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Netherlands to Introduce Withholding Tax on Dividends

June 5, 2020

The Dutch government announced on 29-05-2020 that it plans to introduce a withholding tax on dividends paid to tax havens in an effort to curtail tax abuse and dispel its image as a country that serves as a transit point for companies engaged in tax avoidance.

In 2024 the Dutch government is planning to introduce a new withholding tax on dividend flows to low tax jurisdictions. This will mark another big step in the fight against tax avoidance. 

The New Tax Will Come on Top Of The Withholding
Tax To Be Imposed on Interest and Royalties From 2021.

The New Tax Will Enable The Netherlands To Tax
Dividend Payments To Countries That Levy
Little or No Tax And Will Also Help Curb
The Use Of The Netherlands As A Conduit Country.


The measure will apply to financial flows to countries with a corporate tax rate of under 9% and to countries on the EU blacklist, even if the Netherlands has a tax treaty with them.


As State Secretary for Finance Hans Vijlbrief explains: ‘This additional withholding tax represents another major step in our fight against tax avoidance. Financial flows channeled from or through the Netherlands to another country where they are not or not sufficiently taxed, will soon no longer go untaxed. It’s now vital to make even better international agreements to prevent other countries being used for tax avoidance purposes.’


From 2021 interest and royalties will be subject to a withholding tax. This is one of the measures taken by this government in recent years to tackle tax avoidance. The effects of these measures are monitored wherever possible. This has revealed that, contrary to expectations, there are large dividend flows to countries that levy too little tax. 


In 2016 they totaled 35 billion euros, and not 22 billion euros, as announced earlier. The figures for 2018 show that this amount has now risen to nearly 37 billion euros. The reason the initial estimate was too low is that earlier surveys by SEO Amsterdam Economics only looked at dividends paid out from current-year profit, whereas the Dutch central bank (DNB) also tracks retained earnings that may be paid out in later years. The withholding taxes on interest, royalties and dividends will specifically target these financial flows.


Need To Restructure Your Netherlands Companies?

 
Contact the Tax Lawyers at 
Marini & Associates, P.A.  

for a FREE Tax HELP Contact us at:
www.TaxAid.com or www.OVDPLaw.com 
orToll Free at 888-8TaxAid
 




 

Read more at: Tax Times blog

IRS Reopening Offices In 8 States & Puerto Rico By June 29!

June 5, 2020

According to Law360, the Internal Revenue Service plans to reopen operations in eight states and Puerto Rico in June that had been shuttered because of the COVID-19 pandemic, IRS Commissioner Chuck Rettig told employees in an internal email provided to Law360.

 
 
IRS Commissioner Chuck Rettig 
Sent A Letter To Agency Employees on June 3, 2020

 

 

  With Plans To Reopen Operations 
In Eight More States And Puerto Rico.

 

IRS facilities in Georgia, Tennessee, Michigan and Missouri will start reopening June 15, Rettig said in an email dated Wednesday, followed by operations in Puerto Rico, Ohio, Indiana, California and Oregon on June 29. The facilities include key processing centers, notice print facilities and call center operations, Rettig said in the email.

 

Rettig's email comes during the week employees started returning to work at offices in Kentucky, Texas and Utah. 
"We will continue to focus on nonportable work," he said. "For those who can perform their duties at home, our mandatory telework policy remains in effect for the foreseeable future to maximize social distancing."

 

The agency will contact returning workers as soon as next week to allow time to make child care and other personal arrangements, Rettig said.

 

The IRS told Law360 that the reopening of offices in Georgia, Michigan, Missouri and Tennessee includes 51 offices with just more than 15,000 employees. Of those, 8,500 can telework and the remaining can be recalled to perform non-portable work, the agency said.

 

The reopening starting June 29 in California, Oregon, Indiana, Ohio, and Puerto Rico includes 79 offices with about 13,000 total employees, the IRS said. Of those, 7,000 can telework and the remainder can be recalled to perform work that isn't portable, the agency said.

 

The commissioner reminded workers that if they're experiencing symptoms of COVID-19, the disease caused by the coronavirus, they shouldn't come to work and may have to provide documentation if their sick leave exceeds three consecutive workdays.

 

Rettig also said workers in high-risk groups, as defined by the U.S. Centers for Disease Control and Prevention, can request weather and safety leave if they can't telework. Every duty post will be studied after each shift to ensure appropriate cleaning, supplies and social distancing guidelines are met.

 

In a Thursday statement, the National Treasury Employees Union, which represents 150,000 federal employees in 33 agencies and departments, including the IRS, said the reopening plan Rettig announced includes large campuses in Atlanta and Kansas City, Missouri, and Fresno, California. The union also said it is waiting to get information from the IRS on how many employees it plans to call back for each location and business division. The union also wants an update on cleaning protocols and supplies of hand sanitizer, disinfectant wipes and masks, though workers can bring their own masks, the statement said.

 

"We understand that the IRS has a backlog of important work that cannot be done remotely and they need to restart systems as soon as possible, but our concerns about the coronavirus pandemic have not changed," Tony Reardon, the union's national president, said in the statement. "This week's return of workers in three states, in addition to those who have already volunteered to return, will test the safety of the IRS' recall plans."

 

Chad Hooper, president of the Professional Managers Association, which represents agency managers, declined to comment.

 

Just more than 19,000 employees began returning to work this week at offices in Kentucky, Texas and Utah, with 9,000 eligible for telework, the IRS said Thursday. Other agency workers had already started coming back to work on a voluntary basis.

 

Have a Tax Problem?
 
 
 Contact the Tax Lawyers at 
Marini & Associates, P.A.  
for a FREE Tax HELP Contact Us at:
www.TaxAid.com or www.OVDPLaw.com 
orToll Free at 888-8TaxAid
 

 

 

Read more at: Tax Times blog

Tax Court Announced That it Will be Conducting its Proceedings Remotely.

June 5, 2020

The Tax Court in a press release dated May 29, 2020 advised that as the COVID-19 pandemic continues to present public health risks and challenges, particularly where multiple individuals come together in a courtroom and in response, and until further notice, Court proceedings will be conducted remotely. 

 

See Administrative Order 2020-02 regarding remote proceedings and Administrative Order 2020-03 regarding Limited Entries of Appearance. If you have any questions, contact the Public Affairs Office at (202) 521-3355.

 

The Court will provide public access to the Court’s remote proceedings via real-time audio with dial-in information for each session posted on the Court’s website.

 

Administrative Order 2020-02 contains sample orders, such as the new standing Pretrial Order, and notices, such as the new Notice Setting Case for Trial, that incorporate the Court’s new remote proceeding procedures. The sample orders and notices will also be posted on the Court’s website under “Forms.”

 

According to the new Pretrial Order, litigants may appear for remote proceedings by telephone or by video using Zoomgov, which doesn’t require a personal Zoom account and is available to use free of charge. More information about how to use Zoomgov to appear at a Tax Court proceeding can be found on the Tax Court’s website.


Need Effective Tax Court Representation?


 Contact the Tax Lawyers at 
Marini & Associates, P.A. 

 

for a FREE Tax HELP Contact Us at:
www.TaxAid.com or www.OVDPLaw.com 
orToll Free at 888-8TaxAid

 

 

 

Read more at: Tax Times blog

Another Employer Gets Criminally Prosecuting For Failure To Pay Withheld Payroll Taxes!

June 4, 2020

On October 29, 2019 we posted The IRS is Now Criminally Prosecuting Employers For FailureTo Pay Withheld Payroll Taxes! where we discussed that the IRS is stepping up criminally prosecuting business owners for failing to turn over withheld payroll taxes and that in the last week there are no less than five (5) criminal prosecutions of business owners for failing the turnover withheld payroll taxes.

Now according to the DoJ, A Michigan real estate developer has been indicted for Tax Fraud! A federal grand jury in Grand Rapids, Michigan, returned an indictment on June 4, 2020, charging a Michigan businessman with tax evasion, filing false documents with the Internal Revenue Service (IRS), making false statements to IRS Criminal Investigation (IRS-CI) agents, and mortgage fraud. 

According to the indictment, Scott Allan Chappelle, of Okemos and East Lansing, Michigan, was an attorney and former Certified Public Accountant who operated Terra Management Company LLC, Strathmore Development Company Michigan LLC, and Terra Holding LLC, companies involved in real estate development and property management. 

Chappelle allegedly failed to pay over to the IRS employment taxes that were withheld from the wages of the companies’ employees. After the IRS attempted to collect the unpaid taxes, from 2010 through 2019, Chappelle allegedly evaded the payment of more than $830,000 in unpaid taxes by making false statements to the IRS about his and his companies’ assets and income, failing to disclose his vacation house on Lake Michigan, and purchasing real property in nominee names instead of his own. 

Chappelle is also charged with making false statements to IRS-CI agents during its criminal investigation. As alleged, Chappelle told investigators that he had not personally purchased any real estate during the last three years when in fact he had purchased both a condominium in East Lansing and a house in Powell, Ohio, during that time. 

The indictment further alleges that Chappelle falsely told investigators that the condominium was for his son and paid for with student loan funds. 

Chappelle Is Also Charged With Filing A Tax Return For Terra Holdings on Which He Falsely Claimed That The Company Had No Employees And Paid No Wages.

The indictment also charges that Chappelle made false statements and submitted fraudulent documents to a bank when refinancing his lake house mortgage. 

If convicted, Chappelle faces a maximum term of imprisonment of five (5) years for tax evasion and making a false statement, three (3) years for filing a false document with the IRS, and thirty (30) years for bank fraud. He also faces a period of supervised release, restitution, and monetary penalties. 

An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.

 
Thinking of Borrowing From Your Company's
Payroll Tax Withholdings?

You Better Thank Again, if You Like Your Freedom!


Have Payroll Tax Problems?
 
 
 Contact the Tax Lawyers at 
Marini & Associates, P.A. 

 

for a FREE Tax HELP Contact Us at:
www.TaxAid.com or www.OVDPLaw.com 
orToll Free at 888-8TaxAid
 



Read more at: Tax Times blog

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