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Oct 012014

The West Australian

The Federal Government is under pressure to target Australian companies that are using a who’s who of international tax havens to avoid paying their share of tax.

Despite the Government focusing on multinational firms and their tax minimisation strategies, a report suggests Australia has its own problems, with some of the nation’s biggest firms paying less than 10 in the dollar in tax.

Last week, the G20, which is chaired by Australia this year, vowed to tackle tax evasion and avoidance by multinationals, revealing a series of plans including a requirement that companies reveal exactly where they make profits and how much tax they pay in individual nations.

Much of the focus was on multinational firms, especially IT giants such as Google and Apple.

But a report by the Tax Justice Network and the United Voice union shows companies on the ASX200 have created thousands of subsidiary firms that are based in known tax havens.

According to the network, 72 of the top 200 listed firms are using 269 subsidiaries in Singapore and 55 are using subsidiaries based in Hong Kong.

Other well known tax havens used by big firms include the British Virgin Islands, Jersey, Luxembourg, the Cayman Islands, Bermuda and Switzerland.

The network estimated at least $80 billion in tax revenue between 2004 and last year had been lost because of the use of the tax havens.

Twenty-First Century Fox, which for the period covered by the report includes News Corporation, has 117 subsidiaries, including 25 in the Virgin Islands and 19 in Mauritius.

See the article here:
Firms accused of tax dodges



S.Korean private sectors' investment in tax havens increases / YTN
[YTN ] http://www.ytn.co.kr/_pn/1207_201409291027195738 Investment in tax havens by South Korean firms and individuals over the past seven years amounted…

By: ytnnews24

Originally posted here:
S.Korean private sectors’ investment in tax havens increases / YTN – Video

Sep 302014

Video will begin in 5 seconds.

Bill Shorten accuses the government during Tuesday’s question time of going soft on corporate tax avoidance; Tony Abbott says Labor did nothing in government.

The Abbott government was warned that the Australian Tax Office was ill-equipped to tackle a potential multibillion-dollar international tax dodge as it prepared to cut 3000 ATO staff.

At a time when Treasurer Joe Hockey is touting Australia’s efforts in conjunction with the G20 to close international tax loopholes, the Tax Office no longer has a dedicated team to fighting the problem.

Understaffed: An independent report has raised serious concerns about an exodus of experienced staff from the ATO, creating difficulties in dealing with corporate tax avoidance. Photo: Andrew Quilty

A report by the independent Inspector-General of Taxation has raised serious concerns about an exodus of experienced staff from the ATO at a time when money flowing between Australian companies and their foreign subsidiaries has topped $270 billion a sum that equates to more than half of the Commonwealth Budget.

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Sources close to the ATO told Fairfax Media many of the ATO’s most experienced staff in tracking international profits have moved to the big four accounting firms, where they now advise the nation’s biggest companies on how to minimise their tax.

Inspector-General Ali Noroozi warned government the loss of key ATO experts in so-called “transfer pricing” posed risks to Commonwealth revenue.

The issue of transfer pricing and the use of tax havens was raised in a report, revealed by Fairfax Media on Monday, which became a focus of debate during question time on Tuesday, with the government and opposition accusing each other of failing to close corporate tax loopholes.

More:
Tax office 'not up to job'

Sep 302014

Video will begin in 5 seconds.

Bill Shorten accuses the government during Tuesday’s question time of going soft on corporate tax avoidance; Tony Abbott says Labor did nothing in government.

The Abbott government was warned that the Australian Tax Office was ill-equipped to tackle a potential multibillion-dollar international tax dodge as it prepared to cut 3000 ATO staff.

At a time when Treasurer Joe Hockey is touting Australia’s efforts in conjunction with the G20 to close international tax loopholes, the Tax Office no longer has a dedicated team to fighting the problem.

Understaffed: An independent report has raised serious concerns about an exodus of experienced staff from the ATO, creating difficulties in dealing with corporate tax avoidance. Photo: Andrew Quilty

A report by the independent Inspector-General of Taxation has raised serious concerns about an exodus of experienced staff from the ATO at a time when money flowing between Australian companies and their foreign subsidiaries has topped $270 billion a sum that equates to more than half of the Commonwealth Budget.

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Sources close to the ATO told Fairfax Media many of the ATO’s most experienced staff in tracking international profits have moved to the big four accounting firms, where they now advise the nation’s biggest companies on how to minimise their tax.

Inspector-General Ali Noroozi warned government the loss of key ATO experts in so-called “transfer pricing” posed risks to Commonwealth revenue.

The issue of transfer pricing and the use of tax havens was raised in a report, revealed by Fairfax Media on Monday, which became a focus of debate during question time on Tuesday, with the government and opposition accusing each other of failing to close corporate tax loopholes.

See the original post here:
Tax Office 'not up to the job'

LETTERS

“It is not for the Australian Tax Office to ‘man up’ as there needs to be a legislative power for it to do so.” Photo: Jeffrey Chan

It is no wonder that 60 per cent of the ASX 200 companies use tax havens (“Big business ‘shirks’ fair share of tax load”, September 29). They are simply following the example set by Australia’s $100 billion Future Fund. This fund invests overseas using 47 tax haven entities it owns, and three it does not own 50 all up.

The Future Fund pays no Australian income tax, just GST and FBT. Joe Hockey has stated that the Future Fund is following its own environmental, social and governance (ESG) guidelines, and is operating within the framework of the principle of sovereign immunity (the state cannot commit a legal wrong). The government’s concerns with multinationals using tax havens appears to be a case of “do as I say, don’t do as I do”. Sovereign funds are not of a higher moral order than an ordinary corporation.

Bill Johnstone Marrickville

Illustration: michaelmucci.com

I’ve tried to believe that sacking workers improves a company’s “productivity”. That flogging public assets to private profit makers will improve their “efficiency”. That it’s fair for executive salary growth to have outstripped mine by a factor of 30-plus. That because my tax now funds the profit-making projects of “private contractors, commercial-in-confidence”, rather than public works, it’s none of my business how it’s spent. I’ve tried to believe that my little boat will rise on the tide of collective growth even as it trickles down and forms a bigger slice of cake for all. If I ask how the free market can grant James Packer’s casino a 50-year, publicly underwritten profit-or-compo safety net but can’t even guarantee how many casual hours I’ll be rostered on tomorrow, I’m told I’m “economically illiterate”, a leaner, entitled, playing class warfare. Tax? Last year, the ATO found resources enough to bill me an extra $600, annual salary of $55,000. Guess illiterate me stuffed the sums on the back of my envelope at the kitchen table.

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Don’t want the economists running my country any more, please. Isn’t working. Isn’t fair. Isn’t Australian.

Jack Robertson Birchgrove

Read more from the original source:
Advance Australia on unfair tax sidesteps

Australia’s top companies have been unswayed by a global crackdown on corporate tax avoidance, with almost 60 per cent of the top 200 listed companies holding subsidiaries in tax havens or low-tax jurisdictions.

Data also shows some companies that promised to get out of tax havens have actually added to their offshore subsidiaries.

Several big-name companies, such as 21st Century Fox, Westfield, Toll Holdings and Telstra, have more than 40 entities in well-known tax havens such asthe Cayman Islands, Luxembourg, the British Virgin Islands and Bermuda, a report by the Tax Justice Network shows.

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Fourteen in the 20 top companies, including two of the country’s big banks, also hold entities in these locations, according to the report.

The report also reveals nearly a third of the ASX 200 are now paying less than 10 per cent tax on profit compared to the statutory corporate tax rate of 30 per cent.

“Secrecy jurisdictions play a key role in multinational tax dodging and undermine the ability of democratically elected governments to levy taxes in a just and fair way,” the reports authors say. “Corporate tax avoidance must be addressed.”

While hubs in low-tax jurisdictions such as Singapore and Hong Kong are commonly used for legitimate business, the report highlights how Australian companies are relying on hubs in far more exotic locations.

Bermuda and Jersey, with tax rates of 0 per cent, are home to 119 entities belonging to top 200 Australian companies. The British Virgin Islands is home to 77.

Commonwealth Bank appears to have extended its network of haven companies.

Original post:
Global crackdown on tax havens fails to sway Australian companies

Wesfarmers chief executive Richard Goyder. Photo: Tony McDonough

Wesfarmers managing director Richard Goyder has hit out at companies that don’t pay sufficient tax in Australia, and called on multinational corporations “to pay tax in the communities in which they operate”.

Mr Goyder, chairman of the B20 summit of the world’s biggest corporations, says companies that avoid paying taxes will end up damaging their reputations, as community sentiment turns against the use of tax havens and profit shifting to avoid taxes.

“I think the conversation will head from whether [tax avoidance] is legal to whether it is ethical, and I think that change in debate is right” said Mr Goyder.

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“Wesfarmers derives income and profits from the communities in which it operates, in Australia and New Zealand, and it’s fair that we pay tax in those countries. It’s absolutely appropriate that we pay our tax.”

Earlier this year Fairfax Media revealed insignificant rates of taxation paid by Google, Apple and Ikea on Australian-derived revenue.

“People in communities are within their rights to say ‘company XYZ is selling its products here and making its profits here but they are not paying tax, so what’s going on’? ” Mr Goyder said.

“My personal view is that the tax issue will become a bigger one for companies, and will go directly to their reputation. You are starting to see that happen now and, frankly, I think it should.”

Wesfarmers is the biggest private employer in Australia, with more than 200,000 staff. It owns the Coles, Bunnings, Target, Kmart and Officeworks retail operations, as well as significant agriculture and mining interests, and boasts more than 500,000 shareholders.

Originally posted here:
Aussie boss hits out at tax-dodging rivals

Wesfarmers chief executive Richard Goyder. Photo: Tony McDonough

Wesfarmers managing director Richard Goyder has hit out at companies that don’t pay sufficient tax in Australia, and called on multinational corporations “to pay tax in the communities in which they operate”.

Mr Goyder, chairman of the B20 summit of the world’s biggest corporations, says companies that avoid paying taxes will end up damaging their reputations, as community sentiment turns against the use of tax havens and profit shifting to avoid taxes.

“I think the conversation will head from whether [tax avoidance] is legal to whether it is ethical, and I think that change in debate is right” said Mr Goyder.

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“Wesfarmers derives income and profits from the communities in which it operates, in Australia and New Zealand, and it’s fair that we pay tax in those countries. It’s absolutely appropriate that we pay our tax.”

Earlier this year Fairfax Media revealed insignificant rates of taxation paid by Google, Apple and Ikea on Australian-derived revenue.

“People in communities are within their rights to say ‘company XYZ is selling its products here and making its profits here but they are not paying tax, so what’s going on’? ” Mr Goyder said.

“My personal view is that the tax issue will become a bigger one for companies, and will go directly to their reputation. You are starting to see that happen now and, frankly, I think it should.”

Wesfarmers is the biggest private employer in Australia, with more than 200,000 staff. It owns the Coles, Bunnings, Target, Kmart and Officeworks retail operations, as well as significant agriculture and mining interests, and boasts more than 500,000 shareholders.

Read more:
Wesfarmers boss hits out at tax-dodging rivals

Wesfarmers chief executive Richard Goyder. Photo: Tony McDonough

Wesfarmers managing director Richard Goyder has hit out at companies that don’t pay sufficient tax in Australia, and called on multinational corporations “to pay tax in the communities in which they operate”.

Mr Goyder, chairman of the B20 summit of the world’s biggest corporations, says companies that avoid paying taxes will end up damaging their reputations, as community sentiment turns against the use of tax havens and profit shifting to avoid taxes.

“I think the conversation will head from whether [tax avoidance] is legal to whether it is ethical, and I think that change in debate is right” said Mr Goyder.

Advertisement

“Wesfarmers derives income and profits from the communities in which it operates, in Australia and New Zealand, and it’s fair that we pay tax in those countries. It’s absolutely appropriate that we pay our tax.”

Earlier this year Fairfax Media revealed insignificant rates of taxation paid by Google, Apple and Ikea on Australian-derived revenue.

“People in communities are within their rights to say ‘company XYZ is selling its products here and making its profits here but they are not paying tax, so what’s going on’? ” Mr Goyder said.

“My personal view is that the tax issue will become a bigger one for companies, and will go directly to their reputation. You are starting to see that happen now and, frankly, I think it should.”

Wesfarmers is the biggest private employer in Australia, with more than 200,000 staff. It owns the Coles, Bunnings, Target, Kmart and Officeworks retail operations, as well as significant agriculture and mining interests, and boasts more than 500,000 shareholders.

Continue reading here:
CEO hits out at tax-dodging rivals

Almost a third of Australia’s largest companies are paying less than 10 in the dollar in corporate tax, a report that exposes a gaping hole in government revenues over the past decade shows.

As Australia prepares to host world leaders at the G20 summit in Brisbane in November, where a global assault on tax avoidance will be discussed, the report found 84 per cent of Australia’s top 200 stockmarket-listed companies pay less than the 30 per cent company tax rate.

Some, among them household names such as James Hardie, do not contribute a dollar to Australian coffers, it found.

Tax minimisation by large companies far outweighs that of small- and medium-sized businesses and has a disproportionately large effect on eroding the tax base.

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”Tackling corporate tax avoidance is an urgent priority; Australia does not have a spending problem, it has a revenue problem and it must be fixed,” says Who Pays for Our Common Wealth?, prepared by the union United Voice and the Tax Justice Network – a group of charities, unions and churches.

The 90-page look at tax contributions of the S&P/ASX 200 between 2004 and last year claims up to $80 billion in tax was forgone in that period. That could all but wipe out the past two budget deficits.

It details the widespread and growing use of subsidiaries in tax havens and so-called ”thin capitalisation”, where local entities are saddled with huge debts to reduce tax liabilities in Australia.

Almost 60 per cent of the ASX 200 declare subsidiaries in tax havens. For example, global broadcaster 21st Century Fox has 117 and logistics group Toll Holdings 72 in low-tax jurisdictions.

Nearly a third of companies have an average ”effective tax rate” of 10 per cent or less. James Hardie pays an effective rate of 0 per cent tax, Sydney Airport 2 per cent and Echo Entertainment – owner of

Continued here:
Big business 'shirks' fair share of tax load

EXCLUSIVE

Almost a third of Australia’s largest companies are paying less than 10 in the dollar in corporate tax, according to a report that exposes a gaping hole in government revenues over the past decade.

As Australia prepares to host world leaders at the G20 summit in Brisbane in November, where a global assault on tax avoidance will be a key topic of discussion, the report found 84 per cent of Australia’s top 200 stockmarket-listed companies pay less than the 30 per cent company tax rate.

Advertisement

Some companies, including household names like James Hardie, do not contribute a dollar to Australian coffers, it found.

Tax minimisation by large companies far outweighs that of small and medium-sized businesses and has a disproportionately large effect on eroding the tax base.

“Tackling corporate tax avoidance is an urgent priority; Australia does not have a spending problem, it has a revenue problem and it must be fixed,” write the authors of the report,Who Pays For Our Common Wealth?

The 90-page look at the the tax contributions of the S&P/ASX 200 between 2004 and 2013 the first research of its kind attempted claims up to $80 billion was foregone by the taxman over that period; a sum of money that could all but wipe out the government’s past two budget deficits.

It details the widespread and growing use of subsidiaries in tax havens and so-called “thin capitalisation”, where local entities are saddled with huge debts to reduce tax liabilities in Australia.

Almost 60 per cent of the ASX 200 declare subsidiaries in tax havens. For example, global broadcaster 21st Century Fox has 117 and logistics group Toll Holdings 72 in low-tax jurisdictions, including Bermuda, the British Virgin Islands and Singapore.

View original post here:
How top firms are paying zero tax

EXCLUSIVE

Almost a third of Australia’s largest companies are paying less than 10 in the dollar in corporate tax, according to a report that exposes a gaping hole in government revenues over the past decade.

As Australia prepares to host world leaders at the G20 summit in Brisbane in November, where a global assault on tax avoidance will be a key topic of discussion, the report found 84 per cent of Australia’s top 200 stockmarket-listed companies pay less than the 30 per cent company tax rate.

Advertisement

Some companies, including household names like James Hardie, do not contribute a dollar to Australian coffers, it found.

Tax minimisation by large companies far outweighs that of small and medium-sized businesses and has a disproportionately large effect on eroding the tax base.

“Tackling corporate tax avoidance is an urgent priority; Australia does not have a spending problem, it has a revenue problem and it must be fixed,” write the authors of the report,Who Pays For Our Common Wealth?

The 90-page look at the the tax contributions of the S&P/ASX 200 between 2004 and 2013 the first research of its kind attempted claims up to $80 billion was foregone by the taxman over that period; a sum of money that could all but wipe out the government’s past two budget deficits.

It details the widespread and growing use of subsidiaries in tax havens and so-called “thin capitalisation”, where local entities are saddled with huge debts to reduce tax liabilities in Australia.

Almost 60 per cent of the ASX 200 declare subsidiaries in tax havens. For example, global broadcaster 21st Century Fox has 117 and logistics group Toll Holdings 72 in low-tax jurisdictions, including Bermuda, the British Virgin Islands and Singapore.

Originally posted here:
ASX 200 company tax avoidance bleeds Commonwealth coffers of billions a year, report finds

(MENAFN – QNA) South Korean companies and individuals invested nearly US23 billion in 50 tax havens over the past seven years, data showed Sunday.

According to the data by the National Tax Service and the Export-Import Bank of Korea, South Korean individuals and companies invested 22.77 billion in the tax havens from 2007 through 2013.

The amount represents about 12% of overall overseas investments made by South Korea worth 197.88 trillion won about (US189.4 billion) during the period, according to South Korea’s (Yonhap) News Agency.

Of the tax haven investments, 79.6% were made by big local companies, while 9.6% were made by small and mid-sized companies.

The money going to the tax havens has been on the rise since 2009 when the country was hit by the fallout of the 2008 financial crisis, coming in at 5.41 trillion won in 2013.

The ratio of the tax haven investment to South Korea’s overall overseas investment rose to 17.4% last year from 8% in 2007.

Conglomerates contributed the most to the increase, the lawmaker who demanded the data said.

“The rise in the investment to tax havens was due mostly to local big companies’ increased investment (there),” Rep. Oh Jae-sae of the main opposition New Politics Alliance for Democracy said. “We need to keep closer tabs on their move to use the tax havens as it could lead to tax evasion.”

Read the original post:
S. Koreans, Firms Invest nearly US$23 Billion in Tax Havens

EXCLUSIVE

Almost a third of Australia’s largest companies are paying less than 10 in the dollar in corporate tax, according to a report that exposes a gaping hole in government revenues over the past decade.

As Australia prepares to host world leaders at the G20 summit in Brisbane in November, where a global assault on tax avoidance will be a key topic of discussion, the report found 84 per cent of Australia’s top 200 stockmarket-listed companies pay less than the 30 per cent company tax rate.

Advertisement

Some companies, including household names like James Hardie, do not contribute a dollar to Australian coffers, it found.

Tax minimisation by large companies far outweighs that of small and medium-sized businesses and has a disproportionately large effect on eroding the tax base.

“Tackling corporate tax avoidance is an urgent priority; Australia does not have a spending problem, it has a revenue problem and it must be fixed,” write the authors of the report,Who Pays For Our Common Wealth?

The 90-page look at the the tax contributions of the S&P/ASX 200 between 2004 and 2013 the first research of its kind attempted claims up to $80 billion was foregone by the taxman over that period; a sum of money that could all but wipe out the government’s past two budget deficits.

It details the widespread and growing use of subsidiaries in tax havens and so-called “thin capitalisation”, where local entities are saddled with huge debts to reduce tax liabilities in Australia.

Almost 60 per cent of the ASX 200 declare subsidiaries in tax havens. For example, global broadcaster 21st Century Fox has 117 and logistics group Toll Holdings 72 in low-tax jurisdictions, including Bermuda, the British Virgin Islands and Singapore.

More here:
How the top firms are paying zero tax



02 – Corporate taxation – 03 – Transfer pricing and tax havens.webm
02 – The demand curve – 06 – Inferior goods clarification.webm.

By: Free Education

Read more:
02 – Corporate taxation – 03 – Transfer pricing and tax havens.webm – Video

President Barack Obama's announced crackdown on what he calls an unpatriotic move by US corporations to shift their headquarters and tax bills to low-tax countries is raising the question of why the US simply doesn't cut its corporate tax rates to better compete with the likes of Ireland and other tax havens. In fact, everyone in Washington actually says they want to lower and simplify US …

See the rest here:
Everyone wants corp tax overhaul, but….

Left-wing allies of Mayor de Blasio have come up with a new way to tax the rich by going after nonresidents who buy expensive co-ops and condos that they seldom use.

The liberal Fiscal Policy Institute on Monday proposed a tax of up to 4 percent on 1,556 pied–terres worth more than $5 million each. The tax would generate $665 million a year, the group said.

The mayors office quickly said it was reviewing the proposal.

De Blasios previous attempt to increase taxes on the citys wealthiest residents was shot down in Albany, which would also have to approve the condo-tax plan.

But the new targets of the tax hikers include many foreigners who dont vote.

The graduated tax would start at 0.5 percent for properties valued at $5 million to $6 million, and max out at 4 percent for units valued at more than $25 million.

State Sen. Brad Hoylman (D-Manhattan) is introducing a bill to enact the tax Tuesday.

In his report, institute director James Parrott said absentee owners of expensive condos and co-ops should be targeted because they dont pay local income tax.

The owners bid up the price of New York City residential real estate, and since they dont spend much time in these use units, contribute little to the local economy compared to full-time residents, he said.

Brooklyn City Councilman Brand Lander, the deputy policy leader, embraced the tax on extremely wealthy foreigners, saying many use their properties as tax havens.

See the article here:
Fiscal Policy Institute proposes tax on luxe pied–terres

There has been scarcely a peep out of Ottawa since last winters promise to crack down on companies that stash their cash in offshore tax havens.

The silence was particularly acute last week, when the OECD (Organization of Economic Cooperation and Development) came out with a seven-point action plan to prevent multinational corporations from using low-tax or no-tax jurisdictions to hide their assets. Canada was one of the countries that called loudest for a co-ordinated international approach. But when the Paris-based agency delivered its blueprint, there was no acknowledgement from Canadas finance minister, revenue minister or any other member of the federal cabinet.

Catching tax cheaters was a Conservative priority when the late Jim Flaherty delivered his 10th and final budget last February. He affirmed the governments determination to combat international tax evasion and aggressive tax avoidance. That followed his 2013 to change the Income Tax Act to flush out businesses that hid their assets abroad. In 2012 he closed several tax loopholes that allowed Canadian companies to set up shell companies and create partnerships in offshore tax havens.

But the governments ardour seems to have cooled lately.

The OECDs Sept. 16 report identifying actions countries can take right now to stem the outflow of taxable income should have been welcomed in Ottawa. Canada cant tackle this issue alone. It is a global problem; one that will grow as technology becomes more sophisticated and persist until nations take collective action.

But harmonizing tax international standards has become politically awkward for Prime Minister Stephen Harper.

Under his government, Canada has reduced its corporate income tax rate to the lowest level in the G7. Harper boasts about this achievement, claiming it brings in foreign investment, spurs growth and creates jobs. He will undoubtedly use that sales pitch in next falls election.

Aligning Canadas corporate taxes with those of other countries would undercut its advantage as investment magnet. Participating in an internationally transparent system of corporate taxation, as the OECD proposes, would allow voters to see who is paying for Ottawas deficit-elimination drive.

There is a second complication. The tax department is quietly reducing its efforts to hunt down multinationals that use overseas tax havens. Canada Revenue Agency (CRA) hasnt announced any wind-down but its corporate business plan for the years 2014-2017 shows a decrease in the share of its budget allocated to offshore compliance.

According to the Professional Institute of the Public Service of Canada, which represents the 7,000 auditors employed by CRA, the government has begun disbanding many of the international teams it set up 18 months ago. Fifty senior tax auditors who led overseas enforcement teams have been told their jobs will be eliminated. The department is shifting its staff to accommodate Ottawas new flavour-of-the-month: cracking down on charities that engage in political activities.

Link:
Tory crackdown on tax evasion lost in a fog: Goar

Changes to Irelands controversial Double Irish tax regime for foreign companies based here could be implemented in next months budget, Jobs Minister Richard Bruton has signalled.

Amid pressure from the OECD to close a loophole in the tax code that allows foreign firms pay less tax, Mr Bruton said concerns would be addressed in the budget on October 14. Ireland needed to move prudently, he said.

The OECD have their work half done so we need to consider their report and see what changes we might make at this stage.

The organisations report last week proposed sweeping changes to tax structures for multinationals, including measures to curb corporate tax avoidance, improve transparency, frustrate tax havens and close down loopholes.

Byzantine tax structures for foreign firms here have come under the spotlight, with the US senate suggesting in 2012 that giant firms like Microsoft saved billions of dollars using Irish subsidiaries.

Head of tax at the OECD, Pascal Saint-Amans, told one weekend newspaper it would make sense to introduce changes in this budget.

Asked by RTs the Week in Politics if the Double Irish would be scrapped in the budget, Mr Bruton said:

Companies have used some difference between our code and other codes, just as theyve used differences between many other countries.

All countries needed to act together, he added.

He said work by the OECD which will be completed next year needed to be accelerated.

Read the original here:
Double Irish tax loophole may close

Multinationals such Google and Apple should find it harder to shield their profits from tax from 2016.

G20 finance ministers meeting in Cairns this weekend welcomed progress towards finalising measures that will crack down on multinational tax avoidance and promised to wrap-up the job by the end of next year.

The Organisation for Economic Cooperation Development (OECD) is working on a 15-point plan to ensure multinationals pay tax on all their profits somewhere. That involves eliminating rorts such as the “double Irish, Dutch sandwich” that have been used by multinationals including Google and Apple to syphon profits to tax havens.

The OECD completed its recommendations on the first seven points of the action plan earlier this month. They deal with technical issues such as hybrid mismatches, transfer payments and tax treaty abuse.

The G20 ministers welcomed that progress in Cairns. However, consultancy PwC said the recommendations were not formally ratified at the meeting because some details may need to be tweaked in the light of the ongoing work on the remaining eight points of the action plan.

“Businesses will need to take action, in some cases urgent action, both to comply with new requirements and to consider the ways in which they do business in different countries,” PwC said.

A new global reporting standard that will make it easier for national tax collectors to automatically share information on where multinationals are reporting their profits was endorsed by finance ministers in Cairns.

They said in a communique issued on Sunday that the standard would result in a step-change in their ability to tackle and deter cross-border tax evasion. “We will begin exchanging information automatically between each other and with other countries [from] 2017, subject to the completion of necessary legislative procedures,” the communique said.

British-based charity Oxfam said some progress had been achieved in Cairns but it was concerned “transformative changes to rebalance the global tax system” were off the agenda.

Oxfam Australia policy manager Jo Pride said “tax-dodging” by multinationals drained about US$100 billion from developing countries each year and clearer commitments were needed on how developing countries would get an equal say in global tax reform.

See the article here:
G20 to crackdown on multinational tax avoidance



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