Apple’s tax spat could blight European banks 31 Aug 2016 The tech giant’s $14.5 bln EU tax bill has shades of a $9 bln U.S. fine handed to BNP Paribas in 2014. Despite big differences, both have the whiff of a transatlantic raid on those deemed able to pay. EU banks awaiting U.S. fines, like Deutsche Bank and RBS, have cause to fret.
Europe’s bite at Apple could leave bad aftertaste 30 Aug 2016 The European Commission wants companies to pay their fair share of tax. Zeroing in on Apple’s alleged sweetheart deal with Ireland fits that agenda. But it could misfire. Reeling from Brexit, Dublin might feel pressure to make itself even more friendly to corporate taxpayers.
EU offers vitamin pill to dying media patient 26 Aug 2016 Brussels wants to give media the right to seek compensation from search engines like Google that use online content. The intention is laudable - some publishers may be losing out. But the proposal has similarities with schemes in Germany and Spain - which haven’t worked.
Apple tax fight is two wrongs in search of a right 25 Aug 2016 A spat between the U.S. and Europe over how firms like the iPhone maker, Amazon and Starbucks pay taxes shows the worst of both sides. America meddles, and Europe moralises. At heart is an issue both sides’ citizens should support: big companies too often avoid paying their dues.
Hillary Clinton slips through Trump tax loophole 12 Aug 2016 The Democratic nominee revealed that she paid a 34 pct tax rate last year. Over $10 mln of income also cements her in the 1 pct with inequality an election focus. Trump's refusal to release his own returns makes Clinton's wealth and its origins harder for Republicans to assail.
Tax overhaul boosts Modi’s reform credentials 3 Aug 2016 India is set to pass a bill paving a path to a long-awaited goods and services tax. Exemptions will dilute the potential boost to growth. But the bill is evidence that the prime minister can compromise to get things done. That bodes well for a long wish list of other reforms.
Yahoo’s failure clarifies future for U.S. spinoffs 15 Jul 2016 The Treasury modified regulations on when splits can qualify for tax-free treatment. The move comes after the IRS declined to bless Yahoo's carve-out of its Alibaba stake. Similar deals have been on hold since. This reasonable government approach provides much-needed clarity.
Post-Brexit upheaval complicates Irish tax rethink 15 Jul 2016 Ireland faces a slating from the EU for an alleged sweetheart taxation deal with Apple. The optimistic view is that both OECD and domestic reforms mean Brussels is pushing against an open door. Yet moves by the likes of the UK to slash tax rates could slow any reinvention.
Cairn spells out cost of India’s “tax terrorism” 13 Jul 2016 The UK energy group has asked an international arbitration panel for at least $1 bln in compensation from New Delhi. That is the potential cost of Narendra Modi's failure to end retrospective tax claims. It would have been cheaper for the prime minister to honour his pledge.
U.S. anti-inversion push has a harmful flipside 7 Jul 2016 Treasury's plan to rein in tax-motivated overseas M&A takes aim at intercompany loans. It's a good idea to curb so-called earnings stripping where deductible interest is sent to an overseas parent. The proposed rule is broad, however, and could hurt normal funding practices.
UK’s tax cut goal: calm business, scare Brussels 4 Jul 2016 George Osborne has plans to cut the UK's already-low corporate tax rate to near-Irish 15 pct levels. It might stop domestic business jumping ship post-Brexit. But the prospect of a tax haven UK also acts as a bargaining chip to use in forthcoming exit negotiations.
London’s divorce from wider UK can only go so far 1 Jul 2016 The capital's new mayor is right to seek greater tax autonomy. But after a divisive vote in which Londoners wanted to stay in the EU, the trick is to do so without increasing divisions with the rest of the UK. Offsetting devolution with lower grants is a good place to start.
Asian amnesties point to wealth of tax worries 1 Jul 2016 Authorities in India and Indonesia are doubling down on efforts to persuade citizens to declare their assets. The schemes in both countries are very different but could provide a welcome boost to tax revenues. New global rules could also help governments reap a big windfall.
Saudi reform plan dodges most taxing question 7 Jun 2016 Income tax is perhaps the missing link in the kingdom’s latest plan to modernise the economy. Saudis currently keep all their earnings. That isn’t compatible with a record budget deficit. Taxing wages is a taboo, but it’s also the best way to diversify away from oil dependence.