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News
05
International business believes in Iran
The volatile post-election situation ‘Liberal’ candidate and former
in Iran will not have a strong prime minister Mir Hossein
impact on the flow of foreign Mousavi won 33.75 percent of the
investment in the country’s vote.
economy, according to Gawdat Mousavi claimed he had won the
Bahgat, Director of the Middle East election before the official results
Studies Centre at Pennsylvania were released. He later accused the
University. authorities of falsifying the election
“In the short term current results.
political instability is not likely to The ongoing unrest has so far
have a significant impact on foreign resulted in the deaths of seven
investment in Tehran’s energy Mousavi supporters.
sector,” he said. The European Union has also
Protest demonstrations began in expressed concerns about the about the country’s future persists Republic has succeeded in signing
Tehran following the publication of situation in Iran. French Foreign international companies are likely major oil and gas deals with Russia
the election results. Thousands of Minister Bernard Kouchner has to be more hesitant to invest in and China.
opposition supporters, unhappy appealed to EU foreign ministers to Iran. Bahgat observed that if the
with the result of the vote, took to conduct an investigation into Iran holds the world’s second moderate candidate Mir Hussein
the streets. There was a clash possible irregularities in the largest oil reserves (after Saudi Mussavi somehow succeeds and
between demonstrators and law presidential elections in Iran. In Arabia) and the world’s second becomes president, the Islamic
enforcement agencies. response, Iran accused Paris of largest natural gas reserves (after Republic is more likely to attract
Mahmoud Ahmadinejad won interfering with the country’s Russia). foreign investment than under the
62.63% of the votes in the electoral process. Bahgat said despite American leadership of President
presidential race on June 12. The Bahgat said if the uncertainty and European sanctions, the Islamic Ahmadinejad.
Australian expats in
Offshore firm Appleby
tax crackdown
opens in Seychelles
While companies in the U.S. access to markets in Africa, India,
The Australian Senate passed modest Australian $200 million
continue to contract, one of the and the Middle East. Opening an
legislation in June that could over three years. The 23AG expat
world’s largest offshore firms has office in the Seychelles, he says,
make a major difference to the tax crackdown, meanwhile, was
announced it will become the first became a natural further step in
lives of some expats. said by the Treasurer to be worth
international concern to open an branching out into emerging
The abolition of section 23AG some Australian $675m in extra
office in the Seychelles. offshore markets.
of the Income Tax Assessment Act tax receipts over the same period.
It will be the third new office in “The infrastructure that has
went onto the statute book with The 23AG abolition has been
three years for Appleby, a 200- been created for the development
bipartisan support in a move passed into law despite the
lawyer firm that expects to of the international business that
which could have a huge impact perception by many that the
complete a recently announced we advise clients on in offshore
on Australian corporates and proposal posed many unanswered
merger with the Isle of Man’s centres is well developed,”
travellers alike. questions.
Dickinson Cruickshank in Bubenzer said. “The Seychelles
In simple terms, if Australian Michael Dirkis, senior tax
October. The firm is currently created a regulatory body a
taxpayers go overseas for between counsel at the Taxation Institute
seeking to expand into the rapidly number of years ago that
91 days and two years they will of Australia, provided a
emerging markets in Africa, Asia, provided the framework for
remain liable to pay Australian backpacker example in addressing
and the Middle East. another offshore centre and the
tax. The only way to avoid paying a Senate committee in Canberra
Peter Bubenzer, Appleby’s jurisdiction also had entered into
the tax will be to produce a during June. He indicated that
global group managing partner, a network of double taxation
certificate from another gap year students from Australia
says his firm had been looking at treaties.”
jurisdiction, a FITO or Foreign could find themselves waiting for
the Seychelles for the past six to Bubenzer says that Appleby’s
Income Tax Offset, to indicate most of a year after returning
eight months following enquiries experience in Mauritius
how much tax was paid home before they could sort out
from clients asking whether the emphasised the value of those
elsewhere. what tax they needed to pay.
firm had a presence in the treaty networks. The treaty
The issue tended to be Several experts including Dr
country. networks are reciprocal
overshadowed by a furore over Dirkis suggested there should be a
Bubenzer says Appleby opened arrangements between two
employee share schemes. This was ‘backpacker cut-off’ allowance to
an office in the neighbouring countries that preclude the re-
despite the fact that the reduce the expensive compliance
Indian Ocean nation of Mauritius taxing of repatriated income that
crackdown on share schemes was burden of chasing small amounts
in February 2007 so as to provide an individual or entity domiciled
expected to raise a relatively of tax.
© Zts corporate clients with greater in one country earned in another.
www.investmentinternational.com July/August 2009 Investment International
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