US Senate Considering Carried Interest Proposal

April 14, 2010 Taxation in USA

_MG_0429Sources within the US State Senate have confirmed that new legislation is being considered which could effectively double the tax liability on profits earned by hedge-fund and private-equity managers.

On April 13th Senator Charles Schumer, member of the US Senate Finance Committee and serving New York Democrat, revealed that a proposal to instate “Carried Interest” legislation was “on the table” before the Finance Committee. Under current laws, the cut of profits taken by private-equity fund executives is treated as capital gains, and taxed at 15 percent. If passed, the Carried Interest proposal will re-classify these earnings as ordinary incomes to be levied at 35 percent, effectively more than doubling the current tax liability.

The US House of Representatives has previously appr...

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Switzerland Considering New Bank Taxes

April 13, 2010 Taxation in Switzerland

It's all 'bout the money IIThe Swiss Government is currently investigating the possibility of implementing new tax measures for banks, levied on risk and excessive employee-bonus payments.

A Swiss Parliamentary committee is currently examining proposals on how to lower risk-taking and add extra stability to the nation’s banking sector. The committee is due to submit a final report with its recommendations before April 23rd. While most measures discussed within the report are expect to be revealed only upon its final release, two possible taxation measures have been announced early. The committee is investigating a proposal to implement a tax on bonuses issued to bank workers, as already implemented in the UK...

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UK Passes New Bribery Laws

April 12, 2010 International Tax CooperationTaxation in UK

House of Lords ChamberThe UK House of Commons and House of Lords have passed an extensive new set of laws reforming an outdated set of legislations concerning bribery, its definitions and prescribed legal punishments.

On March 9th the long-awaited Bribery Act was passed, and has been hailed as the most significant reform to corporate criminal law seen in the UK this century. The new act replaces the UK’s previous anti-corruption and bribery laws, which are commonly considered to be too fragmented and antiquated to be applicable in the modern business environment.

The Bribery Act recognizes and categorizes bribery between active offenses, passive offenses, bribery of Foreign Public Officials (FPO), and corporate offenses...

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Estonia’s Tax Ration Increases

April 9, 2010 Taxation in Estonia

Foreboding Estonian ParliamentIn 2009 Estonia’s overall tax ratio was 36 percent of Gross Domestic Product (GDP), rising by 4 percent compared to the previous year.

According to recent research released by Statistics Estonia (SE), due primarily to a significant increase in indirect tax collection in 2009, the overall national tax ratio increased by 4 percent of GDP. Overall, collection of direct taxes fell by 3 percent compared to 2008. Collection of indirect taxes increased by 2-3 percent compare to the indicators of last decade. Indirect Taxes collection, comprised of Value Added Tax (VAT) and Excise Duty, accounted for EEK 32 billion of the national collection total, while direct taxes, taxes of wealth and income, contributed EEK 16 billion.

According to the EU statistics office Eurostat, in the fourth quarter of ...

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US DOJ Publishes Tax Prosecution Results

April 9, 2010 Offshore BankingOffshore TaxationTax HavensTaxation in USA

US Department of JusticeThe US Department of Justice (DOJ) has revealed its results and successes for the 2009 year in fighting tax fraud, scams and offshore tax evasion.

On March 7th the US DOJ issued a press release detailing the “highlights” of its tax enforcement efforts for the 2009 financial year. Throughout the year the DOJ successfully defended the Inland Revenue Service (IRS) from USD 665 million in tax refund claims; collected in excess of USD 260 million from affirmative litigation actions; obtained 135 guilty pleas and subsequent convictions in tax based crime trials; and participated in sentencing of 133 defendants of tax crimes...

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