Nov 09, 2024 CBIC reduces compliance burden for customs cargo service providers

The CBIC on Friday said it has reduced compliance burden for customs cargo service providers (CCSPs) by reducing number of days for insurance of stored goods and removing licence renewal process for AEO-compliant entities. In a statement, the Central Board of Indirect Taxes and Customs (CBIC) said these measures aim to reduce operational costs and compliance burdens for CCSPs, that play a crucial role in handling of imported and exported goods. It would also improve efficiency of EXIM operations and facilitate global trade. The CBIC has notified reduction in the number of days for insurance of stored goods by amending the Customs Areas Regulations, 2009, which require CCSPs to insure goods stored in Customs areas for a period of 10 days in terms of Handling of Cargo. It has been notified to reduce it to 5 days as a trade facilitation measure. "This will enhance the cash flow for the entities by reducing the cost," the statement said.

Nov 09, 2024 Amnesty scheme for customs, easier taxes on India Inc's Budget wishlist

An amnesty scheme for customs, reduction in tax rates for individuals and Limited Liability Partnership firms, easier tax compliance, fast tracking of faceless appeals and a dedicated dispute resolution mechanism top India Inc's wishlist for the next Budget submitted to the government. Representatives from all four key industry bodies, CII, FICCI, ASSOCHAM and PHDCCI, have put forth detailed recommendations with regard to the Budget, to be presented on February 1, 2025, in separate meetings held with top Finance Ministry officials. Industry body FICCI sought the introduction of an "Amnesty Scheme under Customs" as a one-time settlement scheme to clear past dues, arguing that it will help the industry to reduce the baggage of litigation. Similarly, Assocham has also pitched for the introduction of a comprehensive Tax Amnesty Scheme under Customs. "A one-time settlement scheme to clear past litigations can be considered by the Government, on the lines similar to Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 for pre-GST era indirect taxes and Vivad Se Vishwas for Income tax," Assocham stated.

Dubai ends 30 per cent tax on alcohol sales, fee for liquor licenses

2nd Janurary, 2023

Dubai ended its 30 per cent tax on alcohol sales in the sheikhdom and made its required liquor licenses free to obtain, ending a long-standing source of revenue for its ruling family to apparently further boost its tourism to the emirate. The sudden New Year's Day announcement, made by Dubai's two state-linked alcohol retailers, came apparently from a government decree from its ruling Al Maktoum family. However, government officials did not immediately acknowledge the decision and did not respond to questions from The Associated Press

US House Committee releases 6 years of Donald Trump's federal tax returns

31st December, 2022

Former President Donald Trump’s partially erased tax returns were released by the House Ways and Means Committee. This was a longtime task of Democrats to make Trump’s tax returns and finances public after the former president inexpertly tried to stop them in the court.

The final documents which were released had the financial documents which covered six years of Trump’s individual returns filed together with his wife, Melania, during his time in the White House.
The erased documents also had several tax forms of Trump’s business operations that were found by the Ways and Means Committee. There were about 6,000 pages of forms, which included 2,700 pages of self-made returns and more than 3000 sheets from Trump’s business operations.
The tax forms also gave data into the state of Trump’s finances which were from 2015 to 2020 as he mounted his third bid for the presidency in 2024. Other information such as his Social Security and bank account numbers were kept hidden.

31st DECEMBER, 2022

The tax returns of Donald Trump, former US president, will be made public. The return tax papers are expected to include the records of the returns he filed from 2015 to 2021, covering the presidency and pre-presidency period. A US House of Representatives Ways and Means Committee spokesperson released the information of the much-awaited news. The Democrats obtained the tax return papers of Donald Trump after the investigation and a lengthy court battle. The issue reached the US Supreme Court, where the decision was made in favour of the investigation committee.

The investigation committee obtained the papers last month. It released a report which states that Donald Trump was not audited for three years during his four years presidency by the Internal Revenue Service (IRS), breaking the rules of the IRS.

 

EU adopts global minimum 15% tax on multinationals

16th December,2022

The European Union on 16^th December,2022 adopted a plan for a global minimum 15% tax on multinational businesses, after leaders gave final approval following months of wrangling.The landmark agreement between nearly 140 countries is intended to stop governments racing to cut taxes to lure the world's richest firms to their territory."Today the European Union has taken a crucial step towards tax fairness and social justice," EU economy commissioner Paolo Gentiloni said."Minimum taxation is key to addressing the challenges a globalized economy creates."The plan was drawn up under the guidance of the Organization for Economic Cooperation and Development and already had the backing of Washington and several major EU economies.

Tax-authorities tighten noose around under-invoicing of Chinese imports

• Dec 06, 2022
  
  
  Tax authorities in India are investigating under-invoicing of goods imported from China after the trade data highlighted a glaring difference of around $12 billion in the data sourced from China and India, the Economic Times reported. On comparison, the trade data from the two countries show invoiced imports into the country are far less than exports from China to India. Taking cognizance of the same, the customs authorities have issued tax-evasion notices to 32 importers since September.
  
  
  Tax authorities suspect a tax evasion of more than Rs 16,000 crore through under-invoicing by businesses from April 2019 to December 2020. And more such notices are likely to be issued by the tax authorities in the coming days, the report said.

DTAA amendment by Australia likely to come into force from April 1

Dec 06, 2022                                                                                                                                                                                                                                                                                The double tax avoidance agreement (DTAA) ratified by Australian Parliament, along with its trade deal with India, may come into force on April 1 next year, the finance ministry informed the commerce ministry on Wednesday. The DTAA is expected to eventually lead up to $1 billion in savings for Indian information technology (IT) companies operating in Australia, from the present-day $200 million. “The Australian government has communicated to us that the DTAA will likely come into effect on April 1, 2023. Our finance ministry has also agreed to it since our fiscal year begins from that date,” said a government official.

DTAA amendment by Australia likely to come into force from April 1

• Nov 24, 2022
  
  

• • The double tax avoidance agreement (DTAA) ratified by Australian Parliament, along with its trade deal with India, may come into force on April 1 next year, the finance ministry informed the commerce ministry. The DTAA is expected to eventually lead up to $1 billion in savings for Indian information technology (IT) companies operating in Australia, from the present-day $200 million.“The Australian government has communicated to us that the DTAA will likely come into effect on April 1, 2023. Our finance ministry has also agreed to it since our fiscal year begins from that date,” said a government official.

Indians with hidden income in US on I-T radar: Report

• Apr 04, 2022

• Indians with hidden income in the United States (US) may face legal action under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, in the Financial Year '23. According to the internal action plan of the Central Board of Direct Taxes (CBDT) for FY23, persons named in global leaks may be searched, shown-caused, and prosecuted, according to a report in the Business Standard. The publication has also reported that tax officials across the country have been instructed to investigate any cases discovered during the verification of data received on or after April 1, 2022, under the Foreign Account Tax Compliance Act (FATCA), Automotive Exchange of Information (AEOI), and Common Reporting Standard (CRS).

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India seeks changes in pact on taxation with Australia

• Jul 15, 2022

India has asked Australia to expedite amendments to regulations pertaining to the Double Taxation Avoidance Agreement (DTAA), in accordance with an understanding reached between the two sides in April, as Indian information technology (IT) companies that operate in that country continue to be forced to pay more taxes than they should. Minister of state for commerce and industry Anuria Patel has told visiting deputy premier of Western Australia province Roger Cook that the amendment should be done at the earliest to stop taxing the offshore income of Indian firms providing technical support there, the commerce ministry said on Thursday.
Both the sides also acknowledged the need for an early ratification of the interim trade deal, or the India Australia Economic Co-operation and Trade Agreement (ECTA), which was signed in April. Canberra’s decision to tweak its domestic law to stop such taxation is a part of the India-Australia ECTA.

Tax bill worries: No work calls or mails on Indian vacation, MNCs tell executives

• Aug 08, 2022
  
  

• A partner with a London-based Magic Circle law firm was visiting Mumbai to meet family but during his vacation he had to connect with an Indian client who's looking to raise some money from the overseas bond market. He and the client, along with another senior partner from an Indian law firm, held the meeting in Singapore. All three then flew back to India.
  As Covid-related travel curbs are lifted, many multinationals, as part of documented policy, are telling overseas employees vacationing in India to avoid taking office laptops or doing any sort of work while they are in the country. The fear is that if the employees respond to an email or attend a video conference, it could potentially end up in a large tax bill or lead to other regulatory issues.
  "Some foreign law firms that do not have an office or permanent establishment (PE) in India have a policy that their partners and employees while visiting India should not carry office laptops or should not carry out work like con-calls or respond to official email," said Sujjain Talwar, cofounder and partner at ELP. "The fear is that doing so could result in even the global revenues getting taxed in the country."

Tax appellate tribunal ruling: FPI income not subject to MAT provisions

• Aug 12, 2022
  
  

• A ruling by the Mumbai Income Tax Appellate Tribunal this week has held that the provisions of the Minimum Alternate Tax, or MAT, do not apply to foreign companies, including foreign portfolio investors (FPIs).
  Tax experts reckon this is a welcome judgment for FPIs which are foreign banks or reinsurance companies also having an Indian branch. It affirms the view that income of overseas branches of foreign banks, registered as FPIs, will not be automatically subject to MAT provisions, and that treaty provisions override the provisions of the IT Act, which include MAT provisions.
  “Foreign companies in general will fund this ruling to be a reaffirmation of the principle that MAT does not apply to them. In any case, the decision that MAT does not apply to income that does not get recorded in the books of account will be useful to all taxpayers,” Anish Thacker, partner at EY India, said.The case is for AY2015-16 and pertains to the Singapore branch of Credit Suisse, a Swiss bank, which is registered with Sebi as an FPI.

• Aug 17, 2022
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  India will ask Australia to amend its domestic law swiftly for the resolution of the tax issue being faced by Indian IT companies under the double-taxation avoidance agreement (DTAA), when trade ministers of both nations meet here next month, sources told FE.

Most foreign jurisdictions reply to Pandora queries

• Sep 02, 2022
  
  

• The Financial Intelligence Unit (FIU), a key unit of the multi-agency probe into the 2021 global offshore investigation called the Pandora Papers, has received responses from its counterparts in over three-fourths of the requests it sent to 33 foreign jurisdictions.Officials said that using the network of FIUs in mostly the offshore havens mentioned in The Indian Express investigation (October 4-16, 2021), the FIU sent out 160 requests to foreign jurisdictions and has received responses in 125 cases so far.

OECD norms to bring clarity on crypto tax

Oct 12, 2022

The Organization for Economic Co-operation and Development (OECD) has submitted a Crypto-Asset Reporting Framework (CARF) to the G20 to increase global transparency in the reporting of tax information on transactions in crypto-assets in a standardised manner. The mechanism will facilitate automatic exchange of information among jurisdictions on an annual basis.

Tax-Authorities Tighten Noose Around Under-Invoicing of Chinese Imports

Nov 15, 2022

Tax authorities in India are investigating under-invoicing of goods imported from China after the trade data highlighted a glaring difference of around $12 billion in the data sourced from China and India, the Economic Times reported.

On comparison, the trade data from the two countries show invoiced imports into the country are far less than exports from China to India. Taking cognizance of the same, the customs authorities have issued tax-evasion notices to 32 importers since September. Tax authorities suspect a tax evasion of more than Rs 16,000 crore through under-invoicing by businesses from April 2019 to December 2020. And more such notices are likely to be issued by the tax authorities in the coming days, the report said.