illusion of client privacy or confidentiality.
By Andrew Lacey and Danyal Ibrahim, McCabes
The Australian Government recently introduced the Insolvency Law Reform Bill 2015 into Parliament. The reforms are part of a wider government initiative, labelled the ‘National Innovation and Science Agenda’, which are designed to boost innovation and entrepreneurship amongst Australians.