If the existing government retains leadership after the general election, no material changes are expected from a tax perspective. But if a Labour-led government wins power, advisers warn of significant tax reforms with major implications for taxpayers.
A recent report criticising Ireland’s economic growth plan – initially labelled as coming from the German Bundestag Finance Committee – has caused controversy and tension in Irish-German relations, but an analysis of the facts shows the report does not wholly represent German attitudes towards Ireland.
Political uncertainty in Crimea is reflected in the tax market, and this has resulted in a variety of approaches by Crimean entities. The majority of these are considered short term, damage-control strategies. Re-registration with Russia is now a popular option for companies with material assets in Crimea, though this practice could bring political fallout with Ukraine.
A new survey has highlighted that Uganda lost approximately $884 million in 2002 to 2011 through transfer mis-invoicing. Reasons cited for constant increases in tax revenue losses include a mix of bribery, lack of governance and the influence of the western-orientated, global financial system.
The increased diversification of the digitised economy presents a major challenge for BEPS initiatives. Lack of a permanent establishment (PE) had led to debate over where tax should be applied, even where a digital entity is not practising a tax avoidance strategy. The prospect of amended tax legislation to address this has raised concerns over the increased risk of double taxation, and a regulatory burden on multinationals.
An Indian member of the EQUANT group (formerly Global One India) recently defended its application of the profit split method (PSM) against the transfer pricing officer (TPO). The ruling has provided guidance on the possible application of PSM, usually reserved for related party transactions, suggesting that it may be retroactively applicable in many international transactions.