News Briefs for October 20, 2016

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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

The event comes at an important moment for professionals dealing with practical realities related to this practice area
Germany’s dogmatic restriction of third-party investment in tax advisory firms will only serve to slow down innovation and access to justice
The Irish government has been told that it’s spending too much of its corporation tax receipts and should instead focus on running bigger surpluses; plus, the IRS is set to merge tax practitioner offices
A company risks double taxation, penalties and inquiry cost if it submits a form with anomalies under the new system, Asker Ali also tells ITR
Arindam Mitra and Robin Hart examine how aggregate TP rules clash with transaction-level customs rules, creating compliance risks and requiring granular, SKU-level pricing strategies
The scandal has come just three years after the PwC tax leaks controversy and has prompted KPMG’s Australian chief executive to resign
In the first of a two-part series on capital v revenue in R&D, Jayne Stokes explores these key concepts and where UK companies need to tread carefully
Magnus Pantzar is set to join as managing director after spending nearly a decade as EQT’s global head of tax
The OECD’s project was up for debate as Matt Williams spoke to ITR following BDO’s tax strategist survey, which uncovered increased complexity and costs among multinationals
The recent spree of firm mergers and acquisitions proves that geographic scale is the name of the game
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