IT Lecture week 24 – International Tax Structuring

ATL-Editor 21 April 2018

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This lecture will most likely be given by a guest lecturer who specializes in international tax structuring.

The reading requirements are:

14 16 2018 Anti abuse legislation The Importance of Substance in a Private Equity Fund Context

14 16 anti-avoidance how robust is a Structured Finance Deal

Read the double-dip leasing example in Chapter 1.4 of your Primer again – 1 Chapter Introduction on page 11

1 INTERNATIONAL OFFSHORE FINANCIAL CENTERS (IOFCs) planning checklist

International Tax- Tax Havens and Tax Avoidance report – look at:

Where Are the Tax Havens? ……………………………………………………………………………………………… 3

Methods of Corporate TaxCorporate Tax refers to the tax imposed by governments on the income or capital of corporations. Corporations, considered separate legal entities, are taxed on their profits, meaning the income generated from their operational activities, investments, and other financial undertakings. This tax is generally a key revenue source for governments, helping to fund public services, infrastructure, and other essential functions. The...Tax AvoidanceTax avoidance refers to the practice of legally structuring financial activities to minimise tax liability, reducing the amount of tax owed without violating laws. Unlike tax evasion, which is illegal and involves concealing income or misreporting, tax avoidance operates within the framework of the law. Multinational enterprises (MNEs) and individuals often engage in tax planning strategies that reduce tax liabilities... ………………………………………………………………………………… 9

Methods of Avoidance and Evasion by Individuals …………………………………………………………….. 24

Narrower Provisions Affecting Multinational Profit ShiftingProfit Shifting is a strategic practice employed by multinational enterprises (MNEs) to reduce their global tax liability by shifting profits from high-tax jurisdictions to low- or no-tax jurisdictions. The primary method involves transferring income-generating activities, intangible assets, or other high-value components within the group to countries with favourable tax regimes. Profit Shifting is a critical concern for tax authorities and... …………………………………………. 32

Options to Address Individual Evasion …………………………………………………………………………….. 34

HYBRID COMPANIES – read about this interesting type of company that ‘acts’ like a trustA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms., but is not a trustA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms., and could be useful to side-step certain anti-avoidance provisions (eg. CFC rules) aimed at passive income receipts by trustsA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms.. Look at this and think about what anti-avoidance rules may apply.

Study these structures and identify the potential international tax issues, by looking at the IOFC checklist above, and the controversial issues raised in the report/articles above on anti abuse/anti avoidance:

REVISED Lecture Tax Planning – Seminar Diagram Final

Also take a look at these recent anti-avoidance developments again:

14 16 BEPS OECD Harmful Tax Practices ‑ 2017 Progress Report on Preferential Regimes

This is a list of countries with ant-avoidance provisions: 14 16 Country Summary International Anti Avoidance provisions

Victor Thuronyi Comparative Tax Law – eBook, especially:

5.1 In General 133

5.2 Conflicting Maxims 136

5.3 Country Practice 137

5.4 Tax AvoidanceTax avoidance refers to the practice of legally structuring financial activities to minimise tax liability, reducing the amount of tax owed without violating laws. Unlike tax evasion, which is illegal and involves concealing income or misreporting, tax avoidance operates within the framework of the law. Multinational enterprises (MNEs) and individuals often engage in tax planning strategies that reduce tax liabilities...: Introduction 150

5.5 Tax AvoidanceTax avoidance refers to the practice of legally structuring financial activities to minimise tax liability, reducing the amount of tax owed without violating laws. Unlike tax evasion, which is illegal and involves concealing income or misreporting, tax avoidance operates within the framework of the law. Multinational enterprises (MNEs) and individuals often engage in tax planning strategies that reduce tax liabilities... and Evasion 154

5.6 Sham Transactions, Simulation, and Abuse of Law 157

5.7 General Anti-Avoidance Rules 160

Categories: Africa, FP News, Nigeria, SADC, South Africa, West Africa, Zambia

Tags: Courses, transfer pricing

ATL-Editor

S.Africa: Summary of the Davis Tax Committee’s BEPS Sub-committee General Report released December 2014

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ATL-Editor 26 February 2015

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Understanding Double Tax Treaties: A Comprehensive Guide

*For clarity, the term Double Tax TreatyA Double Taxation AgreementA Double Taxation Agreement (DTA), also known as a Double Taxation Treaty (or a Tax Treaty), is an international tax treaty between two or more countries that aims to prevent individuals or businesses from being taxed twice on the same income. With globalisation and the increase in cross-border economic activities, DTAs have become essential tools for promoting trade, investment, and... (DTAA Double Taxation Agreement (DTA), also known as a Double Taxation Treaty (or a Tax Treaty), is an international tax treaty between two or more countries that aims to prevent individuals or businesses from being taxed twice on the same income. With globalisation and the increase in cross-border economic activities, DTAs have become essential tools for promoting trade, investment, and...), also known as a Double TaxationDouble Taxation occurs when the same income or financial transaction is taxed twice, typically in different jurisdictions. It can arise in two primary contexts: economic double taxation, where the same income is taxed twice in the hands of different taxpayers, and juridical double taxation, where the same taxpayer is taxed on the same income in more than one country. Double... Treaty (or a Tax TreatyA Double Taxation Agreement (DTA), also known as a Double Taxation Treaty (or a Tax Treaty), is an international tax treaty between two or more countries that aims to prevent individuals or businesses from being taxed twice on the same income. With globalisation and the increase in cross-border economic activities, DTAs have become essential tools for promoting trade, investment, and...), is an international

ATL-Editor 28 August 2024

Cook Islands: FATCA’s impact – this paper applies to many other offshore centres

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ATL-Editor 27 April 2015

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IT Lecture weeks 14, 15 and 16 – Other anti-avoidance measures

Pre-recorded lectures on anti-avoidance and CFC provisions using S.Africa as a practical example: Lecture 14 Anti-avoidance LECTURE: https://www.dropbox.com/s/m1hzmk3ojko3h6f/Week{780f53c297e2c008074d23b865a0ce0b35a4f08852d8e1e49466a5a902c4e44e}2014_DrErasmus.mp4?dl=0 – please note that you were required to listen

ATL-Editor 18 April 2018

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AFRICA: Sub-Saharan Africa and international arbitration – how does that work?

COMMENT Tax arbitration via new double tax treaties is on the increase. Hence, knowledge of international arbitration is important. Take a look at the following

ATL-Editor 29 August 2014

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