Tag Archive for Tax Blog

Italian Tax Code: Economic Nexus Rule And Changes To Permanent Establishment

With the Budget Law for 2018 (Law n. 205 of December 27, 2017), Italy amended the definition of the term “permanent establishment” set forth in article 162 of the Italian Tax Code.

The term permanent establishment now covers situations in which a foreign enterprise does not have a physical nexus with Italy, but it has a regular and continuous economic presence in the country; engages in ancillary activities that are an essential component of its core business, or operates through commissioners or other agents who do not enter into contracts in the name of the enterprise, but procure the conclusion of contracts that are eventually signed by the principal with no material modifications. Read More

Written by | Posted in Italy Tax • TaxConnections

Head Of Tax And Treasury (San Francisco Bay Area)

TaxConnections Executive Search Services Division has been retained to conduct a search for a Head of Tax with a very successful San Francisco Bay area company.

Head Of Tax And Treasury (San Francisco Bay Area)

The Head of Tax will work closely with management in reviewing global corporate tax compliance, the global tax provision, transfer pricing and treasury strategy. Responsibilities include managing global outside tax consultants and reviewing processes and procedures. The Head of Tax will partner with internal business leaders to effectively manage exposure. Read More

Written by | Posted in Tax Jobs

New Tax Code Just Made Sexual Harassment More Expensive

Tax incentives still matter. While “follow the money” is an excellent concept for seeking greater information about “what has happened,” by identifying and following the incentives is far superior for determining what “will” happen.” In economic terms, the differences are substantial. One is a lagging indicator (where we have been) and the other is the leading indicator (where we are going).

The new law states, no deduction is allowed for any settlement, payout, or attorney fees related to sexual harassment or sexual abuse if such payments are subject to a nondisclosure agreement. Read More

Written by | Posted in 2018 Tax Law • New Tax Code • Sexual Harassment

Rhode Island Online Sales Tax: What Should You Know?

As you know, the online sales tax debate continues across the country as states look for ways to collect fees from internet shoppers to increase their revenue. Rhode Island’s reporting law similar to Colorado’s, which makes customers responsible for paying the taxes, is now in effect.

About Rhode Island’s Online Sales Tax Law

Non-collecting retailers making in excess of $100,000 in sales or more than 200 sales (number of transactions) within the immediately preceding calendar year, are responsible for registering, collecting and remitting sales tax, or must do all of the following: Read More

Written by | Posted in Online Sales Tax • Rhode Island • Rhode Island Tax

Unintended Consequences Of Tax Jobs And Cuts Act On Canadian Citizens And Others Abroad

“This legislation is being interpreted by a number of tax professionals to mean that individual U.S. citizens living outside the United States are required to simply “fork over” a percentage of the value of their small business corporations to the IRS. Although technically “CFCs” these companies are certainly NOT foreign to the people who use them to run businesses that are local to their country of residence. Furthermore, the “culture” of Canadian Controlled Private Corporations is that they are actually used as “private pension plans”. So, an unintended consequence of the Tax Cuts Jobs Act would be that individuals living in Canada are somehow required to collapse their pension plans and turn the proceeds over to the U.S. government” -John Richardson Read More

Written by | Posted in British Columbia • Canada • Tax Cuts Jobs Act

5 IRS Penalties Changed Under The Tax Cuts And Jobs Act Of 2018

This post contains cocktail party killer one liners about how 5 IRS Penalties Changed Under the Tax Cut and Jobs Act of 2018.

My editor also quipped that reading this post helps with insomnia as well. So if you are looking to either kill a party and/or fall asleep faster please continue reading.

If you are a tax practitioner however, you better know this stuff and with all due respect – most do NOT.

The 5 big changes are summarized as follows: Read More

Written by | Posted in Tax Cuts Jobs Act

Missing Important Tax Forms? Here’s What To Do

Form W-2

You should receive a Form W-2, Wage and Tax Statement, from each of your employers for use in preparing your federal tax return. Employers must furnish this record of 2017 earnings and withheld taxes no later than January 31, 2018 (allow several days for delivery if mailed).

If you do not receive your Form W-2, contact your employer to find out if and when the W-2 was mailed. If it was mailed, it may have been returned to your employer because of an incorrect address. After contacting your employer, allow a reasonable amount of time for your employer to resend or to issue the W-2. Read More

Written by | Posted in 1099 • Tax Forms

British Columbia Budget 2018

It’s that time of year again. Government budget season is upon us.  British Columbia is the second province to bring down a budget this year. The focus of their budget was child care, affordable housing and services. There was some provincial sales tax (PST) changes announced to help fund these initiatives. British Columbia imposes a tax on passenger vehicles based on the value of the vehicles. Graduated tax rates, or luxury tax rates, start where the vehicle is valued at $55,000 at which point there is an additional 1% tax applied at the time of sale of the vehicle for a total tax of 8%. The current luxury tax rate for vehicles valued at $57,000 and over carries a 10% tax (12% for gifts and private sales). The British Columbia budget added two additional categories of luxury tax rates as follows: Read More

Written by | Posted in Budget

South African 2018 Budget Speech

Report from our correspondent Lutando Mvovo, South Africa
Budget for 2018-19 – direct taxation.

The Budget for 2018-19 was presented to Parliament by the Minister of Finance on 21 February 2018. Details of the Budget with respect to direct taxation, which, unless stated otherwise, will apply from 1 March 2018, are summarized below. For details with respect to indirect taxation, see South Africa-1, News 22 February 2018.

(a) Corporate taxation
The Budget proposes, among other things, to:
– Review the controlled foreign company high tax exemption; Read More

Written by | Posted in South Africa Tax

British Colombia’s Property Transfer Tax Act Is Not As Simple As It Might Seem

British Colombia’s Property Transfer Tax Act (“PTTA”) currently taxes only registered transfers of realty. In other words, it essentially taxes transfers of legal ownership, but not transfers of beneficial ownership. Numerous BC governments have for years considered expanding the scope of the PTT to include transfers of beneficial ownership – without substantive action.

Recently, however, there has been word of possibly significant realty-related tax changes to be proposed in the upcoming provincial budget, which will be released tomorrow. An expansion of the PTT is not unthinkable, given that current Premier John Horgan put forth a bill himself in 2016 seeking to tax the disposition of a beneficial interest in land. Read More

Written by | Posted in British Colombia • Canada • Property Tax • TaxConnections

I Didn’t Receive My IRS Refund Check And My Address Has Changed

Note that IRS will mail you notices and/or a check to the most recent address that it has on file for you. Of note:

Read More

Written by | Posted in IRS • Tax Refund

Interest On Home Equity Loans Often Still Deductible Under New Law

WASHINGTON – The Internal Revenue Service today advised taxpayers that in many cases they can continue to deduct interest paid on home equity loans.

Responding to many questions received from taxpayers and tax professionals, the IRS said that despite newly-enacted restrictions on home mortgages, taxpayers can often still deduct interest on a home equity loan, home equity line of credit (HELOC) or second mortgage, regardless of how the loan is labelled. The Tax Cuts and Jobs Act of 2017, enacted Dec. 22, suspends from 2018 until 2026 the deduction for interest paid on home equity loans and lines of credit, unless they are used to buy, build or substantially improve the taxpayer’s home that secures the loan. Read More

Written by | Posted in Home Equity Loan • IRS • TaxConnections
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