bluuebunny/crossref_metadata_2025 huggingface dataset:
The Legality of the Punitive Deferral of the Exercise of the Right of Deduction
Authors: Gryziak B.
Published: December 2023

In an attempt to address irregularities in VAT returns related to transactions in which, as a rule, the tax due is equal to the input tax (i.e. transactions subject to reverse charges and similar), the Polish VAT legislator has introduced a three-month mandatory period for submitting (adjusting) relative VAT returns. Failure to observe the term results in a deferral of the right to deduct input tax, which in turn leads to the accrual of default interests. A question is pending before the ECJ concerning the legality of this measure. In this article, the author argues that EU law does not preclude such a measure.
The Danish Regime for the Taxation of Passive Income for Groups of
Companies
Authors: Becker-Christensen A. , Bjørnholm N.
Published: December 2023

This article presents a brief overview of the Danish taxation of
passive income with regard to groups of companies, with special reference to
the key features of the Danish controlled foreign company regime as it applies
to such groups.
Cross-Border Loss Relief for Permanent Establishments under EC Law
Authors: Haslehner W.C.
Published: December 2023

This article analyses the jurisprudence of the European Court of Justice on permanent establishments to determine the responsibilities of Member States and their limits in respect of cross-border loss relief from the home state’s perspective. The article reveals apparent inconsistencies and endeavours to answer open questions in this regard.
The Luxembourg Private Foundation: A Flexible Tool for Private Wealth Management
Authors: Schaffner J. , Trouiller F.
Published: December 2023

This article outlines the tax implications of the private foundation, a flexible vehicle to manage assets and to guarantee the continuity of management of a family business, which will be introduced as a means of contributing to the development of the Luxembourg private banking sector.
Characterization of Software Transactions for Tax Treaty Purposes – The
Infrasoft (2013) Case
Authors: Jhabakh P.R.K.
Published: December 2023

This article discusses the recent decision of the Delhi High Court in
the case of Director of Income Tax v. Infrasoft Ltd.
(2013), which distinguished between a transfer of copyright in the
software and a transfer of the right to use the copyrighted material.
The Impact of the Multilateral Instrument on China
Authors: Li N.
Published: December 2023

This article assesses the impact of the BEPS Action 15 Multilateral Instrument (MLI) on China by analysing the preliminary positions and reservations that China made when it signed the MLI and by questioning the compatibility of the MLI Explanatory Statement with the interpretation of Covered Tax Agreements in China. The author contends that implementation of the MLI will increase the discretionary power of tax authorities, which may lead to more uncertainties for taxpayers and more disputes arising from the interpretation and implementation of tax treaties. The author is also concerned that treaty shopping arrangements might increase when the anti-BEPS provisions of the MLI only modify some of the Covered Tax Agreements.
Foreign Exchange Fluctuation and Computation of the Profit Level Indicator: Conflict between Principles of Accounting and of Transfer Pricing
Authors: Korde A.
Published: December 2023

This article discusses the issue as to whether foreign exchange gain or loss should be considered when computing the profit level indicator of the tested party and of comparable companies. The author concludes that it might be better to not include foreign exchange fluctuation in this computation because of the conflict between accounting principles and transfer pricing principles.
Supreme Court Restricts the Scope of the VAT Exemption for the Management of Special Investment Funds in the Netherlands
Authors: Kasteren E. van
Published: December 2023

Defining the term “special investment fund” in the VAT exemption for the management of special investment funds, the Dutch Supreme Court opts to follow the referral of the Fiscale Eenheid X case and rules on the management of a pension fund executing a defined-benefit scheme.
The United States Jumps on the Minimum Tax Train, But Seems to Be on Its Own Track
Authors: Carman P.
Published: December 2023

The United States has adopted a 15% corporate minimum tax based upon financial statement income. Rather than following the OECD GloBE template, the US tax follows a parallel course with similarities and differences.
“Substantial” Light on Indirect Transfer Provisions
Authors: Sharma Shailendra
Published: December 2023

The 2015 Union Budget of India which was presented on 28 February 2015 announced several changes to the indirect transfer provisions in the income tax legislation, specifically by inserting Explanations 6 and 7 to section 9(1)(i) of the Income Tax Act 1961 effective from the financial year 1 April 2015, which have since been enacted. This article elaborates on the amendments and their impact on the future treatment of indirect transfers in India, as well as areas that may require further consideration.
Social Security and Pensions Systems
Authors: Sheehan J. , Ocampo J.
Published: December 2023

This comparative survey aims to provide readers with an understanding of the social security and/or pensions systems in China, India, Indonesia, Japan, Korea (Rep.), Malaysia, Singapore and Thailand.
Three Approaches to Taxing Income from the Digital Economy – Which Is the Best for Developing Countries?
Authors: Astuti M.D.
Published: December 2023

A multilateral solution for taxing the digital economy is awaited. The COVID-19 pandemic, the US withdrawal from the OECD discussions and differing country views mean that the Pillar One talks have been extended to mid-2021. New revenue sources are needed to fund economic recovery. Digital taxation could be an option.
Budget for 2009 –
Tax Increases in a Bear Market
Authors: Leegaard Thor
Published: December 2023

In this note, the author provides details of the
Budget for 2009. The most important changes are to net wealth tax, gift and
inheritance tax, the exemption method in respect of the dividends and gains of
corporate taxpayers and exit taxation. There are also changes to tonnage tax
and the customs regime. Unless otherwise indicated, the changes apply from 1
January 2009.
Opinion Statement ECJ-TF 2/2015 on the Decision of the European Court of Justice in European Commission v. United Kingdom (“Final Losses”) (Case C-172/13), Concerning the “Marks & Spencer Exception”
Authors: CFE ECJ Task Force
Published: December 2023

This is an Opinion Statement prepared by the CFE ECJ Task Force concerning the decision given by the ECJ in European Commission v. United Kingdom (“Final Losses”) (Case C-172/13), on 3 February 2015. This case is in some ways a follow-up to the ECJ’s decision in Marks & Spencer (Case C-446/03) and comments on whether the legislative amendments introduced by the United Kingdom are sufficient to ensure compliance with EU law. After illustrating the case, arguments of the parties and decision of the Court, this Opinion Statement focuses on selected critical points from the Court’s decision and Advocate General Kokott’s Opinion.
UK: Opinion of Advocate General Kokott, 23 October 2014, Case C-172/13, European Commission v. United Kingdom, ECJ Case Law IBFD.
Estimating a COVID-19 Crisis Effect Using AI Techniques
Authors: Schwarz C. , Wessely A. , Hoffmann S. (Sebastian) , Wickerath J. , Lagarden M. , Beckmann M.
Published: December 2023

In December 2020, the OECD released guidance on certain aspects of transfer pricing in view of the disruptive situation created by the COVID-19 pandemic. The comparability analysis was addressed therein as one of the main focus areas with regard to benchmarking and the collection of other quantitative evidence usually employed by corporate taxpayers in their transfer pricing documentation. As the burden of proof remains with the taxpayers and the question which quantitative approaches they could adopt has become highly relevant, this article provides some concrete examples for industry practitioners and other interested stakeholders demonstrating which kind of statistical methods and artificial intelligence-supported quantitative approaches can be employed to deliver robust empirical evidence ex ante for taxpayers’ compliance with the arm’s length principle in their intercompany transactions during a crisis situation like the COVID-19 pandemic and beyond.
VAT Treatment of Goods under Customs Control in Germany
Authors: Bal A.
Published: December 2023

Under EU law, there are various links between customs law and VAT law
with regard to the liability to pay VAT on the importation of goods and on
supplies of goods under customs control. In this article, the author discusses
in particular the latter, optional links from the perspective of Germany and
concludes that, as regards the VAT treatment of inward and outward processing,
the VAT Directive has lost its consistency.
German Federal Tax Court Again Questions Constitutionality of Treaty Override
Authors: Hagemann T. , Kahlenberg C.
Published: December 2023

In a recently published decision, the German Federal Tax Court (Bundesfinanzhof, BFH) once again expressed doubts about the constitutionality of treaty overriding provisions. This article discusses the facts of the case and the reasoning of the Court, and provides a brief comment on the decision.
The taxation of permanent establishments in Canada
Authors: Cockfield A.J.
Published: December 2023

This article examines some of the main features of Canada's tax laws
and policies regarding the taxation of permanent establishments (PEs). The
article discusses the definition of PE in Canada's tax treaties and sets out
the tax laws and policies on agency PEs and the PE fiction permitting the
taxation of non-resident entertainers and athletes. The article also reviews
Canada's approach to attributing profits to PEs under the recent OECD reform
efforts. The article concludes tentatively that Canada appears to be following
a worldwide trend of diluting the "fixed place of business" requirement for a
traditional PE in order to address changing global commercial
realities.
Stricter exit tax on shares in Denmark
Authors: Pedersen B.M.
Published: December 2023

In September 2008, the Danish parliament passed a bill introduced by
the Minister for Taxation in May 2008 which includes, among other things,
stricter rules regarding the exit tax on shares. The changes are designed to
rectify some inappropriate aspects that have led to unintentional application
of the exit tax rules. The stricter rules are effective from the date of
introduction, but they will also affect taxpayers who had emigrated from
Denmark before the bill was introduced. This article discusses the new exit tax
rules.
EU VAT Proposals to Stimulate Electronic Commerce and Digital Publishing
Authors: Bal A.
Published: December 2023

On 1 December 2016, the European Commission presented several proposals to simplify the VAT rules for cross-border electronic commerce. The proposed changes include the extension of the MOSS; simplification of the VAT rules for small businesses; abolition of the exemption for low-value consignments; and the allowance of equal VAT rates for printed and digital publications. In this article, the author discusses and provides an analysis of all those proposed changes.
The European Commission’s Proposal for Double Taxation Dispute Resolution: Turning the Tide?
Authors: Debelva F. , Luts J.
Published: December 2023

The European Commission has recently published its proposal for a Council Directive on double taxation dispute resolution mechanisms. In this article, the authors conclude that, on balance, the Proposal is a welcome first step towards improving the position of the taxpayer in cross-border double taxation disputes.
Swiss Federal Council Opens Public Consultation on Federal Law Concerning Working from Home
Authors: Amaddeo F.
Published: December 2023

On 9 June 2023, the Swiss Federal Council opened a public consultation on the federal law concerning working from home in cross-border circumstances. Based on the lex loci laboris principle, Swiss national rules prevent Switzerland from taxing income from employment carried out abroad without a physical presence in Swiss territory, even if a Swiss employer pays the salary. This note aims to provide an overview of the proposal, evaluating its potential impact on digital nomads.
Opinion Statement of the CFE ECJ Task Force on the Decision of the European Court of Justice of 17 June 2010 in Case C-105/08, Commission v. Portugal, and the Evidential Requirements Imposed by the ECJ in the Context of Infringement Procedures
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, Paul Farmer, Daniel Gutmann, Volker Heydt, Michael Lang, Franck Le Mentec, Pasquale Pistone, Albert Raedler, Stella Raventos-Calvo (Chair), Isabelle Richelle, Friedrich Roedler and Kelly Stricklin-Coutinho. 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.
European Commission v. Hellenic Republic (Case C-98/16): The Third Act of the Greek Tax Tragedy in Europe
Authors: Dafnomilis V.
Published: December 2023

In this note, the author discusses and comments on European Commission v. Hellenic Republic (Case C-98/16). The note also provides an overview of other provisions of the Greek inheritance tax law that have been found to be incompatible with EU law.
Automatic Exchange of Information and BRICS: Why and How Does It Affect Emerging Economies?
Authors: Huang X.
Published: December 2023

In this article, the author canvasses the procedure by which the new international automatic exchange of information mechanism was formulated, addressing the relative roles that powerful Western states and emerging economies (represented by BRICS countries) played in it. The article argues that automatic exchange of information has become a global standard without any significant participation by the developing world. Instead, the approach has been one of “lead and follow”, which has damaged the legitimacy of the process.
Taking Control of the Tax Policy Agenda
Authors: Stappen R. van der
Published: December 2023

Corporate tax practices are coming under greater political and media scrutiny. Tax transparency is becoming the new normal, while tax fairness remains a political objective. Multinationals should be adapting their processes to the new tax environment so as to better manage tax-related reputational risk.
Case Study Analysis of the OECD Pillar One and Pillar Two Allocations to Developing Countries – What Has Changed Since the 2020 Blueprints?
Authors: Fedan A.
Published: December 2023

This article reviews the changes to the OECD’s Pillar One and Pillar Two solutions since the 2020 Blueprints by updating the case-study approach simulating the operation of the proposals under three profit-shifting schemes. The analysis reveals significant changes to Pillar One and Two integration and further increases tax revenue unpredictability.
VAT Cash Accounting Scheme – Lessons from Bulgaria
Authors: Krastanov S.
Published: December 2023

The VAT cash accounting scheme was introduced in Bulgaria at the beginning of 2014. In this article, the author discusses practical aspects of the implementation of this regime into the local legislation, its advantages and disadvantages, and most importantly, raises the question to what extent it is popular amongst the small businesses for which it is intended.
Consultation Paper on the Tax Challenges Arising from the Digitalization of the Economy
Authors: Butler M. , Mai K.
Published: December 2023

The authors examine a Consultation Paper released by the Australian Treasury in October 2022 seeking comments on the OECD’s two-pillar response to the challenges posed by the digitalization of the world economy. By way of preliminary comment, there will be significant challenges in Australia meeting the OECD timelines, which envisage Pillar Two coming into effect in 2023 and Pillar One in 2024. However, given the Australian government’s strong support for OECD and G20 initiatives, it seems likely Australia will commit, to the extent possible, to implementing the new global agreement in accordance with the OECD timetable.
Closing the Geelen Loophole and Creating New Issues
Authors: Merkx M.
Published: December 2023

With its judgment in the Geelen case, the ECJ created a potential loophole for suppliers of online entertainment, etc., services to offer services to EU consumers without EU VAT. This loophole is being closed as of 1 January 2025 by amendments to the place-of-supply rules. At the same time it will be possible for Member States to apply reduced VAT rates to the online equivalent of services like exhibitions, cultural events and physical exercise classes. Though the new rules are in the author’s view to be welcomed, they also create new issues and questions, which are addressed in this article.
Tax Shelter Regime for Start-Ups: Finally Up and Running
Authors: Goemaere T. , Hoogendijk F.
Published: December 2023

This note discusses recent developments regarding the tax shelter for start-ups, which, although enacted more than a year ago, remained dead letter until the recent enactment of the Bill on Various Provisions of 5 October 2016.
Interpreting the Factor of Dominion in Conduit Company Cases
Authors: Jain S. , Prebble J.
Published: December 2023

The factor of dominion should be interpreted in the light of the object and purpose of double tax treaties. Such an approach in turn helps courts to interpret the beneficial ownership requirement in the same manner as they interpret a general anti-avoidance rule. Certain courts have adopted this approach and come to the correct result.
New developments in the general anti-abuse rules and the impact on
international tax planning
Authors: Yang H.
Published: December 2023

The author discusses China's new anti-abuse rules and two recent tax
cases involving the application of these rules to stock transfer transactions.
The author also discusses the practical impact of these legal and judicial
developments and the tax aspects that should be considered when setting up
corporate structures and undertaking corporate restructuring activities in
China.
Pension Funds and Regulatory Developments
Authors: Haan J. de , Mulder W. , Tali Z. , Uittenbogaard-de Planque M. , Zebregs B.
Published: December 2023

In its White Paper on Pensions, the European Commission came up with proposals to strengthen the pension systems across Europe, including the revision of the IORP Directive. These proposals for new regulation should take into account the differences between the national pension systems. Financial market regulation impacts pension funds, as well. EMIR and AIFMD may serve as very relevant examples thereof. The authors consider the impact of these various European initiatives impacting pension funds.
Practical Information on European VAT
Authors: Annacondia F.
Published: December 2023

As is traditional in the first issue of each year, the green annex presents the key features of the VAT systems of most European countries (both EU and non-EU), including standard and reduced VAT rates, various thresholds, the format of the VAT identification numbers and contact details of the offices of the national tax administration which process VAT refund applications or provide information to non-resident businesses on national VAT rules. The overview is compiled by the editor on the basis of information provided by the International VAT Monitor’s correspondents at the beginning of 2016.
Tax Rules Applicable without Distinction and the EU Internal Market Freedoms – An Analysis of Recent Case Law Regarding Taxation of Investment Income
Authors: Zalasiński A.
Published: December 2023

This article analyses recent case law regarding the taxation of investment income, focusing on the interplay between tax rules that apply without distinction and the essential concepts of the internal market. The article, in particular, provides a detailed analysis of the ECJ decisions in van Casters (Case C-326/12) and van der Weegen (Case C-580/15).
The Taxation of the “Sharing Economy”
Authors: Beretta G.
Published: December 2023

This article investigates the phenomenon of the “sharing economy” from a tax policy perspective. In particular, the author analyses the tax challenges resulting from this new model of production and consumption and discusses possible tax policies to address development of the sharing economy.
The Newly Implemented Interest Deduction Limitation Rule
Authors: Sigurvaldadottir V.
Published: December 2023

The author, in this note, examines the new interest deduction limitation rule in article 57(b) of the Income Tax Act, comparing it with the recommended best practice approach of the OECD in BEPS Action 4 and commenting on its shortcomings.
The U.S. Border Tax and Its Implications for the EU
Authors: Englisch J. , Becker J. (Johannes)
Published: December 2023

In this article, the authors examine how U.S. tax reform plans, including a destination-based cash flow tax with border tax adjustment, could affect EU member states.
The Risky Side of Transfer Pricing: The OECD Base Erosion and Profit Shifting Reports Sharpen the Rules on Risk Allocation under the Arm’s Length Standard
Authors: Verlinden I. , Ledure D. , Dessy M.
Published: December 2023

The OECD developed a detailed framework for risk (re-)allocation under the BEPS Action 9 report. This article provides an overview of risk identification, delineation and allocation under this framework and comments on certain issues pertaining to the interpretation thereof.
New Developments Regarding Transfer Pricing Documentation Requirements under the 2016 Finance Act
Authors: Douvier P-J. , Benamran J.
Published: December 2023

The authors consider the country-by-country reporting requirement that has been introduced by the French 2016 Finance Act; they also present the draft law that could introduce a public country-by-country reporting requirement in France and the resulting concerns for taxpayers regarding confidentiality.
Opinion Statement ECJ-TF 1/2017 on the Decision of the Court of Justice of the European Union in SECIL (Case C-464/14) Concerning the Free Movement of Capital and Third Countries
Authors: CFE ECJ Task Force
Published: December 2023

This is an Opinion Statement prepared by the CFE ECJ Task Force on SECIL (Case C-464/14), in which the 5th Chamber of the Court of Justice of the European Union (ECJ) delivered its decision on 24 November 2016,
PT: ECJ, 24 Nov. 2016, Case C-464/14, SECIL – Companhia Geral de Cal e Cimento SA v. Fazenda Pública, ECJ Case Law IBFD.
following the Opinion of Advocate General Wathelet of 27 January 2016.
PT: Opinion of Advocate General Whatelet, 27 Jan. 2016, Case C-464/14, SECIL – Companhia Geral de Cal e Cimento SA v. Fazenda Pública, ECJ Case Law IBFD.
The case concerned the discriminatory Portuguese taxation of dividends received by corporate shareholders from their subsidiaries in third states, namely in Lebanon and Tunisia. In a clear and instructive decision, the Court not only clarified the scope and impact of the Treaty provisions on the free movement of capital, but also the legal ramifications of the Euro-Mediterranean Agreements with Lebanon and Tunisia.
Of hedges and cacao beans : Supreme Court ruling on hedge accounting for
tax purposes
Authors: Peelen S. , Kasteren B. van
Published: December 2023

The Dutch Supreme Court recently issued a ruling in the Cacao beans
case, which concerned the accounting treatment for tax purposes of certain
hedge contracts. In addition to an analysis of this significant case, the
authors provide a brief introduction to the basic principles of Dutch tax
accounting. The relevant case law in this respect and the basic rules for hedge
accounting under International Financial Reporting Standards are also
considered.
Opinion Statement FC 1/2020 on the Harmonization of VAT Penalties in the European Union
Authors: CFE Fiscal Committee
Published: December 2023

This Opinion Statement, submitted on 6 March 2020, discusses issues surrounding the justification for harmonization of VAT penalties in the European Union.
Lower Courts Rule
on Compatibility of Transfer Pricing Rules with EC Law
Authors: Perdelwitz Andreas
Published: December 2023

In February 2008, the Tax Courts of Düsseldorf and Münster rendered
two judgments involving income adjustments based on Sec. 1 of the Foreign Tax
Code (AStG) in which they expressed doubts about the compatibility of German
rules with EC law. The Tax Court of Münster even held that Sec. 1 of the AStG
is incompatible with the freedom of establishment. In this article, the author
considers the two judgments and their possible implications.
The Amended Convention on Mutual Administrative Assistance in Tax Matters: A Powerful Tool To Counter Tax Avoidance and Evasion
Authors: Pross A. , Russo R.
Published: December 2023

This article examines the primary features of the Convention on Mutual Administrative Assistance in Tax Matters as recently amended by the 2010 Protocol.
Bulletin 6: China Completes the Revamping of Its Transfer Pricing Regime
Authors: Yuan S. , Zhao A.
Published: December 2023

The authors consider the key directives recently introduced under China’s new transfer pricing rules and their implications for multinational’s transfer pricing planning and audit defence. Potential strategies are also suggested for multinationals to safeguard their tax interests in China.
Tax Disincentives Arising from Judicial Decisions on the Deductibility of Expenses
Authors: Yussof S.H.
Published: December 2023

Using accounting standards as a benchmark for a neutral tax base, this article identifies tax disincentives arising from judicial doctrines in Malaysia that in effect penalize taxpayers by denying or delaying the deductibility of certain non-personal expenditures. Failure by the legislature to overturn the decisions is treated as implicit endorsement of the outcome. Each disincentive is therefore subject to conventional tax expenditure analysis to determine whether the non-revenue goals are appropriate and whether tax penalties are an effective way of achieving the desired outcomes.
Temporary Cost
Sharing Regulations: A Comment
Authors: Keates H.A. , Muylle R. , Wright D.R.
Published: December 2023

The US Treasury issued cost sharing regulations in 1995,2005 and 2008.
This article considers why these regulations are important for all intangible
transfers as well as for the provision of services, and examines the changes in
the cost sharing regulations over time. The impact on the future of cost
sharing and other issues that are relevant to today’s transfer pricing planning
and auditing are also considered.
The Netherlands Following the Recent Starbucks NL Decision
Authors: Dulmen M. van
Published: December 2023

In this article, the author explains the position of the Netherlands and of Starbucks NL in respect of the Commission’s 2015 State aid decision, outlines the General Court’s decision in the case, discusses the case’s impact and clarifies where the Netherlands now stands with respect to State aid.
The Effect of Global Intangible Low-Taxed Income on US Investment in Australia
Authors: Joseph A.
Published: December 2023

The author, in this article, considers the implications of the introduction of the concept of global intangible low-taxed income by the US Tax Cuts and Jobs Act of 2017, with its stated intention of encouraging companies to invest in the United States, for US investment in Australia.
Non-Discrimination
Provisions at the Intersection of EC and International Tax Law
Authors: Santiago Bruno
Published: December 2023

The purpose of this article is to propose the basis
for what could be a future nondiscrimination provision in an EU Model
Treaty or a Multilateral Double Taxation Convention entered into between the
Member States. In this respect, the author focuses on the concept of
non-discrimination, notably the similarity test required, and attempts to find
reasonable and identified criteria to deal with this concept.
Taxation of equity-linked bonds and other composite contracts
Authors: Grönlund J.
Published: December 2023

Over the last decade the extent of investments in composite contracts
has grown explosively in Sweden. This new market has enticed most Swedish
financial institutions to produce a great number of different new financial
instruments. This article presents a summary of the Swedish tax treatment of
composite contracts and considers some of the tax issues regarding these
instruments.
Bermuda: A Canary in the Pillar Two Coal Mine
Authors: Rodulfo C.
Published: December 2023

At the beginning of the 20th century, miners began bringing a canary into the mines, to serve as an early warning sign of danger from toxic gases. The phrase “canary in the coal mine” has since been used to indicate potential success or failure. Bermuda, one of seven low- or no-tax Caribbean jurisdictions, has begun consultations on adopting a corporate income tax in 2025. Carissa Rodulfo examines whether Bermuda’s experience might serve as a canary in the coal mine, when it comes to developing nations adopting the Pillar Two global minimum tax.
Stock Connect Programme: The Open Sesame to a Strong Chinese Capital Market
Authors: Wu (Moya) C.L.
Published: December 2023

In considering the highly regarded Shanghai-Hong Kong Stock Connect programme, this article offers a brief comparison with other investor regimes and summarizes some key trading and clearance arrangements under the Stock Connect programme, including northbound and southbound trading. Relevant taxes and fees charges under the existing Stock Connect programme, along with potential future developments and reactions of competitors are also discussed.
Tax Litigation in the Federal Courts of the United States: The Role of Precedent in a Changing Legal Environment
Authors: Marvel L.P.
Published: December 2023

In this article, the author considers the role of precedent in deciding federal tax cases in the United States.
Eligibility for Mutual Agreement Procedure under Tax Treaties Following Application of the Principal Purpose Test
Authors: Markey B. , Gisquiere T.
Published: December 2023

The principal purpose test (PPT) can result in the denial of treaty benefits to taxpayers. This article sets out why the application of the PPT should not prevent eligible taxpayers from initiating a request for a mutual agreement procedure (MAP) to resolve taxation or interpretation issues relating to the PPT.
US Base Erosion and Anti-Abuse Tax vis-à-vis Indian Transfer Pricing Regime: Impact on Indian Enterprises
Authors: Loya A.S.
Published: December 2023

The base erosion and anti-abuse tax (BEAT) is an innovative tax that was introduced by the US Congress under the Tax Cuts and Jobs Act 2017 in order to curb base erosion. The tax is charged on transactions undertaken by a US taxpayer with a foreign related person. However, there is a blanket imposed over each and every transaction between a US taxpayer and a foreign related person. No consideration is given to the strong transfer pricing regime adopted by countries such as India, which ensures that if an Indian entity is undertaking a transaction with a US entity, the transaction will take place at arm’s length price and the tax base of the United States is not eroded.
The Taxation of Hidden Profit Distributions under Bulgarian Law
Authors: Tzenova L.
Published: December 2023

In this note, the author defines hidden profit distributions under Bulgarian law, describes the scenarios in which enterprises make hidden profit distributions, outlines the consequences of a hidden profit distribution and comments on revelant case law in this area.
Multilateral Instrument Opens Window for Alternate Dispute Resolution for Indian Companies
Authors: Timbadia B.
Published: December 2023

In this article, the author examines the implications for India as a signatory to the OECD’s multilateral instrument to implement treaty-related measures to prevent base erosion and profit shifting. In particular, the article considers the implications of the multilateral instrument’s mandatory dispute resolution mechanism and India’s adoption of the corresponding relief provision in opening up opportunities for Indian taxpayers to utilize advance pricing agreements more widely in the future.
Consequences of an Arbitrary Distinction – The Debt-Equity Conundrum
Authors: Brown P.A. , Lambooij M.
Published: December 2023

This article is the seventh 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 Supreme Court Decision in the Government Pension Investment Fund Case: A Tale of Transparency and Beneficial Ownership (in Plato’s Cave)
Authors: Gusmeroli M.
Published: December 2023

This article addresses a Supreme Court case involving a Japanese pension fund investing in Italy via a US partnership managed by a Japanese bank. It is held that, without a beneficial ownership clause, there can be no attribution of income paid to a transparent entity to a participant or of income paid to an agent to the principal.
Czech Supreme Administrative Court on Beneficial Ownership
Authors: Fekar Pavel
Published: December 2023

On 10 June 2011, the Czech Supreme Administrative Court issued a decision on the beneficial ownership concept within the context of tax treaties following the 1963 OECD Model Tax Convention.
The Status of the OECD Commentary in Netherlands Supreme Court Case Law
Authors: Vergouwen T.M. (Mees) , Pötgens F.P.G.
Published: December 2023

In this article, the authors provide an in-depth analysis of the status that the Netherlands Supreme Court attributes to anterior, as well as posterior, Commentary on the OECD Model when interpreting tax treaties.
The Belgian
Implementation of the EC Merger Directive and Associated Tax Law
Amendments
Authors: Tahon Marc
Published: December 2023

In this article, the authors outline the specific
provisions and implications of the introduction of the EC Merger Directive
(hereinafter: the Directive) into Belgian tax law. The
authors, however, first highlight the main changes that, at the same time, were
introduced into the existing restructuring tax rules.
Recovery of VAT in Spain
Authors: Rovira Ferrer I.
Published: December 2023

The Spanish VAT legislation is based on EU law and must comply with
the principles of EU law, as defined by the Court of Justice of the European
Union (ECJ). In this article, the author discusses the question of whether the
Spanish arrangements on refunding excess input VAT when the right to deduct has
expired and the arrangements on refunding VAT that was not legally due are in
line with EU law, as interpreted by the ECJ.
What Does the EU VAT Actually Tax?
Authors: Amand C.
Published: December 2023

The EU VAT system does not tax every type of consumption. Conversely, socially desirable services and financial services are only taxed on their production. From the structure of the EU VAT system and the objectives of the EU treaties, but also from the ECJ case law and empirical observations, it appears that the EU VAT is intended not to tax production as far it has an impact on cross-border transactions in an internal market. Therefore, “single general sales tax” or GST would be an appellation closer of the reality of this tax system.
Seeking Certainty – Advance Ruling Practices
Authors: Walker J. (John)
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.
News and Clarifications on the Tax Residence of Collective Investment
Vehicles and on the Corporate Tax Exposure for European Investment Fund
Managers
Authors: Arginelli P. , Avella F.
Published: December 2023

The authors comment on the new provisions introduced in Italy with
regard to the tax residence of collective investment vehicles and on the
positions taken by the Italian Revenue Agency in that regard, as well as with
regard to the corporate tax exposure for European investment fund managers
constituting collective investment vehicles under Italian law.
Tax Avoidance and Transfer Pricing
Authors: Andrus J.L.
Published: December 2023

The author describes the use of transfer pricing as an anti-avoidance tool, the problems with existing transfer pricing rules and the ways in which the transfer pricing system can be improved.
New Trends in the Brazilian Financial Market
Authors: Takano C.A. , Przepiorka M.
Published: December 2023

This article aims to provide an overview of the recent updates of the Brazilian legal system, presenting the main issues that may affect the attraction of foreign investments and the challenges regarding the financial market that arise in the current Brazilian legal framework.
Australian VAT Design and Federalism
Authors: D’Ascenzo M.
Published: December 2023

In this article, the author outlines the historical context for the operation of the GST in Australia and its integration in the financial relations between the federal and state governments. The Australian experience is contrasted with Brazil’s federal and state VAT regimes and the Brazilian approach to the allocation of taxing rights. In this article, the author argues that the idea of centrally collecting a national VAT/GST to replace fragmented state taxes and then distributing the revenue on an untied basis to the states may be a pathway for reform for federal countries – but it is an approach that could both challenge and evolve the nature of the federation.
Plugging the Bosal Gap: The Story of Good and Bad Participations
Authors: Faber S.
Published: December 2023

After years of debate among tax practitioners and among politicians, the Dutch caretaker government led by Prime Minister Mark Rutte managed to settle the Bosal issue by rushing a tax bill through parliament in the space of five weeks, well in time before the general elections of September 2012. This article briefly sketches the history of the Bosal gap and sets out the key features of the new law.
Situs of Intangible Assets: Marketing versus Trade Intangibles
Authors: Puri S.
Published: December 2023

This article examines whether the situs of intangibles can be
determined and discusses the tax treatment of transactions involving the
transfer of such assets under domestic laws and tax treaties.
New Developments in the Application of the Interest Deduction Limitation in Iceland
Authors: Sigurvaldadottir V.
Published: December 2023

A new interest deduction limitation rule was introduced in Iceland on 13 October 2016, which limits the deduction of interest expenses to 30% of EBITDA. This note focuses on legislative changes made in 2017 with regard to the rules, as well as the conclusion of the Directorate of Internal Revenue that only gross interest expenses should be considered in determining the interest deduction limitation.
Revision of the Special Considerations for Intangibles in Chapter VI of the OECD Transfer Pricing Guidelines and Related Provisions
Authors: Helderman L. , Sporken E
Published: December 2023

This article examines the OECD’s discussion draft of Chapter VI from a Dutch transfer pricing perspective. The new OECD Chapter VI (to be included in the OECD Transfer Pricing Guidelines when finalized) aims to provide further guidance on intangibles.
EU Standard VAT Return – A Real Tool or Just “Nice To Have”?
Authors: Desmeytere I.
Published: December 2023

In this article, the author discusses that the "standard" VAT return,
as proposed by the European Commission, is not effective as a tool for the tax
authorities to carry out a first check. Instead of focusing on standardizing
VAT returns, the Commission should pay more attention to standardizing VAT
books.
The State Administration of Taxation’s Efforts towards
Anti-Avoidance
Authors: Zhang Y. (Ying)
Published: December 2023

This article provides an insight into the State Administration of
Taxation’s recent and proposed approaches in curbing tax avoidance.
Secondary Establishments in EU VAT and Treaty Law
Authors: Bal A.
Published: December 2023

This article compares the concept of secondary establishment for direct and indirect tax purposes, as defined in the OECD Model (2014), the UN Model (2011) and the EU VAT Directive (2006/112). It also examines recent developments regarding the interpretation of the fixed establishment concept by the ECJ and possible modifications to the permanent establishment concept stemming from current discussions on the taxation of the digital economy.
Changes in the Taxation of Permanent Establishments in Germany
Authors: Kempf A. , Jakob M.
Published: December 2023

The authors consider recent changes to the taxation of permanent
establishments in Germany and the potential effects thereof on
taxpayers.
Revisiting Business Restructuring in Light of Israeli Court Decisions and Circulars
Authors: Hubscher S. , Houlie J. (Jacky)
Published: December 2023

In April 2019, the authors published in the International Transfer Pricing Journal an article that addressed, inter alia, OECD and Israeli principles of business restructuring, focusing on the various resulting models, such as outright sale and licensing structures. Since then, however, an Israeli tax court has reached a legal decision that changes the landscape and this article will therefore revisit certain transfer pricing aspects of business restructuring in Israel.
The Increasing Liability of Digital Platforms in the Collection of EU VAT
Authors: Matesanz F.
Published: December 2023

In this article, the author describes the cases in which digital platforms mediating and facilitating certain supplies of goods and services assume responsibility for collecting VAT instead of the underlying suppliers due to the so-called “deemed provisions”. The author also analyses many other different situations in which platforms are responsible for collecting VAT. It cannot be ruled out that these situations will increase in the future. Therefore, the author explains that we are faced with new ways of managing VAT.
Bitcoin and EU VAT
Authors: Wolf R.
Published: December 2023

A relatively new phenomenon is the appearance of cryptocurrencies with
bitcoins as their most prominent representative. In this article, the author
discusses the VAT aspects of the use, exchange and mining of bitcoins under the
EU VAT system.
New Guidance on Italian Participation Exemption
Authors: Zanotti E. , Bono B.
Published: December 2023

This note summarizes the main aspects of the Guidance recently issued
by the Italian Revenue on the participation exemption regime applicable to
capital gains.
Trump’s Tax Reform Plan: A Chinese Perspective
Authors: Li N.
Published: December 2023

In this article, the author discusses two directions that the Chinese government could take in response to President Trump’s tax reform plan: (1) engage in tax competition with the United States; or (2) ignore Trump’s proposal and adhere to China’s own plans for tax reform.
From Autarchy to Globalization to Where?
Authors: Dickinson F.
Published: December 2023

In this Editorial, the Managing Editor of the Bulletin
for International Taxation looks back over the 75-year history of IBFD,
or International Bureau for Fiscal Documentation.
Preliminary Judgments in the EU Beneficial Ownership Cases
Authors: Møllin Ottosen A. , Andersen S.
Published: December 2023

This article discusses the recent Danish Beneficial Ownership cases before the ECJ and analyses more deeply the ECJ’s interpretation of the term “beneficial ownership” in light of the Interest and Royalties Directive (2003/49/EC), the EU Parent-Subsidiary Directive (2011/96) and the treaty freedoms.
Compatibility of the Icelandic CFC Rule with the EEA Agreement
Freedoms
Authors: Guðmundsson B. , Jóhannesson P.
Published: December 2023

The authors, in this article, discuss the Icelandic CFC rule, which
was introduced in 2009 following the ECJ decision in
Cadbury Schweppes
. The authors argue
that the rule infringes the freedom of establishment as laid down in Art. 31 of
the EEA Agreement. They further take the position that the provision, although
justified by the need to prevent tax avoidance is not proportionate.
Commission
Authors: Xygka A.
Published: December 2023

This overview highlights the Commission’s (i) 2022 annual report on the protection of the European Union’s financial interests and the fight against fraud, (ii) call on 17 Member States to transpose the EU Public Country-by-Country Reporting (CbCR) Directive, (iii) closing of infringement procedure against Spain regarding non-communication of ATAD measures implementing exit tax rules, (iv) closing of infringement procedure against Spain regarding obligation of non-resident taxpayers to appoint a tax representative, (v) closing of infringement procedure against Spain regarding non-communication of ATAD 2 measures implementing rules on hybrid mismatches and (vi) approval of German scheme to support private investments in strategic goods to foster the transition to a net-zero economy under State aid rules, (vii) Hungarian aid scheme for accelerated investments in strategic sectors to foster the transition to a net-zero economy, and (viii) amendment of Spanish scheme granting tax deductions to film and other audiovisual work producers.
Tax Shelter for Scale-Ups
Authors: Lambillon O. , Hoogendijk F.
Published: December 2023

In this article, the authors outline the conditions for qualifying for the new tax shelter for scale-ups.
The Recent Decisions of the European Commission on Fiscal State Aid: An Analysis from a Transfer Pricing Perspective
Authors: Miladinovic A. , Petruzzi R.
Published: December 2023

In this article, the authors aim to take a closer look at the transfer pricing aspects of some of the European Commission’s recent decisions on fiscal State aid and further discuss its views on the application of the arm’s length principle in the cases analysed so far.
Nokia and World Comm: The Conundrum of Receiving Global Discounts
Authors: Echevarría Zubeldia G.
Published: December 2023

The ECJ’s World Comm decision deals with adjustments resulting from rebates granted globally by a Finnish company (Nokia) to a Romanian company (World Comm) without distinguishing between those referring to intra-Community transactions and those affecting domestic transactions. In this article, the author examines whether the decision issued by the ECJ results in an unjust enrichment of the tax authorities that audited the taxable person.
Will FTX and Other Bad Apples Spoil the OECD’s Low-Hanging Fruit Approach to Cryptoasset Reporting?
Authors: Michel B.
Published: December 2023

The OECD will soon implement a system for reporting cryptoasset transactions to tax authorities around the world, the Crypto Asset Reporting Framework (CARF), modelled after the Common Reporting Standard. Bob Michel describes how the CARF is supposed to work and explains why – following the “crypto winter” of 2022 – it may not achieve its intended purpose.
Tax Aspects of Private Equity Funds in Italy
Authors: Di Cesare F. , Vannini A.
Published: December 2023

This article provides a brief overview of selected tax considerations applicable to Italian private equity (and venture capital) funds, focusing in particular on taxation applicable to the income realized by such funds and their investors, including non-resident investors. Specific comments with regard to the entitlement of Italian private equity funds to tax treaties are also provided. Further, no Italian VAT issues are dealt with in this article.