News

HMRC greatly underestimated the impact of European Union tax rules for digital services, according to a study by Enterprise Nation, a membership group for start-up businesses.

Two changes to the Foreign Account Tax Compliance Act (FATCA) reporting criteria have been unveiled ahead of the 31 May return deadline.

The first update means UK financial institutions are no longer required to file nil returns – although such a document will still be necessary to make an election where the institution is in a nil position through applying the de minimis $50,000 or $250,000 threshold on pre-existing accounts.

The planned devolution of tax powers to Scotland could result in a broad swathe of unintended complexities, including forcing many more taxpayers into self assessment, according to the Chartered Institute of Taxation (CIOT).

E-books are subject to VAT at the standard rate, making them distinct from printed titles with their reduced rate provisions, the Court of Justice of the European Union (CJEU) has determined.

The long-running debate on books’ discrepancy of rates between digital and print went before the court as the result of the European Commission’s infraction proceedings against Luxembourg and France for applying sales tax at reduced rates to e-books of 3% and 5.5% respectively.

The European Commission (EC) has unveiled its agenda to combat avoidance and aggressive tax planning, with a package of measure to increase tax transparency to be announced next month.

A key objective of the agenda is to ensure that companies are taxed where their economic activities generating the profits are performed, commissioners agreed at the first orientation debate on possible actions to ensure a more transparent approach to taxation in the European Union (EU).

The European Parliament is set to set up a special parliamentary committee to look into European Union member states’ tax rulings and “other measures similar in nature or effect”, and to make recommendations for the future.

The committee was agreed upon last week in the wake of a series of investigations by the European Commission (EC) into tax rulings for multinational companies in Luxembourg, Ireland, Belgium and the Netherlands.

Today’s autumn statement was a mixed bag for non-domestic taxpayers in the UK, experts have suggested, with the Chartered Institute of Taxation (CIOT) praising the announcement that there will be no changes to rules governing a non-residents’ entitlement to the UK personal allowance.

The government had proposed that a restriction should be introduced using an ‘economic connections test’ – but it will now not come into effect before April 2017, following a detailed consultation.

HMRC have uploaded a video guide for firms affected by VAT changes to the supply of digital services.

The YouTube clip comes ahead of 20 October, when businesses across the European Union will be able to sign up online for the Revenue’s new mini one-stop shop (MOSS) – which will remove the necessity to register for the tax with each country in which they provide broadcasting, telecommunications and e-services.

The UK is the first of 44 countries to commit formally to the new country-by-country reporting template proposed last week by the Organisation for Economic Cooperation and Development (OECD).

The move will improve transparency and help identify risks for tax avoidance, claimed financial secretary to the Treasury David Gauke.

He added, “In time, improved transparency between business and tax authorities will help developing countries in dealing with compliance, as they often lack the capacity to collect information themselves.

The Organisation for Economic Cooperation and Development (OECD) has revealed the opening strategies of its much-anticipated action plan for a coordinated international fight against tax avoidance by multinational enterprises.

The process for applying for a certificate of residence for a registered pension scheme has retooled with effect from 4 August.

Form APSS146E must be used by the owner of the scheme assets, or an authorised third party, to request a certificate.

There is no need to send another APSS146E if HMRC already hold a completed form that details who owns the assets.

If an APSS 146 has not been completed because the scheme owner has not previously reclaimed UK tax, he or she can apply for a certificate of residence providing in writing:

The European Commission (EC) has opened investigations into whether decisions about corporation tax to be paid by Apple, Starbucks and Fiat complied with European Union (EU) rules on state aid.

The commission has been examining tax practices in several member states, following media reports alleging that some big businesses received significant reductions by way of rulings issued by national tax authorities. Decisions can involve state aid if they provide selective advantages to a specific company or group of companies.