Category International Tax Cooperation

US Companies Stashing Trillions Offshore

April 13, 2017 International Tax CooperationOffshore Taxation

Taxes in the USAWASHINGTON D.C. – The largest companies in the USA are ramping up their reliance on offshore subsidiaries to place their profits out of reach of tax authorities.

In 2015 the 50 biggest companies in the USA stashed an extra USD 200 billion offshore, using 143 newly created overseas subsidiaries, according to new information released by Oxfam International on February 12th.

Over the course of 2015 the top 50 companies made use of a total of 1 751 subsidiaries, which were primarily located in tax havens.
These subsidiaries were used to hold approximately USD 1.6 trillion in cash and profits.

It was also stated that the problem of offshore cash stashing was exacerbated by the large companies’ propensity for lobbying to receive tax breaks.

Oxfam estimated that for every USD 1 that the comp...

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New Zealanders and Chileans Face Lowest Tax Burden

April 13, 2017 International Tax Cooperation

Taxing wagesPARIS – Taxpayers in Chile are facing a tax wedge of only 7 percent, while those in Germany are burdened with 49.4 percent.

The Organization for Economic Cooperation and Development has released its annual Taxing Wages report, detailing the tax burden faced by individual taxpayers across different countries.

The country with the lowest tax burdens for single individuals was found to be Chile, with a tax burden of 7 percent, while the next lowest countries were New Zealand and Mexico with 17.9 percent and 20.1 percent respectively.

The countries with the highest tax burdens were Germany, Hungary and France, with tax burdens of 49.4 percent, 48.2 percent, and 48.1 percent respectively.

The average rate of the tax burden on labour income across all the countries of the OECD dropped for the ...

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EU Banks Booking Profits in Tax Havens

March 27, 2017 International Tax CooperationOffshore Banking

Taxes on banksOXFORD – EU’s biggest banks are seeing millions of dollars being made in profits, in countries where they have no branches or staff.

According to the information contained a in a new report released by Oxfam International on March 27th, approximately a quarter of all profits and activity booked by the 20 biggest banks in Europe is booked through entities located in tax havens.

Oxfam suggested that the activity which is said to transpire in tax havens is actually booked through locations which have few, if any, any bank staff, and, therefore the proportion of profits moving through tax havens is well out of proportion to the economic realities of the bank’s business.

However, if the activity in the tax havens is real, then it would mean that the employees located in tax havens are, on a...

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Tax the Robots, Says Bill Gates

February 20, 2017 International Tax Cooperation

Taxes on robotsWASHINGTON D.C. – Robots workers should be taxed at the same level as human workers, according to one of the world’s most prominent tech leaders.

In a new interview, the technology leader and philanthropist Bill Gates advocated for income taxes to be applied on robots and other technology which take over the roles of humans.

Bill Gates explained that an average worker pays a significant amount of income tax, social security, and other taxes on the incomes that they earn from carrying out work.

However, if a business was to replace the human worker with some automation technology, the machine would not be paying any taxes, despite carrying out the same work.

The decrease in tax revenues is likely to have a negative effect on the ability of governments to fund social infrastructure and s...

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WHO Calls for Hike on Cigarette Taxes

January 13, 2017 International Tax Cooperation

Cigarette taxes should be hikedGENEVA – More than 66 million smokers worldwide would drop the habbit, if excise taxes on cigarettes were bumped up slightly.

Minor increases in the taxes levied on the sale of cigarettes worldwide could raise billions in extra tax revenues, while also saving millions of lives, according to the results of a new study released jointly by the World Health Organization and the U.S. National Cancer Institute.

It was estimated in the report that smoking results in approximately 6 million death each year, and carries a global financial burden equivalent to USD 1 trillion in healthcare costs and lost productivity.

It is estimated that global excise taxes on tobacco generated USD 269 billion between 2013 and 2014, and less than USD 1 billion of the collected total was diverted to tobacco preventi...

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