Category Offshore Taxation

UK Businesses Already Pay Enough Tax

April 23, 2012 Offshore TaxationTaxation in UK

CBI Releases report on UK TaxLONDON – UK registered businesses are paying nearly one third of all taxes collected in the country and are perfectly entitled to use low tax jurisdictions as part of their corporate structures, according to the Confederation of British Industry.

Late last week the UK business lobbying organization the Confederation of British Industry (CBI) released a new report showing the magnitude of taxes collected by the HM Revenue and Customs from businesses operating in the UK. The time of publication of the report coincides with the launch of a new campaign, aimed at fighting the spreading sentiment amongst the media and public that businesses in the UK are not paying their fair share of taxes.

According to the CBI’s research, during the 2010 – 2011 fiscal year the total tax collections in the UK ...

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UK Widens Own Tax Loopholes

March 7, 2012 Offshore TaxationTaxation in UK

UK Widens Tax LoopholesLONDON – The government of the UK is easing some rules regulating Controlled Foreign Comapnies, and the changes may lead to billions in lost tax revenues in developing countries and in the UK.

The international development charity ActionAid is claiming that the UK government will open up a new tax loophole that will allow UK registered companies to avoid paying significant amounts of taxes when operating overseas. Details of the alleged loophole were described in a new report, called Collateral Damage, released recently by the organization.

According to ActionAid, the government of the UK intends to dilute the current rules of Controlled Foreign Companies (CFC), which will ultimately allow UK registered entities to reduce their own tax obligations when operating in developing nations...

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IRS Offers Tax Cheats the Chance to Come Clean

January 10, 2012 Offshore BankingOffshore TaxationTaxation in USA

Douglas ShulmanWASHINGTON D.C. – Following the success of previous US offshore voluntary disclosure programs, the US tax authorities are once again offering taxpayers an incentive to reveal information about any bank accounts they have hidden overseas.

On January 9th the US Internal Revenue Service (IRS) announced that it has initiated another Offshore Voluntary Disclosure (OVD) program for taxpayers to declare their hidden offshore assets in exchange for lowered penalties.

The new program started on the day of the announcement, and will continue indefinitely. Taxpayers making use of the OVD will be required to reveal detailed information regarding their previously undisclosed assets and capitals hidden in offshore bank accounts.

In exchange for revealing the information, taxpayers will avoid the possib...

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UK Companies “Addicted” to Tax Havens

October 13, 2011 Offshore TaxationTax Havens

UK Companies use Tax HavensLONDON – New research shows that nearly one quarter of the UK’s largest companies make use of subsidiaries registered in tax haven jurisdictions.

On October 11th the international development charity ActionAid released a new report, entitled Addicted to tax havens, which aimed to provide the first comprehensive analysis on the use of subsidiary companies by UK businesses listed on the FTSE 100.

The report found that 98 of the 100 biggest companies on the FTSE make use of subsidiaries registered in jurisdictions that are regarded as tax havens. In total, the 100 companies have 34 216 subsidiaries, with 8 492 of the entities being located in tax havens.

The banking sector made the most use of subsidiaries registered in offshore financial centers, with the country’s four largest banks hol...

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UK Makes Move Against Offshore Tax Evasion

February 1, 2011 International Tax CooperationOffshore BankingOffshore TaxationTax HavensTaxation in UK

HM Revenue & CustomsThe UK is set to impose harsher penalties on tax offenses committed by UK taxpayers through the use of entities incorporated offshore jurisdictions, in some cases even doubling the fines. However, questions have arisen regarding the potential effectiveness and ultimate motivation behind the revised rules.

On January 31st the the UK HM Revenue and Customs (HMRC) released a statement stating that from the April 6th 2011 is scheduled to impose a steep hike in the penalties imposed on taxpayers for non-compliance with tax legislation arising from activities involving companies incorporated in offshore jurisdictions...

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