Category International Tax Cooperation

P2P Taxes Must be Considered Now

August 11, 2017 International Tax Cooperation

p2p taxationWASHINGTON D.C. – Governments can longer ignore the growing influence of the global P2P economy and must choose how they will tax such businesses in the future.

The International Monetary Fund has released a new working paper which prompts governments around the world to consider the taxation measures that they will implement in regards to P-2-P economies and businesses.

Over the last several years, peer-to-peer businesses have played an increasingly important role in the economy.

However, the nature of peer-to-peer business means that the fundamentals of taxation that governments have relied on for decades are now being disrupted.

It was noted that the disruption comes from the comparative ease of avoiding tax obligations on incomes earned through P2P activity.

Further, P2P businesses ...

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Audits Scare Businesses into Paying Tax

August 1, 2017 International Tax Cooperation

Tax auditWASHINGTON D.C. – Business can be scared into paying more tax, simply by being shown the likelihood of being audited.

Statistical information about the possibility and repercussions of audits can scare businesses into paying more tax, according to the results of new research published by the National Bureau of Economic Research.

The results were derived by a team of researchers who worked with the Internal Revenue Service of Uruguay to send letters to more than 20 000 companies across the country.

The companies received letters either providing generic information about taxes and audits, or a letter containing information about the statistical probability of being audited, and the likely penalties from the audit.

The researchers found that the letters presenting statistical information ...

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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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