By Prof Robert Anthony, Anthony & Cie
BEPS (Base erosion and profit shifting) has become the in word following on from transfer pricing. It is on the tip of every tax professional’s tongue While international prosperity reigned, governments were not so concerned about losing tax revenue. However, premeditated aggressive tax planning triggered famous tax cases as well as new domestic anti-avoidance legislation. This was because of the industrialised use of famous high profile tax planners charging percentage fees for finding loopholes in legislation.
By Stefano Loconte and Gabriella Antonaci, Loconte & Partners
The Circular No. 21/E of Italian Revenue Agency (hereinafter “the Circular”) clarifies, through a series of explanations, the reverse charge method introduced by Italian Legislative Decree No. 24 of 11 February 2016 entered into force on May 2nd 2016.
By Dr Massimiliano Russo, Studio Signori
After a recent debate as to the possible introduction of new tax tools and incentives to attract foreign investments in Italy as well as a long period in which we have seen measures increasing the tax burden for both companies and individuals, this newly introduced legislation on the Patent Box Regime as a tax incentive is most welcome (in the following also referred to as the “incentive”). Unfortunately, as with most the newly introduced legislation in Italy, some aspects have not yet been committed and will be further regulated in future ministerial decrees. The interpretation of the newly introduced rule by tax authorities is also still awaited.
By Prof Stefano Loconte and Angela Cordasco, Loconte & Partners
On the basis of the successful experiences recorded by some foreign countries (e.g. the UK, Portugal and Malta), Italy has introduced the “resident nondomiciled” regime for all individuals who want to transfer their residence in Italy after having lived abroad for over nine years.
Set against the background of the deepening economic crisis within the member states of the EU, the European Commission is analyzing the development of poverty, unemployment and exclusion analyzed. Here the EU has shown a clear dichotomy: The highest values in terms of poverty and unemployment risk in the southern and eastern states, set against the relatively successful crisis management in the north, in particular in Germany, France and Poland.
By Graham Busch, Lawrence Grant
The past 12 months or so has seen some of the most significant developments in many years affecting people coming to live in the UK or investing in the UK. These include:
- An end to the long-term non-domiciled status
- Tax on the gains on all sales of residential properties
- See through for Inheritance Tax on UK residential properties held in offshore companies
- Main residence election
- Some good news
By Graham Busch, Lawrence Grant
Come in James Bond? Shaken not stirred? Well, to be honest, the vehicle to which I refer is not 007's Aston Martin. Nothing quite so glamorous. Nonetheless, a very interesting opportunity for international traders wishing to use a UK entity that offers limited liability in a potentially (entirely) UK tax-free environment. I am talking here about the UK Limited Liability Partnership, or LLP.
By Raluca Tutu, Mirus Consultantá Fiscalá SRL
Persons subject to the VAT cash accounting system. These are taxable persons whose place of business is located in Romania, who are registered for VAT purposes and who have a turnover not exceeding RON 2,250,000.
Economic growth has been shifting towards new markets over the past number of years. As a result, 83 of the developing and emerging countries have grown at least twice as fast as the industrial states during the past decade, and are already showing high incomes. The result is a shift of the global wealth from west to east and from north to south. And although the middle-class segment is also growing considerably in these emerging countries, problems are still arising that could pose a hazard to stability unless countermeasures are taken by the governments.
By Ross D. R. Forrester, Westcourt Chartered Accountants
The Australian government has made significant steps in simplifying tax compliance for overseas persons doing business in Australia.
By Robin de Raad, Zirkzee Group
As a result of BEPS Action 13, The Netherlands released tax law regarding transfer pricing (TP) documentation on January 1 2016. Under the new legislation, multinational enterprises (MNEs) with a minimum consolidated turnover of EUR 50 million will have to deal with a three-tiered approach to TP documentation: master file, local file and country-by-country report.
By Daria Martirosova, ADE Professional Solutions
The concept of controlled transactions and a legal framework for control over transfer pricing has existed in Russia since 2012. Nonetheless, many companies are still not exactly aware of how these regulations apply to them.
By Carlos Frühbeck Olmedo, Ficesa Treuhand, S.A.P.
In general, if a business has a warehouse or deposit located in Spain, it is considered to have a permanent establishment in this country. However, there are some exceptions to this rule.
By Bernhard Schwechel, FACT GmbH Steuerberatungsgesellschaft, Wirtschaftsprüfungsgesellschaft
In a decision in December 2015, the German Federal Constitutional Court confirmed the practice of treaty override in tax law. “Treaty override” described the procedure whereby the German legislator adopts a law which violates a prior international treaty (often a treaty on double taxation).
By Professor Robert Anthony, Graham Busch, Brigitte Jakoby, Nick Dornburg, Sergio Finulli, Fola Olaniyan, Robert R. Worthington, Angel Gabriel Viso, Ashish Bairagra and Ricky Wong, Independent member firms of GGI
The following article considers the efficacy of the trust as a means of tax planning, and considers how trusts are dealt with in a variety of jurisdictions.
By Pablo Garciga, Funaro & Co. PC
A major paradigm shift is on the horizon in determining sales tax nexus in the USA. Historically, physical presence has been required before a state has been permitted to impose its sales and use tax on transactions of out-of-state vendors. In an era when many states are insolvent, they have devised ways around this principle; the most recent of which is a direct attack opposing it.
By David J Kidd, Citroen Wells Financial Audit & Accountancy Services
London as favoured location? There was a recent report that London and New York are still the favoured places for the world's wealthy to buy houses, but competition is growing from Beijing and Dubai. Quality of life and economic activity were, according to the report, among key factors for the wealthy in choosing where to invest. London came top of the list in most factors and was still expected to be top of the list in a decade's time. This report was prepared prior to the UK Budget on 21st March 2012 when adverse tax measures, uncertain in detailed scope, were announced; and it remains to be seen whether London can continue to be a favoured place. This article covers the main changes.
By Prof Robert Anthony, Anthony & Cie
In its recent budget legislation, the UK government made a change which affects the tax paid by residents who have lived in the UK for more than 15 years while earning income from abroad. For many years, the UK has attracted a number of Asian, Middle Eastern, African, South American, European and more recently Eastern European individuals who do not have to pay tax on their worldwide income. U.S. nationals who are taxed on their worldwide income will not be as affected as others, as it is the effective rate of tax which could be an issue.
By Sonal Shah, Lawrence Grant
The current rules on residency have been based on cases decided over a hundred years ago. The rules have never been easy to apply, they lack certainty and this has hindered international mobility. The UK government recognised that in order to safeguard the UK's attractiveness as a destination for individuals and businesses, the current rules of residency were unsustainable. We have good news!
Liability to UK income tax and capital gains tax is dependent on the residence status of the individual. The term 'residence' appears many times in UK tax legislation but until now this has never been properly defined in that legislation. Instead, for almost 200 years the courts have been establishing a range of factors which can affect the determination of an individual's residence status. How long an individual spends in the UK in a tax year is important to this decision as well as the principle of whether they are coming to the UK temporarily.