22nd November 2018
Here at 6CATS, we are firmly embedded in the world of international tax and compliance and know first-hand how quickly things can change across borders. This makes it more important than ever to be diligent in keeping abreast of these changes.
With that in mind, here is some of the latest news that Recruitment Agencies need to be aware of:
Reports have claimed that Japan’s National Tax Agency has obtained information on 550,000 bank accounts that residents of Japan hold overseas. The data was provided via the Common Reporting Standard , marking the first time the country has taken part in the program, which began last year.
This week, the J5, a group formed to prevent tax evasion, made up of experts from Australia, Canada, the Netherlands, the United Kingdom and the United States, convened in Amsterdam. Members tested each other’s technology to see what could be applied to their own operations and also explored how they could bring data together to identify tax fraud.
Germany’s Finance Minister Olaf Scholz has suggested cracking down on non-compliant multinationals by instituting a ‘worldwide minimum’ corporate tax rate. This chimes with a report from the European Commission in 2017 which recommended a ‘unitary tax’ for multinational companies operating across the EU as the current framework ‘does not fit with modern realities.’
Thailand’s tax collection agency is turning to blockchain technology among other measures such as machine learning to fight tax evasion. Ekniti Nitithanprapas, director-general of the Revenue Department, claimed the government will employ blockchain technology to verify whether owed taxes are correctly paid.
Reuters has stated that Egyptian footballing legend Mohamed Aboutrika has been sentenced to a year in jail on charges of tax evasion. Aboutrika has been found guilty of evading tax on the 710,000 Egyptian pounds paid for advertisements for a soft drinks company and a telecoms firm.
Nigeria has introduced a tax amnesty scheme, whereby, for the next 12 months, companies holding offshore assets who haven’t paid tax can declare assets and income with a one-time payment of 35% asset value. The scheme offers immunity from prosecution in exchange for this disclosure.
A global challenge
It is increasingly clear that preventing tax evasion is a priority of governments and authorities globally, and resources are being poured into tackling it. On top of this, the technology to do so is getting far more sophisticated. Be it a multinational company, small business, famous footballer or independent contractor, it is now easier than ever to fall foul of the laws.
Agencies looking to place contractors internationally must be diligent in complying with an exceedingly complex and ever-changing system. Just one non-compliant contractor could have serious ramifications, with potential blame falling on your company. To prevent this from happening, it is wise to employ an expert in international contractor tax and compliance to help your team achieve its goals.
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