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  • abegailebrown

    Hass and Associates Accounting Tax Preparation Ny skatt prov på utländska uppköp

    Hass and Associates Accounting Tax Preparation New tax test on foreign takeovers

    FOREIGN investors face a new hurdle as Joe Hockey declares he will take their tax affairs into account when considering their Australian deals amid a global crackdown on corporate tax avoidance.

    Alarmed at the potential loss of federal revenue, the Treasurer warned that tax arrangements would become a major factor in foreign investment approvals, given their growing impact on the national interest.

    Mr Hockey, who has the final say on all big foreign investments, took the new stance as he stepped up the case for global action on the “significant risk” to revenue from profit-shifting by large companies.

    The comments to The Australian are an important signal on foreign investment rules, given the Treasurer’s wide discretion to veto transactions and advice from Treasury about the revenue at stake.

    “The risk is significant, not just because the digital economy helps to facilitate tax minimisation or tax liability shifting to other jurisdictions,” Mr Hockey said in an interview. “It has an impact on other decision-making. Ultimately, it will have some impact on foreign investment decisions.”

    The Abbott government is pushing ahead with curbs on “base erosion and profit-shifting” as chair of the G20 this year, hosting a summit in Sydney last weekend that approved global measures to tackle the problem.

    Behind the international agenda is a domestic fear, including within Treasury, that big takeovers would lead to changes in tax arrangements that could wipe out billions of dollars in revenue.

    Mr Hockey did not refer to any specific proposal before the Foreign Investment Review Board but sent a clear signal to investors about how he would decide on future deals.

    “If you’re advised that an Australian company is a major taxpayer and if it is purchased by someone overseas and therefore its tax liability would be reduced domestically to zero, that feeds into a decision about what is contrary to the national interest,” he said. “You’d lose potentially a substantial lick of revenue. And that does have an impact on the national interest.”

    The G20 communique released on Sunday promised global action on the tax leakage by insisting “profits should be taxed where economic activities deriving the profits are performed”.

    OECD tax director Pascal Saint-Amans outlined two tranches of changes to be decided in September this year and September next year.

    Labor has welcomed the G20 progress but challenged Mr Hockey to live up to the communique, noting the government had abandoned some of former treasurer Wayne Swan’s actions to close tax loopholes.

    “Three-quarters of a billion dollars have been dropped because the government wasn’t willing to go hard on multinational profit-shifting,” opposition assistant Treasury spokesman Andrew Leigh said. “So that’s $700 million, around the cost of a new hospital.

    “The government is walking away from good moves on multinational profit-shifting and they’re walking back on transparency of multinational tax paid, which has really got to leave you asking the question: how serious are they about making sure that all companies pay their fair share of tax?” KPMG national corporate tax leader David Linke said the G20 agenda was significant for all businesses operating across borders and the biggest concern was avoid countries going it alone in ways that led to double-taxation of companies.

    “Generally tax reform takes a decade and here they’re trying to get it done in two years, so the time frame is challenging.”

    Treasury has warned the government in recent years about the danger to the tax base from large transactions, particularly when BHP Billiton and Rio Tinto contemplated a merger of their iron ore interests in 2010.

    Rio estimated its Australian tax liability at $9 billion last year, and Treasury feared the bulk of that could be lost if the iron ore merger had gone ahead.

    Another transaction, the 2009 sale of Myer by private equity owners, triggered a court case when the Australian Taxation Office tried unsuccessfully to collect tax on the $1.5bn repatriated to offshore tax havens.

    Hass and Associates Accounting Tax Preparation New tax test on foreign takeovers
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  • abegailebrown

    What is Tor and why does it matter?

    We all live in public, at least as far as the US National Security Agency is concerned. As Internet users and global citizens become more aware of surveillance activities that the US and other countries are doing on the World Wide Web, there are those who seek to ensure that privacy and personal freedoms aren’t trampled upon.

    Tor technology aims to help appease privacy advocates and offer a way in which the Internet can be enjoyed without the prying eyes of surveillance programs or other tracking software. This free piece of software has certainly become mainstream in light of recent events, but what is Tor and why does it matter to you, your family, neighbors, co-workers, and the rest of the Internet?

    Peeling back the onion layers

    It might surprise you that the Tor Project, originally an acronym for The Onion Router Project, was initially funded by the US Naval Research Laboratory and helped launch the development of onion routing (anonymous communication over a computer network) on behalf of DARPA. It had also received the backing from the Electronic Frontier Foundation.

    When users installed Tor software onto their computers, it would conceal their identity and network activity from anyone spying on their behavior. This was accomplished by separating the identification and routing information. The data is transmitted through multiple computers via a network of relays run by like-minded volunteers — almost like how users installed SETI software to look for extraterrestrial beings.

    Tor isn’t the only service that helps you hide in the shadows away from the prying eyes of the federal government, or any other person who would do it for malicious purposes. However, some say that it’s better because it works at the Transmission Control Protocol stream level. Full post: http://thenextweb.com/insider/2013/10/08..
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