A survey of Brazilian multinationals released alleges that the great majority of the companies surveyed feel that their government does not have a policy on outward foreign direct investment (OFDI) for their country. At the same time, they reportedly feel that such a policy is important, and that a number of instruments are needed to give it concrete expression. Outward FDI from Brazil has risen sharply in recent years, reaching USD27bn in 2006, USD10bn more than inward FDI. (Source: Tax-News.com)

The strength of US brands is underlined by the North American Top 10, which shares eight brands with the top 10 in the global rankings. Only the two leading brands in Asia and Europe, China Mobile and Nokia respectively, make it into the global top 10. China Mobile and the three Chinese banks in the Asian Top 10 – ICBC, China Construction Bank and Bank of China – all achieved big rises, whereas the gains at the other Asian companies were much more modest, and Samsung even suffered a 7 per cent fall. (Source: ftchinese.com)

About HKD200.7 billion in revenue was collected by the government in the 2007-08 fiscal year, up 29% on the previous year, according to Hong Kong Inland Revenue Department. Commissioner Alice Lau said total earnings grew 16% to HKD133.7 billion, with profits tax up 27% to HKD91.4 billion, salaries tax down 3% to HKD37.5 billion and property tax up HKD15 million to HKD4.8 billion. While stamp duty surged 106% to HKD51.6 billion and betting duty grew 8% to HKD13.1 billion, estate duty fell 55% to HKD353 million. (Source: Tax-News.com)

Smith & Williamson is launching two new ethical investment services: a Bespoke Green & Ethical Investment Management service and a Green Solutions AIM portfolio service. The first is a bespoke ethical investment service drawing on the full range of potential investments, offering the ethical investor the chance to actively invest in products and services that provide solutions to global environmental and social problems. The second offers a similar service but restricted to UK Alternative Investment Market stocks which qualify for exemption from UK inheritance tax. (Source: wealthbriefing.com)

India's Union Cabinet on May 6 approved the introduction of a Limited Liability Partnership Bill, 2008, which will replace the Limited Partnership Act, 2006. The proposed Bill would facilitate creation of another corporate structure, which it is hoped, would further enable growth of the economy. It was later referred to the Department Related Parliamentary Standing Committee on Finance for examination. (Source: LawAndTax-News.com)

According to the State Tax Administration, losses due to the earthquake, for both companies and individuals, can be deducted from tax returns. Supplies donated by other countries, individuals and companies will be exempt from import tax. People who paid tax on cars or ships that were destroyed in the quake can apply for a tax refund until the end of this year. Victims can also apply for a reduction or exemption from land use taxes. A deed tax on the purchase of a new home will also be cut or waved for earthquake victims. Charitable donations to earthquake-stricken areas will be tax free depending on the amount. (Source: Shanghai Daily)

BMW, the world's largest maker of luxury cars, became the first big European industrial victim of the credit crunch on Apr.24 as it took a €236m ($369m) charge because of falling prices and rising bad debt in the US. The move could lead to increased nervousness about the impact of the financial crisis on the real economy in Europe, even as most companies report robust first-quarter results. (Source: ftchinese.com)

The Vietnamese government has increased import tax rates on cars and automobile parts, it has emerged. Following earlier tax hikes in this area, the Ministry of Finance has announced that import taxes on wholly assembled cars have been raised to 83%, from the previous rate of 70%. Imported car parts will also see a 3-5% increase, to 25%.The new rates came into force on 22nd April, the Ministry announced. (Source: Tax-News.com)

The auction clearance rate in Melbourne plunged from 68% to 60%, with the number of properties under the hammer rising from 567 to 861. That in Sydney on May 3 was 53%, with 289 homes offered for sale. That compares with a clearance rate of 53% the week before, when just 145 properties were offered over the long weekend. Brisbane's clearance rate dropped from 36% to 22%, although there were only 33 properties offered for sale. (Source: smartcompany.com.au)

Wilmington Trust, a provider of banking and other financial services, has completed the acquisition of AST Capital Trust, a provider of directed trustee and trust administration services offered through financial advisors. AST Capital Trust will assume the Wilmington Trust name after a short period. This transaction adds more than $28 billion of assets under administration to Wilmington Trust, raising total assets to nearly $114 billion. It is expected to add approximately $27 million of revenue and be non-dilutive to Wilmington Trust's earnings in 2008. (Source: banking-business-review.com)

It was announced that Ukraine has officially informed the WTO of its acceptance of its membership agreement. Ukraine will therefore become the WTO's 152th member on 16th May 2008. WTO members agreed that Ukraine's accession would strengthen the multilateral trading system, and expressed appreciation for the great efforts accomplished by Ukraine to finalize the negotiations. (Source: LawAndTax-News.com)

Aluminium prices rose back above the key $3,000-a-tonne level on May 15 as investors bet that China's power shortages could be aggravated by damage to dams and the grid by the recent earthquake, leading to lower supplies. China is the world's largest producer of the metal, accounting for about 25 per cent of global output. Aluminium prices hit a peak above $3,200 a tonne in March after the worst Chinese snow storm in a century hit power supplies. (Source: ftchinese.com)

France and Germany have called on finance ministers to issue a mandate on the OECD when they discuss the initiative at the next meeting of the G7 leading industrialized nations on June 13. They hope the move, which comes in the wake of Germany's big Liechtenstein tax investigation this year, will result in the reinstatement of laggard countries on to the list of "uncooperative tax havens" run by the OECD, the body coordinating global action against such financial centers. (Source: silobreaker.com)

Finance ministers from the Association of Southeast Asian Nations (ASEAN) as well as China, Japan and South Korea agreed on the minimum scale of a regional foreign reserve swap. "We also agreed that the total size of the multilateralized CMI would be at least US$80 billion," finance chiefs from the above countries said in a joint statement. Of the total amount, Japan, China and South Korea would contribute 80 percent. (Source: Xinhua News Agency)

Governor of Reserve Bank of New Zealand said the domestic financial system had very little exposure to offshore credit risk or the structured debt products that damaged many overseas banks, but the central bank was introducing further measures to ensure liquidity for New Zealand banks. These include expanding the range of securities which can be used as collateral by banks in the money market to include residential mortgage-backed securities and local government and state agency debt. (Source: afxnews.com)

Aluminum Corp of China (Chinalco), will invest US$2.16 billion in the Toromocho copper mine project in Peru. The project is expected to produce 210,000 metric tons of copper annually by 2012, making it the country's largest mining project and boosting overall copper exports from the South American country by 25%. China Development Bank will finance the project. (Source: chinaeconomicreview.com)

Bradley Birkenfeld, 43, formerly a director in UBS' wealth management division, has been charged over allegations he helped a billionaire real estate developer evade millions of dollars in US income taxes. Mr. Birkenfeld's indictment also names Mario Staggi, 43, a Liechtenstein-based banker. Prosecutors accuse the pair of fictitious trusts, bogus companies and other false entities to hide around $200 million in assets for an unnamed US client. They each face up to five years in prison if convicted. (Source: Times Online)

It is announced that from 1st July, 2008, new regulations will be put in place for the patenting procedure and the publication practice of the Swiss Patent Office. The amended federal law on patents aims to adapt the Swiss patent law to technological progress and new international developments which have taken place over the past few years. The amendment introduces numerous substantial modifications and also creates important changes in the procedure for granting Swiss patents. (Source: LawAndTax-News.com)

The Hinduja business family is planning investments of about $50bn in the next five years in India and abroad, led by a planned foray into oil and gas in Iran. The group is also planning large investments in real estate, automotives, power and infrastructure, mostly in India, Europe and the Middle East. Based in the UK, India and Switzerland, the group is publicity-shy and total sales are estimated in the Indian media at about $11bn.(Source: ftchinese.com)

Bank of China, Hong Kong's only yuan clearing bank, raised transaction costs for conversions between the Hong Kong dollar and the yuan by more than seven times. The spread between the cost of buying and selling Hong Kong dollars for the yuan was widened to 0.75 percentage points from 0.10 percentage points on May 5. The Hong Kong dollar is pegged at HK$7.8 to the US dollar, while the yuan has risen some 19% against the Hong Kong dollar since July 2005. (Source: chinaeconomicreview.com)

In the Association of Superannuation Funds of Australia's submission to a Federal Government review being conducted into self-managed super funds, the peak body has called for a mandatory licensing regime to improve the skill levels of DIY super fund trustees. ASFA argues the measure is required because tax office surveys have shown that many DIY super fund trustees do not understand basic tenets of the superannuation regulatory framework. (Source: smartcompany.com.au)

The Philippines' gross international reserves (GIR) rose slightly to $36.7 billion in April from $36.6 billion in the preceding month, central bank data showed. Foreign exchange inflows consisted mostly of the bank's gains from foreign exchange operations, its income from investments abroad, as well as the government's deposit of proceeds from a loan from the Asian Development Bank. The latest GIR level can cover 6.2 months of imports of goods and payments of services and income. (Source: afxnews.com)

FDI from the EU into China, excluding Hong Kong, dropped sharply from six billion euros (9.3 billion U.S. dollars) in 2006 to 1.8 billion euros last year. It was quite a small amount if compared with the total foreign investment by the EU. In 2007, EU FDI outflows rose by 53 percent from 275 billion euros in 2006 to 420 billion euros in 2007. Meanwhile, Chinese investment in the EU also decreased significantly from 2.2 billion euros in 2006 to merely 0.5 billion euros last year. (Source: chinaview.cn)

According to the latest FT/Harris poll, strong majorities in five European countries consider that income inequality is too great. 78 per cent of respondents in the US also think the gap is too wide. For the first time, the FT/Harris poll surveyed opinion in Asia. In China, 80 per cent of respondents think income inequality is too great. However, Japan recorded the lowest figure of all countries surveyed, with 64 per cent. (Source: ftchinese.com)

Delegations from the European Commission and Liechtenstein have conducted a further round of negotiations on the envisaged Anti-Fraud Agreement, which sets out a framework for cooperation in the area of tax. Liechtenstein is aiming to achieve a negotiation result that entails no lesser but also no greater obligations than those the EU States have imposed upon themselves. One of the goals of the Anti-Fraud Agreement is to regulate cooperation on tax matters. (Source: LawAndTax-News.com)

【Chief Editors: Cynthia Ding 】

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