bluuebunny/crossref_metadata_2025 huggingface dataset:
Tax Reform in Nigeria: Unrealized Expectations
Authors: Aguolu O.
Published: December 2023

Following the introduction of VAT in 1994, the Nigerian government embarked on comprehensive reforms of the tax laws, with policy changes that favoured consumption-based taxes as opposed to income-based ones. The article discusses these reforms and policy changes and, in reviewing the subsequent performance of the conventional taxes, concludes that – contrary to expectations – revenue from these taxes did not rise in relation to that from petroleum profits tax.
Do Singapore’s Group Relief Rules Breach the Non-Discrimination Article in the Singapore-United Kingdom Income Tax Treaty?
Authors: Tan H.T.
Published: December 2023

In this article, the author examines the relationship between the group relief rules under Singapore’s domestic income tax law and the non-discrimination rules in the Singapore-United Kingdom Income Tax Treaty. He submits that the group relief rules are in breach of article 25(3) and 25(1) of the treaty – the so-called “foreign ownership” and “nationality” paragraphs, based on article 24(5) and 24(1), respectively, of the OECD Model Tax Convention, but that article 25(5) of the United Kingdom treaty absolves Singapore from the breach in both instances. The article closely examines the text of the treaty, the OECD Commentary on Article 24 of the OECD Model, the United Kingdom Court of Appeal decision in FCE Bank plc v. Revenue and Customs Commissioners, and Singapore’s position (first published in 2014) on the non-discrimination article.
German CFC Legislation 2011: New Anti-Avoidance Provisions and Tax Planning Opportunities
Authors: Kollruss T.
Published: December 2023

The German Annual Tax Act 2010 tightens the CFC legislation with regard to foreign jurisdictions (especially Malta) that provide a credit or tax refund at the shareholder level. In Malta, for example, a CFC pays tax at a high rate (thus avoiding the German CFC provisions). Its shareholders, however, benefit from a tax refund, reducing the overall level of taxation significantly. The author highlights amendments to the CFC rules to close this loophole and tax planning opportunities that remain.
Evolution and Harmonization of International Taxation within the Global Tax Community: The Canadian Experience
Authors: Holloway S. , Lamarre L.
Published: December 2023

In this article, the authors consider the development and coordination of international tax law in a Canadian context, with special reference to decisions and the effect of the Judicial Committee of the Privy Council.
Second corporate tax reform in Switzerland
Authors: Huber M.F. , Noguera L.
Published: December 2023

A new set of tax measures entered into force on 1 January 2009 after
the Swiss voters approved the set of measures in February 2008. The measures
are designed to lower the overall tax burden for corporations, self-employed
persons and small businesses in Switzerland through specific provisions
affecting the income tax, stamp duty and withholding tax. Some of the measures
will become effective in 2011. This article discusses the new measures,
including the partial taxation of dividends, broader participation exemption,
indirect tax relief from the capital tax, issuance stamp duty relief for
financial reorganizations, and withholding tax exemption on the repayment of
paid-in capital.
Constitutionality of Treaty Override
Authors: Cloer A. , Hagemann T.
Published: December 2023

This note discusses a recent decision of the Federal Constitutional Court, wherein it was held that treaty override is constitutional.
Much Ado about Nothing? – A Critical Review of the TMW Decisions of the Supreme Court of Korea
Authors: Yoon J-H.
Published: December 2023

In this article, the author considers the taxation of funds that invest in Korean assets and derive Korean-source income with specific reference to the recent decisions of the Supreme Court of Korea in TMW (2015).
Budget 2011 and Finance (No. 3) Bill 2011
Authors: Roxburgh D.
Published: December 2023

This note deals with the proposals contained in the 2011 Budget which was presented to Parliament on 23 March 2011 and the provisions in the Finance (No. 3) Bill 2011 which was published on 31 March 2011 and embodies those proposals.
OECD’s Action Plan on Tax Base Erosion and Profit Shifting: Part 1 - What Should Be Africa’s Response?
Authors: Oguttu A.W.
Published: December 2023

In Part 1 of this article, the author first explains the thinking and concepts behind the OECD’s Action Plan on Base Erosion and Profit Shifting (BEPS) and then addresses the relevance of the OECD BEPS Action Plan to Africa and what should be the African response to the Plan.
Comparability Analysis for Contract Manufacturing Arrangement – The Problem of Comparing a Limited Risk Entity with an Entrepreneur!
Authors: Bilaney S.K.
Published: December 2023

A comparability analysis is the cornerstone for the application of the arm’s length principle. The identification of potential comparables must be made with the objective of finding the most reliable comparable while keeping in mind that such comparables will not always be perfect. When it comes to identifying comparables for an intercompany contract manufacturing arrangement – a limited risk arrangement in the value chain of a multinational enterprise – it is typically compared with third-party contract manufacturers, which are essentially entrepreneurs. Such a comparison, without an appropriate comparability adjustment, will not result in a correct conclusion on the arm’s length nature of the intercompany arrangement. In this article, the author explains why such a comparison is superficial and how the reliability and quality of the comparability analysis can be improved.
Commission
Authors: Valério C.
Published: December 2023

This overview highlights the Commission’s (i) adoption of the Temporary Crisis and Transition Framework for State aid measures; (ii) amendments to the General Block Exemption Rules to include environmental tax aid schemes and facilitate the green and digital transition; (iii) closing of the infringement procedure against Poland regarding flat-rate sales tax in the shipbuilding sector; (iv) order against Italy for the recovery of illegal aid in the form of a real estate tax exemption; (v) approval of a French scheme to support companies in overseas departments; (vi) decision that a fiscal support measure granted by the Walloon region to Renewi does not constitute State aid; (vii) fiscal policy guidance for 2024; and (viii) endorsement of Lithuania’s Recovery and Resilience Plan.
Effective Economic Use of Services under Argentine IVA
Authors: S. Screpante Mirna
Published: December 2023

In this article, the author discusses the various ways in which the criterion of effective economic use applies to cross-border services under the Argentine IVA system.
Developments in China’s Treaty Policy: Where is the Dragon Heading?
Authors: Long Y. (Yi)
Published: December 2023

This article examines China’s treaty policy by comparing treaties with different states and regions, effective and terminated treaties, and the three periods of Chinese policy. The author concludes that policy is consistent with the growth of the Chinese economy in moving from a capital-importing to a capital-exporting country.
Swiss VAT Act Revision: Upcoming Changes
Authors: Meier C.M.
Published: December 2023

The Swiss VAT Act will soon be amended. The amended provisions, if approved, would enter into effect on 1 January 2025. In this article, the author provides an overview of the changes that are likely to have an impact on non-Swiss companies.
New Article 12A of the UN Model Regarding Fees for Technical Services: Ahead of Its Time or a Step Too Far?
Authors: Malan M.T.
Published: December 2023

This article analyses the key features of the new article 12A (Fees for technical services) of the UN Model (2017) and the pre-existing principles that these features question. Inconsistencies exacerbated by the introduction of article 12A are discussed and the two alternatives advanced in the Commentary on Article 12A evaluated.
Underlying Foreign Corporate Tax Credits in the Greek Tax Treaty Network
Authors: Panetsos L.
Published: December 2023

In this note, the author discusses the granting of an underlying foreign corporate tax credit under Greece’s tax treaty network in light of Circular E.2018/2019, recently issued by the Greek tax authorities.
Value Added Tax and the Oil and Gas Industry in Nigeria
Authors: Andah E. , Ike C.
Published: December 2023

This article examines Nigeria’s VAT system and administration, and highlights the features and gaps of the system. The authors particularly focus on peculiar features and issues of Nigeria’s VAT in the oil and gas industry and analyses key decisions of the Nigerian courts and the Tax Appeal Tribunal. The authors further discuss how these decisions may affect the administration and the development of the VAT system in Nigeria generally. The article also identifies the differences and similarities between the Nigerian VAT system and the VAT systems in some African countries whilst recommending some salient features that may be adopted in Nigeria.
Is International Tax Controversy Emerging in Asia?
Authors: Araki S.
Published: December 2023

This article discusses whether international tax controversy is set to increase in Asia, whether there are any characteristics of tax controversy in the region, and how enforcement trends will evolve. The author contends that the combination of limited tax administration capacity, particularly of human resources, and a strong desire to secure tax revenue could lead to disagreement between tax authorities and taxpayers. He argues that it is beneficial to understand the enforcement trends and behaviour patterns of tax authorities as an evolutionary process in the step development of the capacities of tax authorities.
The Anti-Tax Avoidance Directive 2 and Hybrid Financial Instruments: Countering Deduction and Non-Inclusion Schemes in Third-Country Situations
Authors: Tomazela Santos R.
Published: December 2023

This article analyses the second Anti-Tax Avoidance Directive and its role in countering deduction and non-inclusion schemes caused by the use of hybrid financial instruments in third-country situations, in the light of primary EU law and Action 2 of the OECD/G20 Base Erosion and Profit Shifting initiative and its underlying justifications.
Bombardier Case: First Published Cash Pool Decision
Authors: Vistisen E.
Published: December 2023

The author analyses the first cash pooling decision of the Danish
Administrative Tax Court and describes the expected future impact on cash
pooling arrangements in Denmark. The decision is also compared to a different
outcome in a similar case in Norway.
The OECD Multilateral Instrument from a Mexican Perspective: What Are the Most Significant Challenges?
Authors: Becerra J.A.
Published: December 2023

In this article, the author provides an analysis of the most significant challenges that arise from the language of the OECD Multilateral Instrument, or the MLI, implementing treaty related-measures to prevent base erosion and profit shifting from a Mexican statutory (tax) and constitutional perspective.
Securitization Companies: Efficient Platforms for Entering the Distressed Debt Market
Authors: Kuijk F. van
Published: December 2023

The author considers the structuring of disposals and originations of certain loans through Luxembourg securitization entities, asserting that the Luxembourg securitization company is an efficient entity for use as a special purpose vehicle in securitization transactions.
New Transfer Pricing Information Returns and Rules for Effecting Transfer Pricing Adjustments
Authors: Quiñones M.T. , Camacho O.
Published: December 2023

Mexico’s implementation of requirements related to BEPS Action 13 appear to go beyond the OECD recommendations, giving rise to an environment of uncertainty for taxpayers and tax practitioners.
Using Economic Valuation Techniques for Transfer Pricing Purposes: Recent Developments for the Valuation of Brands
Authors: Bärsch S-E. , Erb C.
Published: December 2023

The use of economic valuation techniques is internationally accepted for determining arm’s length transfer prices. For the intra-group transfer of brands, the relief-from-royalty method often results in the most reliable arm’s length prices, and international alignment can now be observed for the choice of valuation parameters.
The Netherlands Has Not Turned a Blind Eye towards the International Debate Regarding Tax Planning
Authors: Schrievers P.T.F. , Vogel J. (Joost)
Published: December 2023

In response to the international debate on base erosion and profit
shifting, the Netherlands has introduced several measures that focus on
improving transparency. In this article, the authors discuss these measures and
also clarify the Netherlands position. The authors also comment on the
Netherlands parliamentary discussions on the Commission’s proposal of 25
November 2013 to amend the EU Parent-Subsidiary Directive.
Making the Mutual Agreement Procedure More Effective in Greece: A Commentary on the Guidelines for the Conduct of MAPs
Authors: Perrou K.
Published: December 2023

In October 2020, the Greek Independent Authority for Public Revenue published a new decision, Decision A. 1226/2020, amending the guidelines for the conduct of the mutual agreement procedure (MAP) under tax treaties. The amendments were necessary in view of certain recent changes in the domestic legislation affecting MAPs under tax treaties, as well as the ongoing peer review exercise and recommendations under the OECD’s BEPS Action 14.
Creation of Technological Borders – A New Barrier to EU Trade
Authors: Ruohola T.
Published: December 2023

Creating new tax legislation is always a complex process in which stakeholders need to be heard and changes widely discussed. As the pandemic has forced us to be far away from each other, we are facing new challenges. In this Column, the author states that it is now time to choose: a less functioning common market with several different domestic reporting regimes, or working towards a common goal.
Business Restructurings: A Case Analysis and Regulations Applicable to
Business Restructurings
Authors: Wang J. (Jingyi)
Published: December 2023

The author analyses known details of a recent transfer pricing case
involving an adjustment imposed with regard to a business restructuring.
Current OECD guidance and Chinese regulations are also considered. Suggestions
are provided for drafting Chinese business restructuring regulations.
Practical Information on European VAT
Authors: Annacondia F.
Published: December 2023

As is traditional in the first issue of each year, this overview presents the key features of the VAT systems of most European countries (both EU and non-EU), including standard and reduced VAT rates, various thresholds, the format of the VAT identification numbers and contact details of the offices of the national tax administration which process VAT refund applications or provide information to non-resident businesses on national VAT rules. The overview is compiled by the editor on the basis of information provided by the members of the European Knowledge Group of IBFD and the International VAT Monitor’s correspondents at the beginning of 2019.
Transfer Pricing in the Edtech Industry
Authors: Bilaney S.K.
Published: December 2023

The edtech/e-learning sector achieved astronomical growth and witnessed significant funding and expansion in 2020. With the growth in this sector, business models have evolved. In this article, the author analyses the edtech industry, its ecosystem, key value drivers and operating model. This analysis is followed by guidance on a plausible transfer pricing policy that may be considered under different models.
Taxation of Digitalized Economy – Proposed UN Solution
Authors: Rawal R.
Published: December 2023

The first draft of new Article 12B – Income from Automated Digital Services was recently released by the UN Tax Committee. This article contains an analysis of the proposed article 12B.
E-Commerce and Tax – An Australian Perspective
Authors: Box J.
Published: December 2023

E-commerce has seen a tremendous growth in the last 15 years and
provides unique challenges to tax authorities today. The author outlines the
challenges thrown up by e-commerce including the various businesses and
services affected before going into the key tax issues and how tax authorities
may deal with these issues.
The Taxation of Trusts in Hong Kong
Authors: Mariani S.
Published: December 2023

The question of to what extent, if at all, trusts are taxable in Hong Kong is regularly raised and debated in both academic and professional circles. In light of the increasing interest in Hong Kong as a jurisdiction in which to establish trusts and develop wealth and estate planning solutions, there is a greater need than ever for certainty on how exactly a trust is taxed in Hong Kong and its domestic and international implications both for trustees and beneficiaries. This article aims to provide an overview of the law in Hong Kong and evaluate different analytical approaches to the question, before proposing a clear, elegant solution consistent with the statutory schema of the Inland Revenue Ordinance and common law decided authorities.
Brand Valuation in Business Practice – Part 2
Authors: Lagarden M.
Published: December 2023

This article presents the research design and results of a recent empirical study on brand valuation practice in Europe. Moreover, concise recommendations and practical advice for managers and tax authorities considering monetary brand valuation are provided, together with a summary of main study findings. Part 1 of this article, providing an introduction to the topic (section 1.) and critical literature review (section 2.), was published in the previous issue of the International Transfer Pricing Journal.
Luxembourg Following the Recent Fiat/Chrysler (T-755/15 and T-759/15) Decision
Authors: Vasić S.
Published: December 2023

In this article, the author examines the illegal State aid case against Luxembourg and Fiat Chrysler Finance Europe.
New Rules to Resolve Tax Disputes
Authors: Oosterhoff D.
Published: December 2023

On 10 October 2017, the ECOFIN Council adopted new rules to better resolve tax disputes. The new rules will give taxpayers seeking resolution for double taxation issues much more certainty and therefore provide a clearly improved dispute resolution mechanism. This article discusses both the new rules and the EU Directive proposed in 2016 that preceded them.
The Canon of Ejusdem Generis – A Useful Servant or a Bad Master for the Pakistani Income Tax Statute?
Authors: Memon N.
Published: December 2023

This article deals with the application of ejusdem generis – a canon of statutory interpretation – in Pakistan, a jurisdiction without codified canons of interpretation. The author examines the difficulties faced by Pakistani superior courts in applying the ejusdem generis doctrine in the context of the Income Tax Ordinance 2001. The article also examines various enumerative and exhaustive definition provisions of the Ordinance for applicability of the ejusdem generis principle to ascertain the scope of the defined terms. The author finds that the courts in Pakistan have been able to use, albeit with some difficulties, the ejusdem generis rule to determine the intent of provisions in the Ordinance. However, he concludes that legislature needs to be aware of canons of interpretation when drafting enactments, to ensure that their real purpose is secured.
GST on Goods in Singapore’s Open Economy
Authors: Poh E.H.
Published: December 2023

Singapore, which is highly dependent on international trade, has taken various measures aimed at ensuring that its GST system does not form an obstacle to its economic development and that non-resident businesses do not incur the burden of non-recoverable GST in their commercial relationships with businesses in Singapore. In this article, the author describes the special features of Singapore’s GST system.
Slicing the Pie in Latin America – A Pragmatic Approach to a Value Chain Analysis
Authors: Huibregtse S. , Muñoz Rodríguez S.C.
Published: December 2023

This article considers the use of a value chain analysis in a Latin American context, with an emphasis on the adoption of a pragmatic approach to the use of this technique with regard to transfer pricing issues.
Implementation of the ATAD Rules on Controlled Foreign Companies – A Nordic Member State Perspective
Authors: Koerver Schmidt P. , Kleist D. , Lindgren J.
Published: December 2023

This article analyses the implementation of the controlled foreign company (CFC) rules in the ATAD in the Nordic Member States. In addition to comparing the amended CFC regimes of Sweden, Finland and Denmark, the authors discuss their relationship with EU primary law and the expected impact of the OECD’s work on Pillar Two. Although material differences between the CFC regimes still exist, the authors find the ATAD to be a step in the right direction.
Limitation on Benefits Clauses and EU Law
Authors: Calejo Guerra J.
Published: December 2023

Limitation on Benefits clauses have been a feature of tax treaties entered into by the United States and various Member States in recent decades in an effort to prevent treaty shopping. In this article, the author examines their compatibility with EU law through an analysis of existing ECJ case law. After concluding that LOB clauses are in violation of EU law, the consequences of such incompatibility are analysed.
Direct Lending by Alternative Investment Funds: The Italian Regulatory and Tax Framework
Authors: Salvadori di Wiesenhoff V. , Meschia G.
Published: December 2023

Italy has a comprehensive set of regulations that allows direct lending by alternative capital providers, which include Italian and EU alternative investment funds. This article outlines the conditions and formalities that these funds must satisfy before engaging in lending transactions in Italy, along with the applicable tax regime.
Parliament
Authors: Xygka A.
Published: December 2023

This overview highlights the Parliament’s adoption of (i) a resolution on further reform of corporate taxation rules; (ii) a report on EU treaties reform; (iii) a resolution on the role of tax policy in times of crisis; (iv) an opinion approving package for NextGeneration of own resources with few amendments; and discussion of (v) a draft report proposing amendments to FASTER.
Triangular Cases in Tax Treaties
Authors: Kosters L.F.
Published: December 2023

The author discusses the issue of "triangular" situations in tax treaties, i.e. cases that involve three different states, and identifies four possible scenarios. The applicability of the domestic legislation of the states involved and the OECD Model Convention is also examined.
Report on the EU Tax
Law Group Meeting Held in Lisbon on 20 June 2008
Authors: Brabants Joke
Published: December 2023

This note reports on the fifth meeting of the EU Tax
Law Group, at which various topics of interest to EU practitioners were
discussed.
Recent Tax Developments
Authors: Fichtinger C.
Published: December 2023

This article outlines a number of recent Austrian tax developments, including an amendment of the interim tax regime for private foundations, new rules concerning exit taxation and the new Transfer Pricing Documentation Law.
Mandatory Automatic Exchange of Information on Tax Rulings: Political Agreement Reached in ECOFIN Council
Authors: Van Stappen D. , Oepen W. (Wolfgang) , Molla E.
Published: December 2023

This article focuses on the proposed EU framework for the mandatory exchange of information on tax rulings, as defined by the ECOFIN Council on 6 October 2015. Given the parallel nature of the transparency element of BEPS Action 5, some comments thereon are also included.
Asia’s Leading Holding Company Jurisdictions – Hong Kong, Malaysia and Singapore’s Fight for Global Business
Authors: Kaur D.
Published: December 2023

The author compares three of the most popular holding company regimes in Asia, i.e. Hong Kong, Malaysia and Singapore, in addition to covering significant anti-avoidance developments relevant to cross-border activities in the region. The article concludes with a summary of the main strengths and weaknesses of each of the three jurisdictions in relation to holding companies.
Symposium on Cross-Border Information
Authors: Offermanns R.
Published: December 2023

In this note, the author reports on a symposium held on 5 February 2015 in Amsterdam on international, OECD and Netherlands aspects of cross-border information exchange.
Overview of General Turnover Taxes and Tax Rates
Authors: Annacondia F. , Corput W. van der
Published: December 2023

Almost all countries levy a general turnover tax, i.e. a tax on essentially all goods and services supplied by manufacturers, traders and service providers. Those turnover taxes are mostly levied under a VAT type of tax system and, in a decreasing number of cases, as a multi or single-stage (retail) tax. This take-out section presents an overview of those turnover taxes and the tax rates applicable on 1 January 2011.
Tax treatment of financial instruments
Authors: Villagra Cayamana R.A.
Published: December 2023

In 2007, Peru introduced specific legislation regarding the tax
treatment of financial derivates. This article presents a general description
of some of the key features of the tax treatment of financial instruments,
highlighting the amendments introduced by Law 29306. The focus here is
particularly on the sourcing rule and the so-called efficacy ratio.
Technology and Tax Administration Control in Latin America
Authors: Zambrano R. , Arias E. Isaác G.
Published: December 2023

The use of information technology supports the activities of tax administrations in different processes. This article describes successful initiatives in the use of IT for control purposes in some Latin American administrations.
The Effect of the OECD Base Erosion and Profit Shifting Action Plan on Developing Countries
Authors: Wagenaar L.
Published: December 2023

In this article, the author describes some of the typical features of tax systems of developing countries and discusses how the OECD Base Erosion and Profit Shifting Initiative affects such countries and their tax systems.
Full Federal Court Upholds Transfer Pricing Adjustments on Interest Charged on Intra-Group Loans
Authors: Gupta G.
Published: December 2023

This case note explains the recent Full Federal Court of Australia judgment in Chevron Australia Holdings Pty Ltd v. Commissioner of Taxation, in which the Court upheld on appeal the Commissioner’s transfer pricing adjustments in respect of the interest rate charged on intra-group loans.
2022 State Budget: Economic Recovery of Families Top Priority
Authors: Moniz R. Botelho
Published: December 2023

In this note, the author discusses the drama leading up to approval of the 2022 State Budget, which is focused on the economic recovery of families.
New Regime for Family Offices – Is Tax Certainty Included in the Package?
Authors: Sofrona L-E.
Published: December 2023

Greece recently introduced a new incentive regime to encourage the establishment of family offices. In this article, the author presents the main aspects of the regime, outlines key tax considerations and reflects on whether the regime serves its purported purpose, which is to establish an attractive framework for high-net-worth individual economic activity in Greece that also provides tax certainty.
VAT on Financial and Insurance Services at the Dawn of the Fourth Industrial Revolution
Authors: Beretta G.
Published: December 2023

The application of advances in innovation and communication technology (ICT), which underpin the Fourth Industrial Revolution, and the advent of new players like tech and e-commerce companies are reshaping the financial and insurance sectors, contributing to redefine existing boundaries in both industries. Although both these phenomena offer a wealth of fresh opportunities for businesses and consumers alike, VAT liabilities for taxable persons operating in the financial and insurance sectors may constitute a hindrance to the ongoing change. In this article, the author examines the main areas in which such a change is most visible and seeks to assess the potential VAT issues that may materialize in each of these domains.
Transfer Pricing Analysis: The Case of a Manufacturing Company
Authors: Pereira M. (Martha) , Zambujal-Oliveira J.
Published: December 2023

This article investigates, in the form of a case study, the transfer pricing system of a multinational enterprise, considering the management control role in an international context where compliance with tax regulations is required. The analysis reveals that organizational structure, degree of decentralization and type of responsibility centres all impact the effectiveness of a transfer pricing system. Based on the case observations and a review of related literature, it is possible to draw a more general framework on transfer pricing in the context of cross-border transactions.
Recent Developments in the German Tax Treatment of CFCs
Authors: Weiss M.
Published: December 2023

This note describes the tax treatment of controlled foreign companies (CFCs) under German tax legislation and case law. In a recent decision of the German Federal Tax Court, the taxpayer was not required to pay trade tax on CFC income, thus altering the tax consequences of CFC income significantly. This decision has aligned the German tax treatment of CFCs with that of foreign permanent establishments, the income of which is also not subject to trade tax.
The Taxpayer's Rights in the Courtroom
Authors: Thyness E.
Published: December 2023

This article outlines the ways in which taxpayers may challenge tax assessments in Norway.
2012 Update to the OECD Model (2010): Exchange of Information for
Non-Tax Purposes
Authors: Öner C.
Published: December 2023

In this note, the author critically analyses a recent amendment to
article 26 of the OECD Model (2010), which allows for the exchange of
information for non-tax purposes under certain conditions. The effects of this
amendment and whether or not it is appropriate are examined.
Head Office Taxation Rules and Simplification of Compliance Costs of SMEs
Authors: Nogueira J.F. Pinto
Published: December 2023

This study performs a legal assessment of the proposed Directive on Head Office Taxation, and puts forward alternatives to overcome the identified concerns. It is structured around the building blocks of the proposal: (i) scope; (ii) access to the regime; (iii) substantive tax rules; and (iv) procedural tax rules. The study concludes with policy considerations on the proposed Directive’s impact on the strengthening of the European Union’s internal market.
Deductibility of Interest and Royalties Restricted: Is Austria a BEPS
Role Model?
Authors: Peyerl H.
Published: December 2023

In response to the OECD BEPS Action Plan, Austria, by means of its
2014 Tax Reform Act, eliminated the possibility to deduct interest and royalty
payments within a group of companies where the receiving company is taxed at a
tax rate that is lower than 10%. This note examines the effects of this new
provision and the questions arising therefrom with regard to tax treaties and
EU law.
The Development Aspects of Special Tax Zones
Authors: Laukkanen Antti
Published: December 2023

This article compares special tax zones (STZs) from an economic and political perspective and examines the related tax issues. The approach is to outline a framework for the examination of STZs rather than present a detailed analysis of the taxation of individual STZs and jurisdictions.
Tax Treaty Case Law News
Authors: Arnold B.J.
Published: December 2023

In this Tax Treaty Case Law News, Brian Arnold reviews three recent tax cases involving decisions regarding hybrid entities and relief for international double taxation, the use of an Austrian private foundation as a Canadian treaty shopping vehicle, and the tax problems of a well-known professional golfer.
Taxation of Business Alliances in India: A Practitioner’s Guide
Authors: Sen R.
Published: December 2023

The author, in this article, explains the principles underlying the tax treatment of strategic business alliances in India through a list of explanatory criteria. These may be used by practitioners to anticipate the tax consequences of potential strategic business alliances and to ensure that a predetermined outcome is obtained.
Malta and the Hybrid Loan Amendment to the EU Parent-Subsidiary Directive
Authors: Vroom A.
Published: December 2023

This article focuses on developments surrounding the hybrid loan amendment to the Parent-Subsidiary Directive (2011/96) and why this amendment may conflict with certain core principles of taxation in Malta.
Court of Justice
Authors: Alvarado M.
Published: December 2023

This overview highlights the ECJ’s decision denying a refund of dividend withholding tax by a Member State to a non-resident investment fund.
Structuring Investments into Cambodia
Authors: Hayward L.
Published: December 2023

Cambodia has been largely overshadowed by the dynamic growth of its neighbour Vietnam. However, with growing investor interest in Cambodia, this article provides a timely guide for potential investors on the corporate tax structure and investment environment in Cambodia.
Experience with the New Transfer Pricing Documentation Requirement
Authors: Douvier P-J. , Daluzeau X.
Published: December 2023

At the end of 2013, enterprises established in France and subject to the obligation to prepare transfer pricing documentation prior to a tax audit, became also obliged to file annually a declaration of their transfer pricing policy. The authors offer guidance on how to fulfil this obligation and consider practical issues related to the new obligation.
The Brazilian “Sixth Method” and BEPS Action 10: Transfer Pricing Control on Commodity Transactions
Authors: Gomes M. , Mansur D.
Published: December 2023

Aggressive tax planning, i.e. the act of sending profits to low-tax jurisdictions, is a reality. All countries in which significant economic activities are carried out make an effort to fight against it, using instruments such as transfer pricing rules, as well as those defined in the OECD Action Plan on Base Erosion and Profit Shifting (BEPS). The legal control of transfer pricing over commodity transactions represents a special challenge for developing countries – traditional commodity traders – for which such transactions constitute a significant source of revenue. This revenue comes not only from the trade transactions, but also from their taxation. This article aims to analyse the Brazilian “sixth method” for transfer pricing in commodity transactions in comparison with the guidelines established by Action 10 of the OECD BEPS Project. The goal is to determine whether Brazilian legislation is in line with the guidelines provided by the OECD, mainly with regard to compliance with the prestigious arm’s length standard as a criterion for allocating profits in transactions between related parties, and whether Brazilian legislation is efficient in its final scope for combating base erosion.
Commission
Authors: Xygka A.
Published: December 2023

This overview highlights the Commission’s (i) welcoming of the completion of the “Fit for 55” legislation package; (ii) closing of infringement procedures against Bulgaria, Czech Republic and Lithuania concerning their structure of excise duties on alcohol; (iii) closing of infringement procedures against Croatia and Lithuania concerning their transposition of the Excise Framework Directive; (iv) closing of infringement procedures against Romania, Luxembourg, Italy and Lithuania regarding the transposition of DAC7 into national law; and (v) approval of French scheme to foster cooperation in the agricultural sector.
Numerous EU Member States are in Breach of EU Law by Requiring Taxpayers to Demonstrate Absence of Abuse
Authors: Ravelli A.W. , Franconi F.
Published: December 2023

Rules intended to prevent tax avoidance often place the burden of proof on the taxpayer. Such an allocation of the burden of proof is incompatible with the case law of the Court of Justice of the European Union (ECJ). In this article, the authors provide examples of Netherlands and Italian tax laws that are in breach of the allocation of the burden of proof as prescribed by the ECJ. As these examples concern types of rules applied in other EU Member States, the authors expect that there will be similar issues in many other EU Member States.
Transfer Pricing under the New BEPS Paradigm: A Korean Perspective
Authors: Kim B.J.
Published: December 2023

In this article, the author considers how BEPS Actions 8, 9, 10 and 13 impact upon Korea’s transfer pricing law and practice. The article examines existing Korean transfer pricing legislation and case law, and focuses on the arm’s length principle and risks, intangibles, low value-adding intra-group services and cost contribution arrangements, from a Korean perspective.
VAT registration thresholds in Europe
Authors: Annacondia F. , Corput W. van der
Published: December 2023

As is traditional in the sixth issue of each year, in this issue of
the International VAT Monitor, the editors present an overview of the VAT
thresholds in most European (both EU and non-EU) countries. In order to allow
comparison, all national thresholds expressed in currencies other than the euro
have been converted into euro. The overview, which is based on information
provided by our correspondents, reflects the situation in October 2009
supplemented with announced amendments entering into force on 1 January
2010.
2008 OECD Model : changes to the Commentary on Article 5 regarding the
treatment of services : more choices, less clarity
Authors: Dunahoo C.A. , Sprague G.D.
Published: December 2023

This article examines the changes made by the 2008 Update of the OECD
Model to the Commentary on Art. 5 regarding the treatment of services. The
article summarizes the new Commentary on the provision of cross-border services
and discusses the OECD's apparently growing practice, and its potentially
far-reaching implications, of including alternative positions in the
Commentaries. The article also discusses specific technical issues that may
arise in connection with the "Services PE" alternative in the new Commentary.
Finally, the article raises the question whether the alternative provision is
part of a broader erosion of the historic OECD permanent establishment standard
and, if so, whether further reflection by the OECD member countries would be
well-advised.
Coke Concentrate: A Recipe for Understanding the IRS’s Biggest Win in 40 Years
Authors: Armitage J.C. , Schafroth H.D. , Stevens E.J. , Rosenbloom H.D.
Published: December 2023

The US Tax Court’s opinion in The Coca-Cola Company & Subsidiaries v. Commissioner changes the direction of US transfer pricing jurisprudence. The authors explain the critical factual and legal determinations that allowed the court to reach its conclusions.
New Transfer Pricing Regime
Authors: Amos J.
Published: December 2023

On 31 July 2012, Ghana became the latest sub-Saharan African country
to publish regulations governing the application of the basic transfer pricing
provision contained in the main income tax law. This article reviews and
comments on the details of these regulations.
Aspects of the 2010 Update Other than Those Relating to Article 7 of the OECD Model Tax Convention
Authors: Barret E.
Published: December 2023

In addition to the new Art. 7 of the OECD Model Tax Convention and the related Commentary changes discussed elsewhere in this issue of the Bulletin for International Taxation, the 2010 Update makes a number of other significant amendments to the Commentaries. This article describes these changes and the guidance they provide.
Promoting the Concept of Tax Governance
Authors: Thiagarajah L.
Published: December 2023

This article advances a novel concept of tax governance. Contrary to the conventional view that corporate governance promotes good tax practises, the hypothesis is that tax laws promote good corporate governance practices. Although the hypothesis is based on Malaysian law, it should be of interest to policymakers and practitioners worldwide.
The ECJ’s Danish Cases and the Spanish Withholding Tax Exemption in Respect of Interest Payments to EU Lenders: Some Reflections and Practical Implications
Authors: Sánchez de Castro Martín-Luengo E.
Published: December 2023

In this article, the author addresses the impact of the ECJ’s decision in N Luxembourg (Joined Cases C-115/16, C-118/16, C-119/16 and C-299/16) on the Spanish domestic rule granting a withholding tax exemption in respect of interest payments to EU lenders.
Exchange of Information To Become a Key Element in Multilateral Cooperation
Authors: Lermer D. , Pinnock S.
Published: December 2023

The authors consider recent developments in Southern Africa, especially in South Africa, regarding transfer pricing documentation and exchange of information.
Global Tax Policy Post-BEPS and the Perils of the Silk Road
Authors: Tavares R.J.S. , Owens J.P.
Published: December 2023

This article addresses the implications of the OECD’s BEPS proposals for investment in, and the growth of, Asian economies. The authors argue that, in the post-BEPS world, Asian countries should adopt international coordination and cooperation, expand their permanent establishment rules and broaden their interpretations of the arm’s length principle to their best economic advantage, rather than unilaterally and incoherently over-implementing the new anti-BEPS weapons.
An expanded version of this article appears in S. Sim and M.J. Soo eds., Asian Voices: BEPS and Beyond (IBFD 2017 (or forthcoming)).
World Trade Organization Finding on Anti-Avoidance Measures To Counter Foreign Preferential Tax Regimes versus the Free Flow of Capital and Investment
Authors: Ramirez G.
Published: December 2023

This article considers the tax implications of the dispute brought before the World Trade Organization by Panama in relation to measures implemented by Argentina in response to the OECD/G20 Base Erosion and Profit Shifting initiative.
Mandatory Binding Tax Arbitration: From Sovereign Rights to Sovereign Duties
Authors: Issakova S.
Published: December 2023

In this note, the author clarifies the position of Kazakhstan on tax arbitration as a supplementary dispute resolution mechanism (DSM) in light of the recent peer review results under Action 14 of the OECD/G20 BEPS Project.
Changes in Transfer Pricing Documentation and Reporting Rules
Authors: Jamroży M.
Published: December 2023

The main goal of this article is to analyse and evaluate the legislative changes in the area of transfer pricing in Poland between 2021 and 2023. Numerous changes are expected to reduce the compliance burden for, in particular, small and medium-sized enterprises.
Sports under EU VAT
Authors: Swinkels J.J.P.
Published: December 2023

In this article, the author discusses the vagueness of the scope of the VAT exemption for sports under EU law, not only on account of the lack of clarity about the concept of sports, but also on account of the scope of the exemption, as interpreted by the ECJ. The author also indicates that the combination of the exemption for sports and the reduced rate that may be applied to the use of sporting facilities may give rise to VAT-reducing schemes.
Bank Asset Funds: General Regulatory Provisions and Tax Regime
Authors: Remón Peñalver F. , Mayo Rodriguez C.
Published: December 2023

In the context of the restructuring and recapitalization of the
Spanish banking sector, the Spanish authorities, in addition to other measures
such as increasing minimum capital requirements and reorganizing the savings
bank sector, have established the structure and characteristics of the ad hoc
asset management company (SAREB) for assets arising from bank restructuring.
This article analyses the tax regime applicable to bank asset funds and the tax
treatment of investments in this new investment vehicle.
The Deceptive Allure of Taxing “Residual Profits”
Authors: Shay S.E.
Published: December 2023

This article outlines the traditional justifications for a residual profits business tax base and evaluates its role in the OECD/G20 Pillar One proposal to allocate income to market countries. The article concludes that basing the allocation of profits to market countries on multinationals’ residual profits would be inferior to allocating a portion of total corporate profits.
Taxing Time for Cryptocurrencies
Authors: Bilaney S.
Published: December 2023

Regulators in many countries, including India, view cryptocurrencies as a combination of a bubble and a Ponzi scheme. The Reserve Bank of India has taken steps to dissuade Indian citizens from dealing in cryptocurrencies. However, last year’s surge in the price of cryptocurrencies has lured many taxpayers into investing or trading in it. Not only is a tussle relating to the fate of cryptocurrencies in India pending before the Indian Supreme Court, the income tax implications of cryptocurrencies are also looming. This article analyses the plausible income tax implications of dealing in cryptocurrencies in India.
State Aid Issues Regarding National Digital Taxes
Authors: Kirchmayr S. , Geringer S.
Published: December 2023

In the aftermath of the struggle to carve out a proposal for fair taxation of the digital economy, several EU Member States pushed forward and decided unilaterally to introduce national interim measures to grab a fair share of the tax revenue pie. The aim of this article is to shed light on State aid issues arising from the introduction of national digital services and advertising taxes.
Opinion Statement ECJ-TF 2/2022 on the Decision of 27 January 2022 in European Commission v. Kingdom of Spain (Form 720) (Case C-788/19)
Authors: Kofler G. , Garcia Prats F.A. , Haslehner W. , Heydt V. , Kemmeren E. , Lang M. , Nogueira J. , HJI Panayi C. , Raventós-Calvo S. , Richelle I. , Rust A. , Shiers R.
Published: December 2023

In this CFE Opinion Statement, the CFE ECJ Task Force comments on the decision of 27 January 2022 in European Commission v. Kingdom of Spain (Form 720) (Case C-788/19) on the lack of proportionality of the consequences derived from the failure to provide information concerning assets or rights held in other Member States of the European Union or the European Economic Area.
Improper Use of Tax Treaties: The New Commentary on Article 1 and the Amended Article 13(5)
Authors: Baker P. , Liao T.
Published: December 2023

The UN Model (2011) contains a new section in the Commentary on Article 1 regarding the improper use of tax treaties. An example of potential abuse of a treaty provision is dealt with by amendments to article 13(5). This article, therefore, discusses both the new Commentary and article 13(5).
Interpretation of subject-to-tax clauses in Belgium's tax treaties :
critical analysis of the "exemption vaut impôt" doctrine
Authors: De Broe L. , Bammens N.
Published: December 2023

This article examines the interpretation of the subject-to-tax clauses
in Belgium's tax treaties. The interpretation of these clauses gives rise to
substantial difficulties in practice because of the "exemption vaut impôt"
doctrine. The article argues that the application of this doctrine, when
interpreting the treaty relief provisions containing the expression "income
that is taxed in the other State", leads to the same result as applying the
Commentary when interpreting Art. 23 of the OECD Model, which contains the
expression "income which ... may be taxed in the other Contracting State".
Consequently, it is submitted that the application of the "exemption vaut
impôt" doctrine should be rejected when interpreting a tax treaty containing
the "is taxed" language.
The Italian Abuse of Law Doctrine for Taxation Purposes
Authors: Fantozzi A. , Mameli G.
Published: December 2023

The authors, in this article, review recent developments in Italian Supreme Court case law regarding the abuse of law doctrine and its use for taxation purposes, and conclude that clarification and a reduction in the scope of this judicial doctrine in Italian law is required.