The battle to stop the abuse of tax havens is becoming widespread. The Ecuador Tax Administration is joining the fight, using strategies such as making it impossible for companies whose shareholders are located in tax havens to participate in public procurement, charging additional taxes on dividends and presuming related-party relationships between transacting parties, which can have effects on transfer pricing.
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Ireland’s Department of Finance reported increased income tax, VAT and corporation tax receipts from 2024; in other news, it’s understood that HSBC has agreed to pay the French treasury to settle a tax investigation
The EU has seemingly capitulated to the US’s ‘side-by-side’ demands. This may be a win for the US, but the uncertainty has only just begun for pillar two