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International Tax

Newsletter

 

This e-newsletter gives you an overview of international tax developments being reported globally by KPMG member firms in the Americas Region between 1 April and 30 April 2014.

Canada Costa Rica Panama
Chile Jamaica Peru
Colombia Mexico USA

For a full summary of global tax developments, visit kpmg.com/TaxNewsFlash.

To contact the International Tax Team email internationaltax@kpmg.com.

  Tax area concerned Relevant date Description of measures and publication link (Considerations in italic where necessary)
Canada
Tax legislation adopted and regulatory update Tax compliance/ Individual income tax  5 May 2014 Revenue Quebec announced that individuals and their spouses reporting business income will be granted an extension for their final payment balance of Quebec income tax owing for the 2013 taxation year to 5 May 2014 (from 30 April 2014).
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The Canada Revenue Agency extended the T1 filing deadline to 5 May 2014.
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Revenue Quebec announced that interest and penalties will not be applied to individual taxpayers filing their 2013 tax returns by 5 May 2014 (from 30 April 2014) to harmonize with the federal filing extension.
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The Canada Revenue Agency extended the filing deadline for 2013 individual tax returns to 5 May 2014 after it temporarily shut down its online services to address a critical security issue.
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Film and television companies 28 February 2014 A company that is "related" (but not "associated") with a broadcaster for tax years that end after 28 February 2014 may now be eligible for the refundable tax credit for Quebec’s film and television companies.
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Alberta, New Brunswick, Saskatchewan budgets 2014 The 2014 budgets for certain provinces in Canada are substantively enacted for purposes of IFRS and ASPE. 
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Federal budget/  FATCA 28 March 2014 Canada’s Department of Finance released Bill C-31—the Budget Bill #1—in 28 March 2014 to implement certain measures announced in the 2014 federal budget. This legislative package includes Measures to implement an enhanced TIEA between Canada and the United States.
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FATCA/Trusts April 2014 Canadian trusts that will be treated as “foreign financial institutions” under the U.S. FATCA will want to closely follow legislative developments now that the Canadian government has tabled legislation implementing the IGA in Canada.
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GST/HST & QST April 2014 Trust and loan corporations in Canada are still facing new indirect tax—GST/HST and QST—challenges.
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Proposed legislation Nova Scotia’s budget 2014 The legislation (Bill 64) that would enact tax changes announced in Nova Scotia's 2014 budget, received first reading on 23 April 2014.
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HST 2014 Nova Scotia’s government confirmed in its 2014 budget that it will cancel its plans to reduce the HST rate on 1 July 2014. As a result, the HST rate in Nova Scotia will remain at 15 percent this year.
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Prince Edward Island budget 2014 The Prince Edward Island finance minister delivered the province’s 2014 budget.
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Anti-treaty shopping regime 2014 Canadian multinational and foreign corporations need to consider the alignment of Canada’s proposed anti-treaty shopping regime (announced by the Canadian government in its 2014 federal budget) with the OECD’s discussion draft on treaty abuse prevention under the BEPS action plan.
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Treaties DTT/TIEA 1 April 2014/ 13 April 2014 Recent actions concerning a tax treaty or tax agreement in Canada reveals:
Canada signed a Protocol to amend the income tax treaty with Belgium
A TIEA with Bahrain entered into force on 3 April 2014.
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KPMG publications Corporate tax rates 31 March 2014 KPMG in Canada has prepared tables listing the substantively enacted tax rates for Canadian-controlled private corporations and general corporations current to 31 March 2014.
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Other BEPS/Transfer pricing April 2014 Could multinational corporations in Canada be subject to enhanced transfer pricing documentation and country-by-country reporting?
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BEPS/Digital economy April 2014 Canadian businesses that operate in the digital economy will want to follow the recent high-profile initiatives by the OECD in this area.
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BEPS/Hybrid mismatch arrangements April 2014 Taxpayers may want to consider the impact of potential future tax changes that Canada may introduce to curtail the use of “hybrid mismatch arrangements” as a result of the OECD’s progress on its hybrid mismatch arrangements consultations.
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Chile
Proposed legislation Various tax areas 2014 A tax bill (submitted to the Chilean Congress on 1 April 2014) proposes to overhaul the Chilean tax system, with provisions to broaden the tax base and to increase tax revenue collection.
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Multinational corporations with Chilean subsidiaries and foreign entities with investments in Chile need to be aware of the potential impact of a tax reform bill submitted to the Chilean Congress.
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Colombia
KPMG publications Tax compliance First half of 2014 KPMG in Colombia produced a tax calendar that sets out the filing and reporting obligations of taxpayers in Colombia for the first half of 2014.
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Costa Rica
KPMG publications Various tax areas January-April 2014 KPMG in Costa Rica provides a report of tax and customs developments for January-April 2014—including brief descriptions of government decrees, legislation, and tax rates.
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Jamaica
Tax legislation adopted and regulatory update Minimum business tax 1 April 2014 A minimum business tax regime in Jamaica (effective 1 April 2014) imposes a minimum business tax on certain companies and individuals.
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Charitable organizations 24 June 2014 The registration process for charitable organizations in Jamaica, under a new law effective in December 2013, provides that only a charity registered with the Registered Charitable Organization may benefit from tax benefits and concessions under the new law.
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Proposed legislation Budget 2014/2015 The Minister of Finance and Planning presented the 2014/2015 budget.
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Mexico
Tax legislation adopted and regulatory update VAT April 2014 Businesses operating as maquiladoras in Mexico need to be aware of the processes for certification for VAT purposes as well as applications to avoid VAT on temporary imports.
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Administrative and case law Transfer pricing 31 December 2013 A decision from Mexico’s Supreme Court of Justice—declaring as unconstitutional, a provision of Mexican income tax law that, until 2014, prohibited a deduction of what are called “pro-rata expenses” incurred abroad and involving persons or entities that are not Mexican taxpayers—has transfer pricing implications.
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Various tax areas 2014 The Supreme Court of Justice announced that appeals in amparo judicial actions, in which the constitutionality of certain tax provisions in the 2014 tax reform are being contested, will be postponed.
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Employee benefits-related expenses 1 January 2014 A trial court in Mexico recently concluded that employee benefits-related expenditures of employers/corporations have a business purpose (i.e., are necessary to achieve business goals) and therefore are deductible—despite a limitation on the deductibility of such expenses under recent tax reform.
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Treaties IGA 25 April 2014 The U.S. Treasury Department on 25 April 2014 posted text of a revised IGA between Mexico and the United States to implement U.S. legislation known as FATCA.
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Panama
Tax legislation adopted and regulatory update Tax compliance 31 October 2014 Businesses in Panama generally must comply with rules for documenting their sales activities using “fiscal printers”.
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Administrative
and case law
Various tax areas April 2014 Decisions by courts in Panama address the following tax-related issues:
The Supreme Court of Justice (Third Chamber) held that the Administrative Tax Court of Appeals must consider any “expert reports” submitted during the proceedings at the administrative appeals phase, especially when such expert reports were required by the Administrative Tax Court and prepared by its own experts. The case involved the application of IFRS accounting rules for determining the costs of imported goods.
The Administrative Tax Court of Appeals reversed two rulings of the tax administration, holding that the tax administration is not to rely exclusively on a presumption of the legality of tax assessments made by tax officers. Also, any determination reached during the administrative appeals phase must take into account the evidence submitted by taxpayers, or any evidence discovered by the tax court during the appeals phase.
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Peru
Tax legislation adopted and regulatory update Customs/ Mining industry April 2014 Guidance in Peru is intended to control imports or exports of chemical ingredients that can be used in illegal mining activities.
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USA
Tax legislation adopted and regulatory update - - For legislative changes and regulatory updates for the US please visit below link to the TaxNewsFlash United States.
Read TaxNewsFlash US

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