Tax

30
Jun

European finance ministers on 26.06.2013 agreed a deal on new rules to shift the burden for future bank rescues from taxpayers to the financial sector The measures, which still have to be adopted by the European Parliament, will force bank owners and bond holders firstly and then depositors with more than 100,000 euro to bear the losses. "Our aim is to have a common approach throughout Europe so our taxpayers no longer have to shoulder the burden," said Irish Finance Minister Michael Noonan, who chaired the talks as current holder of the EU presidency. Noonan said governments would no longer have to save banks that were "too big to fail" as the deal would end the "vicious link" that forced countries to step in and rescue lenders in order to prevent wholesale collapse. Hopefully the new rules would be finalised by early next year at the latest and the plan is that they would then come into effect from 2018. www.eubusiness.com

08
Jun

Debate on the plan was postponed following complaints by several Swiss political parties that the measure lacked specifics - including the size of fines Swiss banks could potentially face The National Council, Switzerland's lower house, on Wednesday voted to postpone discussion on a proposal floated by the country's cabinet last week that would let domestic banks provide information to US law-enforcement officials investigating alleged tax evasion. Roland Meier, a spokesman for the Swiss finance ministry, said that the plan will now go to the finance committee of the upper house, or Council of States, for discussion, before being sent back to the lower house's finance committee. The talks are expected to take place in the next two weeks. online.wsj.com

08

A list of the uncooperative countries and jurisdictions will be published on the website of the tax authority (AFIP) and will be regularly updated An Executive Power Decree 589/2013, published in the Official Gazette of 30 May 2013 and in force from that date, amends the Regulatory Decree to the Income Tax Law (DRLIG) establishing a new criterion to define when a country or jurisdiction is considered a "low- or nil-tax country" in order to trigger the application of specific provisions in the tax laws. The former criterion was reflected in an exclusive list of 88 countries and jurisdictions in article 21(7) of the DRLIG, which is consequently repealed. The motives to be included in that list were not explicit but a low effective taxation certainly played a relevant role. The new paradigm is defined by cooperation and the willingness to exchange information, irrespective of the level of taxation. Those countries that have entered into a tax information exchange agreement or a tax treaty with an exchange of information clause will in principle be deemed "cooperative." However, the decree suggests that an effective exchange of information test may additionally be applied. The decree will become operational once the new list ...

08

The DTT was signed on 8 November 2012 although it has not been ratified yet By Decree No.302-r dated 15 May 2013 the Cabinet of Ministers of Ukraine submitted a Convention between Ukraine and Cyprus for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income (the "DTT") and respective Protocol to the Parliament of Ukraine for ratification. In accordance with subparagraph 1.2 of Article 26 of the DTT it becomes effective from the 1st January of the year following a year of ratification (certain decreased tax rates become effective one year from a year of ratification). Effective Double Taxation Treaty between Cyprus and USSR dated 29 October 1982 ceases to have effect from the moment of the DTT ratification. www.kpmg.com

06
Jun

Andorra to introduce income tax Under pressure of EU Andorra is to introduce a tax on personal income for the first time as it faces pressure from its European neighbors to tackle tax evasion. At the meeting in Paris, Antoni Marti, the head of the Andorran government, told French President Francois Hollande that he will introduce a bill before 30 June. The principality will "gradually meet international tax standards", according to the office of the French president. There is currently no income tax applied to individuals or corporations. www.bbc.co.uk Global OECD boosted by decision to open membership talks with Colombia and Latvia with more to follow The applications for accession by the other countries reviewed by the OECD will be further considered on a case-by-case basis On 30th May 2013 OECD took a significant step to extend its global reach by deciding to open membership talks with Colombia and Latvia and signaling its intention to do likewise with Costa Rica and Lithuania in 2015. The next stage in the accession process will be the establishment of individual roadmaps. Accession talks will take place individually between the candidate countries and the OECD involving the committees with responsibility for ...