The International Tax Blog looks at some of the key developments around the world this week…
The world watched closely this week as Scotland voted against independence from the United Kingdom’s 307-year union. Following a week of last-minute campaigning in a hotly-contested referendum, U.K. Prime Minister David Cameron has promised new powers over tax, spending and welfare, to “honour in full” a pre-referendum pledge devolving more powers to Scotland.
The Organization for Economic Cooperation and Developmentreleased its comprehensive plan for creating an agreed set of international rules for fighting base erosion and profit shifting by multinationals. Governments welcomed the OECD proposals, which will close loopholes through a number of measures including transfer pricing rules.
Finance ministers from 10 European Union countries tried to push forward plans to adopt a financial transactions tax with a tentative agreement on issuance rules, but remained divided on the scope, especially concerning derivatives, as political commitment remains an issue.
Swiss bank UBS AG awaits to hear the verdict on whether it must post a 1.1 billion euro ($1.4 billion) bond to cover a potential criminal penalty for alleged money laundering. It is already paying a 10 million euro ($13 million) fine for lax controls that may have enabled tax dodging, following French President Francois Hollande's crackdown on tax evasion.
Banks, insurance companies and other financial service firms could face significantly increased value-added tax bills following a European Court of Justice ruling that backed a challenge by the Swedish tax authorities against the U.S.-based subsidiary of Swedish-based financial conglomerate Skandia. It was held that EU VAT law allowing a company and its subsidiaries to be treated as a single taxpayer doesn't apply to those branches if they are based outside the EU.
Budget announcements this week came from the Netherlands on reducing the tax burden on labor; Finland proposed changes in income, corporate and excise tax laws; and Iceland lowered value-added tax rates and abolished commodity taxes.
Malaysia’s Prime Minister announced that tax reforms in April 2015 to introduce the goods and services tax will be imperative, as the sales and service tax is no longer fit for the country’s rapidly growing economy. Currently only one in 10 pay personal income tax and 40 percent of the government’s revenue comes from finite oil and gas resources.
For more information on these developments and other international tax news, sign up for a free trial of the Premier International Tax Library.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)