bluuebunny/crossref_metadata_2025 huggingface dataset:
Sale of Compulsorily Convertible Debentures Taxable Interest Income under the India–Mauritius Income Tax Treaty (1982)
Authors: Jhabakh P. Raj Kumar
Published: December 2023

This article analyses the recent ruling and the approach of the Indian Authority for Advance Rulings (AAR) in the case of Z regarding the India–Mauritius Income Tax Treaty (1982), and the AAR’s conclusion that the sale of compulsorily convertible debentures was interest income rather than capital gains.
New Tax Legislation on Transfer Pricing and Its Compatibility with EU Law
Authors: Mavraganis G.S.
Published: December 2023

New tax legislation introduces new rules on transfer pricing, including documentation. The author analyses the new provisions and asserts that the new rules appear to be in breach of the EU fundamental principles as reflected in the Treaty Establishing the European Community.
Deduction of Import VAT: Relevance of Ownership as of Importation?
Authors: Bieber T. , Gläser L.
Published: December 2023

Some tax administrations and tax courts of EU Member States require that taxable persons claiming import VAT deduction had power of disposal over the goods as of their importation. Based on recent case law of the Court of Justice of the European Union, the authors demonstrate that, contrary to this view, any taxable person presenting customs import documents specifying him as consignee or importer of goods should be entitled to import VAT deduction if he is either the owner of the goods (or obtains the right to dispose of the goods as owner) or, alternatively, can prove that “the cost of the input services is incorporated either in the cost of particular output transactions or in the cost of goods or services supplied by the taxable person as part of his economic activities”.
May a Server Create a Permanent Establishment? Reflections on Certain
Questions of Principle in Light of a Swedish Case
Authors: Monsenego J. (Jérôme)
Published: December 2023

The author considers a Swedish court case that provides an interesting
contribution to the debate on servers as permanent establishments. The
attribution of profits to a permanent establishment created by a server is also
discussed.
(Re)defining the Balance between Tax Transparency and Tax Privacy in Big Data Analytics
Authors: Mazzoni G.
Published: December 2023

This article considers the implications of the collection and the use of Big Data as it may affect tax transparency, tax authorities and the rights of taxpayers.
Opinion Statement ECJ-TF 4/2019 on the ECJ Decision of 26 February 2019 in X-GmbH (Case C-135/17), Concerning the Application of the German CFC Legislation in Relation to Third Countries
Authors: CFE ECJ Task Force
Published: December 2023

This CFE Opinion Statement, submitted to the EU institutions on 12 December 2019, comments on the decision in X-GmbH (Case C-135/17), in respect of which the Court of Justice of the European Union (Grand Chamber) (ECJ) delivered its decision on 26 February 2019. In general terms, the ECJ largely followed the Opinion given by Advocate General Mengozzi on 5 December 2018.
The OECD on Taxation and Philanthropy: An Australian Report Card
Authors: O’Connell A.
Published: December 2023

In this article, the author considers the findings of the OECD report on Taxation and Philanthropy in general, with special reference to its application to charitable and related entities in Australia.
Court Decision in General Motors Uruguay – The Importance of Marketing Intangibles, Local Market Characteristics and Local Comparables in a Comparability Analysis
Authors: Santos M.J.
Published: December 2023

December 2021, the first court case in Uruguay on the application of the current transfer pricing regulations was concluded. After a thorough functional analysis and providing voluminous evidence of more than 11.000 sheets, the tax administration succeeded in demonstrating the existence of marketing intangibles in the transaction under analysis. The judgment in this case recognizes the importance of local market characteristics as relevant comparability factors that have to be taken into account in the comparability analysis, especially in circumstances in which there is publicly available information on national enterprises that perform similar activities to the taxpayer.
Commission
Authors: Morales T.
Published: December 2023

This overview highlights the Commission’s (i) proposals to authorize Sweden and France to continue to apply a reduced rate to electricity provided to vessels berthed in ports and (ii) report on the latest figures on the VAT Gap for 2018.
Opinion Statement FC 3/2017 on the Proposed Directives for the Introduction of a Common Corporate Tax Base and Common Consolidated Corporate Tax Base
Authors: CFE Fiscal Committee
Published: December 2023

This CFE Opinion Statement, submitted to the European Institutions on 9 June 2017, discusses the proposed directives for the introduction of a common corporate tax base and common consolidated corporate tax base.
Optimizing the Use of Corporate Tax Losses in Luxembourg: A
Comprehensive Technical Analysis
Authors: Hoor O.R.
Published: December 2023

As the global economic downturn will leave no stone unturned, tax
managers should pre-empt future growth by developing strategies to use tax
losses in the most tax-efficient manner. This article aims to provide a
comprehensive technical analysis of tax loss utilization by Luxembourg
companies.
The Text of and the Commentary on Article 25 – Round-Up of the Changes and Their Significance
Authors: Devillet C.
Published: December 2023

The resolution of disputes arising from the interpretation and application of tax treaties is an important issue both for taxpayers and the governments of the contracting states. Tax treaties must, therefore, provide for a mechanism that ensures an effective resolution of such disputes.
Mutual Agreement Procedure Arbitration in Developing Countries – The ASEAN Experience
Authors: Adam Z.
Published: December 2023

This article examines mutual agreement procedure (MAP) arbitration in general and in developing countries, with a particular focus on MAP experiences of the countries forming the Association of Southeast Asian Nations (ASEAN).
Is Germany’s Latest Amendment to Its Anti-Treaty/Directive Shopping Rules Fully Compliant with EU Law?
Authors: Daba B.T. , Engers T. , Hop G-J.
Published: December 2023

In this article, the authors address the purpose and scope of section 50d(3) of the German Income Tax Act (the anti-treaty/directive shopping rules), the status of the current and previous versions of section 50d(3) and the impact of various ECJ and German court decisions. They then provide a comprehensive analysis of the revised version, which entered into force on 9 June 2021. Finally, the authors reflect on the implications of the revised section 50d(3) on holding companies.
“FAR” to “FAIR”: Countering Environmental Damage by Making Transfer Pricing Fairer and More Equitable
Authors: Sehra S.V. , Tiwari A.
Published: December 2023

Externalities like environmental pollution are comparability factors that remain invisible under existing transfer pricing rules. A separate evaluation of these externalities will enable a more accurate determination of the arm’s length price and may lead to redistribution of intra-group profits to polluting constituent entities, thereby augmenting revenue of jurisdictions that bear the environmental cost.
ESG Financing in the Netherlands: Key Considerations in a Growing Market
Authors: Kool J.T.
Published: December 2023

The financial sector plays a key role in ensuring that funds are reoriented towards sustainable investments. Various instruments can be used, including use-of-proceeds and sustainability-linked instruments. Use-of-proceeds instruments are suitable if funds are required for a specific green and/or social project. Funds made available under sustainability-linked instruments can be used for general purposes and are suitable to improve the sustainability profile of the lender. Both lenders and borrowers should consider which and in what way these instruments are used and documented. Transparency and verification of data and standards are key topics and should safeguard the integrity of the ESG financing sector and to prevent greenwashing, considering the capacity of the borrower and the costs involved. Further standardization of documentation, benchmarks and taxonomy will help achieving these objectives.
The Attribution of Profits to a Dependent Agent PE – If the Dependent Agent Is a Commissionaire (Wholly Owned Subsidiary) of the Principal
Authors: Drobnik P.
Published: December 2023

In this article the author proposes – based on numeric examples – an attribution of profits to a dependent agent PE where the PE is created by a commissionaire. The topic is discussed as a result of recent changes to the definition of “dependent agent PE” under BEPS Action 7 and in the context of 2016 and 2017 OECD “profit attribution” discussion drafts. The analysis takes into account the impact of the revised TP Guidelines on risk under BEPS Actions 8-10 and the overlap between the concepts of significant people functions under the AOA and risk control functions under the revised TP Guidelines. The discussion will be based on three scenarios: (i) where the contractual allocation of risks and assets is aligned with the actual control over them, (ii) where there is a mismatch between the contractual arrangements and the control over the risks and assets and (iii) where the revised TP Guidelines and PE profit attribution rules interact with each other in cases of a mismatch outlined above.
Practical Information on European VAT
Authors: Annacondia F.
Published: December 2023

As is traditional in the first issue of each year, this overview presents the key features of the VAT systems of most European countries (both EU and non-EU), including standard and reduced VAT rates, various thresholds, the format of the VAT identification numbers and contact details of the offices of the national tax administration which process VAT refund applications or provide information to non-resident businesses on national VAT rules. The overview is compiled by the editor on the basis of information provided by the members of the European Knowledge Group of IBFD and the International VAT Monitor’s correspondents at the beginning of 2020.
The Role of International Cooperation in Preventing Tax Evasion: A
Critique on “Assistance in the Collection of Taxes” – A South African
Perspective
Authors: Oguttu A.W.
Published: December 2023

In this article, the author discusses the effectiveness of the legal
framework for assistance in tax collection, with particular focus on South
African developments.
VAT in United Arab Emirates, Saudi Arabia and Bahrain - Transitional Rules
Authors: Scalia R.
Published: December 2023

VAT was introduced in the United Arab Emirates and Saudi Arabia on 1 January 2018, implementing the GCC VAT Unified Agreement. Bahrain introduced VAT on 1 January 2019. In this article, the author describes the transitional rules applicable to existing business contracts at the time of implementation of a new VAT system in those countries, based on the general provision concerning transitional rules under the GCC VAT Agreement.
Opinion Statement ECJ-TF 1/2023 on the ECJ Decision of 16 February 2023 in Gallaher Limited (Case C-707/20), on the Taxation of Capital Gains in Intra-Group Transfers
Authors: Kofler G. , Garcia Prats A. , Haslehner W. , Kemmeren E. , Nogueira J.F. Pinto , HJI Panayi C. , Raventós-Calvo S. , Richelle I. , Rust A.
Published: December 2023

In this CFE Opinion Statement, submitted to the EU Institutions in June 2023, the CFE ECJ Task Force comments on the ECJ decision in Gallaher Limited (Case C-707/20), which provides further clarity on the scope of the fundamental freedoms, the correct comparator in establishing discrimination and the proportionality of discriminatory taxation of capital gains.
Final Losses in Respect of Cross-Border Mergers: Memira (Case C-607/17) and Holmen (Case C-608/17)
Authors: Broek H. van den
Published: December 2023

The author, in this article, examines the ECJ decisions in Memira Holding (Case C-607/03) and Holmen (Case C-608/17), which address whether a cross-border merger and a (proposed) liquidation resulted in “final losses” that, on the basis of the Marks & Spencer (Case C-446/03) doctrine, could be transferred to a parent company in another EU Member State. The author examines the relevance of the decisions to the taxation of cross-border mergers and liquidations against the background of the Merger Directive (2009/133).
Non-Resident Taxpayers, Dutch REIT Regime and EU Law: A Commentary on Recent Case Law
Authors: Adema R.P.C.
Published: December 2023

This article deals extensively with the Dutch Söndervermogen Lower Court case on the eligibility of non-resident taxpayers for the Dutch tax-favourable real estate investment trust (REIT) regime and its possible effects on EU REIT regimes in general.
Introduction of Substance Requirements for Netherlands Holding
Companies
Authors: Vis N.
Published: December 2023

On 12 June 2014, the Netherlands State Secretary of Finance published
a Decree containing information on the substance requirements for Netherlands
holding companies. This note discusses the substance requirements that are
particularly relevant to intermediary and top holding companies applying for an
advance tax ruling from the Netherlands tax authorities. It also provides
practical guidelines for all other holding companies established in the
Netherlands.
Real Estate Investment Trust Regimes Viewed through the Lens of the US Paradigm
Authors: Fritsch N. , Prebble J. , Prebble R.
Published: December 2023

In this first of a series of four articles, the authors consider real estate investment trust (REIT) regimes in general and, then, focus on US REITs. In subsequent articles, the authors deal with UK and German REITs, before concluding with a comparison of the three regimes.
Corporate Tax Changes
Authors: Tzenova L.
Published: December 2023

This note discusses changes to the Corporate Income Tax Act in respect of the filing of tax returns, the repeal of the right to a deduction from annual corporate tax due, the provision of criminal records on the tax authorities’ own motion, State aid developments and amendments to the Accountancy Act relating to tax paid under the CITA. Finally, the note recaps a letter sent by the National Revenue Agency regarding evidencing expenses.
Do Italian and International Tax Rules Require a Literal Application of the Value Test under Article 9(4) of the MLI? Possible Remedies to the Disproportionate Tax Treatment of Capital-Intensive Inbound Investments
Authors: Catucci N.
Published: December 2023

Italy has opted for article 9(4) of the MLI. Taxpayers will shortly be confronted with the new “immovable properties clause” of article 13(4) of the OECD Model (2017). A literal interpretation of the “immovable properties clause” will discourage inbound investments. International law countering discrimination supports a purposive interpretation.
COVID as a Digital Accelerator – Moving from Crisis to Opportunity
Authors: Nusetti M.
Published: December 2023

In the face of the human and economic crises spawned by the COVID-19 pandemic, governments and businesses have learned to adapt, primarily by designing and relying on digital processes. India has used this crisis to create opportunities in tax administration that will enable it to continue to move forward long after the pandemic has ended.
Indian Taxation of a Foreign Satellite Owner’s Income from Transmission of Television Programmes
Authors: Mehta A. (Amar)
Published: December 2023

This article provides an analysis of the Indian case law on services of foreign satellite service providers. As satellites do not have a physical nexus with India, the fees for transponder services do not automatically land in a treaty provision. The issue is of particular interest for non-resident satellite providers and academics.
Source, Transfer Pricing and Anti-Avoidance: Further Developments
Authors: VanderWolk J.P.
Published: December 2023

Several recent developments in Hong Kong since the publication, in the December 2009 issue of the Bulletin for International Taxation, of the article entitled “Source, Transfer Pricing and Anti-Avoidance: The Position After Ngai Lik and Datatronic”, justify a follow-up to that contribution.
Flickers of Hope Remain for US Tax Reform – Editorial
Authors: Scott J. (Jeremy)
Published: December 2023

In this editorial, the author considers the likelihood and scope of US tax reform.
Beyond the Future: ETFs as Financial Instruments
Authors: Marchioni U. , McNaught C.
Published: December 2023

For index Futures, a persistent richness of the Futures roll versus its fair value has been observed across several contracts over the last 12 to 15 months – particularly towards year-end. This article covers the drivers behind this and presents a framework to assess the performance drag which might be experienced versus the benchmark by a fully funded investor choosing to track an index with a Futures contract rather than with an exchange-traded fund (ETF).
Recent Australian Tax Case on Hybrid Bank Capital
Authors: Toryanik T.
Published: December 2023

While the particulars of Mills v. Commissioner of Taxation may be unique to the Australian tax system, it is the interplay between the prudential capital requirements, in accordance with which the capital was raised, and the desire of the ATO to protect the revenue against unfair, in the ATO’s view, outcomes by applying the general anti-avoidance rule that makes this case interesting to readers outside Australia.
Transfer of a PE under the Merger Directive (2009/133): Capital Gains Taxation and the Freedom of Establishment
Authors: Broek H. van den , Toom M. den
Published: December 2023

In this article, the authors discuss the ECJ’s decision in A Oy (Case C-292/16) concerning the compatibility of the Finnish implementation of article 10(2) of the Merger Directive (2009/133) with the freedom of establishment.
Opinion Statement of the CFE on the Gielen Case (C-440/08)
Authors: Confédération Fiscale Européenne
Published: December 2023

This is an Opinion Statement prepared by the ECJ Task Force
Members of the Task Force are: Axel Cordewener, Kelly Coutinho, Paul Farmer, Daniel Gutmann, Volker Heydt, Michael Lang, Franck Le Mentec, Pasquale Pistone, Albert Raedler, Stella Raventos-Calvo (Chair), Isabelle Richelle, Friedrich Roedler and Servaas Van Thiel. The views expressed in this statement do not necessarily represent the views of each individual member of the Task Force or of organisations with which any of the members are associated. of the Confédération Fiscale Européenne (CFE) on the Gielen case (C-440/08). The case concerns the optional application of business-related deductions to non-resident taxpayers and its compatibility with the freedom of establishment. Advocate General Ruiz-Jarabo Colomer delivered his Opinion on 27 October 2009 and the ECJ decided the case on 18 March 2010 in favour of the taxpayer. The CFE is the leading European association of 32 national tax advisory organisations representing over 180,000 tax advisers.
Tax Treaty Qualification of Income Derived from Hybrid Financial Instruments
Authors: Tomazela Santos R.
Published: December 2023

In this article, the author examines the tax treatment of dividends, interest and income arising from hybrid financial instruments under tax treaties based on the OECD Model.
Turkish Constitutional Court Decides in Favour of Taxpayer Property Rights
Authors: Yaltı B.
Published: December 2023

In this note, the author provides an overview of selected Turkish Constitutional Court (TCC) cases on taxpayer property rights.
Tax Measures Announced in the Presidential Address to the Nation
Authors: Tasalov K.
Published: December 2023

In an effort to tackle the spread of COVID-19 and mitigate its negative impact on the economy, the President of the Russian Federation held an Address to the Nation on 25 March 2020, which contained a number of tax measures. This note addresses the measures and their subsequent implementation.
The Concept of Substance in International Taxation
Authors: Toryanik T.
Published: December 2023

The purpose of this new comparative survey is to provide country
reports on the concept of substance in international taxation. Although the
substance requirement has since long been an important part of the functioning
of different taxation rules, the focus on this concept has recently increased.
The BEPS initiative, launched by the G20 and led by the OECD, may result in
changes to the substance requirement as it is expressed in different kinds of
norms such as domestic laws, tax treaties and soft law. The European Union is
interested in these developments and adheres to the work of the OECD on BEPS,
while conducting certain initiatives on its own.
Given these recent
developments, the International Transfer Pricing Journal wishes to present an
overview of certain issues related to the substance requirement in several
jurisdictions. The purpose of this study is to show the complexity, the
diversity, but also the similarities between some of the requirements of
different countries. At this point, the substance requirements in transfer
pricing is deliberately not included in the questionnaire so as to limit the
scope of this study. The outline has been prepared in cooperation with Jérôme
Monsenego (Associate Professor of tax law, Uppsala University). Country report
on Australia.
Draft Legislation Amending Germany’s Investment Tax Law in Line with the AIFM Directive
Authors: Grabbe J. , Simonis M. , Behrens S.
Published: December 2023

On 30 January 2013, the German federal cabinet approved the bill amending the German Investment Tax Act reflecting the draft Capital Investment Act which transposes the EU Alternative Investment Fund Managers Directive into German law. If not an “investment fund”, a collective investment undertaking might be classified as an investment corporate vehicle or as an investment partnership, each of which is subject to a separate tax regime. This article provides an overview of the changes which are due to take effect on 22 July 2013.
A Tentative Improvement: Comments on OECD Discussion Draft on the Transfer Pricing of Intangibles
Authors: Wang J. (Jingyi)
Published: December 2023

This article analyses the OECD Discussion Draft on transfer pricing of intangibles released in 2012. The author compares the new Draft with the existing OECD transfer pricing guidelines on intangibles. Improvements and imperfections within the Draft have been highlighted.
The Artificial Avoidance of Permanent Establishment Status: A Reaction to the BEPS Action 7 Final Report
Authors: Pleijsier A.
Published: December 2023

The author provides a critical analysis of the issues likely to arise from the Action 7 Final Report under the OECD’s BEPS initiative. Suggestions are also offered that would relieve some of the potentially negative effects.
New Rules on Allocation of Profits to Permanent Establishments in Russia: Threat or Opportunity?
Authors: Gotovtseva N. , Inozemtseva K.
Published: December 2023

Russian tax code provisions on the taxation of permanent establishments were recently amended. The authors provide an overview of issues arising in the context of these amendments.
The Court of Justice of the European Union – Recently Decided and Pending Cases
Authors: Annacondia F.
Published: December 2023

In this overview, the editor provides a list of judgments of the Court of Justice of the European Union (ECJ) and Opinions of the ECJ’s Advocates General delivered in VAT cases in the past 12 months. The overview also contains a list of the remaining cases pending before the ECJ on 31 August 2022, and a list of cases that have been removed from the ECJ’s register in the past year.
When Will a Commercial Transaction Constitute a Tax Avoidance Scheme in Singapore?
Authors: Wong J.H.M.
Published: December 2023

This article reviews AQQ v. the Comptroller of Income Tax, a 2011 case concerning the applicability of the general anti-avoidance provision under the Income Tax Act. The Court’s reasoning underlying its conclusion that the taxpayer’s financing arrangement was a tax avoidance scheme for Singapore tax purposes, is also considered.
Optimizing the
Interest Deduction Rules – A Never-Ending Story
Authors: van den Berg van Saparoea Anouc
Published: December 2023

This article provides an overview of current
developments regarding the limitation of interest deductions in the anti-abuse
legislation applying in the Netherlands, Germany and the United Kingdom. A
comparison between the different regimes attempts to determine whether it would
be advisable to use German legislation to optimize the Netherlands interest
deduction rules, or whether it would be better to amend the current legislation
based on that applying in the three jurisdictions or enact new legislation as
recently proposed by three Netherlands tax professors.
Tax Challenges of the Digital Economy: An Evaluation of the New OECD Nexus Rule Based on Revenue Thresholds
Authors: Guedes E.F. Dantas Lourenço
Published: December 2023

The author, in this article, having established the general aspects regarding the new nexus rule based on revenue thresholds, evaluates the development of the rules as proposed by the OECD in Pillar One, Amount A, based on the revenue threshold that a non-resident company acquires in a foreign market jurisdiction.
VAT Aspects of Installation Projects in Bulgaria
Authors: Krastanov S.
Published: December 2023

Installation projects can consist of various transactions with different VAT implications. The consequences are more complex in an international context, e.g. when foreign suppliers and subcontractors are involved. In this article, the author analyses some of the main VAT aspects of installation projects in Bulgaria in a B2B context that need to be considered by foreign participants in such projects.
The Relationship between Tax Authorities, Large Multinationals and the Public
Authors: Daly S.
Published: December 2023

In this article, the author explores accusations levelled at the revenue authorities of Ireland and the United Kingdom in response to their treatment of multinationals, analyses the statutory scheme underpinning the powers of those revenue authorities and provides a preliminary proposition as to why subsequent developments have been so distinct.
Developing a Transfer Pricing Policy Framework for the Current Economic Crisis and Beyond
Authors: Prasanna S. , Cardoso G.C.
Published: December 2023

The COVID-19 outbreak has brought abrupt changes to the supply chains of many multinational enterprises. The economic crisis sparked by the pandemic will potentially distort arm’s length conditions based on which transfer prices are set and regulated. This article retraces historical interactions between economic crises and transfer pricing regimes and identifies bottlenecks in applying the arm’s length principle during the crisis. It highlights the need for international organizations, taxpayers and tax administrations to develop a targeted policy response framework to deal with such challenges of the present and the future.
Capital Adjustments in Transfer Pricing Analysis: OECD Example of Working Capital Adjustments
Authors: Bittner T. , Jann A.-K.
Published: December 2023

This article briefly describes the concept of capital adjustments, and introduces the OECD capital adjustment calculation example. The strengths and weaknesses of the OECD example are considered in comparison to other capital adjustment approaches.
EU Disclosure Regime on Cross-Border Tax Planning Arrangements: Pending Decision Court of Justice of the European Union (ECJ) on Legal Professional Privilege and Constitutionality of the Directive on Administrative Cooperation (DAC6)
Authors: Wouters P-J.
Published: December 2023

On 21 September 2022, the ECJ was asked to determine whether the European disclosure regime for cross-border tax planning arrangements violates the principles of equality, non-discrimination and legal certainty, as well as the right to a private life. Will this eventually result in redesigning the EU DAC6 framework?
Italian Domicile
and Centre of Vital Interests: An Emigrant’s Nightmare, an Immigrant’s
Dream
Authors: Gusmeroli Michele
Published: December 2023

This note briefly surveys some of the main Italian
statutory provisions, Italian Supreme Court cases and rulings of the tax
authorities regarding domicile (in domestic law) and the centre of vital
interests (in treaty law). It then argues that an excessive focus on Italian
individuals taking up residence abroad can result in a very inert centre of
vital interests test, which, conversely, could benefit foreign individuals
spending time in Italy.
New Zealand Taxpayer Not Entitled to Foreign Tax Credit for Tax Sparing Granted to Controlled Foreign Company
Authors: Holmes K.J.
Published: December 2023

This note summarizes the New Zealand Court of Appeal’s decision in Commissioner of Inland Revenue v. Lin, which overturned the High Court’s 2017 ruling that a New Zealand-resident taxpayer with relevant interests in certain controlled foreign companies in China was entitled to a foreign tax credit for both tax paid in China by the controlled foreign companies and to tax spared in China arising from tax concessions granted to those companies.
Federal Tax Court Ruling on Relationship between Article 9(1) of the OECD Model Convention and National Income Adjustment Provision
Authors: Ditz X. , Schneider M. (Markus)
Published: December 2023

A recent decision of the Federal Tax Court considered the tax treatment of payments made for services rendered by a Dutch company to its German affiliate. The authors analyse the case and its practical implications for taxpayers.
Transfer Pricing – A Retrospective Analysis
Authors: Datta P. , Ghosh S.
Published: December 2023

It has been a decade since transfer pricing regulations were introduced in India. The authors provide an overview of the transfer pricing scene and discuss the main issues faced by taxpayers before making suggestions on possible changes that may need to be undertaken.
Welcoming GST
Authors: Yap B.
Published: December 2023

The goods and services tax (GST) will replace Malaysia’s current sales
and service tax regime beginning 1 April 2015. The author discusses the
mechanics of the proposed regime and the impact it will have on the
nation.
The European Court of Justice in Banco Bilbao: You Can't Have Your Cake and Eat It Too
Authors: Murre D. , Spenkuch A.A.
Published: December 2023

This note examines the recent decision of the ECJ in the Banco Bilbao case, wherein the Court addressed the issue of the free movement of capital in the context of the denial of a foreign tax credit in Spain for withholding tax that was not actually paid, but was exempted, in the source state (Belgium).
Recent Hungarian Tax Developments
Authors: Felkai R.
Published: December 2023

For a number of years, Hungary’s tax legislation was very stable. Significant changes, however, came into effect in 2021 and 2022, including, inter alia, in respect of corporate income tax, small business tax, personal income tax, benefits in kind, family allowances, social security rates and VAT. As the election in April 2022 confirmed the current government, it is unlikely there will be radical changes in the near future.
The Second New-Style Bulletin Special Issue
Authors: Witteveen S. , Dickinson F.
Published: December 2023

This Editorial updates readers on the second new-style Bulletin for International Taxation Special Issue.
Policy Choices in Iran's Current Tax Regime
Authors: Crivellaro J.
Published: December 2023

In this article, the author considers recent developments in the Iranian tax system from the specific perspective of tax policy. In particular, he focuses on the limited attempts to extend the tax base, whilst subsidizing lower earners and encouraging domestic industry.
Fiscal Sustainability and the Natural Resource Curse in Resource-Rich African Countries: A Case Study of Uganda
Authors: Kazi W.B. , Sarker T.K.
Published: December 2023

Fiscal sustainability has eluded most resource-rich African countries, as they have not used resource rents for social and economic development, and exhibit unsustainable debts, poverty and corruption (the “resource curse”). This article concludes that the “resource curse” is attributable to economic, legal, political and socio-cultural factors.
An Overview of Legal Issues Arising from the Implementation in the European Union of the OECD’s Pillar One and Pillar Two Blueprint
Authors: Brokelind C.
Published: December 2023

This article considers some of the issues presented during a Swedish International Fiscal Association (IFA) branch seminar held in December 2020 arising from the implementation by the EU Member States of the contemplated OECD Pillar One and Pillar Two rules based on the Blueprint of October 2020. Additionally, the article addresses comments issued by the Biden administration on possible progress on the Pillars.
Pricing of a Guarantee Fee in a Related-Party Context
Authors: Riedy J.A. , Anwar N. , Wright D.R.
Published: December 2023

In a recent case, Container Corporation v. Commissioner, the US Tax Court addressed the question of the source of a loan guarantee fee paid by a domestic corporation to a foreign parent corporation for purposes of determining whether there is a US withholding tax obligation. The case provides a good vehicle for the discussion of the transfer pricing aspects of guarantee fees.
The Principle of Territoriality and Corporate Income Taxation – Part 2
Authors: Becker A.
Published: December 2023

In Part 2 of this article, the author examines to what extent unilateral tax relief and tax treaties conform to the principle of territoriality with regard to corporate income taxation.
VAT Registration Thresholds in Europe
Authors: Annacondia F.
Published: December 2023

As is traditional in the sixth issue of each year, in this issue of the International VAT Monitor, an overview is presented of the VAT registration thresholds in most European (both EU and non-EU) countries, applicable in October 2015 and supplemented with announced amendments entering into force on 1 January 2016.
Recent Changes to the German Fiscal Unity Regime Affecting Inbound Investors
Authors: Weiss M.
Published: December 2023

This article describes the German fiscal unity regime for corporate and trade tax purposes (Organschaft). For inbound investors in particular, the German fiscal unity regime used to offer a straightforward opportunity to debt finance acquisitions of German operating companies. Recent legislative changes, however, have made base erosion in Germany via debt push-downs substantially more difficult in this context. With a German partnership as a top holding company, withholding tax issues may still be avoided.
Taxpayers’ Rights in Federal Litigation
Authors: Hallivis-Pelayo M.L.
Published: December 2023

This article looks at some of the issues that taxpayers may face when they appear before a federal tax court in Mexico, including a brief review of Mexican Federal Administrative Procedure.
Constitutional Court Delivers Landmark Double Jeopardy Decision
Authors: Attard R.
Published: December 2023

In May 2015, the Constitutional Court of Malta ruled that, in certain cases, the Maltese tax penalty procedure is incompatible with the European Convention on Human Rights. This note describes the ruling.
What Is a “Tax Paid in That Other State” under Article 23 of the OECD Model?
Authors: Lang M.
Published: December 2023

Professor Michael Lang provides us, in this 75th anniversary issue of the Bulletin for International Taxation, his view on the meaning and implications of the phrase “tax paid in that other state” in article 23 of the OECD Model.
Commissionaire Agency Permanent Establishment Structures and the Impact
of the Zimmer Case
Authors: Peel R. , Pope S.
Published: December 2023

Part of the Comparative Survey. The French Supreme Administrative
Court recently decided in the
Zimmer
case that
a French subsidiary of a foreign parent company, which operated in France under
French law as a commissionaire, did not constitute a taxable French permanent
establishment in France of the foreign company. The case has been explained in
"
Zimmer
Case: The Issue of the
Deemed Existence of a Permanent Establishment Based on Status as a
Commissionaire" by Mr Pierre-Jean Douvier and Ms Xenia Lordkipanidze
(17 International Transfer Pricing Journal 4, 2010).
Country report about this issue on the United Kingdom.
New German
Withholding Tax for Artistes and Sportsmen: Opportunities and Risks
Authors: Holthaus Jörg
Published: December 2023

This note considers the opportunities and risks under
the new rules for foreign persons who derive income from artistic or sporting
activities exercised in Germany as an employee with a German employer, with an
employer from another Member State of the European Union or with an employer
from other countries, or as a self-employed person.
The Deductibility of Costs Arising from Transactions with Residents of Tax Havens
Authors: Banfi L. , Brambilla A.
Published: December 2023

This article provides an overview of the Italian provisions regulating the tax deductibility of costs of Italian enterprises related to transactions undertaken with counterparties based in tax havens and of potential developments in respect of the interpretation of the law in light of recent clarifications issued by the tax authorities and decisions of the Italian Tax Courts.
When Must Hedge Accounting Be Applied for Dutch Income Tax Purposes?
Authors: Kok R. , Op den Brouw J.
Published: December 2023

Under Dutch tax law, when calculating the taxable profit, because of the principle of prudence, it is possible to take into account a loss that has not yet been realized and not to take into account a gain that not yet has been realized. This is called the “asymmetry of sound business practice”. However in some cases, the principle of reality limits the application of the principle of prudence, and for tax purposes hedge accounting needs to applied. This is the case when there is a qualitative and (sufficient) quantitative relationship between two assets/liabilities. This article considers the qualitative and quantitative tests, as well as how the Supreme Court applies those two tests.
Transfer Pricing Documentation for Business Restructurings
Authors: Boone P. , Haupt M.
Published: December 2023

This article deals with the challenge of documenting business restructurings for transfer pricing purposes. It links the discussion to the ongoing debate of risk management for transfer pricing, and suggests how MNEs can build a business case for change and sufficiently evidence the operational transformation by following an efficient, contemporaneous documentation approach.
Does Intangible Ownership Move with the People That Perform the DEMPE Functions?
Authors: Silberztein C. , Guillaume M.
Published: December 2023

In the context of globalization and accelerated by the COVID-19 pandemic, recruitment pools are becoming global, remote team working becomes common, and employees performing significant value adding functions may be located in different jurisdictions, not always in the country of the head office or of the entity that owns the group’s valuable intangibles. While the identification of significant people functions has been a critical point in transfer pricing analyses for more than 25 years, its precise significance in the OECD Guidelines has evolved in successive waves. The greater emphasis on people functions raises questions on the impact that workers’ or functions’ mobility can have on the allocation of intangible ownership and return.
Tax Treaty Case Law News
Authors: Arnold B.J.
Published: December 2023

In this Tax Treaty Case Law News, Brian Arnold reviews two recent tax cases from Australia and India involving decisions regarding hybrid entities and the taxation of income from independent professional activities, respectively.
Preliminary Ruling Requested from ECJ on Dividend Withholding Tax Due by UK Insurance Companies
Authors: Offermanns R.H.M.J.
Published: December 2023

In this note, the author comments on the recent request from the Court of Appeal of ‘s-Hertogenbosch for a preliminary ruling from the ECJ on the imposition of a 15% dividend withholding tax on dividend distributions to UK insurance companies on unit-linked policies in circumstances in which no withholding tax was due on payments to domestic pension funds.
The New VAT Regime in the Gulf Cooperation Council Countries
Authors: Alkafaji Y.A. , Khanfar O.
Published: December 2023

The authors, in this article, consider the significant aspects of the new VAT regime that the Gulf Cooperation Council (GCC) countries will institute effective 1 January 2018. Additionally, the authors discuss the nature of the new VAT regime and its implications for the GCC economies.
Large Taxpayers’ Office: Special Project on Transfer Pricing Oversight
Authors: Manninen P.
Published: December 2023

As a response to an increased volume of complex transfer pricing issues, the Finnish tax authorities have established a special project to monitor transfer pricing as from 1 January 2012. This undertaking follows successful centralized approaches in the United Kingdom and Denmark.
Valuation of Implicit Support from a Transfer Pricing Perspective
Authors: Daba B.T.
Published: December 2023

The concept of “implicit support” has been steadily handled inconsistently by taxpayers and tax authorities alike, and by the courts in particular, which are guilty of applying divergent tax treatment in the same or similar cases. There is no universally accepted definition of “implicit support”, but it can be construed as a benefit assumed to be derived by a group company by virtue of being part of the group of companies. The latest OECD Transfer Pricing Guidance on Financial Transactions provides some guidance on the concept of implicit support. Some tax authorities and courts have also asserted the value of implicit support in determining the arm’s length price of intra-group financial transactions. Such endeavours have not, however, clarified all the issues evolving around implicit support in terms of its scope, impact and manner of implementation. Hence, this has remained an ambiguous issue worldwide, and global consensus is nowhere in sight.
Uncertainties Related to the Autonomous Concept of “Ancillary Transactions”
Authors: Șvidchi N.
Published: December 2023

In its judgment delivered in AJFP Caraş-Severin and DGRFP Timişoara, the ECJ has interpreted for the first time the notion of “ancillary transactions”, employed in article 288(4) of the VAT Directive. In defining this autonomous notion, the ECJ seems to indicate that a contextual link should be established with the usual business activity of the taxable person, rather than an actual one, in terms of substance. Although the practical aspects of this judgment might be limited, in this article the author argues that its importance should not be underappreciated, considering the increasing number of the economic activities carried out by the small enterprises, lato sensu, benefiting from the special VAT scheme.
Australian Taxation Office Issues Significant Guidance on New Transfer
Pricing Rules
Authors: Butler M. , White L.
Published: December 2023

The authors review recently released significant guidance on
Australian transfer pricing documentation requirements and penalties.
The Territoriality Principle in the World of the OECD/G20 Base Erosion and Profit Shifting Initiative: The Cases of Hong Kong and Singapore – Part II
Authors: See W.H.
Published: December 2023

In Part II of this article, the author examines the effect of the territoriality principle on tax treaties concluded by Singapore and Hong Kong. This is followed by an analysis of the interaction between the territoriality principle and the OECD/G20 Base Erosion and Profit Shifting initiative.
Recent Developments in Brazil Regarding the Indirect Taxation of Services in the Digital Economy
Authors: Godoi M. Seabra de
Published: December 2023

This article considers Brazilian indirect taxation, examines recent legal initiatives through which municipalities and states have disputed the tax basis of digital economic activities, and criticizes the Brazilian judicial system’s inability to timely settle tax disputes in a legal system where nearly all tax measures sooner or later become constitutional.
TP or Not TP: Examining the Applicability of the Arm’s Length Principle
to Inter-Company Equity Financing Transactions
Authors: Sanghavi D. , Schmidt C.J.
Published: December 2023

In this article, the authors examine the dynamics of
inter-company equity financing transactions and whether or not the arm’s length
principle should be applied to them even if they do not result in immediate
profits or losses.
Internal Interest Dealings for Financial and Non-Financial Enterprises and Art. 7 of the OECD Model Tax Convention
Authors: Hoogterp P.
Published: December 2023

This article presents an overview of the implications of the conclusions of the OECD Report on the Attribution of Profits to Permanent Establishments with regard to internal interest dealings for both financial enterprises (for the interpretation of existing treaties based on the current text of Art. 7 of the OECD Model) and non-financial enterprises (for the interpretation of future tax treaties or future amendments to existing treaties based on the text of the Draft new Art. 7).
The 2012 Leiden Alumni Seminar: Case Law on Treaty Interpretation Re
Commissionaire and Agency PEs
Authors: Baranger S. , Henie L.A. , Sada Garibay M. , Gordillo I. , Gusmeroli M.
Published: December 2023

The eighth Alumni Seminar, held on 30 August 2012 at the International
Tax Center of the University of Leiden, addressed recent case law on the
interpretation and application of tax treaties, specifically whether or not a
commissionaire can constitute an agency PE.
Comment on Galeria Parque Nascente (Case C-438/18) Regarding the Deductibility of Interest in the Context of a Neutral Merger
Authors: Romão F. , Duarte C.R. , Maurício R.
Published: December 2023

This article examines the position taken by the ECJ in a case on the compatibility of the Merger Directive (2009/133) with a Portuguese provision preventing taxpayers from deducting interest on loans taken out to finance the acquisition of shares, upon the merger of the borrower with the target. In the authors’ view, the ECJ’s decision is contrary to previous case law and opens the door to a relevant restriction on operations covered by the Directive.
The VAT Impact of Discounts to Parties outside the Traditional Distribution Chain
Authors: Sanders J.
Published: December 2023

Since the ECJ case in Elida Gibbs, the VAT implications of most discounts are clear: the taxable amount is reduced by the discount that is provided. However, the outcome is much less clear when businesses provide discounts to parties that are not operating in the same distribution chain. Such complex discount schemes occur, in particular, in markets with pricing pressure like the pharmaceutical sector. In that specific sector, insurers and governments are coming up with pricing arrangements in order to control the rising drug prices. Along with these arrangements, additional cash flows often are created and third parties become involved. In this article, the author discusses the VAT implications of such pricing arrangements and gives real-life examples from Germany and the Netherlands. He concludes by outlining the various arguments that can be found in the ECJ case law in order to unblock the bottlenecks.
Tax Implications of the Amended UCITS and the AIFM Directives: A General Overview from a Dutch Perspective
Authors: Borsjé P. , Specken W.
Published: December 2023

A rapidly changing EU fund regulatory environment has seen the introduction of the UCITS IV Directive and the ongoing process pertaining to the AIFM Directive and its implementing measures. This article presents an overview of these recent developments and considers the most important tax implications, with a focus on the Dutch perspective.