bluuebunny/crossref_metadata_2025 huggingface dataset:
VAT Global Trends: What Are the Lessons To Be Drawn for Mexico?
Authors: Cruz Higuera Ornelas J. de la
Published: December 2023

The VAT is a fairly new tax when compared to other taxes, but it has positioned itself as one of the most important taxes in the world. The Mexican VAT system needs to be reformed to line up with global trends and best practices. Although rate variation is almost inevitable for VAT, the use of reduced rates and exemptions should be limited in order to avoid distortions, economic inefficiencies and unnecessary complications in a VAT system. In this article, the author explains that a VAT reform should be accompanied by simplification of the system in general, a more efficient administration of taxes, more effective audits, promotion of voluntary compliance and if possible, less administrative and compliance burdens for businesses.
Common Consolidated Corporate Tax Base
Authors: Carreño F. , Rodriguez R.
Published: December 2023

After eight years of preparation, the European Commission released on 16 March 2011 its Proposal for a Council Directive on a Common Consolidated Corporate Tax Base. The proposed Directive would, on an optional basis, allow group companies to file a single tax return in a single Member State for all group members operating in the European Union. The International Transfer Pricing Journal features a comparative survey examining how this proposal has been received in various Member States, along with an outline prepared by Mr. Louan Verdoner. Country report on Spain.
Federal Court of Appeal Upholds Lower Court Decision in Marzen: Key Lessons for Canadian Taxpayers
Authors: Dujsic M. , Gurr S. , Evans A.
Published: December 2023

On 29 January 2016, Canada’s Federal Court of Appeal (FCA) released its decision in the Marzen Artistic Aluminum case, which concerned the transfer pricing treatment of marketing fees paid to a taxpayer’s wholly owned foreign subsidiary. The FCA judgment reinforced certain issues decided by the Tax Court of Canada, including the importance of respecting contracts between separate legal entities and not inappropriately amalgamating separate and distinct entities.
Taxation of Financial Arrangements and Hedge Effectiveness
Authors: Joseph Anton
Published: December 2023

The hedge effectiveness test is the best available in determining whether an entity’s hedging arrangement qualifies for matching of its hedged item and hedging instrument for tax purposes.
Transfer Pricing Regulations – A Comparative Study on the Confluence and Conflict between India, the OECD and Other Countries
Authors: Dash S.K. , Krishnan S.
Published: December 2023

This article is the winning entry to the 5th Nani A. Palkhivala Research Paper Competition which was conducted by the All India Federation of Tax Practices. The authors comprehensively discuss the need for transfer pricing regulations in today’s world and provide an analysis of the situation in India, in comparison with the OECD’s guidelines and practices of other countries.
Stock-Based Compensation and the Arm’s Length Principle
Authors: Hubscher S. , Houlie J. (Jacky)
Published: December 2023

This article will explain the background and the accounting/tax implications of stock-based compensation (SBC) and its context within transfer pricing (TP) and the arm’s length principle. More specifically, the article will focus on the inclusion of SBC in the cost base for TP purposes. Legislation and judicial decisions regarding SBC are raised and considered and, finally, the article provides alternative approaches to TP methodologies for SBC.
Belgium-Luxembourg Income and Capital Tax Treaty (1970) Resolves Double
Taxation on Net Assets of Luxembourg Investment Funds with Belgian
Investors
Authors: Oepen W. (Wolfgang) , Lievens K. , Van den Bruel T.
Published: December 2023

The Brussels Court of First Instance has decided on two occasions that
a Luxembourg SICAV can invoke the Belgium-Luxembourg Income and Capital Tax
Treaty (1970) and claim exemption from Belgian tax on its net assets. The
judgements also seem to have consequences for Luxembourg contractual
funds.
Immovable Property – Increased Harmonization Regarding Place of Supply
Authors: Sol Rosa J.
Published: December 2023

On 26 October 2015, the European Commission published explanatory notes on the new VAT place of supply rules for services connected with immovable property which were recently introduced by implementing regulation 1042/2013 and entered into effect on 1 January 2017. This article analyses the new definition of “immovable property” and discusses, in particular, the question of when a service should be considered to be connected with it. Special focus is given to property management, intermediation and legal services connected to immovable property.
The Spanish Digital Services Tax: A Paradigm for the Base Enlargement & Profit Attraction (BEPA) Plan for the Digitalized Economy
Authors: Correa F.J. Nocete
Published: December 2023

In this article, the author argues that the extension of taxing powers over certain digital goods and services is based on a “digital tax illusion” that does not correlate with the anti-avoidance purpose of the BEPS Action Plan itself and has the potential of leading to double taxation, violating the EU fundamental freedoms, and overriding existing tax treaties. In particular, the author examines these potential issues in the context of the Spanish digital services tax, which the author believes is unlikely to lead to the revenue that has been projected by the tax authorities.
EU Public Country-by-Country Reporting
Authors: Verloove S. , Hoving P. , Aviles Gutierrez R.
Published: December 2023

This article provides an overview of the new obligations, risks and perhaps also opportunities that EU public country-by-country reporting entails for the large MNE groups subject to CbCR obligations.
Finance (No. 2)
Act 2010 and Finance (No. 2) Bill 2010
Authors: Roxburgh D.
Published: December 2023

This note deals with the provisions of Finance (No. 2) Act 2010 (FA2),
which became law on 27 July 2010 following the first Budget
Budget statement available at www.hm-treasury.gov.uk. presented to the UK Parliament by Chancellor of the Exchequer
George Osborne on behalf of the new coalition government, with the clauses
constituting Finance (No. 2) Bill 2010 (FB3),
Entitled Finance (No. 2) Bill 2010 because, although it is the third finance
bill of 2010, it is only the second of the new Parliament.
which are to be enacted after Parliament reconvenes on 6 September
2010.
Law Implementing the EU Tax Dispute Resolution Directive (2017/1852)
Authors: Orlandoni O. , Moramarco G.
Published: December 2023

This article examines Legislative Decree 49/2020, transposing the dispute resolution mechanisms of the EU Tax Dispute Resolution Directive (2017/1852) into Italian national law. The Decree introduces a new mechanism that is of particular relevance in respect of the resolution of tax disputes between Italy and other EU Member States. It provides for a binding and mandatory procedure for the competent authorities and for compatibility with domestic litigation and pre-litigation administrative settlement. Some interpretative issues concerning the scope of application of the Directive and the possibility of the procedure being available in respect of criminal conduct remain open.
Ruling Issued on Transfer Pricing Applicable to Commodities
Authors: Peixoto Orsini E. , Peixoto Orsini Marcondes D.G.
Published: December 2023

A ruling recently issued by the Brazilian tax authorities, while purporting to offer clarity to taxpayers, will likely lead to increased litigation and compliance costs for companies.
Difficulties in Determination of VAT Treatment of Various Categories of Financing Solved by “Economic Reality”?
Authors: Neijtzell de Wilde L.
Published: December 2023

In this article, the author discusses the difficulties in the determination of the VAT treatment of various financial products, including Islamic finance products, based on both EU and GCC legislation. Main findings are that under both systems, establishing whether or not financing products that achieve the same economic goal are indeed treated in a similar way is burdensome. Alternative solutions to achieve more justified results, such as applying a more economic approach or limited implementation of VAT exemptions, should – in the author’s view – be further investigated.
Taxpayer Alert on Thin Capitalization and Internally Generated Intangibles
Authors: Joseph A.
Published: December 2023

The Australian Taxation Office has issued Taxpayer Alert TA 2016/1 concerning entities inappropriately recognizing and revaluing intangible assets for thin capitalization purposes.
Implications for Transfer Pricing Regarding Government Subsidies Following the COVID-19 Pandemic
Authors: Riedl A. , Münch M. , Tridico Massó M.
Published: December 2023

The COVID-19 pandemic has been causing several tax issues and problems since the year 2020. Given this, the authors examine the influence of the COVID-19 pandemic on government subsidies granted by several countries with regard to transfer pricing. For this purpose, the authors will focus on the transfer pricing of limited-risk companies following the application of benchmarking analyses for these years examined herewith for comparability issues in an exemplary case study.
Case Closed: Tax Treatment of US S-Corporations under the Germany-United
States Income and Capital Tax Treaty – Treaty Benefits for Hybrid
Entities
Authors: Resch R.X.
Published: December 2023

The author discusses a series of recent German court decisions
addressing the issue of whether US S-Corporations must be granted the reduced
withholding tax rate of 5% on German-sourced dividends under the Germany-United
States Income and Capital Tax Treaty. The final Federal Fiscal Court decision
clarifies the interpretation of treaty article 1(7) concerning income derived
by and through fiscally transparent persons and is relevant for the application
of the treaty to all hybrid entities.
Netherlands
Tax-Exempt Portfolio Investment Entity
Authors: Dikmans Sylvia
Published: December 2023

The Netherlands has a number of tax regimes to
facilitate fund investment. In particular, the tax-exempt portfolio investment
entity was enacted on 1 August 2007. This entity is intended to be tax neutral
with the income being taxed at the investor level. Consequently, it is exempt
from corporate income tax and distributions are exempt from dividend
withholding tax. This article discusses the taxation of this regime, as well as
the requirements for its applicability.
Is the Polish Inheritance and Gift Tax Incompatible with the Free Movement of Capital in Relation to Third Countries?
Authors: Szczepański J.
Published: December 2023

This article examines whether the Polish inheritance and gift tax is compatible with the free movement of capital in relation to third countries. The analysis covers two provisions: the tax allowance and the personal tax exemption. It is argued that the second provision is incompatible with the free movement of capital in third-country scenarios, since the tax benefit, which can result in factual non-taxation in Poland, is denied to third-country residents who have third-country nationality.
The Taxation of Non-Profit Organizations in Pakistan
Authors: Hassan B.
Published: December 2023

This article discusses and evaluates tax provisions of the Income Tax Ordinance 2001 and the Income Tax Rules 2002 that govern the taxation of non-profit organizations in Pakistan.
The EU VAT and the Expansion of Turnover Taxation: Interfering Tax Systems?
Authors: Károlyi B.
Published: December 2023

In this article, the author provides a critical analysis of the ECJ’s approach and attempts to explore how the scope of the concept “turnover taxes”, for the purposes of article 401 of the VAT Directive, could be defined in a way that ensures that the provision is applied in accordance with its objective, which is to safeguard the goals of the common VAT system from interference by other domestic taxes. The author argues that in light of the narrow interpretation of turnover taxes in the ECJ’s case law, it is unlikely that the introduction of recent turnover-based business taxes would be prohibited by the VAT Directive.
An Overview of
Tax Information Exchange Agreements and Bank Secrecy
Authors: Anamourlis T. , Nethercott L.
Published: December 2023

This article examines the use of tax havens and how bilateral and
multilateral tax agreements could be useful in obtaining information to
overcome secrecy laws in particular countries. In this respect, the role and
relevance of tax information exchange agreements are examined.
New Transfer Pricing Regime in Finance Bill 2010
Authors: Hogan S. , Galvin C.
Published: December 2023

This article discusses the introduction of the new transfer pricing regime in Ireland following the recent publication of the Irish Finance Bill 2010. Topics addressed include Ireland’s position prior to the introduction of the new transfer pricing legislation, reasons for its introduction and the key features of the new legislation, including details of the generous grandfathering provisions.
Fixed Establishments and VAT Liabilities under EU VAT – Between Delusion and Reality
Authors: Merkx M.
Published: December 2023

Under the EU VAT rules, service providers and their customers must determine, on the basis of the place-of-supply rules and the rules that define the scope of the reverse charge mechanism, whether they or their contracting parties are liable for remittance of the VAT due on cross-border services. The VAT liability may depend on circumstances that concern the contracting party. In this article, the author discusses the practical issues that may arise in this respect, especially where the two parties – on the basis of assumptions or their perception of the facts – assess the situation differently.
The Current Transfer Pricing Environment for Multinational Enterprises in Korea
Authors: Kim Y-J.
Published: December 2023

The author, in this article, examines recent developments regarding the transfer pricing environment for multinational enterprises in Korea from the perspective of both direct taxation and customs duties.
Introduction of Advance Pricing Arrangement Legislation
Authors: Sarghi P. , Banders K.
Published: December 2023

New legislation is now in force that allows taxpayers to conclude
advance pricing arrangements. The authors analyse the new legislation and the
process to apply for such an agreement.
Tax Plan for 2013-2016 and Budget 2013
Authors: Pakarinen L.
Published: December 2023

This note examines tax measures that Finland is planning to enact in the coming years. The Finnish government published its Tax Plan 2013-2016 in the spring of 2012. Most of those measures were included in Budget 2013, which was presented to the parliament in September 2012.
An Overview of ATAD Implementation in EU Member States
Authors: Popa O.
Published: December 2023

This note provides an overview of implementation trends in the Member States of the five anti-tax avoidance measures in the ATAD (2016/1164), based on information included in the new product launched by the IBFD, the ATAD implementation tables.
Argentinian Court Decides that the Sixth Transfer Pricing Method Must Be Used for Customs Valuations Based on Business Substance as a Decisive Factor
Authors: Screpante M.S.
Published: December 2023

This article discusses the 2021 Maltería Pampa case, decided by the Federal Administrative Court, dealing with the valuation of exports between related parties.
Fiscal Federalism, Are There Lessons To Be Learnt for China?
Authors: Vanistendael F.
Published: December 2023

This article which is based on the second of the IBFD Tax Lecture Series in Beijing, China, questions as to whether some of the principles of fiscal federalism can be usefully applied to the system of taxation and public spending in China. In doing so, a comparison is made between the European Union, Belgium and China.
US Tax Cuts and Jobs Act: Part 1 – Global Intangible Low-Taxed Income (GILTI)
Authors: Pérez Gautrin C.
Published: December 2023

This article is the first in a series on US taxation that explains the recent US tax reform enacted by the US Tax Cuts and Jobs Act by focusing on Global Intangible Low-Taxed Income (GILTI), Foreign Derived Intangible Income (FDII), and the Base Erosion and Anti-Abuse Tax (BEAT).
Finance Bill 2012
Authors: Roxburgh D.
Published: December 2023

This note deals with the Finance Bill 2012-13, which was published on 29 March 2012. The Bill embodies proposals contained in the 2012 Budget, which was presented to Parliament on 21 March 2012, and includes other clauses that have been substantially issued for consultation in advance.
Permanent Establishment, “Building Sites” and “Observations” on the Commentary: Some Comments in Light of the Recent Supreme Court Decision in Case No. 28059
Authors: Guarino S.
Published: December 2023

The relationship between the general PE definition in article 5(1) of the OECD Model (2017) and the examples set out in the “positive list” in article 5(2) has been a longstanding issue. This topic was the subject of an “observation”, the legal effect and scope of which are uncertain. The recent decision of the Italian Supreme Court in Case No. 28059 (24 November 2017) has shed some light on these matters and is the focus of this note.
The Taxation of Income from Services under Tax Treaties: Cleaning Up the Mess
Authors: Arnold B.J.
Published: December 2023

The author, in this article, sets out his views as to how the confusion surrounding the taxation of income from services in the OECD and UN Model Tax Conventions and the tax treaties based on those Models might be resolved.
Tax Aspects of Cross-Border Secondment of Employees to India
Authors: Krishnamurthy V.
Published: December 2023

In this article, the author examines the tax aspects of cross-border secondments of employees to India, with special reference to the significant tax implications for the foreign entities and Indian entities involved, as well as for the employees themselves.
The Taxation of Mobile Activities
Authors: Suarez S.
Published: December 2023

This article summarizes the discussion of the taxation of mobile activities in Seminar I of the 63rd Congress of the International Fiscal Association, held in Vancouver, Canada on 2 September 2009.
Aging Labor Force Lowers U.S. Economic Growth
Authors: Sullivan M.A.
Published: December 2023

In this economic analysis, the author looks at labor force participation rates over the years and how economic growth might be affected by an aging labor force.
A Taxpayer’s Rights at the Hearing of His Appeal
Authors: Gammie M.
Published: December 2023

This article considers the various issues relating to the appearance of taxpayers before the First-tier Tax Tribunal in the United Kingdom.
Transfer Pricing in Business Practice in the Light of BEPS and Digital Transformation
Authors: Bärsch S-E , Ditz X , Kluge S.
Published: December 2023

New research on transfer pricing in German business practice shows that tax certainty is the single most important corporate goal, ranking above tax optimization and performance measurement. However, the complexity and volume of tax disputes on the provision of services, licensing of intangibles, financing, and business restructuring are increasing. They are also taking their toll on MNEs’ ability to manage them efficiently.
Royalties Exceeding an Arm’s Length Value: Deemed (In)applicability of “Secondary Adjustments” in Italy
Authors: Manca M.
Published: December 2023

In this article, the author discusses the legality of secondary adjustments under Italian law in respect of non-arm’s length royalty payments subject to a transfer pricing adjustment, having specific regard to the approach of the tax authorities.
ECJ Referral on whether Withholding Tax Burden on Foreign Pension Funds Receiving Dividends from Domestic Corporations Infringes the Freedom of Movement of Capital
Authors: Teichert F.
Published: December 2023

In this article, the author discusses the pending ECJ decision in the case of College Pension Plan of British Columbia (C-641/17), which addresses the potential unequal treatment of German versus foreign pension funds with regard to withholding tax on dividends.
The Trump Tax Reform Plan: Implications for Europe
Authors: Avi-Yonah R.S. , Mazzoni G.
Published: December 2023

The Republican majority in Congress and President Trump have advanced several proposals for reforming the US tax system. The details vary, and that variation has significant implications for European foreign direct investment (FDI) into the United States and for US FDI into the European Union. Under the House Blueprint, the United States will become (from an EU tax perspective) the world’s largest corporate tax haven, leading to an increase in EU direct investment into the United States. Under the Trump Plan, there will be additional incentives for US multinationals to shift profits to Europe. This article discusses similarities and differences between the House Blueprint and Trump Plan, and their implications for FDI.
Tax Harmonization in
Australia and New Zealand: Lessons from the European Union
Authors: Schalkwyk S.A. van
Published: December 2023

The author, in this article, examines the appropriateness, advantages
and disadvantages of tax harmonization from an Australasian perspective. In
this regard, the author considers what lessons Australia and New Zealand could
learn from the EU experience regarding tax harmonization.
The OECD Report on Hybrid Mismatch Arrangements
Authors: Russo R. (Raffaele)
Published: December 2023

The author, in this article, considers developments regarding hybrid mismatch arrangements, with especial reference to the recent OECD Report on this topic.
The VAT Exemption for the Management of Special Investment Funds: A Never Ending Journey?
Authors: Kasteren E. van
Published: December 2023

Although the journey towards fully understanding the wider implications of the VAT exemption for the management of special investment funds is a long and complicated one, a recent decision of the European Court of Justice sheds light on the path forward.
Central Management and Control and the Bywater Case: A Quantum Leap or Clarification of the Status Quo?
Authors: Meli J.
Published: December 2023

In this article, the author examines the outcome in the recent Australian High Court case, Bywater Investments Ltd v. Commissioner of Taxation; Hua Wang Bank Berhad v. Commissioner of Taxation, and contrasts it with earlier court decisions on the meaning of central management and control to ascertain whether the Bywater decision is a major step forward in jurisprudence determining the place of corporate residence, or merely a reaffirmation of the approach taken in the earlier cases. The article also canvasses evidentiary matters concerning the independence of board decision making and the meaning of carrying on a business in the context of passive investment entities.
Parliament
Authors: Valério C.
Published: December 2023

This overview highlights the Parliament’s (i) study noting uncertainty and fragmentation in the implementation of ATAD and DAC6; and (ii) study highlighting the lack of an impact evaluation of the tax intermediaries regulation on reducing tax evasion and undesirable tax avoidance.
Dividends Received by Investment Funds: An EU Law Perspective – Part
2
Authors: Genta G.
Published: December 2023

This article examines the cross-border taxation of dividends received
by equity funds. In particular, the author examines the issue of discrimination
and the related analysis of whether or not domestic and foreign funds are in a
comparable situation. In Part 1, published in European Taxation
2/3 (2013), the author examined ECJ and EFTA Court decisions in this
area. Part 2 analyses ECJ guidelines and the author's own approach to the
comparability analysis and the concept of fiscal coherence.
Comments on Professor Yariv Brauner’s Lecture “The True Nature of Tax Treaties”
Authors: Vermeulen H.
Published: December 2023

Professor Dr Hein Vermeulen comments on Professor Dr Yariv Brauner’s Klaus Vogel Lecture of 4 October 2019, hosted by the Institute for Austrian and International Tax Law (WU), Vienna, the title of which was “The True Nature of Tax Treaties”.
Thoughts on the Taxation of Global Banking
Authors: Lauermann H.
Published: December 2023

This contribution comments on the Klaus Vogel Lecture held on 18 October 2013 at the New Campus of the WU Vienna and published in this issue of the Bulletin.
Pillar Two and the Transitional Rule for Intra-Group Asset Transfers
Authors: Wilde M.F. de , Than Y.
Published: December 2023

In this article, the authors discuss the OECD/G20 Inclusive Framework’s technical guidance for governments on how the 15% minimum taxation under Pillar Two will operate regarding the transitional rule for intra-group asset transfers. They specifically examine cases where corporate taxation on realized capital gains is guaranteed in the exit jurisdiction.
Amendments to the Thin Cap Rule, the CFC Rule and the GAAR Following ATAD Implementation
Authors: Dafnomilis V.
Published: December 2023

In this note, the author provides a summary of the revised Greek rules following implementation of the ATAD in Greece. The author comments on the new rules and compares them to the former ones.
New Transfer Pricing Draft Circular on Annual Transfer Pricing Reports
Authors: Bicer R.
Published: December 2023

This article considers annual transfer pricing reports and the application of transfer pricing legislation in Turkey. These annual transfer pricing reports are discussed in light of a new transfer pricing Draft Circular issued under the scope of transfer pricing documentation rules. The format of the annual transfer pricing reports as specified by the tax authorities is also presented.
DSG Retail
Limited v. the Commissioners for Her Majesty’s Revenue and Customs
Authors: Casley A. , Sinclair I.
Published: December 2023

On 22 April 2009, the long awaited decision from the United Kingdom’s
first substantive transfer pricing case was made public. The Special
Commissioners found in favour of HMRC, deciding that the taxpayer’s transfer
pricing was not arm’s length and the result was an understatement of UK
corporation tax. This article sets out the background to the case and an
overview of its findings, and considers some of the potential implications for
taxpayers.
The Application of the Non-Discrimination Provision in Ukrainian Tax Treaties
Authors: Melnyk S.
Published: December 2023

In this article, the author analyses the application of the non-discrimination provision of tax treaties based on the OECD Model Tax Convention in Ukraine. The author considers the legal and practical aspects of the non-discrimination provision from a Ukrainian perspective and describes situations in which that provision can be applied.
2009 Budget
Authors: Roxburgh D.
Published: December 2023

The UK Chancellor of the Exchequer, Alistair Darling, presented his
second Budget to the House of Commons on 22 April 2009 following his Pre-Budget
Report (PBR) on 24 November 2008, which was reviewed in the February 2009 Issue
of European Taxation. This note deals with the Budget
proposals not included in the PBR.
Accounting for Uncertain Income Tax Positions
Authors: Kloosterhof Sander , Van Zoelen Dennis
Published: December 2023

Nothing is certain but death and taxes, but within taxes nothing is
also certain. The ultimate tax liability of an entity and its timing depends on
the interpretation of complex tax law. Generally, it takes a number of years
before an uncertainty is closed out. How to account for uncertainty in the
financial statements has been an area of discussion for many years. In this
article, the authors address recent developments regarding this
topic.
The Taxation of the Portuguese Venture Capital Industry
Authors: Câmara F. de Sousa da , Santiago B. , Amaro R. Andrade , Barbosa P. Capitão
Published: December 2023

This article provides an overview of the taxation of the venture capital industry in Portugal. In particular, the authors describe the origins of the industry, enumerate the types of venture capital vehicles, explain the lifecycle of VCFs, highlight limitations on investment by private equity/venture capital funds, discuss fund incorporation formalities and mechanics, as well as fund governance. In the second part of the article, the authors conduct an exhaustive analysis of the tax regime applicable to such funds and their domestic and foreign investors.
MAP Guidance Released by the Revenue Service
Authors: Schoueri L.E. , Barbosa M. Calicchio
Published: December 2023

On 10 November 2016, the Brazilian Revenue Service issued guidance on the mutual agreement procedure in tax treaties. The ruling put an end to years of uncertainty and provided transparency to taxpayers, but it set conditions that deviate from treaties and brought no concrete perspectives for the conclusion of pricing agreements.
Loosening of the Banking Secrecy and Legalization of Undeclared Foreign Income
Authors: Gahleitner G. , Hristov D.
Published: December 2023

This note provides an overview of the new Information Exchange Implementation Act provisions and their interaction with amended Austrian tax treaties, which is relevant especially in the case of a foreign state request. Further, means by which criminal tax consequences could be avoided in Austria, particularly in the case of an Austrian request, are considered.
Court of Justice
Authors: Morales T.
Published: December 2023

This overview highlights the ECJ’s decisions on (i) the imposition of penalties on suppliers of advertising services established in another Member State for non-compliance with the obligation to submit a tax form and (ii) the denial of tax benefits related to the EU Parent-Subsidiary Directive (2011/96) to companies incorporated in Gibraltar and subject to the corporate tax in Gibraltar.
EU VAT Cross-Border Rulings
Authors: Bartol Lesar M.
Published: December 2023

A pilot cross-border ruling (CBR) project has been set up under the auspices of the EU VAT Forum to allow taxable persons to obtain advance rulings on the VAT treatment of complex cross-border EU transactions. Several Member States are participating in this project. In this article, the author explains the background of the CBR project and reflects on its value, based on an analysis of the rulings issued so far, and also having regard to the VAT “double taxation dialogue initiative” (likewise initiated by the VAT Forum) and to the VAT Committee Guidelines. Finally, the CBR pilot project is also assessed through the prism of the protection of taxpayers’ rights.
Clarification of Tax Treatment of Certain Islamic Finance
Products
Authors: Muller N. (Niels) , Berg J. van den
Published: December 2023

On 12 January 2010, the Luxembourg tax administration published
Circular L.G.-A 55 on Islamic finance. The aim of the Circular is to clarify
the tax treatment of certain Islamic finance principles and financial
instruments.
The OECD Pillar 1 Blueprint: Why Amount B Matters
Authors: Dykes I.F. , Keegan L.H.
Published: December 2023

In this article, the authors consider the importance of Amount B in the package of measures in the OECD Pillar 1 Blueprint, the degree of existing support in the OECD Transfer Pricing Guidelines for the use of multi-territory and industry-wide comparables and the potential relevance of different profit level indicators.
New International Anti-Avoidance Legislation in France
Authors: Gibert B.
Published: December 2023

France, which has a long history of implementing anti-avoidance measures, enacted new anti-avoidance legislation in 2009. The new legislation focuses more on sanctions than on preventing the use of favourable tax regimes. In this article, the author outlines the new measures and the procedures for determining whether the measures apply to activities in a particular jurisdiction.
Islamic Finance – Need for Uniformity
Authors: Joseph A.
Published: December 2023

The release of the Johnson Report in 2010 highlighted the interest in
promoting Islamic finance activity in Australia. In this article, the author
provides an overview of the current tax position with regard to Islamic
financial instruments as well as the tax issues faced when considering parity
of treatment with conventional products.
Partnership between Israeli and Foreign Partners Creates Permanent Establishment in Israel
Authors: Gargir R.
Published: December 2023

This article looks at a recent Tax Ruling on the permanent establishment of a partnership held by Israeli and foreign corporate partners.
United Kingdom-United States FATCA Agreement Could Result in Substantive
Changes to UK Tax Law
Authors: Mukadi J.
Published: December 2023

This article analyses the United Kingdom-United States FATCA Agreement
from a technical perspective and indicates aspects that may be considered
incoherent, contradictory and confusing, as well as provisions that are unsound
or that transfer to the US government power to make substantive changes to UK
tax law.
The European Union’s Economic Substance Rules in Commonwealth Caribbean Jurisdictions: What Is the Purpose?
Authors: Yearwood R.R.F. , Nicholls A.D. (Alicia)
Published: December 2023

This article criticizes the EU concept of economic substance regarding Commonwealth Caribbean international financial jurisdictions, refuting the arguments on which it is based and demonstrating the impracticality of the “test of substance” under Criterion 2.2. It also argues that common law is effective in addressing tax avoidance and determining substance.
Spanish Tax Issues in Debt Restructurings: The Tax Treatment of Cancellation of Debt
Authors: Lorán M.
Published: December 2023

The author reviews the Spanish tax treatment of the cancellation debt that may take place when debt is restructured. When third-party lenders take control of the borrower and restructure the debt, potential tax issues may arise if the debt is subsequently renegotiated and cancelled. The Spanish accounting and tax authorities have issued a questionable set of interpretative criteria which may result in adverse tax consequences, which are reviewed in this article.
Applicability of the Domestic General Anti-Avoidance Rule to Concluded Tax Treaties
Authors: Tan H.T. , Oei J.
Published: December 2023

In this article, the authors discuss the issue of whether Singapore’s general anti-avoidance rule (GAAR) can apply to a Singaporean tax treaty where there is no express anti-avoidance rule or reservation to apply the GAAR. It also covers the decision of the Income Tax Board of Review in the first anti-avoidance case in Singapore, AQQ v. CIT.
US Update
Authors: Hammer V.
Published: December 2023

This is the third in a regular series of articles that examines recent significant developments regarding US tax matters as these relate to international taxation.
Strengthening Auditing in the European Union’s Mini One-Stop Shop Scheme
Authors: Müller R. (Robert)
Published: December 2023

In the Mini One-Stop Shop scheme (MOSS), the Member State of Identification (MSI) and the Member State of Consumption (MSC) in which the place of supply is located can carry out audits. The interests between the MSI and MSC with regard to auditing-declared VAT in the MOSS are divergent and lead to challenging auditing conditions to secure VAT revenue and reduce compliance requirements for entrepreneurs in the long term. To achieve these objectives, in this article, the author discusses the introduction of a single audit mechanism, as well as the participation of the MSI in the VAT revenue of the MOSS.
Seeking Certainty – Advance Ruling Practices
Authors: Beh Y. , Tan Y.
Published: December 2023

The comparative survey articles are based on selected papers presented
at the Baker & McKenzie 29th Annual Asia-Pacific Tax Conference held in
Singapore on 29 and 30 October 2013. The 30th Annual Asia-Pacific Tax
Conference is to be held in Hong Kong in November 2014. For more information,
please contact Liane Tsang of Baker & McKenzie, Hong Kong by tel.: +852
2846 2358 or by e-mail: liane.tsang@bakermckenzie.com.
The Concept of “Options Realistically Available” under the OECD Transfer Pricing Guidelines
Authors: Parekh S.
Published: December 2023

The author evaluates the transfer pricing concept of “options realistically available”. The article seeks to understand and analyse the meaning of this concept, identifies various factors that must be analysed to determine the options realistically available and briefly discusses some of the financial management tools and economic theories that can be used to apply this concept in practice.
Is the EU Unfairly Targeting Caribbean Nations?
Authors: Rodulfo C.
Published: December 2023

The European Union regularly publishes a list of countries that it believes facilitate tax avoidance. This “black list” often focuses, disproportionately to some, on countries in the developing world, including the Caribbean. Carissa Rodulfo explains why, in her view, the European Union should take care of its own house before throwing stones at Caribbean nations.
The FCE Case: Former United Kingdom Group Relief
and Treaty Discrimination
Authors: Cleave B.
Published: December 2023

This article reviews a recent UK case in which the England and Wales
Court of Appeal held that the former UK group relief rules were incompatible
with the non-discrimination article in the United Kingdom-United States Income
Tax Treaty (1975).
The Character and Source of Fees and Other Payments in Financial Transactions
Authors: Carman P.
Published: December 2023

The author focuses on the US tax treatment of the character and source of payments under financial transactions – primarily with regard to the issuance or transfer of debt instruments.
The Status of Mutual Agreement between the Netherlands and Germany on the Allocation of Severance Payments
Authors: Pötgens F.P.G. , Kool E.M.L.
Published: December 2023

The Netherlands Supreme Court has ruled that, under article 10 (income from dependent personal services) of the former Germany-Netherlands Income Tax Treaty (1959), severance payments should be allocated according to the Court’s previous case law. Any conflicting result that may be arrived at by the competent authorities of the two contracting states under a mutual agreement procedure (under article 25(2) of the Treaty) must not be allowed to disadvantage the relevant taxpayer.
Indian Transfer Pricing Round-Up for 2016
Authors: Bilaney S.K.
Published: December 2023

In this article, the author analyses the significant developments in Indian transfer pricing rules in 2016, including amendments to existing regulations to align these with the OECD/G20 Base Erosion and Profit Shifting initiative, relevant court decisions, the success of the Indian advance pricing agreement programme, and changes regarding related-party transactions.
Court of Justice
Authors: Valério C. , Xygka A.
Published: December 2023

This overview highlights the Court’s decision on legislation that allows only domestic companies belonging to a tax group to fully exempt dividends paid among them (Manitou BF (Case C-407/22)).
Post-acquisition integration - what you need to do? Malaysia
Authors: Wong A. , Yew C.M. , Tze-Shiang H.
Published: December 2023

Part of a comparative survey based on selected papers presented at the
Baker & McKenzie 24th Annual Asia-Pacific Tax Conference held in Kuala
Lumpur, Malaysia on 13 and 14 November 2008. The scenario assumed is where two
foreign groups merge overseas and this is followed by: a local merger; a local
acquisition of assets; or the retention of the two separate local operating
units. Questions considered are: 1. Are there alternative approaches to local
country consolidation, including the trade-offs among (i) tax efficiency, (ii)
speed and (iii) fees/costs? 2. Are there opportunities to step up the basis of
assets? 3. Are there any leveraging opportunities that could generate
tax-efficient interest deductions? 4. What are the capital gains tax and stamp
tax issues and potential planning relating to transfers of shares to position
the subsidiaries for the ultimate consolidation? 5. How can the tax losses of
one entity be preserved? 6. What opportunities exist to restructure
intellectual property rights so as to generate tax efficiencies? 7. What tax
elections, if any, need to be made? 8. If the entities have different tax
years, can this be changed? 9. Are there any obvious tax-related employment
issues that arise? 10. Are there any other obvious tax planning
opportunities?
Recent Clarification of the Tax Authorities on the Italian CFC Regime
Authors: Morri S. , Guarino S.
Published: December 2023

In an attempt to align the Italian tax rules with international standards and attract more foreign investment, considerable amendments regarding the Italian CFC rules have been enacted, including new rules for identifying blacklisted countries and computing CFC income. In addition, new procedural rules have been introduced concerning tax assessments. This article focuses on a selection of clarifications provided by the Italian tax authorities in Circular No. 35/E of 4 August 2016.
Transactional Net Margin Method Not Favoured by the Australian Federal
Court
Authors: Joseph A.
Published: December 2023

This article considers the recent decision of the Australian Federal
Court in SNF v. Commissioner. This case is especially
notable because the Court rejected the application of the transactional net
margin method.
Mandatory Disclosure of Aggressive Cross-Border Tax Planning Arrangements: Implementation of DAC 6 in Belgium
Authors: Philippe D-E. , Yüksel E.
Published: December 2023

In this article, the authors discuss Belgian legislation transposing DAC 6 into domestic law.
Case SAC 2020:35 – Supreme Administrative Court Reasserts the Prohibition to Recharacterize Transactions, Now in a Case that Deals with Group Internal Financing
Authors: Raunio M. , Urpilainen M.
Published: December 2023

The Supreme Administrative Court (SAC) held in a previous case, SAC 2014:119, that the Finnish domestic arm’s length provision (section 31 of the Act on the Tax Assessment Procedure) does not give the Finnish tax administration legal competence to recharacterize transactions as meant in paragraphs 1.64 and 1.65 of the 2010 OECD Guidelines. Case SAC 2020:35 confirms the SAC’s earlier position: there are certain fundamental private law legal forms and structures that cannot be disregarded by applying section 31 of the AAP. The SAC found that the transfer pricing analysis must depart from the fact that the Belgian subsidiary company providing intra-group financing legally owns the intra-group receivables and, thus, it has acted in the capacity of a creditor. The tax administration had the obligation to set tax consequences accordingly.
APA Guidance Released by Tax Authorities
Authors: Perrou K.
Published: December 2023

The Greek tax authorities have issued guidance for taxpayers wishing to seek an advance pricing agreement, including as regards preliminary consultations and the negotiation process. Sample forms have also been made available to taxpayers.
Technology Can Solve MTIC Fraud – VLN, RTvat, D-VAT certification
Authors: Ainsworth R.T.
Published: December 2023

Technology can solve missing-trader intra-Community (MTIC) fraud. In the early 2000s, MTIC fraud mainly concerned cell phones and computer chips. By 2006, MTIC fraud was targeting services (transfers of CO2 permits and VoIP services) and was no longer limited to the European Union. MTIC fraud is now fully digitized (the supply, the movement of the product and the funding). Technology is both the causative agent and the most effective countermeasure for this type of fraud. The details of the three major technology-intensive approaches for solving MTIC fraud are known since 2007: the VAT locator number (VLN); real-time VAT collection (RTvat); and certified tax software (Digital VAT or D-VAT). This article endeavours to contribute to the debate that the European Commission has opened on this topic with its recent Green Paper, by comparing and contrasting these proposals.
Opinion Statement of the CFE on the OECD Discussion Draft “Revision of the Special Considerations for Intangibles in Chapter VI of the OECD Transfer Pricing Guidelines and Related Provisions”
Authors: CFE Fiscal Committee
Published: December 2023

Comments on the Discussion Draft “Revision of the Special Considerations for Intangibles in Chapter VI of the OECD Transfer Pricing Guidelines and Related Provisions”
Case Notes
Authors: Dugar A. , Bhandari L.
Published: December 2023

The authors outline the decisions in five recent international tax cases delivered by the Delhi, Bombay and Gujarat High Courts.The first case note addresses the July 2017 Delhi High Court decision in Director of Income Tax v. Mitsui & Co. Ltd, which found that the Indian tax department failed to satisfy the onus of proof to show that the taxpayer’s liaison office in India constituted a permanent establishment. Rather, the office met the preparatory and auxiliary activities test in article 5(6)(e) of the 1989 India-Japan Income Tax Treaty.The second case note explains the decision of the Delhi High Court in Valvoline Cummins Private Ltd. v. Deputy Commissioner of Income-tax that the Indian tax department is required to demonstrate the existence of an international transaction between an Indian taxpayer and its foreign associated enterprise before it can make a transfer pricing adjustment to the taxpayer’s advertising, marketing and promotion expenditure, on the grounds that excessive amounts of such expenditure were incurred to enhance the associated enterprise’s brand, and that the associated enterprise should have compensated the taxpayer accordingly.The third case note addresses the recent decision of the Bombay High Court in Commissioner of Income Tax v. JSH Mauritius Ltd, which found that the capital gain derived by a Mauritius company from the disposal of a long-term share investment in an Indian company was not taxable in India by virtue of article 13(4) of the India-Mauritius Income Tax Treaty.The fourth case note reviews the Bombay High Court ruling in Ballarpur Industries Ltd v. Commissioner of Income Tax, which holds that a foreign exchange gain, which arises from a currency fluctuation upon remittance of underlying interest and royalty income does not have the character of that income, and therefore does not qualify for the same treaty exemption from Indian taxation as the interest and royalty income.In case note 5, the authors review the recent short judgement of the Gujarat High Court in Principal Commissioner of Income Tax v. M/s Veer Gems, where the court held that two enterprises must meet the criteria specified in section 92A of the Income-tax Act 1961 before they were associated enterprises, and transfer pricing adjustments could be made. Mere control of each company by the same family members was not sufficient.
Major factors impacting the implementation and effectiveness of the
R&D tax incentive
Authors: Kitnitchiva A.
Published: December 2023

This article is a summary of a more detailed research paper in which
the author describes the main features of the double-deduction research and
development (R&D) incentive in Thailand, and analyses factors relating to
the incentive's policy formation, implementation and effectiveness in
stimulating greater R&D expenditure in the private sector.
The Financial Transaction Tax: Where’s Robin Hood?
Authors: Hein R.
Published: December 2023

This article deals with the recent amendments of the European Commission’s Proposal for a Council Directive on a common system of financial transaction tax and analyses the proposed FTT in a practical context.
Does “Initial Phase Relief” Make the EU Minimum Taxation Directive (2022/2523) Invalid?
Authors: Kofler G.W. , Schnitger A.
Published: December 2023

In this article, the authors critically examine the “initial phase relief” granted under Pillar Two, which prevents the undertaxed payments rule from initially applying in order to promote the development of cross-border activities by purely domestic enterprises, a provision which is mirrored in the EU Minimum Taxation Directive (2022/2523). The authors conclude that the Directive’s approach to this relief might lead to discriminatory treatment by the Member States in certain scenarios, but this error will not likely invalidate the Directive.