bluuebunny/crossref_metadata_2025 huggingface dataset:
Tax Amendments in the Former Netherlands Antilles and Dutch Tax Treaties in Relation to the New Dutch Caribbean
Authors: Doremalen T. van
Published: December 2023

In this article, the author discusses the impact of the constitutional reform of the Kingdom of the Netherlands on tax legislation in the Dutch Caribbean and the applicability of tax treaties concluded by the Netherlands.
Recent Discussions on Inheritance Tax in Asia-Pacific
Authors: Araki S.
Published: December 2023

Over the last few decades, a considerable number of jurisdictions have abolished inheritance tax. On the other hand, reflecting widening economic inequality, there are discussions to revisit the wealth redistribution function of inheritance tax. This article presents an overview of inheritance tax systems and recent discussions on inheritance taxation in Asia-Pacific.
Corporate Loss Utilization through Aggressive Tax Planning
Authors: Nørgaard Laursen 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 Denmark.
Blueprint for a New Common Corporate Tax Base
Authors: Bellingwout J.W.
Published: December 2023

In response to the shortcomings of the corporate tax systems of the Western world, the OECD has initiated its Base Erosion and Profit Shifting initiative. Similarly, actions have been endorsed by the European Commission in its fight against aggressive tax planning. The author, in this article, takes a different approach to the issue by examining alternative concepts of a harmonized tax base with respect to routine profits and centralized taxation of residual profits within the European Union.
Corporate tax implications of Denmark's unilateral termination of its
tax treaties with France and Spain
Authors: Bundgaard J. , Dyppel K.J.
Published: December 2023

Denmark terminated its tax treaties with France and Spain effective 1
January 2009. This means, among other things, that each country will tax the
income in question according to its domestic tax rules, which could result in a
higher effective tax rate or double taxation in some cases. This article
examines the corporate tax consequences of the terminations for Danish
companies with activities in or payments from France or Spain and for French
and Spanish companies with activities in or payments from Denmark.
New Developments in International Administrative Assistance in the Recovery of Taxes
Authors: De Troyer I.
Published: December 2023

This article provides a comprehensive overview of recent EU developments concerning mutual assistance in the recovery of taxes.
Feasibility and Impact of a Common VAT Return in the European Union
Authors: Lejeune I. , De Clercq W. , De Naeyer K.
Published: December 2023

One of the European Commission’s action points that are aimed at reducing administrative burdens on businesses is the introduction of a common VAT return. In that context, the Commission assigned PwC the task of carrying out a study on the design of such a return and to calculate the impact of the introduction of a common VAT return on the compliance costs of businesses as compared to the current compliance costs. In this article, the authors summarize the PwC report.
In for a Penny, in for a Pound: Anti-Tax Avoidance Initiatives and Dispute Resolution
Authors: Heer L.J. de
Published: December 2023

In this article, the author examines the flaws in dispute resolution mechanisms in tax treaties, particularly in light of the recent surge in anti-avoidance measures.
Transfer Pricing in Italy and Singapore: What Regulatory Framework for a Blockchain Scenario?
Authors: Cipollini C.
Published: December 2023

The aim of this article is to assess the Italian and Singapore regulatory framework in the area of transfer pricing with reference to a possible use of the blockchain technology. For this purpose, it conducts a comparative analysis, focused on two fundamental issues in national legislation: the burden of proof and the penalty system. Based on the results of the analysis process, the conclusion is that in both countries some changes in legislation should be considered to ensure legal certainty and properly motivate multinational enterprises and tax administrations towards a blockchain scenario for transfer pricing.
Belgian Innovation Income Deduction – Recent Ruling Practice Experiences and Update on Documentation Requirements
Authors: Tits R. , Wauters S. , Delanoy A.
Published: December 2023

This article sets out the main provisions of the innovation income deduction regime (which replaced the former patent income deduction regime as from July 2016) and provides further clarification on the application of the regime based on the FAQ published by the Belgian tax authorities. In addition, the article discusses recent experiences with the Belgian ruling practice. Finally, an update is given on the documentation requirements recently clarified by the Royal Decree of October 2019.
Extraterritorial Enforcement of Tax Claims
Authors: Bal A.
Published: December 2023

In this article, the author evaluates the possibilities for the cross-border enforcement of tax liabilities at both a national and a supra-national level, as well as addressing the mechanisms for the effective exchange of information.
Draft Rules Proposed by India on Profit Attribution to a Permanent Establishment – An Analysis
Authors: Agrawal M.
Published: December 2023

The Indian government has issued a draft circular inviting suggestions/comments from the public regarding its examination of the existing approach to profit attribution to a permanent establishment, under article 7 of India’s Double Taxation Avoidance Agreements , and regarding the recommended changes to Rule 10 of the Income Tax Rules 1962designed to bring clarity to domestic law regarding the attribution of profits. The draft rules emphasize a formulary approach to the attribution of profits to a permanent establishment. This article explains the rationale provided by the Indian government for this approach, issues arising from the proposed approach and the impact of the proposed approach on multinational enterprises with operations in India.
European and International Tax Cooperation: Legal Basis, Practice, Burden of Proof, Legal Protection and Requirements
Authors: Seer R. , Gabert I.
Published: December 2023

Internationalization has increased the number of tax-relevant cross-border transactions. This is a challenge for national tax regimes and demands efficient international tax cooperation. In this article, the authors consider the legal basis, practice, burden of proof, legal protection and requirements with regard to European and international tax cooperation.
Increasing Role of Advance Pricing Arrangements
Authors: Joseph A.
Published: December 2023

This article considers some recent developments in Australia that have contributed to confusion and increased concern among taxpayers grappling with transfer pricing issues. In the ensuing maze, advance pricing arrangements must undoubtedly be considered as providing certainty.
Transfer Pricing and Sustainability: Need for a “FARME” Approach
Authors: Swain S. , Bilaney S.
Published: December 2023

Function, asset and risk (FAR) analysis is a mainstay of transfer pricing analysis. Through Pillar One, the OECD acknowledges the need for a new taxing right for market [M] jurisdictions (i.e. it aims its trajectory towards FAR[M] analysis). However, in the authors’ view, there is a need for a tectonic reform in transfer pricing to account for the negative externalities (for instance, environmental and climate risk) in transfer pricing analysis in order to support developing economies in achieving sustainability goals. For this purpose, the authors have suggested a thought-provoking concept of FARME (i.e. function, assets, risk, market and externalities) analysis, including how such externalities should be factored into the transfer price.
ASEAN – Towards the Establishment of a Community (Corporate) Business
Profits Tax
Authors: Nugroho A.D.
Published: December 2023

The article analyses the possibility of creating a single corporate
business profits tax regime for the ASEAN Community. It then goes on to propose
an effective tax level and how the ensuing governing legal framework should be
formulated within ASEAN.
Greek Council of State Seminal Decision Regarding the Limitation Period for Tax Matters (Case 1738/2017)
Authors: Kakali N. , Panetsos L.
Published: December 2023

The authors, in this note, discuss a decision of the Greek Council of State regarding the limitation period for tax matters. In particular, the case examined the practice of the Greek Parliament to extend, through statutory amendments, the duration of the limitation period for tax matters, enabling the Greek tax authorities to impose taxes in respect of fiscal years with limitation periods that would otherwise have lapsed.
A Hard Step for Soft-Moc
Authors: Wilkie S. , McCart J.
Published: December 2023

The authors consider the recent Canadian Federal Court decision in the
Soft-Moc case, the latest in a short string of cases in
which taxpayers have unsuccessfully challenged the authority of the Canadian
tax authorities to obtain any “foreign based information or
document”.
Parliament
Authors: Morales T.
Published: December 2023

This overview highlights the Parliament’s consent to the European Commission’s proposal to extend the exchange of information to digital platforms (DAC7).
Valuation of Intangibles under Income-Based Methods – Part I
Authors: Wittendorff J.
Published: December 2023

This article examines the application of income-based methods to
determine the arm’s length price of the transfer of an intangible, and
discusses alternative non-arm’s length taxation approaches relating to
intangibles. The domestic transfer pricing regimes of the United States,
Germany and Denmark form the basis for the discussion of the use of
income-based methods.
Brazil’s Experience with Unilaterally Taxing the Tech Industry versus International Digital Taxation
Authors: Almeida A.
Published: December 2023

This article discusses Brazil’s approach to taxing the tech industry and how its transfer pricing and international tax policies on the taxation of business profits provide different perspectives on digital service taxation.
Council
Authors: Xygka A.
Published: December 2023

This overview highlights the Council’s (i) decision to discuss DAC8 in a forthcoming meeting, (ii) formal adoption of DAC8 and (iii) addition of three countries into the EU list of non-cooperative jurisdictions for tax purposes.
The Arm's Length Principle and Equity Dispositions: The Case of Thick Capitalization – Part 2
Authors: Bullen A. , Goller M.
Published: December 2023

The arm's length principle has existed for more than 100 years, and a large number of equity dispositions have been undertaken for even longer. Still, neither the OECD nor the Norwegian legislator has ever suggested that the arm's length principle can be applied to equity dispositions. Is this a coincidence or are there valid reasons for not applying the arm's length principle to equity dispositions? In this article, the authors examine this issue from the perspective of the arm's length provision contained in the OECD Model and Norwegian domestic law, aimed at the particular case of thick (equity) capitalization. Part 1 of this article discussed the applicability of the Norwegian arm’s length provision to equity contributions. The issues in this part of the article are whether the tax treaty provisions based on article 9 of the OECD Model apply to equity contributions and whether it is commercially irrational for a parent company to finance a subsidiary with equity rather than debt.
Samueli case construes securities lending rules
Authors: Blum M.S. , Garlock D.C.
Published: December 2023

On 16 March 2009, the United States Tax Court handed down what appears
to be the first modern case on the US tax issues of securities lending, Samueli
v. Commissioner. The most significant holding of the case is that a securities
lending transaction does not qualify for non-recognition treatment under Sec.
1058 unless it gives the securities lender the right to demand return of the
securities essentially at any time during the term of the securities loan.
Although, at its core, the case is another in a long line of cases denying a
taxpayer a tax benefit on the ground that the substance of the taxpayer's
transaction was not what it purported to be in form, the case is of particular
interest because it raises (albeit without discussion) some fundamental issues
regarding securities lending.
High Court Finds Mariner Has Permanent Place of Abode in New Zealand
Authors: Holmes K.J.
Published: December 2023

This note summarizes the New Zealand High Court decision in Commissioner of Inland Revenue v. Van Uden, which found that a master mariner who was at sea for approximately eight months each year had a permanent place of abode in New Zealand. He was therefore a New Zealand tax resident, who was required to pay tax in New Zealand on his foreign sourced employment income and interests in foreign investment funds, including his employer’s contributions made on his behalf to its employee superannuation fund.
A Better Mouse Trap: IRS Finalizes Regulations Treating Disregarded Entities as Persons for Purposes of Conduit Financing Regulations
Authors: Carman P.
Published: December 2023

To avoid potential structuring to circumvent the US conduit financing rules, on 9 December 2011, the US Internal Revenue Service finalized regulations that treat disregarded entities as persons for purposes of the US conduit financing regulations. This means that all business entities within a financing structure will need to be tested under the conduit financing regulations if a portion of the financing structure relies upon the US treaty network or US domestic exceptions to obtain a reduction of withholding on payments of interest.
New Transfer Pricing Guidelines on Intra-Group Financing Activities
Authors: Schaffner J. , Balliet S.
Published: December 2023

The authors, in this note, describe the new circular on the tax treatment of companies carrying out intra-group financing activities, which was released by the Luxembourg tax authorities on 27 December 2016 and is effective 1 January 2017.
Brexit: Deal or No Deal? Regulatory and Tax Implications for the Banking and Financial Services Industry – Part II
Authors: Salvadori di Wiesenhoff V.
Published: December 2023

This is the second piece of a two-part article dealing with certain regulatory and tax implications of Brexit (with or without a deal) for the banking and financial services industry. In the first part, the author considered the consequences of the loss of passporting rights in the event of a no-deal Brexit and examined the transitional provisions in both the European Union-United Kingdom Withdrawal Agreement and the emergency Brexit Decree enacted by the Italian government. In this second part, the author more specifically addresses the Italian tax consequences of Brexit for different banking and financial transactions.
Revisiting Tax Considerations Regarding Credit Default Swaps
Authors: Munro A.B.
Published: December 2023

This article provides an update on current tax thinking and practice regarding credit default swaps, focusing on the effects of changes in the market since the Internal Revenue Service solicited further information about credit default swaps in Notice 2004-52. Changes in the state of the economy may influence the characterization of credit default swaps for federal income tax purposes. This article explores both the revised characterization issue and some of the practical tax complexities.
Border
Adjustments for Carbon Taxes and the Cost of CO2 Emissions Permits:
Politics, Economics, Administration and International Trade Rules
Authors: McLure C.E.
Published: December 2023

The author, in this article, considers the political, economic,
administrative and international trade law implications of border adjustments
for carbon taxes and the cost of CO2 emissions permits in the light
of the Kyoto Protocol, the General Agreement on Tariffs and Trade and other
agreements adopted by the international community.
BEFIT: A Blast From the Past or a Modernized Approach to Tax Simplification?
Authors: Xygka A.
Published: December 2023

In this note, the author discusses the Draft “Business in Europe: Framework for Income Taxation (BEFIT)” proposal and its mechanics. Apart from providing an overview of how the draft Directive is expected to operate, attention is given to the regime applicable to cross-border tax loss relief and the differences and potential similarities between BEFIT and prior similar attempts of the European Commission – namely the Common (Consolidated) Corporate Tax Base proposals.
The Paradise Papers – A Reminder of the Legal and Professional Constraints in Advising on Offshore Tax Matters
Authors: Nguyen H.K.J.
Published: December 2023

After the revelations in the Paradise Papers at the end of 2017 many people started to ponder the legal and professional requirements that are imposed on tax advisers and the consequences for those advisers in breach of them. This article addresses these issues in the Australian context, and examines the main concerns faced by Australian tax professionals when providing advice and assistance to clients that engage in offshore activities. The author concludes that offshore activities are a high-risk area for advisors and that, when tax advice is given, it should be within the letter and spirit of the law, after taking account of the advisors’ legal and professional obligations and ethical considerations.
A Paradigm Shift of Residence Rules
Authors: Sharma S. (Shailendra) , Cardozo J.
Published: December 2023

The proposed Direct Taxes Code in India includes changes to the tax residence rules. The authors analyse the proposed changes and the potential impact on taxpayers.
The Business Trust Regime
Authors: Ramachandra S.
Published: December 2023

In this article, the author describes the tax and regulatory aspects of the business trust regime in Singapore, the first Asian country to introduce such a regime.
Value Added Tax and Gender Disparities in the Caribbean
Authors: Rodulfo C.
Published: December 2023

Using a critical tax policy framework, in this article the author probes into the conventional perceptions of taxation fairness, efficiency and equality by examining the extent to which social justice and human rights considerations are reflected within tax policy discourse in the Caribbean Community (CARICOM). By highlighting the regressive nature of Caribbean tax systems exhibited within their use of VAT and the content of their policies, the possible implications of gender bias and disparities produced are discussed. Thereafter, recommendations on how to address gender tax disparities in the region are proposed and reasons are given as to why there is a need for further research.
Relocation of a Company’s Business to Switzerland
Authors: Koch, H. , Keller N. , Schmid P.
Published: December 2023

In this contribution, the authors examine the various direct and indirect tax implications for a company considering relocating either itself or its operations to Switzerland.
Tax Lotteries and the Challenge To Improve VAT Compliance from Bottom to Top
Authors: Mattes L.
Published: December 2023

In this article, the author analyses the use of receipt-based tax lotteries as a technique to increase VAT compliance by incentivizing consumers to request receipts, and by fostering a change in consumers’ attitudes towards, specifically, a more tax-compliant society. Past and recent experiences with these schemes in EU Member States and other countries are accordingly reviewed, highlighting both their successes and any obstacles.
Applying the OECD Principal Purpose Test in Accordance with EU Law: An Analysis of the Scope, Burden of Proof and Effects
Authors: Valério C.
Published: December 2023

This article analyses whether or not the OECD Principal Purpose Test (PPT) lacks compatibility with EU law and, if so, whether it would be possible for Member States to interpret and apply the PPT in accordance with EU law. The author concludes affirmatively, considering the similarities in scope between the PPT and the EU abuse of law framework. The author notes, however, differences regarding the burden of proof and legal effects, and proposes applying the standard of abuse in relations with third states.
Post-acquisition integration - what you need to do? Malaysia
Authors: Wong A. (Adeline) , Yew C.M. , Tze-Shiang H.
Published: December 2023

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

From 1 January 2010, new rules apply for the purpose of determining
whether or not services are subject to VAT in one of the EU Member States and,
if they are, in which Member State the VAT liability arises; in other words,
new rules will determine where services are deemed to be supplied for the
purposes of the VAT system of the European Union. This article highlights the
main issues that, based on a technical analysis and on practical examples,
require further guidance and clarification at an EU level to avoid risks such
as double taxation and non-taxation.
Italy Innovates Tax Consolidation Regime in Line with ECJ Case Law Developments
Authors: Serbini S.
Published: December 2023

This contribution describes article 6 of Legislative Decree No. 147 of 14 September 2015, which widens the scope of tax consolidation opportunities for non-resident entities.
The Isolating Approach in Luxembourg: A Technical Guide
Authors: Hoor O.R.
Published: December 2023

The categorization of Luxembourg-source income realized by non-resident individuals and companies is the starting point of the isolating approach, which enables to disregard certain aspects of such income to ensure Luxembourg taxation. What lies behind this concept, however, remains obscure to many. This article purports to be the first technical guide for the application of the isolating approach in Luxembourg.
Issues of Interpretation Regarding Inheritance and Gift Tax in an International Context
Authors: Saccardo N.
Published: December 2023

In this article, the author examines issues that are relevant to the levying of inheritance and gift tax in Italy, particularly the operation of exemptions in an international context and the territorial scope of gift tax.
The New Participation Exemption Regime
Authors: Ferreira T.
Published: December 2023

The author, in this note, reviews the provisions in the Budget Law for 2011 in regard to dividend taxation, which became effective 1 January 2011.
A Practical Guide to the Four-Tiered Documentation Approach and Contemporaneous Documentation Requirements in Japan for Foreign Multinationals
Authors: Hagelin J.
Published: December 2023

As a part of the 2016 tax reform in Japan, the Special Taxation Measures Law (STML) was revised based on the recommendations of the OECD Base Erosion and Profit Shifting (BEPS) Project, and a four-tiered documentation approach was introduced, together with the concept of contemporaneous documentation. Although the rules have been in force for some time, a few of the items have their first submission deadlines in the fiscal year that started or is starting on and after 1 April 2018. The purpose of this article is to broadly describe the four-tiered documentation requirements, clarify the differences between some of the Japanese and the OECD-based requirements, as well as provide practical guidance on the rules to consider for foreign corporations in Japan covered by the documentation submission requirements in articles 66-4-4 and 66-4-5 of the STML or subject to contemporaneous documentation as set out in article 66-4(6) of the STML.
The Spanish General Anti-Abuse Rule
Authors: Palao Taboada C.
Published: December 2023

The author, in this article, considers the evolution, together with the implications, of the Spanish general anti-abuse rule since it first introduction in 1963, with especial reference to the current version of 2004, as amended in 2015.
Cross-Border Leasing
Authors: Tan A. , Tan J. , Wan E.
Published: December 2023

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

This overview highlights the Council’s adoption of new reporting obligations for digital platforms and other amendments to the exchange of information (DAC7).
The State of Play of Tax Avoidance – The Decision in Alesco and the Commissioner’s Interpretation Statement
Authors: Maples A. , Sawyer A.
Published: December 2023

In March 2013, the New Zealand Court of Appeal delivered its unanimous decision in the appeal by Alesco New Zealand Ltd v. Commissioner of Inland Revenue (Alesco), finding that the arrangement was tax avoidance. On 13 June 2013, the Commissioner of Inland Revenue (Commissioner) issued an interpretation statement on the application of the New Zealand general anti-avoidance rule (GAAR). This document relies heavily on the much criticized Parliamentary contemplation test. This article reviews the key findings from the Alesco decision before critically examining the approach that the Commissioner intends to take with respect to invoking the GAAR as outlined in the interpretation statement.
What’s in a Name? Prepayments, Deposits, Vouchers and Options
Authors: Krever R.
Published: December 2023

The VAT treatment of prepayments or deposits for hotel rooms or airline tickets where the customer does not use the service has generated considerable debate and litigation. One view expressed is that the supplier is making the service (room or flight) available so VAT is payable whether or not the customer comes. A second view is that the supply only happens when the service is provided so no VAT is payable if the customer does not arrive and the supplier enjoys a tax-free windfall of the VAT-inclusive price. Both views fail to take into account the commercial reality of what the customer is actually paying for – an option to use the service if the customer chooses to show up and take the room or flight, or walk away and not use the service without any penalty.
Final Guidance on Place of Effective Management
Authors: Patel V.T. , Visharia K.P.
Published: December 2023

The Indian economy has been growing at a relatively fast pace over the last decade and still has the potential to grow. This results in a market that represents an enormous opportunity for global businesses that have responded by swiftly setting up operations in the country, in all sectors of the economy. Local businesses, too, have grown and have begun to aggressively expand their footprint across the world.
Anti-Abuse Measures in Tax Treaties Following the OECD Multilateral Instrument – Part 2
Authors: Bergedahl C.
Published: December 2023

The author, in Part 2 of this article, concludes his examination of the effects of the inclusion of anti-abuse measures in tax treaties following the implementation of the OECD Multilateral Instrument, together with the implications of this for the OECD Base Erosion and Profit Shifting initiative.
Brazil, the OECD and Transfer Pricing Reform: The Plot Thickens
Authors: Sousa R.B.
Published: December 2023

Brazil’s road to OECD membership has been a long one, and has taken many twists and turns. As that journey finally seems to be reaching a successful finish, Rafael Barbosa de Sousa examines the history of Brazil’s efforts to join the OECD and explains how it has, just maybe, managed to achieve this long-sought-after goal.
Switzerland in a Post-BEPS World
Authors: Danon R. , Schelling C.
Published: December 2023

The authors, in this contribution, consider the implications of the OECD Base Erosion and Profit Shifting project, on Swiss corporate tax policy. While they generally support the BEPS project, the authors believe that its implementation should also take national tax policies differences into account.
Is Tax Avoidance the Same Thing under the OECD Base Erosion and Profit Shifting Action Plan, National Tax Law and EU Law?
Authors: Vanistendael F.
Published: December 2023

In this article, the author examines the question of whether tax avoidance as considered by the OECD in its Base Erosion and Profit Shifting Action Plan equates to tax avoidance as defined under national and/or EU law.
The (In)Compatibility of Polish CFC Rules with the Constitution Pre and Post-Implementation of the EU Anti-Tax Avoidance Directive (2016/1164)
Authors: Kuźniacki B.
Published: December 2023

This article identifies and examines selected aspects of the Polish CFC rules, both before and following their amendment in accordance with the EU Anti-Tax Avoidance Directive (2016/1164), with the aim of determining their constitutionality. The article concludes that various elements of the rules are unconstitutional, in particular following implementation of the ATAD.
Draft Decree on Transfer Pricing and Direct Tax Administration of Related-Party Transactions
Authors: Nguyen P.T. , Du B.N.
Published: December 2023

Vietnam’s Ministry of Finance released a Draft Decree on tax administration of enterprises with related-party transactions which covers transfer pricing rules and some other aspects of direct taxation. The authors analyse key aspects of the Draft Decree and discuss the appropriateness and possible impacts of the proposed changes on Vietnam-based business operations in light of the OECD BEPS Project, existing transfer pricing rules, practical enforcement and expected developments in Vietnam.
Action 14 of the BEPS Project: Taking the Pulse of Tax Certainty and Determining the Effectiveness of the Peer Review Process Five Years On
Authors: Markham M.
Published: December 2023

This article considers Action 14 of the OECD/G20 Base Erosion and Profit Shifting Project (the “BEPS Project”) regarding the minimum standards for tax treaty dispute resolution procedures in realizing taxpayer certainty. It also evaluates the effectiveness of the OECD’s concurrent and related peer review process.
Tax Accounting in Germany – An Outline
Authors: Vockert Sven
Published: December 2023

In this note, the author surveys the background to the German tax
accounting rules and considers the important recent developments in this
area.
Need to Revisit and Amend OECD Guidelines on Marketing Intangibles
Authors: Mitra R.K.
Published: December 2023

While the OECD is currently giving final shape and form to Pillars One and Two of BEPS Action 1, there remains scope for revisiting and amending some of its guidelines on transfer pricing relating to the issue of marketing intangibles, which has triggered widespread litigation around the world.
Treatment of Business Synergy for Transfer Pricing Purposes: Critical Analysis of Sections 367(d), 482 and 936 of the Internal Revenue Code and Government Proposals
Authors: Freitas de Moraes e Castro L.
Published: December 2023

This article addresses the legal issue arising in the United States when the Internal Revenue Service and taxpayers face cross-border transfers of intangibles in outbound transactions (i.e. situations where the acquirer is a foreign entity), specifically where synergy is the intangible to be valued and taxed under current US transfer pricing rules.
The Signalling Function of Article 29(9) of the OECD Model – The “Principal Purpose Test”
Authors: Lang M.
Published: December 2023

Article 29(9) of the OECD Model sets out the principal purpose test (PPT) according to the findings of the OECD/G20 Base Erosion and Profit Shifting Project. The PPT does not represent a legal basis for denying treaty benefits but merely emphasizes the necessity for purposive interpretation.
How Will International Philanthropy Be Freed from Landlocked Tax
Barriers?
Authors: Koele I.A.
Published: December 2023

This article examines the tax discrimination encountered by
philanthropic organizations and donors in regard to international philanthropy
and the developments in this regard within the European Union. The author
concludes that in order to eliminate tax barriers to cross-border philanthropic
flows responsibly and to protect the sector as a whole, it is vital to
implement effective control over cross-border philanthropy.
Repurposing Pillar One into an Incremental Global Tax for Sustainability: A Collective Response to a Global Crisis
Authors: Chatel S. , Li J. (Jinyan)
Published: December 2023

This article proposes to repurpose the OECD/IF Pillar One Blueprint from a taxing rights reallocation mechanism into an incremental global tax for sustainability. With a common goal and DST-like feature for simplification, the proposal aims to ease the negotiation of essential and drastic simplifications required to deliver a workable solution.
IRS Designates LIFFE a Qualified Board or Exchange
Authors: Carman P.
Published: December 2023

The US Internal Revenue Service determined that the London International Financial Futures and Options Exchange is a qualified board or exchange for the purposes of Sec. 1256(g)(7)(C) of the Internal Revenue Code of 1986. For taxpayers not subject to the US tax system, the most significant aspect of the designation of LIFFE as a qualified board or exchange may be the extension of the IRS subpoena powers to LIFFE transactions. For taxpayers subject to the US tax system, the designation may result in a change in the timing of recognition of income and loss from contracts traded on LIFFE.
Big Brother Is Watching Your Annual Transfer Pricing Report
Authors: Rybnik D.
Published: December 2023

Taxpayers in Argentina will have to submit their transfer pricing
reports electronically to the tax authorities. The author considers the steps
required under the new procedures and addresses potential pitfalls for unwary
taxpayers.
UAE VAT: A Royale with Cheese
Authors: Doremalen T. van , Kolkman W.
Published: December 2023

In this article, the authors draw parallels between the VAT systems of the European Union and that of the United Arab Emirates and, specifically, with regard to the most recent UAE public clarifications (on bank interest, dividends, donations and sponsorships). The similarities noted by the authors should provide additional insight into the application of UAE VAT with respect to the aforementioned topics. Furthermore, in the absence of (extensive) guidance on a myriad of other topics and with no UAE case law as reference, EU case law has the potential to provide UAE taxable persons with some much needed guidance.
The Artistes and Sportsmen’s Article (Article 17 of the OECD Model): Has the Time Come To Stop Counting Stars in the Sky?
Authors: Juan y Ledesma Á. de
Published: December 2023

In this note, the author examines the application of article 17 of the OECD Model in the context of recent cases wherein the Supreme Court held that payments to companies resident in the Netherlands for image rights of artistes and sportsmen are taxable in Spain notwithstanding that the relevant tax treaty lacked the equivalent of paragraph 2 of article 17 of the OECD Model.
The OECD/G20 Base Erosion and Profit Shifting Initiative and Developing Countries
Authors: Collier R. , Riedel N.
Published: December 2023

This article considers the implications of the OECD/G20 Base Erosion and Profit Shifting (BEPS) initiative by reference to the priorities of developing countries. It also suggests ways in which the Project could be made a better fit for the needs of such countries.
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 2020, and a list of cases that have been removed from the ECJ’s register in the past year.
Parliament
Authors: Xygka A.
Published: December 2023

This overview highlights the European Parliament’s (i) publication of the background document on FASTER, (ii) ECON Committee opinion on the EU draft general budget for 2024 and (iii) adoption of a resolution on DAC8.
New Rules Seek to Make Group Contribution Regime EU Law Compliant
Authors: Edvinsson D.
Published: December 2023

In this note, the author describes the new rules on “group deductions”, the purpose of which is to make the Swedish group contribution regime compliant with the Treaty on the Functioning of the European Union. The author then comments on the rules from an EU law perspective.
The MLI Enters into Force for Canada on 1 December 2019
Authors: Doobay S
Published: December 2023

On 1 December 2019, the MLI enters into force in Canada and will apply to Canada’s tax treaties that are covered by the MLI as early as 1 January 2020. Practitioners whose planning involves Canada should revisit their structures now that the MLI has been ratified in Canada. Any Canadian tax treaty notified as a Covered Tax Agreement will now, in effect, have a limitation of benefits clause, which means that structuring through jurisdictions with little substance will have to be revisited. There is still no guidance for funds utilizing an intermediary jurisdiction on whether the intermediary jurisdiction will be scrutinized and subject to the treaty abuse provisions of the MLI. Furthermore, through the MLI, Canada’s covered tax agreements now contain “look-back” requirements prior to the granting of a favourable dividend rate or capital gain treatment.
Controlled Foreign Company Regimes in Brazil and Mexico: A Comparative Analysis
Authors: Antonio A.M.
Published: December 2023

This article compares the history and characteristics of controlled foreign company regimes in Brazil and Mexico, specifically examining the compatibility of these regimes with tax treaties.
Defining Collective Investment Vehicles for Tax Purposes in Developing Countries: Focus on Kenya, Mauritius, Morocco and South Africa
Authors: Waris A. , Atim J.A.
Published: December 2023

Investment through collective investment vehicles (CIVs) is a global trend. The domestic laws of developed countries tend to consider only domestic issues relating to CIVs. Developing countries often have no such laws. This article analyses the definition of CIVs in four developing countries: Kenya, Mauritius, Morocco and South Africa.
Cognitive Biases in Functional Analysis Interviews – Part 1: Introduction and Biases Affecting Selection of the Persons to Be Interviewed
Authors: Pansé A.
Published: December 2023

Functional analysis is a vital component of the transfer pricing analysis and functional analysis interviews are a popular way to perform it. However, functional analysis interviews often suffer from unintentional or inadvertent blind spots on the side of the participants to the interviews, known as “cognitive biases”. This is the first of a series of articles that describe some of the most commonly observed cognitive biases, their effects, and possible ways to avoid the impact of these biases.
South African VAT and Non-Resident Businesses
Authors: Botes M.
Published: December 2023

The South African VAT Act does not contain specific place-of-supply rules, which often leads to uncertainty and disputes as to the question of whether non-resident businesses are liable for payment of VAT in South Africa. However, the absence of specific place-of-supply rules does not mean that there are no special arrangements for cross-border transactions. In this article, the author discusses the taxation of international transactions and the obligation for non-resident businesses to register.
Parliament
Authors: Morales T.
Published: December 2023

This overview highlights the Parliament’s demand to reach an agreement on the own resources system in order to approve the EU Budget.
Interest Deductibility and BEPS Action 4
Authors: Joseph A.
Published: December 2023

This article examines recommendations made by the Australian Board of Taxation to address deficiencies in the country’s debt equity rules, which facilitate excessive interest deductions by multinational corporations. In the context of legislation currently before the Australian Parliament, the author discusses how Australia is proceeding to confront the issue irrespective of the OECD’s recommendations on BEPS Action 4.
Performance Guarantee: How to Avoid Pitfalls and Overcome Hindrances in a Transfer Pricing Analysis
Authors: Iervolino R. , Picariello S.
Published: December 2023

Performance guarantees are a common form of support used in commercial transactions and their use within multinational enterprises has become increasingly frequent in recent years. This article assesses whether (and to what extent) the methods described in the OECD Transfer Pricing Guidelines in relation to financial guarantees can be used by analogy for the determination of the commission fee related to the provision of a performance guarantee. The authors examine the technical and operational aspects that should be carefully assessed when applying the different methods reported by the OECD to determine transfer prices in line with what third parties would have agreed upon in comparable circumstances and, therefore, with the arm’s length principle.
Crowdfunding: A Tangled Web
Authors: Joseph A.
Published: December 2023

The author considers the current state of affairs for crowdfunding in
Australia, especially in light of a recent Discussion Paper issued by the
Corporations and Markets Advisory Committee.
Practical Protection of the Fundamental Rights of Taxpayers
Authors: Desax R.
Published: December 2023

In this article, the author examines selected practical aspects of the protection of the fundamental rights of taxpayers in Switzerland, together with the enforcement of these rights as well as obstacles that frequently arise in practice.
The Concept of “Beneficial Ownership” in China’s Tax Treaties – The Current State of Play
Authors: Qiu D.
Published: December 2023

This article considers the “problems” that have arisen regarding the practical implementation of China’s rules on the concept of “beneficial ownership” (Circular 601 [2009]). In this context, relevant administrative rulings and the recently issued “clarification” by the State Administration of Taxation in Bulletin 30 [2012] are specifically examined.
Tax Treaties and Abuse: The Effectiveness of the Principal Purpose Test and Some of Its Shortcomings
Authors: Hurk H.T.P.M. van den
Published: December 2023

In this article, Hans van den Hurk sets out his views on the abuse of tax treaties and the effectiveness of the provisions contained in article 29(9) of the OECD Model regarding the principal purpose test (PPT), together with a consideration of some of the drawbacks of the PPT.
Is a Distributor a Trader or a Service Provider for Sales Tax Purposes: An Unnecessary Dilemma
Authors: Memon N.
Published: December 2023

The sales tax jurisdiction in Pakistan is split between the federal government and the provinces – the federal government taxes the sale of goods, while the provinces impose sales tax on the provision of services. A recent judgment of the Sindh High Court overturned the general definition of services for sales tax purposes, which has resulted in chaos – the redoing of accounting for years-old transactions and the unleashing of litigation between two tiers of government entangling various taxpayers. This paper aims to critically analyse the court decision in the context of relevant literature and legislation.
Advance Pricing Agreements in China
Authors: Li N.
Published: December 2023

The author, in this article, describes the legal framework and current status of concluding advance pricing agreements (APAs) in China and considers possible development with regard to Chinese APAs.
VAT Registration Thresholds in Europe
Authors: Annacondia F.
Published: December 2023

As is traditional in the sixth issue of each year, in this issue of the International VAT Monitor an overview is presented of the VAT registration thresholds in most European (both EU and non-EU) countries, applicable in October 2022 and supplemented with announced amendments entering into force on 1 January 2023.
The New Indian Statutory Definition of “Liable to Tax”: Interaction with India’s Tax Treaties
Authors: Goradia S.
Published: December 2023

This article considers the new definition of the term “liable to tax” introduced into Indian domestic tax law. The author discusses the historical background as to how Indian courts have viewed the term’s scope, and whether the new definition can be imported into India’s tax treaties to determine tax residence.
Court of Justice
Authors: Valério C.
Published: December 2023

This overview highlights the Court’s decision on legislation imposing immediate corporate income tax on capital gains derived from cross-border transfers of assets (Gallaher (Case C-707/20)).
Countering BEPS through Transfer Pricing Documentation
Authors: Valente P.
Published: December 2023

In this note, the author provides introductory comments to the opinion
statement of the CFE Fiscal Committee, which follows, on the OECD Discussion
Draft on Transfer Pricing Documentation and Country-by Country Reporting issued
on 30 January 2014.
Commission
Authors: Morales T.
Published: December 2023

This overview highlights the Commission’s (i) launch of a roadmap and a public consultation to fight the use of shell entities for tax purposes (ATAD III) and a roadmap to tackle debt-equity bias in corporate taxation (DEBRA), (ii) request to Bulgaria to abolish the exemption for undertaxed subsidiaries, to Germany to communicate all measures implementing ATAD and ATAD II and to Sweden to amend its interest deductibility rules for EU/EEA States, (iii) closure of infringement procedures against some Member States, (iv) approvals of the Danish tax deferral schemes aimed at supporting enterprises and the Italian scheme to support audio-visual production companies affected by the COVID-19 pandemic.
Taxpayers’ Rights and the Writ for Protection
Authors: Piza Rodríguez J.R. , Bocachica M.H.
Published: December 2023

In this article, the authors outline the issues that can be raised in Colombia when taxpayers appear before the tax courts.