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Austria, France, and Italy to Introduce Digital Services Taxes

Austria, France, and Italy to Introduce Digital Services Taxes

A limerick that is popular among members of the U.S. Congressional tax writing committees sheds wisdom on the development of tax policy:  “Don’t tax you.  Don’t tax me.  Tax the person behind the tree.”  Several countries in Europe have taken the rhyme to heart in developing unilateral digital services taxes designed to impose tax on extra-territorial activity of out-of-country companies.  The issue, as Austria, France, and Italy see it, is that these companies make huge profits in Europe but pay no tax there, while payments for digital services are often tax deductible in the countries where the services are used.  According to proponents such as Austria, it is only fair to tax those profits on a destination basis.  Benjamin Twardosz of CHSH Attorneys-at-Law, Vienna, explains the various proposals under consideration.

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The Impact of Brexit on German Taxes for Private Clients and Nonprofit Organizations

The Impact of Brexit on German Taxes for Private Clients and Nonprofit Organizations

American business executives responsible for regional operations in Europe often see different approaches to problem solving in terms of cultural differences between various European countries.  It can be said that British colleagues often continue to rethink decisions even after solutions are adopted, and German colleagues focus on engineering a unified approach to reach the best solution to the matter at hand.  These cultural characteristics seem to have manifested in the different ways Parliament in the U.K. and the Bundestag in Germany are addressing Brexit.  Parliament continues to debate whether, when, and how to implement Brexit, while the Bundestag has enacted several laws to address how a hard or soft Brexit will affect various aspects of German tax law.  Dr. Andreas Richter of P+P Pöllath + Partners, Berlin and Frankfurt, provides the reader with an overview of the German tax consequences to be anticipated from a U.K. departure from the E.U. – with or without a formal Brexit agreement.

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The U.K. Digital Sales Tax – It Could Be You

The U.K. Digital Sales Tax – It Could Be You

On November 7, 2018, the U.K. government confirmed that it will proceed with the introduction of a digital services tax ("D.S.T.") on large businesses. The tax will be charged beginning April 2020. It will apply to three key areas, which the government has concluded derive a huge value from the participation of U.K. users and are largely untaxed. Eloise Walker of Pinsent Masons, London, provides an overview of the D.S.T., cautioning that problems exist in identifying both the revenue to which the D.S.T. will apply and the hallmarks of jurisdiction that must exist in order for the tax to be imposed.

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In the Fight Against Money Laundering, Europe Tackles Cash Controls

In the Fight Against Money Laundering, Europe Tackles Cash Controls

In early October, the European Council adopted a regulation aimed at improving controls on cash entering or leaving the E.U. The new regulation provides necessary tools to address threats arising from terrorist financing, money laundering, tax evasion, and other criminal activities. It is based on current standards for combating money laundering and terrorism financing developed by the Financial Action Task Force (“F.A.T.F.”). Among other things, the new regulation requires a declaration of unaccompanied cash – that is, (i) cash sent by post, freight, or courier shipment and (ii) highly liquid instruments and commodities, such as checks, traveler’s checks, prepaid cards, and gold.  Once the new regulation is signed by the European Council and the European Parliament, it will be published in the E.U. Official Journal and will enter into force 20 days thereafter. Galia Antebi explains all.

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G.D.P.R. Is Imminent – Is Your U.S. Business Prepared?

G.D.P.R. Is Imminent – Is Your U.S. Business Prepared?

In Europe, an individual’s right to the protection of personal data is a fundamental right.   The E.U. General Data Protection Regulation (“G.D.P.R.”) takes effect on May 25, 2018, to protect that right.  The G.D.P.R. is notable because it applies to all companies processing personal data of persons residing in the European Economic Area regardless of the company's location and irrespective of whether the company has a physical presence in these countries.  Severe penalties are provided for violators. Fanny Karaman and Beate Erwin provide a layman’s guide to the G.D.P.R.

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