News Briefs for October 20, 2016

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

News Briefs for October 20, 2016

China cropped

The latest transfer pricing news includes the updated Chinese APA programme, Indonesian plans for a lower tax rate, and UK concerns on proposed penalties.



China APA structure revised

   The State Administration of Taxation has issued guidelines on the administration of advance pricing agreements, according to KPMG.

   The rules require more detailed preparation from taxpayers prior to the formal application acceptance but still follow the six stage application process as the 2009 arrangement, including pre-filing meeting, intention, analysis and appraisal, formal application, negotiation and signing, and supervision of implementation.

   Announcement 64 will be effective from December 1 2016. Any APA applications that have not been formally accepted before that date will be considered under the new rules.

Indonesia to attract multinationals with lower tax rate

   Indonesian President Joko Widodo has said the next step to attract foreign direct investment to his country is to lower tax rates and simplify the tax system.

   In an interview with the Wall Street Journal, Widodo said he is considering lowering Indonesia’s tax rate to 17% to compete with neighbouring financial-hub Singapore. He also suggested making one of Indonesia’s islands a tax haven with minimal tax imposed on individuals and companies there.

   Indonesia’s government and president are keen to present a multinational-friendly tax environment however, it has struggled to reach its tax audit targets in recent years and in response the authorities have targeted multinationals in an attempt to increase revenue.

UK accountants angry at “draconian” measures

   The Chartered Institute of Taxation has described proposed penalties for advisers arranging tax avoidance schemes as “draconian and broad”, reports the Financial Times.

   The proposals, first introduced by former chancellor George Osborne, would see advisers facing fines of up-to 100% of the avoided tax if found guilty of constructing and advising on schemes for individuals and companies to avoid tax.

   The Institute of Chartered Accountants in England and Wales and the Law Society have also spoken out against the proposals. 



more across site & shared bottom lb ros

More from across our site

A 120-plus-day delay to refunds would cost taxpayers almost $3bn in additional interest, the Cato Institute warned; plus indirect tax updates from February
The Office for Budget Responsibility’s pessimistic pillar two forecast accompanied the UK chancellor’s muted Spring Statement, dubbed ‘as dull as possible’ by one adviser
Digital tax reform is dissolving the old ‘temporal buffer’, forcing systems, institutions, and professionals to adapt as real-time reporting reshapes governance, capability, and compliance
Our first instalment features analysis of Deloitte’s landmark EMEA merger, Donald Trump’s Supreme Court tariff showdown and Venezuela’s tax evolution
While some believe it could have a positive effect on the wider advisory landscape, others argue that HMRC’s ‘red tape’ exercise won’t deter bad actors
The political optics of the US’s carve-out deal are poor, but as the Fair Tax Foundation’s Paul Monaghan writes, it preserves pillar two’s guiding ethos
The big four firm reportedly sent ‘threatening’ correspondence to Unity Advisory over its hiring of ex-PwC partners; plus tax recruitment news from the week
Tom Goldstein, who was represented by US law firm Munger, Tolles & Olson, denied wilfully cheating on his taxes and blamed errors on his staff
Multinationals face rising TP scrutiny as global rules diverge. As Daniel Moalusi argues, strong, consistent documentation is now essential to minimise audit risk and protect tax positions
The profession is fundamentally restructuring itself around what tax and accounting work should be, a Thomson Reuters leader told ITR
Gift this article