bluuebunny/crossref_metadata_2025 huggingface dataset:
The China–Germany Income and Capital Tax Treaty (2014) – An Analysis
Authors: Perdelwitz A.
Published: December 2023

In this article, the author considers the significant aspects of the China-Germany Income and Capital Tax Treaty (2014), specifically examining the articles on permanent establishments, business profits, dividends, interest, royalties and the avoidance of double taxation by the residence state.
Too Confident: Section 33 of the Income Tax Act and Its (Mis)trust in
Judicial Precedent
Authors: Muk J.C.Y.
Published: December 2023

An analysis is presented of Comptroller of Income Tax
v. AQQ, in which the Court of Appeal held that a transaction which has a
main purpose of tax avoidance will be regarded as tax avoidance, preferred the
Australian approach in interpreting Singapore’s anti-avoidance provision and
appeared to have lowered the standard of review over the Comptroller. As the
Australian approach is itself inconsistently applied, the author asserts that
the Court might have been overly confident in its reliance on Australian case
law.
Cross-Border VAT Groupings: The Effects of the New Italian Regulation
Authors: Melis G. , Giancola L.
Published: December 2023

Italian Law No. 232/2016 provides for VAT groupings in accordance with article 11 of the VAT Directive (2006/112). In considering a group of companies as a single taxpayer for VAT purposes and by excluding intra-group services from VAT, the reform guarantees the effective neutrality of the VAT system, especially for groups with activities that are wholly or primarily exempted from VAT. As a result, the new provision on VAT grouping has increased the competitiveness of such companies.
Council
Authors: Valério C.
Published: December 2023

This overview highlights the Council’s discussion regarding the harmonization of direct taxes in the European Union.
The New Limitation on the Deduction of Financial Expenses
Authors: Curt P. , Robert E.
Published: December 2023

With retroactive effect to fiscal years ending on or after 31 December 2012, the Finance Law for 2013 has introduced, in addition to existing rules, a general limitation on the tax deduction of finance expenses incurred by companies for corporate income tax purposes, as codified under article 212 bis and 223 bis of the French Tax Code. This note describes the main features of the new provision and how it is expected to interact with existing interest deduction limitation provisions.
On the Apparent Widespread Misapplication of the OECD Transfer Pricing Guidelines
Authors: Collier R.S. , Dykes I.F.
Published: December 2023

In this article, the authors examine the apparent widespread misapplication of the OECD Transfer Pricing Guidelines. Though most evident in relation to the rules on risk introduced by the OECD/G20 Base Erosion and Profit Shifting Project, it is argued that the cause stems from some wider problems with the ALP.
President's Welcome
Authors: Kaka P.F.
Published: December 2023

Meine Damen und Herren, dear IFA Colleagues, flushed with the success of the Mumbai Congress, it is my pleasure to present the 69th Congress of the International Fiscal Association (IFA) to be held in Basel from 30 August to 3 September 2015.
Remunerating Transactions Involving Intangibles – Learnings from a Recent Transfer Pricing Audit Outcome in Nigeria
Authors: Onyebezie N.B.
Published: December 2023

There is an ongoing wave of transfer pricing audits in Nigeria at the moment, with the tax authorities scrutinizing big-ticket related-party transactions, often with a transfer pricing adjustment as the outcome. This article discusses aspects of a recent transfer pricing audit case, with a focus on intangibles, and highlights what taxpayers need to know in preparing a defence, as well as providing viable solutions for when there is divergence of opinions between the taxpayer and the tax administration.
EU Commission Releases Draft Directive on BEPS: A Critical Analysis from a Luxembourg Perspective
Authors: Hoor O.R. , O'Donnell K. , Schmitz-Merle S.
Published: December 2023

On 28 January 2016, the European Commission presented its Anti Tax Avoidance Package, one of the core pillars of which is a Draft EU Anti Tax Avoidance Directive or “Anti-BEPS” Directive. The Draft Directive proposes anti-tax avoidance rules in six specific areas, which are intended to be implemented by each EU Member State. This article provides an overview of the proposed provisions and analyses how they may impact Luxembourg tax law.
JTPF Discussion Paper on Comparables in the European Union
Authors: Dawid R.
Published: December 2023

This article considers the Discussion Paper issued by the Joint Transfer Pricing Forum in February 2016 as a reaction to the Actions 8-10 Final Reports under the OECD BEPS Project. In particular, it will look into the application of the OECD risk framework and various practical aspects of comparables search studies.
Commission
Authors: Morales T.
Published: December 2023

This overview highlights the Commission’s (i) launch of public consultations on energy taxation and a carbon border adjustment mechanism; (ii) proposal for a special VAT identification number for businesses in Northern Ireland; (iii) extension of VAT and customs duties reliefs for imports of medical equipment; and (iv) first implementation report on the EU Anti-Tax Avoidance Directive (2016/1164).
The 2017 Change to Article 3(2) of the OECD Model: Comments on Professor Alexander Rust’s Presentation
Authors: Sasseville J.
Published: December 2023

In this article, the author provides comments on a presentation made by Professor Alexander Rust regarding the change made in 2017 to Article 3(2) of the OECD Model that provides that a domestic law meaning shall not be given to an undefined treaty term whose meaning has been agreed to through the mutual agreement procedure.
Opportunities Arising from Entitlement to Participation Exemption Benefits for the Gain Realized upon Disposal of Preferential Subscription Rights
Authors: Lamotte J. , Budzin M.
Published: December 2023

Luxembourg administrative courts recently rendered three decisions which confirm the application of the participation exemption regime to a gain deriving from the sale of assets which are not per se shares, and clarify the tax treatment of preferential subscription rights. Bearing in mind the significant role of Luxembourg in the financial sector, the authors explain the content of the recent court decisions and consider related opportunities.
Legal Remedies in the Tax System
Authors: Dua A. , Aggarwal V.
Published: December 2023

The article provides an introduction to and describes the administrative phases, courts, appeals, etc. with regard to tax cases.
Complete Distributive Rules and the Single Tax Principle: A Review of Recent Italian Case Law
Authors: Avi-Yonah R. , Mazzoni G.
Published: December 2023

The authors, in this article, examine the application of complete distributive rules as set out in various tax treaties as it relates to the single tax principle by reference to recent Italian case law.
The New France-UK
Tax Treaty of 19 June 2008
Authors: Gibert Bruno
Published: December 2023

In this article, the author discusses the new
France-UK tax treaty, signed on 19 June 2008, which will replace the 1968 tax
treaty. The author outlines the complexities of the negotiation process,
including a 2004 version of the treaty that was signed but did not enter into
force, and provides a detailed analysis of each article, including a comparison
with the existing treaty and the OECD Model.
EU VAT and Financial Services: Which Rules, What Consequences and Which Possible Solutions?
Authors: Amand C.
Published: December 2023

VAT has never been applied on financial services due to, among other reasons, the difficulty of determining the taxable base for each individual transaction. The essential characteristic of EU VAT is that it taxes the consumption in a specific country, irrespective of the country of production. However, exemptions have turned VAT into a tax on production, attributed to the country of production, and an incentive to use multiple channels in order to outsource production to low tax jurisdictions, particularly those outside the European Union. In this article, the author suggests that financial services supplied by regulated organizations to business and to government organizations should be zero rated and business-to-consumer services could be taxable on the gross margin, possibly at a reduced VAT rate.
Transfer Pricing Cases on Intangibles Performed by Manufacturing Industry Based on Tax Court Decisions 2015-2019 in Indonesia
Authors: Tambunan M.R.U.D. , Rosdiana H. , Irianto E.S.,
Published: December 2023

This article aims to discuss transfer pricing disputes regarding the payments made on intangible assets by the Indonesian subsidiaries of MNEs operating as contract manufacturers. The underlying premise for assessing the manufacturing industry relates to its leading role in the Indonesian economy. In reality, most multinational contract manufacturers located in Indonesia perform only a limited function, assume only limited risk and are highly dependent on their principal with regard to business decisions. Payments on intangibles were the most prolific type of cases brought to the tax court in Indonesia during the fiscal years 2015-2019. Disputes typically arose from the technical aspect in a tax assessment concerning the payment made on intangibles to the principal, along with the interpretation of the tax regulation regarding the existence of the transaction and the existence of proof of the transaction. The Indonesian tax authority has created a procedure for auditing payment on intangibles; however, the current tax rule is considered inadequate. To improve the current tax audit, an assessment of the existence of value creation, which is the principal motor of business competitiveness, should be the main objective of the audit. A value creation audit might refer to the significant business function performed in Indonesia as part of an MNE’s global value chain.
Abolition of Spanish
Net Wealth Tax and its Effects
Authors: Colldefors Ana
Published: December 2023

In this note, the author examines the Slovenian tax rules regarding
the provisions for, and the write-off of, business bad debts, considers some of
the relevant issues, and concludes by suggesting that the rules should be
amended so as to make them simpler and more practical.
Don't run after bankers' imaginations : an economist's reflections on
potential regimes for capital income taxation
Authors: Gérard M.
Published: December 2023

In this article, the author uses the economic theory of taxation and a
consideration of some existing tax devices to suggest alternative designs for
the taxation of internationally mobile capital income. The article was
initially motivated by a willingness to share some ideas on the revision of the
Savings Directive, but the current financial and economic crisis has widened
its scope.
Corporate Loss Utilization through Aggressive Tax Planning
Authors: Ryan J.G. , Keates H.A.
Published: December 2023

Global corporate losses have increased significantly in recent years. Where the resulting loss carry-forwards cannot regularly be utilized by taxpayers, it may happen that some of them look for loopholes and develop aggressive tax planning techniques in order to deploy the use of the losses in tax planning. For this Comparative Survey, the authors look into corporate loss utilization and present a description and analysis of the situation in their country. Country report on the United States.
Wayfair Slowly Comes to the Caribbean; but What’s Next?
Authors: Rodulfo C.
Published: December 2023

As the OECD and the rest of the world address the tax challenges of digitalization of the economy, many countries in the Caribbean have not yet updated their tax systems to tackle the problems and opportunities presented by the growth of digital commerce. Carissa Rodulfo explains where things now stand in the Caribbean and suggests a way forward that could benefit many struggling economies in the region.
The Source of Dividends in Hong Kong Tax Law
Authors: Mariani S.
Published: December 2023

In Hong Kong, dividends received from a company which was chargeable to profits tax are exempt under section 26 of the Inland Revenue Ordinance. As such, in the absence of specific legislation that states otherwise, it follows that non-qualifying dividends would be taxable in Hong Kong if they were sourced in Hong Kong. During the recent Annual Meeting of the Hong Kong Inland Revenue Department (IRD) and the Hong Kong Institute of Certified Public Accountants, the IRD was asked to clarify the general source rule for these dividends which are paid out by companies that were not subject to profits tax in Hong Kong. This article will consider the Hong Kong Inland Revenue Department’s position on the treatment of such dividends and offer a critical analysis and response to the same.
Manufacturing and Trading Incentives – Where Do We Stand Now in Asia?
Authors: Lim E. (Eugene) , Guo E. , Tang J.
Published: December 2023

This article is based on a comparative survey presented at the 2009 Baker & McKenzie Annual Asia-Pacific Tax Conference and provides an overview of the available tax incentives.
Circumventing the Business Profits Article for Section 4A Income: A Construction that Clashes with the Convention
Authors: Fork M.
Published: December 2023

This journal article expounds on what should be the true relationship between section 4A income and the business profits article which is contained in the OECD Model. It challenges the commonly held assumptions on the subject, sets out a positive case on why section 4A income is not precluded from falling within the scope of the business profits article, and critically analyses the local case law in this area. In doing so, it takes the opportunity to discuss several general principles concerning tax treaty interpretation. Close references would be made to the OECD Commentary and the relevant provisions in the domestic income tax legislation.
Ahead of Its Time by Being Late? The Correlation between the Atypical Brazilian Transfer Pricing Rules and Amount B of the OECD Pillar One Proposal
Authors: Resende G. Weiss de
Published: December 2023

This article provides an analysis of the usually neglected Amount B of Pillar One in light of similar safe harbour rules that have already been implemented in the legislation of developing countries. The author highlights how the OECD and the Inclusive Framework are expected to seize this opportunity for harmonization and simplification by building on existing experiences in the international arena.
Co-operative Tax Compliance: An Asia-Pacific Perspective
Authors: Araki S.
Published: December 2023

This article examines the co-operative compliance approach and enhancing relationships between tax administration bodies and large corporate taxpayers, adopted to increase tax collections and to efficiently monitor tax compliance. The author addresses theories underlying co-operative compliance, how it has been applied in five Asia-Pacific countries and its prospects for broader application in the Asia-Pacific region.
Transfer Pricing: What the Experts Say It Is
Authors: Rybnik D.
Published: December 2023

The use of “experts” has widely extended to diverse fields in the tax realm, and the usefulness of their reports is determined by the formal and substantive legitimacy they may bring to clarify controversial technical aspects of specific disputes. This article considers the current role to be played by experts with regard to transfer pricing.
Germany’s Implementation of EU Defensive Tax Measures against Non-Cooperative Jurisdictions
Authors: Ditz X. , Seibert C.
Published: December 2023

On 25 November 2019, the Council of the European Union published new guidance on defensive tax measures against non-cooperative jurisdictions listed on the EU tax haven blacklist. The legislative measures include: (i) non-deductibility of costs incurred in a listed jurisdiction, (ii) controlled foreign company rules, (iii) withholding tax measures and (iv) a participation exemption limitation on profit distributions. This article critically evaluates the implementation of these measures in Germany and provides a pan-European comparison.
Structuring an Overseas Investment – What Do We Need To Know?
Authors: Yang H.
Published: December 2023

The Chinese authorities have sought to promote outward investment by Chinese multinationals companies, who have, based on recent reports, taken up the challenge with enthusiasm. The author analyses the tax and regulatory regime which was put in place to promote such outward investment as well as tax planning techniques that could be utilized by Chinese investors.
New Transfer Pricing Documentation Obligations for Large
Companies
Authors: Douvier P.-J. , Daluzeau X.
Published: December 2023

Several provisions – such as new requirements regarding transfer
pricing documentation and accounting information to provide in the course of a
tax audit – were enacted in France at the end of 2013. These measures will
increase the transparency of large companies vis-à-vis the French tax
authorities. They will also trigger additional constraints for large companies
and confirm that transfer pricing will remain a priority in coming tax audits
in France.
The French Supreme Administrative Tax Court
Authors: Martin P. (Philippe)
Published: December 2023

This article describes the organization, mission, composition, functioning and significant decisions of the French Conseil d’Etat (Supreme Administrative Court), together with the importance of the CE for French domestic and international taxation.
Tax Rulings in Poland Following Recent Amendments
Authors: Mróz K. , Schade F.
Published: December 2023

This article provides a general overview of the tax rulings regime in Poland, taking a critical stance on amendments that came into effect in 2016 and 2017.
African Countries without VAT
Authors: Cnossen S.
Published: December 2023

This article provides an overview and evaluation of the sales tax systems in the nine countries on the African continent that do not yet have a VAT. Following a discussion of the characteristics of a best-practice VAT, the author provides an overview of the sales tax systems in these countries and analyses the distortions, valuation problems and definitional issues caused by the systems. The author argues that a broad-based VAT is the preferred choice. Recently, Egypt adopted a VAT, but countries such as Angola, Liberia and Nigeria still have a long way to go.
Effect of the OECD BEPS Initiative on Nigerian Transfer Pricing Regulations
Authors: Abdulrazaq A.O.
Published: December 2023

The author considers the Nigerian transfer pricing regulations and how they will be impacted by the results of the OECD’s BEPS initiative.
Discretionary Trusts and Franking Credits – The Case of Thomas
Authors: Joseph A.
Published: December 2023

This article reviews the recent decision of the Full Federal Court of Australia concerning the streaming of franking credits on franked dividend distributions made by trustees to beneficiaries of a discretionary trust. The article also canvasses the decision of the Supreme Court of Queensland, which addressed the validity of trustee resolutions to facilitate the allocation of the franking credits. The author suggests that it is time for reform of the law relating to trust distributions of franking credits to beneficiaries.
No Substance Requirements for Belgian Notional Interest Deduction
Authors: Huygen W. , Vandenbussche P.
Published: December 2023

This article describes case law of the Antwerp Court of Appeal rendering a judgment that calls for a strict interpretation of the rules laid down in the Belgian tax code relating to the restriction of the notional interest deduction. The position of the tax authorities consisting in adding conditions to a set of clear legal provisions cannot be sustained. Legal restrictions to the notional interest deduction are to be interpreted strictly.
Dutch Cross-Border Rollover Relief Regarding Real Estate, from an EU Law Perspective
Authors: Vermeulen H. , Dortmans J.
Published: December 2023

In this article the authors discuss the implications of the ECJ’s judgment in Commission v. Germany and the exit taxation provisions of the Anti-Tax Avoidance Directive for the Dutch rules for cross-border rollover relief.
President’s Welcome
Authors: Clayson M.
Published: December 2023

In this special issue of the Bulletin for International Taxation, the President of the International Fiscal Association welcomes participants to the 73rd IFA London Congress to take place in London from 8-12 September 2019 and provides a summary of the scientific and social programme of the congress.
Applicability of Transfer Pricing Provisions to the Assignment of
Contracts
Authors: Raj Kumar Jhabakh P.
Published: December 2023

In the recent ruling in Tellabs India Private Ltd v.
The Assistant Commissioner of Income Tax, the Income Tax Appellate
Tribunal, Bangalore held that transfer pricing provisions are applicable to the
assignment of contracts among associated enterprises. This article analyses the
judgment of the Tribunal and its impact on transactions involving associated
enterprises, as well as their role in the negotiation of such
transactions.
Inheritance and Estate Taxes: Tax Treaties, Connecting Factors and Worldwide Liability
Authors: Duran Preciado A.
Published: December 2023

In this article, the author considers how tax treaties deal with the variety of connecting factors used to establish a worldwide liability in relation to inheritance and estate taxes.
Taxing Intra-Company Transfers: The Law and Its Application in Rwanda
Authors: Waris A.
Published: December 2023

In this article, the author considers the taxation of intra-company transfers and discusses the alternatives to transfer pricing regimes, with special reference to their application to developing countries and, in particular, Rwanda.
Competencies, Competence and the Arm’s Length Principle
Authors: Collier R.S. , Dykes I.F.
Published: December 2023

This article is concerned with competencies and competency assets, a form of intangible asset. The discussion deals primarily with the nature of competency assets, and why they are important in the context of the current income allocation rules, despite being barely recognized by the OECD Transfer Pricing Guidelines.
A Road Map for Reaching Global Consensus on How to Tax the Digitalized Economy
Authors: Dorey M.
Published: December 2023

Coordination among members of the Inclusive Framework is essential for swiftly achieving global consensus on dealing with the tax challenges of the digitalized economy. In order to reach such timely consensus, the author proposes a Pillar Two first approach that gives priority to reducing the perception that double non-taxation is occurring, and addresses profit allocation concerns in a secondary manner.
EU Law and Tax Treaties: The Non-EU UCITS Dividends Case
Authors: Nocete Correa F.J. , Pastoriza Vázquez J.S.
Published: December 2023

The authors, in this article, discuss the relationship between EU law and tax treaties, which reflects the ongoing tension between EU efforts at unification and Member State sovereignty. In particular, the article examines the issue in the context of ECJ case law on non-EU UCITS dividends.
Formalistic Approach to the Application of Thin Capitalization Rules to Interest Flowing between Russian Companies of an International Group Abolished
Authors: Volkov M.
Published: December 2023

In September 2020, the Supreme Court held that it is necessary, in applying the thin capitalization rules, to take into account their purpose, which is to counter abuse (LLC Mega Invest (Case А60-29234/2019)). Accordingly, when a taxpayer is not attempting to gain a tax advantage and there is no loss to the Russian budget, the taxpayer cannot be prevented from deducting interest expenses in full. This note contains an analysis of, and the author’s commentary on, this pivotal case.
The Court of Justice of the European Union – Recently Decided and Pending Cases
Authors: Annacondia F.
Published: December 2023

In this overview, the editor provides a list of judgments of the Court of Justice of the European Union (ECJ) and Opinions of the ECJ’s Advocates General delivered in VAT cases in the past 12 months. The overview also contains a list of the remaining cases pending before the ECJ on 31 August 2018, and a list of cases that have been removed from the ECJ’s register in the past year.
Issues Regarding the Territorial Qualification of Income Deriving from the Exploitation of Image Rights in Italy
Authors: Della Carità A. , Palmitessa E.A.
Published: December 2023

Remuneration deriving from the exploitation of image rights constitutes a significant portion of earnings for artistes and sportspersons. For Italian tax purposes, the applicable tax treatment does not appear to be straightforward, above all when the underlying contractual relationship qualifies the remuneration received as miscellaneous income while the place where the image is economically exploited and the countries of residence of the payor and the payee are characterized by cross-border elements that are unrelated to each other.
The New Brazilian Thin Capitalization Rules and How the Other BRICs Approach the Subject
Authors: Dib R.A.A.
Published: December 2023

The purpose of this article is to describe and analyse the new Brazilian thin capitalization rules. Consideration is also given as to how the other BRIC countries (i.e. Russia, India and China) and the OECD approach thin capitalization, so as to set the new Brazilian rules in context.
Option for Taxation of Financial Services – Is It an Option?
Authors: Nathoeni S. , Braakman T.
Published: December 2023

In order to mitigate the consequences of exempting financial services from VAT, the Member States of the European Union have the power to allow financial service providers to opt for taxation. In this article, the authors provide a brief insight into the issue of determining the taxable base for financial services and they give a summary of the option systems currently applicable in six Member States, indicating their limitations, the conditions under which the options apply and the practical effects of the options. Finally, they give an overview of the essential elements of an option system.
What Is Tax on Capital for the Purposes of a Tax Treaty? An Analysis of Two Recent Belgian Supreme Court Decisions on the Belgian Net Asset Tax
Authors: Bammens N. , Debelva F.
Published: December 2023

This article discusses two decisions of the Belgian Supreme Court on the compatibility of the Belgian net asset tax with the Belgium-Luxembourg Income and Capital Tax Treaty (1970) and the Belgium-Netherlands Income and Capital Tax Treaty (2001), which raise questions regarding “tax on capital”, “taxes covered” and treaty interpretation.
Transformation of the Transfer Pricing Landscape
Authors: Coronado L. , Cheung P. , Tse A.
Published: December 2023

On 4 December 2009, the Inland Revenue Department released Departmental Interpretation Practice Note 46, “Transfer Pricing Guidelines on Methodologies and Related Issues”, and revised DIPN 21, “Locality of Profits”. Both Practice Notes provide clarification of the IRD’s views on transfer pricing and its approach in applying the provisions of the Inland Revenue Ordinance and relevant income tax treaties to establish whether related parties are observing the arm's length principle.
In-Depth Analysis of the Concept of Control over Risk
Authors: Arnold F.
Published: December 2023

With the 2017 revision of the OECD Transfer Pricing Guidelines, the OECD employs the “concept of control over risk” as the turning point in determining whether or not an associated party contractually assuming risks is entitled to receive the higher returns associated with such risks. This article provides a historical context for the concept of control over risk and critically evaluates it over risk from a tax policy, general arm’s length as well as international corporate tax framework perspective.
Social Security and Pensions Systems
Authors: Kang G. , Ma M. (Melody)
Published: December 2023

This comparative survey aims to provide readers with an understanding of the social security and/or pensions systems in China, India, Indonesia, Japan, Korea (Rep.), Malaysia, Singapore and Thailand.
VAT Implications of Outsourcing
Authors: Millar R.M. , Poddar S. , Battiau P. , Parolini A. , Heber C.
Published: December 2023

This article, which is based on the authors’ presentations in Seminar A at the International Fiscal Association Congress held in Mumbai, India, in October 2014, examines the VAT issues that arise in the context of outsourcing and compares how different VAT and GST laws respond to these issues. In the context of cross-border outsourcing, the country approaches are measured against the standards set by the OECD in its International VAT/GST Guidelines.
The Prevention and Resolution of Tax Conflicts within the Framework of International Exchange of Information
Authors: Luchena Mozo G.M.
Published: December 2023

The author, in this article, discusses the development of international exchange of information, in particular by the OECD and European Union, as a means of combatting tax evasion and fraud in a globalized economy, as well as existing mechanisms for resolving disputes that arise in applying various rules concerning exchange of information.
New Guidance in South Africa on the Definition of “Associated Enterprises” in Connection with the Transfer Pricing Rules
Authors: Badenhorst M.
Published: December 2023

This article deals with a draft interpretation note entitled Definition of “Associated Enterprise” issued by the South African Revenue Service on 14 October 2022. The draft note provides guidance on the interpretation and application of the definition of “associated enterprise” which is to be included in section 31(1) of the Income Tax Law. The purpose of this inclusion is to bring the legislation in line with international standards and to address a potential anomaly and reduction in the tax base created by the exclusion of “associated enterprises” from section 31. A de facto approach is adopted in regard to the concepts “manage”, “control” and “capital”. The potential consequences of this are briefly dealt with.
Abuse under the Merger Directive
Authors: Petrosovitch K.
Published: December 2023

This article examines the concept of abuse under the Merger Directive,
as well as the measures Member States are entitled to take to address abuse.
The author notes various problems, including the fact that the forms of
reorganization that qualify for tax deferral under the Directive are not
well-defined. Further, the concept of abuse itself under the Merger Directive
and EU law is ambiguous, resulting in diverging national anti-abuse
measures.
The UN-Sponsored Multilateral Fast Track Instrument – Barking up the Wrong Tree?
Authors: Ahmed M.A.
Published: December 2023

When it comes to bilateral tax treaties, there are those countries (primarily in the developed world) that follow the OECD Model, and those (mostly in the developing world, including the Global South) that follow the UN Model. To address this dichotomy between developed and developing countries – bipolarity to some – the United Nations is working on a Multilateral Fast-Track Instrument (MFTI), which would act much like the OECD’s Multilateral Instrument, albeit for a different purpose. Muhammad Ashfaq Ahmed reviews the touted benefits of the MFTI and explains why it is not only irrelevant, but also does not address the most pressing international tax issues facing the developing world.
DAC6 Implementation in Sweden
Authors: Kleist D.
Published: December 2023

This article examines the implementation of DAC6 in Sweden, focussing on topics that are under discussion in connection with the law proposals relating to the introduction of reporting obligations.
Global Executives as Permanent Representatives in Germany – Tax Risks for Foreign Businesses
Authors: Heinz C. , Leidel S.
Published: December 2023

In this note, the authors discuss the potential risk of non-resident enterprises being subject to “limited tax liability” in Germany due to executive bodies being resident in or conducting business in Germany, a recent decision of the German Federal Fiscal Court in this regard and its implications in practice.
Storage of Goods under EU VAT
Authors: Horsthuis M. , Nellen F.
Published: December 2023

The place-of-supply rules of the EU VAT system determine whether or not specific transactions are subject to VAT in the European Union and, if they are, in which Member State the VAT is due. Most categories of services fall under the default rules for B2B and B2C transactions. However, there are various exceptions to the default place-of-supply rules. In this article, the authors discuss the exception for services connected with immovable property and, more precisely, the place where storage services are deemed to be supplied.
“Taxes Covered”: The OECD Model (2010) versus EU Directives
Authors: Tenore M.
Published: December 2023

Inspired by Seminar B at the 2011 International Fiscal Association Annual Congress held in Paris on 12 September 2011, the author, in this article, compares and contrasts the substantive scope of the OECD Model (2010) and the EU Parent-Subsidiary (90/435) and Interest and Royalties (2009/49) Directives.
Group Taxation Regime in Poland
Authors: Kanczew M.
Published: December 2023

This article presents an overview of the Polish tax provisions on group taxation, as well as the practical approach adopted by the tax authorities in regard to issues that have arisen in respect of grouping for tax purposes.
The Shielding Effect of EU/EEA Foundations in Multi-Layer Structures in the Context of Section 15 of the German Foreign Transactions Tax Law
Authors: Moser T. , Hentschel S.
Published: December 2023

This note looks at the potential use of EU/EEA foundations as a shield for earnings of lower-tier intermediary companies and foreign foundations with regard to the German taxation of foreign family foundations, as well as the German CFC rules.
The Court of Cassation as the Supreme Body of the Judiciary in
Belgium
Authors: Ghyselen M. , Peeters B. (Bernard)
Published: December 2023

The authors, in this article, describe the organization and
functioning of the Belgian Court of Cassation (Cour de
cassation/Hof van Cassatie) and its importance for
Belgian tax and treaty law.
Impact of New Transfer Pricing Requirements
Authors: Rasch M. , Wroblewski P.
Published: December 2023

This article provides a general overview of recent transfer pricing developments, accompanied by a contextual overview of implications for taxpayers operating in Luxembourg.
Auditor’s Assurance Report: A New Compliance Measure in Denmark
Authors: Wittendorff J.
Published: December 2023

Denmark has introduced new legal provisions that allow the tax authorities to request that a taxpayer submit an auditor’s assurance report on its transfer pricing documentation. Changes have also been made to the rules on transfer pricing penalties.
Faraway Hills May Not Be Greener; Can Ireland Maintain Its Competitive Advantage With a 15% Minimum Tax?
Authors: Crowley A.
Published: December 2023

With its attractive 12.5% corporate tax rate, Ireland would seem to be most heavily impacted by the European Union’s decision to adopt the Pillar Two 15% global minimum tax. With implementation looming in 2024, questions have arisen about whether Ireland will be able to maintain its competitive advantage, even with the higher tax rate. In this Talking Points, Anna Crowley examines the steps the Irish government has taken to ward off any ill effects of the rate hike, as it seeks to maintain its position as an attractive location for foreign direct investment.
The Court of Justice of the European Union – Recently Decided and Pending Cases
Authors: Annacondia F.
Published: December 2023

In this overview, the editor provides a list of judgments of the Court of Justice of the European Union (ECJ) and Opinions of the ECJ’s Advocates General delivered in VAT cases in the past 12 months. The overview also contains a list of the remaining cases pending before the ECJ on 31 August 2019, and a list of cases that have been removed from the ECJ’s register in the past year.
Brexit and the EU Tax Directives: The Emerging UK Tax Landscape
Authors: Obuoforibo B.R.
Published: December 2023

In this article, the author article examines the post-Brexit application (or otherwise) of the provisions of the main EU direct tax directives within the United Kingdom.
Italian Patent Box Regime: Thinking Outside the Box or Just More Harmful Tax Competition?
Authors: Zucchetti S. , Pallotta A.
Published: December 2023

The authors examine the technical aspects of the new Italian patent box regime introduced in 2015 which provides for a partial exemption of income arising from qualifying intellectual property rights. Topics considered include historical development, current requirements and international aspects of the Italian patent box regime, comparing it to regimes applicable in other countries. This article consists of two parts, the second of which is primarily focused on the valuations techniques relevant to qualifying IP assets and will appear in a future issue of this journal.
VAT and the Cross-Border Digital Economy in Africa: An Issue of Non-Compliance or Design?
Authors: Habaasa A.
Published: December 2023

Collecting VAT on cross-border e-commerce transactions has become a priority for states around the globe, including on the African continent. Following the international (OECD) guidelines, most countries require non-resident businesses to register in the state of consumption and remit the VAT on their B2C e-commerce supplies. While this may work in certain countries where the value of e-commerce is high, it is not the case in most African countries, where there is no real incentive for businesses to register and no real risk of sanctions in case of non-compliance. In this article, the author argues that mandatory registration of foreign businesses is hardly enforceable in developing economies, and that another approach might be needed for these countries.
VAT Concept on Place of Use or Consumption – The Case of Kenya
Authors: Mwaniki M.
Published: December 2023

The determination of the place of use or consumption of services for VAT purposes has been a subject of contention for years in Kenya. A major issue is that, due to a lack of clarity in the Kenyan VAT legislation, taxable persons feel that tax authorities do not distinguish between “performance” and “consumption” when implementing the destination principle. Against this background, the author addresses the need, in general, for Kenya to adopt international best practices in line with the OECD International VAT/GST Guidelines. In particular, this article aims to enhance the discussion on the need for place-of-use or consumption guidelines in Kenya, by highlighting the practices in other jurisdictions as well as the challenges faced by the business community. It is also expected to be a useful guide for the National Treasury and National Assembly as they review the draft Kenyan VAT regulations.
Diverted Profits Tax: A Multinational Nightmare
Authors: Joseph A.
Published: December 2023

Following the example of the United Kingdom, Australia introduced a penal tax to discourage the diversion of profits by multinationals. In the current situation, where there is a growing demand to regulate large companies in certain aspects of their activities, it is no surprise that Australia has decided to impose a very high rate of tax on diverted profits.
Tax Treatment of US
S-Corporations under the Germany–US Tax Treaty
Authors: Resch Richard
Published: December 2023

In this article, the author discusses a recent
decision of the German Federal Tax Court wherein the Court addressed the
applicability of treaty benefits under the 1989 Germany–US tax treaty and
protocol to US S-Corporations and determined that such corporations must be
granted the participation exemption under Art. 10(2)(a) of the treaty. The
author further discusses whether or not the same may still apply following the
entry into force of the 2006 protocol to the treaty.
Using the Capital Allocation Approach to Attribute Capital to a Permanent Establishment
Authors: Schwärzler T.
Published: December 2023

The author considers the capital allocation approach, emphasizing that the attribution of capital is a pivotal step in the process of allocating profits to a permanent establishment. Attributing capital to a permanent establishment is not only a prerequisite for the full implementation of the authorized OECD approach, but could also have an influence on avoiding or minimizing double taxation or less than single taxation.
Common Consolidated Corporate Tax Base and Transfer Pricing
Authors: Manninen P.
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 Finland.
Real Estate Murabaha Structures in
Luxembourg
Authors: Fisch J-L. , Mischo P.
Published: December 2023

Although Luxembourg has long been an attractive destination for
Islamic financing, murabaha structures, which are used to
finance the acquisition of an asset, typically real estate, have not been as
popular in Luxembourg due to uncertainty regarding their tax treatment. The
authors, in this article, outline two new Circulars that partially clarify the
applicable tax treatment and comment on certain VAT and registration duty
issues that still need to be resolved.
Tax Incentives for Research and Development
Authors: Weber D. (Dieter) , Eichenberger S.
Published: December 2023

In this article, the authors examine the Swiss rules aimed at encouraging research and development activities on the Swiss territory.
Tax Cooperation on VAT in the SADC Region
Authors: Hollinrake D.
Published: December 2023

This article seeks to outline the efforts of the Southern African Development Community (SADC) in tax cooperation and in particular cooperation and coordination of the VAT regimes in the Member States. In this article, the author describes how the SADC operates as a consensus-based organization and that in this regard regional cooperation is mandated through voluntary adherence to agreed frameworks, rather than any centrally issued or binding directives. Cooperation in VAT has been taken forward through the SADC VAT Guidelines (and supporting Commentary) that have been developed over a period of five years by tax officials in the Member States working under the direction of the SADC. As such, the Guidelines provide an agreed best-practice framework for cooperation and convergence of the VAT regimes in the Member States.
Restrictions on deferred compensation
Authors: Joseph A.
Published: December 2023

The recent introduction of Sec. 457A to the US Internal Revenue Code
represents a notable development with regard to the tax treatment of executive
pay packages. This new section will operate together with the already existing
Sec. 409A to target remuneration to service providers which is deferred so that
the service providers need not include the remuneration payable in their income
for tax purposes. The new section aims to restrict deferral by imposing
specific and stricter conditions on certain entities.
Parliament
Authors: Alvarado M.
Published: December 2023

This overview highlights the Parliament’s priorities for reforming the policy on harmful tax practices within the European Union.
Corporate Loss Utilization through Aggressive Tax Planning
Authors: Oosterhoff D. , Munniksma M.
Published: December 2023

Global corporate losses have increased significantly in recent years. Where the resulting loss carry-forwards cannot regularly be utilized by taxpayers, it may happen that some of them look for loopholes and develop aggressive tax planning techniques in order to deploy the use of the losses in tax planning. For this Comparative Survey, the authors look into corporate loss utilization and present a description and analysis of the situation in their country. Country report on the Netherlands.
The Emergence and Enforcement of Green Taxes in the European Union –
Part 1
Authors: Mastellone P.
Published: December 2023

In this article, the author examines the emergence of green taxes in
the European Union. Part 1 looks at taxation as an economic tool for protecting
the environment and the development of green taxes under international law.
Part 2, which will be published in European Taxation 12
(2014), outlines the attempts in Europe to regulate “environmental tax law”
within Member States’ legal systems.
Deductibility and Transfer Pricing of Banks’ Liquidity Reserve Expense
Authors: Lim C.
Published: December 2023

The author considers the tax implications of a bank’s liquidity reserve expense and, specifically, the challenges a bank may encounter in devising a global transfer pricing policy and obtaining a deduction for liquidity reserve expense in the countries in which it conducts business.
The Dutch View on the Common Consolidated Corporate Tax Base
Authors: Oosterhoff D. , Wingerter B.
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 the Netherlands.
Administrative Requirements for Claiming Treaty Entitlement: Problems and Solutions
Authors: Janitra Jaya Y.
Published: December 2023

The author, in this article, considers various issues relating to the administrative requirements in respect of claiming treaty entitlement and benefits, and identifies the problems that may arise and suggests solutions to these problems.
Is Indonesia Benefitting from the Multilateral Instrument?
Authors: Pramasanti C. , Tjen C.
Published: December 2023

This article assesses the possible benefits and implications of Indonesia’s participation in the Base Erosion Profit Shifting (BEPS) Action Plan 15 (Multilateral Instrument on Tax Treaties/MLI) and its implications to Indonesia’s current tax treaties network. The authors hold the opinion that Indonesia’s position on the MLI is considered quite extensive when compared to other countries, which may be beneficial in terms of tackling BEPS issues. However, it is necessary to make some changes in domestic regulation to optimize the MLI implementation.
The Italian “Web Tax”: The New Administrative Procedure for Multinational Enterprises to Disclose Hidden Permanent Establishments in Italy
Authors: Zucchetti S. , Tardini A. , Lanfranchi O.
Published: December 2023

This article will first analyse the (improperly defined) Italian “web tax” procedure and will proceed to focus on the current and future legislative framework governing the PE status, followed by an analysis of the criteria and methodologies that may possibly be chosen (including within the web tax procedure) in order to determine the fair profit share to be attributed to the disclosed PE.