Anthony Bevacqua and Jerry Klopfer of KPMG discuss the growing difficulties experienced by organisations trying to safeguard against the pitfalls of intercompany arrangements. Collaboration between operations and information technology is key
Many multinational companies struggle with the resource-intensive requirements to manage intercompany arrangements, which can involve complex collaboration among people in tax, finance and accounting, operations and information technology. Large multsale ...
With over half of all global transactions now occurring between related parties, tax authorities worldwide are tightening the rules governing transfer pricing
Transfer pricing is one of the most important considerations when it comes to the taxation of international and cross-border transactions. Essentially, transfer pricing occurs when a parent company and its subsidiary, or two subsidiaries, embark uponbuy g...
Since 1997, transactions between Brazilian and foreign companies have been subject to controversial legislation. In September this year, that legislation changed, meaning businesses looking to make deals in the area might need to catch up
Brazil does not follow the Organisation for Economic Cooperation and Development’s (OECD) guidelines. Brazilian transfer pricing legislation sets out specific methods for pricing of transactions between Brazilian and foreign affiliates. These methods va...
The challenges associated with the enactment of transfer pricing laws have been escalating gradually
The management of tax consequences associated with intercompany transactions entered by Brazilian taxpayers has been challenging since Brazil implemented local transfer pricing rules through the enactment of law 9,430/96, in force as of January 1, 2007. T...
Calls for new and better regulation have resulted in the introduction of a number of financial regulations during recent years. Sean Tuffy of Brown Brothers Harriman wonders whether the new regulations really provide investors and markets with a safety net to prevent another financial crisis
The flight attendant’s safety speech has become so familiar and iconic that most air passengers know it by rote, and very few people ever take the time to listen to it – let alone consider if the safety measures described actually provide safe...
Sociopolitical difficulties threaded throughout the continent make transfer pricing regulations in Africa a lot more difficult to
Transfer pricing has become the number one method of moving capital out of Africa. Multinational corporations also use this device as a favoured way to avoid taxes. When goods or products are moved from a country with a low tax rate to one with a higher t...
In the UK, HMRC has been trying for some time to tighten up on transfer pricing regulations
The majority of countries now have legislation in place governing the pricing of transactions between companies that are related. These are normally tax rules forming part of the State Administration of Taxation, but they are nevertheless based on the bas...
Banks and politicians have been trying to dump the fair value accounting rule. Given our current economic circumstances that would prove only to be a mistake
Accounting rules are boring, technical and understood by only a very few people. That makes them the perfect target for bankers and politicians scrambling around for a credit crunch scapegoat. It wasn’t our greed, stupidity or complacency that cause...
The Securities and Exchange Commission has high hopes for XBRL reporting, but it needs to convince companies of the benefits
When a software company says it can make useful business information available “at the click of a mouse”, it always pays to be suspicious: truly valuable insights are rarely that easy to come by. But when the claim is being made by Christopher...
International watchdogs must ensure consistency of market rules, says Luke Jeffs
The regulatory burden for banks, brokers and fund managers trading in Europe is set to increase this year, as the authorities try to improve their oversight of an increasingly complex business. However, regulators must ensure there is consistency between ...
A look at how growth in cross-border banking and the centralisation by banks of key business functions are the main market trends affecting banking supervision in Europe today
Growth in cross-border banking and the centralisation by banks of key business functions are the main market trends affecting banking supervision in Europe today. These trends create a misalignment between the legal and operational structures of cross-bor...
European countries are scrambling to raise every last penny of funds through taxes. But some countries may have gone too far...
Though all business taxes in Belgium can be paid online with little effort and preparation, the rates are still sky-high at 57.7 percent, including a staggering 50.8 percent total rate on profits only in social security contributions.
In Belarus, a company spends up to 338 hours annually preparing for and paying ten different taxes and duties. The total tax rate has incredibly been lowered to 60.7 percent, from 117.5 percent in 2008.
A company in France pays seven different taxes and duties, the sum of which can amount to 65.7 percent of profits; though President François Hollande has announced a wave of business tax rate cuts coming up.
A business in Estonia pays 67.3 percent of profits in tax, 37.2 percent exclusively in social security contributions. The country has gone against the grain in Europe by raising businesses taxes from 48.6 percent in 2008 to the current rates.
While corporate income tax (IRES) in Italy is limited to 38 percent of taxable profit, a company operating in Italy can expect to pay 14 other taxes and duties, including social security contributions, bringing their total payable tax to 68.7 percent of profits, according to the World Bank.
Norway taxes motor fuels twice, with a road use tax and a CO2 emissions tax. Combined with strikes in the energy sector that have curbed output, the price of gas at a local pump has soared to $10.12 per gallon.
Though Turkey sits on the Suez Canal and neighbours many oil rich countries, the price of a gallon of average gas clocks in at $9.41 in Turkish pumps, because of a 60 percent share of taxes.
Like Turkey, Israel is surrounded by oil-rich neighbours, but drills very little itself. Gas prices are controlled by the government, so about half of the $9.28 per gallon goes to taxes.
There are few gas stations in Hong Kong, but the ones available charge up to 76 percent more per gallon than mainland China, where the government caps the cost of fuel. A gallon at the pumps will cost around $8.61 on the island.
Expensive labour costs make the Dutch petrol prices the dearest in Europe, at $8.26 per gallon; though the 57 percent tax add-ons don’t help.
8 February 2007
HSBC warns of subprime mortgage losses
2 April 2007
New Century goes bus
14 September 2007
Wholesale markets have dried up
17 March 2008
Rescue of Bear Stearns
7 September 2008
Rescue of Fannie Mae
15 September 2008
Lehman Brothers file for bankruptcy
3 October 2008
US congress approves $700bn bailout
14 February 2009
$787bn stimulus approved by congress
The effects of the current financial crisis are global and irrefutable. With the collapse of Lehman Brothers, the domino effect of irresponsible public monetary policies, huge levels of unsustainable debt, and a deregulated financial sector, has escalated to the point where no corner of the globe has been left untouched.
Syria and Egypt launch an attack on Israel on Yom Kippur and set off a twenty day war;
US President Carter creates Department of Energy, which develops the US strategic petroleum reserve
The Organisation of Petroleum Exporting Countries (OPEC) used their oil reserves as a weapon with the Arab Oil Embargo against those who supported Israel. By January 1974, world oil prices were four times higher than they were at the start of the crisis, especially in the US, and the shock led to a huge drop in the stock market with NYSE losing $97bn in just six weeks. The embargo lasted five months, and the effects are still seen today.
1923 – 1924
The trouble began when Germany missed a repatriation payment, worth about one third of the German deficit in this period. Inflation was already high but by 1923 it was raging. Prices doubled within hours, and by late 1923, it cost 200bn marks to buy a single loaf of bread. People burned money as it was cheaper than buying firewood. Germany eventually regained control of its economy when it introduced the Rentenmark into circulation in 1923, and then the Reichmark in 1924.
The Great Crash
Recovery and Recession
After the decadence of the Roaring Twenties, the 1930s saw the biggest economic slump of all time. The stock market crashed on 29 October 1929, and optimism and decadent living tumbled along with the figures. The GDP fell from $103.6bn in 1929, to $66bn in 1934 and the subsequent years of recovery were the most dramatic in US history.
Otto Heinze and his brother Augustus Heinze bought shares of United Copper.
The stock market was already cautious over the tight money supply, but the US was thrown into a depression after the stock market fell nearly 50 percent from its peak in 1906. The Heinze brothers thought they could influence market shares but ended up bankrupting lenders that provided the financing to buy the stock. A chain reaction left nine institutions bankrupt. By February 1908, the panic was over and the government created the Federal Reserve system, to prevent banks from exercising too much control over the economy.