A round up of other news this week.
At Budget 2015, the Government announced new measures to improve large business tax compliance and at the Autumn Statement it was announced that, as part of this, a framework for cooperative compliance would be published. A copy of this framework has been circulated by HMRC to large businesses and it is expected to be published in the autumn. Please speak to your usual contact if you would like to see a copy.
In advance of the commencement of EU referendum Purdah, the Government released a number of consultation documents on Thursday 26 May. As well as the consultations on corporate tax losses and the substantial shareholding exemption mentioned previously in today’s Tax Matters Digest, there was also a proposal for the possible introduction of a secondary adjustment rule into the UK’s domestic transfer pricing legislation and a consultation on renewing and extending the scope of the Double Taxation Treaty Passport scheme.
Draft Statutory Instruments (SIs) have been published which relate to the UK’s tax treaties with Jersey, Guernsey and the Isle of Man. These SIs introduce the transactions in land anti-avoidance provisions that were announced at Budget 2016 to ensure that non-UK-based property developers in those jurisdictions pay the same level of tax as UK-based property developers. Other draft SIs have been published which relate to the UK’s tax treaties with the UAE and Uruguay.
A Tax Information and Impact Note and draft legislation were published on 26 May to update the definitions of high quality liquid assets and high quality securities within the bank levy legislation to refer to the new regulatory regime that now applies to banks and building societies in the UK. This measure will have effect from 1 October 2016 and comments on the draft legislation have been requested by 30 June 2016.
HMRC have updated the country-specific chapter of the Double Taxation Relief Manual in relation to China, to take account of the treaty amendments which entered into force in December 2013.
HMRC have published a new compliance checks factsheet on penalties for tax avoidance schemes.
In the second article of our series for Economia, we continue to explore why BEPS cannot be viewed as “just a tax matter”. Here Robin Walduck, international tax partner at KPMG in the UK, considers the impact of BEPS on treasury and M&A activity.
HMRC's senior management organisation chart has been updated.
KPMG in the UK’s inaugural CPG Organic Growth Barometer tracks the organic revenue growth of the largest Consumer Packaged Goods (CPG) companies in the world.
The UK’s mid-market businesses lost approximately £48 billion last year due to a failure to adequately mitigate risks directly within their control, according to KPMG Enterprise’s latest study of 222 leaders of mid-sized businesses.