tax

When a beneficiary must step out of the shadows

Introduction of the OECD’s common standard for automatic exchange of financial information, as well as worldwide enforcement of FATCA by the United States, means that structures previously offering confidentiality will now be affected by the mandatory international system of exchange of tax information. This applies in particular to trusts and foundations.

Uncovering the secrets of tax havens

Work in the OECD to expand the exchange of tax information seeks to bring into the mainstream jurisdictions that have typically been regarded as tax havens or countries applying harmful tax competition.

Automatic exchange of information about employment income, directors’ fees and pensions

Member states of the European Union, following other jurisdictions around the world, are stepping up their work on extending the scope of automatic exchange of tax information, which is regarded as the most effective means of combating tax avoidance.

Payment for non-contractual use of real estate is not damages

Payments to the rightful owners of real estate taken over without legal grounds by the State Treasury or local governmental unit are subject to personal income tax as income “from other sources.” Whether the payments are subject to VAT depends on the specific circumstances.

Taxation of sale of recovered real estate

Income from the sale of recovered real estate expropriated under the Warsaw Decree may be subject to personal income tax.

Taxation of interest awarded against the State Treasury

Damages won from the State Treasury are exempt from personal income tax. Does this exemption also apply to statutory interest awarded in a legally final judgment?