Business tax

Tax / HMRC issues guidance on tax treatment for FRS 105 accounts

HMRC has issued guidance on the tax implications of transition to the new accounting rules for small business under the FRS 105 Micro-entities Regime, as the first year of reporting under the FRSSE replacement comes into effect, setting out recommended tax treatment

Tax / HMRC wins £29m tax avoidance case

HMRC has won an Upper Tribunal appeal against a tax avoidance scheme which sought to claim £122m was spent on research into brain disorders, when only £7m of it reached a genuine research company

Tax / Creative sector sees 27% increase in tax relief payments

The UK creative sector has benefitted from a 27% increase in tax relief payments from £519m in 2015/16 to £661m in 2016/17, with an added £51m from new theatre and children’s television tax relief bringing this year’s record total to £712m

Tax / Update to BEPS guidance on country-by-country reporting

The OECD’s base erosion and profit shifting (BEPS) project has released additional guidance on the implementation of country-by-country reporting (CBCR), with the aim of providing further clarification to tax administrations and multinational companies

Tax / Transfer pricing: re-evaluating profit splits

Robert Verzi, partner and Philip Brudney, international tax manager at Aprio, outline the implications of the profit split method in transfer pricing as part of the OECD’s Base Erosion and Profit Shifting (BEPS) project and highlight issues for multinationals as they examine global transfer pricing policies 

Tax / Recovering VAT on company car purchases

Stanley Dencher, specialist tax writer at Wolters Kluwer, considers two recent cases which HMRC has lost regarding whether input VAT is recoverable on company car purchases when private use is prohibited

Tax / NAO critical of HMRC’s failure to reduce tax credit fraud

The National Audit Office (NAO) has criticised HMRC’s failure to reduce ‘material’ levels of error and fraud in tax credit payments, and has qualified its opinion of the department’s accounts on that basis, as it has done every year since tax credits were introduced in 2003/04

Tax / Finance Bill (No.2) 2017 documents released

The Treasury has confirmed the details for the second, post-election, 2017 Finance Bill, which includes provisions for new non dom rules and restrictions on the amount of interest deductible for corporation tax, and purposes, among other updates

Tax / HMRC collects over £4bn from APNs

More than £4bn has been collected through accelerated payment notices (APNs) under the ‘pay now, dispute later’ rules for people who have used a tax avoidance scheme, according to HMRC

Tax / Sham contracts in construction industry: tips and advice

Sham contracts in the construction industry are increasingly being used to avoid tax legislation. Ian Anfield, managing director of Hudson Contract, provides tips on how to spot sham contracts and explains the risks associated with them

Tax / French court rules Google not liable for €1.1bn disputed taxes

Google will not face a €1.1bn (£970m) bill in France after Administrative Court of Paris rejected claims by the country’s tax authorities that the search engine and technology giant exploited loopholes to divert profits abroad, reports Calum Fuller

Tax / US tax reform: Trump’s repatriation tax

US tax reform is closer than ever with President Donald Trump proposing a one-off 10% repatriation tax on offshore income. Michael Minihan, principal and Ian Boccaccio, principal and practice leader of international tax at Ryan provide key items for evaluating foreign earnings and profits

Tax / Corporation tax online service will reflect loss relief rules by end autumn 2017

HMRC has confirmed that new rules on carried forward losses will not be reflected in the Corporation Tax online service and CT600 return form until the end of autumn 2017 as the measures were dropped from the truncated Finance Act 2017 enacted before the June general election

Tax / OECD publishes updated transfer pricing guidelines

The OECD has released the 2017 edition of its transfer pricing guidelines, which have been updated to reflect the work carried out as part of its Base Erosion and Profit Shifting (BEPS) project to ensure that multinationals’ taxable profits are not artificially shifted out of some jurisdictions, and that their tax base reflects the economic activity undertaken in a particular country

Tax / Rise in number of foreign government requests for HMRC tax evasion assistance

HMRC received 2015 requests for help with investigations into taxpayers from foreign governments in 2016, up 24 % on the 1619 requests received in 2015, as authorities step up efforts to stop tax evasion, according to research from Pinsent Masons