A round up of other news this week.
The landscape is changing and providing greater transparency around tax, either to tax authorities around the world and/or to the public - this is something companies are now preparing for. Given the rapidly changing environment it can be difficult to keep pace with the various proposals and to assess the impact that these will have on your business and to plan how you will comply. To assist, KPMG in the UK have prepared a paper setting out a high level summary of the various legislative proposals and consultations.
The Banking Surcharge (Information) Regulations 2016 have been published, along with a Tax Information and Impact Note. These regulations set out the detailed payment information HMRC need for payments of a bank Corporation Tax surcharge. The published regulations are unchanged from the draft published for consultation (see our article of 4 March 2016 for further details), other than that the commencement date has been brought forward by a month to 1 June 2016.
At Budget 2016, the Government announced changes to the disguised remuneration rules including, with immediate effect from 16 March 2016, rules targeted at specific planning which HMRC have called ‘gold bullion schemes’. There are variants but the common feature is an individual being paid in the form of an asset, such as gold bullion along with a theoretical obligation to pay the value of the asset to a trust at some point in the future. In the cases HMRC have seen to date, HMRC take the view that the receipt is a payment of earnings although the taxpayers have claimed the receipt is not taxable. HMRC’s firm view is that the receipt is taxable as earnings and they have now published Spotlight 30 to highlight this to taxpayers. HMRC say that “[they] will challenge these schemes via every route open to [them], including litigation through the courts”.
In the first of a series of three articles for Economia detailing why BEPS is not just a tax matter, Tim Sarson, tax partner at KPMG in the UK, considers the impact of BEPS on multinational operating models, setting out some very real impacts that are already starting to show.
April saw the second month of flat sales for UK retailers with positive food sales offset by record declines in fashion, according to the British Retail Consortium and KPMG in the UK’s Retail Sales Monitor for April.