EU to Fight VAT Tax Evasion

August 19, 2009 Taxation in EU  No comments

The European Union has called for steps to be taken by its member states in order to fight Value Added Tax fraud.

In an effort to reduce Value Added Tax (VAT) fraud, the European Union has urged its member states to increase inter-jurisdiction cooperation. In an effort to foster this, the European Commission has proposed a new set of protocols under which information can be shared between countries within the European Union.

The primary development in the proposition is the establishment of Eurofisc. This is a proposed system under which its member states will be able to quickly share taxation information. The aim is to create a system whereby taxation fraud is reacted to in a timely manner and also prevent the proliferation of future tax fraud schemes...

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Cayman Islands Reach White List Status

August 18, 2009 Offshore BankingTaxation in Cayman IslandsTaxation in New Zealand  No comments

With its twelfth Tax Information Exchange Agreement signed, the Cayman Islands will be now be placed on the OECD white list of countries.

The Cayman Islands and New Zealand signed a Tax Information Exchange Agreement (TIEA) on the 13th of August. This agreement brings the total for the Cayman Islands to twelve, enough to be considered by Organization for Economic Co-Operation and Development to be part of the jurisdictions that have substantially implemented the internationally agreed tax standards, otherwise known as the “OECD White List”.

The announcement came on the same day as news of the British Virgin Islands also reaching white list status...

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British Virgin Islands to Reach OECD White List

August 17, 2009 International Tax CooperationOffshore BankingTaxation in British Virgin IslandsTaxation in New Zealand  No comments

The British Virgin Islands now have the twelve Tax Information Exchange Agreement signatures required to achieve ranking on the OECD “white list” of countries.

The British Virgin Islands will soon join the ranks of 47 countries that the Organization for Economic Cooperation and Development (OECD) has deemed to have “substantially implemented the internationally agreed tax standards”. The move comes with the signing of the 12th Tax Information Exchange Agreement (TIEA) for the British Virgin Islands, the partner of which was New Zealand.

At the signing ceremony, Ralph O’Neal, Premier of the British Virgin Islands, said “The conclusion of this TIEA demonstrates the commitment of both the BVI and the New Zealand governments to the OECD principles of transparency and effective exchange...

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India Consider Corporate Tax Cuts

August 14, 2009 Taxation in India  No comments

The Indian Government has proposed lowering corporate tax rates, abolishing equity trading tax and funding it all by improving tax compliance.

In an effort to raise net tax collection, the Indian government is proposing further changes to their taxation system. Spearheading the new bout of changes is the idea of lowering corporate tax rates to 25% from their current 30%. This would be the lowest corporate tax rate ever seen in India. Proposals of abolishing taxation on equity trades had also been floated. The changes are being introduced for the sole purpose of spurning on the Indian economy.

The funding for these tax cuts will come from increased efforts to improve taxation compliance, especially in personal taxation...

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UBS and US Reach Settlement

August 13, 2009 International Tax CooperationOffshore BankingTaxation in SwitzerlandTaxation in USA  No comments

The Swiss bank UBS has reached a settlement deal with the US Government regarding allegations of tax evasion.

An out-of-court settlement has been brokered between the US Government, on behalf of the US Internal Revenue Service, and the Swiss Bank UBS. Exact details of the agreement have not yet been revealed, and are not promised until the final agreements are signed by all involved parties. At the moment the settlement sits as an “initialed agreement”. According to Ken Rubestein, senior partner at law firm Rubinstein & Rubinstein in New York, “This means the deal is effectively done” and “Signing is just a technicality; they are doing the final read-through just to be sure.”

Speculation of the exact nature of the settlement has been rife, and will continue to be so until its annou...

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