Tax

Cairn spells out cost of India’s “tax terrorism”

13 Jul 2016

The UK energy group has asked an international arbitration panel for at least $1 bln in compensation from New Delhi. That is the potential cost of Narendra Modi's failure to end retrospective tax claims. It would have been cheaper for the prime minister to honour his pledge.

U.S. anti-inversion push has a harmful flipside

7 Jul 2016

Treasury's plan to rein in tax-motivated overseas M&A takes aim at intercompany loans. It's a good idea to curb so-called earnings stripping where deductible interest is sent to an overseas parent. The proposed rule is broad, however, and could hurt normal funding practices.

UK’s tax cut goal: calm business, scare Brussels

4 Jul 2016

George Osborne has plans to cut the UK's already-low corporate tax rate to near-Irish 15 pct levels. It might stop domestic business jumping ship post-Brexit. But the prospect of a tax haven UK also acts as a bargaining chip to use in forthcoming exit negotiations.

London’s divorce from wider UK can only go so far

1 Jul 2016

The capital's new mayor is right to seek greater tax autonomy. But after a divisive vote in which Londoners wanted to stay in the EU, the trick is to do so without increasing divisions with the rest of the UK. Offsetting devolution with lower grants is a good place to start.

Asian amnesties point to wealth of tax worries

1 Jul 2016

Authorities in India and Indonesia are doubling down on efforts to persuade citizens to declare their assets. The schemes in both countries are very different but could provide a welcome boost to tax revenues. New global rules could also help governments reap a big windfall.

Saudi reform plan dodges most taxing question

7 Jun 2016

Income tax is perhaps the missing link in the kingdom’s latest plan to modernise the economy. Saudis currently keep all their earnings. That isn’t compatible with a record budget deficit. Taxing wages is a taboo, but it’s also the best way to diversify away from oil dependence.