taxInsight - 2015/06 – April INTERNATIONAL

2015/06 – April INTERNATIONAL from taxInsight

GST on imported goods and services

Since its introduction in July 2000, GST has been applied to imported goods over $1,000 in value but not necessarily on imported services. The Treasurer has indicated that he will introduce legislation to apply GST to intangible supplies provided by offshore companies into Australia.  These supplies could include media services and all other services which are charged by offshore companies but which benefit Australians. Mr Hockey said that these integrity measures were related to an OECD consensus – that GST should be charged at the source, so a company providing intangible services into Australia, such as media services, should charge […]

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New UK tax to hit non-UK companies and groups

Commencing from 1 April 2015, HM Revenue & Customs (the UK Tax Office, referred to as HMRC) will levy a Diverted Profits Tax (DPT).  This is intended to counteract diversion of profits from the UK.  It will be levied on companies that seek to avoid setting up a permanent establishment in the UK or that use arrangements or entities which lack economic substance. Hence: If: a non-UK company arranges for a company to carry on an activity in the UK for the supply of goods, services or other property, and doesn’t create a permanent establishment in the UK, and this […]

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Pressure on tax evasion using Switzerland

On 3 March 2015, the Treasurer announced that Australia and Switzerland had agreed to increase cooperation in order to tackle tax evasion. The Tax Office will automatically receive details of financial accounts such as investment income and balances that Australians hold in Switzerland, and use it to check against the income declared in their Australian Tax Returns.  The Swiss Federal Tax Administration will receive details of Swiss residents that hold financial accounts in Australia. This information will be on the basis of the OECDs Common Reporting Standard (CRS) and will be implemented from 2017 with the first exchange information in […]

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Do we need a ‘Google Tax’?

Recently, there has been considerable discussion about the level of taxes being paid in Australia by large overseas multinationals.  A Senate Committee is currently examining executives of companies such as Apple and Google who acknowledge very substantial revenue earnings in Australia, but stress they are fully compliant with current Australian tax law. Concern is being voiced about very high revenue earnings but low reported net profits and taxes. The Treasurer has stated that multinationals should pay tax where their income is earned.  He said that there would be more about this in the 2015 Federal Budget. Should a special tax […]

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