Tuesday, May 26, 2020

U.S. mulls paying companies, tax breaks to pull supply chains from China

 “We cannot lead anyone farther than we have been ourselves.”

 – John C. Maxwell

U.S. mulls paying companies, tax breaks to pull supply chains from China

WASHINGTON (Reuters) - U.S. lawmakers and officials are crafting proposals to push American companies to move operations or key suppliers out of China that include tax breaks, new rules, and carefully structured subsidies.

“We are currently reviewing these arrangements and engaging with taxpayers who have entered into, or are considering entering into, these arrangements,” said the alert from tax commissioner Chris Jordan.

The Australian Taxation Office is investigating foreign investors who “mischaracterise” finance and equity injections into local businesses to avoid tax that could be referred to the Foreign Investment Review Board.

As part of its scrutiny of cross-border tax evasion, the ATO said it was reviewing schemes that involve foreign companies or individuals lending to Australian businesses that are unable to secure traditional finance and that produce financing arrangements that could result in both sides avoiding Australian tax.

Australian Taxation Office commissioner Chris Jordan. Dominic Lorrimer

In a taxpayer alert sent to market participants including tax practitioners who may be promoting such schemes, the ATO said it would consider pursuing companies for tax avoidance if they were intentionally reducing taxable income, diverting profits or engaging in transfer pricing.

ATO cracks down on foreign investment


Ex HMRC accountant in £120k tax fraud

An accountant who was a former HMRC employee, and who wrote a guide to beating the tax authorities, has been found guilty of a £120,000 tax fraud

Martyn Arthur, based in Porthcawl, originally joined the Inland Revenue (now HMRC) in 1968. After leaving in 2005 to work in private practice, he wrote the book Taxpayer Strikes Back about how to challenge HMRC.

In the book, which was published in 2009, Arthur claimed to know the system ‘inside out’ and provided tips on how to ‘stand up’ to HMRC.




COLLUSION: U.S. Colleges Have Accepted $6 Billion in Undisclosed Donations from Foreign Governments, DOE Probe Finds.