Dividends from Spain to UK

Dividends from Spain to UK

The Spanish tax deducted from dividends paid by a Spanish Company at the agreement rate of 15 per cent (10 per cent where the recipient is a United Kingdom company controlling, directly or indirectly, at least 10 per cent of the voting power in the Spanish company - but see the final paragraph below) qualifies for credit as a direct tax. A reduction to the above rates is not given where the dividend is effectively connected with  a business carried on by the recipient through a permanent establishment in Spain.

Where the recipient of the dividend is a United Kingdom company controlling, directly or indirectly, at least 10 per cent of the voting power in the Spanish company paying the dividend, relief is also due for the underlying tax.

Although the agreement provides a 10 per cent rate of source state taxation in respect of direct investors, the EC Parent and Subsidiary Directive bars the imposition of withholding taxes on dividends paid by a company resident in one Member State of the Community to a company resident in another Member State, where the company receiving the dividend holds a minimum of 25 per cent of the capital of the company paying the dividend. The level of capital required to obtain the 0% rate is reduced to 20 per cent from 1 January 2005, 15% from 1 January 2007 and 10% from 1 January 2009.

The Directive overrides any provision made for withholding tax in the relevant bilateral treaty

Accrued and capitalised interest

Accrued and capitalised interest

Some news about wealth and asset protection. According to the Savings Directive, "Savings income is also regarded as paid for the purposes of the regulations when a money debt is sold to a paying agent (or a receiving agent) or redeemed by the debtor. Interest added to an account with a bank or building society when the account is closed is interest in the normal way and treated as such under the regulations. However, accrued interest, premiums and discounts paid out at the redemption of securities by the issuer, or included in part of the price paid by a third party purchaser at sale before redemption are also savings income for the purposes of the regulations.

UK market makers who purchase interest–bearing securities from relevant payees or residual entities in prescribed territories or UK agents acting for the seller (e.g. stockbrokers) could therefore be paying agents for the purposes of these regulations. This could be the case even if they are not the paying agent in respect of the coupon payments made to the relevant payee or residual entity selling the securities.

Accrued or capitalised interest normally only arises if:

• a security is sold to the paying agent cum dividend (with an entitlement to the next coupon payment) - in those circumstances the price will include an amount of accrued interest for the period from the last coupon payment date to the date of transfer of the security

• it was a purchased by the seller at a discount, or

• the sale price includes, or takes account of, a premium that is paid on redemption by the issuer.

There is no reportable savings income payment when an interest–bearing security is purchased by a relevant payee or residual entity in a prescribed territory.

If the security is purchased ex dividend (without an entitlement to the next coupon payment), there will not normally be any accrued interest in the selling price and so there may be no reportable savings income. The next coupon payment to the relevant payee or residual entity may, of course, be reportable in the normal way under the regulations by the appropriate paying agent.

('repo') agreements do not give rise to reportable savings income (and manufactured payments which are representative of interest on such debts are also not reportable savings income - see paragraph 89). But a money debt which is acquired by a relevant payee or residual entity under a stock loan or repo agreement may give rise to savings income if the debt is sold, or if interest on the debt is received, by the relevant payee or residual entity during the term of the agreement.

For accrued or capitalised interest you may report either the amount of the savings income or the full amount of the proceeds of the sale or redemption of the securities. You may rely on information from established information vendors in order to determine the savings income realised on sale or redemption."

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“Home country” rule

"Home country" rule

According to the Savings Directive "You may, if you wish, determine whether or not a fund has exceeded a threshold, or the amount of savings income to report in accordance with the "home country" rule. This means that, for a fund established in a prescribed or relevant territory, or one of the five other territories (not prescribed in Appendix 1), this determination is done in accordance with the rules set by the territory in which the fund is established. You may also rely, as provided in paragraph 123, on information provided on this basis by recognized industry sources."

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Advantage of Cash shells in the Plus Market Exchange in London

Advantage of Cash shells in the Plus Market Exchange in London

Reversing into a cash shell saves management time in accessing capital.

They also often come with established boards, cash resources and good contacts with institutional investors.

For shareholders of the shell company, a reverse is a way to invest in the target before it attracts a premium to its share price for its quote, while the target gains the benefit of a listing and any cash the shell may have in the bank.

Moreover a readymade shareholder base can assist creating liquidity in the company‟s shares and can provide an excellent source of future funding.

Not all are attractive

Not all cash shells appear to offer attractive prospects.

The money in shells often appears insufficient; others may have liabilities, financial or otherwise.

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The big questions for many managers: Should you get off the plane?

In some cases, these risks can impact the subsidiary organization's directors, officers and managers. In others, executives from the home territory may be at risk: Some have even been known to question if they should get off the plane in countries in which their  company's subsidiary may be involved in a legal tangle, she says. To avoid potential problems, Colwell tells executives to consider D&O coverage for offshore subsidiaries placed by the corporate headquarters, or as local laws require, placed in the subsidiary's country. An important consideration for buyers is to make sure the company's D&O broker has access to partner brokers abroad. "We need insurance policies and programs that can adapt to various indemnification scenarios, so that individuals are protected in all jurisdictions." Hartmut Mai, the Global Head of Financial Lines at Allianz Global Corporate & Specialty, a major provider of D&O insurance, says policies used to have global reach but are now increasingly subject to local regulations. He recommends one-stop shopping for D&O coverage at larger insurance providers that can meet needs in all territories and advise on peculiarities. Mai also advises that managers who are trying to steer their company's D&O program insist on close contact with insurers to foster a mutual understanding of risk exposure. "Keeping in constant communication is not just good for underwriters, it's also good for the client because the client begins to understand how the underwriter thinks and what he is looking for in the risk assessment process," says Mai. David Walters, who manages the commercial D&O business of Chartis Insurance in the UK and Ireland, a part of the former AIG and one of the world's largest D&O insurers, also recommends that companies communicate frequently with their insurance brokers and insurers about business developments that could potentially change a company's risk profile.

According to Walters, companies should treat their D&O providers just like one of their stockholders—and for good reason: "At the point of crisis, if the communication has been two-way and open, a solid relationship would be in place to back up the claims process."

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REVERSE TAKEOVERS IN THE PLUS MARKET (LONDON)

Greener House Investments Plc also recently completed a reverse takeover, acquiring Fresh T Limited, a privately owned company specialising in Software as a Service.
 
Following the reverse takeover, the enlarged group was renamed
 
FreshTL Plc was readmitted to the PLUS markets.
 
Hanseatic & Baltic Properties Plc
 
was suspended from the PLUS markets in January 2010 in anticipation of a reverse takeover of United Sino, a Libyan property development company. However, the deal was terminated in April citing "Sino were unable to guarantee raising sufficient funds for us to satisfy ourselves that the enlarged group would have had sufficient working capital to carry out the projects." Hanseatic & Baltic Properties Plc has been restored to trading on PLUS.

 

Award International Holdings plc recently completed a reverse takeover, acquiring a full service digital marketing specialist, Fuse 8, for £5m which will be satisfied by the issue of 10,215,000 consideration shares.

 
The directors had examined many acquisition opportunities since Award became an investment company and believe that Fuse 8 presented an exciting prospect for existing Shareholders.
 
Following the reverse takeover, the enlarged company was renamed Fuse 8 Plc and listed on the AIM Market.

 
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Clean or dirty Cash Shells in the Plus Market Exchange

Cash shells can be "clean‟ purpose built with a fresh pool of capital with the aim of finding a project seeking capital to acquire.

Investors in the shell are backing the board to spend their cash wisely and target profitable companies or companies that can achieve capital growth, even though they have not yet secured a deal.

Alternatively, they can be "dirty‟ companies with a stock market quote and some funds whose previous business failed and have undergone a restructuring and a formal arrangement to eliminate all the company‟ old liabilities.

More about the Plus Market Exchange on:

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El Sandwitch Holandés

Introducir el paso por los Paises Bajos entre dos sociedades es lo que se llama el Sandwich Holandés.

Irónicamente, el "Sandwich no deja migajas que degustar" como dijo un empleado de Tax Research LLP.

La compañía Microsoft, que está basada en Redmond, WA, también ha utilizado una estructura de Doble Irlandés según los mismos registrs de esta en el extrangero. A Forest Laboratories Inc, fabricante del antidepresivo Lexapro, las cosas también le van bien según la agencia de noticias Bloomberg News. Esta empresa farmacéutica de Nueva York, declara la mayoría de sus beneficios en el extrangero, aunque la mayor parte de sus ventas sean dentro de los Estados Unidos. Sus precios de transferencia están siendo auditados por el IRS.

Desde los años 60, Irlanda a perseguido una estrategia de incentivos fiscales para atraer multinacionales. Otro aspecto menos comentado es que permite a las sociedades transmitir los beneficios fuera del país sin demasiadas consecuencias fiscales.

"Sacando los provechos fuera"

Para que no se acumulen todos los beneficios en Irlanda, hay que sacarlos fuera de esa jurisdicción de alguna manera fácil, y eso, se hace a través de Bermuda.

Irlanda siempre ha buscado asegurar que los beneficios cobrados en Irlanda reflejen en su totalidad la funciones, bienes y riesgos localizados ahí por grupos multinacionales.

Una vez que los beneficios no americanos de google llegan a Bermuda, es dificil seguirles la pista. Su subsidiaria en ese país, cambió su forma legal de organización en 2006 convirtiendose en una LLC. Bajo las reglas irlandesas eso implica el no requisito de transferir información fiscal al país de orígen.

 

Diferida indefinidamente

Técnicamente las multinacionales que transfieren los beneficios al extrangero, evitan los impuestos permanentemente. O hasta que deciden devolver al país de orígen los beneficios. A la práctica, pocas veces se repatrían porciones significantes evitando así indefinidamente los impuestos. Según Michelle Hanlon, una profesora de contabilidad del Massachusetts Institute of Technology.

En 2009 el departamento de tesorería americano, propuso reducir las tasas en los pagos entre sociedades americanas y sus subsidiarias.

Los oficiales de tesorería estimaron que el cambio reportaría unos beneficios de $86.5 billones en nuevos ingresos para los próximos diez años, pero ciertas compañías en el Congreso se mostraron contrarias a la medida como General Electric co, los fabricantes de cosméticos Johnson & Johnson y Starbucks Corp, según unos informes hechos por la Ong Center for Responsive Politics.

Google y Transfer pricing

Precios de Transferencia.

En febrero pasado, la administración de Obama, propuso medidas para cambiar la dinámica de la transferencia de beneficios offshore. En su propuesta se incluía destinar $12 billones a tal efecto en los siguientes 10 años. Mientras estas propuestas no avanzan en el Congreso de Estados Unidos, el IRS dijo en abril que dedicaria más agentes y abogados en cinco de lass más grandes soluciones de

Longitud de Brazo

La transferencia de beneficios normalmente empieza cuando compañías como Google venden o licencian derechos extrangeros sobre propiedad intelectual para desarrollar en los Estados Unidos a un subsidiario sito en un país con una fiscalidad más beneficiosa. Esto significa que los beneficios en el extrangero basados en tecnología se atribuyen a una unidad offshore, no a la empresa madre. Bajo la jurisdiccion americana, los subsidiarios deben pagar precios de longitud de brazo por esos derechos, la cantidad que una empresa totalmente ajena, pagaría.

Como esos pagos contribuyen a los beneficios taxables, la compañía madre tiene un incentivo a establecerlos cuanto más bajo mejor. Recortando los gastos de la subsidiaria, efectivamente se trasladan los beneficios al extrangero.

Despues de tres años de negociación, Google recibió la aprovación del IRS en 2006 para el pacto de precios de transferencia, acorde con las cuentas en el Securities and Exchange Commission.

El IRS dio su consentimiento en un pacto secreto conocido como un pacto de precios avanzado. Google no discutiría el precio bajo ese pacto, lo que daba licencia a los derechos de su tecnología de búsqueda y publicidad y otras propiedades intangibles para Europa, Medio Oriente y Africa. A eso se le llama Google Ireland Holdings, según un experto ene l tema.

Oficina de Dublín.

El licenciado a su vez es propietario de Google Irlanda Limited, que emplea al menos a 2,000 personas en un edificio de cristal en el centro de Dublin, a una manzana de distancia del Grand Canal de la ciudad. El subsidiario de Dublin vende propaganda globalmente y según google obtiene el 88% de sus $12.5 billones de ventas no americanas anualmente.

Hacer que los beneficios sean en Irlanda ayuda a Google a evitar el impuesto de retna en Estados Unidos, donde la mayor parte de su tecnología fue desarrollada. El pacto también reduce la responsabilidad de la compañía en otras jurisdicciones europeas con jurisdicciónes fiscales poco favorables.

Los beneficios pero, no se quedan en la filial de Dublín, que reportó beneficios antes de las tasas de menos del 1% en ventas en 2009 según los registros Irlandeses. Esto en mayor parte ocurro porque pagó $ 5.4 billones en royalties a Google Ireland Holdings que tiene el centro de gestión efectiva en Bermuda, según los registros de la compañía.

Directores de firmas legales.

Esta entidad dirigida en bermuda es propiedad a partes iguales de los subsidiarios de Google que se nombran como directores a dos abogados y un manager de Conyers Dill & Pearman, una firma legal de Hamilton, Bermuda.

Los asesores fiscales le llaman a esto una solución de Doble Irlandés porque se basa en dos compañías irlandesas. Una que paga royalties para el uso de la propiedad intelectual, generando gastos que reducen los beneficios taxables irlandeses. Y la otra recolecta los royalties en un paraiso fiscal como Bermuda, evitando los impuestos Irlandeses.

Para mantenerse fuera de la retención fiscal, los pagos desde Google Dublin no van directamente a bermuda. Hacen primero una parada en los Paises Bajos evitando así responsabilidad porque las leyes fiscales irlandesas eximen ciertos royalties de compañías que sean de miembros de la Unión Europea. Así, los pagos primero van a la sociedad holandesa, Google Netherlands Holdings B.V. Que paga un 99.8% de lo que recolecta la entidad en Bermuda. Como curiosidad la sociedad basada en Amsterdam no tiene ni un solo empleado.

Más información en fiscalidadinternacional1.blogspot.com