Tax

By Marco Rossi on December 13, 2018

In 2017, Italy introduced a special tax regime intended to attract Italian and foreign nationals who have been resident outside of Italy for at least nine of the previous ten years, to transfer their tax residence to Italy and pay a fixed amount of €100,000 in lieu of the Italian regular income tax on their foreign source income. Taxpayers qualifying for the special regime are taxed on their Italian source income at usual graduated rates.…

SALT Shaker

I Saw the Sign: Illinois Permits Use of Electronic Signatures for Software License Tax Exemption

By Charlie Kearns & Charles Capouet on December 13, 2018

On September 26, 2018, the Illinois Department of Revenue issued a Private Letter Ruling confirming that certain electronic signatures satisfied the first prong of the software license sales tax exemption test. In Illinois, a license of software is not a taxable retail sale if a five-part test is satisfied. The first prong asks whether the license is evidenced by a written agreement signed by the licensor and the customer. The Department had previously concluded that…

Money Laundering Watch

First U.S. Indictment Relating to Panama Papers Charges Lawyer, Asset Manager, Accountant and Client

By Peter D. Hardy & Alicia M. Went on December 13, 2018

DOJ Targets Professional Enablers of Alleged Tax and Laundering Schemes On December 4, the Office of the U.S. Attorney for the Southern District of New York unsealed an elaborate indictment charging three professionals — a lawyer, an asset manager, and an accountant — along with a client in connection with an alleged tax evasion scheme arising out of the international Panama Papers scandal. At the heart of the Panama Papers story is the former Panamanian…

Tax Controversy and Financial Crimes Report

Treasury/IRS Issue Proposed Regulations to Ease FATCA Compliance Burdens

By Matthew D. Lee on December 13, 2018

In response to Executive Orders requiring a broad federal review of existing regulations, Treasury and IRS issued this morning proposed regulations easing certain compliance burdens imposed on foreign financial institutions and withholding agents by the Foreign Account Tax Compliance Act (FATCA) regime. The proposed regulations would eliminate withholding on payments of gross proceeds, defer withholding on foreign passthru payments, eliminate withholding on certain insurance premiums, and clarify the definition of investment entities. They also provide guidance on certain…

Tax Controversy and Financial Crimes Report

FinCEN Grants Further Extension of FBAR Deadline for Certain Financial Professionals

By Matthew D. Lee on December 13, 2018

On December 4, 2018, the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) announced a further extension of time for Report of Foreign Bank and Financial Accounts (FBAR) filings for certain individuals with signature authority over, but no financial interest in, one or more foreign financial accounts. The extension was granted in light of the notice of proposed rulemaking that FinCEN issued on March 10, 2016, which proposes to revise the FBAR regulations. One of the…

SALT Shaker

Be responsive and have the documentation to support your case.

By Eversheds Sutherland SALT on December 13, 2018

Advice from Amelia Baker, Georgia’s Senior Assistant Attorney General in an interview with Eversheds Sutherland’s tax partners, Eric Tresh and Maria Todorova at the Council On State Taxation’s Southeast Regional State Tax Seminar in Atlanta. …

Cooking with SALT

Holiday Wishes from Jones Walker

By Jones Walker LLP on December 12, 2018

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Legacy Advisors

Florida Sales Tax on Commercial Real Property Leases Reduced Beginning January 2019

By Marvin A. Kirsner on December 12, 2018

As commercial real property owners in Florida are likely aware, the Sunshine State imposes its sales tax on rental payments for the lease of real property. The general 6 percent state-level tax was reduced to 5.8 percent for 2018. The legislature passed a law to further reduce the state-level rate to 5.7 percent for occupancy periods beginning on or after Jan. 1, 2019. There is no reduction in the local option surtax that many Florida…

Tax Controversy 360

The (Potential) Demise of Auer Deference?

By Editorial Team on December 12, 2018

On December 10, 2018, the Supreme Court granted certiorari in the case of James L. Kisor v. Peter O’Rourke, Acting Secretary of Veteran Affairs, S.Ct. Dkt. No. 18-15. Although this is not a tax case, it has significant implications for taxpayers and tax practitioners. The reason: the Court will finally squarely address the issue of whether it should overrule its controversial opinions in Auer v. Robbins, 519 US 452 (1997) and Bowles v. Seminole …

The CPA Desk

Best Practices – Financials for Religious Congregations

By Annjeanette Yglesias on December 12, 2018

Churches, synagogues, mosques and other religious congregations aren’t required to file tax returns, so they might not regularly hire independent accountants. But regardless of size, religious organizations often are subject to other requirements, such as paying unrelated business income tax (UBIT) and properly classifying employees. Without the oversight of tax authorities or outside accountants, religious leaders may not be aware of all requirements to which they’re subject. This can leave their organizations vulnerable to fraud…