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May 9, 2013

Britain, US, Australia hunt for tax evaders yielding leads

LONDON/WASHINGTON, May 9 (Reuters) – A joint effort by
Britain, the United States and Australia to track down people
who conceal wealth in offshore tax structures has helped
identify more than 100 individuals, the UK’s tax authority said
on Thursday.

“The message is simple: if you evade tax, we’re coming after
you,” said Britain’s Finance Minister George Osborne.

May 9, 2013
via Tax Break

Essential reading: Tax collections from wealthy are saving government, and more

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Welcome to the top tax and accounting headlines from Reuters and other sources.

* Swiss bank tied to indictment ponders U.S. registration -sources. John Letzing – The Wall Street Journal. A Swiss private bank that recently suspended an executive who allegedly helped U.S. taxpayers evade obligations is considering opening a U.S. branch, two people familiar with the matter said Wednesday, a step intended to help it comply with U.S. regulations. Link 

* Tax collections from wealthy are saving government. Robert Frank – CNBC. Call it proof that the system is working—or proof that the system is broken—but taxes paid by the nation’s top earners are putting government back in the black. Link 

May 8, 2013

U.S. Senator’s attack on tax-dodge law gains some support

WASHINGTON, May 8 (Reuters) – Anti-tax advocates on
Wednesday applauded an effort by Senator Rand Paul to roll back
important sections of a U.S. law designed to fight tax evasion
by Americans with assets stored overseas.

In a move tax experts said would effectively gut the Foreign
Account Tax Compliance Act (FATCA), Paul has proposed stripping
FATCA of key enforcement and information reporting requirements.

May 8, 2013

Senator Paul offers bill to weaken U.S. anti-tax evasion law

WASHINGTON, May 7 (Reuters) – U.S. Senator Rand Paul
introduced a bill late on Tuesday that would repeal parts of a
2010 law designed to fight offshore tax evasion by Americans
with assets hidden in foreign banks.

The Foreign Account Tax Compliance Act (FATCA) is being
implemented worldwide through a series of agreements between the
U.S. government and other governments and foreign banks.

May 7, 2013
via Tax Break

Essential reading: Airline industry’s tax troubles, and more

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Welcome to the top tax and accounting headlines from Reuters and other sources.

* Tax proposals open a debate on airline industry’s troubles. Susan Stellin – The New York Times. A $300 domestic airline ticket now includes about $60 in taxes — or 20 percent of the total fare — which pays for things like air traffic controllers, airport improvements, customs and immigration inspections and checkpoint screening. Link     

* Indefinitely reinvested foreign earnings on the rise. Maxwell Murphy – The Wall Street Journal. Foreign profits at U.S.-based multinational companies will soon top $2 trillion. But much of that sum is unlikely to return to the U.S., regardless of the status of U.S. tax rules, as it already has been spent abroad. Link   

May 7, 2013

Fight expected in House on online sales tax

WASHINGTON (Reuters) – The Senate voted overwhelmingly on Monday to give states the power to enforce their sales tax laws on online purchases, but the legislation faces a tougher fight in the Republican-controlled House of Representatives.

The Democratic-controlled Senate voted 69 to 27 to back the measure, which pits brick-and-mortar stores like Wal-Mart Stores Inc and cash-hungry state governments against such Web retailers as eBay Inc and Republicans wary of new tax measures.

May 6, 2013

Online sales tax clears U.S. Senate, fight seen in House

WASHINGTON, May 6 (Reuters) – The U.S. Senate voted
overwhelmingly on Monday to give states the power to enforce
their sales tax laws on online purchases, but the legislation
faces a tougher fight in the Republican-controlled House of
Representatives.

The Democratic-controlled Senate voted 69 to 27 to back the
measure, which pits brick-and-mortar stores like Wal-Mart Stores
Inc and cash-hungry state governments against such Web
retailers as eBay Inc and Republicans wary of new tax measures.

May 6, 2013
via Tax Break

Essential reading: Tax rewrite favored by Republicans, and more

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Welcome to the top tax and accounting headlines from Reuters and other sources.

* Tax rewrite in play on Capitol. John McKinnon – The Wall Street Journal. Talk about overhauling the tax code is picking up across Capitol Hill this spring, with lawmakers of both parties agreeing on the need to simplify the system but remaining far apart on the details of how to do it. Link    

* In Commerce pick’s ’08 answers on finances, possible hints at road ahead. Charles Savage – The New York Times. Republican senators are likely to be interested in the Pritzker family’s reputation as innovators in the use of offshore trusts and foreign bank secrecy laws to shelter their wealth from income, capital gains and inheritance taxes. Link    

May 3, 2013
via Tax Break

Essential reading: Corporate taxes come up for review, and more

Welcome to the top tax and accounting headlines from Reuters and other sources.

* The corporate tax game. Graham Bowley – The New York Times
. Despite the widespread support, the campaign for a tax reform overhaul is exposing deep fault lines within the business world that suggest it may fall apart. Link

* Senate considering bill to ban tax scofflaw contractors. Tom Vanden Brook – The USA Today. The Senate is considering a bill the House unanimously passed last month that would prevent contractors with tax debts from doing business with the federal government. Link

May 2, 2013

Healthcare law opponents sue Obama officials over IRS rules

WASHINGTON (Reuters) – A group of individuals and businesses filed a lawsuit against the Obama administration’s healthcare overhaul on Thursday, hoping to stop the law in states that have not set up new insurance exchanges.

The complaint filed in the Washington federal court challenges federal rules issued in 2012 for implementing the president’s 2010 healthcare law which goes into full force in January 2014.