Quantcast
Channel: News: Posts
Viewing all 261 articles
Browse latest View live

Love all, trust a few, do wrong to none

April 27, 2016, 4:47 am
$
0
0
Excerpt: A number of significant milestones have occurred here in the UK recently. One very personal and at least two very public, all of which have got Graeme thinking.
Body:

​A number of significant milestones have occurred here in the UK recently. One very personal and at least two very public, all of which have got me thinking.

Arguably the greatest dramatist of all time, and almost certainly the best known globally, William Shakespeare died exactly 400 years ago yesterday, as I write. Also, last Friday, Her Majesty Queen Elizabeth had her 90th birthday. Finally, I lost my mother almost exactly one month ago.

This morning, for a number of reasons, all of these events came together to make me think on my life; business, private and personal.

I have entitled this blog by using one of Shakespeare's quotes, and the one I'd like to believe, when the time comes, as it must, for me to "shuffle off this mortal coil"² that others may think of me. That said, like most of us I suspect I will have fallen well short. I love too few, trust too many and have done wrong to some.

But that brings me on to the Queen. Not brought up expecting to be monarch, her uncle's abdication and father's early death lead her, in 1952 at the age of 25, to ascend to the throne.

And the reason she has inspired me in this musing? Well she took an oath at her coronation "before God and for my life", and she has steadfastly stuck to her pledge. Many other Monarchs have abdicated in favour of their children or siblings. Thus they have allowed themselves to retire in comfort.

Queen Elizabeth has not. It is understood that she is convinced that she made a binding oath to her subjects, before God and her subjects, and that to abdicate would be a breaking of that oath. Many have questioned if she has stuck to aspects of the oath, many questioned her judgement at times, but as she is only human, I have no doubt that she believed at the time that she was adhering to her oath.

Thus, seeing her at 90, still carrying out her duties as she understands them, and trying to live that Shakespearean motto I've quoted, is inspiring to me at least. As I said before, I hope that some at least will say the same for all of us when the time comes.

Then there is the death of my mum. Given my dad died some 16 years ago, it strikes me that at the age of 61, I am now an orphan. Whilst that is more sophistry than sobering in many ways, it is thought provoking. At my mum's funeral there were a great many people there that I did not know, but for whom my mum had a positive effect which led them to come and say goodbye. Additionally, the notes from family and friends around the world who regretted being unable to attend made me realise just how many lives we all effect, whether we know it or not.

So, dear reader, remember "All the world's a stage, and all the men and women merely players"³. So when it comes to my "exit", I pray and hope that the "many parts" I've played, and they are numerous, those that are left can truly at least say "He 'Loved all', maybe trusted more than a few, but tried at all times to "do wrong to none". For a mere mortal, I believe that is the best we can strive for.

So to conclude, I will quote Shakespeare again if I may.

"This above all; to thine own self be true, and it must follow as the night the day, thou canst not then be false to any man"²

William Shakespeare, born 23 April 1564-died 23 April 1616 ~
¹All's Well That Ends Well
²Hamlet
³As you like it

By Graeme Gordon

Category: Blog Posts
Published: 27/04/2016 12:33
↧
Search
↧

Is Saudi Arabia preparing for a post-oil economy?

May 3, 2016, 3:04 am
$
0
0
Excerpt: Saudi Arabia looks set to be joining a number of other Middle-East nations in looking to explore a post-oil economy.
Body:

​The Middle East is a region that has been built on an economy synonymous with oil, but things could soon be about to change, with the prospect of a post-oil economy becoming an increasingly heavy weight on the minds of many financial leaders across the region.

While those backing greener energy and more environmentally-friendly approaches to generating profits have always advocated a greater emphasis on creating a post-oil economy, the hands of some of the world's most prominent oil producers have arguably been forced by a slump in the global market.

Saudi Arabia thinking of the future

One such nation to look ahead to the potential of a post-oil economy is Saudi Arabia, which has already reportedly put plans in place to create a $2 trillion mega-fund aimed at preserving the prosperity of the kingdom once the age of oil has passed.

According to figures cited by the New York Times, Saudi Arabia is still the world's largest oil producer, with an output of around 10 million barrels a day.

That number makes up for around ten per cent of the world's total oil production.

Although reports suggest there is little danger of the country suffering a shortage any time soon - reports suggest Saudi Arabia has reserves of around 160 billion barrels, the value of that stock has slumped by 60 per cent since June 2014.

The fall has caused the country to think more about what will happen in the post-oil age, with this new fund aimed at helping Saudi Arabia remain profitable in the face of increasing market pressure.

Deputy Crown Prince Mohammed bin Salman told Bloomberg that the Public Investment Fund will be put in charge of the extensive assets, partly by selling off shares in state-oiled oil giant Aramco, while also diversifying its investments in other sectors.

"Undoubtedly, it will be the largest fund on Earth," Salman told the news provider. "This will happen as soon as Aramco goes public."

The move may well have paid off more if it had been made before the fall in oil prices, but its very creation shows there is at least some sort of vision for securing financial stability in an age when the future of fossil fuels is beginning to look increasingly uncertain.

Falling prices

As well as the setting up of the fund, Saudi Arabia has also said it is to freeze production should other major producers do the same.

A recent monthly survey by Reuters found that oil output from the 13 Opec members rose in March due to higher production from Iran and near-record of over four million barrels a day in exports from southern Iraq - Opec's biggest supply growth last year and placing only second behind Iran.

According to the BBC, the move is largely seen as a challenge to Iran, which has vowed to increase oil production after seeing Western sanctions lifted.

"If all countries agree to freeze production, we will be among them," the Salman told Bloomberg, adding that Iran needed to follow suit.

Those comments saw oil prices fall, having previously edged into positive territory.

Oil prices as a whole have plunged from a recent peak of $116 in June 2014 because of oversupply and sluggish demand.

Saudi Arabia not alone

The state of the market has not just caused Saudi Arabia to take action, with the United Arab Emirates also casting its mind to the potential of a post-oil economy.

Sheikh Mohammed bin Rashid Al Maktoum reportedly told the local media recently that a number of new measures would be funded to help the country make the transition away from oil.

“With every lesson we learn comes a decision that will shape our future. But we also know that we can learn by looking to the future, not just the past or present,” he wrote.

“Simply put, we must think of what life will be like in a post-oil economy. That is why we have invested heavily – more than Dhs 300 billion (£56.59 billion) – in establishing a focus for the UAE’s path ahead, with the aim of preparing for a diverse economy that frees future generations from dependence on the ever-fluctuating oil market.”

He added: “Achieving that goal requires reconsidering our legislative, administrative, and economic system fully to move away from dependence on oil.

“We need a strong and appropriate regulatory infrastructure to build a sustainable and diverse national economy for our children and their children.”

Category: Industry News
Published: 03/05/2016 10:31
↧

Stable oil prices decrease likelihood of global recession

May 3, 2016, 3:50 am
$
0
0
Excerpt: Research from Oxford Economics suggests that the risk of another global recession has been greatly reduced.
Body:

​The global economy is no longer in danger of falling into another recession due to a rally in global stock markets and commodity prices.

That is the main finding of a new report released earlier this month by researchers at Oxford Economics, and it is likely to ease concerns expressed by economists and other expert analysts about the health of the global economy.

Oxford Economics' recession risk model recorded a score of 3.3 out of five - down from four at the turning of the year.

Fears surrounding the state of the world economy reached their height back in January when oil prices were heading for just $20 a barrel, due to a freefall in prices.

But a score of 3.3 is, according to Oxford Economics' Adam Slater, “no longer at levels associated in the past with recession periods".

However, it is worth remembering that the number is unlikely to correlate to a concrete prediction of whether or not a recession is coming, instead showing how the world is performing on five different indicators that have, in the past, proved relatively accurate in helping to predict previous recessions.

The five factors examined by Oxford Economics in its calculations include global stock prices, real non-fuel commodity prices, along with US high yield spreads and corporate credit conditions and G7 industrial output.

But Slater said: “Recession risk has not subsided entirely. The recession risk indicator remains at levels similar to those in 2011-12, when world GDP growth slowed sharply, to as low as 1.5 per cent.”

Nevertheless, there is likely to be plenty of optimism surrounding the findings consider that the score surpassed four during the 2001 contraction, before hitting five in the final quarter of 2008.

While the risk of another global recession looking less likely, the figures have indicated a sharp slowdown in growth, adding that it could fall below the 2.3 per cent initially predicted for the year.

Should growth be excessively hampered it is likely to be an added worry for economists. When recession risks were similarly high in 2012, the global economy saw just 1.5 per cent of growth.

Slater cites that even the ongoing rally in the financial markets is unlikely to have been built "concrete improvements" in the global economy.

He added that investors should be weary of the risks and prepare accordingly for poor growth over the course of the year.

“High yield spreads have narrowed but remain wide and concerns persist about tightening credit standards,” he said. “G7 industrial production has meanwhile moved into the danger zone, being likely to enter technical recession in Q1 2016.”

Published: 03/05/2016 11:39
↧

G20 warns against reliance on low interest rates

May 3, 2016, 3:55 am
$
0
0
Excerpt: G20 leaders claim that single monetary policies are unlikely to be enough to create genuine economic stability.
Body:

​The world's leading financial experts have warned that the global economy cannot rely on low interest rates alone in order to return to stable growth.

Finance ministers and central bank governors from across the G20 have already praised some positive bright spots in the global economy, but they are nevertheless cautious of any factor that may help to upset the green shoots of growth.

A series of meetings involving the International Monetary Fund (IMF) has come against the backdrop of encouraging economic growth figures from China.

However, according to the Financial Times, many leading economists are concerned that current monetary policies are not doing enough to give the economy the extra firepower it needs for further growth.

US Treasury secretary Jack Lew concurred, adding that it was unwise for any country to rely on one single monetary policy, adding that such an approach was unlikely to generate the growth needed by countries across Europe.

He said: “All major economies need to deploy a full toolkit of economic policy measures, including monetary and fiscal policies and structural reforms, to address weak demand, boost employment and raise standards of living.

“While the US economy is on a solid path, the global recovery remains uneven and downside risks have become more pronounced due in large part to a continued shortfall in aggregate demand.”

Despite showing recent signs of encouragement, China has still experienced difficulties in rebalancing its economy, as well as strains placed on oil exporters, disorderly capital flows and a continued unwillingness to discuss lending conditions to Greece and Britain’s potential exit from the European Union.

A spokesperson for the G20 said: “Growth remains modest and uneven, and downside risks and uncertainties to the global outlook persist against the backdrop of continued financial volatility, challenges faced by commodity exporters and low inflation."

An increasing number of countries are seemingly shifting to negative interest rates in a bid to boost demand, but the G20 has instead recommended a potential three-way solution, including boosting productivity and employment, lowering interest rates and, if affordable, fewer austerity measures.

However, there are concerns across Europe that growth is too slow to significantly lower unemployment or raise the inflation rate.

The UK's referendum on EU membership is unlikely to have helped matters, with finance ministers fearing that a "Brexit" could be a more likely than previously thought.

In contrast, the 6.7 per cent growth recorded by China means it has maintained its status as an important beacon of economic growth, with a number of financial experts praising the country as one of the few larger economies to have taken the steps needed for financial stability.

However, the way in which Beijing avoided a deeper slowdown by encouraging growth in housing and infrastructure to address a slowdown in financial services, is unlikely to be of much comfort to the rest of the world.

Category: Industry News
Published: 03/05/2016 11:51
↧

World leaders stepping up fight against global tax evasion

May 5, 2016, 7:19 am
$
0
0
Excerpt: World leaders from across the G20 have stepped up their efforts against tax evasion following the recent Panama Papers scandal.
Body:

​The emergence of the Panama Papers scandal has brought the issue of tax evasion back under the microscope once again.

The methods used by many high-profile figures around the world sparked anger among many members of the general public, with leaders coming under increased pressure to take decisive action.

It was therefore perhaps no surprise to see finance ministers from across the EU approve a series of measures aimed at tackling the tax-evading methods exposed in the damning leak.

Among the new proposals is the publishing of a joint list of tax havens in an effort to expose jurisdictions used by both individuals and companies looking to either evade or minimise tax.

According to The Guardian, Pierre Moscovici, the European economic affairs commissioner, is confident of having this list published later in the summer, with many countries across the EU already having their own individual lists.

However, much of that data has been based on differing criteria, meaning that the process of drawing up a single unified list could prove difficult.

Nevertheless, the level of urgency for surrounding such measures has intensified over recent weeks, meaning that officials may find they have choice but to find a way to overcome such obstacles.

Other measures that have been proposed include the automatic exchange of data in order to clarify the real owners of shell companies, which was announced during G20 talks in Washington DC earlier this month.

However, the proposal of country-by-country reporting, which has long been favoured by many tax activists, could face some opposition.

Advocates claim the proposals are needed in order to combat big corporations secretly shifting profits to low-tax jurisdictions, usually by way of utilising smaller companies.

There is already some division on implementing that approach, with critics arguing that sensitive corporate data should be remain the concern of tax authorities and should not be placed into the public domain.

Stepping up the warnings

Nevertheless, there has still been a noticeable step up in the efforts of the world's leading finance ministers have seemingly taken action.

The spring meetings of the IMF and World Bank has culminated with tax jurisdictions being given until July to comply with the new measures aimed at increasing transparency surrounding tax practices.

Pressure on Panama itself has heightened, with Bahrain the only other country to have decided not to commit to the new standards,.

But cracking down on havens themselves, a goal that could include creating blacklists of countries guilty of not improving their practices, may be stifled by a corporate culture of tax avoidance.

US president Barack Obama has subsequently said the latest leak illustrated the scale of avoidance involving Fortune 500, adding that the costs involved may have run into trillions of dollars around the world.

“There is no doubt that the problem of global tax avoidance generally is a huge problem, he told reporters at the White House. "The problem is that a lot of this stuff is legal, not illegal.”

“We shouldn’t make it legal to engage in transactions just to avoid taxes,” he added, praising instead “the basic principle of making sure everyone pays their fair share”.

Obama is likely to have a very good idea about the scale of the stamping out tax avoidance.

Soon after taking office in 2009, the current president outlined plans to try and reclaim some  $200 billion in unpaid taxes to the US.

However, eight years on arguably little has changed, with the US still a popular venue for tax avoidance.

A unified response from the G20 may well present a stronger response to the problem, but it is nevertheless set to be a challenge.

Category: Industry News
Published: 05/05/2016 14:15
↧
↧

Are developing countries at risk of being left behind by global tax decisions?

May 18, 2016, 1:34 am
$
0
0
Excerpt: A number of experts have expressed concerns that developing countries are at risk of being left out of forming global economic policy.
Body:

​The challenges facing the global economy have seen many analysts call for unified action from some of the world's biggest financial players, with almost every member of the G20 in agreement that the recent Panama Papers leak, combined with the threat of a global economic slowdown, needs a more encompassing approach.

However, there are now concerns that such actions risk leaving many developing countries behind, despite suffering just as much from the issue of tax avoidance.

Tove Maria Ryding, a representative from the Financing for Development (FfD) Group, told journalists recently that there was currently not enough dialogue between richer nations and developing countries, adding that the process instigated by the 34 member Organisation for Economic Cooperation and Development (OECD) is “extremely undemocratic".

The Group of 77 and China, which currently represents 134 UN member states as already pressed the UN on the idea of taking a greater role in global tax co-operating, adding that such an approach would help to place the debate on a more equal footing.

That proposal was dismissed at the UN's 2015 summit on Financing for Development, which Ryding fears will continue to leave many developing countries out in the cold.

One situation that, according to Ryding, best demonstrates this disparity is when a large company operates in more than one country. OECD rules currently dictate that the taxes should largely be paid in the country where that organisation is based.

Given that in a majority of cases the headquarters of these companies tend to be located in OECD countries, it leaves developing countries largely disadvantaged and having to comply with rules that they have had no say on drawing up.

The case for a global tax body

Ryding's analysis is likely to add to the growing calls for a united global tax body, which has already been touted as one of the potential solutions for the current scale of tax avoidance, which is estimated to be the equivalent of eight per cent of the world's total financial assets.

Experts have unsurprisingly cited tax avoidance as key factor stifling efforts to reduce global poverty and strengthen international systems of sharing.

According to research by Global Financial Integrity, developing countries could lose around $1 trillion a year in illicit capital flows, with a majority of that cash being stored away as the result of tax havens.

Furthermore, UNCTAD estimates that developing countries could lose $100 billion a year in revenue from corporate tax avoidance alone - a figure far higher than the GDP of many countries.  

Some experts have suggested that given the shortcomings of the current system will governments should reconsider the proposal of a UN tax body, in order to create a system that is transparent and coherent, while also helping to level the playing field and replace the complicated treaty systems that are currently in place. 

There is a real feeling that the UN is the only forum that is capable of delivering the inclusive and democratic process needed to address such issues.

While the move is widely backed by civil society groups, there is little enthusiasm among OECD countries, with the European Commission instead proposing public tax transparency rules for multinationals on a country-by-country basis, although there are doubts over their potential effectiveness.

Solving the issue could literally save the planet

Confronting tax avoidance could have implications beyond reinforcing the the economies of developing nations, with the recent Paris Climate Agreement serving as a reminder that the battle against climate change is being denied vital funds.

A fragmented approach to the issue meant there was a disappointing outcome in terms of finding a unified approach to tackling environmental issues at a summit in Ethiopian capital Addis Ababa last July, with follow-up negotiations also seemingly also failing to reach a solution.

With efforts to reduce reduction and climate change underfinanced, the scandal of the Panama Papers has shown how the existence of loopholes and ease in finding tax havens has once again highlighted how much money is being siphoned away from worth causes and into the hands of companies and individuals.

Category: Industry News
Published: 18/05/2016 09:32
↧

Australia to introduce its own 'Google tax'

May 18, 2016, 1:53 am
$
0
0
Excerpt: Australia has introduced several new measures aimed at addressing tax avoidance, although American companies are not happy.
Body:

​Multinational companies found to be moving profits offshore in an effort to avoid paying tax will now be penalised by authorities in Australia amid new measures introduced by the country's government.

Under the new rules, companies found to be shifting profits will be taxed at a penalty rate of 40 per cent, rather than the usual 30 per cent.

Reports suggest the measures, introduced as part of treasurer Scott Morrison's first budget, are aimed at raising extra revenue in order to fund tax cuts and have already been compared to the so-called "Google tax" introduced in the UK last month.

It also comes on against the backdrop of Australia's transition away from the dependence placed on its mining industry.

Cracking down on tax avoidance

As well as ensuring companies guilty of moving profits pay extra, the crackdown on tax avoidance in Australia has been stepped up further by the government's "Anti-Hybrid Rules", which are aimed at closing the various loopholes that allegedly allow multinational companies to exploit difference between the tax treatment of entities and instruments across different countries.

Other moves include the tightening of rules allowing companies to use excessive related party payments to shift profits overseas while cutting the tax they pay in Australia.

According to the budget papers, the government hopes to raise as much as A$3.9 billion from the measures, with the issue of tax avoidance becoming one of the most hotly-debated political issues in Australia.

The problem of tax avoidance has been widely cited as a key driver slowing the economy in recent years, which has been compounded by dwindling mining investment and a fall in commodity prices.

How the new measures will affect the economy remains to be seen, but the government itself seems to only have a minimal level of optimism.

The budget has even cut growth forecasts for the 2016 to 2017 period from 2.75 per cent to 2.5 per cent, a decision that comes hails back to a series of growth downgrades in recent years.

American opposition

The government introduced a wave of tough anti-avoidance measures last year, which included incorporating tax officials within the structure of some of the biggest multinational companies, including US search engine Google.

As well as having an impact on the economy, the measures could well be at the forefront of voters' minds ahead of the country's general election in July.

Nevertheless there are still some issues that will need to be resolved, most notably the opposition from US companies, who claim they are being unfairly targeted.

Niels Marquardt, chief executive of the American Chamber of Commerce in Australia told the Financial Times: “We are also concerned about retrospective impacts that can undermine the value of foreign investments already attracted to Australia under more favourable rules.

“Australia has long been a very attractive destination for foreign investment, especially from the US. So AmCham is alert to any regulatory or tax changes that could kill the goose that has laid so many golden eggs for so many investors.”​

Category: World News
Published: 18/05/2016 09:51
↧

Plante Moran’s Eric Formberg Receives Michigan School Business Officials President’s Award

May 24, 2016, 7:51 am
$
0
0
Excerpt: Eric Formberg, a partner in Plante Moran’s Auburn Hills office, has received the Michigan School Business Officials President’s Award, which is bestowed at the discretion of the MSBO President.
Body:

​Eric Formberg, a partner in Plante Moran’s Auburn Hills office, has received the Michigan School Business Officials President’s Award, which is bestowed at the discretion of the MSBO President.

“Eric works tirelessly on behalf of K-12 school districts, both locally, statewide and at the federal level — he has an obvious passion for what he does,” said Cheryl Wald, MSBO immediate past president. “He advises business officials on the many challenges they encounter, while recognizing that their work extends beyond the administration office.”

As the professional standards leader for Plante Moran’s K-12 education practice, Formberg oversees all technical aspects of the practice, including quality control and emerging accounting and auditing issues. With more than 30 years of experience, he has substantial expertise in compliance auditing, and extensive knowledge in the audit of Michigan School District financial statements, federal programs, and bond/sinking fund transactions under Treasury’s audit guide.

Formberg is a Certified Government Financial Manager and is nationally-recognized for his ability to work through fiscal and regulatory matters affecting public education.

He is actively involved with the Michigan Department of Education, including advising the department on the implementation of Uniform Guidance on school districts and participating in its school audit referent group. As a result of his extensive experience, Formberg is an invited member of the American Institute of CPAs National Single Audit Roundtable and the AICPA Government Audit Quality Center Executive Committee.

Formberg holds a bachelor of science in accounting from Michigan State University.

Published: 24/05/2016 15:49
↧
Search

Abe and Merkel at loggerheads over how to fix global economy

May 25, 2016, 8:44 am
$
0
0
Excerpt: The question on how to fix the global economy has caused a divide among the world's politicians.
Body:

​Kickstarting the global economy has become one of the most important items on the agenda of various world leaders and financial experts, although opinions appear to differ on what will be the best way of moving forward.

The issue is set to be one of the primary points of discussion at this week's G7 meeting, although there are clearly some disagreements that will need to be overcome.

Japan's prime minister Shinzo Abe, whose economic policies once drew admiration from across the world, resulting in the term 'Abenomics', has already gone against the advice of German chancellor Angela Merkel earlier this month.

Abe has clearly remained loyal to the idea of large-scale stimulus spending, although Merkel insists that Germany, which has long been one of Europe's most envied economic powers, is doing enough to prevent any potential slowdown.

Merkel has pointed to the country's extra economic activity brought about by the arrival of a one million refugees and migrants over the course of the last year, although her party's handling of the biggest migration crisis since World War II has put her under pressure.

Nevertheless, Merkel has held firm in her belief that Germany is on the right track, adding that Berlin had already shown support for a three-way strategy of structural reforms, including the fiscal and monetary policy of independent central banks, as well as pledging ongoing investment in digital infrastructure.

"With the many refugees we took in last year, we saw a boost to domestic demand which, in my view, was a good contribution to the development of the world economy," she said.

"We are seeking to combine solid budgetary policies with sustainable growth policies and more investment. I think with that we are making our contribution for the good development of the world economy, and we will be discussing the details in depth in Japan."

Japan looking for change

The upcoming G7 meeting will see various world leaders outline their visions for the world economy, many of which look set to contradict with each other.

Abe has already called on global cooperation to help provide a boost to the global economy, adding that not changing anything was no longer an option.

"We spoke about the global economic situation and that we cannot just wait for normal economic cycles but have to proactively tackle the risks to rejuvenate the world economy," he said.

"We need a speeding up of structural reforms and expansive fiscal policies," he said.

Abe has not exactly shied away from making big economic decisions, with the purchasing of large amounts of government bonds and the introduction of a negative interest rate at the heart of his efforts to reverse deflation across Japan.

'Abenomics' enjoyed a certain amount of success at first, helping to sharply weaken the value of the yen to aid the inflation of exporter profits and subsequently inspire a stock market rally.

Yet a full economic recovery failed to materialise, leaving the yen to reverse its course as traders flock to the Japanese unit, which is considered a safe bet in times of turmoil.

Brexit could prove a spanner in the works

Nevertheless, Japan looks set to take the lead on the latest round of G7 meetings, with officials eager to stress the need for uniform action.

As a result, the UK's upcoming referendum on whether to stay in the European Union is being watched with much interest.

The chairman of Japanese company Fujitsu, Masami Yamamoto, has already had his say, telling the BBC that the UK was considered by many markets as being at the heart of the "European region", adding that his company, which is the largest Japanese employer in the UK, would be against any move away from the EU.

"Regarding this Brexit issue, the UK remaining in the EU or not, of course the final decision is to be made by the British people," Mr Yamamoto said.

"But from our perspective we [would] really like the UK to remain in the EU because the UK is going to remain as the central economy in the European region and we would hope that the UK and the EU develop even further.

"Because we believe the UK is the centre in the European region, that's why for the last decade we have already made £3bn in investments.

"If there is any change, either the UK remaining in the EU or not, of course we have to be careful about watching the process and also the outcome and then decide whether we are going to make any further investment or not."

The potential for fracturing the EU is likely to be one of the issues discussed in Japan, and could pose a threat to the united action Abe and his advocates are looking for.

Category: Industry News
Published: 25/05/2016 16:27
↧
↧

Plante Moran Names Laura Claeys and Donna Hanson Industry Group Leaders

May 27, 2016, 6:55 am
$
0
0
Excerpt: Plante Moran, one of the nation’s largest certified public accounting and business advisory firms, has announced two new industry group leaders: Laura Claeys and Donna Hanson.
Body:

​, one of the nation’s largest certified public accounting and business advisory firms, has announced two new industry group leaders: Laura Claeys and Donna Hanson.

Claeys, partner in the firm’s Macomb office, has been named construction industry group leader. In this role, she’ll lead a team of 120 staff members providing tax, audit and consuting services to the firm’s growing roster of construction clients. Claeys most recently led Plante Moran’s K-12 practice and will continue to be a valuable member of the firm’s education team.

Hanson, partner in the firm’s Auburn Hills office, will succeed Claeys as Plante Moran’s K-12 industry group leader. In this role, Hanson will lead a team of 100 staff members providing K-12 clients with audit and consulting services.

“Both Laura and Donna are outstanding professionals who have incredible passion for the industries and clients they work with,” said Jim Proppe, group managing partner, Plante Moran. “They will do an incredible job serving their clients, leading staff and helping to grow the firm.”

Image:
Published: 27/05/2016 14:53
↧

Why American firms need to take notice of changes to EU data protection regulations

May 31, 2016, 2:44 am
$
0
0
Excerpt: The changes to data security measures across Europe should interest companies across the pond.
Body:

​The International Association of Information Technology Asset Managers (IAITAM) has claimed that the thousands of American companies doing business with Europe either directly or online will soon have to pay attention to newly enacted data privacy regulations introduced by the European Union this month.

Changes are not expected take full effect for another two years, with many experts insisting there will subsequently be plenty of time for companies on both sides of the Atlantic to get a thorough and detailed understanding of the new rules.

The changes are set affect some key areas of how American companies handle data security. For example, when companies find themselves on the receiving end of a data breach will be required to report the incident within 72 hours of it being discovered. Under US law, many American companies only choose to report a breach when the news is leaked to the public or the media.

It means many companies will have to demonstrate a willingness to take the issue of data security seriously and will have to appoint a data protection officer (DPO) with an expert knowledge of data protection law and the practices needed to fulfil certain tasks.

American companies dealing in Europe will also need to show extra care when dealing with the data of Europeans as any transfer of personal data carried out on an intercontinental basis. The upcoming General Data Protection Regulation (GDPR) will apply to any company that is either handling the data of EU citizens or is receiving any third-hand information.

Sweeping changes ahead

Consent is another large affected area, with data controllers now required to give proof that information has been gathered using methods that have obtained the subject's consent. Whereas before the mere use of a certain service by an end-user would have been enough to establish consent, there will now need to be sufficient terms and conditions put in place that will need to be explicitly agreed to.

IAITAM's chief executive officer Barbara Rembiesa, said that American firms need to ensure they are aware of how far the new measures will go, while also understanding the potential consequences that will arise without compliance.

She said: “These are sweeping changes to how personal and corporate data is to be handled and they have far-reaching implications for many aspects of US businesses, particularly in terms of how information security is addressed.

“The days are long past when US businesses could worry only about complying with laws and rules in this country. Companies that fail to start planning now to deal with the General Data Protection Regulation (GDPR) requirements are going to be in for a real shock.”

That shock could come in the form of a significant legal or financial penalty, both of which will potentially await organisations that fail to adhere to the new rules, and could even come on top of any current legislatory punishments. As a result, the IAITAM predicts the potential monetary penalties could even run into the billions.

“Between the sweeping scope of the GDPR and the penalty structure, this is a piece of legislation that should be treated seriously and with an eye to what it will take ensure full compliance, Ms Rembiesa added.

Data security landscape becoming more complex

The complexity of the data security landscape is set to be taken to another level on both sides of the Atlantic, meaning that it could be a real challenge for the authorities to keep up.

The dawning of the Internet of Things (IoT) means that almost every item of hardware both in the home and at work will soon be connected, meaning that data and personal information will be more ubiquitous than ever before, presenting fresh challenges on how to protect users.

As part of the GDPR the European Parliament has already unveiled new laws aimed at helping to protect the privacy of drivers, amid a significant increase in the connectivity of company cars and vans.

Again, there will be a far higher standard for consent, while any firm caught falling short of the rules will be heavily fined.

“Individuals must be empowered; they must know what their rights are and know how to defend their rights if they feel they are not respected,” said Frans Timmermans, first vice-president of the European Commission.

“The new rules will ensure that the fundamental right to personal data protection is guaranteed for all.”

Category: Industry News
Published: 31/05/2016 10:29
↧

US investment banks to offer boost to post-Brexit London

July 11, 2016, 3:31 am
$
0
0
Excerpt: The recent Brexit result has sparked unease among many financial workers in London.
Body:

​Fears surrounding London's position as a top global financial centre in post-Brexit Britain could soon be eased, with five US investment banks reportedly telling chancellor George Osborne that they intend to offer their support.

JPMorgan, Goldman Sachs, Bank of America Merrill Lynch and Morgan Stanley, as well as Britain's Asia-focused Standard Chartered have all offered their support, although there is still no guarantee over safeguarding jobs.

One banker to meet with Osborne reportedly told Reuters that banks will need concrete assurances that firms based in London will manage to retain access to EU markets as it would otherwise be difficult for to justify investing in Britain.

But in a joint statement released by bankers and Osborne, all parties agreed to work towards finding a solution that best served everyone.

"Today we met and agreed that we would work together ... with a common aim to help London retain its position as the leading international financial centre," the statement read.

It continued by stating that London enjoyed a status of being ahead of every other city in Europe in terms of the depth of capital markets available, but the draw of Britain's still runs alongside a sense of uncertainty.

One area that is of particular concern for the banking industry is what will happen to the various EU staff currently working in the city, urging a pragmatic approach to ensure the UK still has access to the EU single market once it completes its exit from the EU.

Given that any trade deal is unlikely to be completed quickly, there are already fears among many city workers that other countries may well steal a march.

The French government has already pledged this week to make its tax regime for expatriates the most favourable in Europe in a bid to divert investment, while Goldman Sachs and Morgan Stanley have both been forced to deny plans to move London operations to Frankfurt.

Despite those denials, easing fears over the UK's financial might is likely to be a top priority for Osborne, who has for years attempted to try and expand London's reach to China and India.

Now, having been part of the government's failed Remain campaign, the chancellor faces the task of easing any fears being harboured by potential investors while also convincing them that the UK is still a viable place in which to do business.

Domestic banks have also required reassuring having seen share prices tumble since the Brexit vote, with Osborne meeting with representatives earlier in the week in a bid to ensure they make more funds available for UK lending after the Bank of England eased capital rules.

Published: 11/07/2016 11:23
↧

EU pushes through corporate tax avoidance rules

July 11, 2016, 3:45 am
$
0
0
Excerpt: Despite Brexit continuing to cause shockwaves across Europe, the EU has taken steps aimed a cracking down on tax avoidance.
Body:

​The European Union may well be occupied with the news of the UK's shock exit, which has unsurprisingly shot to the top of the agenda since June 23rd's referendum, but there are a number of other issues currently on the minds of EU leaders.

Talk has already begun about what Brexit means for the future of the EU, with leaders across the continent urging member states not to resort any knee-jerk reactions when it comes to forming a response to Britain's departure.

Given the rumblings coming out of Brussels before Thursday's vote, one of the main priorities that will need to be addressed is how best to push ahead with plans to combat corporate tax avoidance.

Before the result from the UK, member states agreed a package of measures based on OECD recommendations to overhaul the global tax system and make it more difficult for companies operating across borders to take advantage of disparities in member states’ tax architecture.

Estimates suggest that member states from across the EU lose between €50-70 billion in revenues every year due to corporate tax avoidance.

This latest package has already been agreed by the European Council and is scheduled to formally implemented during a forthcoming council meeting.

The measures will reportedly help prevent a number of common tricks used by multinational firms to lower their tax bills, including limits on interest deductions, which will help to ensure companies are discouraged from financing operations in countries with higher tax rates with debt that is then used to pay back inflated interest to subsidiaries in low-tax jurisdictions.

This rather complicated practice is largely aimed at reducing the overall tax bill of a company, causing plenty of controversy in the process.

There will also be measures that will address member states charging tax on assets or profits that have been moved to a lower tax jurisdiction - a practice known as exit taxation. 

The new package will also contain a “general anti-abuse rule” that will aim to give more powers to EU member states in order to tackle tax avoidance schemes that due to their complexity, or indeed how new they happen to be, are not covered by specific legislation.

While EU ministers had expected to reach a deal on the proposals last month, it has so far failed to materialise, with experts divided on the best way to progress.

Despite many experts insisting that the measures are in line with those outlined by the OECD, critics have labelled them "weak" and "diluted to the point of making them almost meaningless, especially on anti-tax haven rules”.

Diarmid O'Sullivan, tax policy advisor at ActionAid, told Public Finance International: “Efforts at meaningful reform in Europe have been undermined by the determination of some countries, like the UK, to undercut each other on tax. We call on European countries not to be limited by this feeble compromise but to adopt much stronger national rules which deter tax avoidance by big companies at home and in developing countries."

Nevertheless, the measures were agreed up by all EU leaders last week, despite the initial threat of a veto from Prague.

EU Commissioner Pierre Moscovici said the rules would present “a serious blow” to any organisation or individual engaging in corporate tax avoidance, adding: “For too long, some companies have been able to take advantage of the mismatches between different Member States’ tax systems to avoid billions of euros in tax.”

But the seemingly inevitable departure of the UK, combined with several high-profile critics of the move, means that the future of cracking down on corporate tax avoidance is by no means certain.

However, it is nevertheless important that EU officials are seen to be doing something, with the recent Luxembourg Leaks and the Panama Papers scandal bringing the issue of tax avoidance to light in a way that has never been stronger.

Published: 11/07/2016 11:32
↧
↧

CISI calls on all Brits to pay tax, even if they're living abroad

July 13, 2016, 4:10 am
$
0
0
Excerpt: The CISI claims the proposed measures would help to reduce the risks of tax evasion.
Body:

​Cracking down on global tax evasion has become a hugely hot topic in recent months, with experts, analysts and politicians all seemingly queuing up to have their say on the best ways in which to ensure everyone is paying their way.

However, the Chartered Institute for Securities and Investment (CISI) may well have come up with the most radical solution yet, at least when it comes to British taxpayers.

The organisation has proposed a US-style system where every UK passport holder should be required to pay tax, regardless of where they live in the world.

It claims the measures would help to slash tax dodging and make systems fairer, while also improving behaviour and cultural standards in finance.

The emergence of the Panama Papers leak has seen the dealings of the super-rich come under particularly close scrutiny and CISI chief executive Simon Culhane claims that by making all British residents pay tax wherever they happen to be, it would result in a fairer system that can be trusted by everyone.

He added: “The UK income tax system isn’t fair at the best of times. The top one per cent of taxpayers, roughly those who have an income over £150,000, pay almost 30 per cent of the entire income tax burden of £160 billion, while the average person pays less than £5,000 a year."

“We could greatly simplify the collection of UK tax, and spread the load more fairly, if we moved away from just operating a residence test when determining whether an individual should pay tax.”

But the CISI has insisted there is no need for British expatriates, many of whom will still be considering their position after the recent Brexit vote, to be concerned by being taxed twice as double taxation treaties will help ensure there are no such problems.

For example, if a person is living in a country with a lower rate of tax than what they would be paying in the UK, they would pay what they owe locally first, before then paying what they owe to HMRC.

However, Brits working in a country with a higher tax rate would only have to pay a local rate, meaning they would not have to send funds back to the UK.

Overall, Mr Culhane believes the new measures will help to do away with the "nonsense" of wealthy taxpayers going to extremes to avoid being a UK resident, such as taking midnight flights to avoid staying in the UK longer than 183 days a year.

He added: "The citizenship/residency tests would mean those seeking lower tax havens can still do so, and they can run empires and businesses from anywhere in the world – but if they want the benefits and rights of UK citizenship they must accept their responsibilities to pay their fair dues and contribute to the UK Exchequer."

Published: 13/07/2016 12:06
↧

EC adopts new corporate tax avoidance rules

July 18, 2016, 7:55 am
$
0
0
Excerpt: A number of new rules have been introduced as part of measures implemented by the European Commission.
Body:

​New rules aimed at stopping multinational companies from taking measures to avoid paying taxes have now been adopted by the European Commission (EC).

The new directive, which was first brought to light last month, will aim to address tax base erosion and profit sharing (BEPS).

It will also apply to apply exit taxation rules and will try to cover gaps in a nation's specific anti-tax avoidance rules.  

The use of aggressive tax planning practices by large companies has been placed firmly under the spotlight in recent months, particularly in light of several high-profile scandals implicating well-known corporations and individuals in certain tax avoidance practices.

The EC said the rules will help to discourage multinationals from artificially shifting debts to jurisdictions with more generous deductibility rules by limiting the amount of interest that is permitted to be deducted from the taxpayer during the course of a tax year.

Companies will also have to operate in line with controlled foreign company rules, which in turn will have to reattribute the income of a low-taxed controlled foreign subsidiary back to its parent company.

Given that parent companies are often situated in jurisdictions where tax rates are higher, the EC is hopeful that the rules will help to close certain loopholes surrounding how companies pay their tax.

Hybrid mismatches will also be the subject of new rules in a bid to prevent corporations taking advantage of the shortcomings of tax systems when compared to those in other countries.

Member states of the EC will subsequently be required to ensure they apply the new directive as part of their national laws and regulations by the end of 2018.

The rules around exit taxation will need to be implemented by the end of 2019.

Peter Kažimír, president of the EC, said, "This new directive aims to protect our domestic corporate tax bases against aggressive tax planning practices that directly affect the functioning of the internal market.

"It is therefore an important step, which also demonstrates that we see the fight against such practices not only as our common priority but also our common commitment."

However, not everyone has reacted positively to the news, with Diarmid O’Sullivan, tax policy advisor at ActionAid telling Public Finance International: "Efforts at meaningful reform in Europe have been undermined by the determination of some countries, including the UK, to undercut each other on tax

"ActionAid calls on European countries to go beyond this feeble compromise agreement and adopt much stronger national rules which tackle tax avoidance by big companies at home and in developing countries."

Category: Industry News
Published: 18/07/2016 15:38
↧
Search

OECD set criteria for labelling countries as 'non-cooperative' tax jurisdictions

July 20, 2016, 1:50 am
$
0
0
Excerpt: The OECD has laid out criteria for determining whether a country is a “non-cooperative” tax jurisdiction.
Body:

The OECD has outlined a series of objective criteria that it claims will help it to determine whether a country is a “non-cooperative” tax jurisdiction with respect to tax transparency.

Pascal Saint-Amans, Director of the OECD Centre for Tax Policy and Administration, announced the measures during an OECD webinar on July 12th.

Under the scheme, which will soon be presented to the G20 for consideration, developing countries that do not have financial centres will not be deemed non-cooperative.

In other cases, a country looking to avoid the tag will have to meet certain conditions.

For instance, if the country receives a rating by the Global Forum on Transparency and Exchange of Information for Tax Purposes of “largely compliant” or higher in regards to information exchanges, it will not be labelled "non-cooperative".

Similarly, countries will avoid the label if they commit to adopting the automatic exchange of financial account information standard, and agree to apply the common reporting standard and begin exchanges by 2018.

Countries will also be exempt if they have signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, or indeed if they have provided a sufficiently broad information network that provides exchange of data on request and automatically.

However, Mr Saint-Amans says that outside of such criteria, a country will still be considered non-cooperative if it is rated as non-compliant at phase one.

He added that the OECD is also poised to recommend that the list of non-compliant countries not be published until July 2017 in order to allow extra time in order to correct their practices.

Finance ministers from across the G20 are set to meet in Chengdo, China, on July 22nd and 23rd, with discussions likely to revolve around how to create tax policies that promote growth while combating inequality.

Other topics will include increasing tax certainty in order to promote growth, trade, and investment.

Meanwhile, Mr Saint-Amans said a discussion draft on interest deductions in the banking and insurance sectors will be released on July 28th, with a draft on branch mismatch arrangements due for the week of August 8th.

The final round of negotiations for the multilateral instrument to introduce the OECD/G20 base erosion profit shifting (BEPS) plan agreements will take place at some point in September, with much of the text ready to be adopted by November.

Mr Saint-Amans therefore expects the new document to be ready for signature by the end of the year.

Category: Industry News
Published: 20/07/2016 09:32
↧

Is the UK set for a quick exit from the EU?

July 21, 2016, 7:01 am
$
0
0
Excerpt: The UK's exit from the EU is set to be most pressing issue for new prime minister Theresa May.
Body:

​Theresa May appears to have settled into her new role as prime minister this week, using her first prime minister's questions debut to launch a substantial attack on the credentials of Labour leader Jeremy Corbyn.

In a performance that saw her compared to former leader Margaret Thatcher, May is continuing to impress British Conservatives, many of whom regard the former home secretary as a tough-talking politician that does not shy away from getting her point across.

But while her parliamentary jibes against Corbyn will have certainly aided her reputation among the UK's right, May still faces a number of questions, particularly in light of the recent Brexit vote.

The decision to leave the European Union will undoubtedly take the UK into uncharted economic and cultural waters, so it is perhaps no surprise that May is understandably reluctant to activate the fabled Article 50 legislation without first coming to a decision as what will be the best process for the nation.

The new prime minister has subsequently asked European leaders for time to prepare for negotiations, a process that has sparked a whole range of possible timeframes from analysts. However, May has insisted that "Brexit means Brexit", meaning that goalposts look in little danger of being moved in terms of honouring the referendum results.

Close ties

May has already taken steps to try and ensure that Britain maintains a good relationship with Europe, particularly Germany.

Shortly after winning the leadership race, May spoke to German chancellor Angela Merkel, French president Francois Hollande and Irish Taoiseach Enda Kenny about what relations between Britain and Europe might look like within a post-Brexit world.

A Downing Street spokeswoman said: "On all the phone calls, the Prime Minister emphasised her commitment to delivering the will of the British people to leave the European Union.

"The Prime Minister explained that we would need some time to prepare for these negotiations and spoke of her hope that these could be conducted in a constructive and positive spirit."

According to the Daily Telegraph, a spokesman for German chancellor Merkel said that both countries had agreed on the importance of "friendly ties" during the exit process and in terms of long-term international relations.

Speedy exit?

But while Merkel seems willing to show patience towards the UK's Brexit plans, not everyone in Europe is seemingly so understanding.

During her call with French president Francois Hollande, May was urged to speed up the process of exiting the EU.

"The president of the republic has phoned Theresa May, congratulating her with the appointment to the post of the prime minister of the United Kingdom…The president reminded [May] about his wish to start talks on the UK exit from the European Union as soon as possible," the French presidency said in a statement.

That statement echoes the sentiments shared during a recent meeting between foreign ministers from the EU's six founding member states, which demanded the UK leave the bloc as soon as possible in order to avoid an extended limbo period.

A number onlookers in the UK may well view such thinking as another example of a lack of understanding from Europe, although there is evidence to suggest that waiting around could prove detrimental to certain British industries.

Financial services and technology law specialist Yvonne Dunn of Pinsent Masons, told Out-Law.com that the financial technology industry would be just one of the areas to be hit hardest by a prolonged period of uncertainty.

"A range of factors have contributed to the UK, and London in particular, having developed into a centre for fintech innovation," Dunn said. "The Financial Conduct Authority (FCA) is widely recognised as leading the world in terms of a progressive approach to fintech regulation and in engaging with fintech start-ups eager to operate in the UK market. It is one of the main reasons why fintechs looking to set up in Europe choose to base themselves in London and not other financial centres."

The exact time frame of a swift exit from the EU may well be subjective, but there is little doubt that negotiating HMS UK through the choppy waters of a post-Brexit world will surely be the first item on the new prime minister's agenda.

Category: Industry News
Published: 21/07/2016 14:44
↧
↧

EU-US Privacy Shield made into law - So what happens now?

July 25, 2016, 2:49 am
$
0
0
Excerpt: The EU-US Privacy Shield has now been made into law. But what happens next?
Body:

​The recent Brexit vote has thrown up a number of hugely pressing questions that will be at the very top of the agenda within the corridors of power of the UK government.

Preserving the UK's economic might will be one of the key priorities for new prime minister Theresa May, with technology expected to be at the forefront.

Handling and storing data has become one of the most important aspects relating to how many modern companies conduct their business, with organisations accumulating more information than ever before.

July 12th saw the European Commission officially adopt the EU-US Privacy Shield as law, with the measures aiming to protect the fundamental rights of anyone in the EU whose personal data is dealt with by the United States.

It also aims to bring clarity on the legal position for businesses that rely on transatlantic data transfers.

Upon the introduction of the new measure, Andrus Ansip, Commission vice-president for the Digital Single Market, said: "We have approved the new EU-U.S. Privacy Shield today. It will protect the personal data of our people and provide clarity for businesses. We have worked hard with all our partners in Europe and in the US to get this deal right and to have it done as soon as possible. Data flows between our two continents are essential to our society and economy – we now have a robust framework ensuring these transfers take place in the best and safest conditions".

Companies handling data under the arrangements will fall under a number of obligations, with the US Department of Commerce conducting regular updates and reviews of participating companies, in order to ensure that the rules are being followed.

If the US government does choose to access such information, the new directive will ensure there is greater transparency. It is perhaps worth remembering that the US has largely ruled out opting for indiscriminate mass surveillance on personal data transferred.

Indeed the rights of individuals will be protected under the measures, meaning that any citizen that suspects their data has been misused will have access to several dispute resolution mechanisms.

Organisations will have around two years to prepare and act as data borrowers and not owners. Under the measures data cannot be owned and is instead on loan, meaning customers can monitor how that information is used, decide who accesses it and can even demand its return. Companies will have to display the ability to audit and control the relevant processes.

A key process that will be at the centre of the new regulations is the requirement for companies to report any data breaches within 72 hours of it occurring. It means that many will have to ensure they have a plan in place.

Worryingly, a recent Cloud Security Alliance survey found that only 44.5 per cent of organisations said they had a process in place.

Failure to comply will see companies face heavy fines, with the new law set to raise the maximum fine to four per cent of its global revenue or €20 million, whichever is higher.

Despite the recent Brexit vote, the UK is by no means exempt from the new rules, with the measures covering the every current member of the EU, including the UK.

Published: 25/07/2016 10:45
↧

Rouse Partners’ Bindi Palmer wins prestigious award for services to accounting

July 27, 2016, 1:31 am
$
0
0
Excerpt: West of London based Praxity member, Rouse Partners have celebrated their Partner, Bindi Palmer, winning the British Indian Awards, for Services to Accounting 2016.
Body:

​West of London based Praxity member, Rouse Partners have celebrated their Partner, Bindi Palmer, winning the British Indian Awards, for Services to Accounting 2016.

The winners were announced at the award ceremony which took place at The Athena in Leicester on Friday 15 July. 

The British Indian Awards, presented by BDO, seek to recognise and reward individuals who have made contributions across various aspects of society including business, accounting, law, media and education. 

Now in their fourth year, the awards are decided by public voting and a panel of judges. Bindi faced competition in her category from six other finalists, three of whom were from ‘Big 4’ accounting firms. 

Recognising her contribution to the accounting sector, the judges commented that Bindi’s passion for international business, combined with client support offered through periods of significant regulatory change, gave her the edge in this category. In particular, they noted the need for such international skills and acumen in today’s business environment. 

Bindi commented, “It is a great honour to be recognised by the British Indian Awards. I would like to thank my team and fellow Partners for supporting me. We live in an internationally connected world and clients often need access to advice and support. Being recognised for my work in this area is very rewarding, and also an accolade for the hard work and determination of the whole team at Rouse Partners.”

To find out more about Rouse Partners team please visit www.rousepartners.co.uk​

Published: 18/07/2016 09:28
↧

China proposes global tax measures at G20 meeting

August 1, 2016, 6:47 am
$
0
0
Excerpt: China's finance minister Lou Jiwei has made several suggestions on how to improve global tax measures.
Body:

​China's finance minister Lou Jiwei has put forward plans to develop a new international tax system at the recent G20 meeting in Chengdu, as the global movement to close discrepancies in tax laws in various countries to combat tax evasion continues.

The meeting is the last of its kind until the G20 summit in September, with participating countries having already reached certain milestones in helping to reduce tax evasion.

A total of 85 nations have already agreed to measures that include combatting base erosion and profit sharing (BEPS).

Loui claims a new global tax system needs to be fair, equal, inclusive and organised in a way that is able to cope with globalisation, while boosting tax coordination and promoting economic growth in a sustainable way.

Doing so, according to Lou, would help to broaden global, regional and multilateral tax cooperation, while also avoiding overlap and discrimination.

His comments come amid the G20's reiterated calls for a standard to be set for the automated exchange of information by 2018, while there have also been fresh calls for the signing of the of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.

Currently, a total of 96 countries and regions have promised to exchange taxation information automatically.

Taxing e-commerce

April saw China place a tax on a goods imported by through e-commerce platforms by way of implementing a combination of  tariffs, value-added tax (VAT) and applicable consumer taxes.

That move ended the previous situation that saw consumers pay a small amount of tax on goods imported through e-commerce channels, which had previously undermined many domestic Chinese manufacturers.

While Lou agrees there is a need to tax e-commerce, financial technology and other public tech services, such as Uber, taxing the digital world was still difficult.

Other problems still in need of addressing include the reformation of property tax, which Lou claimed is unlikely to be drafted until legislators finish their term in 2018, despite being on the minds of government officials for 13 years as they try and strike a balance between boosting tax revenues without having an overly negative effect on the country's property market.

Lou may well be hoping that the focus on innovation at the upcoming G20 meeting will help to yield some more options, with Argentinian analyst Jorge Castro telling Chinese news agency Xinhua that finding new ways to get the global economy moving would be at the top of the agenda.

He told the news source: "The gathering in September of the G20 ... will show China's initiative in stressing innovation and the need to increase coordination to tackle a structural crisis that has led to the stagnation of the world economy."​

Category: Industry News
Published: 01/08/2016 14:38
↧
Viewing all 261 articles
Browse latest View live
More Pages to Explore .....
Search

Latest Images

Eco Data 4/26/24

Eco Data 4/26/24

April 25, 2024, 5:00 pm
‘Pay day every day’ may become Shangri-La Group, BPOs’ secret to happy employees

‘Pay day every day’ may become Shangri-La Group, BPOs’ secret to happy employees

April 25, 2024, 5:51 am
Nonprofit donates custom home in this East Bay city for Marine injured in...

Nonprofit donates custom home in this East Bay city for Marine injured in...

April 23, 2024, 7:00 am
New private rooms on Tokaido Shinkansen change the way we travel from Tokyo...

New private rooms on Tokaido Shinkansen change the way we travel from Tokyo...

April 22, 2024, 6:00 am
Ukraine bans military from online gambling amid addiction concerns

Ukraine bans military from online gambling amid addiction concerns

April 22, 2024, 5:17 am
ಮಂಡ್ಯದಿಂದ ಸುಮಲತಾ ದೂರ; ಹೆಚ್‌ಡಿಕೆ ಪರ ಪ್ರಚಾರಕ್ಕಿಳಿಯದ ಸಂಸದೆ –ಬರ್ತಾರೆ ನೋಡೋಣ ಎಂದ...

ಮಂಡ್ಯದಿಂದ ಸುಮಲತಾ ದೂರ; ಹೆಚ್‌ಡಿಕೆ ಪರ ಪ್ರಚಾರಕ್ಕಿಳಿಯದ ಸಂಸದೆ –ಬರ್ತಾರೆ ನೋಡೋಣ ಎಂದ...

April 20, 2024, 8:08 pm
OCBC Bank Singapore Offers Up to 2.8% p.a. Fixed Deposit Promotion from 21...

OCBC Bank Singapore Offers Up to 2.8% p.a. Fixed Deposit Promotion from 21...

April 20, 2024, 12:38 pm
National Poetry Month 2024: Maxine Starr

National Poetry Month 2024: Maxine Starr

April 19, 2024, 9:56 am
Vegan Chicken Pot Pie

Vegan Chicken Pot Pie

April 19, 2024, 9:18 am
Firefox UX: On Purpose: Collectively Defining Our Team’s Mission Statement

Firefox UX: On Purpose: Collectively Defining Our Team’s Mission Statement

April 19, 2024, 7:03 am