On June 30, the Organization for Economic Co-operation and Development (OECD) announced that 5 new countries have signed the Multilateral Competent Authority Agreement for the automatic exchange of country-by-country (CbC) reports (CbC MCAA), which facilities the exchange of certain confidential transfer pricing information recommended under Action 13 of the G20/OECD project to target base erosion and profit shifting (BEPS). It brings the total number of signatories to 39 countries.
Archive for Ronald Marini
On May 5, 2016, we posted Possible CbC Optional Reporting for 2016 Under Consideration by US Treasury, which discussed that the Treasury and IRS were working towards a solution that would allow optional country-by-country (CbC) reporting for 2016. Also, more work would be needed to ensure that allowing optional filing for 2016 in the US would be effective in obviating the need for local filing. The Treasury and IRS also requested that U.S. multinational corporations (MNCs) to engage in the global debate to ensure optional CbC reporting will be enough to protect U.S. MNCs from becoming subject to secondary reporting requirements.
According to Law360, A Minnesota federal judge has denied the IRS’ request to enforce a summons against a local criminal defense lawyer the agency accused of hiding tax-related information, agreeing with his Fifth Amendment objection citing the right against self-incrimination.
In the late 1980s, two Texas attorneys, John Porter and Stacy Eastland, introduced a new discounting technique relating to the formation of family limited partnerships, which resulted in discounts of 30% and more to the value of the artificially created family limited partnership (FLP). This technique was an anathema to the Internal Revenue Service; a review of many estate tax court cases litigated in the last 20 years involve the discounts taken on FLPs. The bulk of these discounts were related to intra-family transfers, many times saving millions of dollars in estate tax.
We previously posted Trouble for Offshore Bank Account Owners at Liechtensteinische Landesbank AG (LLB), which discussed tax problems for offshore bank account holders in Lichtenstein dates back to 2008 when information stolen from LGT Group was used by German authorities to prosecute tax fraud. The fallout extended to U.S. depositors at LGT who were investigated by the IRS. One of the U.S. depositors that got caught in this expanded IRS investigation was the defendant Steven Greenfield.
Today, Wednesday, August 10, 2016 is the deadline for Cayman Islands financial institutions to complete their notification and reporting of American clients’ accounts to the Cayman Tax Information Authority, under the US Foreign Account Tax Compliance Act (FATCA).
According to a spokesman for Liechtensteinische Landesbank AG (LLB), changes in Liechtenstein law allow the IRS to make group requests without providing the names of the specific individuals that the IRS is seeking. The spokesman also stated that in the Liechtenstein group request, U.S. authorities are also targeting lawyers, accountants, financial advisers, asset managers and those responsible for professional asset protection who “conspired” with U.S. taxpayers to commit tax evasion or other crimes. Apparently, the IRS may be seeking information all the way back to 2001.
The IRS has seen an increase in “robo-calls” where scammers leave urgent callback requests through the phone telling taxpayers to call back to settle their tax bill. These fake calls generally claim to be the last warning before legal action is taken. Once the victim calls back, the scammers may threaten to arrest, deport or revoke the driver’s license of the victim if they don’t agree to pay.
The Organization for Economic Cooperation and Development has asked the G20 governments to approve its proposed three-step formula for deciding which international financial centers are to be blacklisted as non-cooperative.
According to an OECD announcement on May 12, 2016 global tax transparency forum, Panama, Vanuatu, Bahrain, Lebanon, and Nauru have now formally committed to share financial account information automatically with other countries using the Common Reporting Standard (CRS). This raises to 101 the number of jurisdictions committed to implement information sharing in accordance with the OECD’s Common Reporting Standard.