bluuebunny/crossref_metadata_2025 huggingface dataset:
New Case Law Developments in Germany: Finality of Foreign Permanent Establishment Losses
Authors: Bal Aleksandra
Published: December 2023

In this note, the author reviews, in light of EU law, the recent decision of the Finance Court of Lower Saxony regarding the tax treatment of losses incurred by a foreign permanent establishment that is subsequently wound up. The Finance Court held that such losses are final and must be taken into account by the head office in the year in which they became final.
Tax Transparency – How To Make It Work?
Authors: Reibel R.
Published: December 2023

The author reports on the 7th CFE Professional Affairs Conference held on 5 December 2014 in Paris, wherein three aspects of tax transparency were discussed: corporate country-by-country reporting (CBCR), mandatory disclosure of tax avoidance schemes and “cooperative compliance” in respect of the relationship between taxpayers and their advisers and the tax administration.
The Proposed Redraft of Article 7 of the OECD Model
Authors: Bobbett C. , Avery Jones J.F.
Published: December 2023

This article summarizes the discussion of the case studies at the joint IFA/OECD Seminar, held during the IFA Congress in Vancouver in September 2009, on the effect of the proposed redraft of Art. 7 (Business profits) of the OECD Model Tax Convention.
Making Available Technical Expertise and Being Effectively Connected to a Permanent Establishment
Authors: Rawal R.
Published: December 2023

This article discusses the recent decision of the Income Tax Appellate Tribunal (Delhi) in which the Tribunal found that a substantial part of the payment made by the Board of Control for Cricket in India to a United Kingdom resident company to establish and run the Indian Premier League was taxable in terms of article 13 of the India-United Kingdom tax treaty. The author analyses the key aspects of the Tribunal’s decision, covering the scope of India’s domestic law source rule, the “make available” condition in article 13(4)(c) of the treaty, the scope of the “effectively connected” to a permanent establishment requirement – and the Tribunal’s interpretation – of article 13(6), and the interplay between the “effectively connected” condition and the need for profits to be “attributable to” a permanent establishment under article 7 of the treaty.
BEPS: Current Reality and Planning in Anticipation
Authors: Lowell C. , Herrington M.
Published: December 2023

The authors reflect on the progress so far of the OECD BEPS
initiative, and consider how multinational groups could be planning in
anticipation of the changes that may come out of the process.
BEPS and Increased Tax Transparency Elevate Tax to Corporate Social Responsibility Status in South Africa
Authors: Botha M.
Published: December 2023

The recent publication of the King IV™ report introduces formal tax governance with a level of tax scrutiny not seen before. The Report shifts the focus of tax management from basic compliance to comprehensive management, societal value created, and communication in annual and integrated reports.
Machinations in the Global Automotive Industry: The Fiat and Chrysler Deal Examined
Authors: Ciro T. , Mascitelli B.
Published: December 2023

The national auto industries of Italy and the United States have much more in common than meets the eye. Both nations are proud and passionate of their motor vehicle industry. The automotive industry in both countries have until recently prospered from increased consumer demand enjoying an effective monopoly/oligopoly in their home jurisdictions. However, globalization of automotive services, along with the recent global financial crisis has placed increased financial and economic pressure on Fiat and Chrysler. The challenges are not unique to Fiat or Chrysler, nor to Italy or the United States. The motor vehicle industry is a capital intensive business. Falling auto revenues, rising gasoline costs, foreign competitors, frozen capital and debt markets, environmental concerns, changing consumer demand and an international recession have all contributed to significant challenges confronting the automotive industry.
Fixed Establishment, Intra-Community Supplies and Liability to Taxation
Authors: Bancalari M.
Published: December 2023

On 27 October 2015, the Italian tax authorities issued a ruling replying to a question submitted by a German corporation with regard to the concept of fixed establishment. The Italian tax authorities have not missed the opportunity to align themselves with the guidance provided by the VAT Committee.
Common Consolidated Corporate Tax Base Proposal of the European Commission
Authors: Gombkötő B. , Gódor M.
Published: December 2023

After eight years of preparation, the European Commission released on 16 March 2011 its Proposal for a Council Directive on a Common Consolidated Corporate Tax Base. The proposed Directive would, on an optional basis, allow group companies to file a single tax return in a single Member State for all group members operating in the European Union. The International Transfer Pricing Journal features a comparative survey examining how this proposal has been received in various Member States, along with an outline prepared by Mr. Louan Verdoner. Country report on Hungary.
Retailers Directly Accepting Bitcoins: Tricky Tax Issues?
Authors: Lambooij M.
Published: December 2023

Bitcoins are increasingly being used in commercial transactions.
Thinking about the tax consequences thereof is, however, still in its infancy.
This article discusses the current state of play and reports on some guidance
already provided by tax authorities. The key issue to consider seems to be the
VAT treatment of bitcoin transactions between two entrepreneurs.
Commission
Authors: Valério C.
Published: December 2023

This overview highlights the Commission’s (i) opening of the feedback period and policy options for BEFIT proposal; (ii) call for Germany to bring its rules on calculating allowances for cross-border workers in line with EU Law; (iii) referral of Malta to the ECJ over its investor citizenship scheme; (iv) closing of infringement procedures against Czech Republic, Cyprus and Spain regarding their tax dispute resolution mechanism, ATAD and ATAD 2; (v) closing of infringement procedure against Spain following the lifting of disproportionate sanctions for failure by taxpayers to report assets held abroad; (vi) request to Belgium and Luxembourg to transpose EU Excise Framework Directive; (vii) closing of infringement procedure against Poland regarding exemption from excise duty for gas and coal products; (viii) approval of Italian scheme to support haulage operators using liquefied natural gas as fuel in the context of Russia’s invasion of Ukraine; and (ix) approval of Irish scheme to support development of cultural digital games.
The Shift in the Burden of Proof in regard to Transfer Pricing
Authors: Mastellone P.
Published: December 2023

In this note, the author discusses the development of the transfer pricing regime in Italy in the context of recent legislative and case law developments that, inter alia, clarify that the initial burden of proof in this area is on the tax authorities.
Taxation of Software Payments: Multi-Jurisdictional Case Law Analysis
Authors: Castro D. (Daiana)
Published: December 2023

This article considers the taxation of software payments with specific reference to tax treaties, and analyses the tax and case law of three divergent jurisdictions, i.e. Argentina, Australia and India.
Jurisdictional Taxing Rights of Sovereign Wealth Funds
Authors: Joseph S-A.
Published: December 2023

In this article, the author considers how the taxing rights of states, with regard to tax treaties, international tax law and the principle of sovereign immunity, affect sovereign wealth funds.
Transfer Pricing Regulations – A Comparison with Selected ASEAN Regimes
Authors: Ratanarangsikul P.
Published: December 2023

This article reviews recent developments in the area of transfer pricing guidance and regulations in Thailand, in comparison to Indonesia, Malaysia and Vietnam. In particular, the shortcomings of the Thai regulations including their divergence from their ASEAN counterparts, and the ways in which they can be improved upon are discussed.
Intangibles in a Transfer Pricing Context: Where Does the Road
Lead?
Authors: Lagarden M.
Published: December 2023

The author considers the main features of intangibles in a transfer
pricing context, as well as the conceivable consequences from a company
perspective. Topics covered include ownership concepts; various practical
valuation methods and related challenges; and different interpretations by tax
authorities in various countries.
Tax Transparency and Disclosure in Brazil
Authors: Gomes E. Santos
Published: December 2023

The author, in this article, considers the topics of transparency and disclosure with regard to taxation as these issues manifest themselves in relation to Brazil.
What’s “Ruling” Indian Transfer Pricing?
Authors: Tolia S. , Mehta R. , Amonkar A.
Published: December 2023

Transfer pricing is increasingly becoming the largest source of litigation for both Indian and foreign multinationals. Judicial pronouncements on transfer pricing are being scrutinized by all stakeholders, both domestic and global. This article analyses recent Indian tribunal rulings that have the potential to reshape the rules of the game.
Rethinking Interquartile Ranges
Authors: Martensen F.
Published: December 2023

The interquartile range has become the international de facto standard for transfer pricing benchmarking studies. However, it is not a statistically robust method to trim a range of values. Instead of quartiles, confidence intervals of quartiles should be applied. This approach is in line with OECD TP guidance, and furthermore provides a clear criterion for an often neglected aspect of OECD TP guidance: that benchmark ranges should only be narrowed in the case of a sizeable number of observations. The author suggests that the full range should always be used for sets of less than 27 comparables. The suggested methodology can be easily implemented using standard spreadsheet software.
Venture Capital Funds and the New Tax Framework in Italy
Authors: Magliocco A. , Ricotti G.
Published: December 2023

In this article, the authors provide an update on the tax rules applicable to the venture capital industry, focusing on tax incentives adopted as part of the “Summer Manoeuvre 2011”. After analysing the constraints imposed by the State aid provisions, the authors compare, from a quantitative point of view, the previous and the current tax scene and shed light on the new favourable context for investment in venture capital funds.
Tax Reform: Substantial Changes to Taxation of Dividends and Capital
Gains on Shares
Authors: Møll Pedersen B.
Published: December 2023

With effect from the 2010 tax year, the Danish taxation of dividends
and capital gains on shares derived by corporate shareholders will be
substantially amended. This note summarizes those changes.
Amendments to Transfer Pricing Provisions
Authors: Didenko V.
Published: December 2023

A new law came into effect on 1 January 2017 that affects numerous transfer pricing areas, including the criteria for controlled transactions; requirements regarding transfer pricing documentation and the annual transfer pricing report; transfer pricing methods and their application; sources of information for application of the arm’s length principle; the penalty regime; and the assessment of tax liabilities.
Tax Progressivity in Developing Countries: Redistributive Reforms to Indirect Taxation
Authors: Gazmuri Barker S.
Published: December 2023

Developing countries’ tax systems are characterized by a very high reliance on indirect taxation and a very low (if any) progressivity. In this article, the author tries to provide a deeper analysis linking these two characteristics by exploring what actions are available for developing countries to increase their tax progressivity through their indirect taxes. He also analyses the potential distributional gains of three reforms to the VAT in developing countries. Using Chile as a case study, the analysis is based on empirical data on consumption patterns to assess the distributional impact of these reforms, finding that they have a strong redistributive potential to enhance the tax progressivity in developing countries. It also emphasises the importance of following evidenced-based tax reforms and not simply follow the indirect taxation policies of developed countries. The author draws comparisons with the UK VAT to highlight the need to take a different approach to regressivity concerns of indirect taxation.
First Decision on the Arbitration Convention (90/436)
Authors: Bjørnholm N.
Published: December 2023

The Danish Western High Court is probably the first court within the European Union to decide a case on the Arbitration Convention (90/436). The issue in the case was whether or not the taxpayer’s MAP request had been rightly denied by the Danish tax authorities on the grounds that it failed to state certain particulars, which, according to the taxpayer, were not required under either the Arbitration Convention itself or under the Code of Conduct. The Court agreed with the taxpayer. This article discusses the decision and its ramifications.
Significant Amendments to the France–United States Tax Treaty
Authors: Gouthière B.
Published: December 2023

In this article, the author provides a comprehensive overview of the amendments to the France–United States tax treaty, introduced by the 2009 Protocol, and analyses their practical implications for taxpayers. The changes concern, particularly, the application of the treaty to tax-exempt entities, the treatment of partnerships, exemptions from withholding tax on intra-group dividends and on royalties, avoidance of double taxation, introduction of a mandatory arbitration provision and limitation on treaty benefits.
Base Erosion and Profit Shifting – An Action Plan for Developing Countries
Authors: Law S.B.
Published: December 2023

In this article, the author discusses the importance of the Base Erosion and Profit Shifting (BEPS) Action Plan for developing countries and the benefits that those countries may realize by participating in the BEPS discussions.
Business tax : China's quasi-VAT
Authors: Cui W.
Published: December 2023

On 1 January 2009, new VAT rules entered into force in China. Under
these rules, all registered businesses are entitled to recover VAT on the
purchase of capital assets other than immovable property. The Chinese VAT
system does however not yet cover services and transactions concerning
immovable property, which are still subject to the all-stage, cumulative
business tax. In this article, the author explains that the process of gradual
transformation of the business tax into a VAT has started and that the current
business tax should already be seen as a quasi-VAT.
Transition from VAT to Sales Tax: A Unique Experience?
Authors: Zhabbarov A.
Published: December 2023

In this note, the author discusses the ramifications of Kazakhstan’s intention to replace its VAT system with a sales tax regime.
A New Chapter in Transfer Pricing?
Authors: Brodbeck J.
Published: December 2023

In the context of the efforts by the SARS to close sophisticated tax
loopholes, transfer pricing was specifically identified as one of the main
areas of concern by the Minister of Finance, Pravin Gordhan, in his 2010 Budget
Speech, together with cross-border schemes. The proposed changes to the South
African transfer pricing rules were set out in the Draft Taxation Laws
Amendment Bill, 2010, which was released for public comment by the National
Treasury on 10 May 2010. This article considers the changes contemplated in
this draft legislation.
Is the Belgian Tax Consolidation Regime EU-Proof?
Authors: Wouters P-J.
Published: December 2023

The Belgian tax consolidation regime allows for current-year tax losses to be set-off against the profits of another Belgian group company. Other tax attributes, however, cannot be utilized, which may violate the EU Parent-Subsidiary Directive (2011/96). This does not seem to be the only EU hurdle – the direct participation requirement and holding period may trigger concerns with respect to the freedom of establishment. In this article, the author addresses these concerns and the proposed solutions.
The Danish Beneficial Ownership Cases – Is the European Union Becoming a Common Law Jurisdiction?
Authors: Bærentzen S.H.
Published: December 2023

The decision of the Court of Justice of the European Union in the famous Danish beneficial ownership cases has spawned similar litigation (with similar results) in courts in France, Belgium and Denmark. Susi Bærentzen discusses how those cases might reflect Europe’s embrace of common law principles.
Thin Capitalization Legislation and the EU Corporate Tax Directives
Authors: Dongen T.J.C. van
Published: December 2023

Many Member States have thincap legislation limiting the deductibility of interest payments and possibly reclassifying (remuneration on) debt instruments. This article argues that if this legislation results in the non-deductibility of interest only, both the EU Interest and Royalties Directive and the Parent-Subsidiary Directive are not applicable. The latter is, however, applicable where thincap legislation reclassifies (remuneration on) debt instruments as equity (dividends). As a result, a gap exists between the application of the EU directives and thincap legislation.
An Overview of the Supreme Court of Canada
Authors: Rothstein M.
Published: December 2023

The author, in this article, describes the organization and functioning of the Supreme Court of Canada and considers the significance of the Supreme Court with regard to the Canadian tax law.
Are the Revenue Sourcing Rules of the OECD’s Pillar One Fulfilling the Objective of Taxing Value Creation?
Authors: Maheshwari R.
Published: December 2023

In this article, the author evaluates the revenue sourcing rules in the OECD’s Pillar One proposal and whether they achieve the initial intended goal of taxing value creation.
TP Regulation Regarding Cost and Distribution Arrangements under Notice 55-18
Authors: Corral M.
Published: December 2023

The author examines Notice 55-18 issued by the Dominican Republic’s Directorate General of Internal Revenue that establishes guidance and documentation requirements in respect of the submission of cost sharing and cost contribution agreements, for transfer pricing compliance in the Dominican tax system.
The New VAT Record Keeping and Reporting Obligations for Payment Service Providers
Authors: Hilten M.E. van , Beretta G.
Published: December 2023

On 18 February 2020, the European Council adopted a new set of rules that, as of 1 January 2024, will require payment service providers (PSPs) to record certain information on payment transactions and report this information to the tax authorities of EU Member States. In this article, the authors discuss the scope and implications of the new VAT obligations as laid down in Directive 2020/284/EU and Regulation 2020/283/EU. Although concurring with the need to introduce adequate VAT enforcement mechanisms, the authors identify several problem areas in which the new VAT record keeping and reporting obligations for PSPs might see an improvement.
Expanding the Commissioner’s Core Powers: Should New Zealanders Be Concerned?
Authors: Sawyer A.J.
Published: December 2023

This article considers the core powers of the Commissioner of Inland Revenue (Commissioner) in New Zealand principally in relation to investigations, including recent additions that not only increase the scope of the Commissioner’s powers, but also further impinge on taxpayers’ rights, and risk eroding confidence in the tax system.
Uruguay’s Treaty Policy
Authors: Barrios Correa R.
Published: December 2023

This article considers Uruguay's treaty policy and negotiating process, and attempts to place the tax treaties that Uruguay has concluded to date in the context of the provisions of the OECD Model and the UN Model.
The Exchange of Tax Information between EU Member States and Third Countries: Privacy and Data Protection Concerns
Authors: Favaloro G.A.C.
Published: December 2023

In recent decades, international pressure to enhance administrative cooperation and tax transparency has led to rapid implementation of structured exchange of tax information (EoTI) frameworks. However, the substantial increase in the volume of personal data processed is leading to significant privacy and data protection concerns. The present article analyses the main issues arising in respect of EoTI between EU Member States and third countries in light of ECtHR and ECJ case law.
VAT on Non-Resident Sellers
Authors: Millar R.
Published: December 2023

This article is the fourth 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).
The Kljun (2012) Case: The Concept of Economic Employer under the United Kingdom-Yugoslavia Income Tax Treaty (1981)
Authors: Cleave B.
Published: December 2023

The author reviews the UK First-tier Tribunal (FTT) decision in Kljun (2012), in which the FTT used the guidance in the Commentary on the OECD Model regarding the meaning of “employer” in interpreting “person for whose benefit the relevant dependent personal services are exercised” in the United Kingdom-Yugoslavia Income Tax Treaty (1981).
Revised Transfer Pricing Rules as from 15 June 2015
Authors: Jonsson S. , Birgisson H.
Published: December 2023

The OECD Transfer Pricing Guidelines were legislatively implemented in Iceland with effect from 1 January 2014 through new articles in the Income Tax Act. A regulation on the topic was issued in December 2014 and the above-mentioned articles were also amended in June 2015. The authors consider these changes, effects on domestic related entities, documentation requirements and tax return disclosures.
Certificates of Tax Residence – Practical Aspects Relating to Payments Made by Polish Entities to Foreign Contractors
Authors: Kanczew M.
Published: December 2023

In order for an entity making payments to a foreign contractor to apply reduced withholding tax rates under a tax treaty or domestic regulations relating to cross-border transactions, the entity must obtain a certificate of tax residence from its counterparty. This article outlines the practical requirements in regard to such certificates.
Compatibility of Domestic Anti-Avoidance Measures with Tax
Treaties
Authors: Gerzova L. , Popa O.
Published: December 2023

This article discusses the issue of treaty override through
general domestic anti-avoidance measures and, in particular, the question of
whether or not treaty override may be treated as justified in cases of
abuse.
Country-by-Country Reporting – All Smoke and Mirrors or the BEPS Project’s First Success?
Authors: Meijer T. , Kerkvliet S. , Stigt B. van
Published: December 2023

On 6 September 2017, the OECD issued a report on the implementation of country-by-country reporting. In this article, the authors outline the key clarifications and the new guidance provided in that report and discuss the impact thereof.
Commission
Authors: Morales T.
Published: December 2023

This overview highlights the Commission’s (i) recommendations for a coordinated response to the COVID-19 pandemic in the European Semester Spring Package, (ii) proposal regarding a recovery plan for the long-term EU Budget, and (iii) consultation to further extend the scope of the State Aid Temporary Framework.
New Provisions on a Transfer of Residence in an Inbound Scenario
Authors: De Santis D.A.
Published: December 2023

This note addresses Legislative Decree No. 147 of 14 September 2015 with specific reference to the provisions included in article 12 relating to a transfer of residence in an inbound scenario (i.e. a transfer of tax residence from a foreign country to Italy). In particular, this note focuses on the issues solved by the provision and on those scenarios that are still not covered.
Taxation of Human Capital and Employment aboard Ships: Identification of the “Economic Employer” in International Maritime Practice
Authors: Dal Corso D.
Published: December 2023

This article attempts to reconcile the rules of international tax law with the commercial practices (and contracts) as adopted in the international shipping industry, while, simultaneously, ascertaining the key to interpreting tax treaties, consistent with the context, so as to realize as great as possible a harmonized approach.
Comparison of the Substantive Aspects of Impermissible Tax Arrangements in South Africa’s General Anti-Avoidance Rule and the Principal Purpose Test in the OECD Model (2017)
Authors: Zebert B.
Published: December 2023

This article compares the substantive aspects of impermissible tax arrangements in the South African general anti-avoidance rule and the Principal Purpose Test set out in article 29 of the OECD Model (2017), with emphasis on an evaluation of the examples in the Commentary on Article 29 of the OECD Model (2017).
Reorganization of Intra-Group Support Functions: A Transfer of
Profit?
Authors: Escaut P. , Bonneaud E.
Published: December 2023

The authors consider a recent court case in France on the tax
treatment of the intra-group transfer of cash pooling activities, as well as
possible future applications of the court’s decision.
Fiscal Autonomy, Investment Funds and State Aid: A Follow-Up
Authors: Luja R.H.C.
Published: December 2023

In this article, the author discusses the continuously developing area
of State aid. In particular, the article focuses on the application of the
State aid rules to autonomous regions and specialized investment fund regimes,
in respect of which the recent Basque, Gibraltar and Italian cases have
provided some clarification.
Taxability of Gains from Sales of Shares and Properties under Section 10(1)(g) of the Income Tax Act
Authors: Tan H.T.
Published: December 2023

This article examines four cases concerning the application of section 10(1)(g) of Singapore’s Income Tax Act – which imposes tax on gains or profits of an income nature that do not fall within any of the preceding paragraphs of section 10(1) – to profits derived from the sale of shares and real property. While the GBU case, decided in 2017, has endorsed the narrower scope of the so-called IB proposition in applying section 10(1)(g), the author submits that the conceptual distinction between that provision and section 10(1)(a), which taxes gains or profits from a trade, business, profession or vocation, remains unclear.
The Relevance of BEPS Materials for Tax Treaty Interpretation
Authors: Hattingh J.
Published: December 2023

In this article, the author argues that the relevance of BEPS materials for tax treaty interpretation depends on which interpretive community is engaged. Some, but not all, frameworks for treaty interpretation by domestic courts, advisors and policymakers have shifted in the post-BEPS era. Selected questions of treaty interpretation are analysed with reference to the historical and current working methods of the OECD, as well as the plural nature of BEPS materials produced by the OECD, UN, IMF, etc.
The European Commission Action Plan for a Fair and Efficient Tax System in the European Union: What Should Be Expected?
Authors: Verlinden I. , Deré P.
Published: December 2023

On 17 June 2015, the European Commission (the Commission) published its Action Plan for fair and efficient corporate taxation in the European Union. The authors discuss the Action Plan and place the Action Plan into the landscape of ongoing developments in the international tax realm. Critical comments are offered with regard to the merits and limits of the actions proposed by the Commission in the Action Plan.
Aircraft Leasing Bill: Truly Beneficial or an Alphabet Soup?
Authors: Yim K. , Cheung A. (Aki)
Published: December 2023

March 2017, a bill providing for concessionary tax treatment on aircraft leasing activity was introduced in Hong Kong. In this article, various considerations of this bill are reviewed to determine if the new tax regime can be truly beneficial.
Parliament
Authors: Valério C.
Published: December 2023

This overview highlights the Parliament’s call for windfall taxes on profits of energy companies.
Tax Rates, Tax Evasion and Why Increased Tax Audits Fail: An Analysis of Greek Microdata
Authors: Vlachos P. , Thomakos D.
Published: December 2023

Using a proprietary micro-dataset on tax audits from Greece, the authors examine the link between tax evasion and corruption in the years following the economic recession. The analysis suggests that existing high tax rates and spending on tax audits have failed and will continue to fail to produce any viable economic results: Increasing the level of taxes or spending on tax enforcement does not yield the anticipated increase in tax revenue collection.
Australian Taxation Office Audit Focus on Arrangements Involving Intangibles
Authors: Seve A. , Austin P. , Wright R.
Published: December 2023

The Australian Taxation Office (ATO) has issued the long-anticipated Taxpayer Alert on aspects of intangibles migration out of Australia.
Competition for Research & Development Tax Incentives in the European Union – How an Optimal Research & Development System Should Be Designed
Authors: Bal A.
Published: December 2023

In this article, the author considers how research and development tax incentives can be designed in the most optimal way and whether or not the competition between various incentive systems may result in a “race to the bottom”. The article focuses on the European Union, given its economic importance.
Taxation of Cross-Border Employment Income and Tax Revenue Sharing in the Öresund Region
Authors: Dahlberg M. , Önder A.S.
Published: December 2023

In this article, the authors examine the current rules of the Nordic tax treaty for the taxation of cross-border employment income in the Öresund Region and their impact on public finances of local governments. They propose amendments to those rules since the asymmetry in commuter flow causes revenue losses in the Swedish County of Scania.
Is the Settlement of Rio Tinto’s “Marketing Hub” Transfer Pricing Dispute the Shape of Things to Come?
Authors: Butler M. , Wang L. , Chen K.
Published: December 2023

In July 2022 the Australian Taxation Office (ATO) and Rio Tinto Ltd (Rio Tinto) announced they had reached a settlement that brought to an end all tax disputes, including a long-standing dispute in relation to Rio Tinto’s Singapore “marketing hub”. The settlement involved payment of almost AUD 1 billion by Rio Tinto to the ATO. That followed a settlement in late 2018 between the ATO and BHP Billiton Ltd concerning BHP’s Singapore marketing hub and requiring the payment of AUD 529 million by BHP. The settlements confirm that the ATO is continuing to protect the Australian tax base by making sure taxpayers comply with their international transfer pricing obligations. The authors examine the Rio Tinto and BHP settlements and the tax treatment of marketing hubs, and make a number of observations on the implications of the settlements for transfer pricing in Australia.
VAT and the Activity of Research and Development – Recent Approaches by the Spanish Courts and the ECJ
Authors: Álvarez Suso M.
Published: December 2023

In this article, the author analyses the VAT treatment of research and development activities and how recent Court decisions in Spain have dealt with certain issues related to such transactions. The author provides generic definitions of the different types of research activities for a better understanding of the debate, and analyses the VAT treatment of the specific situation of R&D activities carried out by Universities and by entities devoted specifically to those activities.
Application of Mutual Agreement Procedure Article under the Multilateral Instrument to Covered Tax Agreements
Authors: Chan A.K.K.
Published: December 2023

The author traces the development of the mutual agreement procedure article and the reservations for the MAP article under the multilateral instrument. With examples drawn from some selected contracting jurisdictions holding different positions on the MLI, he illustrates how the MAP article is applied to the respective covered tax agreements and offers his comments accordingly.
Permanent Establishments and the Taxable Presence of Non-Residents in Brazil
Authors: Carvalho A. de Souza , Costa J. Andrade
Published: December 2023

In this article, the authors consider the concept of a permanent establishment as set out in Brazilian and international tax law and its implications for the taxable presence of non-residents carrying on business activities in Brazil.
The OECD Base Erosion and Profit Shifting Initiative in an Australian Context – The Current State of Play
Authors: Joseph A.
Published: December 2023

This article describes the significant steps that the Australian government has taken within the context of the OECD Base Erosion and Profit Shifting initiative regarding transfer pricing reporting requirements, the digital economy and goods and services tax, permanent establishment status, and controlled foreign company and thin capitalization legislation.
The DuoDecad Case – A New Function for the ECJ?
Authors: Leur M. van de
Published: December 2023

In this Column, the author discusses the Opinion of Advocate General Kokott in the ECJ’s DuoDecad case, which concerns the place of supply of services and the possibility of double taxation because of different qualifications.
Stateless Virtual Money in the Tax System
Authors: Bal A.
Published: December 2023

This note examines the phenomena of virtual money and distinguishes it from electronic currency. The author, in particular, looks at the tax consequences of virtual money in various contexts and early attempts by some states (Germany and the United States) to address this development.
Hard-to-Value Intangibles and the Pricing of Uncertainty
Authors: Hoffmann S. (Simon)
Published: December 2023

This article provides an overview of the development of chapter VI of the OECD Guidelines with respect to the specific addition of hard-to-value intangible (HTVI) as a new concept in the OECD’s transfer pricing guidance. Furthermore, it presents an approach to taking uncertainty into account when valuing HTVIs at best knowledge at the time such a transaction is entered into.
Tax Exemptions for Euro 2012 in Poland and Ukraine
Authors: Tetłak K. , Molenaar D.
Published: December 2023

This note provides an overview of the special tax regimes applicable in Poland and Ukraine in conjunction with the EURO 2012 football tournament, in particular the tax treatment applicable to teams and their players, as well as exemptions for other persons working at the tournament.
The New National Emission Trading System – Austria’s Approach to Carbon Taxation
Authors: Binder-Gutwinski A. , Kubik K.
Published: December 2023

In this note, the authors explain and comment on the design of Austria’s new law on carbon pricing.
Taxation of Corporate-Based Investment Funds in Finland – A SCPI (Case C-342/20) as an Example of Discriminatory Treatment Based on Legal Form
Authors: Tallgren A. , Juusela J.
Published: December 2023

This article analyses the decision handed down by the ECJ in Case C-342/20, which pertains to the tax treatment of a French investment fund in Finland. The Finnish withholding tax regime applied to foreign investment funds has been challenged in several tax disputes since Aberdeen in 2009. In 2020, the Finnish legislator enacted new legislation on the tax treatment of foreign investment funds. The compatibility of this legislation with the free movement of capital is at the centre of the ECJ decision discussed in this article. The ECJ ruling in Case C-342/20 follows closely the way paved by earlier ECJ case law where unfavourable tax treatment of non-resident investors has been found to be widely incompatible with the fundamental freedoms. After this decision, it should be clear that cross-border payments of dividends and other investment income from EU Member States cannot be subject to disadvantageous tax treatment solely based on the legal form of the non-resident investors.
Effective tax planning and profits repatriation strategies
Authors: Van D.T.Q.
Published: December 2023

The article provides information on how to efficiently structure an
investment in Vietnam via an enterprise, under the new corporate income tax
law. This article provides an overview for foreign investors on how to
structure their investments effic
Recent Developments regarding the Tax on Financial Transactions
Authors: Macorin Carramaschi B. , Alves Amaral Batista D.
Published: December 2023

The Brazilian government has enacted three decrees amending the regulations governing the levy of tax on financial transactions. All of these decrees affect foreign investments to be made in the Brazilian financial and capital markets.
New Netherlands Treaty Policy Regarding Developing Countries
Authors: Kosters L.F.
Published: December 2023

In this article, the author discusses various studies on international
tax planning involving the Netherlands and measures announced by the Dutch
government to counteract abusive tax-planning schemes.
Look-Through Relief for Private Equity
Authors: Joseph A.
Published: December 2023

This article considers the liability of non-residents to capital gains tax and the determination of Australian-source income. The position of private equity investors is also addressed, including possibilities for treaty relief.
Practical Aspects of Management Service Fees in Multinational Groups
Authors: Linnenbaum M. , Stillhart S.
Published: December 2023

This article considers means of charging for services in multinational groups, in light of OECD guidance and, as an example, applicable rules in Italy and Germany. The focus is on indirect allocation schemes, and a practical case study is presented.
Some Recent Decisions of the European Court of Human Rights on Tax Matters
Authors: Baker P.
Published: December 2023

In this note, the author examines recent decisions of the European Court of Human Rights regarding the retroactive application of legislation to decided cases, taxation and the freedom of religion, surcharges and para-fiscal levies, and abuse by tax authorities.
Norwegian Interest Limitation and the EEA Right of Establishment: Comments on the EFTA Court’s Decision in PRA Group Europe AS (E-3/21)
Authors: Zalasiński A.
Published: December 2023

In this article, the author analyses the EFTA Court decision in PRA Group Europe AS (E-3/21), wherein the Court held that a combination of an interest limitation and a group contribution regime resulted in a restriction on the European Economic Area right of establishment.
Transfer Pricing Aspects of Real Estate Financing
Authors: Bonekamp M. , Schaatsbergen N.
Published: December 2023

There has been a lot of interest in the transfer pricing of intercompany loans recently, especially following the new guidance released by the OECD on financial transactions in February 2020. However, there are no specific details on the financing of real estate in this new guidance, although in practice the financing of real estate has some unique characteristics. In this article, the authors highlight several aspects that are specific to real estate financing and their impact on transfer pricing. The focus is mainly on investments by multinational enterprises in commercial real estate (CRE), i.e. income-producing property used solely for business purposes, rather than residential property. Examples of CRE include retail malls, shopping centres, office buildings and hotels.
Amendments to the taxation of derivatives in Finland : recognition at
fair value extended
Authors: Lahdenperä O.
Published: December 2023

New Finnish provisions effective from 1 January 2009 subject
unrealized gains and losses of financial instruments held for trading purposes,
including derivatives, to taxation if the gains and losses are recognized in
the profit and loss statement of the company. As the tax treatment of
derivatives is linked to the accounting treatment, this article considers, in
addition to the taxation of derivatives, the accounting principles concerning
these instruments.
New Implementing Regulation for 2008 Income Tax Law and New VAT Rules for Banking Industry
Authors: Karyadi F.
Published: December 2023

The Indonesian government recently issued a regulation following the amendment of Income Tax Law and Value Added Tax Law. The new regulation relating to the Income Tax Law on the determination of taxable income and the settlement of income tax, replaces the existing regulation and serves as the main implementing regulation of the 2008 Income Tax Law. The Director General of Taxation has also issued a ruling that clarifies which banking services are subject to VAT.
The Playing Field outside the Stadiums of the 2020 Olympics – Developments in the Japanese Financial Markets and Taxation
Authors: Leeuwen J.I. van
Published: December 2023

The author discusses various recent developments in the Japanese financial markets and how taxation ties in to that, with a broad lens on Tokyo’s recent efforts to become (once again) a global financial centre, Japan’s asset management industry, its attractiveness for foreign talent, developments in the capital markets, and certain transparency initiatives.
VAT Committee – Guidelines 2008-2012
Authors: The Editors
Published: December 2023

In July 2012, the European Commission published the Guidelines adopted by the VAT Committee in the period from 1977 to 1 July 2012. The most important Guidelines adopted until 2008 and those relating to the place-of-supply rules for services applicable from 1 January 2010 have already been published in the International VAT Monitor. In this overview, the editors present the Guidelines adopted by the VAT Committee from 2008 to 1 July 2012 which have not yet been published.
Is the Mutual Agreement Procedure Past Its “Best-Before Date” and Does
the Future of Tax Dispute Resolution Lie in Mediation and Arbitration?
Authors: Sidhu P.K.
Published: December 2023

This article examines dispute resolution mechanisms under tax treaties
and bilateral investment agreements, with a particular focus on mutual
agreement procedure (MAP). It concludes that the MAP is not efficient at
dispute resolution and more attention should be paid to alternative methods of
dispute resolution, such as arbitration and mediation.
Pillar One, Amount B: Current Implications and Future Perspectives
Authors: Zucchetti S. , Lishi G, , Erb M.
Published: December 2023

On 17 July 2023, the OECD released an updated version of the Amount B draft report for public consultation. This article examines the current extended scope of Amount B, analysing the main implications on the transfer pricing methodologies – especially the TNMM – and explores, among others by means of numeric examples, the broader implications of Amount B, should the scope be further enlarged in the future. Some broader issues about the interactions between Amount B and Amount A under Pillar One are also addressed.
Interest-Free Loans Fall under the Ambit of International Transaction
Authors: Jhabakh P.R.K.
Published: December 2023

The author reviews the recent case of Tata Autocomp Systems Limited, which involved the application of the arm’s length principle to an interest-free loan between associated enterprises.
Beneficial Ownership and Tax Treaties: A French View
Authors: Gouthière B.
Published: December 2023

In this article, the author considers the nature and implications of the concept of beneficial ownership contained in French tax treaties and discusses whether or not, in light of the case law, it may apply independently from the domestic concept of abuse of law.
At a Crossroads: Mandatory Disclosure under DAC-6 and EU Primary Law – Part 1
Authors: Blum D.W. , Langer A.
Published: December 2023

This article examines the Member States’ new obligations under DAC-6, which requires the enactment of mandatory disclosure rules for potentially aggressive cross-border tax-planning arrangements and analyses their compatibility with EU primary law. After describing the tax policy environment in which the DAC-6 rules were introduced, Part 1 of this article – while providing a brief overview of the mandatory disclosure rules – discusses whether the Treaty on the Functioning of the European Union foresees a viable legal basis for harmonization with respect to this subject matter and examines whether the DAC-6 rules are in line with the fundamental freedoms. Part 2, to be published in issue 7 of European Taxation (2019), continues with an in-depth analysis of DAC-6’s potential interference with the rights enshrined in the Charter of Fundamental Rights of the European Union and closes by highlighting selected tax policy issues associated with the mandatory disclosure regime of DAC-6.
Base Erosion and Profit Shifting: A Roadmap for Reform
Authors: Ault H.J. , Schön W. , Shay S.E.
Published: December 2023

In this Editorial, the authors explain the context of this special
issue of the Bulletin for International Taxation. The
fundamental premise of the BEPS project is that a coordination of national
responses to BEPS can both eliminate double non-taxation and protect against
material unrelieved double taxation. The articles in this issue further a
dialogue among tax policymakers, taxpayers, advisors and academics that is
critical to achieve this objective.
Italian Budget Law for 2021, UCITS and Refund Requests: Is There a Light at the End of the Tunnel?
Authors: Guarino S. , Giglio A.
Published: December 2023

The Budget Law for 2021 amends the Italian tax regime applicable to EU/EEA UCITS, which was unfavourable in comparison to the rules applicable to domestic UCITS. Concerns remain, however, regarding the retroactive application of the rules, as well as the path to be followed by taxpayers who want to submit a refund request. This note seeks to address these questions and provide useful guidance for foreign taxpayers.
A Comparative Study of the General Anti-Avoidance Rules of Mainland China and Hong Kong – Legislation, Interpretation and Application
Authors: Yang Y.
Published: December 2023

In this article, the author discusses the interpretation and application of general anti-avoidance rules (GAARs) in Mainland China and Hong Kong. In particular, the author argues that GAARs in Mainland China are effective in countering tax avoidance, but that this is not so in the case of Hong Kong.
Special Situation Debt Funds: Luxembourg Tax Considerations Regarding Debt Restructurings
Authors: Neugebauer J. , Sulejmani A.
Published: December 2023

In this article, the authors provide an overview of the main Luxembourg tax considerations regarding the most common debt restructuring options in situations in which the lender and/or the borrower is a fully taxable company in Luxembourg, and of certain tax challenges within such investment structures.
The German Act to Combat Tax Evasion: Scope and Practical Implications
Authors: Blesgen M.
Published: December 2023

The Act to Combat Tax Evasion and its corresponding Implementing Ordinance were passed in Germany in July and September 2009, respectively. As a result, cross-border tax evasion, in particular the use of tax havens, has been made more difficult. This note summarizes some of the main statutory provisions and outlines the practical implications of the amendments.
Case Note: High Court Determines Interest Rate on Foreign Associated Enterprise’s Overdue Debt
Authors: Dugar A. , Bhandari L.
Published: December 2023

This case note reviews the finding by the Bombay High Court in Principal Commissioner of Income-tax-13, Mumbai v. Tecnimont (P.) Ltd. that notional interest imputed for transfer pricing purposes in respect of the delayed recovery by an Indian resident taxpayer of outstanding receivables from a foreign associated enterprise is to be calculated on the basis of the interest rate that prevails in the associated enterprise’s country, and not on the basis of the State Bank of India’s prime lending rate.