Latest news with #taxloophole
BBC News
a day ago
- Business
- BBC News
States of Guernsey to close loop-hole to stop tax avoidance
The States has confirmed it will close a tax loophole as part of plans to help tackle the government's £44m the current law, people are able to create their own personal investment companies, lend them money, and then take it back as loan repayments without paying any guidance has been added to the Statement of Practice M45 "Legal avoidance" to make it clear that if anyone uses this type of company to take money out as a loan repayment, it will be treated as a dividend, and Policy and Resources Committee also approved a proposal to amend the Income Tax (Guernsey) Law, 1978, so the change will be included in the island's 2026 budget. Deputy Lyndon Trott, committee president, said: "When it comes to income tax, we have to ensure that everyone is paying their fair share, including businesses and individuals."But we are even more acutely aware of this at a time when we as a government have a £44 million deficit."This isn't the panacea for our financial woes, but we're taking action to close this loophole to make sure that we're collecting tax that belongs to the public purse."
The Guardian
a day ago
- Business
- The Guardian
Elizabeth Warren presses oil companies on tax break lobbying for Senate bill
Democratic lawmakers led by the Massachusetts senator Elizabeth Warren are pressing two energy companies about their efforts to 'win a $1.1bn tax loophole' in Donald Trump's so-called 'big, beautiful bill'. The proposed exemption, which Senate Republicans inserted into their version of the reconciliation mega-bill this month, would exempt fossil fuel companies from paying a tax codified by Biden in 2022. 'It's an insult to working people to give oil companies a massive tax handout while slashing healthcare and raising energy prices for millions of families,' Warren, who was a major advocate for the tax, told the Guardian. Enshrined within the Inflation Reduction Act, the corporate alternative minimum tax (CAMT) requires corporations with adjusted earnings over $1bn to pay at least 15% of the profits they report to their shareholders, which are known as 'book profits', in taxes. The Senate finance committee's proposal would shield domestic drillers from that tax by allowing companies to deduct certain drilling costs when calculating their income – a change that would allow some companies to pay zero dollars in federal taxes. Winning the tax tweak has been a major priority for fossil fuel interests this year. The oil major ConocoPhillips and Denver-based petroleum company Ovintiv directly lobbied for the change, federal disclosures show. On Thursday morning, Warren, the Rhode Island senator Sheldon Whitehouse, the Oregon senator Ron Wyden and the Senate minority leader, Chuck Schumer, sent letters to ConocoPhillips and Ovintiv pressing for answers on their role in shaping the CAMT change. 'Your company's lobbying disclosures explicitly prioritize this handout,' read the letters, which were shared exclusively with the Guardian. Both companies could 'benefit tremendously from this provision', read the letters, which are addressed to the ConocoPhillips CEO, Ryan Lance, and the Ovintiv CEO, Brendan McCracken, respectively. The Guardian has contacted ConocoPhillips and Ovintiv for comment. In their missives, the senators asked how much each company has spent on lobbying for the provision and will spend this year, how much each has donated to elected officials advocating for fossil fuel tax cuts, and how much of a reduction in taxes each company would see if the provision is finalized, requesting answers by 9 July. 'The rationale for CAMT was simple: for far too long, massive corporations had taken advantage of loopholes in the tax code to avoid paying their fair share, sometimes paying zero federal taxes despite earning billions in profits,' the signatories wrote. The proposed change, the letters note, closely resembles a bill introduced by the Oklahoma senator James Lankford this year, which would allow companies to subtract 'intangible drilling and development costs' from their CAMT income calculations. Lankford accepted nearly $500,000 in donations from the fossil fuel sector between 2019 and 2024, making it his top source of industry funding. The Guardian has contacted the senator for comment. Deductions for intangible drilling costs – referring to costs incurred before drilling, such as for labor and equipment – have been on the books since 1913, making them the oldest, largest US fossil fuel subsidy, according to one report on the Lankford proposal. 'Big oil now wants this deduction to apply not only for purposes of their taxable income, but for book income purposes as well,' the letters say. 'Put another way, if enacted, this provision would reduce or even eliminate tax liabilities for oil and gas companies under CAMT, allowing some to pay no federal income taxes whatsoever.' Other energy-related provisions in the draft reconciliation bill would phase out incentives for clean energy manufacturing and energy efficiency, causing utility bills to rise and jobs to be lost. This makes the tax break proposal 'especially insulting', says the letter, which was sent as temperatures spiked across much of the US. 'Americans deserve to know if big oil paid for these Republicans in Congress to carve out tax breaks just for them,' said Warren. As drafted, the reconciliation bill would also jeopardize energy security by curbing the growth of renewable energy, Schumer told the Guardian. 'The Republicans' plan is a complete capitulation to big oil at the expense of clean energy and American families' wallets,' Schumer said. 'Republicans would rather kill over 800,000 good-paying jobs and send energy costs skyrocketing than stand up to their big oil billionaire buddies.'
The Guardian
2 days ago
- Business
- The Guardian
Elizabeth Warren presses oil companies on tax break lobbying for Senate bill
Democratic lawmakers led by the Massachusetts enator Elizabeth Warren are pressing two energy companies about their efforts to 'win a $1.1bn tax loophole' in President Trump's so-called 'big, beautiful bill'. The proposed exemption, which Senate Republicans inserted into their version of the reconciliation mega-bill this month, would exempt fossil fuel companies from paying a tax codified by Biden in 2022. 'It's an insult to working people to give oil companies a massive tax handout while slashing healthcare and raising energy prices for millions of families,' Warren, who was a major advocate for the tax, told the Guardian. Enshrined within the Inflation Reduction Act, the corporate alternative minimum tax (CAMT) requires corporations with adjusted earnings over $1bn to pay at least 15% of the profits they report to their shareholders, which are known as 'book profits', in taxes. The Senate finance committee's proposal would shield domestic drillers from that tax by allowing companies to deduct certain drilling costs when calculating their income – a change that would allow some companies to pay zero dollars in federal taxes. Winning the tax tweak has been a major priority for fossil fuel interests this year. The oil major ConocoPhillips and Denver-based petroleum company Ovintiv directly lobbied for the change, federal disclosures show. On Thursday morning, Senator Warren, the Oregon senator Ron Wyden and Senate minority leader, Chuck Schumer, sent letters to ConocoPhillips and Ovintiv pressing for answers on their role in shaping the CAMT change. 'Your company's lobbying disclosures explicitly prioritize this handout,' read the letters, which were shared exclusively with the Guardian. Both companies could 'benefit tremendously from this provision', read the letters, which are addressed to the ConocoPhillips CEO, Ryan Lance, and Ovintiv CEO, Brendan McCracken, respectively. The Guardian has contacted ConocoPhillips and Ovintiv for comment. In their missives, the senators asked how much each company has spent on lobbying for the provision and will spend this year, how much each has donated to elected officials advocating for fossil fuel tax cuts, and how much of a reduction in taxes each company would see if the provision is finalized, requesting answers by 9 July. 'The rationale for CAMT was simple: for far too long, massive corporations had taken advantage of loopholes in the tax code to avoid paying their fair share, sometimes paying zero federal taxes despite earning billions in profits,' the signatories wrote. The proposed change, the letters note, closely resembles a bill introduced by the Oklahoma senator James Lankford this year, which would allow companies to subtract 'intangible drilling and development costs' from their CAMT income calculations. Lankford accepted nearly $500,000 in donations from the fossil fuel sector between 2019 and 2024, making it his top source of industry funding. The Guardian has contacted the senator for comment. Deductions for intangible drilling costs – referring to costs incurred before drilling, such as for labor and equipment – have been on the books since 1913, making them the oldest, largest US fossil fuel subsidy, according to one report on the Lankford proposal. 'Big oil now wants this deduction to apply not only for purposes of their taxable income, but for book income purposes as well,' the letters say. 'Put another way, if enacted, this provision would reduce or even eliminate tax liabilities for oil and gas companies under CAMT, allowing some to pay no federal income taxes whatsoever.' Other energy-related provisions in the draft reconciliation bill would phase out incentives for clean energy manufacturing and energy efficiency, causing utility bills to rise and jobs to be lost. This makes the tax break proposal 'especially insulting', says the letter, which was sent as temperatures spiked across much of the US. 'It's an insult to working people to give oil companies a massive tax handout while slashing healthcare and raising energy prices for millions of families,' said Warren. 'Americans deserve to know if Big Oil paid for these Republicans in Congress to carve out tax breaks just for them.' As drafted, the reconciliation bill would also jeopardize energy security by curbing the growth of renewable energy, Schumer told the Guardian. 'The Republicans' plan is a complete capitulation to big oil at the expense of clean energy and American families' wallets,' Schumer told the Guardian. 'Republicans would rather kill over 800,000 good-paying jobs and send energy costs skyrocketing than stand up to their big oil billionaire buddies.'
Zawya
10-06-2025
- Business
- Zawya
South Africa: End of tax loophole for Shein and Temu starting to have impact, say local retailers
South Africa's closure of a tax loophole that benefited global discount e-commerce retailers Shein and Temu is starting to show positive signs as some consumers reject the higher prices, the CEOs of local fashion retailers Mr Price and TFG said. Last November, South Africa's tax authority ended the practice known as "de minimis", which allowed companies to drop-ship packages valued at less than R500 rand from suppliers in China to consumers in South Africa, paying a flat rate of 20% in lieu of customs duties, and no VAT of 15%. Other markets including the United States, Britain and the European Union are also closing or planning to close loopholes that have given low-cost online platforms like Shein and Temu, owned by PDD Holdings', pricing advantages. "There's nothing punitive about them, it's just levelling the playing field so that everybody trading in South Africa and importing products pays exactly the same duties," TFG CEO Anthony Thunström told Reuters in an interview after the company's earnings release. Both Thunström and Mr Price CEO Mark Blair said it was difficult to get official data to quantify the exact impact on the fast-fashion giants. "But our understanding is that the closure of that loophole has significantly slowed down some of the international pure play online into South Africa," Thunström said. Local brick-and-mortar fashion and e-commerce retailers had urged South African regulators to impose a 45% import duty on all clothing imports, no matter the price, to level the playing field. "One thing all of us have seen on Shein is the social media outrage that's now taken place because of higher prices, so it does make us feel comfortable that the new legislation has been applied correctly," Blair told investors during an earnings presentation. "I think it's still a bit erratic, not across the board and if I look at our own e-commerce sales, it grew slightly ahead of our store sales, so there must be some positive impact," he added. Mr Price and TFG are also investing in technology and enhancing product ranges as they bid to gain market share. Mr Price also added that it expects to invest R1.6bn this financial year ending March 2026 in about 200 new stores, supply chain, store revamps and technology, while TFG said it plans to open over 100 new stores. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Zawya
09-06-2025
- Business
- Zawya
End of tax loophole for Shein starting to have impact, say South African retailers
JOHANNESBURG - South Africa's closure of a tax loophole that benefited global discount e-commerce retailers Shein and Temu is starting to show positive signs as some consumers reject the higher prices, the CEOs of local fashion retailers Mr Price and TFG said on Friday. Last November, South Africa's tax authority ended the practice known as "de minimis", which allowed companies to drop-ship packages valued at less than 500 rand ($28.12) from suppliers in China to consumers in South Africa, paying a flat rate of 20% in lieu of customs duties, and no VAT of 15%. Other markets including the United States, Britain and the European Union are also closing or planning to close loopholes that have given low-cost online platforms like Shein and Temu, owned by PDD Holdings', pricing advantages. "There's nothing punitive about them, it's just levelling the playing field so that everybody trading in South Africa and importing products pays exactly the same duties," TFG CEO Anthony Thunström told Reuters in an interview after the company's earnings release. Both Thunström and Mr Price CEO Mark Blair said it was difficult to get official data to quantify the exact impact on the fast-fashion giants. "But our understanding is that the closure of that loophole has significantly slowed down some of the international pure play online into South Africa," Thunström said. Local brick-and-mortar fashion and e-commerce retailers had urged South African regulators to impose a 45% import duty on all clothing imports, no matter the price, to level the playing field. "One thing all of us have seen on Shein is the social media outrage that's now taken place because of higher prices, so it does make us feel comfortable that the new legislation has been applied correctly," Blair told investors during an earnings presentation. "I think it's still a bit erratic, not across the board and if I look at our own e-commerce sales, it grew slightly ahead of our store sales, so there must be some positive impact," he added. Mr Price and TFG are also investing in technology and enhancing product ranges as they bid to gain market share. Mr Price said on Friday that it expects to invest 1.6 billion rand this financial year ending March 2026 in about 200 new stores, supply chain, store revamps and technology, while TFG said it plans to open over 100 new stores. ($1 = 17.7839 rand)
