bluuebunny/crossref_metadata_2025 huggingface dataset:
The Tax State Aid Investigations, and the Role of Economic and Financial Analysis
Authors: Robins N.
Published: December 2023

In August 2016, the European Commission announced its largest-ever aid recovery order, requiring Apple to repay EUR 13 billion as a result of its tax arrangements in Ireland. This landmark tax State aid decision followed aid recovery orders faced by Starbucks in the Netherlands, Fiat Finance and Trade in Luxembourg, and 35 other multinationals in Belgium under the “excess profit” scheme. As it has been reported that a large number of tax rulings are under review, companies’ tax arrangements face an unprecedented level of State aid scrutiny. This article provides an overview of the State aid framework and procedure, reviews the status of the ongoing tax State aid investigations, highlights the key economic issues raised by the Commission in the Apple case, and discusses how an economic and financial analysis can help companies mitigate future State aid risks, in light of the importance of ensuring that tax arrangements are State aid-compliant.
Base Erosion and Profit Shifting: A Roadmap for Reform – Tax Arbitrage
with Hybrid Instruments
Authors: Edge S.
Published: December 2023

This article considers the interaction between the OECD BEPS
initiative on tax arbitrage with hybrid instruments and domestic measures that
either create the potential for mismatches or already address the issues that
arise. The article examines the relevant philosophical and practical issues
regarding this topic and suggests some potential solutions.
Never Waste a Good Crisis: Turning the EU VAT System into a Win-Win-Win
Authors: Lejeune I.
Published: December 2023

After the current COVID-19, crisis the contribution of VAT to the EU Member States’ budget will be crucial. Maximizing the collection of VAT at the lowest cost of compliance for businesses will be key, although it might not be enough to finance the recovery. So why just focus on burden reduction and the definitive VAT system? Let us instead take a strategic long-term approach and redesign the EU VAT system into a best practice, taking a holistic approach: a win-win-win for all stakeholders.
A Construction Consortium as a Permanent Establishment from an International Tax Law Perspective: Inconsistencies and Deficiencies in Article 5(3) of the OECD Model and Commentary
Authors: Lewicki T.
Published: December 2023

In this article, the author considers key difficulties in the interpretation and application of article 5(3), in conjunction with article 7, of the OECD Model regarding the taxation of a non-resident investor forming a joint-venture with a resident enterprise to undertake a substantial construction or infrastructure project in the latter’s residence state.
The Impact of the New Preamble on the Interpretation of Old and New Treaties and on the Policy of Abuse Prevention
Authors: Schwarz J.
Published: December 2023

This article examines the effect of the new preamble to tax treaties introduced into existing tax treaties by the OECD Multilateral Instrument and in tax treaties that follow the OECD and UN Models (2017) with regard to preventing abuse, by reference to relevant case law.
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 2012 supplemented with announced amendments entering into force on 1 January 2013.
Income Tax Accounting for Business Combinations
Authors: Lee Andrew
Published: December 2023

The author, in this article, considers some of the significant issues
and developments with regard to tax accounting for business combinations, with
specific reference to new rules contained in International Financial Reporting
Standard 3, Revised.
External Factors in Tax Policy: International Obligations
Authors: Kaur D. , Kosters L.F.
Published: December 2023

The authors, in this article, review the effect of international obligations on national tax policy, with specific reference to World Trade Organization rules, free trade agreements, investment protection agreements and tax treaties.
Tax Treatment of Securitizations of Credit Assets
Authors: Tang J.
Published: December 2023

The author considers many facets of the securitization of credit assets in China, especially the tax treatment of the parties in such a transaction.
Taxation of Interstate Transactions under the Proposed Indian GST
Authors: Madhavan S. , Renavikar R. , Arawattigi P.W.
Published: December 2023

India is on the eve of a major reform of its indirect tax system. The reform will result in the replacement of a large number of central taxes by a central GST, and of the current state VAT by state GST, which is more than a change of the name of the tax. In this article, the authors specifically discuss the method of taxing interstate supplies of goods and services, which, under the most recent proposals, will be subject to integrated GST.
Brazilian Taxation of Offshore Personal Investments: Recent Trends and Challenges in the Aftermath of the Voluntary Disclosure Programme
Authors: Rubinstein F. , Vettori G.G.
Published: December 2023

This article analyses the Brazilian compliance and tax implications of outbound portfolio investments made by Brazilian resident individuals, a timely and relevant issue in the aftermath of the recent of the Brazilian voluntary disclosure programme. The article compares the specific rules applicable to direct ownership of financial assets as opposed to personal investment companies.
Chain Transactions, the Temporal Criterion and Article 36a – Old Solutions to New Problems?
Authors: Bengtsson J.
Published: December 2023

A new article 36a of the VAT Directive has been introduced to clarify the VAT treatment of chain transactions. However, the rules for chain transactions involving intra-Community supplies are complex and have given rise to several questions. In this article, the author examines how this new provision interplays with the “temporal criterion” emerging from the ECJ case law.
New European Legislation on Anti-Money Laundering
Authors: Snijder-Kuipers B. , Pellegrin G. , Foucher G. de , Savigliano A. , Schmies C. , Locmele K. , Bradley E. (Emily) , Velez M. , Nunes R. Cardoso
Published: December 2023

The European Commission has presented a new set of legislative proposals to strengthen the European Union’s anti-money laundering and countering terrorism financing (AML/CFT) rules. This proposal is scheduled for implementation in 2026. A new European supervisor, the AML Authority, will be introduced and a single rulebook will be created. The present AML Directive will be replaced by a new Directive and the regulation on crypto assets will be revised. The main changes resulting from this proposal in France, Germany, Italy, the Netherlands, Portugal, Spain and the United Kingdom will be discussed.
The Société Générale Decision: ECJ Assesses Dutch Withholding Tax on Dividends of Non-Resident Corporate Portfolio Investors
Authors: Smit D.S.
Published: December 2023

The levying of dividend withholding tax on foreign shareholders is a topic of great importance throughout Europe. The recent decision in Société Générale by the Court of Justice of the European Union confirms that a foreign corporate shareholder should effectively not be taxed more heavily than a comparable domestic shareholder. On balance, however, one could wonder whether the outcome in this case is not just a mere Pyrrhic victory for corporate non-resident shareholders having portfolio investments in the Netherlands.
Withholding Tax
Exemption and Right to Usufruct Shares in a Subsidiary Company
Authors: Świtała Filip
Published: December 2023

The author, in this note, considers the contrasting
decisions reached by the European Court of Justice in Les
Vergers du Vieux Tauves and the Lublin District Administrative Court in
a Polish case in which the facts were similar.
Opinion Statement of the CFE on the Decision of the European Court of
Justice of 10 February 2011 in Joined Cases C-436/08 and C-437/08,
Haribo and Österreichische Salinen,
and the Tax Treatment of Inbound Dividends in the European Union and in
Relations with EEA and Third Countries
Authors: Confédération Fiscale Européenne
Published: December 2023

This is an Opinion Statement prepared by the ECJ Task Force
The members of the Task Force are: Axel Cordewener, Kelly
Stricklin-Coutinho, Paul Farmer, Daniel Gutmann, Volker Heydt, Michael Lang,
Franck Le Mentec, Pasquale Pistone, Albert Raedler, Stella Raventos-Calvo
(Chair), Isabelle Richelle and Friedrich Roedler. The views expressed in this
statement do not necessarily represent the views of each individual member of
the Task Force or of organisations with which any of the members are
associated. of the CFE, the leading European federation of tax
advisers with 33 tax adviser organisations from 24 European countries
representing over 180,000 tax practitioners.
Risk Capital Incentives, a Risky Business?
Authors: Brokelind C.
Published: December 2023

In this article, the author discusses the impact of the State aid rules on tax incentives for individual taxpayers to invest in companies that governments, in particular Sweden, have proposed to implement in order to boost the economy as a result of the economic crisis.
How to Deal with Affiliation in Interpreting the Arm’s Length Principle: The GE Case Reviewed
Authors: Kamphuis E.
Published: December 2023

The ruling of the Tax Court of Canada in the General Electric case considers the affiliation benefit in the context of the comparability framework. From within this framework it should be decided whether the affiliation benefit would materially affect the condition examined in the transfer pricing method. If so, the affiliation benefit as defined in the ruling would not be shared. The impact hereof would go beyond the controlled guarantee transactions that the ruling deals with. However, due to the appeal that has been lodged in the case, it is too soon to tell whether the comparability framework continues to apply (at least in Canada).
The ECJ Decision in Timac Agro (Case C-388/14): Another Properly Shaped Piece in the ECJ’s Tax Loss Puzzle
Authors: Papotti R-A. , Setti C.
Published: December 2023

This article addresses the ECJ’s decision in Timac Agro (Case C-388/14) on the compatibility, with EU law, of a German regime that allowed a German company to deduct losses incurred by its PE in Austria subject to recapture in certain circumstances. The authors integrate the decision into a systematic analysis of the ECJ’s case law in the field of tax losses, which has long been criticized by prominent scholars as being plagued by profound inconsistencies.
Commitment Fee Not Treated as Interest
Authors: Joseph A.
Published: December 2023

The Australian Taxation Office has released an interpretative decision
that clarifies the liability of non-resident lenders to withholding tax in
Australia when a commitment fee is paid by a resident borrower. According to
the decision, no withholding obligation will apply if the payment by the
resident is in relation to the commitment by the lender to lend up to a
pre-agreed limit.
Equity-based compensation : China
Authors: Liu J. , Chen X. (Xiaoming)
Published: December 2023

Part of a comparative survey based on selected papers presented at the
Baker & McKenzie 24th Annual Asia-Pacific Tax Conference held in Kuala
Lumpur, Malaysia on 13 and 14 November 2008. The article considers
deductibility of the related expense, tax treatment of an adjustment of the
related expense before vesting, and tax treatment of cash-settled equity based
compensation.
Identifying Conduit Companies: A Russian Perspective on the Beneficial Ownership Concept
Authors: Tasalov K.
Published: December 2023

The Russian tax authorities, in an attempt to crack down on cross-border tax arrangements involving treaty shopping, assess the beneficial ownership status of the recipient of income. This article addresses the components of the analysis that is carried out in establishing a discrepancy between legal form and economic reality.
Transactions with Hard-to-Value Intangibles: Is BEPS Action 8 Based on the Arm’s Length Principle?
Authors: Fedusiv O.
Published: December 2023

Action 8 claims that the ex post approach is consistent with the arm’s length principle. Based on his analysis in this article, however, the author concludes that the ex post approach may deviate from the arm’s length principle and, consequently, lead to economic double taxation.
Post-acquisition integration - what you need to do? Hong Kong
Authors: Olesnicky M.
Published: December 2023

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

This author, further to an earlier article introducing the UN Model Convention and the nature and work programme of the UN, details the main differences with the OECD Model Convention and the reason for the differences.
High Court Finds Exports to Foreign Associate Not Comparable with Goods Sold in Domestic Market
Authors: Dugar A. , Bhandari L.
Published: December 2023

This case note reviews the High Court decision in Principal Commissioner of Income-tax-5, Pune v. Keihin Fie (P.) Ltd, which held that margins derived on the export of components and parts to an associated enterprise of the taxpayer were not comparable with the margins derived from sales of goods made in the domestic market because the parts and finished goods were not comparable and the classes of customers to which they were sold were different.
Residential Real
Estate Taxation in Europe: Actual Burden on Ownership and Investment
Authors: Borselli F. , Buoncompagni A. , Manestra S.
Published: December 2023

In this article, the authors examine residential real estate taxation
in some European countries. The authors outline the types of direct and
indirect real estate taxes (on owned and rented property and on transactions),
present statistical data to demonstrate the structure of and tax yield from
real estate taxation and offer conclusions regarding the impact of tax policy
on property ownership choices and trade, as well as labour mobility.
The UK General Anti-Avoidance Rule: Transplants and Lessons
Authors: Freedman J.
Published: December 2023

The UK General Anti-Avoidance Rule has been criticized both for being too narrow and too wide. This article examines the origins of the UK GAAR, its wording and evolution, and the use of concepts and phrases transplanted from the United Kingdom and used in the European Union’s ATAD and BEPS Action 6.
Seeking Certainty – Advance Ruling Practices
Authors: Shah, R. (Rohan) , Shah N. (Nishant) , Bhatia P.
Published: December 2023

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

In the Klaus Vogel Lecture of 23 September 2016, hosted by the Institute for Austrian and International Tax Law (WU), Vienna, David Rosenbloom provides his thoughts and observations on the, in his view necessary, reform of the international taxation system of the United States.
VAT Registration Thresholds in Europe
Authors: Annacondia F.
Published: December 2023

As is traditional in the sixth issue of each year, in this issue of the International VAT Monitor an overview is presented of the VAT registration thresholds in most European (both EU and non-EU) countries, applicable in October 2020 and supplemented with announced amendments entering into force on 1 January 2021.
Derivatives based on US estate
Authors: Carman P.
Published: December 2023

A recent ruling by the US Internal Revenue Service may raise issues
about whether derivatives based upon narrow indexes related to US real property
will be taxed as interests in US real property. The result of such
characterization would be US taxation of gains without regard to available
treaty protection.
The Emerging Doctrine of “Commercial Rationality” in Transfer Pricing Inquiries
Authors: Ickeringill T.
Published: December 2023

It is often said that the mere fact that a transaction may not be seen between independent parties does not mean it is not arm's length. However, Australian courts are increasingly insisting on observable market evidence of the “commercial rationality” of a transaction. This article considers the origins of the “commercial rationality” concept in the OECD Guidelines, its emergence as a defining feature of Australian transfer pricing jurisprudence and the practical implications of this for taxpayers.
Arm’s Length Nature of a Transfer Price as the Decisive Criterion for
Compliance with the Arm’s Length Principle (Not Only) in Treaty Cases
Authors: Andresen U. , Kerenyi D.
Published: December 2023

A recent decision of the Federal Tax Court concerned the blocking
effect of article 9 of the OECD Model and its derivatives over the special
conditions developed in prior jurisprudence of the Federal Tax Court.
Towards a “2020s Compromise” in International Business Taxation: Reflections on an Emerging New Tax Paradigm
Authors: Wilde M.F. de
Published: December 2023

This article reflects on the recent developments surrounding the political agreement reached on 8 October 2021 within the Inclusive Framework on a reform of the international business taxation. With this “2020s Compromise” in the making, have we arrived at the solution to the issues involving the taxation of multinational firms?
Further Developments regarding the French Ruling Procedures
Authors: Gibert Bruno , Daluzeau Xavier
Published: December 2023

The authors, in this article, address the primary features of the French ruling procedures, excluding the "audit ruling" procedure, and specifically focus on certain improvements recently introduced into French tax law in respect of the procedures.
Private Tax Rulings in Switzerland
Authors: Niederer C. , Dubach M.
Published: December 2023

The authors, in this article, consider the private tax ruling system in Switzerland, together with the relevant aspects and implications of using the system.
Flat Tax for “New Residents”: A Comparison between the Italian and Portuguese Regimes
Authors: De Vita M.
Published: December 2023

Italy recently introduced a lump-sum substitute tax in lieu of progressive tax rates on foreign-sourced income received by “high net worth individuals” and pensioners transferring their tax residence to Italy. These favourable regimes share common elements with the Portuguese regime for “non-habitual residents”. The aim of this article is to ascertain whether the Portuguese regime for “non-habitual residents” could be implemented in Italy in respect of the taxation of “new residents”.
Cryptocurrency Tax Compliance in the European Union: Reality or Mirage?
Authors: Ahmed M. (Marwan)
Published: December 2023

DAC8 could be a quick fix to cryptocurrency tax evasion. In an ecosystem where pseudo-anonymity is the rule, however, taxpayers are difficult to identify. Unless information can be obtained that links the virtual and real identities of taxpayers, taxation is impossible and even the best thought-out tax rules will be limited in scope. This article, after establishing the cryptocurrency playing field, addresses the limitations of cryptocurrency tax compliance, with an emphasis on the European Union.
Entertainers and Sportspersons Following the Updated OECD Model (2014)
Authors: Molenaar D.
Published: December 2023

The author, in this article, considers various problems arising from the context and history of, and recent developments regarding, article 17 of the OECD Model on entertainers and sportspersons. He suggests a “solution” via a new text for article 17, which is supported by the 2014 Update to the OECD Model.
The Direct Taxes Code’s Proposed Changes to Transfer Pricing Rules and the Anticipated Impact
Authors: Arora T. , Gupta S. (Shikha)
Published: December 2023

The authors analyse the changes proposed in the Direct Taxes Code Bill which will impact the transfer pricing rules in India.
Commission Initiative To Improve Dispute Settlement Mechanisms within the European Union – The EU Arbitration Convention (90/436)
Authors: Pit H.M.
Published: December 2023

On 17 June 2015, the European Commission announced its action plan on a fair and efficient corporate tax system in the European Union, which includes plans to improve dispute resolution procedures within the European Union, particularly focusing on the EU Arbitration Convention (90/436). This article discusses and evaluates these plans in light of the functioning of the Convention, taking into account developments at the international level, such as within the OECD.
Use of Berry Ratio in Transfer Pricing Analysis: Asia Perspective
Authors: Bilaney S.
Published: December 2023

The author provides an Asia perspective on the use of the Berry ratio as a profit level indicator for transfer pricing analysis.
A Multilateral Interpretation of the Multilateral Instrument (and Covered Tax Agreements)?
Authors: Haslehner W.C.
Published: December 2023

This article considers the impact the advent of the OECD’s Multilateral Instrument will have on the interpretation of international tax rules.
Dispute Resolution and PE in the EU Context
Authors: Scandone F.S. , Lorenzi U.
Published: December 2023

This article starts with the analysis of a case of potential double taxation deriving from a tax audit on a dependent agent permanent establishment. Next, it discusses the unilateral and bilateral procedures on dispute resolution to avoid double taxation, and whether and how the EU Directive on Dispute Resolutions will address such issue.
Behavioural Game Split: The Arm's Length Principle and Highly Integrated
Enterprises
Authors: Chen X. (Xinyu)
Published: December 2023

A highly integrated transaction is in essence a form of bilateral
monopoly and cooperative game with complete information. The fundamental facts
and circumstances of highly integrated enterprises can be used to restore the
independent state of affiliated enterprises, and the “Behavioural Game Split”
can reveal the arm's length price of corresponding affiliated
enterprises.
Taxing International Telecommunications Income: A Brand New Tax Scenario?
Authors: Li J. (Jinyan) , Bacci B. , Payán J.
Published: December 2023

This article is the first 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).
Call-Off Stock Simplification in Bulgaria – Possible or Not?
Authors: Krastanov S.
Published: December 2023

The call-off stock simplification can provide benefits for both suppliers and recipients in the cross-border movement of goods within the European Union. Bulgaria is one of the Member States that apply this arrangement. In this article, the author provides an overview of the current regime in Bulgaria and how it is expected to change from the beginning of 2020.
Taxing the Digitalized Economy: Key Takeaways from the OECD Public Consultation on the Pillar One and Pillar Two Blueprints
Authors: Dam H. van , Kiès C. , Klethi P-A. , Kroon S. van der , Kunen J-W. , Silva B. da
Published: December 2023

This article summarizes the OECD Blueprints released in October 2020 and analyses the key takeaways of the public consultation and virtual meeting that followed. The main messages from stakeholders on Pillar One were a request for simplification and the removal of unilateral measures, changes to the scope and clarifications on how to compute the tax base notably for Amount A. On Pillar Two, key political decisions on tax rates, carve-outs and preferred simplification measures remain outstanding, with stakeholders pushing for the use of deferred tax accounting, clear and transparent administrative guidance and better prevention of cross-border tax disputes and multiple taxation.
Case Study Analysis of the OECD Pillar One and Pillar Two Allocations to Developing Countries
Authors: Fedan A.
Published: December 2023

In this article, the author considers whether the taxable income allocation under the OECD’s Pillar One and Pillar Two proposals can generate consistent tax revenue for developing countries to fund their sustainable development. The analysis adopts a case-study approach that simulates the operation of the OECD proposals under three profit-shifting schemes.
The Court of First Instance Reaffirmed the Principles for Determining the Locality of Profits
Authors: Chen E. (Eric)
Published: December 2023

In the recent decision in Newfair Holdings Limited v. CIR, the Court of First Instance (CFI) allowed the taxpayer’s appeal and overturned the decision of the Board of Review in Case No. D14/20. The CFI reaffirmed the principles for determining the locality of profits and ruled that (i) the taxpayer did not carry on a business in Hong Kong, and (ii) its profits did not arise from commercial operations in Hong Kong. The profits of the taxpayer were non-Hong Kong sourced and not chargeable to Hong Kong profits tax.
Cross-Border Tax Arbitrage, the Parent-Subsidiary Directive (2011/96) and Double Tax Treaty Law
Authors: Marchgraber C.
Published: December 2023

According to the 2014 amendment of the Parent-Subsidiary Directive (2014/86), Member States are obliged to tax distributed profits at the level of the parent company “to the extent that such profits are deductible by the subsidiary”. This article analyses whether this tax obligation conflicts with the tax treaties of Member States.
The Attribution of Income in Swiss and International Tax Law
Authors: Salom J.
Published: December 2023

This article first analyses the different rule of attribution in Swiss tax law. Then, in the international context, it considers the conflicts that can result from different attribution rules. Finally, the article attempts to assess whether or not such conflicts should be resolved at all and, if so, how.
Transfer Pricing in the Pharmaceutical Industry: The Remuneration of
Marketing Intangibles
Authors: Roberge Chantal
Published: December 2023

This article examines the arm’s length remuneration of a
pharmaceutical distributor who contributes to the value of a marketing
intangible owned by a non-arm’s length party. The author critically reviews the
abundant literature on marketing intangibles and evaluates the applicability of
the main transfer pricing methodologies.
Developing Countries’ Reactions to the G20/OECD Action Plan on Base Erosion and Profit Shifting
Authors: Peters C.
Published: December 2023

This article describes and examines the reactions of developing countries to the G20/OECD Action Plan on Base Erosion and Profit Shifting as communicated to the Subcommittee on Base Erosion and Profit Shifting Issues for Developing Countries of the UN Committee of Experts on International Cooperation in Tax Matters.
Recent Tax Reform Measures
Authors: Joseph A.
Published: December 2023

Several tax reform measures have been proposed in Australia, including
the minerals resource rent tax, reduction of the company tax rate and tax
concessions for small businesses. Proposed changes will also affect controlled
foreign companies, the investment manager regime and managed investment
trusts.
Three New Swedish Direct Taxation Cases on Their Way to the ECJ
Authors: Brokelind C.
Published: December 2023

In this contribution, the author highlights three recent cases that
have been sent by the Swedish Supreme Administrative Court to the ECJ for a
preliminary ruling: Hirvonen (Case C-632/13),
X (Case C-686/13) and a new (unnumbered) case on pension
funds.
Interplay between Ratio Analysis Techniques and Transfer Pricing
Authors: Bilaney S.K.
Published: December 2023

Margin-based analysis under transfer pricing involves the use of various profit level indicators or ratios. Thus, understanding of ratio analysis techniques plays an important role in transfer pricing analysis. There are certain ratios which – although very useful – are not frequently used by transfer pricing practitioners, namely the Altman Z-score ratio, the Berry ratio, the operating profit to value added expenses ratio and so on. This article discusses usage and applicability of such uncommon ratios in transfer pricing analysis.
New Protocol to the Russia-Cyprus Tax Treaty Initialled: End of the “Cyprus Era” in Russian Tax Planning?
Authors: Bruk Boris , Gidirim Vladimir
Published: December 2023

In this article the authors analyse the new Protocol to the 1998 Russia-Cyprus tax treaty, including its potential impact on tax planning opportunities for Russian businesses involving Cypriot companies.
Rise of a New Standard: Profit Location in Countries of Important Intangible Functions Managers
Authors: Musselli A. (Andrea) , Musselli A. (Alberto)
Published: December 2023

This article looks into the arm’s length principle as it has been re-formulated in the new chapter VI of the OECD Guidelines, along the lines of the OECD Final Report on Actions 8-10 and related documentation on BEPS. The authors summarize the major changes of the revised (and materially different) arm’s length principle, analyse the particulars of Example 17 included in the new chapter VI of the OECD Guidelines and discuss the effect of the changes on enforcing the rules on return claims on profits from intangibles.
Voluntary Individual Retirement Accounts in Poland: General Overview and Tax Aspects
Authors: Fiszer J. , Sajkiewicz M.
Published: December 2023

This note outlines the private pension system in Poland, with a particular focus on voluntary pension schemes, including the tax benefits of such arrangements, cross-border aspects of these accounts and suggestions to make this type of savings more attractive.
Treatment of Employee Share Schemes in South Africa – Local and Cross-Border
Authors: Mazansky E.
Published: December 2023

In this article, the author examines the South African tax and exchange control treatment of employees who receive benefits under both local and foreign employee share schemes.
Letting of Immovable Property: An Overview of the Portuguese Further Exclusion to the VAT Exemption
Authors: Silva V. Loureiro e
Published: December 2023

Portugal has made use of the option laid down in article 135(2)(2) of the VAT Directive, this Directive providing for a further exclusion to the scope of the VAT exemption applicable to the leasing or letting of immovable property. In this article, the author describes the key aspects of the Portuguese further exclusion and discusses whether it is in accordance with EU law.
Permanent Establishment Implications for Coordination Centres in the Oil
and Gas Industry
Authors: Goede J. de , Vlasceanu R.
Published: December 2023

This article analyses the permanent establishment (PE)
concept in relation to a coordination centre of a non-resident company in the
oil and gas industry, considering whether the coordination centre constitutes a
basic rule PE and whether it should be aggregated with the company’s other
places of business in a foreign jurisdiction.
Commission
Authors: Morales T.
Published: December 2023

This overview highlights the Commission’s (i) call for proposals for setting up the EU Tax Observatory; (ii) report on competition policy; (iii) recommendation to not grant financial support to companies linked to tax havens and financial crimes; (iv) proposal for a Tax Action Plan, DAC7 and review of EU anti-avoidance instruments; (v) adoption of a readiness communication for the end of the transition period with the United Kingdom; (vi) extension of formal investigation of the Netherlands' favourable tax treatment of Inter IKEA; (vii) letter of formal notice sent to Belgium on the transposition of ATAD I; and (viii) decisions to close infringement procedures against certain Member States regarding amending their legislation in line with EU law.
Tax Due Diligence: An Austrian Perspective
Authors: Baumann A. , Gatterer M.
Published: December 2023

In the context of a reorganization, it is imperative to conduct a
comprehensive tax due diligence review to expose the risks of the
reorganization and determine the best structure to implement the reorganization
from a tax perspective. In this article the authors outline the typical risk
areas examined as part of such a review, including the tax consequences of the
various options.
Emergency Tax Measures in Response to the COVID-19 Pandemic: The Full Picture in Europe
Authors: Morales T. , Rogers-Glabush J.
Published: December 2023

This article provides an overview of the tax response of 47 European countries to the challenges imposed by the COVID-19 pandemic. It provides a summary of national measures, grouped into categories according to the purpose of each measure, as well as an analysis of further steps that need to be taken to address the pandemic, focusing on the tax policy goals that come into play at each phase.
Cross-Border Intra-Group Hybrid Finance: A Comparative Analysis of the Legal Approach Adopted by Brazil, the United Kingdom and the United States
Authors: Bispo R.M.
Published: December 2023

The article analyses how Brazil, the United Kingdom and the United States are dealing with the use of hybrid financing. The purpose is to verify whether or not a comprehensive approach in countering tax avoidance in intra-group finance could be adopted and to what extent it would be effective.
Italian Tax Consequences of Permanent Establishments
Authors: Romano C. , Russo R. (Raffaele)
Published: December 2023

This article considers some of the main features of Italy’s tax policies and practices regarding the taxation of permanent establishments (PEs). Specifically, the article discusses the definition of PE in domestic law and tax treaties and sets out Italy’s approach to attributing profits to PEs.
VAT Impact of Brexit for Customers in the Financial Services Industry
Authors: Zutt J.
Published: December 2023

This article deals with the VAT changes that recipients of financial services, such as investors, holding companies and funds, face after Brexit.
UK Consultation on Transfer Pricing Documentation
Authors: Green G.
Published: December 2023

The OECD Local File and Master File format is about to become compulsory in the United Kingdom for approximately 3,500 businesses that are members of the largest groups. Such businesses will also be required to complete a “summary audit trail” questionnaire, though this will come into effect later, to allow for further consultation on this.
Transitional restrictions on the right to deduct EU VAT
Authors: Swinkels J.J.P.
Published: December 2023

Restrictions on the right to deduct input VAT are costly features of
the VAT system and, for that reason, draw the attention of businesses. The
current VAT Directive provides that the Council must determine the expenditure
in respect of which VAT is not deductible and adds that VAT is under no
circumstances deductible in respect of expenditure which is not strictly
business expenditure, such as that on luxuries, amusements or entertainment.
This article briefly examines the scope of the exclusions from the right to
deduct input VAT, the legal history of that provision, its interpretation by
the European Court of Justice (ECJ) and the issues pending before the
ECJ.
Opinion Statement ECJ-TF 2/2020 on the ECJ Decision of 3 March 2020 in Vodafone Magyarország Mobil Távközlési Zrt. (Case C-75/18) on Progressive Turnover Taxes
Authors: CFE ECJ Task Force
Published: December 2023

This CFE Opinion Statement discusses the decision of the Grand Chamber of the ECJ in Vodafone. The Court held that the imposition of the Hungarian progressive turnover-based tax on the telecommunications sector did not infringe the EU fundamental freedoms or article 401 of the VAT Directive (2006/112), and that the question regarding the prohibition of State aid was inadmissible. Vodafone is especially important in respect of the current debate regarding turnover-based digital services taxes.
Recent Sweeping Reforms and Innovations in the Indian Financial Markets
Authors: Krishnamurthy V.
Published: December 2023

Far-reaching and irreversible reforms have been introduced in the Indian financial markets in the recent past, the effect of which is transforming the elephantine Indian economy into a digital, tight-knit and integrated economy. This article provides an overview of some significant reforms.
Dutch District Court Requests for a Preliminary Ruling in Six Pension Fund Cases
Authors: Hommen  , Voordendag E.C.
Published: December 2023

In this article the authors discuss the preliminary rulings as submitted by the Dutch District Court of Gelderland in six pension funds cases. After a multitude of negative decisions over the last couple of years, finally, these questions are a promising breakthrough. The reason for these preliminary rulings is the objections filed by many Dutch pension funds regarding the application of the VAT exemption for the management of special investment funds.
Using Exchange of Information in Regard to Assistance in Tax Collection
Authors: Öner C.
Published: December 2023

This article outlines information exchange methods and forms that can be used in assistance in tax collection, with a focus on tax treaties based on the OECD Model Tax Convention. In other words, the research question of the article is: How can the exchange of information be used in assistance in tax collection?
Tax Reform in Latvia
Authors: Kronbergs Z.G.
Published: December 2023

In this note, the author describes recent initiatives aimed at a reform of the Latvian tax system, in particular with regard to the micro-enterprise tax, and discusses problems that might lie ahead.
Introduction to This Special Issue – VAT Exemptions: Consequences and Design Alternatives
Authors: Feria R. de la , Kesteren H. van
Published: December 2023

Introduction to this special issue of the International VAT Monitor which contains shortened versions of five more practical papers, and edited versions of two comments accompanying those papers, which were presented at the conference “VAT Exemptions: Consequences and Design Alternatives” that was held at Oxford University in April 2010.
Annex to Opinion Statement of the CFE on Outbound Dividends: Commission v. Italy (C-540/07)
Authors: Confédération Fiscale Européenne
Published: December 2023

This is an Opinion Statement prepared by the ECJ Task Force

Members of the Task Force are: Axel Cordewener, Kelly Coutinho, Paul Farmer, Daniel Gutmann, Volker Heydt, Michael Lang, Franck Le Mentec, Pasquale Pistone, Albert Raedler, Stella Raventos-Calvo (Chair), Isabelle Richelle, Friedrich Roedler and Servaas Van Thiel. The views expressed in this statement do not necessarily represent the views of each individual member of the Task Force or of organisations with which any of the members are associated.
of the Confédération Fiscale Européenne (CFE) concerning outbound dividends issued on the occasion of the Commission v. Italy case (C-540/07). Advocate General Juliane Kokott delivered her Opinion on 16 July 2009 and the ECJ decided the case on 19 November 2009. The CFE is the leading European association of 32 national tax advisory organisations representing over 180,000 tax advisers.
Current Trends Regarding Disclosure Mechanisms: Reporting Ultimate Beneficial Ownership – Part 1
Authors: Offermanns R.H.M.J. , Moniz R. Botelho
Published: December 2023

In this two-part article, the authors comment on current trends regarding disclosure mechanisms. Part 1 of this article examines practical difficulties faced in complying with such mechanisms, the purpose and consequences of disclosure mechanisms and important considerations in implementing disclosure mechanisms. Part 2, to be published in issue 5 of European Taxation (2019), examines the reporting of beneficial ownership.
Merger of business tax into VAT in China
Authors: Yang X.
Published: December 2023

With effect from 1 January 2009, the scope of a local experiment to
allow businesses to deduct VAT in respect of the purchase of equipment was
extended to all businesses nationwide. According to the legislative plan, the
congress will adopt a VAT Law within five years. In the framework of that
reform, one of the main issues is the relationship between VAT and business
tax. The final result seems clear: in the future, business tax will merge into
VAT.
Freedom of Establishment and Transfer Pricing Threats for the EU Single Market
Authors: Petruzzi R. , Buriak S.
Published: December 2023

This article aims to examine the arguments and conclusions made by Advocate General Bobek in his Opinion delivered on 14 December 2017 in Hornbach-Baumarkt (C-382/16) and their potential consequences for taxpayers in EU Member States. In particular, it argues that cross-border situations targeted by the arm’s length principle (ALP) are comparable with purely domestic situations, which escape the burden of compliance with the ALP. The German transfer pricing rules may be considered disproportionate to the aim they pursue due to the limitation on a taxpayer’s rights to provide the commercial justifications for the transactions that do not comply with the ALP resulting from the parent company’s status as a shareholder.
The Italian Rule on the Deductibility of Costs Incurred in Blacklisted
Countries in Light of Italian Tax Treaties: Does a Conflict Exist?
Authors: Mojana M.
Published: December 2023

This note provides an overview of the Italian tax provisions on the
deductibility of costs related to transactions involving non-resident entities
located in blacklisted countries and comments upon the potential conflict of
these rules with the non-discrimination provision in Italian tax treaties. The
note is based on legislation, administrative practice and case law as of 23
March 2014.
Payments for Offshore Supply of Equipment Not Taxable in India But Payments for Supervisory Services Are Taxable in India
Authors: Dugar A. , Bhandari L.
Published: December 2023

This case note reviews the ruling given by the Authority for Advance Rulings to Michelin Tamil Nadu Tyres Private Ltd, which held that a payment made to a foreign company outside India for the offshore supply of machinery and equipment was not taxable in India, but payments for supervisory services performed in connection with the installation of the equipment in India by third parties were taxable in India.
Foreign Employment Income in the Italian Tax Setting
Authors: Persiani A.
Published: December 2023

This article considers the development of the regimes that deal with the foreign employment income of Italians, with specific reference to the most recent regime and the various issues that have arisen as a result.
General Report of the French IFA Annual Conference, 16 November 2022 – Beneficial Ownership, Substance: The Search for Reality
Authors: Martin P. (Philippe)
Published: December 2023

This General Report provides a summary of the presentations given during the annual French IFA conference, which was held in Paris on 16 November 2022. The topic discussed in this conference was “Beneficial ownership, substance: the search for reality”.
How “Limited” Is Limited Force of Attraction? An Analysis of the Relevant Case Law and the Potential Implications of the OECD/G20 BEPS Initiative
Authors: Sagar S.
Published: December 2023

This article considers the scope of the limited force of attraction principle as set out in article 7 of the UN Model, focusing on its development, the relevant case law and the potential implications for the principle in the light of the OECD/G20 Base Erosion and Profit Shifting initiative.
The Asian Agri Case (2012): The Giant Goes
Berserk
Authors: Nugroho A.D.
Published: December 2023

In this article, the author examines the Supreme Court’s landmark
decision in one of the most controversial tax evasion cases in Indonesian
history.
Traditional securities, qualifying securities and the new rules for
taxation of financial arrangements (TOFA)
Authors: Joseph A.
Published: December 2023

This article explains what constitutes a traditional security and a
qualifying security, and considers instances in which such securities may still
be recognized in the new TOFA environment in Australia. It also examines moves
taken in the TOFA legislation to eliminate any differences in the tax treatment
of such securities.
Tax Treaty News
Authors: Arnold B. J.
Published: December 2023

The author, in this "Tax Treaty News", comments on a Belgian ruling regarding the taxation of hybrid entities, an Indian beneficial ownership tax case together with a Spanish case on the use of the OECD Commentaries, and proposed UK legislation (subsequently withdrawn) dealing with treaty abuse.
A Mexican Perspective on Value Creation under the OECD’s BEPS Approach to Transfer Pricing
Authors: Milewska M.
Published: December 2023

The author reviews the economic principles governing dynamics of the current business environment, suggesting a more objective approach to be followed by the Mexican tax authorities for the purpose of transfer pricing audits in order to better evaluate how value is created by multinational enterprises.
Cross-Border Charitable and Other Pro Bono Contributions
Authors: Thoemmes O. , Muehlmann B.W.
Published: December 2023

This article is the ninth 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).
Royalties and fees for technical services in international trade
Authors: Chishty M.M. , Chakalabbi S.A.
Published: December 2023

The authors comprehensively address the taxation of the cross-border
transfer of intellectual property and make a number of suggestions on improving
the current system.
The Belgian
Participation Exemption and the ECJ Decision in Cobelfret
Authors: Dierckx Frank
Published: December 2023

This article considers the recent European Court of
Justice decision in Cobelfret and the immediate
implications of the case for the Belgian participation exemption, the EC
Parent-Subsidiary Directive and EC law in general.