Category Offshore Taxation

Developing Nations Loose USD 6.5 Trillion Since 2000

January 24, 2011 International Tax CooperationOffshore BankingOffshore TaxationTax Havens

Cash DepositTax evasion, trade mispricing, bribes, and other forms of illicit financial activity caused nearly USD 1.26 trillion to flow from developing nations into wealthier countries in 2008, with the rate growing by an average of 18 percent since the year 2000.

Last week Global Financial Integrity (GFI), an independent international body aimed at eliminating the occurrence of illicit cross-border flow of capital, released the latest annual report on the severity of illicit outflows across the developing world.

The report stated that the magnitude of illicit capital outflows out of developing nations has increased by 18 percent per year since the year 2000, if viewed in current dollar terms. At the beginning of the decade illicit flows totaled approximately USD 369...

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US to Distribute Info On Foreign Accounts

January 18, 2011 International Tax CooperationOffshore BankingOffshore TaxationTax HavensTaxation in EUTaxation in USA

Please Insert CoinAs countless international investors and individuals strive to establish a non-resident bank account in the USA, the Internal Revenue Service and the US Government are proposing a series of legislative changes which could make the US based deposits significantly less appealing.

On January 7th the Internal Revenue Service (IRS) published a new set of proposed rules regarding the treatment of bank accounts in the US held by non-residents. Under the potential changes, all US-based commercial and private banks, credit unions, brokerage institutions, and other financial service providers, must inform the IRS of the identity and details of non-residents holding an account which receive over USD 10.0 in interest throughout the year.

The new proposal could be seen as an effort by the US to show...

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Belgium Clarifies Ambiguous Tax Law

December 23, 2010 International Tax CooperationOffshore TaxationTax HavensTaxation in Belgium

Angel & National Flag of Belgium, Martyrs' Square - Place des Martyrs - Martelaarsplaats, Brussels, BelgiumBelgian tax authorities have clarified their standing on a one-year old tax law on fund transfers to tax havens, after tax professionals claimed that the new rules were unclear and in need of more specifics.

Recently the tax authorities of Belgium released a long-awaited circular intended to clarify a tax law that was introduced into the Belgian tax code on December 23rd 2009. The law concerned the reporting requirements for Belgian resident and non-resident business entities operating in the country which transfer funds or make payments to tax haven jurisdictions.

The law became effective on January 1st 2010, although the concerning legislation was largely regarded as unclear and ambiguous...

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India Investigating Illicit Use of Offshore Companies

December 13, 2010 Offshore TaxationTax HavensTaxation in India

India - A Multitude of People and Cultures (Mosaic)Indian tax authorities are beginning a series of new investigations to uncover evidence of tax evasion committed by over 100 different Indian companies suspected of dodging their tax obligations through intricate offshore company structures.

On December 12th the Finance Ministry of India announced that it would launching investigations to uncover evidence of tax evasion committed by over 100 high net-worth Indian businesses with operations in offshore tax havens. The investigation, which has been dubbed “Lifting the Corporate Veil”, will be run by the Income Tax department in conjunction with the foreign taxation unit of the Central Board of Direct Taxes (CBDT).

At the preliminary stage of investigations the CBDT already unearthed evidence of business structures that facilitate billio...

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SABMiller Accused of Dodging Taxes in Africa

November 30, 2010 International Tax CooperationOffshore TaxationTax Havens

wyszynkOne of the world’s largest beer manufacturing companies, SABMiller, has been accused of actively dodging its taxes in the developing countries where it operates, leading to nearly GBP 20 million in lowered tax revenues across the African continent.

On November 29th ActionAid, an international anti-poverty agency, launched a campaign accusing SABMiller, the world’s second largest beer company, of avoiding their full tax obligations in the developing nations where it operates, by actively structuring its operations and subsidiaries to lower the company’s overall corporate income tax obligations. While ActionAid does not contest the legality of the actions, the group protest the GBP 20 billion effect that the actions has on the economies of African nations and the fights against poverty.

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