A round up of other news this week.
As regular readers of Tax Matters Digest will be aware, the UK Government has recently introduced an obligation for qualifying UK companies and partnerships to publicly publish their UK tax strategy for all accounting periods beginning on or after 15 September 2016. The strategy will need to set out the organisation’s approach to risk management and governance as regards their UK taxation, their attitude towards tax planning, their appetite for tax risk, and their approach to dealing with HMRC. For further information on the requirements, as well as details on how KPMG in the UK can help, please click here.
The UK-UAE 2016 Double Taxation Convention entered into force on 25 December 2016.
The Government has published a draft Legislative Reform Order, along with an explanatory note and impact assessment, to amend limited partnerships legislation as it applies to private funds such as venture capital and private equity funds. When enacted, the amendments will introduce a new Private Fund Limited Partnership category for private funds, intended to reduce administrative burden and legal uncertainty for these funds.
Following a recent increase in the number of limited partnerships registered in Scotland in comparison to those registered in England, Wales and Northern Ireland, the Government is concerned that these may be being used for criminal activity. In response, they have issued a call for evidence on the use of limited partnerships in the UK.
KPMG’s EU Tax Centre has provided an update on the EU Commission’s Common (Consolidated) Corporate Tax Base (C(C)CTB) proposals confirming that seven Member States have issued Reasoned Opinions objecting to the proposals on the Principles of Subsidiarity and Proportionality. However, the aggregate amount of votes does not give rise to the one-third required for the Commission to reconsider the proposals so work is likely to continue as planned.
Following the publication of our Tax Matters Digest story, Loan relationships and derivative contracts - change of accounting practice regulations amended, HMRC have confirmed that the commencement date in the regulations is incorrect and should refer to periods of account beginning on or after 1 January 2016, as had been expected. The published version of the regulations will be revised shortly to show the correct position.
New analysis from KPMG in the UK reveals that 2016 saw the reversal of a six year downward trend in levels of insolvency for British businesses, following an uptick in companies entering into administration in the second half of the year.