Tax

Breakingviews predicts a shaken-up world in 2017

3 Jan 2017

After the upheavals of 2016, governments, companies and investors face unfamiliar terrain. Once-unthinkable scenarios, good or bad, now seem possible. From the U.S. economy to European elections, from M&A to magic mushrooms, our financial insights offer a guide to the year ahead.

U.S. company cash deluge will lift only some boats

28 Dec 2016

Slashing corporate tax rates may break the dam on $2.5 trln booked overseas. The actual amount repatriated could be less than half that, however. And while CEOs and politicians talk about more jobs and factories, it's best to brace for a flood of buybacks, dividends and deals.

Mnuchin’s first job: get own finances in order

30 Nov 2016

Trump's choice for Treasury has made millions on Wall Street. Unlike his boss, Steven Mnuchin will have to produce his tax returns to win congressional approval, a step that has tripped up past nominees. Mnuchin's wealth and potential use of tax loopholes could be problematic.

Irish lack ammo in corporation tax battle

22 Nov 2016

Theresa May and Donald Trump’s plans to slash UK and U.S. corporation tax rates are ominous for Ireland. Cutting its headline rate further is toxic politically and would reduce a key source of revenue. It leaves Dublin reliant on EU access as competition for investment grows.

Britain’s brave new world hits post-Brexit reality

21 Nov 2016

Prime Minister Theresa May wants capitalism to work for the little guy. But in a speech to UK business she softened ideas like putting workers on boards, while promising low corporate taxes. Pressure to rein in the deficit and migration leaves less room for policy innovation.

Dig at BHP heralds taxing times for Aussie miners

17 Oct 2016

The company is under renewed attack over allegations it channelled profits through Singapore to trim its tax bill during the resource boom. A fiery rant by Australia's former treasurer, weak public finances, and a recovery in commodity prices will keep miners in the spotlight.

Trump taxes imply he’s a living “special interest”

3 Oct 2016

The White House hopeful may not have paid personal income tax for years because of a $916 mln loss in 1995. Rules relating to certain corporate structures could explain it. Trump's economic plans seem to favor such firms. It shows why candidates' taxes need scrutiny.

India illustrates fraught tax amnesty economics

3 Oct 2016

Citizens have declared cash and assets worth $10 bln. A high penalty means New Delhi will pocket almost as much revenue as Indonesia, where locals have just declared $250 bln in a similar scheme. In the long term, using more carrot and less stick is probably more valuable.

Guest view: A new blueprint for corporate tax

29 Sep 2016

Europe's complaint against Ireland and Apple reflects a problem bigger than any one company or country. The global approach to tax is past its sell-by date. A system based on revenue location, and that treats multinationals as single entities, could share the pie more fairly.

Indonesia cashes in on model tax amnesty

28 Sep 2016

Citizens have admitted hiding almost $200 bln in what is shaping up to be one of the world's more effective schemes. Success stems from low charges, credible government, and big penalties for abstainers. The global backdrop makes it a good time for other countries to strike.

Irish budget handout spreads largesse beyond Apple

22 Sep 2016

The government may phase out an unpopular levy introduced during the financial crisis. A strong recovery gives it scope to part with a tax that brings in 8 percent of revenue. Offering goodies to workers may also quiet demands that it accept Apple’s 13 bln euros in back taxes.

Dublin faces fiendishly tough call on Apple appeal

2 Sep 2016

Ireland has a stark choice: take 13 bln euros from the tech giant in back tax and hurt its standing with multinationals, or keep its national business model intact. With Brexit looming, the safe choice is to appeal. But the country has more scope to annoy Apple than it did.

Apple’s tax spat could blight European banks

31 Aug 2016

The tech giant’s $14.5 bln EU tax bill has shades of a $9 bln U.S. fine handed to BNP Paribas in 2014. Despite big differences, both have the whiff of a transatlantic raid on those deemed able to pay. EU banks awaiting U.S. fines, like Deutsche Bank and RBS, have cause to fret.

Europe’s bite at Apple could leave bad aftertaste

30 Aug 2016

The European Commission wants companies to pay their fair share of tax. Zeroing in on Apple’s alleged sweetheart deal with Ireland fits that agenda. But it could misfire. Reeling from Brexit, Dublin might feel pressure to make itself even more friendly to corporate taxpayers.

EU offers vitamin pill to dying media patient

26 Aug 2016

Brussels wants to give media the right to seek compensation from search engines like Google that use online content.  The intention is laudable - some publishers may be losing out. But the proposal has similarities with schemes in Germany and Spain - which haven’t worked.

Apple tax fight is two wrongs in search of a right

25 Aug 2016

A spat between the U.S. and Europe over how firms like the iPhone maker, Amazon and Starbucks pay taxes shows the worst of both sides. America meddles, and Europe moralises. At heart is an issue both sides’ citizens should support: big companies too often avoid paying their dues.

Hillary Clinton slips through Trump tax loophole

12 Aug 2016

The Democratic nominee revealed that she paid a 34 pct tax rate last year. Over $10 mln of income also cements her in the 1 pct with inequality an election focus. Trump's refusal to release his own returns makes Clinton's wealth and its origins harder for Republicans to assail.

Tax overhaul boosts Modi’s reform credentials

3 Aug 2016

India is set to pass a bill paving a path to a long-awaited goods and services tax. Exemptions will dilute the potential boost to growth. But the bill is evidence that the prime minister can compromise to get things done. That bodes well for a long wish list of other reforms.

Yahoo’s failure clarifies future for U.S. spinoffs

15 Jul 2016

The Treasury modified regulations on when splits can qualify for tax-free treatment. The move comes after the IRS declined to bless Yahoo's carve-out of its Alibaba stake. Similar deals have been on hold since. This reasonable government approach provides much-needed clarity.

Post-Brexit upheaval complicates Irish tax rethink

15 Jul 2016

Ireland faces a slating from the EU for an alleged sweetheart taxation deal with Apple. The optimistic view is that both OECD and domestic reforms mean Brussels is pushing against an open door. Yet moves by the likes of the UK to slash tax rates could slow any reinvention.