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Russia has another surprise for the foreign companies preparing to pull out of the country with a plan for a new levy on top of demanding they sell at a 50% discount and get government permission to leave. A windfall tax being rolled out in Russia will also apply to those lining up an exit deal, according to people familiar with the plans. It could alternatively factor into the price negotiated as part of the divestment, they said. There will be no exemption because the budget needs the money, the people said, speaking on condition of anonymity to discuss matters that aren’t public. Russia’s Finance Ministry didn’t immediately respond to a request for comment on Wednesday. Faced with an exodus of foreigners after the invasion of Ukraine last year, the Russian government moved to exact a higher cost by means of what it called a “voluntary contribution” to the budget and requiring a discount of companies from countries it deems unfriendly. A queue of candidates to leave Russia includes the likes of Volkswagen AG and lenders UniCredit SpA and Raiffeisen Bank International AG.
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Global mining giant Glencore plc asked a Canadian court to remove C$101.5 million ($74 million) from its income tax bill on Wednesday, arguing the money did not come from ordinary, day-to-day business and can’t be considered regular revenue. Read More|Documents Attached
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Canada’s national tax authority warned Wednesday of service disruptions as 35,000 tax workers went on strike alongside other federal public employees over pay and work conditions. Read More
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IRS Commissioner Danny Werfel told lawmakers Wednesday that more details are coming soon on how the agency plans to spend the $80 billion it got in last year’s tax-and-climate law over the next decade. Read More
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Chile’s government failed to garner enough opposition support to push through a modified copper royalty bill, with a Senate vote pushed back from this week until May, La Tercera reported. Read More
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KPMG’s Dubai arm said Wednesday that it was appealing a large court fine related to its audits of a bankrupt investment fund. Read More
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Chile President Gabriel Boric tapped a respected lawmaker for his cabinet after his top liaison with congress resigned for health reasons, just as key bills including a mining royalty are bogged down in legislative talks. Read More
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Japanese Prime Minister Fumio Kishida said he has no intention for now to raise the sales tax as his government sets off on a plan to boost military spending and provide financial incentives to help reverse a falling birthrate. While Japan’s sales tax at a maximum of 10% is relatively low by international standards, raising it has typically upended the economy, making the ruling coalition reluctant to resort to further increases. Read More
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Belgium has incorrectly implemented EU anti-tax avoidance rules and must explain itself before the bloc’s highest court, the European Commission announced Wednesday. Read More
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Italy’s economy probably returned to “modest” growth in the first quarter of this year as employment improved along with consumer and business confidence, according to the central bank’s calculations. Prime Minister Giorgia Meloni unveiled the government’s budget earlier this month which included a more expansive fiscal outlook for the year, allowing for some €3 billion ($3.3 billion) in tax cuts. That in turn, is expected to help push gross domestic product higher. Read More
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Emmanuel Macron’s government outlined a plan to accelerate debt reduction that would require the state to make unpopular cost savings, just as the embattled French leader tries to turn the page on his unpopular pension reform. Finance Minister Bruno Le Maire said a key plank of the debt-reduction strategy will be boosting output: labor reforms including the pension overhaul are expected to spur job creation, while tax cuts would further fuel activity. Read More
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Black Tax Pro Highlights Benefits of Small Business (Podcast)On this latest episode of the Talking Tax podcast, Carmela Walrond, partner at JLD Tax in New Jersey, speaks with legal reporter Jeff Leon. She shares her experience as a Black woman advising small businesses on tax matters after working for Big Four accounting and law firms.
Walrond’s small business helps clients settle cases with the Internal Revenue Service, including assisting on preparation for audits, entity formation, and other tax services. Walrond reached out after listening to a podcast episode from February, Black Tax Leader on Driving Diversity in the Field (Podcast). Listen hereand subscribe to Talking Tax on Apple Podcasts, Spotify, Google Podcasts, Stitcher, Megaphone, or Audible.
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Perspectives From Tax Practitioners and Other Thought Leaders
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By Aleksandra Bal of Stripe Different types of price reductions are used by businesses to attract new customers, clear inventory, and increase sales. They may have value-added tax implications and Aleksandra Bal of Stripe looks at the potential compliance and reporting requirements for businesses. Read More
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Save the Date: How to Manage and Improve ProductivityFind out how you can be more productive by working more efficiently—not harder or longer—by joining the Bloomberg Tax and Bloomberg Law Insights & Commentary teams from noon to 1 p.m. on April 26 for the latest installment of our free virtual Lunch & Learn series. We’re bringing back the Order Expert, Rashelle Isip, a New York City consultant who helps professionals, entrepreneurs, and companies effectively manage their time, energy, and resources so they can reduce stress, work less, and make more money. Join us for this free virtual event, no registration required, by signing on here at noon on April 26 or by calling 1-646-931-3860 and entering the meeting ID: 924 7270 5722. Learn more
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The Australian Official Gazette April 17 published Act No. 46, on the consolidated text of the Social Security Act 1991, as of March 30. [Australia, Government Legal Database, 04/17/23] Read More|Document Attached
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The Belgian Chamber of Representatives April 12 accepted for consideration Bill No. 55K3301001, to ratify the air transport agreement with Tanzania, signed Nov. 3, 2021, which would replace the 1978 ... Read More|Documents Attached
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The Canadian Revenue Agency April 17 issued updated frequently asked questions (FAQs) on the underused housing tax (UHT) that applies as of Jan. 1, 2022, to vacant or underused housing. ... Read More|Documents Attached
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The Croatian Tax Administration March 14 clarified the taxation of liquefied petroleum gas (LPG) in household bottles. A taxpayer sought clarification on the application of a 25 percent VAT rate, ... Read More|Documents Attached
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The Danish Customs and Tax Administration April 17 posted online National Tax Court Decision No. SKM2023.170.LSR, explaining the tax treatment of profits and losses from trading in digital currency. The ... Read More|Documents Attached
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The European Commission (EC) April 17 announced Decision No. C(2023) 2490, extending the end date, to Dec. 31, 2023, from Dec. 31, 2022, for the temporary waiver of customs duties ... Read More|Documents Attached
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The Maltese VAT Department April 18 announced the May 15 return filing and payment deadline for VAT. [Malta, The Commissioner for Revenue, 04/18/23] Read More|Document Attached
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The Polish Official Gazette April 14 published a law ratifying the DTA and protocol with Brazil, signed Sept. 20, 2022. The law enters into force and generally takes effect April ... Read More|Documents Attached
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The Swedish Tax Agency March 9 issued Advance Notice No. 87-22/I, clarifying the right of a pharmaceutical manufacturer to reduce its tax base for a reimbursement it made on medicines ... Read More|Documents Attached
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The Swedish Tax Agency April 18 updated technical guidance for 2022 reporting under the U.S. Foreign Account Tax Compliance Act (FATCA). The updated guidance includes: 1) rules for reporting U.S. ... Read More|Documents Attached
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The Ukrainian Parliament (Verkhovna Rada) April 14 accepted for consideration Bill No. 9209, to provide VAT and excise tax exemptions for taxpayers whose vehicles were destroyed or stolen due to ... Read More|Documents Attached
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The Vietnamese Ministry of Finance April 17 opened a consultation on a draft Resolution No. /2023/QH15, to reduce specific VAT rates related to goods and services. The resolution includes measures ... Read More|Documents Attached
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