bluuebunny/crossref_metadata_2025 huggingface dataset:
A Brief Overview of the New Tax Regime
Authors: Susarla K.
Published: December 2023

Afghanistan has implemented a new income tax law which effectively
substitutes the previous tax legislation introduced in the year 2005. The new
income tax law introduces some new concepts like “Afghan and non-Afghan
sources”. This article presents a brief summary of the new tax law aimed at
highlighting the basic structure of the law, its salient features and
operational spectrum.
Over-the-Counter Derivative Markets in the Light of EMIR Clearing
Obligations and the Financial Transaction Tax
Authors: Heber C. , Sternberg C.
Published: December 2023

The European Financial Market is and will be subject to significant
legal changes. At its current stage, the European Union has issued Regulations
for the over-the-counter derivative market; under the European Market
Infrastructure Regulation, these contracts must be cleared through central
counterparties. Beyond that, several EU Member States are attempting to
implement a common financial transaction tax that should increase financial
market stability. The authors conclude that these two instruments are not
sufficiently coordinated and thus further amendments to the current financial
transaction tax proposal are necessary in order to provide a coherent European
regulatory approach for the financial market.
Tax Treaty Trends in Central Asian Former Soviet Nations
Authors: Hwong Thaddeus , Mellor P. , Krever R.
Published: December 2023

This article examines treaty trends in five Central Asian Republics: Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan and Uzbekistan, following the gaining of their independence after the fall of the Soviet Union in 1991.
Proposed Legislative Changes and Impact on Foreign Investment Funds
Investing in India
Authors: Nayak R. , D’Almeida C.
Published: December 2023

The Direct Taxes Code, 2010 proposes to replace the current Income Tax
Act, 1961 and is envisaged to be effective from 1 April 2012. While the Direct
Taxes Code provides clarity for foreign institutional investors with regard to
certain transactions, some provisions – such as the introduction of general
anti-abuse rules and change in the residency test for companies – are a cause
of concern.
Common Consolidated Corporate Tax Base: A Problem for All Solutions?
Authors: Verdoner L.
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. In this issue the outline prepared by Mr. Louan Verdoner is presented.
The Digital Economy and Indirect Taxation: The Brazilian Perspective
Authors: Castro D.
Published: December 2023

This article examines the indirect tax challenges of the digital economy given the conclusions of the OECD/G20 Base Erosion and Profit Shifting initiative. In assessing the recent reforms regarding indirect taxation in Brazil, the article revisits the question of whether tax reform is needed in the digital sector.
Place of Effective Use and Enjoyment of Services – EU History Repeats Itself
Authors: Ecker T.
Published: December 2023

Under the place-of-supply rules for services that came into force in the European Union on 1 January 2010, Member States have broader powers to unilaterally deviate from the standard place-of-supply rules laid down by the VAT Directive and to tax services at the place where they are effectively used and enjoyed. By adopting those new rules, the EU legislature has taken a step back in an evolutionary process of more than 40 years and ignored the fact that international experience shows that the place of real consumption (or of effective use and enjoyment) is not an efficient criterion for taxing services. In this article, the author discusses the unnecessary complexity and uncertainty that the EU legislature has created.
Implementation of Controlled Foreign Company Rules under the EU Anti-Tax Avoidance Directive (2016/1164)
Authors: Groot I.M. de , Larking B.
Published: December 2023

In this article, the authors examine some of the ways in which EU Member States have chosen to implement – or not implement – the CFC provisions of the EU Anti-Tax Avoidance Directive (2016/1164).
Arbitration under the OECD Multilateral Instrument: Reservations, Options and Choices
Authors: Pit H.M.
Published: December 2023

Seventy states have signed the Multilateral Instrument (MLI). Part VI includes a mandatory and binding arbitration procedure for those issues that remain unresolved after two years under the mutual agreement procedure. This article considers the implications for the 26 states that to date have opted for Part VI.
Chinese Direct Investments in the EU: New Tax Treaties and Effective
Corporate Tax Burdens
Authors: Bärsch S-E. , Spengel C. , Streif F.
Published: December 2023

Against a background of direct investment flows from China (People’s
Rep.) into the European Union and their considerable untapped potential, China
and several EU Member States have recently agreed new tax treaties. The authors
will analyse the new tax treaties agreed by China with France, Germany, the
Netherlands and the United Kingdom and the comparative attractiveness of these
EU Member States for Chinese investors, in terms of effective corporate tax
burdens being improved by the new tax treaties.
New Transfer Pricing Administrative Guidelines
Authors: Biçer R.
Published: December 2023

The Turkish tax authorities recently released new transfer pricing administrative guidelines to provide more details on their official approach to transfer pricing rules and implementation. This article considers how these new guidelines affect transfer pricing rules and the implementation thereof. Accordingly, the main focus here is on the new administrative commentaries on transfer pricing rules and practices.
Permanent Establishments under the OECD Model (2017) Based on the Principal Role Leading to the Conclusion of Contracts – A Doctrinal and Policy Analysis
Authors: Prakash K.
Published: December 2023

This article examines the meaning and scope of the expression “playing the principal role leading to the conclusion of contracts” introduced into article 5(5) of the OECD Model (2017). From a policy perspective, the author argues that the 2017 changes realize the overarching principles of appropriate permanent establishment taxation.
The Venture Capital Company Regime in South Africa
Authors: Mazansky E.
Published: December 2023

In this article, the author describes how, after a slow start due to onerous requirements and low investment thresholds, investments in venture capital companies have taken off, resulting in significant funds being invested in small and medium-sized enterprises. The author also details current legal requirements and some issues requiring clarification.
Arm’s Length: Beyond the Guidelines of the OECD
Authors: Schoueri L.E.
Published: December 2023

In the Klaus Vogel Lecture of 25 September 2015, hosted by the Institute for Austrian and International Tax Law (WU), Vienna, Prof. Luís Eduardo Schoueri undertook an in-depth consideration of the arm’s length standard (ALS) in relation to transfer pricing issues and the current status of the ALS.
Special Arrangements Applicable to Mergers, Demergers, Transfers of Assets and Exchanges of Shares: The Portuguese Perspective
Authors: Andrade A. , Ferreira de Lemos T.
Published: December 2023

This article offers a coherent and structured analysis of key aspects of the Portuguese tax regime applicable to mergers, demergers, transfers of assets and exchanges of shares.
The New Cross-Border Merger Regime for Collective Investment
Institutions
Authors: Ferrer C. , Mayo C.
Published: December 2023

The authors consider the tax regime applicable to cross-border mergers
in Spain, as well as a noteworthy binding consultation issued by the tax
authorities analysing a cross-border merger in which a number of Spanish
collective investment funds were acquired by a Luxembourg SICAV.
Council
Authors: Xygka A.
Published: December 2023

This overview highlights the Council’s (i) Code of Conduct Group agreement on a work programme under the Spanish Presidency, (ii) identification of the tax priorities for the second semester of 2023 and (iii) discussions regarding updates on Pillar One, as well as the approved conclusions on the European Semester.
Horizontal Discrimination and EU Law: The Sopora
Case
Authors: Meussen G.
Published: December 2023

In this note, the author comments on the pending Sopora case (Case C-512/13), which addresses the issue of
horizontal discrimination, meaning discrimination by the home state between
different groups of non-residents. The author examines the issue in the broader
context and provides comments on the possible outcome of the case.
Recent Developments in International Tax Law – Part 2
Authors: Huber M.F. , Duss F.
Published: December 2023

In Part 2 of this article, the authors consider important changes addressed in recent treaty negotiations between Switzerland and various other countries. Part 1, published in the December 2009 issue of the Bulletin for International Taxation, dealt with the exchange of information with regard to the same round of negotiations.
IFA/OECD Seminar in Boston: Now You See It, Now You Don’t – The Elusive Concept of Permanent Establishment
Authors: Vann R.
Published: December 2023

This article is the eleventh of a series of articles that will feature the sessions to be presented at the 66th Congress of the International Fiscal Association (IFA), to be held in Boston September 30 through October 4. Readers who wish to register may do so at www.ifaboston2012.com or at the IFA USA Branch website www.ifausa.org (click on the IFA 2012 Boston icon).
Interest Deduction Limitations in Sweden Post-Lexel: The Relevance of the Free Movement of Capital
Authors: Brokelind C. , Kleist D.
Published: December 2023

In Lexel (Case C-484/19), the Swedish interest deduction limitation rules were found to be in breach of article 49 of the TFEU on the freedom of establishment, as they presumed abusive practices even in respect of arm’s length-based transactions. The present article puts the case into context and highlights follow-up issues raised before lower Swedish tax courts in the context of loan transactions involving associated companies in third countries. Indeed, recent ECJ case law indicates that transactions between associated companies in the European Union and in third countries are protected under article 63 of the TFEU on the free of movement of capital.
Bifurcation or Integration: The Choice of Method To Tax Compound Financial Instruments
Authors: Tang J.
Published: December 2023

The author considers the two competing approaches to the taxation of compound financial instruments, namely bifurcation and integration. Special attention is paid to the US history of addressing this issue.
Brief history of Canadian taxation
Authors: Couzin R.
Published: December 2023

This article reviews the modern history of Canadian taxation - mainly
the personal and corporate income taxes - from 1972, when Canada's income tax
regime underwent a major tax reform, to the present. The article first
summarizes the federal dimension of Canadian taxation because of its importance
both fiscally and historically. The article then briefly considers the 1960s
backdrop to tax reform and discusses the development of tax legislation, tax
treaties and international taxation, tax jurisprudence and tax
administration.
International Tax Disputes – The New Zealand Experience
Authors: Peters C.
Published: December 2023

The New Zealand experience in handling international tax disputes is
discussed in detail.
Case Note: Payments to Foreign Entity to Accelerate Access to Online Content Not Income under Income Tax Act or United States Treaty
Authors: Dugar A. , Bhandari L.
Published: December 2023

This case note summarizes the recent ruling by the Authority for Advance Rulings in Akamai Technologies Inc. that payments received by a foreign company from its Indian subsidiary for a content delivery solution to accelerate online content and business processes under a services reseller agreement were not in the nature of fees for technical services or royalties under the Income-tax Act, 1961 or the India-United States Income Tax Treaty (1989), and that the arrangement did not create a permanent establishment of the foreign company in India.
US Taxation of High-Yield Debt: The End of the Reprieve Is
Coming
Authors: Hammer V.
Published: December 2023

A punishing regime for the taxation of high-yield OID debt was
introduced in 1989, which we call the “AHYDO rules”. The rules were one of
Congress’ chief responses to the leveraged buyout frenzy of the 1980s. For 20
years, these absurdly complex rules rested in hibernation, but reared their
heads in 2008, during the financial crisis. Recognizing that the application of
the AHYDO regime to a large swath of American corporate debt was not what
Congress intended in enacting the rules, Congress abrogated them in 2009 – but
only for a brief period. In this article, the author (1) explains the history
of the AHYDO rules, (2) walks readers through the maze of their application,
(3) explains attempts by Treasury and Congress to mitigate their barb during
the financial crisis and (4) offers some long-term solutions to the problem of
what to do when the rules rear their heads once again in a few
months.
VAT Treatment of Initial Coin Offerings
Authors: Bal A.
Published: December 2023

Initial coin offerings (ICOs, also referred to as token sales) are a new means of raising capital where new cryptocurrencies (tokens) are sold for other cryptocurrencies or legal money. In this article, the author examines the VAT treatment of ICOs and investigates whether the principles established by the Court of Justice of the European Union and the VAT Committee in relation to Bitcoin transactions can be transposed to token sales.
“Piercing the Corporate Veil” in Taxation Matters: India and International Transactions with Special Reference to the Direct Tax Code 2010
Authors: Bajpai P. , Sehgal D.
Published: December 2023

The authors, in this article, consider whether the Direct Tax Code 2010 will repair or harm the existing financial structure of the Indian economy and ask if certain transactions will be regarded as tax avoidance, as Indian tax law, at present, does not contain any generic provisions relating to anti-avoidance.
The Determination and Assessment of the Appropriateness of Interest Rates in the Case of Cross-Border Financial Transactions between Related Parties – A Case Study
Authors: Greil S. , Schilling D.
Published: December 2023

Assessing the appropriateness of interest rates for loan relationships in multinational groups or corporate groups may be the subject of controversial discussions in tax audits. On the basis of a two-stage concept, the case study is intended to provide the practical determination of the interest rates for such transactions. This gradually developed case study serves as a fruitful instruction for consulting practice, administration and jurisdiction, while realizing an appropriate arms’ length interest rate.
New Polish MDR Regulation from a Transfer Pricing Perspective
Authors: Matusik B. , Chodziński P. , Gajur M.
Published: December 2023

The Polish Ministry of Finance has stated that, in principle, standard transfer pricing acts, such as the preparation of transfer pricing documentation and benchmarking/comparability studies, do not result in a reportable scheme, provided that those engaged in this process are dealing solely with past events. However, since advisers usually make some future recommendations in this respect, the arrangements in question will often be considered reportable. Moreover, reporting obligations may arise in connection with numerous other types of transfer pricing-related issues.
Reporting Rules on Payments to Tax Havens Deemed Constitutional
Authors: Mortier F.
Published: December 2023

According to the Belgian Constitutional Court, the failure to report a payment to a person established in a non-cooperative jurisdiction or a tax haven is, in principle, a sufficient reason to deny the deduction of the payment for tax purposes. The reporting obligation imposed upon (non-resident) corporate taxpayers exists irrespective of whether the payment concerns an actual transaction or a sham. No fraudulent intent is required.
US Tax Cuts and Jobs Act: Part 2 – The Base Erosion and Anti-Abuse Tax (BEAT)
Authors: Pérez Gautrin C.
Published: December 2023

This article is the second in a series on US taxation that explores the recent US tax reform enacted by the US Tax Cuts and Jobs Act by focusing on Global Intangible Low-Taxed Income (GILTI), Foreign Derived Intangible Income (FDII) and the Base Erosion and Anti-Abuse Tax (BEAT).
Loss Utilization
Authors: Lee S.H.
Published: December 2023

This comparative survey article on Singapore is based on a paper presented at the Baker & McKenzie 30th Annual Asia-Pacific Tax Conference held in Hong Kong from 13-14 November 2014. The 31st Annual Asia-Pacific Tax Conference is to be held in Singapore in November 2015.
Interaction of Transfer Pricing Rules and CFC Provisions
Authors: Burkadze E.
Published: December 2023

The author examines whether there is a need for both transfer pricing rules and CFC provisions, and what outcomes should be expected where these rules are applied concurrently. An analysis is provided of the structure known as the Double Irish with a Dutch Sandwich and the structure involving a so-called cash-box company in an operating lease arrangement. Moreover, the author considers (i) whether CFC rules can act as a backstop to transfer pricing rules and (ii) whether the application of these two sets of rules could lead to double taxation.
Taxation of Insurance Companies in Afghanistan
Authors: Hassan B.
Published: December 2023

The insurance sector plays an important role in the socio-economic development of a country. In this article, the author gives a brief overview of the insurance sector in Afghanistan and then summarizes the provisions of income tax law concerning the taxation of insurance companies in Afghanistan. The article concludes that strengthening the insurance sector will help mitigate social and economic uncertainties in Afghanistan.
Delhi High Court Ruling on Tax Treatment of Proceeds from the Sale of
Compulsorily Convertible Debentures
Authors: Jhabakh P.R.K.
Published: December 2023

This article analyses a recent ruling of the Delhi High Court, which
set aside the ruling of the Authority for Advance Rulings in the Zaheer Mauritius case. The Court held that proceeds from the
sale of compulsorily convertible debentures are taxable as interest income and
not as capital gain.
Taxation of Inward Investment – Treaty Shopping, Taxation of Capital
Gains, and Dividends: Innovative Solutions to an Old Problem
Authors: Dunbar D.
Published: December 2023

A detailed article examining the use of treaty shopping to reduce or
eliminate Chinese-source taxation on capital gains and dividends, and the
countermeasures undertaken by the Chinese tax authorities.
Italy and the European Union: The Curious Case of Secondment of Personnel
Authors: Ferrari M. , Lanotte G.
Published: December 2023

The decision by the Court of Justice of the European Union (ECJ) in San Domenico Vetraria See IT: ECJ, 11 Mar. 2020, Case C-94/19, San Domenico Vetraria SpA v. Agenzia delle Entrate, Case Law IBFD. has outlined the contrast between the VAT Directive and the Italian law as far as the VAT treatment of secondment of personnel is concerned. The way the decision will be implemented, however, remains unclear. In this article, the authors intend to provide a brief overview of the entire matter by retracing the law and the case law developments until the recent judgments of the Italian Supreme Court (Supreme Court), IT: Supreme Court, 2 Mar. 2021, Case 5601, Telearena v. Agenzia delle entrate; IT: Supreme Court, 2 Mar. 2021, Case 5609, Agenzia delle entrate v. La Carpi Cooperativa Società; IT: Supreme Court, 24 Mar. 2021, Case 8324, AF Motors S.r.l. v. Agenzie delle entrate; IT: Supreme Court, 27 May 2021, Case 14716, S.p.A. Romana Calcestruzzi v. Agenzia delle entrate; IT: Supreme Court, 9 June 2021, Case 16067, Agenzia delle entrate v. Towertel S.p.A.; IT: Supreme Court, 19 July 2021, Case 20589, Novolegno SpA., incorporante Xilopack Srl v. Agenzia delle entrate. which have transposed the interpretation given by the ECJ.
Taxation of Offshore Indirect Transfers in Brazil in Need of Reform
Authors: Carvalho L. Kurth Marques
Published: December 2023

This article considers the taxation of offshore indirect transfers of assets in Brazil. By way of a comparison with the relevant rules in Australia, Chile, China and India, the author points out that Brazil’s approach towards the taxation of such transactions should be changed and suggests alternatives for reform.
Governance of Tax Administrations: What Other Countries Can Learn from Zambia
Authors: Assassa A. , Mambwe K.
Published: December 2023

Anthony L. Assassa and Kalale Mambwe explain why governance is a critical part of tax administrations and how its current framework centres on technological and internal controls. The authors explain how, when properly set, as in Zambia, governance can successfully drive performance for tax administration.
Italian Case Law and International Taxation
Authors: Favi L. , Parolini A.
Published: December 2023

In this article, the authors examine various issues relating to international taxation and Italian case law, with special emphasis on recent developments and judgements.
Issue of Common Control in Recent Transfer Pricing Cases
Authors: Karyadi F. , Wicaksono Sungkono P.
Published: December 2023

The authors consider two recent court cases that address the issue of
common control among taxpayers in a transfer pricing context.
China and BEPS: From Norm-Taker to Norm-Shaker
Authors: Li J. (Jinyan)
Published: December 2023

In this article, the author considers the implications for China of the G20/OECD Base Erosion and Profit Shifting (BEPS) initiative and the international implications of China’s BEPS measures.
Tax Treatment of Transaction Costs
Authors: Parland E. , Lindblad M.
Published: December 2023

This article discusses the tax treatment of transaction costs for
income and indirect tax purposes from a Swedish perspective.
New Standards on Derivatives
Authors: Martin J.
Published: December 2023

The Argentine tax authorities have issued a resolution aimed at
establishing the tax treatment of derivatives. The author considers this
resolution and new requirements that it brings about.
Downward Transfer Pricing Adjustments: Dow Chemical Canada ULC v. The Queen
Authors: Wilkie J.S.
Published: December 2023

This article discusses the 2020 Dow Chemical Canada case. A downward transfer pricing adjustment is permitted under the Income Tax Act only if in their “opinion” the Canadian tax authorities determine that “the circumstances are such that it would be appropriate that the adjustment be made”. The question addressed in this case is whether the Tax Court of Canada rather than the Federal Court is the appropriate forum to review the exercise by the tax authorities of their authority to deny a downward adjustment. The Tax Court decided that it has that authority on the basis of the connection of the tax authorities’ opinion to the determination of a taxpayer’s assessable income under the Income Tax Act. This decision of the Tax Court of Canada may have implications beyond its immediate transfer pricing context for how decisions made by the Canada Revenue Agency in administering the Income Tax Act may be judicially reviewed.
Amount A and Its Design So Far: Feasibility in Sight?
Authors: Moura M.H. Barbosa , Padwalkar A.
Published: December 2023

As they currently stand, the Pillar One Amount A rules raise several questions about their application, complexity and deviation from the traditional notions known in international tax. In this article, the authors highlight some of the issues in the various building blocks of Amount A and the possible challenges that could arise from its implementation.
The New French 3% Withholding Tax on Profit Distributions: A Minefield
for the French Government
Authors: Robert E.
Published: December 2023

In this note, the author discusses the new French corporate income tax
surcharge, which was introduced as a response to the abolition of the French
withholding tax on outbound dividends paid to non-resident UCITS. In
particular, the note discusses the rules of the surcharge, various loopholes
and discrepancies in regard to the provision and its compatibility with EU law.
The Impact of COVID-19 on Transfer Pricing: Issues Arising during the Economic Downturn and Possible Solutions
Authors: Cataldi M. , Alfano A.
Published: December 2023

This article analyses whether limited-risk entities may bear under arm’s length conditions a portion of the negative financial consequences deriving from the current COVID-19 disruption. Furthermore, the article offers an overview of the impacts of the COVID-19 emergency on the benchmark analyses for 2020, on transfer pricing documentation and on unilateral and bilateral advance pricing agreement (APA) procedures.
Important International Tax Developments – Foreign Capital Gains Withholding Tax, and Anti-Google, Netflix and Amazon Taxes
Authors: Butler M. , Jennison A. , Neilson R.
Published: December 2023

Australia has recently introduced, or will soon introduce, important legislation with significant implications for foreigners who invest in Australian real estate (both residential and agricultural) or sell goods or services to Australian consumers. The article takes a close and practical look at the impact of some of these key developments on international transactions and the foreign parties.
Implementation of the Amendments to the Parent-Subsidiary Directive (2011/96) into Luxembourg Law
Authors: Mischo P. , Wantz J.
Published: December 2023

The authors, in this note, discuss Bill No. 6847, which, inter alia, transposes the latest amendments to the Parent-Subsidiary Directive (2011/96) into the Luxembourg Income Tax Law.
Revisiting Camp's Repatriation
Authors: Herzfeld M.
Published: December 2023

In this article, the author discusses a mandatory deemed repatriation provision that was proposed in the House Republicans' Blueprint and the Tax Reform Act of 2014 (Camp's Bill).
Permanent Establishment Concept – An Indian Perspective
Authors: Butani M. , Jain P. (Parul)
Published: December 2023

The authors examine the basic permanent establishment concept before
analysing relevant case laws in order to provide the state of play in India
today.
Anti-Abuse Notion of “Control over Intangible-Related Functions” Is Beyond the Arm’s Length Principle
Authors: Musselli A. (Andrea)
Published: December 2023

This article takes the position that Example 17 (on intangibles) of the OECD Transfer Pricing Guidelines (2017), which focuses on the issue of control over a research activity and the relationship between control and entitlement to ownership of an intangible and the revenues it generates, is not grounded in theory or in empirical evidence under the arm’s length principle.
The Impact of the US Foreign Account Tax Compliance Act (FATCA) on European Entities
Authors: Eckl P. , Sambur J.
Published: December 2023

This note addresses the potential impact of the US Foreign Account Tax Compliance Act on investment vehicles and multinationals situated in Europe, which contains provisions designed to prevent improper tax avoidance by US taxpayers that maintain accounts with non-US financial intermediaries or that make investments through non-US investment vehicles.
VAT Implications of Cancellation Charges: New Substance-over-Form Rule?
Authors: Radeva Y.
Published: December 2023

On 22 November 2018, the ECJ issued a judgment that revived a long-standing dispute regarding the VAT treatment of non-refundable payments. In this article, the author provides an overview of the evolution of the ECJ's understanding of the nature of cancellation charges and seeks to clarify the criteria for differentiating between charges subject or not subject to VAT. The author analyses the impact of the latest developments in this discussion on the evolution of the substance-over-form doctrine in the field of VAT.
Methodologies for Applying Transfer Pricing Adjustments to Comparable Companies Following the COVID-19 Economic Downturn
Authors: Orlandi A. , Iervolino R. , Latino M.C.
Published: December 2023

This article analyses in detail the methodologies that could be used to apply COVID-19 comparability adjustments to the comparable companies selected in transfer pricing benchmark analyses. Specifically, the article investigates linear regression analyses based on (i) costs (variable and fixed) resulting from a change in revenues; (ii) variable costs resulting from a change in revenues with the subsequent application of specific sensitivity analysis for fixed costs in view of the operating model of specific industries; and (iii) revenues and costs (variable and fixed) resulting from a change in GDP or specific industry statistics.
Allocation of Head Office Expenses and the Interpretation of Article 7(3) of the United Nations Model Tax Treaty
Authors: Adoe A.
Published: December 2023

In this article, the author discusses the interpretation of article 7(3) of the UN Model Tax Treaty and the allocation of head office expenses to a permanent establishment under Indonesia’s domestic law. The article reviews Indonesian case law, which has generally upheld the indirect method of allocation, despite double taxation outcomes, and supported the tax authority’s demands for detailed supplementary information and documentation beyond consolidated accounts and audited allocation methodologies. The author also addresses arm’s length pricing of intra-group services and suggests that it might be challenged by the Indonesian tax authority in the determination of taxable profit of a permanent establishment in Indonesia.
Will We See a Change in Tax Treaties between European Countries Concerning Taxation of Occupational Pensions?
Authors: Wiberg B.
Published: December 2023

This article highlights the importance of the issue of occupational pensions in Europe. It analyses the tax treatment of occupational pensions in Europe, in general, as well as their treatment under both the OECD Model (2010) and select tax treaties of Member States. In particular, the author indicates that there is an emerging trend in tax treaties amongst Member States to grant the source country a right to tax.
Turning a Subsidiary into a VAT Fixed Establishment – It Just Ain’t So?
Authors: Echevarría Zubeldia G.
Published: December 2023

In this Column, the author analyses the ECJ’s decision in Berlin Chemie A. Menarini, in which the ECJ delves into the controversial question of whether a subsidiary can constitute a fixed establishment of its parent company and under what conditions such a situation may occur.
Cost Contribution Arrangements and Funding Activities
Authors: Polonska T.
Published: December 2023

This article examines the level of return a financing participant of a development CCA is entitled to and the factors that can impact such return. The author discusses the prevailing role of risks over the functions for the assessment of a funder’s remuneration at a particular stage of IP development by analysing private equity examples.
Managing Transfer Pricing Risks
Authors: Phan A.T. , Stevens S.M.
Published: December 2023

This article focuses on the recent transfer pricing developments and highlights the potential risk areas in Indonesia.
Some Reflections on the Proposed Revisions to the OECD Model and Commentaries, and on the Multilateral Instrument, with Respect to Fiscally Transparent Entities – Part 1
Authors: Nikolakakis A. , Austry S. , Avery Jones J.F. , Baker P. , Blessing P.H. , Danon R.J. , Goradia S. , Hattingh J. , Inoue K. , Lüdicke J. (Jürgen) , Maisto G. , Miyatake T. , Raad C. van , Vann R.J. , Wiman B.
Published: December 2023

Part 1 of this article reflects on the OECD’s proposals regarding fiscally transparent entities and the provisions of the Multilateral Instrument based on experience in considering and working with similar measures in existing treaties. Consequently, the article raises a number of interpretive and technical questions, as well as policy issues.
How the Sharing Economy Is Challenging the EU VAT System
Authors: Grlica I.
Published: December 2023

Sharing online platforms (Airbnb, Uber, BlaBlaCar, etc.) disrupt the way business has traditionally been done and pose new challenges both to established industries as well as to regulators. In this article, the author explains the main characteristics of the sharing economy business models and outlines the general legal and tax challenges that they raise, before focusing in more detail on specific VAT issues of sharing platforms with a view to providing some guidance on how they can best be addressed.
Tax Residence and the Mobility of Companies: Borderline Cases under Private International Law and Tax Law
Authors: Van Daele J.
Published: December 2023

The author, in this article, addresses the interrelationship between private international law and taxation laws in regard to corporate residence and migration, concluding that further harmonization of private international law would enhance corporate mobility. He notes that while ECJ case law has been invaluable in increasing corporate mobility, further case law is needed to resolve certain obstacles that impact a company’s freedom to migrate as compared to migrating individuals.
Disclosure, Secrecy and the Panama Papers
Authors: Joseph A.
Published: December 2023

The author considers recent developments in Australia that will impact reporting and disclosure by taxpayers, and the interaction with measures proposed under the OECD’s BEPS project.
Government Presses Ahead with Controversial Sectoral Taxation Policy through the Introduction of an Advertisement Tax
Authors: Felkai R.
Published: December 2023

This note addresses the new advertising tax that was introduced with effect from 15 August 2014 in continuation of a long-term government commitment to a series of sectoral special taxes. In this context, Hungary has already faced criticism, including by the ECJ. This new tax applies not only to companies providing advertising services, but also – via a kind of reverse charge procedure – to absorbing companies, including foreign-based companies.
Putting Territoriality in Its Place: Singapore’s Perspective on Tax Competitiveness
Authors: Phua S.
Published: December 2023

Even with the relative lack of concrete details, any possibility of tax reform in the United States generally attracts significant amounts of attention from all around the world. This is especially true now, with the looming of what appears to be the biggest tax reform since 1986. Of the many proposals within this reform, this article will focus on the proposed shift to a territorial tax system and reduction in corporate tax rates. It will demonstrate that the reform is overdue in the light of international norms and trends. In underscoring the imperatives of the proposed US tax reform, this article will evaluate and analyse the impact of these trends and the relevant experiences of some other countries. In particular, it will discuss in greater detail a similar tax reform initiative of Singapore in 1986 as well as the issue of a Singapore-United States double tax agreement.
Why Nigeria Cannot Agree to the OECD’s Two-Pillar Approach – For Now
Authors: Okoriekwe C.
Published: December 2023

Nigeria is one of just six countries in the BEPS inclusive framework that has not signed on to the OECD’s 1 July 2021 announcement of agreement on Pillars One and Two. Chuks Okoriekwe explains why Nigeria’s Constitution does not permit the dispute resolution mechanism outlined in the Pillar One proposal, and why Nigeria might want to consider amending its constitution to permit it.
Reciprocity as a Fundamental Principle of Tax Treaties: Meaningless Platitude, Misguided Policy or Practical Guideline?
Authors: Arnold B.J.
Published: December 2023

In this article, the author considers the meaning of the concept of reciprocity and its implications with regard to tax treaties.
Ruling on Benchmarking for Advertising Expenditures: The Genom Biotech Case
Authors: Chakravarty A. , Gupta R.
Published: December 2023

This article discusses a recent Indian judicial decision on the transfer pricing issues related to advertising, marketing and promotion expenses. The decision indirectly touches upon the complex question of transfer pricing for intangibles.
The Impact of the New General Anti-Avoidance Rules on the Assessment of Hybrid Financial Instruments and Entities
Authors: Czollak A. , Yáñez F.
Published: December 2023

Hybrid financial instruments and entities lack any express regulation within Chilean tax law. This legal void, alongside the highly formalistic interpretation of the law applied by the Chilean tax authorities, has led to a rejection of transparent entities for Chilean tax purposes, and a classification of hybrid financial instruments as “debt” or “equity” based solely on formal arguments. New general anti-avoidance rules (2014) have introduced a substance-over-form principle, which is starting to be factually and preventively applied by the Chilean tax authorities. The following analysis aims to illustrate the above-mentioned trend, in particular as it relates to hybrid financial instruments and entities, traditionally “no man’s land” for tax purposes.
Transfer Pricing in Brazil: Practical Aspects in the Adaptation of the Arm’s Length Standard
Authors: Exel E. van , Moreira F. Lisboa , Wiertsema T.
Published: December 2023

Brazilian taxpayers need to comply with new OECD-based transfer pricing rules as of financial years starting on or after 1 January 2024. They are also allowed to apply the new rules for financial years starting on or after 1 January 2023, if they choose for “early adoption” later this calendar year. This article outlines the practical impact of the new rules for Brazilian taxpayers, based on its underlying concepts and a case study including intra-group transactions that Brazilian taxpayers are commonly engaged in. In addition, the authors aim to illustrate some key considerations, opportunities, and risks of the upcoming decision whether to adopt early.
Court of Justice
Authors: Morales T.
Published: December 2023

This overview highlights the General Court’s decision on the incompatibility of the Spanish tax lease system for the purchase of vessels with State aid rules and the ECJ’s decision on legislation of a Member State that excludes the possibility of an effective judicial remedy against a request for information arising from an exchange of information request from another Member State.
European Commission’s New Package of Proposals on E-Commerce: A Critical Assessment
Authors: Lamensch M.
Published: December 2023

It is with great enthusiasm that the European Commission released a new package of proposals towards a modernization of VAT for e-commerce. The European Commission announced nothing less than astronomical revenue for the Member States and a major drop in compliance and administrative costs. Against this background, the author in this article proposes a systematic analysis of the new proposals and concludes that the reality might be much different from the “success story” being told by the European Commission.
Recent Amendments to the Bulgarian Corporate and Personal Income Tax Acts
Authors: Tzenova Lubka
Published: December 2023

In 2008 and 2009, various amendments were enacted by the Bulgaria National Assembly in respect of corporate and personal income tax, generally, with effect from 1 January 2009, but some with effect from 1 January 2010. This note considers the most important of these amendments.
EC communication on VAT grouping : an attempt to harmonize or to
restrict the use of group registration?
Authors: Massin I. , Vyncke K.
Published: December 2023

The VAT Directive provides the Member States of the European Union
with an option to introduce VAT grouping into their national legislation. Group
registration has become a source of tax competition between the Member States,
which means that it has a potential impact on the functioning of the internal
market and on the basic principles of the Community VAT system. The Commission,
as the guardian and initiator of Community legislation, has published its views
on a number of essential elements of VAT grouping. In this article, the authors
summarize the Commission's analysis and specifically comment on the limitation
of VAT grouping to taxable persons and the territory of individual Member
States.
Tax Issues Relating to Intangibles
Authors: Dimagiba D.
Published: December 2023

The comparative survey articles are based on selected papers presented
at the Baker & McKenzie 28th Annual Asia-Pacific Tax Conference held in
Hong Kong on 1 and 2 November 2012. The 29th Annual Asia-Pacific Tax Conference
is expected to be held in Singapore in October 2013. 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.
Overview of Land Appreciation Tax
Authors: Ma S. (Shiqi)
Published: December 2023

The author provides an overview of China’s land appreciation tax, which has become increasingly important as property prices continue to soar in China.
Intangibles and Transfer Pricing: The Perils Faced by Multinationals in India
Authors: Gill S.
Published: December 2023

This article explores the implications and challenges of transfer pricing, with special reference to intangibles in India. As transfer pricing policies, procedures and enforcement cannot be viewed in isolation, but must be studied in a broad international context, these differences are ascertained in the context of intangibles between India and its top seven foreign direct investor countries. Further, an attempt is made to trace case decisions on the transfer pricing of intangibles in India.
Introduction: A Stress-Test for the International Consensus
Authors: Goulder R.
Published: December 2023

In this article, the author provides an overview of the tax challenges presented by the digital economy.
Casenote – International Corporate Restructuring Not Subject to General Anti-Avoidance Rules
Authors: Butler M. , Misiajlo S.
Published: December 2023

The recent Australian decision in RCI Pty Limited v. Commissioner of Taxation is examined. In this case, the full Federal Court held that the tax avoidance provisions did not apply to a corporate restructure that substantially reduced the taxable capital gain.
Introducing a Transfer Pricing Regime
Authors: Shek J. , Quek D. , DeSouza G.
Published: December 2023

This article discusses Hong Kong’s recently issued DIPN 46, i.e. transfer pricing guidelines. The authors discuss the guidelines before providing views on the practical implications they may have on business operations carried on in Hong Kong. The article concludes with recommendations as to the next steps companies may consider in order to manage any Hong Kong transfer pricing risks.
Tax Relief Granted to “Private-Social” Organizations and State Aid Rules: A Difficult Balance Following Betania (Case C-74/16)
Authors: Dorigo S.
Published: December 2023

This article examines the applicability of State aid rules to tax incentives granted to non-commercial entities that serve a social function. In particular, the decision in Betania (Case C-74/16) is discussed, wherein the Court found that the exemption from municipal tax for buildings owned by ecclesiastical entities and used for educational purposes was subject to the EU State aid rules, which has narrowed the freedom of Member States to decide on the basic features of their tax system in these areas.
Czech Supreme Administrative Court on Taxation of Employee Stock Options
Authors: Fekar P.
Published: December 2023

On 30 January 2012, the Czech Supreme Administrative Court issued a decision on the timing of the crystallization of taxable income in regard to employee stock options. In the absence of specific rules in the Czech Income Taxes Act, this decision confirms that the taxable event is the date of exercise of the options.
Tax Treaties: What Are We Going to Do with Them?
Authors: Wheeler J.C.
Published: December 2023

This article charts the historical development of thinking about tax treaties, the issues raised by the current treaty network and the many new ideas from the past decade and pleads for careful consideration of the way in which treaties are employed in the future as instruments of international tax law.
Recent Important Indian Tax Cases
Authors: Sheth N. , Thakkar N.
Published: December 2023

In this article, the authors discuss some of the recent Indian rulings
laying down important principles in tax matters.
The Impact of a Corporate Governance System on the Place of Effective
Management Concept in Spain, France, the United Kingdom, the Netherlands,
Germany and Italy – Part 1
Authors: Pötgens F.P.G. , Os P. van, , Mensing I. , Canalejo Lasarte G. , López Pombo D. , Scheifele M. , Wagner G. , Luder S. , Milliner E. , Durand P.-H. , Robert A. , Dony A. , Silvestri A. , Lancellotti L.
Published: December 2023

This article discusses the impact of a corporate governance system on
the place of effective management concept. In Part 1, the authors outline how
six different European states determine, under their respective domestic laws,
the place of effective management of a multinational company with either a
one-tier or a two-tier board. Part 2, which will be published in European Taxation 10 (2014), looks at how they interpret the
term "place of effective management" as used in tax treaties based on the OECD
Model under both board structures.
The Micula Case: A Rough Road for Dispute Resolution
Authors: Goulder R.
Published: December 2023

In this article, the author examines the Micula case involving the European Commission, two Swedish investors, and Romania’s withdrawal of tax incentives, and discusses the case’s implications for the limits of dispute resolution based on bilateral accords.
CFE Forum 2015: Tax Governance and Tax Risk Management in a Post-BEPS World
Authors: Baggerman K. , Kireta I. , Popa O.
Published: December 2023

In this note the authors provide a summary of the presentations made at the CFE Forum 2015 held in Brussels on 26 March 2015.
Conditional Withholding Tax: A Tax on Tax Planning
Authors: Vleggeert J. , Vording H.
Published: December 2023

This article discusses the merits of a conditional withholding tax on intra-group payments of interest and royalties. The authors argue that a conditional withholding tax would help to counter base erosion and profit shifting and would establish an international minimum norm for corporate income tax rates.
Deduction of Interest and Other Borrowing Costs in Singapore: A Review
of the Principles Set Out in Three Recent Court of Appeal Decisions
Authors: Poh E.H.
Published: December 2023

Three recent Court of Appeal cases have cleared up the uncertainty
previously surrounding the deduction of interest and other borrowing costs in
Singapore. This article gives a brief overview of the cases and reviews the
principles underlying the deduction of such costs following from these cases as
well as the issues previously in dispute that have since been
resolved.
Cross-Border Tax Arbitrage
Authors: Altman Z.D.
Published: December 2023

This article is the eighth of a series of articles that will feature the sessions to be presented at the 66th Congress of the International Fiscal Association (IFA), to be held in Boston September 30 through October 4. Readers who wish to register may do so at www.ifaboston2012.com or at the IFA USA Branch website www.ifausa.org (click on the IFA 2012 Boston icon).