Webber Wentzel’s Post

Avoid costly mistakes in QSF establishment. Massachusetts imposes high taxes on QSF income, with a 5% flat rate and an additional 4% on income over $1 million. MA Letter Ruling 08-7 emphasizes the state's aggressive tax policy. Consider tax optimization and reduce QSF tax liabilities in other jurisdictions! #QSF #Taxation #MassachusettsQSF

This case serves as a stark reminder that HMRC continues to challenge artificial tax planning schemes, even when they appear to comply with the letter of the law. The Court emphasised the importance of looking at the economic reality of transactions rather than their legal form when interpreting tax legislation. #tax

Supreme Court Validates 90,000 Retrospective Income Tax Notices: A Detailed Analysis Read More: https://lnkd.in/dMMxfQiR #SupremeCourtVerdict #IncomeTaxNotices #FinanceAct2021 #JudicialRuling #ReassessmentNotices

The challenge over realized but undistributed corporate income in the Supreme Court case of Moore v. United States is said to be an opening skirmish on the constitutionality of a potential federal wealth tax. Proponents claim a wealth levy is within the constitutional category of “indirect taxes” and therefore not subject to apportionment among the states. Opponents counter that an exaction of that sort would be a direct tax, and therefore subject to apportionment. This particular disagreement is the latest in a centuries’-long controversy over how the Constitution distinguishes direct from indirect taxes. https://lnkd.in/gmyAeiGN

The Supreme Court addressed a big issue in the world of tax and planning yesterday - but effectively punted on the big questions. In their decision for Moore v. U.S., the Court (in a 7-2 decision) upheld a provision of the 2017 TCJA that applied a one-time tax to U.S-taxpayer shareholders of a foreign corporation on accumulated (but unpaid) profits in that foreign corporation. The Court went out of its way to say this decision was narrowly focused on the issue at hand and didn't touch the larger issue around realization that underlies a number of new tax proposals. As Justice Kavanaugh wrote for the Court: “To decide this case, we need not resolve that disagreement over realization. Those are potential issues for another day, and we do not address or resolve any of those issues here.” Those issues are important because they are central to proposals (think of the so-called "billionaire's tax" and other similar wealth tax proposals) that would potentially tax the increased value of certain assets where no income has been actually received. Another important aspect of the case is that it did not totally upend our current system of partnership taxation (as some feared it might). A finding for the Moores in this case could have effectively invalidated a large part of the U.S. tax system by challenging how partnerships are currently taxed. #SupremeCourt #taxpolicy

In this client alert, we analyse the recent decision of GIO v Comptroller of Income Tax [2024] SGITBR 1, where the Income Tax Board of Review decided that gains from certain buy-sell property transactions undertaken with a profit-seeking intention were income in nature under section 10(1)(g) of the Income Tax Act. Key contacts Senior Partner Edmund Leow, SC Partner Chun Ying Ng #SingaporeLawUpdates #IncomeTaxAct1947 #corporate #estate #trustplanning #realestate #tax #trusts #wealthpreservation

Understand the intricacies of advance income tax payments and the critical decisions a taxpayer must make at a crossroads. In his Business Mirror article, "𝗢𝗽𝘁𝗶𝗼𝗻𝘀 𝗮𝗻𝗱 𝗥𝗲𝗺𝗲𝗱𝗶𝗲𝘀 𝗳𝗼𝗿 𝗨𝗻𝘂𝘁𝗶𝗹𝗶𝘇𝗲𝗱 𝗔𝗱𝘃𝗮𝗻𝗰𝗲 𝗜𝗻𝗰𝗼𝗺𝗲 𝗧𝗮𝘅 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀", BDB Law Managing Partner, Atty. Fulvio Dawilan, explores the complexities of excess advance income tax payments, highlighting the irrevocability of the carry-over option and the amendments made by the Ease of Paying Taxes (EOPT) Act, including the 180-day BIR processing period. Read it here: https://lnkd.in/gAn6pVux #BDBLaw #WTSGlobal #TaxLawPH #AdvanceIncomeTaxPayments #EOPT #IrrevocabilityRule

Beware: IRS to Crack Down on Partnership Basis Shifting; Plus, Supreme Court Upholds Foreign Income Tax The Internal Revenue Service (IRS) has announced plans to eliminate the tax break associated with partnership basis shifting through a combination of regulatory changes and increased enforcement. And, in a 7-2 decision, the U.S. Supreme Court has upheld a lower court decision confirming the validity of a tax on U.S. citizens’ earnings received outside the country. Click below to learn more about these two topics.

Big win: SC favours taxman in case that will impact fate of 90,000 income tax notices https://lnkd.in/dGRTTwKZ

The Washington Post reported yesterday that the Supreme Court rejected a challenge to an obscure provision in the 2017 tax package that some experts fear could destabilize the nation’s tax system.   This is a complicated subject that involves being taxed on income that an individual does not receive. Most see this as unfair and claim that the tax system is too far-reaching. Others see this as a way to block Congress from creating a wealth tax.   While this is an ongoing story, it highlights the fact that our tax system is broken and needs to be overhauled.   #taxsystem #taxes #wealthtax #supremecourt #washingtonpost #courtcase #offshoreearnings #wealth