Albert Einstein once said in a famous quote: “If the facts don’t fit the theory, change the facts”. One of the reasons that this quote is sensible even today is that often facts fall short of the big picture.
In today’s economy in which multinational enterprises (MNEs) play an increasingly prominent role, transfer pricing continues to be high on the agendas of tax administrations and taxpayers alike.
By 2016 the number of foreign trusts in New Zealand had more than tripled from 2008, reaching 10,697, according to New Zealand’s Inland Revenue Department (IRD). Those trusts were bringing around $50 million in professional fees to the country.
The concept of integrated reporting originates from the idea that enterprises, especially multinationals, should not just continue disclosing financial statements to secure the trust and confidence of the markets, their shareholders and investors.
SWIFT, Society for Worldwide Interbank Financial Telecommunication, has executed 28 million payment messages per day, as published in their May 2017 report. SWIFT connects more than 11,000 banks and financial corporations worldwide.
Central bankers from around the world, who met recently in Sweden to discuss the reform of solvency ratios, did not come to an agreement. Behind a highly technical debate is the opposition of two different approaches on risk management, hiding also an economic war between Europeans and Americans.
According to a report by the NGO (non-governmental organization) Oxfam published on March 27, 2017, one quarter of the profits of the 20 largest European banks is in tax havens, €25 billion euros, including €5.5 billion for French banks. This statement has been commented on in numerous financial newspapers and magazines.
Within the practice of transfer pricing, intercompany loans are among the most tricky and vital for multinationals. They are used to centralize their treasury and long-term financial needs to ensure cost-efficiency when borrowing on the market.
According to a report by the NGO (non-governmental organization) Oxfam published on March 27, 2017, one quarter of the profits of the 20 largest European banks is in tax havens, €25 billion euros, including €5.5 billion for French banks. This statement has been commented on in numerous financial newspapers and magazines.
By July 2016, the European Securities and Markets Authority (ESMA) had already warned European national regulators about highly risky foreign-exchange (forex) contracts.