Tax / TAG Tax (J)
Meet the Co-chairs - TAGLAW
Williams Mullen (VA)
Meet the Co-chairs - TIAG
Mercer & Hole
Fineman West & Co. LLP
Meet the Co-chairs - TAG-SP
Collins Barrow Toronto LLP
It is not news that globalization and internationalization of companies are phenomena that need to be considered by modern tax administrations. In many situations, such as tax evasion, harmful tax competition and money laundering, domestic statutes seemed to be ineffective in a global dimension. To cope with that, new forms of regulation have emerged.
Recent amendments to Philadelphia’s realty transfer tax will likely change the way commercial real estate is bought and sold. Rather than sell the real estate directly and record a traditional deed to evidence the transaction, it is common practice to sell ownership interests in the company that holds title to the real estate. This approach often significantly reduces the realty transfer tax due as a result of the transaction because the value used to compute the tax is based on the property’s assessed value, which is often lower than the purchase price for the company. Moreover, selling less than 90% of the equity in the company does not trigger any tax at all, provided the seller holds the remaining equity for at least three years.
On 1 November 2016 the amendments to the Income Tax Act entered into force in Estonia adopting the amendments of the EU Directive No. 2011/96/EU on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States (hereinafter the Directive). The aim is to apply the general anti-abuse clause regarding the division of profits between parent companies and subsidiaries as well as to avoid double non-taxation with regard to hybrid loans.
By: Kevin Yehezkiel N. (Associate)
To support the implementation of Law No. 11 of 2016 regarding Tax Amnesty (“Tax Amnesty Law”), the Financial Services Authority (Otoritas Jasa Keuangan or “OJK”) enacted OJK Circular Letter No. 35/SEOJK.04/2016 regarding Mandatory Tender Offer as the Consequence of Public Company Acquisition in connection with the Support of the Tax Amnesty Law (“SEOJK No. 35/2016”).
SEOJK No. 35/2016 came into effect on the day it was enacted, i.e., 2 September 2016, which will be in effect until 20 (twenty) working days following 31 March 2017. Prior to the issuance of SEOJK No. 35/2016, OJK has already issued OJK Regulation No. 26/POJK.04/2016 regarding Investment Product in the Capital Market in Supporting the Tax Amnesty Law. By enacting SEOJK 35/2016, OJK aims to provide further implementation on the exemption from the obligation of (i) disclosure of information and (ii) mandatory tender offer under BAPEPAM-LK Reg No. IX.H.1 to support the enforcement and implementation of Tax Amnesty Law.
The effects of globalization and increased capital mobilization have forced most states to take extreme measures when tracing international transactions of taxpayers in order to combat base erosion and harmful tax competition. The differing tax ratios applied by states as a result of their tax policies made it possible for certain taxpayers to conclude their transactions with significantly lower tax burdens. In the aftermath of the economic crisis of 2008, the states all around to world were incentivized to cooperate in order to take measures to prevent wealthy individuals and entities to park their capital to tax havens in order to evade paying tax. More recently, the Panama Papers, a massive amount of confidential documents leaked on April 2016, attracted global attention to tax secrecy and tax havens.