A round up of other news this week.
Following the well-publicised leak of documents from Mossack Fonseca, a law firm headquartered in Panama, the use of offshore structures, particularly those in low or no-tax jurisdictions with high levels of secrecy has once more become the focus of attention. HMRC and the Secretary General of the OECD have issued press releases setting out what action they are taking in response.
Following previous correspondence on the subject, the Treasury Committee Chair, Andrew Tyrie, has written again to the Chancellor of the Exchequer asking for clarification on the corporation tax treatment of certain fines imposed on banks by regulators.
The OECD has published a list of responses to their consultation on proposed changes to the OECD Model Tax Convention concerning the treaty residence of pension funds. The responses largely address industry concerns around the prescriptive nature of the proposed definition of a “recognised pension fund.” Some submissions also highlight the range of activities that pension funds undertake beyond exclusively retirement and death benefits in particular jurisdictions (for example, healthcare and education benefits) and offer suggestions as to how the definition may better capture this range. Once finalised, it is intended that the definition will be incorporated into the OECD’s multilateral instrument at the end of 2016. KPMG continues to engage with HM Treasury, HMRC and relevant stakeholders in respect of the consultation. Funds are also encouraged to engage with their own governments to ensure the definition is sufficiently broad to capture their particular activities.
April’s edition of the Weekly Tax Matters tax consultation tracker can be found here.
A KPMG in the UK survey of 25 global real estate investors with assets under management of over $400 billion has revealed that two thirds believe a Brexit would result in less inward investment into UK property and property companies.
In 2016, mergers and acquisitions (M&A) in the Transport sector will supersede the levels seen in 2015 by exceeding the £52 billion mark, according to KPMG in the UK's latest Transport Tracker.
A bi-annual study of the business competitiveness of over 100 cities in 10 countries around the world by KPMG has found that the UK ranks seventh among 10 countries for the cost of doing business.