The European Union and the Group of Seven nations recently announced they would take steps to ensure that multinational countries pay their fair share of taxes to countries where they do business. The G7 – which comprises Canada, France, Germany, Italy, Japan, the United Kingdom and the United States – announced it would finalize recommendations made […]
On May 29 the Governor of Puerto Rico signed into law HB2482 which officially enacts Law 72-2015. This new law introduces fundamental changes to the direct and indirect tax regimes of the Commonwealth of Puerto Rico. For our purposes, we will focus on the changes as they apply to indirect tax. The new law proposes […]
When the U.S. introduced its Foreign Account Tax Compliance Act (FATCA) it established a precedent declaring the country would no longer tolerate tax evaders, or those who deliberately failed to comply with U.S. tax laws. While there has been much debate on both sides whether or not the U.S. Internal Revenue Service is causing more […]
Ecuador is among several countries in Latin America enacting and expanding e-invoicing legislation in 2015. The mandates in each country share similarities in purpose (boosting government revenues by decreasing tax inaccuracies and increasing fines and penalties) and scope (impacting accounts payable, accounts receivable, logistics, tax reporting and IT infrastructure). However, their differences are significant enough […]
The IRS announced a second 90 day filing extension for the Foreign Account Tax Compliance Act (FATCA), extending the time to file 8966 information to the IRS to 9/27/15. This additional extension further highlights the complex challenges of reporting globally for the first time as the world races towards the Common Reporting Standard (CRS) beginning […]
Thanks to the Foreign Account Tax Compliance Act (FATCA), foreign governments and financial institutions are assisting the U.S. Internal Revenue Service in reporting financial activity and holdings of American citizens living abroad. While the intent of the act was to prevent citizens from evading tax laws, there are opponents of the act who say it […]
Maryland’s income tax system has been challenged and ruled as unconstitutional by the U.S. Supreme Court. The reason was that Maryland’s tax policy essentially double-taxed its residents for income earned in other states. According to Forbes, the Maryland policy was operating as a tariff, since dollars earned and taxed outside of the state’s borders were […]
Proactively managing compliance in Latin America doesn’t just mean avoiding the significant fines and penalties associated with e-invoicing and reporting errors. It can also help your company free up cash flow and streamline business operations. It’s no secret that the risk of non-compliance with Latin America’s strict business regulations is severe. Errors can mean fines […]
Last week, we examined how to prepare for rolling out SAP in Brazil. In this complex regulatory environment, a SAP implementation is much more detailed and distinctive than in other countries. Special considerations must be taken into account to ensure compliance and avoid the hefty fines, penalties and business disruptions associated with e-invoicing and reporting errors […]
While Brazil is the most complex corporate regulatory environment in the world, it’s also a very attractive country in which to do business. The emerging market’s GDP is expected to grow 22.3% between 2013 to 2017. With access to raw materials and proximity to a booming population of both talent and consumers, global businesses are […]
While governments around the world are calling for more transparency and compliance when it comes to taxes, both domestic and abroad, citizens have their own batch of concerns. Most notably, there are an increasing number of American citizens who are nervous about the security of modern tax methods. Most tax filing is done digitally these days. […]
In the latest iteration of Latin American countries following the example set by Brazil’s e-invoicing regulations, Colombia is expected to introduce its own version of the legislation this year. The Dirección de Impuestos y Aduanas Nacionales (DIAN), Colombia’s version of the Internal Revenue Service, cites several benefits of making such a move, including: 1) Strengthening […]
Applying the correct indirect tax on sales of downloaded or online products presents a considerable challenge for global companies. This article endeavors to offer a brief overview of the different approaches taken in the United States (“US”) and the European Union (“EU”) regarding the proper tax treatment of such items. Before we begin, when using […]
Brazil may have set the stage for economic growth (and e-invoicing mandates) in Latin America, but its current prospects are quickly being overshadowed by some of its overlooked counterparts. In 2012, Mexico, Peru, Colombia and Chile joined forces as the Pacific Alliance, and soon will add Costa Rica as a full member to their ranks. […]
As tax season becomes more of a discussion than an upcoming event, small businesses exhale a sigh of relief. The complex nature of small business tax compliance has created much frustration and even extensions on their yearly filings. According to the National Small Business Association 2015 Small Business Taxation Survey, which included participation from more […]
With concern over the fact that the U.S. Internal Revenue Service is unable to function at a level it should due to limited funding, there are some politicians and tax industry professionals who fear the voluntary tax compliance model will not be able to stand. As the IRS is having a difficult time keeping pace […]
If you are trying to understand how indirect/transaction taxes apply in Hawaii the first thing you need to know is that Hawaii does not have a sales tax, at least not in the traditional sense. Rather, the state imposes a General Excise Tax (GET) levied on the person conducting the business on the island and […]
Latin American governments aren’t introducing and expanding e-invoicing mandates at a rapid rate simply to create more data. These invoices are used to support and verify tax deductions, ensuring that the government receives an accurate (and the maximum) amount of tax revenue. Remember, mandated e-invoicing covers all sales and in-country purchased via XML, so the […]