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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Liechtenstein Sets New Voluntary Compliance Laws

August 12, 2009 Offshore BankingTaxation in EUTaxation in LiechtensteinTaxation in UK  No comments

As part of the new Liechtenstein-UK Tax Information Exchange Agreement, UK residents who hold offshore accounts in Liechtenstein will be asked to volunteer across their taxation information, or face eventual penalties.

The Tax Information Exchange Agreement (TIEA) between the United Kingdom and Liechtenstein, which was signed on the 11th of August, has an inherently new TIEA feature which sets down provisions for voluntary tax information disclosure, and a corresponding leniency program on the part of the British HM Revenue & Customs (HMRC).

The TIEA allows British account holders five years, starting in 2010, to volunteer up evidence proving that they are in communication with the HMRC, and that appropriate action has been taken in regards to their tax status...

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Indian Tax Revenue Grew

August 11, 2009 Tax HavensTaxation in India  No comments

India’s tax receipts for the April to July period grew 3.27% from the previous quarter.

According to statements released by India’s Central Board of Direct Taxes, the net direct tax take increased to Rs 739.90 billion. This figure is comprised from a 2.6% growth in the intake of corporate tax and a 4.3% rise in personal tax collection. In exact figures, corporate taxes rose from Rs 415.98 billion to Rs 426.85 billion, and personal tax collection reached Rs 312.79 billion from Rs 304.86 billion. Securities Transaction Tax also experienced a 3.5% increase in net collection, in comparison to the corresponding period of the last financial year.

While still positive, the collection is lower than expected by the Indian government...

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Call for Capital Gains Tax in New Zealand

August 10, 2009 Taxation in New Zealand  No comments

The call has once again been sounded for the introduction of a Capital Gains Tax in New Zealand.

Installing a capital gains tax system could yield benefits of up to NZ$2.7 billion to the country, $1.36 billion of which will be in the form of direct tax revenue for the Government, according to Craig Elliffe, Auckland University tax policy and law professor.

Craig Elliffe said “People pay taxes because they believe other people pay taxes,” in reference to New Zealand’s current scheme of personal taxation. According to him, it is unfair that while one individual would see a tax bill of $38,000 on their $100,000 income, another would see no taxation on the equal income earned from a property sale...

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Germany to Bring Tax Talk to the Swiss

August 7, 2009 International Tax CooperationOffshore BankingTaxation in GermanyTaxation in Switzerland  No comments

Germany will start tax agreement negotiations with Switzerland later this month in an effort to combat the ever more prominent problem of tax evasion.

Germany is looking to make some headway with the problem of German nationals utilizing Swiss banking to avoid their full tax liabilities. According to Peer Steinbrueck, German Finance minister, Germans have a “triple-digit billion-euro amount” hidden away in offshore accounts throughout the world, and Swiss bank accounts make up a significant portion of this.

Germany and Switzerland will engage in rounds of tax agreement negotiations later in August. Most likely these will work towards the signing of an OECD created Tax Information Exchange Agreement (TIEA)...

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