bluuebunny/crossref_metadata_2025 huggingface dataset:
The Digital Service Tax in Italy: Main Characteristics and Practical Issues
Authors: Bellavite L. , Morabito D. , Tognettini R.
Published: December 2023

In this article, the authors analyse the Italian digital services tax, which took effect on 1 January 2020, comparing it with the European Commission proposal.
Korea’s Recent International Tax Reform Plan
Authors: Lee K.G.
Published: December 2023

The article provides a summary of the key amendments proposed by the 2018 Korean Tax Amendment Package that may give a significant impact on international transactions or investments into or from South Korea.
US Update
Authors: Hammer V.
Published: December 2023

This article, which is the second in a regular series, examines recent significant developments regarding US tax and accounting as these relate to international taxation.
More Transfer Pricing Legislation Rounds through Case Law
Authors: Patel V.T. , Dhoot S. , Savla K.P.
Published: December 2023

This article analyses the effect of jurisprudence on the interpretation, practice and administration of the transfer pricing regulations in India.
Contractual Allocation of Risks and Substance: The Acer Case
Authors: Navarro A.
Published: December 2023

In this article, the author undertakes a thorough examination of the landmark Spanish transfer pricing Acer decision. The case refers to the denial of the deductibility of payments resulting from factoring agreements undertaken by Acer Spain – a limited risk distributor – with unrelated banks, adopted to manage liquidity risks arising from timing mismatches between its accounts payable and accounts receivable. Through a disputable interpretation of the limited risk agreement signed between Acer Spain and its principal Acer Europe, tax resident in Switzerland, the tax authorities and the National Court disregarded the allocation of said risk to Acer Spain. The Court neglected to analyse the case through the lens of the OECD Transfer Pricing Guidelines, confirmed a tax assessment that inexorably led to double taxation and gave its blessing for the use of transfer pricing rules as a general anti-abuse mechanism.
Setting New Guidelines on Transfer Pricing
Authors: Pineda Guevara S.M.
Published: December 2023

Since its accession to the OECD in May 2013, Colombia has initiated various institutional reforms proving its clear intention to implement the OECD’s standards and best practices from the BEPS Project. Within this context, in December 2016, the Colombian tax authorities enacted Law 1,819, which introduced major changes to the transfer pricing regime. However, a Regulatory Degree, which establishes the content and filing details of these new tax liabilities in Colombia, is still expected to be released.
Simplification and harmonization of the EU VAT invoicing and archiving rules
Authors: Lejeune I. , Mesdom B. , Verhaege O.
Published: December 2023

On 28 January 2009, the European Commission published its Proposal to
amend the EU VAT Directive. The aim of the Proposal is twofold: simplification
and harmonization of the numerous administrative obligations for businesses and
stimulation of the take-up of e-invoicing and e-archiving. In this article, the
authors focus on the preparatory work that has led to this Proposal, assess
whether the Proposal meets the aims and look at the next steps.
Application of the Spanish GAAR to a Cross-Border Financing Structure Implemented by a Multinational Group through a Netherlands Entity
Authors: Sánchez de Castro Martín-Luengo E.
Published: December 2023

In this article, the author discusses a case in which the Spanish general anti-avoidance rule was applied to a cross-border financing structure implemented by a US multinational group through the incorporation of a Netherlands financing entity.
Legal Protection in International Tax Disputes – How Investment Protection Agreements Address Arbitration
Authors: Heer L.J. de , Kraan P.R.C.
Published: December 2023

The authors, in this article, examine whether or not international tax disputes can fall within the scope of bilateral investment protection agreements and, if so, to what extent and under what circumstances.
Federal Tax Court Reaffirms the Limits of Taxing Businesses upon Their Ultimate Exit from Germany
Authors: Andresen U.
Published: December 2023

This article explores two recent judgements of the Federal Tax Court in which the court reaffirmed the limits on exit taxation in cases where the applicable income tax treaty does not prevent the German tax authorities from executing their right to tax income that originated in Germany even though such income – at a later point in time – is only realized in a tax-exempt foreign permanent establishment or by a person that is no longer subject to either resident taxation or taxation at source in Germany.
Hong Kong’s Territorial Tax Regime under Fire – The Impact of BEPS 2.0, the EU Greylist and Hong Kong’s Struggle to Remain Competitive
Authors: Tse A. , Kavanagh J. , Aronson D.
Published: December 2023

This article discusses the Hong Kong SAR’s response to the OECD’s base erosion and profit shifting version 2.0 proposal and its placement on the EU greylist.
The Missing Piece of the US Tax Reform: Would VAT Make America Great Again?
Authors: Bal A.M.
Published: December 2023

Taking into account the rapid expansion of VAT, its reputation for revenue generation and President Trump’s concerns about fair trade policy, the question arises why the United States does not have and does not intend to implement a VAT. In this article, the author summarizes and comments on President Trump’s and House Republicans’ positions on VAT and border tax.
Foreign Tax Credit – Is a Carry-Forward Obligatory?
Authors: Daurer V. , Tüchler N.
Published: December 2023

The authors, in this article, explore what could be the legal basis for the granting of a tax credit carry-forward in respect of foreign taxes, with emphasis on the three legal bases for this, i.e. national law, EU law and treaty law.
Explainaway Ltd Decision: Corporate Capital Gains and Derivative Transactions
Authors: Lallemand C.
Published: December 2023

This article looks at the recent First Tier Tribunal decision in the case of Explainaway Ltd, in which the taxpayer sought to use cash settled financial futures to manage exposure to corporation tax on capital gains. The development of the Ramsay principle and comparison with the decision in the case of Howard Peter Schofield are also considered. The Explainaway case is the first instance of application of the loan relationship unallowable purpose test.
Tax Loss Utilization through Company Reorganizations
Authors: Perrou K.
Published: December 2023

In this article, the author outlines the rules of the Greek Income Tax Code on company restructurings and transfers of losses, including the impact of the applicable anti-abuse rules, in light of recent guidance issued by the Greek tax authorities.
Starbucks versus the People
Authors: van den Hurk H.
Published: December 2023

In this article, the author provides his opinion on the current debate on tax avoidance by multinational enterprises.
The Revolution in Automatic Exchange of Information: How Is the Information Used and What Are the Effects?
Authors: Finér L. , Tokola A.
Published: December 2023

The effect of automatic exchange of information standards on cross-border tax evasion has attracted only limited attention from academics. This article responds to this by analysing how the OECD Common Reporting Standard and the US Foreign Account Tax Compliance Act affect tax evasion and, therefore, states and taxpayers.
Intra-EU Trade and VAT: Will the Distinction between Goods and Services Still Be Relevant after 2020?
Authors: Amand C.
Published: December 2023

As from 2021, the rules governing cross-border business-to-consumer (B2C) distance sales of goods within the European Union will be aligned with those governing cross-border B2C supplies of telecommunications, broadcasting and electronic (TBE) services. In this article the author raises the question of whether the next step should be the alignment of the rules governing the place of business-to-business (B2B) supplies of goods and services in intra-EU trade.
Recent Developments in the Taxation of Indirect Share Transfers in South America: Lessons and Challenges from Chile, Colombia, Peru and Uruguay
Authors: Suffiotti G. , Masihy C.
Published: December 2023

This article reviews the changes to the taxation of indirect share transfers instituted in some South American countries (namely Chile, Colombia, Peru and Uruguay) and assesses the significance of the new regimes.
The Tax Residence
of Family Members of EU Officials – The Relationship between the Concepts of
Domestic and EU Law Residence
Authors: Helminen M.
Published: December 2023

In this article, the author considers the tax residence of family
members of EU officials in the light of the relationship between the concept of
residence in domestic and EU law, with emphasis on a forthcoming Finnish case
before the European Court of Justice on this topic.
VAT in the Digital Age Proposal: Can DRR Tackle VAT Fraud?
Authors: Amand C.
Published: December 2023

In this article the author discusses the European Commission’s proposal to impose the general use of e-invoicing as well as digital reporting requirements for intra-EU transactions, allegedly with a view to tackle VAT fraud and prevent fragmentation in the internal market. He explains why, in his opinion, the proposed rules are likely to miss its target to close opportunities for VAT fraud and wonders why simpler and more effective alternative solutions not been considered by the European Commission.
New Mandatory Clearing and Settling Rules for “Standardized Derivative Transactions”
Authors: Diaz de Leon Galarza J.
Published: December 2023

The author clarifies transactional and regulatory aspects of standardized derivative transactions, based on new tax provisions.
Technology: A Key Enabler for Tax Transformation
Authors: Brink M. van den , Bakker A.J.
Published: December 2023

This special issue of the Bulletin for International Taxation provides insights on how technology can help both MNEs and tax administrations. Experts in the field share their expertise and provide guidance on available technology and building a business case as well as successful implementation of a tax transformation project.
Labour Rents, Arm’s Length Transfer Pricing and Intangibles: Still Searching for a Solution to the BEPS
Authors: Kane M.A.
Published: December 2023

In this article, the author critically evaluates the tax treatment of “location savings” proposed by the OECD Base Erosion and Profit Shifting (BEPS) project.
EU Anti-Tax Avoidance Package: Impacts on Financial Institutions
Authors: Fernley D. , Moroney M.
Published: December 2023

The EU Anti-Tax Avoidance Package, and in particular the EU Anti-Tax Avoidance Directive, will have wide-ranging impacts on the financing and tax affairs of financial institutions. This Directive was formally adopted at the ECOFIN meeting on 21 June 2016, with implementation expected to be effective by 1 January 2019.
A Great Reset of VAT Rates?
Authors: Wolf R.
Published: December 2023

The EU Council reached an agreement on updated rules for VAT rates. The new rules allow Member States an extended use of reduced rates, while serving EU policy objectives. Most of the current country-specific derogations will become available to all Member States. Now that political agreement has been obtained, the formal adoption of the directive with the new rate regime will follow in a matter of weeks.
Practical Information on European VAT
Authors: Annacondia F.
Published: December 2023

As is traditional in the first issue of each year, this overview presents the key features of the VAT systems of most European countries (both EU and non-EU), including standard and reduced VAT rates, various thresholds, the format of the VAT identification numbers and contact details of the offices of the national tax administration which process VAT refund applications or provide information to non-resident businesses on national VAT rules. The overview is compiled by the editor on the basis of information provided by the members of the European Knowledge Group of IBFD and the International VAT Monitor’s correspondents at the beginning of 2018.
Corporate Income Tax Law Developments
Authors: Bernales R.
Published: December 2023

This note outlines recent corporate income tax law developments in Spain, in particular, various measures to stimulate economic activity and improve public finances.
The Legal Framework of the Botswana Special Tax Zone: The SPEDU Region and Action 5 of the OECD/G20 Base Erosion and Profit Shifting Initiative
Authors: Masuku-Chimbombi A.R.
Published: December 2023

This article considers the implications of the Botswana Special Economic Zone (SEZ) Policy of 2010 and the Botswana SEZ Act of 2015 that provides the legal framework under which SEZs are established, developed and managed in the light of Action 5 of the OECD/G20 Base Erosion and Profit Shifting initiative.
Court of Justice
Authors: Morales T.
Published: December 2023

This overview highlights the ECJ’s decisions on (i) a higher tax burden imposed on dividends received by certain entities that are resident in third countries in comparison to resident entities and (ii) an allocation of taxing rights on retirement pensions resulting from a tax treaty that distinguishes between employment in the private and public sectors.
Introduction of the Authorised OECD Approach into Japanese Domestic Law
Authors: Masui Y.
Published: December 2023

In this article, the author discusses the background, core elements and implications of the 2014 tax reform in Japan, which introduced the Authorised OECD Approach (AOA) into Japan’s domestic law.
The German Federal Fiscal Court: An Overview
Authors: Mellinghoff R.
Published: December 2023

In this article, the author describes the organization and functioning of the German Bundesfinanzhof (Federal Fiscal Court) and his approach to select issues of German (international) tax law.
The Income Tax Landscape in Latin America: A New Crypto Hub?
Authors: Chatlani R.
Published: December 2023

This article compares income tax measures introduced in Latin America and explores the challenges and opportunities that could arise for the region from the proliferation of cryptocurrencies and other crypto assets.
On the Occasion of the 60th Anniversary of European Taxation
Authors: Rogers-Glabush J.
Published: December 2023

In this Editorial Note, the Managing Editor of European Taxation provides an overview of the history of the publication of the journal, as well as the articles featured in this 60th Anniversary issue.
The Distinct Equity of the Debt-Equity Distinction
Authors: Schön W.
Published: December 2023

The author, against the background of the debate on this issue, attempts to provide some explanations for the enduring existence of the debt-equity distinction, disentangle the issues relevant for different areas of tax law and make proposals for a reinvigorated application of the underlying concepts. Ultimately, the dividing line between debt and equity should follow the teleology of the underlying tax issues in individual, corporate and international income taxation, respectively.
Accessory Tax Obligations Imposed on Digital Service Providers, Opinion Statement ECJ-TF 2/2023 on the ECJ Decision of 22 December 2022 in Airbnb Ireland and Airbnb Payments UK (Case C-83/21)
Authors: Kofler G. , Garcia Prats A. , Haslehner W. , Kemmeren E. , Lang M. , Nogueira J.F. Pinto , HJI Panayi C. , Raventós-Calvo S. , Richelle I. , Rust A.
Published: December 2023

In this CFE Opinion Statement, submitted to the EU Institutions in June 2023, the CFE ECJ Task Force comments on the ECJ decision in Airbnb Ireland and Airbnb Payments UK (Case C-83/21), wherein the Court decided, inter alia, that it was compatible with the freedom to provide services for the Italian tax authorities to impose tax obligations on service providers offering their intermediation services regarding real estate located in Italy, including the obligation to collect and report data and to withhold tax on the intermediated payments. It held, however, that it was disproportionate to request that they appoint a tax representative resident in Italy.
The New Transfer Pricing Regime
Authors: Patel P. , Sudhan M.
Published: December 2023

The authors provide a detailed description of the new transfer pricing regime in Fiji which took effect in 2012.
Polish Corporate Income Tax Treatment of Collective Investment Vehicles from a Domestic Law and Tax Treaty Perspective
Authors: Lewicki T.
Published: December 2023

This article examines Polish taxation principles applicable to collective investment vehicles pursuing business activities in Poland, with particular emphasis on existing tax controversies and potential disputes with the Polish tax authorities. The author discusses domestic, EU and international tax law implications associated with investments carried out through a collective investment scheme.
Landmark Tax Reform: Introduction of Goods and Services Tax in India
Authors: Bal A.M.
Published: December 2023

The introduction of a goods and services tax (GST) in India is regarded as the most significant event in the history of Indian indirect taxation. In this article, the author describes and evaluates the main features of the proposed GST system.
International Transfer Pricing in Developing Countries: Ghana Rising
Authors: Heggmair M. , Boehlke N. , Ali-Nakyea A.
Published: December 2023

This article looks into central issues which arise when dealing with transfer pricing in so-called developing countries, with a special focus on the development of a transfer pricing system in Ghana.
DEBRA: All That Glitters Is Not Gold
Authors: Ledure D. , Deré P. , Van der Velden M. , Bastiaens I.
Published: December 2023

The authors describe and critically examine the European Commission’s proposal for a common legal framework across the Member States of the European Union regarding an allowance system for equity financing, or “debt-equity bias reduction allowance” (DEBRA), and an additional interest limitation rule.
ECJ Decision in Bevola (Case C-650/16): A Missing Piece in the Marks & Spencer (Case C-446/03) Puzzle
Authors: Vermeulen H. , Dafnomilis V.
Published: December 2023

In this article, the authors discuss and comment on A/S Bevola and Jens W. Trock ApS v. Skatteministeriet (Case C-650/16). The article also provides an analysis of how a comparability analysis between a domestic and a foreign PE should be performed in cases involving final PE losses. Finally, the article provides an overview of the current status of the Marks & Spencer (Case C-446/03) exception as interpreted by ECJ case law.
Country-by-Country Reporting: The Primary Concerns Raised by a Dynamic
Approach
Authors: Grau Ruiz M.A.
Published: December 2023

The author examines potential implications of country-by-country
reporting in relation to the OECD Base Erosion and Profit Shifting initiative
and compares it with the previous Corporate Social Responsibility approach
within the European Union.
India Articulates Its View on Marketing Intangibles
Authors: Bhatnagar V.
Published: December 2023

The author considers the recent ruling of the Delhi High Court in the Sony Ericsson Mobile Communications case and analyses the relevant outcomes specifically as it relates to transfer pricing and marketing intangibles.
Hybrid Mismatches and the BEPS Project: A Spanish Perspective on Brazilian Juros
Authors: Loran M. , Villa E.
Published: December 2023

After providing background on the treatment of hybrid mismatches under the BEPS project, the authors discuss treatment of Brazilian juros under both domestic law and the applicable income tax treaty. Rulings by Spanish courts on this subject are also analysed.
The Evolution of Controlled Foreign Corporation Rules and Beyond
Authors: Arnold B.J.
Published: December 2023

This article traces the evolution of controlled foreign corporation (CFC) rules, including their compatibility with treaty provisions. It argues that CFC rules would be preferable to the Inclusive Framework proposal on the OECD/G20 Base Erosion and Profit Shifting Project (Pillar Two) for a uniform minimum tax on all CFC income.
Collective investment vehicles
Authors: Borsjé P. , Specken W.
Published: December 2023

Collective investment vehicles are used to take advantage of economies
of scale, cost reduction and many (operational) efficiency gains, including
decreasing administrative and monitoring burdens. This article focuses on
cross-border collective investment vehicle structures implemented through the
Netherlands, and, where appropriate, considers specific aspects in relation to
derivative instruments.
Practical Information on European VAT
Authors: The Editors
Published: December 2023

As is traditional in the first issue of each year, the green pull-out
section presents the key features of the VAT systems of most European countries
(both EU and non-EU), including standard and reduced VAT rates, various
thresholds, the format of the VAT identification numbers and contact details of
the offices of the national tax administration which process VAT refund
applications or provide information to non-resident businesses on national VAT
rules. The overview is compiled by the editors on the basis of information
provided by the International VAT Monitor’s
correspondents at the beginning of 2013.
OECD Discussion Draft on Transfer Pricing Aspects of Business Restructurings
Authors: Verlinden I. , Smits K.
Published: December 2023

For this survey,
authors from various countries have been invited to discuss the impact which
the OECD Discussion Draft on Transfer Pricing Aspects of BusinessTransfer
Pricing Aspects of Business Restructurings may have on the legislation and practice in their country.
Duties, Royalties and Customs Valuation Pending Italian Supreme Court Decision on the Inclusion of Royalties in Taxable Value
Authors: Allena M.
Published: December 2023

This note addresses the issue of the inclusion of royalties in a custom’s valuation declaration at the time of import. The analysis aims to provide a critical overview and interpretation of key issues regarding this topic. Against the backdrop of the new Union Customs Code (UCC), the author focuses, inter alia, on the ECJ’s decision in GE Healthcare GmbH (Case C-173/15) (which, although pertinent, refers to the previous regulatory framework). It is expected that more clarity and certainty, including for business players, will come with the upcoming rulings of the Italian Supreme Court.
UK Transfer Pricing Developments in 2013: O Tempora, O Mores
Authors: Casley A. , Boorman M.
Published: December 2023

The authors look back at the key developments in transfer pricing in
the United Kingdom over the last year and consider the potential effects on
taxpayers.
Claus Bohn Jespersen, Intermediation of Insurance and Financial Services in European VAT
Authors: Heydari S.
Published: December 2023

Review of Claus Bohn Jespersen, Intermediation of
Insurance and Financial Services in European VAT, Kluwer Law
International (2011), 442 pages.
Proposed Transfer Pricing Legislation
Authors: Foltea V.
Published: December 2023

On 5 November 2009, the Moldovan Ministry of Finance published a draft law amending the Tax Code that includes provisions concerning transfer pricing. The amendments were to take effect from 1 January 2010. This article summarizes the proposed amendments.
Commissioner Loses Transfer Pricing Appeal in SNF Case
Authors: Butler M. , Pengelly J.
Published: December 2023

The authors consider the recent decision of the Full Federal Court in the SNF case, which concerns the determination of arm's length consideration under a CUP analysis. The possible response of the Commissioner to his loss in this case is also discussed.
Tax Treatment of Derivatives
Authors: Diaz de Leon Galarza J.
Published: December 2023

The Mexican tax regime provides a general classification of derivative transactions that may be extended to multiple types of regular and sophisticated trades executed between Mexican and/or foreign counterparties on a day-to-day basis. Tax differences may result depending on whether the derivative instrument is classified as an equity derivative or as a debt derivative. The execution of these trades through Mexican recognized markets is also seen as a tax-efficient bridge for some particular cases. This article discusses the current tax implications that apply to derivative transactions in a domestic and international setting, taking into account the current tax laws as well as some of the most representative changes of the proposed 2014 Mexican Tax Reform that will become effective as of 1 January 2014 in the derivatives field.
The Coherence
Principle under EC Tax Law
Authors: Verdoner Louan
Published: December 2023

This article discusses the evolution of the coherence
principle through an examination of significant European Court of Justice (ECJ)
tax cases wherein Member States have raised the principle as a justification
for denying equal treatment. The author concludes that the ECJ rarely accepts
the coherence principle as a justification, despite the lack of EU
harmonization, and that such instances where it is accepted are diminishing as
the ECJ becomes more concerned with the discriminatory behaviour of Member
States.
The Principal Purpose Test: A Critical Analysis of Its Substantive and Procedural Aspects – Part 2
Authors: Zahra I.
Published: December 2023

In Part 2 of this article, the author completes his analysis of the new principal purpose test (PPT) contained in article 29(9) of the OECD Model (2017) with regard to its interpretative and procedural implications and how the PPT relates to other anti-avoidance provisions.
Singapore's 2009 Budget : strong measures for resilience in a
recession
Authors: Lee F.H.
Published: December 2023

This article discusses the tax measures in Singapore's Budget for
2009, announced on 22 January 2009, which deal with the economic downturn. The
article first considers the tax measures designed to ease business cash flow
and enhance Singapore's competitiveness, including a cut in the corporate tax
rate, enhancing the loss carry-back relief and the start-up exemption, and
broadening the exemption for foreign-source income. The article then looks at
the measures to promote the financial and maritime sectors, including enhancing
fund-management activities, recovery of the input GST for qualifying funds, and
broadening the withholding tax exemption for the maritime industry.
German Trade Tax Exemption for Third-Country Dividends Breaches EU Law
Authors: Baltromejus M.
Published: December 2023

In this note, the author discusses the ECJ’s decision in EV v. Finanzamt Lippstadt (Case C-685/16), wherein the Court concluded that German provisions that result in a different tax treatment of dividends received from subsidiaries resident in non-EU countries in comparison to EU Member States are in breach of the free movement of capital.
New Transfer Pricing Regulations
Authors: Díaz Tong E. , Arenas Alvarado K.
Published: December 2023

This article reviews the highlights of new Ecuadorean transfer pricing rules approved by a modification of the Internal Tax Law as published in the Official Gazette on 23 December 2009. Topics covered include an introduction to Ecuadorean transfer pricing rules; key aspects of the new rules; and transfer pricing audits.
Commissioner Issues Draft Practical Compliance Guideline on Cross-Border Related-Party Financing Arrangements
Authors: Butler M.St.J.R. , Pengelly J. , Wang L.
Published: December 2023

The authors summarize recent draft guidance issued by the Australian Tax Office for scoring the risk of cross-border related-party financing arrangements.
Thin Capitalization Rules and Corresponding Tax Exemptions: All or Nothing
Authors: Meussen G.
Published: December 2023

The author, in this note, discusses the ECJ’s decision in Masco Denmark (Case C-593/14), which addresses the issue of thin capitalization rules that provide for an equivalent tax exemption for interest income in domestic situations only.
Taxation without Representation: The Case of Resident Non-Citizens
Authors: Lideikyte-Huber G.
Published: December 2023

In this article, the author examines the issue of taxation without representation as it relates to non-citizen taxpayers in the context of political and voting rights.
VAT Exemption for Financial Services in the Banking Sector – The Italian Approach
Authors: Bisioli A. , Zanetti M.
Published: December 2023

For more than 20 years, starting with the judgment in SDC (Case C-2/95), the Court of Justice of the European Union has provided guidance on the correct interpretation of the EU VAT provisions related to exempt financial (in particular, “related to payments”) services supplied to banks and financial institutions. The principles established at the EU level have been adopted by the Italian tax authorities. In this article, the authors first illustrate the historical evolution of the matter, and then seek to suggest a possible application of the consolidated principles in order to extend the exempt treatment to the current economic scenario, which is characterized by increasing fragmentation and complexity of fintech services.
A Critique on the Effectiveness of “Exchange of Information on Tax Matters” in Preventing Tax Avoidance and Evasion: A South African Perspective
Authors: Oguttu A.W.
Published: December 2023

In this article, the author discusses the effectiveness of various instruments for exchange of information in tax matters, with particular focus on South African developments.
On the Source of Interest
Authors: Mariani S.
Published: December 2023

In this article, the author canvasses the legislation and common law jurisprudence that is relevant to the determination of the source of interest in Hong Kong. He argues that the source of interest is not susceptible to a single, over-arching test and that its ascertainment is by its very nature multifactorial. He contends that, in its Departmental Interpretation and Practice Note No. 13, the Hong Kong Inland Revenue over-relies on the judicial “provision of credit test” in its most simplistic form. In the absence of authoritative Hong Kong jurisprudence on the matter, the author advocates focussing the analytical inquiry not the locality of a debt with respect to which interest is payable, but the proximate source of the obligation to pay interest. Accordingly, other factors may be more important than the provision of credit test.
New Rules for Head Office to Branch Scenarios – Comments on the
Skandia
Case
Authors: Courjon O.
Published: December 2023

The author comments on the ECJ decision in the Skandia case. She analyses the impact of this recent decision in relation to supplies of services between head office and branches, and the ramifications of this case, particularly in countries that recognize VAT grouping.
Corporate Tax Changes
Authors: Tzenova L.
Published: December 2023

This note describes recent developments in Bulgaria, including: the introduction of new EU requirements for the use of corporate tax in the form of State aid for regional development; amendments relating to the tax treatment of food vouchers; an extension of the exchange of information on certain types of income subject to withholding tax; and the introduction of measures to implement Council Regulation (EU) 2022/1854.
R&D Tax Incentives in Europe
Authors: Bal A. , Offermanns R.
Published: December 2023

In this article, the authors outline basic R&D concepts and provide an overview of tax incentives available in selected European countries. In particular, the article examines the current R&D framework in Germany, which lacks tax incentives, and makes recommendations for their introduction.
2014 Tax Highlights
Authors: Milosavljevic A.
Published: December 2023

In this note, the author describes tax amendments introduced in 2014, including changes to certain exemptions for newly incorporated entities, a new provision providing for a discount for taxes duly paid, as well as provisions on real estate transfer tax.
The Technical Aspects of the UK Patent Box Rules
Authors: Obuoforibo B.R.
Published: December 2023

In this article, the author explains the technical aspects of the new
UK Patent Box rules applicable to profits arising on or after 1 April
2013.
Deconstructing User Participation: Why in the Digital Era Advertising Income Is Different from Other Business Income
Authors: Vėgėlytė E.
Published: December 2023

This article describes various methods of monetizing different types of user-generated data within digital business models and concludes that the user participation is higher in income generation through advertising as opposed to through pay-as-you-go fees. The differentiation of advertising income is also supported by an analysis of the beneficiaries of network effects, by a survey of the financial statements of the biggest digital service companies and by practical examples that challenge arguments brought forward by the OECD and European Union for taxing digital business profits in market jurisdictions.
Transfer Pricing Comparability Adjustments: The Pursuit of “Exact”
Comparables
Authors: Muyaa E.
Published: December 2023

The author sets out comparability factors and other considerations in
undertaking a comparability analysis, followed by a consideration of
comparability adjustments and the challenges encountered with regard thereto,
as well as the possible consequences of a lack of uniform guidance. Finally,
the author considers the alternatives available to ensure that the arm’s length
principle is upheld in a mutually beneficial manner for easy and effective
compliance.
The Era of Exchange of Information and Fiscal Transparency: The Use of Soft Law Instruments and the Enhancement of Good Governance in Tax Matters
Authors: Brodzka A. , Garufi S.
Published: December 2023

This article provides an overview of issues regarding the use of tax havens; discusses the current emphasis on the cooperative nature of jurisdictions; analyses the international standard on transparency and exchange of information; describes the Peer Review Process of the Global Forum; defines the role of soft law instruments in targeting uncooperative jurisdictions; and addresses the issue of good governance in tax matters, including international initiatives aimed at developing the principles of good tax governance.
Tax Cooperation Between the European Union and China
Authors: Xu D. (Diheng)
Published: December 2023

In this article, the author outlines the initiatives that are being taken to increase cooperation between China and the European Union, including the European Union-China Comprehensive Agreement on Investment and China’s Belt and Road Initiative. In particular, the author focusses on tax cooperation as a starting point for furthering cooperation in other areas, an example of which is the Belt and Road Initiative Tax Administration Cooperation Mechanism (BRITACOM).
Federal Court Rejects Commissioner’s Attempt To Use Transactional Net Margin Method
Authors: Butler M. , Pengelly J.
Published: December 2023

In SNF (Australia) Pty Ltd v. Commissioner of Taxation, the Federal Court has held that the assessable income of SNF (Australia) Pty Ltd should not have been increased pursuant to the transfer pricing rules in Div. 13 of the Income Tax Assessment Act 1936. This decision provides a practical example of an Australian court's application of transfer pricing methodologies to determine whether prices charged by related parties were “arm’s length consideration” for Div. 13 purposes.
An Assessment of the Draft Rule Limiting the Deduction of Royalties
Authors: Heidecke B. , Holst R.
Published: December 2023

On 25 January 2017, a draft bill was published of a rule limiting the deduction of royalty payments to foreign related parties. The intention of the draft bill is to disadvantage the use of such IP box regimes that are not in compliance with the OECD’s modified nexus approach. The draft bill provides guidance under which conditions the deduction of royalty payments is limited.
The Challenge of Defending Management Service Fees before the Tax
Authorities
Authors: Bhatnagar V.
Published: December 2023

The author considers the transfer pricing aspects of intercompany
management service fees, and the challenges taxpayers are likely to face in
defending such fees in the course of transfer pricing audits.
Arm’s Length Interest Rate Determined by Reference to Borrower’s Country
Authors: Dugar A. , Bhandari L.
Published: December 2023

This case note explains the Bombay High Court’s decision in Commissioner of Income Tax v. The Great Eastern Shipping Co. Ltd., which held that, where an Indian company advances a loan to a foreign associated enterprise, the arm’s length interest rate is to be ascertained by reference to the relevant rate of interest in the borrower’s country, and not that in India.
New protocol to the 1982 New Zealand-United States tax treaty
Authors: Smith A.M.C.
Published: December 2023

On 1 December 2008, New Zealand and the United States signed a
protocol to the 1982 tax treaty between the two countries. The protocol
completely replaces the articles on dividends, interest, royalties, limitation
on benefits, non-discrimination and exchange of information. This article
discusses these new provisions and the entry into force of the protocol. The
article also considers the effect of the protocol on New Zealand's
international tax policy and on other treaties.
The ATAD’s Interest Limitation Rule – A Step Backwards?
Authors: Lobita J. Carmona
Published: December 2023

This article addresses the shortcomings of the interest limitation rule in the EU Anti-Tax Avoidance Directive (2016/1164).
Implementation of the EU Tax Dispute Resolution Directive (2017/1852) in Greece: Issues Faced and Choices Made
Authors: Sofrona L-E.
Published: December 2023

Greece recently implemented the EU Tax Dispute Resolution Directive (2017/1852) by way of Law 4714/2020. This article outlines the main aspects of the newly adopted legislation, as well as key implementation issues regarding the Directive in Greece.
Darkness Descends on Danish Tax Law: Supreme Court Decision in Swiss Re
Authors: Wittendorff J.
Published: December 2023

On 2 February 2012, the Danish Supreme Court delivered a decision in Swiss Re, a case concerning the statute of limitations for making transfer pricing adjustments. This article presents the facts of the case, the relevant tax provisions and the decisions of the various bodies, and provides comments on the decision of the Supreme Court.
The Taxation of
Income from Services under Tax Treaties: Cleaning Up the Mess – Expanded
Version
Authors: Arnold B.J.
Published: December 2023

This is an expanded version of an
article
published in the February 2011 issue of the Bulletin. In
the article, the author sets out his views on how the confusion surrounding the
provisions regarding income from services in the OECD and UN Models and related
tax treaties might be resolved.
Oil and Gas Operational Structure Based on Joint Operation Agreements Gives Rise to Multiple Permanent Establishments within a Single Country
Authors: Bernales R. , Kosters L.F.
Published: December 2023

On 22 January 2014, the Spanish tax authorities issued a tax ruling regarding the application of the exemption method to avoid double taxation of profits attributable to permanent establishments. The ruling makes it clear that a Spanish resident company may have multiple permanent establishments in a foreign country. This note discusses the ruling issued by the Spanish authorities, as well as the consequences thereof.
Withholding Tax Act 2021: A Split from Historical Trends!
Authors: Pötgens F.P.G. , Geerse P.I.M.
Published: December 2023

The Netherlands is introducing a conditional withholding tax from 1 January 2021 to prevent the country from being used as a “conduit state” for intra-group interest and royalty flows to low-tax jurisdictions and in situations of abuse. The introduction of this tax marks a break from former trends, as one of the features that traditionally characterized the Netherlands tax system was the absence of withholding tax on interest and royalties.
Judicial Review of the State Aid Decisions on Advance Tax Rulings: A Last Resort to Safeguard the Rule of Law
Authors: Allevato G.
Published: December 2023

In this article, the author provides a critical examination of various decisions addressing whether advance tax rulings on intra-group transfer pricing policies granted to multinational enterprises are illegal State aid under articles 107 and 108 of the Treaty on the Functioning of the European Union. Further, the author looks at whether the aid recovery process in these cases could be deemed to be contrary to the EU principles of legal certainty and the protection of legitimate expectations.
India’s Goods and Services Tax: Salient Features and Post-Implementation Issues
Authors: Sebastian J.
Published: December 2023

In this article, the author presents an overview of India’s goods and services tax, which has been in force since 1 July 2017. The author outlines the background and salient features of India’s GST, and discusses the major issues that have arisen during the post-implementation period as well as the interventions of the GST Council to overcome them.
Recent Developments Regarding the Taxation of Pensions under Tax Treaties from a German and a South African Perspective
Authors: Hagemann T. , Hattingh P.J. , Kahlenberg C.
Published: December 2023

This article considers the taxation of cross-border pension payments from the perspective of Germany and South Africa in light of recent case law in Germany, and tax treaty law and relevant domestic law developments in the two countries.
IRS Grants Transition Relief for FATCA but Not Delayed
Effectiveness
Authors: Carman P.
Published: December 2023

A recently issued notice from the IRS provides transitional relief
from certain due diligence and compliance provisions under FATCA. In spite of
this relief, however, foreign financial institutions are still in the position
of needing to move forward to put systems in place as quickly as
possible.
Building a More Inclusive and Effective Treaty Dispute Resolution Mechanism Based on the Belt and Road Initiative: A Constructivism Perspective
Authors: Liao Y. , Tao Z.
Published: December 2023

This article argues that the current treaty dispute resolution mechanism is neither effective nor inclusive. The “Community of Shared Future for Mankind” in the Belt and Road Initiative is then introduced, and its implications for a more inclusive and effective treaty dispute resolution mechanism are explored from a Constructivism perspective.
Taxing Paradise – Tax Reform in Pacific Island Countries
Authors: Cotton M. , Davies M. , Dunn J. , McNeill C.
Published: December 2023

The Pacific Island Countries (PICs) face significant fiscal challenges, which were further compounded by the recent financial crisis. Although a global economic recovery appears to be underway, the budgetary pressures remain, making revenue collection all the more important. The authors discuss the options open to the PICs that would enable them to improve revenue collection.
Taxation of Intra-Community Supplies of Goods
Authors: Amand C.
Published: December 2023

In this article, the author explains how, in relation to
intra-Community supplies of goods, the current leaks in the VAT system at the
internal borders of the European Union can be closed by using the
recapitulative statement as an instrument through which the supplier of the
goods accounts for VAT in the customer’s Member State. In the process, the
author also closes other leaks in the EU VAT system.
Transfer Pricing Litigation: A Comparative Study of Fourteen Countries
Authors: Vollebregt H. , Kühnlein C. , Mitra R. , Perez Delgadillo K. , Portela D. , Ossi G. , James L. , Thomas R. , Vanwelkenhuyzen T. , Purdy E. , Ling Ong A. , Hublot M.-L. , An H. , Wiewiorka P.
Published: December 2023

During the PwC global transfer pricing conference in Budapest in October 2010, PwC practitioners debated with the tax directors of international companies on litigation as a possible way of settling disputes with tax authorities. This article considers the many differences among the countries represented, and notes that some of these differences were indeed unexpected.
The BEPS Project: Planning in Anticipation
Authors: Herrington M. , Lowell C.
Published: December 2023

The authors focus in more detail on some of the specific transfer
pricing-related changes that could flow from the BEPS project and offer their
insights into how multinationals can be positioning themselves in
anticipation.
The European Union’s Ambition to Harmonize Rules to Counter the Abuse of Member States’ Disparate Tax Legislations
Authors: Docclo C.
Published: December 2023

The Council Directive (2016/1164) will affect taxpayers’ transactions within the European Union but also beyond the EU territory. This article describes its rules to counter the abuse of the tax legislations of EU Member States, in light of the political discussions that led to its final provisions.
New Tax Administration Regime in Poland
Authors: Bronżewska K.
Published: December 2023

On 1 March 2017, the new Act on National Fiscal Administration entered into force in Poland, which completely overhauls the tax administration. The author, in this note, provides a summary of the previous regime, as well as the most significant changes stemming from the new law.
Spanish CFC Rules Stray from the EU Anti-Tax Avoidance Directive (2016/1164)
Authors: Cueva González-Cotera Á. de la
Published: December 2023

This article discusses the main aspects of the Spanish CFC rules, which, following their recent amendment in connection with the transposition of the EU Anti-Tax Avoidance Directive, may give rise to problems of compatibility with EU law from two angles: (i) compliance with the ATAD transposition obligations; and (ii) respect for the fundamental freedoms of the European Union.
A Little Light on Transaction Fees under UK VAT Law
Authors: Watson J.G.
Published: December 2023

In this article, the author discusses the judgment of the UK Court of
Appeal on the right to deduct VAT on professional fees incurred in the
framework of the takeover of BAA, which represents one of the numerous clashes
between the principle of neutrality and formalism. The author also speculates
on the outcome of the judicial proceedings had the facts been slightly
different.
Chile Taking Baby Steps: VAT on Digital Services
Authors: Gepp I.
Published: December 2023

In this article, the author addresses the changes made to the Chilean VAT Law to effectively tax digital services from 1 June 2020 onwards, while enhancing the means by virtue of which VAT on e-commerce of goods can be collected.
Is the VAT Exemption for the Management of Special Investment Funds Applicable on a Purchased Investment Management Service (by Using an IT Platform) if the Service Is a Single Supply and Is Used for the Management of Both SIFs and Non-SIFs?
Authors: Boy U. , Jouby N.
Published: December 2023

This article discusses the judgment of the Court of Justice of the European Union in the BlackRock Investment Management case, on the application of the VAT exemption for the management of special investment funds.
VAT Committee – Guidelines 2013-2014
Authors: Annacondia F. , Corput W. van der
Published: December 2023

This overview contains the Guidelines adopted by the VAT Committee on
3 July 2013 and 24/25 February 2014.
Tax Agreement between Austria and Switzerland
Authors: Twardosz B.
Published: December 2023

This note analyses the Austrian-Swiss tax agreement concerning the tax
regularization of future capital investment income and previously undeclared
assets, signed and published on 13 April 2012.
The OECD Inclusive Framework
Authors: Christians A. , Apeldoorn L. van
Published: December 2023

This article considers the various issues and implications raised by the OECD’s Inclusive Framework and how this affects both OECD member countries and non-member states.
Update of Transfer Pricing Regime in Light of BEPS Actions 8-10 and 13
Authors: Quiñones M.T.
Published: December 2023

The author reviews legislative changes to Mexican transfer pricing rules in response to Actions 8-10 and 13 of the OECD’s BEPS initiative.