Essence of the scandal
On April 29, a publication on the use of thousands of SLP in criminal activities appeared in the British newspaper The Times. According to the British officials, SLP was used through shills in complex schemes for money laundering. In particular, by means of the scheme, including more than 100 Scottish Limited Partnerships, about 58 billion pounds sterling, accumulated illegally, was withdrawn from Russia. More than 20 SLP was used in a fraudulent scheme, by means of which about 742 billion pounds sterling was withdrawn from Moldova. There is also a link between SLP and organized criminal groups from Eastern Europe for the purpose of conducting weapon delivery deals.
All this became a reason for the announcement of the beginning of struggle against fictitious companies by Britain. And on the next day, April 30, a consultative document was posted on the official website of the British government with a number of proposals on reforming the legislation on limited partnerships to reduce the risks of their use in criminal schemes.
Importance of Limited Partnerships
It is worth noting that a Limited Partnership (LP), including its Scottish form, continues to...
The newspaper ‚ÄúJournal du Dimanche‚ÄĚ previously published information about the intentions of the French President Francois Hollande to hold a meeting with the leaders of Germany, Spain and Italy on March 6 in Versailles, dedicated to the future of the European Union. This mini-summit, among other things, should have to demonstrate the unity of the leaders of the four major European powers of the euro zone in the face of the many threats and crises that the EU is currently facing. The agenda also included the study of the issues ‚Äúrelated to ensuring the strengthening of the development of the European Union‚ÄĚ.
On March 6, the government supported the changes to the Law on the Financial Instruments Market, the Law on Alternative Investment Funds and their Managers, as well as the Audit Services Act. What is the ultimate goal of these changes? They should make the EU financial market more transparent and stable, reduce systematic risks, protect depositors, and ensure the effectiveness of financial markets and reduce the costs of their participants. The changes in the laws have been designed to adopt the Directive of the European Parliament and the Council on the markets of...
In a press release of January 29, 2018, the Council of Europe announced the second set of additional directives on the negotiations detailing the position of the EU-27 (27 EU Members without the UK) regarding the transition period with respect to Brexit. These directives give the Commission the authority to initiate discussions with the UK on the terms of Brexit and establish a transition period, no longer than until December 31, 2020.
During the transition period in the UK, full and constant application of the EU legislation is provided. However, the state will no longer participate in the EU administration and the decision-making process.
On January 30, 2018, the EU Commission published a document warning the companies of the key challenges in the customs and VAT that they will have to be overcome when the United Kingdom is not a Member of the EU. If no other transition period is agreed between the EU and the UK, the European Customs and VAT regulations in the UK will no longer apply from March 30, 2019, as the UK officially announced its intention to leave the EU on March 29, 2017. This document provides a brief overview of the customs and VAT implications that will arise...
On December 5, 2017, the European Council adopted amendments to the legislation regulating VAT rules for online sales of goods and services in Europe, developed by the European Commission a year ago. These legislative changes were adopted within the framework of the strategy of ‚Äúsingle digital market‚ÄĚ and aimed at simplification of the payment of VAT on purchases of goods and services on the Internet by the European consumers.
The changes assume:
simplification of the current Mini One Stop Shop (MOSS) mode for cross-border telecommunications, broadcasting and electronic services
transition to taxation at the place of destination (location of the recipient) and simplified reporting through MOSS for remote sales of goods
introduction of an obligation to pay VAT for electronic interfaces (for example, platforms) that facilitates the delivery of low-value goods imported or sold in the EU by the suppliers from outside the EU
Since the new legislation consists of a two-tiered package of measures, it comes into force in two phases: in 2019 and 2021. From 2019, the changes will touch the MOSS system. There is an exception that allows micro-enterprises of the EU to pay for...
The format and methods of delivery of many goods refer them to the category of services, especially if they are transmitted over the Internet, such as e-books, music downloads, streaming of content. The regime of VAT for this particular subcategory of services provided electronically has undergone significant changes lately. In this blog, we will consider the requirements of the current European legislation, and we will try to cover the coming changes in this area in the next ones.
In accordance with the European legislation, came into effect from January 1, 2015, telecommunications, television and radio broadcasting, as well as electronic services, are subject to VAT at the location of the client, whether it is a business or a consumer, located in or outside the EU .
However, in order to ensure the correct taxation of these services, the supplier needs to determine the status of his client (whether he is a VAT payer), as well as his location.
The easiest and most reliable way to define whether a customer is a business or a consumer is to ask him for a VAT number. Suppliers can check the VAT numbers of their customers using the website of the VAT Information Exchange System...
Yesterday, on January 17, the Cabinet of Ministers of Ukraine approved an order ‚ÄúOn the approval of the development concept of the digital economy and society of Ukraine for 2018-2020 and approval of a plan of action for its implementation‚ÄĚ. This is reported by the IA ‚ÄúRBC-Ukraine‚ÄĚ.
The project is mainly aimed at implementing the initiatives of the ‚ÄúDigital Agenda of Ukraine-2020‚ÄĚ in order to remove the barriers for the digital transformation of Ukraine in the most promising fields by stimulating the economy and attracting investments, as well as overcoming the digital inequality, deepening cooperation with the EU in the digital sphere and developing innovative infrastructure of the country and digital transformations.
The Prime Minister of Ukraine Vladimir Groysman wrote about it on his Facebook page: ‚ÄúThe adopted Action Plan is very ambitious and innovative - it provides for the development of Industry 4.0, smart factory, digital jobs, STEM-education and digital educational services, digital infrastructures for the Internet things, blockchain, eHealth and e-security, etc. Ukraine is obliged today to launch a large-scale digitization of all branches of the economy...
Recently in Australia, the reform of the regulatory environment concerning online gambling has been started. The proposed amendments to the basic federal law on gambling (Interactive Gambling Act - IGA) are at the final stage of consideration by the Australian parliament and are likely to be adopted at the next parliamentary session.
The purpose of the bill on amending the IGA (hereinafter - the Bill) is the combat with illegal offshore gambling and provision of additional enforcement powers to the federal regulator - the Australian Communications and Media Authority (ACMA).
1. Requirement for licensing in Australia
The draft law defines the concepts "regulated interactive gambling services" and "prohibited interactive gambling services". The main difference between these two categories of services is that it is not allowed to provide prohibited interactive gambling services to the individuals in Australia, while regulated online gambling services may be provided, but only by the operators licensed by the Australian regulator and authorized to provide data services in accordance with the terms of their license.
Previously, the certain services classified according to the Bill...
James Pearson, the CEO of the Australian chamber of commerce and the industry (ACCI) told that the country "needs tax reform on a wide basis, but not gradual approach for the purpose of stimulation of economic growth".
The real gross internal product (GIP) as predict, grows for two percent in 2016-17, and for 2.75 percent in 2017-18. The main cash deficit as expect, will fall from 2.1 percent of GDP in 2016-17 to 0.5 percent in 2019-20. The net debt as it is supposed, will reach a maximum in 19 percent of GDP in 2018-19, and then will decrease for the medium-term period approximately to 10 percent. The size on recovery of the budget that took place from a general election in May, costs more than 22 billion Australian dollars (16 billion US dollars).
The treasurer Scott Morrison told that for maintenance of economic growth, the government will continue to perform the plan for workplaces and growth that will allow to raise level of living and will support a profit increase. He told that the government remains careful in taxation by high taxes of the Australian economy on the ground that it limits growth and therefore the income. This assumption provides to the government...
On December 6 meeting, the EU's Economic and Financial Affairs Council (ECOFIN) approved a number of measures for improvement international observance of the tax legislation.
Specifically, the ECOFIN provides access for tax authorities to information, held by authorities responsible for prevention of money laundering; reached a consensus on the Directive project that aimed at closing of ‚Äúhybrid mismatches‚ÄĚ with the taxation systems of three countries; also made the decision concerning the offer to recommence the common consolidated corporate tax base (CCCTB).
The Directive on exchange of information on beneficial owners of the companies it is intended to support tax authorities controlling the correct application of tax rules, thereby helping to prevent tax avoidance and tax fraud.
At the second stage after the intensive discussions, Council agreed to stabilize the document for the majority of provisions Directive's plan about hybrid mismatches, leaving only two questions to solve them on the next weeks: rules that would allow Member States to apply the limited benefits and date of realization.
‚ÄúThis directive will prevent corporate taxpayers for exploiting...
On November 23 the amendment of Treasurer laws (fair and stable pension) the bill of 2016 and contributions to the pension fund (excess tax balance transfer) taxation bill in 2016 was adopted.
In joint release, the Treasurer Scott Morrison and the minister of the income Kelly O'Dwyer told: "The package of proposals on reform of pension fund contributions, the best purpose of tax benefits to make our pension system fair and stable as aging of the population and tax difficulties increase."
The legislation performs following operations:
allows for pensioners to make, "approximation" to concessional contributions with balance below 500,000 Australian dollars;
introduce the maximum amount of the transfer balance of 1.6 million Australian dollars, sets the amount of restriction, which person can transfer into the pension phase of the non-taxable income;
removes "10 percent rule" (the profitable test) to provide equal conditions for access to pension fund contributions of tax benefits, irrespective of a situation of employment person;
introduces tax compensation of the pension low income.
Such measures will come into force since July 1, 2017.
"Ninety six percent of people...