The European Commission (EC) is to unveil new proposals to bring secretive ‘sweetheart’ tax deals into the open as it steps up its campaign against corporate tax avoidance, reports UK daily
Governments across the European Union (EU) will be asked to reveal details of any agreements with multinational corporations (MNCs) which could deplete the coffers of other EU nations.
The paper says that it has seen a draft of the EC’s plans, which highlight the problem of “aggressive tax planning” used by companies to benefit from loopholes in low-tax nations. While deals must adhere to EU law, it notes that “a lack of transparency regarding such rulings may impact on other countries”.
In future, under the proposals, if a government reaches a deal with a company that may impact tax collection in other member states it would be obliged to automatically share details of the transaction with other governments.
The proposals reflect mounting public anger in Europe at companies such as Apple and Starbucks, which have exploited complicated tax structures in countries such as the Netherlands, Ireland and Luxembourg to shift their tax bills away from the nations where they do most of their business.
The EU believes that as much as €1 trillion is lost annually to tax evasion, tax fraud and aggressive tax planning.
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
The top five sectors Asian fintech investors are interested in are data analytics, blockchain, lending, payments and regtech, according to Gary Hwa, EY regional managing partner.
On the third day of the Singapore Fintech Festival conference, there was a focus on specific applications of fintech innovation. One was trade finance, which is clearly is ripe for a revolution.
Kicking off day two of the Singapore Fintech Festival, Deloitte Chairman David Cruikshank said that fintech is significant for three reasons. First, customer expectations of services are higher than ever. Second, barriers to entry are lower than before. And finally, financial institutions (FIs) face a threat of what a competitor might do.