www.bethelfinance.com
The Cayman Islands is talking a clear stance on anti-evasion tax measures, having communicated to the UK government its commitment to join the G5 pilot on multilateral automatic exchange of information, a program initiated under the UK's G8 agenda and that will discuss hoe such an exchange of information could be implemented.
In keeping with recent joint consultations, including Cayman's approach to FATCA with the US and UK, Cayman Finance ( the private sector body representing the Cayman Islands financial services industry ) said it is pleased to support and continue to work with the Cayman Islands Government in this global fight against those who misrepresent Cayman.
Gonzalo Jalles, CEO of Cayman Finance, stated: " We are keen to work with the G5 as part of the group that will set a common standard, moving from TIEAs to a multilateral automatic exchange of information for tax purposes, and it is of particular importance to note Cayman is the only offshore jurisdiction currently committed, to working with the group that will shape the outcome of this initiative."
The multilateral element in practice is a single standard, based on the US agreements, aimed at minimising costs to business and government and the underlying policy, to implement automatic exchange of information to avoid a proliferation of multiple standards across multiple jurisdictions.
Cayman has stood at the forefront of jurisdictions that take a tough stance on tax evasion for many years, for example by implementing the European Union Saving Tax Directive, Financial Action Task Force mutual evaluation, the peer review process of the OECD Global Forum on Tax Transparency, and signing over 30 TIEAS.
Rolston Anglin, Minister for Financial Services, commented : " By joining the G5 pilot, Cayman is reaffirming its determination to sustain its robust regulatory and legal framework, and we remain committed to continually assessing and enforcing compliance in the pursuit of attracting responsible investors to Cayman."
Tuesday, April 30, 2013
Monday, April 29, 2013
Scots To Replace Stamp Duty With Progressive Tax
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The Land and Buildings Transaction Tax (Scotland) Bill is designed to address inequalities created by the "slab" structure of stamp duty thresholds.
A difference in property selling price of just £1 can lead to thousands of pounds in additional tax for the buyer.
The legislation will introduce "a proportional progressive structure" including a nil rate and at least two other bands, under which only the proportion of the price above the threshold is liable for the higher rate of tax.
The Scottish Parliament is being asked to back the general principles of the Bill in a vote.
It has already been backed by Holyrood's Finance Committee, which welcomed measures to clamp down on tax avoidance on transactions involving land and buildings in Scotland. It also called for clarity on the roles and responsibilities of two organisations involved in the tax: Revenue Scotland and Registers of Scotland.
Revenue Scotland will be set up to ensure the "efficient" and "effective" care and management of the devolved taxes, including the replacement for stamp duty, while Registers of Scotland will collect land and buildings transaction tax.
Finance Secretary John Swinney said: "Today we take a further step toward the setting and collecting of taxes in Scotland and doing so better and at less cost than the UK Government.
"Having the power to abolish stamp duty and replace it with a fairer and more progressive form of taxation has been widely welcomed and shows the importance of the Scottish Parliament having responsibility for all tax revenues in Scotland.
In taking the Land and Buildings Transaction Tax Bill through Parliament we are setting out an innovative approach to taxation that is much better aligned with Scots law and practices.
The changes we are proposing could see many people at the lower end of the housing market taken out of tax altogether, and gives us the opportunity to support first-time buyers to get on to the housing ladder and families seeking to buy bigger homes that better suit their needs.
Rather than there being a rigid stepped approach to Stamp Duty Land Tax payments as there is now, more people would pay an amount more proportionate to the value of their property."
The Land and Buildings Transaction Tax (Scotland) Bill is designed to address inequalities created by the "slab" structure of stamp duty thresholds.
A difference in property selling price of just £1 can lead to thousands of pounds in additional tax for the buyer.
The legislation will introduce "a proportional progressive structure" including a nil rate and at least two other bands, under which only the proportion of the price above the threshold is liable for the higher rate of tax.
The Scottish Parliament is being asked to back the general principles of the Bill in a vote.
It has already been backed by Holyrood's Finance Committee, which welcomed measures to clamp down on tax avoidance on transactions involving land and buildings in Scotland. It also called for clarity on the roles and responsibilities of two organisations involved in the tax: Revenue Scotland and Registers of Scotland.
Revenue Scotland will be set up to ensure the "efficient" and "effective" care and management of the devolved taxes, including the replacement for stamp duty, while Registers of Scotland will collect land and buildings transaction tax.
Finance Secretary John Swinney said: "Today we take a further step toward the setting and collecting of taxes in Scotland and doing so better and at less cost than the UK Government.
"Having the power to abolish stamp duty and replace it with a fairer and more progressive form of taxation has been widely welcomed and shows the importance of the Scottish Parliament having responsibility for all tax revenues in Scotland.
In taking the Land and Buildings Transaction Tax Bill through Parliament we are setting out an innovative approach to taxation that is much better aligned with Scots law and practices.
The changes we are proposing could see many people at the lower end of the housing market taken out of tax altogether, and gives us the opportunity to support first-time buyers to get on to the housing ladder and families seeking to buy bigger homes that better suit their needs.
Rather than there being a rigid stepped approach to Stamp Duty Land Tax payments as there is now, more people would pay an amount more proportionate to the value of their property."
Friday, April 26, 2013
Cyprus Banks: Withdrawals Double Amid Crisis
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Withdrawals in March from Cypriot banks were almost double February's total - even though its financial institutions were shut for half of the month due to a banking crisis.
Both consumers and companies pulled deposits in Cyprus, where big account holders in the two largest lenders were forced to take a hit as part of an international bailout.
Private - sector deposits fell by 3.9% to 44.6 bn euros according to European Central Bank data. Withdrawals from accounts in February were 2% up on those of January .
Banks on the southern part of the divided island were shut for nearly two weeks in March after Cyprus agreed the 10 bn euros bailout, which forced major depositors to pay part of the cost of the rescue.
In addition to Cypriot nationals, expatriate residents and Russian investors were caught up in the imposed levy. After days of negotiations, which originally included a plan to impose a levy on all account holders, those with deposits above 100,000 euros were hit with the tax.
Capital controls are still in place on the island, with limits on haw much people can transfer from their accounts. Cyprus reiterated a promise to gradually ease the financials control.
Meanwhile, in the wider eurozone, ECB executive board member Benoit Coeure said there was no undue stress on bank deposits since the Cypriot bailout.
The data backed this up - Greece recoded a 1% increase in private sector deposits to 172 bn euros, and deposits in Italian banks also rose, by 3.1% to 1.5trn euros. Deposits in Ireland recorded a 6.5% jump to 210bn euros, reaching the highest level since October 2010.
Monthly fluctuations in the figures are common, though sharp consecutive drops in countries with stable banking systems are usual.
The data, which are for all currencies combined, are not seasonally adjusted and differ slightly from national cental bank figures. They exclude deposits from central government and banks. But negativity remains in certain areas, with the ECB admitting that lending to companies is still weak.
Further uncertainty comes as the Bundesbank confirmed as genuine a leaked report prepared for Germany's constitutional court that criticises the ECB's plan to buy the debt of highly indebted states.
In this report, the German central bank warned that the purchase of stressed countries' sovereign debt could "compromise the independence of the central bank" and could be difficult to stop.
Withdrawals in March from Cypriot banks were almost double February's total - even though its financial institutions were shut for half of the month due to a banking crisis.
Both consumers and companies pulled deposits in Cyprus, where big account holders in the two largest lenders were forced to take a hit as part of an international bailout.
Private - sector deposits fell by 3.9% to 44.6 bn euros according to European Central Bank data. Withdrawals from accounts in February were 2% up on those of January .
Banks on the southern part of the divided island were shut for nearly two weeks in March after Cyprus agreed the 10 bn euros bailout, which forced major depositors to pay part of the cost of the rescue.
In addition to Cypriot nationals, expatriate residents and Russian investors were caught up in the imposed levy. After days of negotiations, which originally included a plan to impose a levy on all account holders, those with deposits above 100,000 euros were hit with the tax.
Capital controls are still in place on the island, with limits on haw much people can transfer from their accounts. Cyprus reiterated a promise to gradually ease the financials control.
Meanwhile, in the wider eurozone, ECB executive board member Benoit Coeure said there was no undue stress on bank deposits since the Cypriot bailout.
The data backed this up - Greece recoded a 1% increase in private sector deposits to 172 bn euros, and deposits in Italian banks also rose, by 3.1% to 1.5trn euros. Deposits in Ireland recorded a 6.5% jump to 210bn euros, reaching the highest level since October 2010.
Monthly fluctuations in the figures are common, though sharp consecutive drops in countries with stable banking systems are usual.
The data, which are for all currencies combined, are not seasonally adjusted and differ slightly from national cental bank figures. They exclude deposits from central government and banks. But negativity remains in certain areas, with the ECB admitting that lending to companies is still weak.
Further uncertainty comes as the Bundesbank confirmed as genuine a leaked report prepared for Germany's constitutional court that criticises the ECB's plan to buy the debt of highly indebted states.
In this report, the German central bank warned that the purchase of stressed countries' sovereign debt could "compromise the independence of the central bank" and could be difficult to stop.
Thursday, April 25, 2013
Citizenship for Russian Investors is one of attractive measures in Cyprus
www.bethelfinance.com
After bank deposits above 100,000 EUR suffered a haircut, Cyprus and its president are looking for a solution to maintain the country’s attractiveness to foreign investors. The government may soon offer EU citizenship to Russians hit by the Euro Group measures.
The president explained yesterday in a speech to Russian businesspeople in Limassol on Sunday. The Cypriot government wants to limit the impact that the measures may have on the economy and on the “Russian business community”.
Moodys, which is the agency in charge of the Cyprus anti-money laundry investigation, estimates that Russian customers have deposited a total of €31 billion in Cypriot banks. Experts believe the move of these investors will strongly diminish the country’s attractiveness for investors and that its economy will shrink dramatically.
The visa restrictions imposed on Russians, obtaining citizenship from an EU member state could indeed be an attractive proposition. The government of Cyprus is also seeking to create other measures to help keep the country attractive for investors, including tax incentives for existing or new companies that conduct business in Cyprus.
Cyprus’ forced levy or “bail-in” might become more common in future bailouts. Germany’s Sueddeutsche Zeitung has reported that Michel Barnier is preparing a law that would tap bank investors and account holders in the future before any aid would be provided by the permanent euro bailout fund.
Cyprus’s model of making people with deposits greater than €100,000 help pay for bailouts might have an influence in the whole Europe and could frighten investors away from the euro zone.
Wednesday, April 24, 2013
OECD Claims Tax Transparency Advances
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The Organization for Economic Cooperation and Development ( OECD ) has presented a progress report to the G20 nations' Finance Ministers and Central Bank Governors, reporting back on initiatives to tackle tax evasion, tax base erosion and profit shifting .
The report covers three strategic initiatives:
- Progress reported by the Global Forum on Transparency and Exchange of Information for Tax Purposes including the upcoming ratings of jurisdictions' compliance with the Global Forum's standards on exchange of information on request;
- Efforts by OECD to strengthen automatic exchange of information;
- Latest developments to address tax base erosion and profit shifting, a practice that can give multinational corporations an unfair tax advantage over domestic companies and citizens.
The Global Forum, set up in 2000 to agree global tax standards, now has 119 member countries and jurisdictions. Since 2009, when the G20 called for effective implementation of the internationally agreed standard of information exchange, the Forum has published 100 peer review reports. Most countries have completed the first phase of the reviews which looks at legal frameworks. Fourteen are not moving to the second phase due to deficiencies in their legal frameworks. After it completes a set of Phase 2 reviews, looking at effectiveness of the information exchange practices, the Global Forum will start rating countries' implementation of the standards on the basis of a four-tier classification system : "compliant", "largely compliant", "partially compliant" and "non-compliant". The results of the ratings exercise for the first set of reviews will be completed by year end, with the allocation of overall ratings to approximately 50 tax jurisdictions.
Next, relaying progress towards the development of a common model for the automatic exchange of bank information, OECD Secretary-General Angel Gurria said: " The political support for automatic exchange of information on investment income has never been greater. Luxembourg has changed its position and the US Foreign Account Tax Compliance Act legislation is triggering rapid acceptance of automatic exchange and propelling European countries to adopt this approach amongst themselves. In response to the G20 mandate to make automate exchange or information the new standard, the OECD is developing a standardized, secure and effective system of automatic exchange."
The report identifies the Multilateral Convention on Mutual Administrative Assistance in Tax Matters as the ideal legal instrument for multilateralising automatic exchange of information. Over 50 countries have either signed or committed to sign; more are expected to sign the Convention at a ceremony to be held at OECD headquarters on May 29, 2013.
The report also provide an update on the OECD's work on Base Erosion and Profit Shifting nothing that an Action Plan will be delivered to the Moscow meeting of G20 Finance Ministers meeting in July 2013.
The Organization for Economic Cooperation and Development ( OECD ) has presented a progress report to the G20 nations' Finance Ministers and Central Bank Governors, reporting back on initiatives to tackle tax evasion, tax base erosion and profit shifting .
The report covers three strategic initiatives:
- Progress reported by the Global Forum on Transparency and Exchange of Information for Tax Purposes including the upcoming ratings of jurisdictions' compliance with the Global Forum's standards on exchange of information on request;
- Efforts by OECD to strengthen automatic exchange of information;
- Latest developments to address tax base erosion and profit shifting, a practice that can give multinational corporations an unfair tax advantage over domestic companies and citizens.
The Global Forum, set up in 2000 to agree global tax standards, now has 119 member countries and jurisdictions. Since 2009, when the G20 called for effective implementation of the internationally agreed standard of information exchange, the Forum has published 100 peer review reports. Most countries have completed the first phase of the reviews which looks at legal frameworks. Fourteen are not moving to the second phase due to deficiencies in their legal frameworks. After it completes a set of Phase 2 reviews, looking at effectiveness of the information exchange practices, the Global Forum will start rating countries' implementation of the standards on the basis of a four-tier classification system : "compliant", "largely compliant", "partially compliant" and "non-compliant". The results of the ratings exercise for the first set of reviews will be completed by year end, with the allocation of overall ratings to approximately 50 tax jurisdictions.
Next, relaying progress towards the development of a common model for the automatic exchange of bank information, OECD Secretary-General Angel Gurria said: " The political support for automatic exchange of information on investment income has never been greater. Luxembourg has changed its position and the US Foreign Account Tax Compliance Act legislation is triggering rapid acceptance of automatic exchange and propelling European countries to adopt this approach amongst themselves. In response to the G20 mandate to make automate exchange or information the new standard, the OECD is developing a standardized, secure and effective system of automatic exchange."
The report identifies the Multilateral Convention on Mutual Administrative Assistance in Tax Matters as the ideal legal instrument for multilateralising automatic exchange of information. Over 50 countries have either signed or committed to sign; more are expected to sign the Convention at a ceremony to be held at OECD headquarters on May 29, 2013.
The report also provide an update on the OECD's work on Base Erosion and Profit Shifting nothing that an Action Plan will be delivered to the Moscow meeting of G20 Finance Ministers meeting in July 2013.
Tuesday, April 23, 2013
Hapoalim best Israel bank
www.bethelfinance.com
Bank Hapoalim has been selected as the best bank in Israel by the Global Finance magazine, as part of a review of the leading banks in 27 developed countries.
The magazine defined this year's winning banks of heaving " one thing in common, a focus on responding to the needs of their customers."
According the Global Finance's publisher, Joseph D. Giarraputo, "Specific market conditions certainly vary from region to region, and overall conditions for the global financial market remain difficult. These are being recognized for outstanding accomplishments in the face of adversity".
The choice was made based on a combination of objective criteria such as growth in assets, profitability, strategic relationship, customer service, competitive pricing, and innovative products - as well as the opinions of equity analysts, credit rating analysts, banking consultants and others involved in the industry.
Bank Hapoalim CEO Zion Kenan said in response, " Our new strategic plan for the next three years, wich was approved by the bank, will strengthen our ability to maintain this leadership in the future as well".
In its annual financial report published last month, Bank Hapoalim reported a 7,4% drop in its net profit, which totaled about NIS 2.54 billion ( roughly 700 USD million ). Despite the decline, the bank presented the highest profit in the Israelis banking system.
Bank Hapoalim has been selected as the best bank in Israel by the Global Finance magazine, as part of a review of the leading banks in 27 developed countries.
The magazine defined this year's winning banks of heaving " one thing in common, a focus on responding to the needs of their customers."
According the Global Finance's publisher, Joseph D. Giarraputo, "Specific market conditions certainly vary from region to region, and overall conditions for the global financial market remain difficult. These are being recognized for outstanding accomplishments in the face of adversity".
The choice was made based on a combination of objective criteria such as growth in assets, profitability, strategic relationship, customer service, competitive pricing, and innovative products - as well as the opinions of equity analysts, credit rating analysts, banking consultants and others involved in the industry.
Bank Hapoalim CEO Zion Kenan said in response, " Our new strategic plan for the next three years, wich was approved by the bank, will strengthen our ability to maintain this leadership in the future as well".
In its annual financial report published last month, Bank Hapoalim reported a 7,4% drop in its net profit, which totaled about NIS 2.54 billion ( roughly 700 USD million ). Despite the decline, the bank presented the highest profit in the Israelis banking system.
Friday, April 19, 2013
Jersey signs tax agreement with Luxembourg
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Jersey signed a comprehensive Double Taxation Agreement ( DTA ) with Luxembourg. This is the Island's eighth DTA and 39th international tax agreement that meets the OECD tax standards on transparency and information exchange.
The Double Taxation Agreement was signed at the Embassy of the Grand Duchy of Luxembourg in London by the Assistant Chief Minister with responsibility for External Relations, Senator Sir Philip Bailhache, for the Government of Jersey, and by the Charge d'Affaires, Mrs Beatrice Kirsch, for the Government of the Grand Duchy of Luxembourg.
Senator Sir Philip Bailhache said : "The signing of the Double Taxation Agreement with Luxembourg continues Jersey's firm and longstanding commitment to international standards of transparency and information exchange. Jersey also pursues a good neighbour policy in relation to the European Union and we are therefore delighted that the signing of the DTA will further strengthen our political and business relationship with an European Union Member State. The signing of a DTA with Luxembourg is particularly welcome because we have a great deal in common as international finance centres and the Agreement will serve to further strengthen what is already an important business relationship."
Jersey signed a comprehensive Double Taxation Agreement ( DTA ) with Luxembourg. This is the Island's eighth DTA and 39th international tax agreement that meets the OECD tax standards on transparency and information exchange.
The Double Taxation Agreement was signed at the Embassy of the Grand Duchy of Luxembourg in London by the Assistant Chief Minister with responsibility for External Relations, Senator Sir Philip Bailhache, for the Government of Jersey, and by the Charge d'Affaires, Mrs Beatrice Kirsch, for the Government of the Grand Duchy of Luxembourg.
Senator Sir Philip Bailhache said : "The signing of the Double Taxation Agreement with Luxembourg continues Jersey's firm and longstanding commitment to international standards of transparency and information exchange. Jersey also pursues a good neighbour policy in relation to the European Union and we are therefore delighted that the signing of the DTA will further strengthen our political and business relationship with an European Union Member State. The signing of a DTA with Luxembourg is particularly welcome because we have a great deal in common as international finance centres and the Agreement will serve to further strengthen what is already an important business relationship."
Wednesday, April 17, 2013
Corporate Tax Breaks Cost U.S. $180 Billion
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The federal deficit for this year is $845 billion, says the Congressional Budget Office. Corporate tax breaks could plug more than 20 percent of that hole, a new report says.
The Government Accountability Office’s report shows that the breaks account for $180 billion in lost revenue per year, and have more than doubled from the $84 billion that was allowed in 1987, Reuters reports. Both amounts are expressed in 2011 dollars, the GAO report says.
Offshore hoarding accounts for nearly a quarter of that sum. As we've written, Apple, Google and Microsoft have a combined $134.5 billion offshore.
Estimates suggest the total amount American businesses have stashed abroad is between $1.7 trillion and $2 trillion. (If that cash were brought home and taxed at 30 percent, the federal debt could be lowered 5 percent.)
One huge tax break corporations get is an accelerated depreciation of machinery and equipment, which amounted to a write-off of $76 billion in taxes for 2011.
There is a new effort to rework the American tax system, but it’s not clear how far it will get, Reuters says. The last major update to the tax code was in 1986. U.S. Rep. Dave Camp, R-Mich. and chairman of the House Ways and Means Committee, says any tax perk could potentially be cut.
Rep. Lloyd Doggett, D-Texas, is trying to raise penalties for hiding foreign investments and require more disclosure. Legislation he’s pushing would also make offshore cash taxable now, rather than when it’s brought back to the U.S. But Reuters calls that effort “dead on arrival.”
The federal deficit for this year is $845 billion, says the Congressional Budget Office. Corporate tax breaks could plug more than 20 percent of that hole, a new report says.
The Government Accountability Office’s report shows that the breaks account for $180 billion in lost revenue per year, and have more than doubled from the $84 billion that was allowed in 1987, Reuters reports. Both amounts are expressed in 2011 dollars, the GAO report says.
Offshore hoarding accounts for nearly a quarter of that sum. As we've written, Apple, Google and Microsoft have a combined $134.5 billion offshore.
Estimates suggest the total amount American businesses have stashed abroad is between $1.7 trillion and $2 trillion. (If that cash were brought home and taxed at 30 percent, the federal debt could be lowered 5 percent.)
One huge tax break corporations get is an accelerated depreciation of machinery and equipment, which amounted to a write-off of $76 billion in taxes for 2011.
There is a new effort to rework the American tax system, but it’s not clear how far it will get, Reuters says. The last major update to the tax code was in 1986. U.S. Rep. Dave Camp, R-Mich. and chairman of the House Ways and Means Committee, says any tax perk could potentially be cut.
Rep. Lloyd Doggett, D-Texas, is trying to raise penalties for hiding foreign investments and require more disclosure. Legislation he’s pushing would also make offshore cash taxable now, rather than when it’s brought back to the U.S. But Reuters calls that effort “dead on arrival.”
Cayman's Travers Rebukes International Misrepresentation
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The Chairman of the Cayman Islands' Stock Exchange Anthony Travers has condemned allegations made by Austria's Finance Minister Maria Fekter that the British Virgin Islands and the Cayman Islands have recieved illegitimate money flows, disinformation which is going unchallenged by G20.
Under pressure from European heads of state to adopt the automatic exchange of banking information with the rest of Europe, Austrian Finance Minister Maria Fekter sought to deflect scrutiny of the nation's banking secrecy laws by pointing out that, in her opinion, the group of twenty nations had failed to challenge the BVI and Cayman Islands, which she claimed in the past had facilitated money laundering activity.
Denouncing the comments, Travers who is also Managing Partner at law firm Travers Thorp Alberga, stated: "I am deeply troubled that the meritless attacks on the Overseas Territories by Austria's Finance Minister Fekter appear to be gaining traction. Furthermore there seems to be no contrary assertion from the UK Government and the British Chancellor Geroge Osborne as to the true position...this is an attack based on mischaracterization."
" A cursory review of the publicly available statistics under the European Saving Directive which established fully transparent proactive tax reporting shows bank deposits in Cayman of EU residents of a statistically irrelevant USD 25m."
Travers argued that : " The correct answer to Fekter should have been that the Overseas Territories already demonstrate full tax transparency. Given that the UK tax authority HM Revenue and Customs has full treaty access to Cayman accounts for UK tax purposes, the provisions of FATCA are simply duplicative, wholly unnecessary and will raise no additional revenue."
" I can speak with authority on the Cayman situation but it has not escaped my notice that Chancellor Geroge Osborne has also attacked our friends in British Virgin Islands which has similar tax transparency with the UK and the USA."
" He should know that the BVI has an extensive network of some twenty one tax information exchange agreements providing for complete tax transparency notably to HMRC and the IRS; that they are conluding the FATCA negotiation with the UK, and the US, and that they are considering moving to proactive reporting with the EU under the Directive."
" Cayman (and BVI and Bermuda) regard tax evasion as firmly off the table and yet we are continually labeled tax havens, a term that has become synonymous with illegality and wrongdoing," he continued.
" Our measures in Cayman far exceed the tax transparency available in Austria (and many other places including the US) and yet we find no rebuttal from Chancellor Osborne, rather the contrary."
Concluding, Travers stated : " One can only gaze in awe at the misinformation being promoted by a UK chancellor and wonder why he appears willing to assist the French and Germans in their avowed quest to irretrievably damage The City of London's global dominance."
The Chairman of the Cayman Islands' Stock Exchange Anthony Travers has condemned allegations made by Austria's Finance Minister Maria Fekter that the British Virgin Islands and the Cayman Islands have recieved illegitimate money flows, disinformation which is going unchallenged by G20.
Under pressure from European heads of state to adopt the automatic exchange of banking information with the rest of Europe, Austrian Finance Minister Maria Fekter sought to deflect scrutiny of the nation's banking secrecy laws by pointing out that, in her opinion, the group of twenty nations had failed to challenge the BVI and Cayman Islands, which she claimed in the past had facilitated money laundering activity.
Denouncing the comments, Travers who is also Managing Partner at law firm Travers Thorp Alberga, stated: "I am deeply troubled that the meritless attacks on the Overseas Territories by Austria's Finance Minister Fekter appear to be gaining traction. Furthermore there seems to be no contrary assertion from the UK Government and the British Chancellor Geroge Osborne as to the true position...this is an attack based on mischaracterization."
" A cursory review of the publicly available statistics under the European Saving Directive which established fully transparent proactive tax reporting shows bank deposits in Cayman of EU residents of a statistically irrelevant USD 25m."
Travers argued that : " The correct answer to Fekter should have been that the Overseas Territories already demonstrate full tax transparency. Given that the UK tax authority HM Revenue and Customs has full treaty access to Cayman accounts for UK tax purposes, the provisions of FATCA are simply duplicative, wholly unnecessary and will raise no additional revenue."
" I can speak with authority on the Cayman situation but it has not escaped my notice that Chancellor Geroge Osborne has also attacked our friends in British Virgin Islands which has similar tax transparency with the UK and the USA."
" He should know that the BVI has an extensive network of some twenty one tax information exchange agreements providing for complete tax transparency notably to HMRC and the IRS; that they are conluding the FATCA negotiation with the UK, and the US, and that they are considering moving to proactive reporting with the EU under the Directive."
" Cayman (and BVI and Bermuda) regard tax evasion as firmly off the table and yet we are continually labeled tax havens, a term that has become synonymous with illegality and wrongdoing," he continued.
" Our measures in Cayman far exceed the tax transparency available in Austria (and many other places including the US) and yet we find no rebuttal from Chancellor Osborne, rather the contrary."
Concluding, Travers stated : " One can only gaze in awe at the misinformation being promoted by a UK chancellor and wonder why he appears willing to assist the French and Germans in their avowed quest to irretrievably damage The City of London's global dominance."
Monday, April 15, 2013
Israeli finance minister set to raise deficit target
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JERUSALEM, April 14 — Israeli Finance Minister Yair Lapid is proposing to raise the 2013 deficit target from 3 to 4.2 percent of Gross Domestic Product, TheMarker economic daily reported Sunday.
The move comes as part of the minister’s plan to combat the growing deficit which has reached 11 billion U.S. dollars.
Lapid also proposed raising the target for the 2014 budget from 2.75 percent to 3.5 percent of GDP. The current deficit targets for 2013 and 2014 were already raised last year by ex-Finance Minister Yuval Steinitz.
Lapid’s move was objected by the Bank of Israel (BoI) outgoing governor Stanley Fischer, who charges that it would lower Israel’s credit and might spell financial difficulties to Israel along the road.
On Thursday, Lapid met with Prime Minister Benjamin Netanyahu to discuss the upcoming 2013-14 budget, which must be passed by June 9 by both the Israeli cabinet and the parliament. According to the proposal to Netanyahu, the budget would be cut by 4 billion dollars in 2013 and by 1.7 billion dollars in 2014.
The cuts would include reducing the allowances for children ( families with multiple children) by 0.42 billion dollars and across-the-board cuts in ministries’ spending, for example, a 1.12- billion-dollar cut in the defense ministry’s budget.
Moreover, Lapid’s chambers announced Thursday that the minister was trying not to hurt the working men and the middle class and said he would increase taxes for the rich, specifically those owning luxury homes and cars.
However, economy experts called the move populist, saying it would only yield 141 million dollars, tenth of the amount needed to cover the deficit.
Talks between the finance ministry and the prime minister’s office will resume on Sunday to discuss possible alternatives to the formation of the budget. The government must vote in favor of the budget by May 5 and then it will be voted in the parliament.
Friday, April 12, 2013
BVI slams leaks as 'illicit'
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ROAD TOWN, BVI -- The government of the British Virgin Islands has called an investigation by the International Consortium of Investigative Journalists (ICIJ) into the British overseas territory "illicit" and is investigating how the group obtained information on BVI companies.
According to BVI Premier and Finance Minister Dr Orlando Smith, the BVI authorities are actively investigating how this private information has been illicitly obtained and used to attack the BVI financial services industry, which operates compliantly within international guidelines and the law, the South China Morning Post reported.
The names of thousands of owners of secret offshore companies are currently being published by the Washington-based International Consortium of Investigative Journalists (ICIJ), in collaboration with the Guardian newspaper and other international media.
This follows the leak to ICIJ of a hard drive containing 200GB of internal files of offshore incorporation agencies in the BVI, Singapore and the Cook Islands.
In one of the biggest information leaks in history, more than two million documents naming many individuals and detailing their financial dealings through offshore accounts were made available to the US-based ICIJ.
The group has been making public bits of the information it has obtained, which has sparked worldwide reaction from governments and politicians.
Britain’s prime minister David Cameron has come under pressure to act against the secretive offshore industry at June's G8 summit, as leaked evidence continued to mount that politicians and tycoons from all over the world have used the BVI to hide funds.
A senior Liberal Democrat said the leaks showed the secret haven of the BVI "stains the face of Britain", as anti-corruption campaigners called for action.
"How can David Cameron keep a straight face calling for the G8 to make big business pay tax when we let the BVI use British law and British protection to suck in billions in dirty money?" said Lord Oakeshott, a former Treasury spokesman.
Robert Palmer of the campaign group Global Witness repeated the call for Cameron to act, saying, "The massive cache of leaked documents demonstrates how hidden ownership of shell companies facilitates corruption, tax dodging and other crimes."
On Tuesday, the European Commission announced an action plan to combat tax fraud and evasion. Britain, France, Germany, Italy and Spain agreed to co-operate on a pilot information exchange system to catch tax dodgers.
French President Francois Hollande has called for the eradication of tax havens and ordered French banks to declare all their subsidiaries, the BBC reported. He said his government would set up a central agency to fight fraud and corruption.
Smith said the leak was an isolated incident. "There is no indication of contagion or that the breach was systemic. Also, no breach of BVI official databases has occurred," he said.
Smith said in his statement: "While the overwhelming majority of persons use international financial centres for legitimate purposes, there are those that will abuse the system. Where wrongdoing is discovered, appropriate enforcement action is and will be taken. We continually review our legislative regime to ensure transparency, co-operation and compliance with international standards."
The BVI recently announced its commitment to concluding Foreign Account Tax Compliance Act negotiations with the US Treasury and entering a similar arrangement with Britain.
ROAD TOWN, BVI -- The government of the British Virgin Islands has called an investigation by the International Consortium of Investigative Journalists (ICIJ) into the British overseas territory "illicit" and is investigating how the group obtained information on BVI companies.
According to BVI Premier and Finance Minister Dr Orlando Smith, the BVI authorities are actively investigating how this private information has been illicitly obtained and used to attack the BVI financial services industry, which operates compliantly within international guidelines and the law, the South China Morning Post reported.
The names of thousands of owners of secret offshore companies are currently being published by the Washington-based International Consortium of Investigative Journalists (ICIJ), in collaboration with the Guardian newspaper and other international media.
This follows the leak to ICIJ of a hard drive containing 200GB of internal files of offshore incorporation agencies in the BVI, Singapore and the Cook Islands.
In one of the biggest information leaks in history, more than two million documents naming many individuals and detailing their financial dealings through offshore accounts were made available to the US-based ICIJ.
The group has been making public bits of the information it has obtained, which has sparked worldwide reaction from governments and politicians.
Britain’s prime minister David Cameron has come under pressure to act against the secretive offshore industry at June's G8 summit, as leaked evidence continued to mount that politicians and tycoons from all over the world have used the BVI to hide funds.
A senior Liberal Democrat said the leaks showed the secret haven of the BVI "stains the face of Britain", as anti-corruption campaigners called for action.
"How can David Cameron keep a straight face calling for the G8 to make big business pay tax when we let the BVI use British law and British protection to suck in billions in dirty money?" said Lord Oakeshott, a former Treasury spokesman.
Robert Palmer of the campaign group Global Witness repeated the call for Cameron to act, saying, "The massive cache of leaked documents demonstrates how hidden ownership of shell companies facilitates corruption, tax dodging and other crimes."
On Tuesday, the European Commission announced an action plan to combat tax fraud and evasion. Britain, France, Germany, Italy and Spain agreed to co-operate on a pilot information exchange system to catch tax dodgers.
French President Francois Hollande has called for the eradication of tax havens and ordered French banks to declare all their subsidiaries, the BBC reported. He said his government would set up a central agency to fight fraud and corruption.
Smith said the leak was an isolated incident. "There is no indication of contagion or that the breach was systemic. Also, no breach of BVI official databases has occurred," he said.
Smith said in his statement: "While the overwhelming majority of persons use international financial centres for legitimate purposes, there are those that will abuse the system. Where wrongdoing is discovered, appropriate enforcement action is and will be taken. We continually review our legislative regime to ensure transparency, co-operation and compliance with international standards."
The BVI recently announced its commitment to concluding Foreign Account Tax Compliance Act negotiations with the US Treasury and entering a similar arrangement with Britain.
Grenada and Barbados prime ministers discuss regional issues
www.bethelfinance.com
ST GEORGE'S, Grenada - Grenada's Prime Minister Dr Keith Mitchell met on Wednesday in Bridgetown with his Barbadian counterpart Freundel Stuart, where they discussed issues on the regional agenda for the upcoming CARICOM heads of government summit in Trinidad this July.
It was the first meeting between the two since they were elected in general elections in their respective countries in February.
Mitchell was in Barbados on Wednesday to present the annual David Thompson Lecture at the Cave Hill Campus of the University of the West Indies.
He was due to speak on the issue of science and technology, as Grenada resumes its lead role on the issue among CARICOM states.
The lecture series is held in the name of the late Barbadian leader, whom Stuart succeeded after he succumbed to cancer while in office in 2010.
Mitchell was due to deliver the lecture at 7 pm, but scheduled a series of meetings following his arrival in Bridgetown on Wednesday morning, including one with Stuart.
Key among issues discussed between the two leaders were regional integration, as it relates to the OECS countries; the overall financial situation in the region, including a resolution on the situation with CLICO Financial -- the former giant, but now-liquidated financial conglomerate based in Trinidad.
As has been his mantra since assuming office, Mitchell again pledged to engage aggressively with regional stakeholders including governments, social and private sectors in resolving the fiscal crisis.
ST GEORGE'S, Grenada - Grenada's Prime Minister Dr Keith Mitchell met on Wednesday in Bridgetown with his Barbadian counterpart Freundel Stuart, where they discussed issues on the regional agenda for the upcoming CARICOM heads of government summit in Trinidad this July.
It was the first meeting between the two since they were elected in general elections in their respective countries in February.
Mitchell was in Barbados on Wednesday to present the annual David Thompson Lecture at the Cave Hill Campus of the University of the West Indies.
He was due to speak on the issue of science and technology, as Grenada resumes its lead role on the issue among CARICOM states.
The lecture series is held in the name of the late Barbadian leader, whom Stuart succeeded after he succumbed to cancer while in office in 2010.
Mitchell was due to deliver the lecture at 7 pm, but scheduled a series of meetings following his arrival in Bridgetown on Wednesday morning, including one with Stuart.
Key among issues discussed between the two leaders were regional integration, as it relates to the OECS countries; the overall financial situation in the region, including a resolution on the situation with CLICO Financial -- the former giant, but now-liquidated financial conglomerate based in Trinidad.
As has been his mantra since assuming office, Mitchell again pledged to engage aggressively with regional stakeholders including governments, social and private sectors in resolving the fiscal crisis.
Thursday, April 11, 2013
Jersey Financial Sector Vacancies On The Rise
www.bethelfinance.com/rm
Jersey Finance has noted the most recent findings of Jersey's Labour Market Survey, which reveals that around a quarter of total current private sector vacancies in Jersey are in the finance sector, despite more than 2,000 people reportedly still seeking work.
While the results of the Survey suggest a gap between skills and vacancies, the finance industry remains Jersey's biggest employer, with the number of job opportunities available within the industry providing a positive indication of its strength and growth potential.
Jersey Finance has a well-established Education Programme. With a remit to address current and future gaps in the skillset of Jersey's financial services workforce, Jersey Finance regularly assists with training support of the unemployed, helps coordinate industry input into a locally delivered degree in financial services and organises a comprehensive financial services education programme for schools.
As well as working closely with Careers Jersey, Skills Jersey, Highlands College and the Jersey International Business School, Jersey Finance also receives a significant and growing amount of engagement from member firms. In March this year, Jersey Finance in partnership with Back to Work run and induction day for their Advanced Admin/Finance scheme where ten member firms took part in hosting organisational tours, running sector talks and mock interviews. In additions, a new report on the future of Jersey's finance industry will provide further direction on the long-term importance of education and training to support an evolving financial services sector. Skills Jersey are also planning to work in partnership with Jersey Finance to carry out a finance industry skills survey in 2013.
Geoff Cook, CEO Jersey Finance said:
"It's a challenging environment for all businesses in terms of job creation, so the fact that there are a number of vacancies currently available within the finance industry should be seen as an opportunity by keen job seekers who have the right attitude and who are prepared to learn new skills. In fact, the anecdotal evidence from firms is that in terms of jobs available, the landscape is very positive, with a broad range of junior and experienced roles on offer.
The expertise and specialist skills of its workforce have long been the foundation of Jersey's finance industry and this will continue to be the case. With many firms having re-structured their operations as a result of the financial downturn, there is now a collaborative focus from government and the industry, particularly on school leavers and graduates, to ensure the next generation has the right skills for an evolving industry.
The links the finance industry have developed with government bodies regarding initiatives such as Advance to work and Advance Plus as well as programmes developed with educational organisations are proving particularly invaluable in offering appropriate training and helping to up-skill the local workforce."
Jersey Finance has noted the most recent findings of Jersey's Labour Market Survey, which reveals that around a quarter of total current private sector vacancies in Jersey are in the finance sector, despite more than 2,000 people reportedly still seeking work.
While the results of the Survey suggest a gap between skills and vacancies, the finance industry remains Jersey's biggest employer, with the number of job opportunities available within the industry providing a positive indication of its strength and growth potential.
Jersey Finance has a well-established Education Programme. With a remit to address current and future gaps in the skillset of Jersey's financial services workforce, Jersey Finance regularly assists with training support of the unemployed, helps coordinate industry input into a locally delivered degree in financial services and organises a comprehensive financial services education programme for schools.
As well as working closely with Careers Jersey, Skills Jersey, Highlands College and the Jersey International Business School, Jersey Finance also receives a significant and growing amount of engagement from member firms. In March this year, Jersey Finance in partnership with Back to Work run and induction day for their Advanced Admin/Finance scheme where ten member firms took part in hosting organisational tours, running sector talks and mock interviews. In additions, a new report on the future of Jersey's finance industry will provide further direction on the long-term importance of education and training to support an evolving financial services sector. Skills Jersey are also planning to work in partnership with Jersey Finance to carry out a finance industry skills survey in 2013.
Geoff Cook, CEO Jersey Finance said:
"It's a challenging environment for all businesses in terms of job creation, so the fact that there are a number of vacancies currently available within the finance industry should be seen as an opportunity by keen job seekers who have the right attitude and who are prepared to learn new skills. In fact, the anecdotal evidence from firms is that in terms of jobs available, the landscape is very positive, with a broad range of junior and experienced roles on offer.
The expertise and specialist skills of its workforce have long been the foundation of Jersey's finance industry and this will continue to be the case. With many firms having re-structured their operations as a result of the financial downturn, there is now a collaborative focus from government and the industry, particularly on school leavers and graduates, to ensure the next generation has the right skills for an evolving industry.
The links the finance industry have developed with government bodies regarding initiatives such as Advance to work and Advance Plus as well as programmes developed with educational organisations are proving particularly invaluable in offering appropriate training and helping to up-skill the local workforce."
Wednesday, April 10, 2013
Positive 2012 For Manx Shipping Registry
www.bethelfinance.com
The Manx Shipping Registry continued to thrive in 2012, finishing the year on a new high of 15 million Gross Registered Tonnes, an increase of over 8% year-on-year, according to its annual report.
The Isle of Man is home to one of the world's fastest growing registries, averaging tonnage growth of 11% over the past few years. Although the total number of ships on the register has remained relatively static for the past few years, at approximately 1,050, the workload for registrars has increased significantly, dealing with around 10 new registrations each month, and various other filings.
The Registry has seen significant growth from Asia in particular. Since 2009, more than 20 vessels operated from Singapore have registered under the Isle of Man ensign, representing around 12% of Manx Gross Registered Tonnes (1.7m). Recognizing Singapore as a strategic location for the Registry, in April of 2012 the Isle of Man established a representative office in Singapore, and exhibited for the second time at the Singapore Yacht Show, as well as events in China and Japan.
Other key highlights for the Registry in 2012 included that it retained its important ISO 9001/2008 accreditation with flying colours in November. The Registry hit all is quality targets in respect of the fleet performance during the year, maintaining white list positions on the Paris and Tokyo memoranda of understanding for Port State Control, and its accreditation under the United States' Coast Guard's Qualship 21 program which recognizes "quality" states.
The International Chamber of Shipping's Flag State Performance Table for 2012 recognized the Isle of Man as continuing to have positive indicators in all categories, positioning it as one of twelve flag states, of a total of 111, to have achieved a "clean sheet."
For the Registry, 2012 saw the final steps taken to achieve compliance with the Maritime Labour Convention 2008. The Registry announced that it is now close to concluding the necessary legislative amendments to the island's regime to have an appropriate regulatory framework in place when the Convention enters into force in August 2013.
By the end of 2012 the Registry had carried out 10 Maritime Labour Convention inspections on Isle of Man registered vessels and most of the Ship Registry's office-based surveyors are now qualified to carry out Maritime Labour Convention inspections. The Registry has acknowledged that with 530 Maritime Labour Convention inspections yet to be completed, 2013 is shaping up to be a busy year both for shipowners and Isle of Man surveyors.
The Manx Shipping Registry continued to thrive in 2012, finishing the year on a new high of 15 million Gross Registered Tonnes, an increase of over 8% year-on-year, according to its annual report.
The Isle of Man is home to one of the world's fastest growing registries, averaging tonnage growth of 11% over the past few years. Although the total number of ships on the register has remained relatively static for the past few years, at approximately 1,050, the workload for registrars has increased significantly, dealing with around 10 new registrations each month, and various other filings.
The Registry has seen significant growth from Asia in particular. Since 2009, more than 20 vessels operated from Singapore have registered under the Isle of Man ensign, representing around 12% of Manx Gross Registered Tonnes (1.7m). Recognizing Singapore as a strategic location for the Registry, in April of 2012 the Isle of Man established a representative office in Singapore, and exhibited for the second time at the Singapore Yacht Show, as well as events in China and Japan.
Other key highlights for the Registry in 2012 included that it retained its important ISO 9001/2008 accreditation with flying colours in November. The Registry hit all is quality targets in respect of the fleet performance during the year, maintaining white list positions on the Paris and Tokyo memoranda of understanding for Port State Control, and its accreditation under the United States' Coast Guard's Qualship 21 program which recognizes "quality" states.
The International Chamber of Shipping's Flag State Performance Table for 2012 recognized the Isle of Man as continuing to have positive indicators in all categories, positioning it as one of twelve flag states, of a total of 111, to have achieved a "clean sheet."
For the Registry, 2012 saw the final steps taken to achieve compliance with the Maritime Labour Convention 2008. The Registry announced that it is now close to concluding the necessary legislative amendments to the island's regime to have an appropriate regulatory framework in place when the Convention enters into force in August 2013.
By the end of 2012 the Registry had carried out 10 Maritime Labour Convention inspections on Isle of Man registered vessels and most of the Ship Registry's office-based surveyors are now qualified to carry out Maritime Labour Convention inspections. The Registry has acknowledged that with 530 Maritime Labour Convention inspections yet to be completed, 2013 is shaping up to be a busy year both for shipowners and Isle of Man surveyors.
Monday, April 8, 2013
Israel to Return to One-Year State Budgeting
www.bethelfinance.com/rm
Israel will abandon the two-year budget format initiated by the previous government and return to one-year planning for spending, Finance Minister Yair Lapid announced today.
The next budget will cover a 17-month transitional period from mid-2013 through 2014 after parliamentary elections delayed the current proposal, Lapid said in a statement today.
Lapid, appointed finance minister three weeks ago after the Yesh Atid party he founded unexpectedly came in second in January’s election, must cut billions of shekels from government-promised funding to reduce the deficit to less than 3 percent of gross domestic product. The Bank of Israel is forecasting the deficit at 3.6 percent of GDP for this year.
“The considerable gap between two-year forecasts and actual government revenue led the economy to the deep overdraft that we are currently facing,” Lapid said. “Building a one- year work plan will narrow the margin of error between forecasts and actual revenue.”
Yael Andorn, a former deputy budget director, will serve as director general of the Finance Ministry, Nilly Richman, a spokeswoman for Lapid, said by telephone today. Andorn will be the ministry’s first female director general in the country’s 65-year history.
The two-year budget format was initiated for 2009 and 2010 by former Finance Minister Yuval Steinitz. Steinitz, who is currently serving as Minister of International Relations, said the two-year format was more efficient and allowed the government time to work on other issues besides spending allocations and taxes.
Israel will abandon the two-year budget format initiated by the previous government and return to one-year planning for spending, Finance Minister Yair Lapid announced today.
The next budget will cover a 17-month transitional period from mid-2013 through 2014 after parliamentary elections delayed the current proposal, Lapid said in a statement today.
Lapid, appointed finance minister three weeks ago after the Yesh Atid party he founded unexpectedly came in second in January’s election, must cut billions of shekels from government-promised funding to reduce the deficit to less than 3 percent of gross domestic product. The Bank of Israel is forecasting the deficit at 3.6 percent of GDP for this year.
“The considerable gap between two-year forecasts and actual government revenue led the economy to the deep overdraft that we are currently facing,” Lapid said. “Building a one- year work plan will narrow the margin of error between forecasts and actual revenue.”
Yael Andorn, a former deputy budget director, will serve as director general of the Finance Ministry, Nilly Richman, a spokeswoman for Lapid, said by telephone today. Andorn will be the ministry’s first female director general in the country’s 65-year history.
The two-year budget format was initiated for 2009 and 2010 by former Finance Minister Yuval Steinitz. Steinitz, who is currently serving as Minister of International Relations, said the two-year format was more efficient and allowed the government time to work on other issues besides spending allocations and taxes.
Thursday, April 4, 2013
Singapore Looks At International Tax Issues
www.bethelfinance.com
In her speech to the recent Asia-Pacific Regional Tax Conference in Singapore, Teo Josephine, Minister of State for Finance and Transport, discussed taxation issues in the region that are important to businesses, including double taxation agreements( DTAs) and trasfer pricing.
She pointed out how Singaporean companies are internationalizing their businesses. In 1990, Singapore's cumulative stock of foreign direct investment (FDI) abroad was about SGD16 bn (USD 12,9 bn) and, by 2000, had only grown to about SGD100 bn. However, in the last decade, that FDI has grown quickly to reach over SGD400 bn, with inward FDI totaling just over SGD650 bn.
Asia accounts for more than half of Singapore's FDI abroad, and, as of end of 2011, the top three outbound investment destinations for Singaporean companies within Asia were China, Malaysia and Indonesia, which together accounted for 60%.
With more Singaporean businesses internationalizing, Josephine Teo confirmed that cross-border business transactions and investment activities have also increased in volume. More companies have foreign sources of income and are subject to tax rules in more than one tax jurisdiction.
To overcome possible instances of double taxation, she also confirmed that Singapore has developed a wide DTA network, to facilitate cross-border businesses by providing greater tax certainty and by reducing the cost of doing business both in Singapore and overseas. To date, Singapore has signed 74 comprehensive DTAs, and is still looking to expand that network.
However, she noted that " treaties alone are not enough and implementation matters just as much. Tax authorities worldwide have increased their enforcement activities to ensure that transfer prices have not been set to avoid tax. With the imposition of stricter penalties and documentation requirements, as well as increased audit activities, transfer pricing has now become a leading risk management issue for cross-border businesses."
In Singapore, if in doubt, she added, businesses can approach the Inland Revenue Authority of Singapore to seek upfront tax certainty on their pricing arrangements through Advance Pricing Arrangements. Where necessary, the Inland Revenue Authority of Singapore also helps businesses resolve cross-border transfer pricing disputes through Mutual Agreement Procedures with Singapore's treaty partners.
From 2007 to March this year, Inland Revenue Authority of Singapore has concluded 10 transfer pricing cases under a Mutual Agreement Procedures, and 27 bilateral Advance Pricing Arrangements involving seven other jurisdictions.
" Businesses will be pleased to know that Inland Revenue Authority of Singapore intends to deepen its transfer pricing capability to assist businesses with cross-border transfer pricing issues," Josephine Teo concluded. " We support cross-border businesses that are engaged in activities with real economic substance. General anti-avoidance provisions in our tax regime are set up to prevent abusive business transactions, and to ensure that our corporate sector remains healthy and robust."
In her speech to the recent Asia-Pacific Regional Tax Conference in Singapore, Teo Josephine, Minister of State for Finance and Transport, discussed taxation issues in the region that are important to businesses, including double taxation agreements( DTAs) and trasfer pricing.
She pointed out how Singaporean companies are internationalizing their businesses. In 1990, Singapore's cumulative stock of foreign direct investment (FDI) abroad was about SGD16 bn (USD 12,9 bn) and, by 2000, had only grown to about SGD100 bn. However, in the last decade, that FDI has grown quickly to reach over SGD400 bn, with inward FDI totaling just over SGD650 bn.
Asia accounts for more than half of Singapore's FDI abroad, and, as of end of 2011, the top three outbound investment destinations for Singaporean companies within Asia were China, Malaysia and Indonesia, which together accounted for 60%.
With more Singaporean businesses internationalizing, Josephine Teo confirmed that cross-border business transactions and investment activities have also increased in volume. More companies have foreign sources of income and are subject to tax rules in more than one tax jurisdiction.
To overcome possible instances of double taxation, she also confirmed that Singapore has developed a wide DTA network, to facilitate cross-border businesses by providing greater tax certainty and by reducing the cost of doing business both in Singapore and overseas. To date, Singapore has signed 74 comprehensive DTAs, and is still looking to expand that network.
However, she noted that " treaties alone are not enough and implementation matters just as much. Tax authorities worldwide have increased their enforcement activities to ensure that transfer prices have not been set to avoid tax. With the imposition of stricter penalties and documentation requirements, as well as increased audit activities, transfer pricing has now become a leading risk management issue for cross-border businesses."
In Singapore, if in doubt, she added, businesses can approach the Inland Revenue Authority of Singapore to seek upfront tax certainty on their pricing arrangements through Advance Pricing Arrangements. Where necessary, the Inland Revenue Authority of Singapore also helps businesses resolve cross-border transfer pricing disputes through Mutual Agreement Procedures with Singapore's treaty partners.
From 2007 to March this year, Inland Revenue Authority of Singapore has concluded 10 transfer pricing cases under a Mutual Agreement Procedures, and 27 bilateral Advance Pricing Arrangements involving seven other jurisdictions.
" Businesses will be pleased to know that Inland Revenue Authority of Singapore intends to deepen its transfer pricing capability to assist businesses with cross-border transfer pricing issues," Josephine Teo concluded. " We support cross-border businesses that are engaged in activities with real economic substance. General anti-avoidance provisions in our tax regime are set up to prevent abusive business transactions, and to ensure that our corporate sector remains healthy and robust."
Wednesday, April 3, 2013
Canada-Panama Free Trade Agreement In Force
www.bethelfinance.com
Canadian Ministerfor International Trade, Ed Fast has welcomed the entry into force of the Canada-Panama free trade agreement on April 1, 2013, eliminating more than 90% of Panamanian tariffs on Canadian exports.
Fast said : " Canada's Economic Action Plan, with its focus on creating jobs, growth and long-term prosperity in every region of our country, includes opening new markets that increase Canadian exports."
" Starting today, this historic agreement will benefit Canadian exporters by immediately eliminating tariffs on more than 90% of Canadian goods exported to Panama. Workers and businesses in a wide range of Canadian sectors, such as aerospace, pharmaceuticals, pulp and paper and agriculture and agri-food, will benefit from talking Canada's trading relationship with Panama to the next level.
" The trading relationship between Canada and Panama continues to grow by leaps and bounds, heaving increased by 62% in less than four years," added Diane Ablonczy, Canadian's Minister of State for Foreign Affairs. " This agreement is further proof of our Government's commitment to a robust presence in the Americas that increases economic opportunities for Canadians and delivers real benefits and prosperity for people throughout our hemisphere."
In less than six years, the Canadian Government has concluded free trade agreements with 9 countries: Panama, Peru, Honduras, Colombia, Jordan and European Trade Association member states of Iceland, Norway, Liechtenstein and Switzerland. In addition, Canada is engaged in ongoing free trade negotiations with the European Union, Japan, India and members of the Trans-Pacific Partnership- Brunei, Chile, Australia, Mexico, Malaysia, Peru, New Zealand, USA, Vietnam and Singapore.
Canadian Ministerfor International Trade, Ed Fast has welcomed the entry into force of the Canada-Panama free trade agreement on April 1, 2013, eliminating more than 90% of Panamanian tariffs on Canadian exports.
Fast said : " Canada's Economic Action Plan, with its focus on creating jobs, growth and long-term prosperity in every region of our country, includes opening new markets that increase Canadian exports."
" Starting today, this historic agreement will benefit Canadian exporters by immediately eliminating tariffs on more than 90% of Canadian goods exported to Panama. Workers and businesses in a wide range of Canadian sectors, such as aerospace, pharmaceuticals, pulp and paper and agriculture and agri-food, will benefit from talking Canada's trading relationship with Panama to the next level.
" The trading relationship between Canada and Panama continues to grow by leaps and bounds, heaving increased by 62% in less than four years," added Diane Ablonczy, Canadian's Minister of State for Foreign Affairs. " This agreement is further proof of our Government's commitment to a robust presence in the Americas that increases economic opportunities for Canadians and delivers real benefits and prosperity for people throughout our hemisphere."
In less than six years, the Canadian Government has concluded free trade agreements with 9 countries: Panama, Peru, Honduras, Colombia, Jordan and European Trade Association member states of Iceland, Norway, Liechtenstein and Switzerland. In addition, Canada is engaged in ongoing free trade negotiations with the European Union, Japan, India and members of the Trans-Pacific Partnership- Brunei, Chile, Australia, Mexico, Malaysia, Peru, New Zealand, USA, Vietnam and Singapore.
Tuesday, April 2, 2013
Gibraltar Finalizing EU Corporate Tax Talks
www.bethelfinance.com/rm
Minor amendments will be required of Gibraltar's Income Tax legislation to bring it in line with international best standards as assessed by the European Union's Code of Conduct Group of Business Taxation, Gibraltar's Chief Minister Fabian Picardo has said.
Speaking to reports in Brussels, Picardo was quoted by the Gibraltar Chronicle as saying : " I believe we are literally at the stage of final tweaking of words in an amendment that may affect one or two sections of the Income Tax Act. I therefore expect that we will very shortly be putting a final draft to officials in the Code Group for an informal view. From the indications that we have, it will likely be a favorable one."
The Code of Conduct Group's assessment follows shortly on the heels of scrutiny of the Guernsey,Jersey and the Isle of Man's zero-ten corporate tax regimes, which concluded with separate but identical rulings that their deemed distribution provisions were "harmful." The provisions in question ensure that tax is paid on individuals' holdings in profit-making companies as their respective holdings appreciate. Under the regime, "deemed distribution" is presumed by the government and individual income tax is liable on the amount irrespective of whether a distribution has in fact been disbursed to the shareholder.
It is anticipated that after making the changes deemed necessary to its tax regime, Gibraltar's corporate tax framework-as in the case of Jersey, Guernsey and the Isle of Man - will be formally endorsed by the Code of Conduct Group and subsequently European Finance Ministers, but not before, Picardo anticipates, a "politically-motivated" challenge from Spain.
Minor amendments will be required of Gibraltar's Income Tax legislation to bring it in line with international best standards as assessed by the European Union's Code of Conduct Group of Business Taxation, Gibraltar's Chief Minister Fabian Picardo has said.
Speaking to reports in Brussels, Picardo was quoted by the Gibraltar Chronicle as saying : " I believe we are literally at the stage of final tweaking of words in an amendment that may affect one or two sections of the Income Tax Act. I therefore expect that we will very shortly be putting a final draft to officials in the Code Group for an informal view. From the indications that we have, it will likely be a favorable one."
The Code of Conduct Group's assessment follows shortly on the heels of scrutiny of the Guernsey,Jersey and the Isle of Man's zero-ten corporate tax regimes, which concluded with separate but identical rulings that their deemed distribution provisions were "harmful." The provisions in question ensure that tax is paid on individuals' holdings in profit-making companies as their respective holdings appreciate. Under the regime, "deemed distribution" is presumed by the government and individual income tax is liable on the amount irrespective of whether a distribution has in fact been disbursed to the shareholder.
It is anticipated that after making the changes deemed necessary to its tax regime, Gibraltar's corporate tax framework-as in the case of Jersey, Guernsey and the Isle of Man - will be formally endorsed by the Code of Conduct Group and subsequently European Finance Ministers, but not before, Picardo anticipates, a "politically-motivated" challenge from Spain.
Lapid said: I won't let Israel become Cyprus or Greece
www.bethelfinance.com
Finance minister vows to ensure the middle class would cease carrying the burden of budget cuts on their shoulders; adds if the middle class is not protected the economy will come to a halt and the deficit will grow.
Painful cuts would have to be made in order to close the budget deficit of NIS 30 billion, but the middle class would not carry those cuts on their shoulders, Finance Minister Yair Lapid said on Monday, on his Facebook page.
In a lengthy post Lapid described a meeting that he held recently at the Finance Ministry where he told the gathered bureaucrats that their job "was not to balance Excel spreadsheets but rather to help Mrs. Cohen."
Ricky Cohen, Lapid explained, is a 37-year-old high school teacher from Hadera with three children. Ricky and her husband who works in hi-tech earn a little over NIS 20,000 a month.
Lapid said that Mrs. Cohen represented the Israeli middle class who works and pays taxes and carries "the weight of the entire Israeli economy on its back."
Mr. Lapid wrote that he encouraged the bureaucrats in the ministry to think of ways to help Mrs. Cohen "improve her quality of life, decrease her cost of living, and make her feel that her taxes are really working for her."
The finance minister echoed a statement that he made on his Facebook page last week, saying that slashing the deficit would involve difficult decisions. Referring to Israel's Mediterranean neighbors who have undergone economic crises, Lapid added that he had to make those difficult decisions because he was not prepared that on his watch Israel would reach the same harsh economic situation as in Greece and Cyprus.
Meretz MK Esawi Freige criticized the finance minister, saying Lapid was being presumtuous about the earnings of the country's middle class. " It seems That an income of NIS 20,000 really is not a lot of money for Yair Lapid and his millionaire friends," Freige said.
Freige added that a family earning NIS 20,000 a month is not considered middle class, it is far from it. " The average income for an Israeli houshold is around 10,000 NIS a month, and the majority of Israeli employees earn NIS 6,000 a month," he said.
Freige said, Lapid ought to break out of his bubble, take a look around the country and meet with Israeli communities of all types-not just with the wealthy in North Tel Aviv.
Last month the finance minister posted a statement on his Facebook page in which he stated that " it's time to deal with the overdraft," adding that he would devote his first year on the job to decreasing it. Dealing with it sooner rather than later would ensure that the painful cuts would not last as long, Lapid said.
Finance minister vows to ensure the middle class would cease carrying the burden of budget cuts on their shoulders; adds if the middle class is not protected the economy will come to a halt and the deficit will grow.
Painful cuts would have to be made in order to close the budget deficit of NIS 30 billion, but the middle class would not carry those cuts on their shoulders, Finance Minister Yair Lapid said on Monday, on his Facebook page.
In a lengthy post Lapid described a meeting that he held recently at the Finance Ministry where he told the gathered bureaucrats that their job "was not to balance Excel spreadsheets but rather to help Mrs. Cohen."
Ricky Cohen, Lapid explained, is a 37-year-old high school teacher from Hadera with three children. Ricky and her husband who works in hi-tech earn a little over NIS 20,000 a month.
Lapid said that Mrs. Cohen represented the Israeli middle class who works and pays taxes and carries "the weight of the entire Israeli economy on its back."
Mr. Lapid wrote that he encouraged the bureaucrats in the ministry to think of ways to help Mrs. Cohen "improve her quality of life, decrease her cost of living, and make her feel that her taxes are really working for her."
The finance minister echoed a statement that he made on his Facebook page last week, saying that slashing the deficit would involve difficult decisions. Referring to Israel's Mediterranean neighbors who have undergone economic crises, Lapid added that he had to make those difficult decisions because he was not prepared that on his watch Israel would reach the same harsh economic situation as in Greece and Cyprus.
Meretz MK Esawi Freige criticized the finance minister, saying Lapid was being presumtuous about the earnings of the country's middle class. " It seems That an income of NIS 20,000 really is not a lot of money for Yair Lapid and his millionaire friends," Freige said.
Freige added that a family earning NIS 20,000 a month is not considered middle class, it is far from it. " The average income for an Israeli houshold is around 10,000 NIS a month, and the majority of Israeli employees earn NIS 6,000 a month," he said.
Freige said, Lapid ought to break out of his bubble, take a look around the country and meet with Israeli communities of all types-not just with the wealthy in North Tel Aviv.
Last month the finance minister posted a statement on his Facebook page in which he stated that " it's time to deal with the overdraft," adding that he would devote his first year on the job to decreasing it. Dealing with it sooner rather than later would ensure that the painful cuts would not last as long, Lapid said.
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