bluuebunny/crossref_metadata_2025 huggingface dataset:
Substance in International Taxation
Authors: Verlinden I. , Abelshausen K. , Geboers T.
Published: December 2023

The purpose of this 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 are 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).
Transfer Pricing Legislation: Evaluation Ten Years after Enactment
Authors: Massone M.
Published: December 2023

The author evaluates Chilean transfer pricing legislation after more than ten years from enactment and after Chile became a member of the OECD. He also offers some thoughts that may be useful to improve current Chilean legislation.
Limits of International Cooperation: The Concept of “Jurisdiction Not to Tax” from the BEPS Project to GloBE
Authors: Liotti B. Ferreira
Published: December 2023

This article distinguishes between states’ harmful tax practices, unintended non-taxation and the sovereign exercise of “jurisdiction not to tax”. It concludes that states’ “jurisdiction not to tax” should not be undermined by international cooperation measures that are (solely) aimed at strengthening the jurisdiction of other states to tax cross-border income.
An Analysis of the Russian Tax Monitoring Programme in Light of the OECD Concept of Cooperative Tax Compliance and the Experience of Other Countries
Authors: Martini M.H. , Russo R. (Ronald) , Pankov Y.
Published: December 2023

In this article, the authors assess the similarities and differences between the Russian tax monitoring approach and the cooperative compliance approach proposed by the OECD and implemented by other countries.
Substance in Transfer Pricing in a Post-BEPS World and Beyond…
Authors: Petruzzi R. , Myzithra A.
Published: December 2023

In this article, the authors examine the notion of substance for transfer pricing purposes in the pre- and post-BEPS era and provide some considerations in light of the current discussions on the digitization, digitalization and digital transformation of the economy.
Comparing Similar Enterprises under Article 24(5) of the OECD Model: Non-Discrimination and MFN Treatment in the Context of the Netherlands Group Taxation Regime
Authors: Bagci R.
Published: December 2023

The author discusses the application of the ownership provision in article 24(5) of the OECD Model (2017) in the context of group taxation regimes. Taking the Netherlands group taxation regime as a base case, the author challenges the often applied limited comparison and argues that the ownership provision should allow Netherlands companies held by third-state resident companies similar consolidation possibilities as Netherlands companies held by EU Member State resident companies.
The New E-Invoicing Rules in Saudi Arabia: A New Paradigm of Tax Administration in the GCC?
Authors: Ricart Verdera J.
Published: December 2023

In this Column, the author analyses a proposal for introducing e-invoicing rules in Saudi Arabia and explains that it is going to generate a new paradigm in terms of electronic tax administration and digitalization of the tax function, not only in Saudi Arabia but also in the rest of the GCC member states.
Groupe Steria or Lexel?
Authors: Zeijden F.M. van der
Published: December 2023

In this note, the author comments on a ruling of the Swedish Council for Advance Tax Rulings in relation to the Lexel (Case C-484/19) decision. In particular, the note commences with a description of the Swedish and EU law background to the case presented to the Council, the Lexel case and the ruling at hand. Subsequently, the author analyses the EU law considerations that would have been relevant had a decision of the minority of the Council been followed. Finally, certain ongoing questions are highlighted.
Germany’s Anti-Treaty-Shopping Rule under ECJ Pressure
Authors: Weiss M. , Brühl M.
Published: December 2023

This article describes recent events surrounding the German anti-treaty-shopping rule enshrined in section 50d(3) of the German Income Tax Act. Designed to counteract tax planning strategies aimed at benefiting from lower withholding taxes under tax treaties or European directives, its future has been cast into grave doubt. These doubts arise both from domestic developments around possible planning strategies not within the scope of the rule and pressure from ECJ decisions. It is doubtful whether or not the rule will survive in its current form.
The Full Federal Court Rules against the ATO in the Glencore Case: How Far Can Reconstruction Go under the OECD Guidelines and Domestic Law?
Authors: Screpante M.S.
Published: December 2023

Glencore constitutes a key case for the understanding of the “recharacterization” provision (subdivision 815-B of the ITAA 97) in light of the 2017 OECD Guidelines, which from the view of Australian domestic law, go beyond a mere source of interpretation.
Religion and Taxation in Italy: The Principle of Laïcité and Compliance with EU Law
Authors: Mastellone P.
Published: December 2023

In this article, the author outlines the historical relationship
between the state and religions in Italy in the tax context, and highlights the
most controversial issues that make ecclesiastical entities particularly
favoured among Italian taxpayers. Focus is placed on the 8‰ state financing
mechanism for religions, which de facto puts the Catholic Church in a position
of privilege relative to other religions.
Amendments to the Dividend Taxation Regime
Authors: Blažejová Z.
Published: December 2023

In this note, the author discusses an amendment to the Slovak Income Tax Act introducing changes effective 1 January 2017 regarding the taxation of profit shares and other types of income connected to investments of both corporate and individual shareholders.
Leveraged Buy-Outs and Foreign Shareholder Loans: Issues Arising from the Recent Approach of the Italian Tax Authorities
Authors: Morri S. , Guarino S.
Published: December 2023

The Italian tax authorities recently issued an analysis of leveraged buy-out transactions, noting the possibility of recharacterizing shareholder loan agreements as capital contributions by applying paragraph 1.65 of the OECD Transfer Pricing Guidelines, which allows tax authorities to recharacterize structures in accordance with their economic substance. This note questions whether the Italian tax authorities’ concept of “economic substance” is compliant with accounting and finance tenets and is still applicable in light of the OECD’s BEPS Actions 8-10.
International Taxation and Economic Substance
Authors: Picciotto S.
Published: December 2023

This article argues that the “independent entity principle” is a basic flaw in the current system for taxing multinational enterprises (MNEs), creating problems especially for developing countries, which the OECD/G20 Base Erosion and Profit Shifting initiative has failed to resolve; it describes three alternative approaches that could be adopted to move towards a unitary approach to MNE taxation, and considers the prospects for the current transitional period.
Securitization and Thin Capitalization
Authors: Joseph A.
Published: December 2023

The author considers recent changes to law governing securitization
and thin capitalization in Australia, and reviews guidance from the Tax Office
regarding the exemption of certain special purpose entities from the thin
capitalization rules.
Is the “Dual VAT” Proposed by the Brazilian Indirect Tax Reform a Real VAT?
Authors: Moura F. Santos
Published: December 2023

In this article, the author compares the essential concepts of the “dual VAT” system proposed by the Brazilian government (via Constitutional Amendment Proposal PEC 110/2019) with the main concepts of the European VAT Directive. The analysis aims to identify whether Brazil is moving toward a real VAT system or whether, due to its dual VAT’s unique features, Brazil will still be deviating from the VAT international practice, even after its long-awaited indirect tax reform. The author concludes that the Brazilian dual VAT may successfully align that country with the VAT international practice, but points out that this is a preliminary conclusion because the supplementary law that is yet to come has a decisive role in the proposed Brazilian indirect tax reform.
The taxation of partnerships in Canada
Authors: Johnson E.J. , Lille G.C.
Published: December 2023

In discussing the taxation of partnerships in Canada, the article
first gives an overview of Canada's approach to partnership taxation, the types
of partnerships recognized by Canadian law and the Income Tax Act of Canada
(the Act), and the status of limited partners under the Act. The article then
considers specific aspects of partnership taxation, including, among others,
what is recognized as a partnership under the Act, the basic regime, special
rules applicable to limited partnerships, international aspects of partnership
taxation, and the anti-avoidance rules and case law relating to
partnerships.
McKesson Canada: Is the Canadian Statutory Transfer Pricing Adjustment “Formula” in Need of an Adjustment?
Authors: Francescucci D. , Larochelle S.
Published: December 2023

Canadian multinational companies may want to note the implications of
a recent transfer pricing case in which the Tax Court of Canada held for the
tax authority on what constitutes a reasonable discount rate in a non-arm’s
length accounts receivable factoring arrangement. Of particular interest is the
approach the Court used in determining what it considers an acceptable arm’s
length range for an accounts receivable factoring discount and the Court’s
views on when “recharacterization” of the transactions might be used by tax
authorities. Also, the decision to apply Canadian withholding tax on the
secondary adjustment may be important for both Canadian taxpayers and
non-residents engaged in cross-border controlled transactions.
In Search of Suitable Transfer Pricing Method for Active Pharmaceutical Ingredients – A Case of Pakistan
Authors: Memon N.
Published: December 2023

This article is concerned with finding an appropriate transfer pricing method for determining the arm’s length price of active pharmaceutical ingredients (APIs in related-party transactions). It examines the available transfer pricing methods and sets out the appropriateness of each method for a particular type of transaction. Further, this article reviews pharmacology literature for the comparison of innovator and generic APIs and it also reviews commonly cited case law from selected developed jurisdictions and from Pakistan.
Progressive Income Taxation and Urban Individual Income Inequality
Authors: Krever R. , Zhang H.
Published: December 2023

The market economy has brought tremendous wealth and equally significant income inequality to China. This article attempts to analyse the role that different types of income play in fostering inequality or the extent to which the tax system, with a notionally progressive personal income tax, may mitigate that inequality.
VAT Refund Due to Premature Termination of a Lease Agreement
Authors: Zutt J. , Boy U.
Published: December 2023

This article discusses the judgment of the European Court of Justice regarding the possibility of VAT refund in the event of a (premature) termination of lease agreements and the related compensation.
The Canadian Indirect Tax Landscape for Foreign Suppliers of Goods to Canadian Consumers (B2C)
Authors: Cyr P-A. , Moons L.
Published: December 2023

The rise of the digital economy has forced lawmakers to adapt their indirect tax framework to ensure that foreign and local businesses would operate on an even playing field and that goods and services would be taxed within their country of consumption. With that in mind, some features of indirect tax regimes had to be reconsidered, such as import VAT/GST exemptions on low-value goods, along with VAT/GST registration requirement for non-resident suppliers of goods and services to local consumers. In this article, the authors address the 2021 Canadian GST/HST digital economy reform, analyse how it compares with the OECD recommendations and provide some key insights for foreign suppliers of goods to Canadian consumers who try to navigate the current Canadian indirect tax landscape.
Thin Capitalization: An Unanswered Question Following Recent Spanish Amendments
Authors: Luchena Mozo G.M.
Published: December 2023

The Spanish thin capitalization rule has been the subject of criticism in the past, in particular in recent decisions of the Spanish Supreme Court, in regard to its compatibility with EU and international law. Recently, however, the rule was replaced by an earnings-stripping rule that is similar to the German interest barrier rule. This article examines the former thin capitalization rule, the new earnings-stripping rule, and the consequences of this development.
Collective Investment Schemes Claiming a Withholding Tax Refund in the European Union (in Particular, Poland)
Authors: Kostowska M. , Gnutzmann S.
Published: December 2023

In this note, the authors analyse the “comparability test” applied in the context of assessing a withholding tax refund claim in Poland based on ECJ case law using a German domiciled UCITS-like fund as an example.
Postponed Accounting for Import VAT in Finland
Authors: Kaleva A. , Ruohola T.
Published: December 2023

On 1 January 2018, Finland introduced postponed accounting for import VAT – also known as reverse charge on import VAT in other EU Member States. In this article, the authors discuss the key features of the new system and the way the taxable base for import VAT should be calculated, and provide their conclusions.
Exemption and
Tax Credit in German Tax Treaties – Policy and Reality
Authors: Lüdicke J. (Jürgen)
Published: December 2023

The exemption method used in German tax treaties for major items of
income is subject to many restrictions by special clauses in the tax treaties
themselves and by treaty-overriding provisions in the domestic tax laws, which
are often inconsistent. The author considers that this treaty policy should be
revised.
Structuring Foreign Investments
Authors: Karunasekara P.P.D.P. , Mailewa N.B.
Published: December 2023

This article provides an insight into Sri Lanka's foreign investment climate. The pertinent tax and non-tax aspects for foreign investors such as forms of doing business, priority economic sectors, special tax incentive regimes as well as domestic and international tax implications are covered.
ATAD 2: Anti-Tax Avoidance Directive
Authors: Balco T.
Published: December 2023

This article addresses the European Commission’s 25 October 2016 proposal for a Council Directive to address hybrid mismatches with third countries. In addition to discussing the initial proposal of the Commission, the author explains the pitfalls of the proposed Directive and the concerns and positions of selected Member States. Further, comments are made on the work being undertaken by the Council, together with the Member States and with the support of the OECD, to strengthen the Commission’s proposal.
Preliminary Ruling in ECJ Case Promo 54: Did the Referring Court Ask the Right Question?
Authors: Lamensch M.
Published: December 2023

In April 2022, the Belgian Cassation Court raised a preliminary question to the Court of Justice of the European Union (ECJ) concerning the application of the VAT exemption foreseen under article 135(1)(j) of the VAT Directive (exemption concerning the supply of immovable property) in the specific case of renovated buildings. At first consideration, the question raised may seem technical and mostly relevant to the Belgian practice. In this article, however, the author suggests it would be a good occasion for the ECJ to define the margin of manoeuvre for Member States when it comes to taxing the supply of renovated buildings.
The Effect of the OECD/G20 BEPS Initiative on the Attribution of Profits to Permanent Establishments: The Special Case of Agency Permanent Establishments
Authors: Tracana D.
Published: December 2023

In this article, the author examines the effects of the OECD/G20 Base Erosion and Profit Shifting initiative on the attribution of profits to agency permanent establishments, focusing on the OECD’s Additional Guidance on the Attribution of Profits to Permanent Establishments, Action 7 – 2016 Public Discussion Draft.
Transparency in Financial Reporting: Is Country-by-Country Reporting
Suitable To Combat International Profit Shifting?
Authors: Evers M.T. , Meier I. , Spengel C.
Published: December 2023

In this article, the authors contend that country-by-country reporting
cannot be regarded as a convincing measure to combat international profit
shifting. Instead, tax legislators should limit profit shifting by enforcing
national and international tax rules and by closing gaps in tax law.
Council Directive on Double Taxation Dispute Resolution Mechanisms: “Resolving Companies’ Areas of Concern?”
Authors: Wiertsema T.
Published: December 2023

Without effective dispute resolution mechanisms between Member States of the European Union, companies will face the increasing possibility of unresolved double taxation. This is in particular due to new BEPS Actions that will provide Member States with expanding taxation opportunities. This article discusses whether the new Council Directive on Double Taxation Dispute Resolution Mechanisms in the European Union (the Directive)
Council Directive on Double Taxation Dispute Resolution Mechanisms in the European Union (2016/0338(CNS)) of 2 Oct. 2017. The Directive was adopted by the Council on 10 Oct. 2017.
will resolve the areas of concern that companies currently face in dispute resolution procedures between Member States under tax treaties and the EU Arbitration Convention. Three areas of concern discussed here are (i) access to the procedure, (ii) length of the procedure and (iii) outcome of the procedure. The article concludes that the Directive will provide an overall improvement within these areas of concern because of the extended scope for qualifying disputes and the inclusion of clear deadlines and fall-back mechanisms in the Directive. However, this improved legal certainty for taxpayers is expected to come at a (high) price in the form of increased durations of already lengthy dispute resolution procedures.
“BEFIT and HOT: FASTER and SAFE!” EU Law or Slogan for Slimming Pills?
Authors: Korving J.
Published: December 2023

In this article, the author summarizes and comments on the latest published and announced proposals for directives in the field of direct taxation. In addition, he addresses potential substantive issues inherent in these proposed directives and comments on the drafting process and EU law trends in general.
Taxable Person’s Fundamental Rights in Tax Proceedings: The ECJ and the Italian Jurisprudence
Authors: Contrino A. , Cavallo A.
Published: December 2023

The right to defence under the EU Charter of Fundamental Rights applies to the harmonized VAT system. In this article, the authors analyse the Glencore Agriculture Hungary case (C-189/19) with the aim of understanding to what extent and when the right to access to the evidence should be guaranteed in order to ensure the taxable person’s right to defence. In this regard, the authors noticed that the Italian legislation, jurisprudence and practice of the tax authority are not complying with a recent ECJ decision.
Benchmarking Approaches for Compulsorily Convertible Debentures
Authors: Bilaney S.
Published: December 2023

Although there is no clear guidance from the OECD or UN regarding the determination of the arm’s length price of intercompany financial transactions, the author offers two approaches to benchmarking compulsorily convertible debentures, based on economic theory and financial models.
VAT Treatment of the Assignment of Debt
Authors: Zutt J. , Plattel A.
Published: December 2023

The authors explore in this article whether a recent judgment of the European Court of Justice (ECJ) in Paulo Nascimento Consulting (Case C-692/17) shines new light on the current VAT treatment of the assignment of debt.
Blockchain Applications in Asian Tax Administrations
Authors: Müller R. (Robert)
Published: December 2023

Asian tax administrations are actively pursuing the digitization of tax systems. An important instrument for a successful digitization of tax authorities is blockchain technology. The article describes important initiatives and developments in Asia.
New Provisions Regarding the Taxation of the Digital Economy
Authors: Quaratino Luigi
Published: December 2023

This note summarizes recently enacted provisions that attempt to
address the problem of the taxation of the digital economy in Italy, including
a VAT provision (web tax) (subsequently repealed) and a transfer pricing
provision.
The New Wave of Cooperative Compliance Programmes and the Impact of New Technology
Authors: Bronżewska K. , Majdańska A.
Published: December 2023

An increasing number of (inter)national tax regulations (like the ATAD, iterations of CFC rules and interest deductibility limitations) are impacting taxpayers at the same time that their scrutiny by tax authorities is intensifying. Against this background, cooperative compliance programmes are on the rise. This article addresses the latest developments with regard to cooperative compliance programmes in Austria, Belgium and Poland, and also looks into the potential of new technologies to further foster the relationship between taxpayers and tax administrations.
Medtronic: Is the US Court Ushering In the End of Transactional Methods?
Authors: Screpante M.S.
Published: December 2023

By using an undetermined method in its transfer pricing analysis to determine royalty rates for licence agreements, the Tax Court's ruling in Medtronic III provides guidance for future related-party transactions.
Global Transfer Pricing Conference “Transfer Pricing in a Post-BEPS World”
Authors: Storck A. , Petruzzi R. , Pankiv M. , Tavares R.J.S.
Published: December 2023

This article highlights the items discussed during the Global Transfer Pricing Conference “Transfer Pricing in a Post-BEPS World”, organized by the WU Transfer Pricing Center at the Institute for Austrian and International Tax Law at WU (Vienna University of Economics and Business), and summarizes the topics analysed during the eight sessions of the event.
Implementation of Goods and Services Tax in Bhutan
Authors: Hassan B.
Published: December 2023

On 1 July 2020, Bhutan fully implemented the Goods and Services Tax Act 2020 (GST Act) to eliminate other indirect taxes resulting in double and triple taxation. The GST Act will enter into application on 1 January 2021. In this article, the author summarizes the main features of the GST Act, including the regulatory framework and administrative requirements. The author also highlights anti-avoidance GST provisions included in the GST Act in addition to offering some proposals for effective implementation of the GST legislation in Bhutan.
General Electric Capital Canada Inc. v. The Queen: Guarantee Fees and the Arm’s Length Standard
Authors: Steeves C.J.
Published: December 2023

This article reviews the General Electric Capital Canada decisions (Tax Court and Federal Court of Appeal) and discusses the useful commentary contained in these judgments about the application of the arm’s length principle to financial services.
Recent Regulations on Calculation of Taxable Income of a Domestic Place of Business
Authors: Hyung Kim T.
Published: December 2023

Guidance arrived in Korea in 2013 to aid taxpayers in determining the taxation of internal dealings between a domestic place of business and other segments of the foreign corporation of which it is part. The author considers this guidance, discusses the importance of documentation, and examines a controversial area that still needs to be the subject of amendments.
Corporate Income Tax Law Amendments Adopted
Authors: Blagojevic I.
Published: December 2023

This note outlines recent amendments to the Corporate Income Tax Law,
including with regard to the loss carry-forward period, capital gains taxation,
withholding tax, various tax incentives and thin capitalization rules.
Hard-to-Value Intangibles: How Hard Can It Be?
Authors: Konings B. , Morren D.
Published: December 2023

Hard-to-value intangibles are in the spotlight for reasons of the upcoming DAC6 reporting obligations, although the fundamental question is how to account for this notion when transferring IP within an MNE? According to the authors’ experiences, this is still quite unclear to both taxpayers and authorities, so they come up with an alternative approach.
A sensible reform of the EU VAT regime for financial services
Authors: Borselli F.
Published: December 2023

In this article, the author describes the differences between the
Member States as regards the VAT regimes currently applicable to financial
services and the existing problem that financial institutions, in particular
businesses in the banking sector, cannot recover input VAT. In addition, he
discusses the Commission's proposal to reform the VAT position of financial
institutions.
Tax Implications of Various Crowdfunding Models: A General Overview from a Spanish Perspective
Authors: Gramage F. , Beltran J.
Published: December 2023

Crowdfunding is a response to the lack of bank financing (especially to entrepreneurs and start-ups) and the decreasing investment in the venture capital market. Although seeking funds from the public is not new, connecting investors and projects through the Internet is very recent. Save for a few exceptions, there is no specific legislation regarding such funding. This article presents an overview of crowdfunding and considers the tax implications with a focus on the Spanish perspective.
Interest Rate Benchmarking for Transfer Pricing Purposes: A Comparison between the Loan and the Bond Approach
Authors: Petrakos T. , Chand V. , Pletz A.
Published: December 2023

This article analyses how an arm’s length interest rate for an intercompany loan can be determined under the two most commonly accepted approaches; the loan approach and the bond approach. In this respect, it first provides some considerations as to performing a loan benchmarking study, followed by some of the main differences and theoretical advantages and disadvantages of the two approaches. As a second step, a case study is presented, for which an arm’s length interest rate is determined under both approaches. The results of the two approaches are then discussed and compared. It is argued that the bond approach yields much more reliable results.
The Italian Web Tax from a National and International Perspective
Authors: Valente P.
Published: December 2023

To ensure taxation of digital business profits, Italy has introduced a web tax on digital transactions relating to a supply of services, sparking debate both domestically and internationally, since proposals are expected from the OECD and the European Union for coordinated solutions to the issue. This article provides an overview of questions that the Italian web tax has generated, concluding that Italy’s actions have set off alarm bells that should promote prompt cooperation internationally.
Challenges Related to the Assessment of VAT by Streaming Platforms: Disney+
Authors: Harana Suano E.
Published: December 2023

Digital businesses have changed the way we access entertainment today, with special tax implications. For this reason, in this article the author analyses in depth the evolution of the VAT landscape in the streaming industry, with a particular focus on the examination on one of the star platforms: Disney+. The study investigates the changing dynamics of this market, exploring how international cooperation plays a crucial role in ensuring fair taxation and sustainable growth in the digital entertainment sector.
Proposal for a Secure Digital Reporting Standard for Intra-Community Transactions
Authors: Jafari S. , Lamensch M. , Papis-Almansa M.
Published: December 2023

While the EU VAT world is holding its breath and waits for the European Commission to publish a proposal to streamline digital reporting requirements in the European Union, in this article the authors make a proposal for a secure digital reporting standard that takes into account the legitimate interests of Member States and taxable persons alike, and is compatible with the fundamental rights and principles enshrined in EU law.
Informal Information Released by Polish Tax Authorities on the Application and Interpretation of Tax Law: Quasi-Tax Ruling or Irrelevant Piece of Paper?
Authors: Morawski W. , Brzeziński B.
Published: December 2023

This note explores the legal significance of information obtained by taxpayers from the tax authorities in the form of brochures, instructions for filling in tax returns, the content of telephone conversations and e-mails. The authors discuss the issue in the context of Polish case law, which seems to indicate a willingness to protect taxpayers acting in reliance on such information.
How Technology Is Changing Taxation in Latin America
Authors: Huibregtse S. , Ottoni P. , Muñoz Rodríguez S.C.
Published: December 2023

This article provides an overview of the important role played by technology in taxation and transfer pricing in Latin America, and presents comprehensive research to illustrate the digital path taken by tax administrations and corporations in Latin America and worldwide.
The Complexities of VAT Grouping
Authors: Zutt J.
Published: December 2023

This article deals with developments in 2021 in respect of the impact of VAT grouping on the VAT treatment of intercompany transactions. The main development in 2021 was the ECJ decision in Danske Bank in which it was ruled that a transaction between a Danish VAT group and a Swedish branch was in scope of VAT. The decision makes it more important to determine whether a VAT fixed establishment is in place and whether a VAT group is in place. The Italian tax authorities appear to be going even one step further by also treating transactions between a local fixed establishment and a non-EU VAT group as being in scope of VAT. The implementation of a VAT grouping regime in France also broadens the implications of Danske Bank. A pending case at the Dutch Supreme Court may change this, as it is being questioned whether the current limitations under the concept of VAT grouping may form a breach of fundamental EU principles on freedom of establishment, but proceedings have not been in the taxpayer’s favour so far.
Derouin: Tax
Treaties and Regulation No. 1408/71 – Double or Nothing?
Authors: Pötgens Frank P.G. , Geursen Wessel W.
Published: December 2023

This article considers the European Court of Justice
(ECJ) decision of 3 April 2008 in Derouin,

ECJ, 3 April 2008, Case C-103/06,
Philippe Derouin v. Union pour le recouvrement des cotisations de sécurité sociale et d’allocations familiales de Paris – Région parisienne (Urssaf de Paris – Région parisienne).
Discussed, inter alia, in L. Adamietz and M. Schreier, Europäisches Wirtschafts- & Steuerrecht (2008), pp. 195-196; M-C. Bergerès, “La CSG, la CRDS, le droit communautaire et les conventions de lutte contre les doubles impositions”, Revue de droit fiscal (2008) Comm. 349, pp. 25-27; and D. Gutmann, “Derouin v Urssaf de Paris – Région parisienne: to what extent may EU Member States convert their social security contributions into taxes for tax treaty purposes?”, British Tax Review (2008), pp. 625-627.
with emphasis on the importance of the ruling for
social security contributions, the 1968 France-UK tax treaty (the Treaty) and
Regulation No. 1408/71 (the Regulation).

Council Regulation (EC) No. 1408/71 of 14 June 1971 on the application of social security schemes to employed persons, self-employed persons and to members of their families moving within the Community (OJ 1971, L 149/2, OJ, English Special Edition 1971 (II), p. 416). In Derouin, the version amended and updated by Council Regulation (EC) No. 118/97 of 2 December 1996 (OJ 1997, L 28/1) as amended by Council Regulation (EC) No. 1606/98 of 29 June 1998 (OJ 1998, L 209/1) applied.
In this respect, it should be noted that the Treaty
and the Regulation follow different rules regarding the allocation of taxation
rights and the designation of the applicable national social security
legislation, respectively.
How the European Union’s Concerns Result in a Positive Development of the Asset and Wealth Management Industry in Hong Kong
Authors: Yim K.
Published: December 2023

As of 1 April 2019, Hong Kong has a new profits tax exemption regime for investment funds operating in Hong Kong, regardless of their location of central management and control, their size or the purpose that they serve, to be able to enjoy tax exemption for transactions in specified assets subject to meeting certain conditions. A fund can also enjoy the tax exemption in connection with its investments in both overseas and local private companies. Ironically, this new exemption regime was actually triggered by concerns of the Council of the European Union.
Can Distributable Ledger Technology Be Part of the Future Withholding Tax Solution?
Authors: Radcliffe P. , Yung C.
Published: December 2023

In this note, the authors discuss the practical issues beneficial owners holding portfolio investments and financial intermediaries providing services face when making treaty claims, the latest developments on this from a national and international perspective, and how new innovative technology may be the way to resolve these issues.
Adjustment of Deductions in Case of Capital Goods – Revocation of the VAT Number
Authors: Șvidchi N.
Published: December 2023

The ECJ judgment in S.H. v. Administraţia Judeţeană a Finanţelor Publice Sibiu and Direcţia Generală Regională a Finanţelor Publice Braşov addresses the Romanian legislation and the corresponding practice of the tax authorities under which taxable persons with a revoked VAT number, based on national provisions enacted to counter abusive practices, are denied the right to deduct the VAT related to capital goods. In this article, the author explains that the denial of the deduction right is final and is made through a proportional negative adjustment, based on an irrefragable presumption that the capital goods are not used for the purpose of economic activities.
Unlimited Adjustments: Some Reflections on Transfer Pricing, General Anti-Avoidance and Controlled Foreign Company Rules, and the “Saving Clause”
Authors: Kofler G.W. , Verlinden I.
Published: December 2023

In light of Actions 8-10 of the OECD/G20 BEPS Project, this article considers the interaction and increasing pressure points between transfer pricing and general anti-avoidance and controlled foreign company rules, and the effect of article 9 of the OECD Model in light of the saving clause in article 1(3).
Bittersweet (Tax) Symphony
Authors: Wu L.S.
Published: December 2023

This article reviews the tax structure discussed in a report published by ActionAid in 2013. The primary focus is on how domestic rules and tax treaties reduce effective tax rates. The author also discusses recent developments on the part of the OECD regarding its Base Erosion and Profit Shifting (BEPS) initiative.
The Profit Split Method: Status Quo and Outlook in Light of the BEPS
Action Plan
Authors: Chand V. , Wagh S.
Published: December 2023

The authors analyse whether the OECD’s base erosion and profit
shifting (BEPS) project would increase the use of the profit split method.
After reviewing the current landscape in this context, the authors focus on
situations in which the profit split method applies, the various approaches
that can be used to split the profit among associated enterprises and reasons
why the profit split method has been infrequently applied. Finally, the authors
present their views on the application of the profit split method in light of
the BEPS Action Plan.
Some Recent Decisions of the European Court of Human Rights on Tax
Matters
Authors: Baker P.
Published: December 2023

In this note, the author examines recent decisions of the ECtHR
relating to human rights and taxation including a case on the imposition of an
excessively high tax rate on a severance payment, a case on the right to
privacy in respect of an audit on a shared server and a case on the extension
of tax exemptions to non-mainstream religious organizations.
Referral to the ECJ on (Final) Cross-Border Losses – Timac Agro Deutschland (Case C-388/14)
Authors: Leich F. , Cloer A.
Published: December 2023

The authors review a case that was referred to the ECJ by the Fiscal Court of Cologne (Timac Agro Deutschland (Case C-388/14)), which raises issues regarding German loss recapture rules that applied until 1998 and the deductibility of final losses incurred by an Austrian PE at the level of the German parent company applying the Marks & Spencer (Case C-446/03) exception. The court explicitly questions the compatibility of recent German Federal Fiscal Court decisions with ECJ case law and the interpretation of the finality criterion set out in Marks & Spencer.
Indirect Credit versus Exemption: Double Taxation Relief for Intercompany Distributions
Authors: Kofler G.
Published: December 2023

In the 2011 Klaus Vogel Lecture, Professor Georg Kofler examined the trend towards exemption for dividends on direct investment and permanent establishment profits, which Professor John Avery Jones had raised in his Klaus Vogel Lecture on the origins of credit versus exemption in relation to avoiding double taxation.
Sochi 2014 Olympic Tax Legislation
Authors: Tetłak K.
Published: December 2023

The author outlines the details of the Sochi 2014 Olympic tax legislation, which has secured a highly favourable tax environment for the International Olympic Committee and its commercial partners, as well as athletes and other individuals involved in the preparation and staging of the Games.
Online Intermediation Services – The Italian Case of Booking.com
Authors: Grambeck H-M.
Published: December 2023

Online booking platforms have become very important in the tourism sector. However, the VAT treatment of commissions earned by such booking platforms has still not been conclusively clarified as is shown by the Italian case of Booking.com NL. In this article, the author suggests that to avoid such conflicts between tax authorities and taxable persons it would be necessary that rules are fixed and harmonized across the European Union.
Income Taxation through the Life Cycle of an Extractive Industries
Project
Authors: Burns L.
Published: December 2023

This article outlines the main income tax design issues arising during
the life cycle of an extractive industries project, including upon exit from
the project (the article expands upon the discussion of the income tax issues
for extractives industries outlined in L. Burns, n.
3). While in many countries the
significant involvement of non-resident investors in the sector means that
international tax issues such as transfer pricing and thin capitalization are
important, this article focuses primarily on domestic income tax
issues.
X Holding: Why Ulysses Should Stop Listening to the Siren
Authors: Thiel S. van , Vascega M.
Published: December 2023

In this article, the authors critically examine the recent X Holding decision of the European Court of Justice, wherein the Court held that a Dutch rule, which allowed a Dutch parent company to form a "single tax entity" with a Dutch subsidiary but not with a foreign subsidiary, constituted discrimination, but was nevertheless justified on the basis of the balanced allocation of tax jurisdiction.
Marked Reduction in Tax Burden for Companies from 2017 Onwards Due, in Part, to a Revamping of Employee Benefits
Authors: Felkai R.
Published: December 2023

This note addresses the efforts of the legislator to enact significant reductions in the corporate tax burden from 2017 onwards following several years of stability in respect of Hungarian tax law. This is to be accomplished by lowering income taxes, on the one hand, and reducing non-wage labour costs, on the other.
Can VAT Discourage Investment Banks in the GCC from Investing in Domestic Markets?
Authors: oğlu Majidli M.K.
Published: December 2023

In this article, the author criticizes the exemption from VAT of financial services in the GCC VAT system by explaining its impact on domestic investment banks and, as a consequence, on the volume of domestic investment.
The Correctness of the Chinese Position of Enterprise Residence in
Chinese Law: The Institutional and Treaty Implications
Authors: Sharkey N.C.
Published: December 2023

This article considers whether the interpretation of “office of actual
management” given in several Chinese notices is in accordance with Chinese law.
It raises the critical issue of what China’s law actually is and whether the
notices are part of the law or not.
The Blockchain Technology in Transfer Pricing – Artificial Intelligence and Further Synergies
Authors: Müller R. (Robert)
Published: December 2023

The use of blockchain technology and AI is increasingly being discussed to fulfil compliance requirements and automate transfer pricing functions. The development of suitable technical concepts is necessary for this purpose. Even if these concepts are still in their infancy, their use in this area of transfer pricing is becoming noticeable.
Recent Transfer Pricing Developments
Authors: Gouthière B.
Published: December 2023

This article summarizes recent transfer pricing amendments, including new reporting obligations intended to provide the tax authorities with more information in carrying out transfer pricing audits. Further, the article highlights recent court cases that indicate that the French tax courts are still very careful in ensuring that the tax authorities back up their adjustments with sufficient evidence.
Portuguese Taxation of Inward Expatriates and Pensioners: A Sunny Welcome
Authors: Neves T.C.
Published: December 2023

In this note, the author analyses the new Portuguese regime for taxation of inward expatriates and pensioners which combines reduced taxation with flexible requirements.
OECD Base Erosion and Profit Shifting Action 6: The General Anti-Abuse Rule
Authors: Palao Taboada C.
Published: December 2023

In this article, the author examines Action 6 of the OECD Base Erosion and Profit Shifting (BEPS) initiative, with special regard for the proposed general anti-abuse rule (GAAR). In the author’s opinion, although some of the criticism raised against it is justified, the proposed rule is in line with similar rules in comparative law.
The New German Recapitalization Gain Provisions
Authors: Teichert F. , Meickmann T.
Published: December 2023

In this note, the authors examine the new German recapitalization gain provisions from a practical point of view, with particular emphasis on whether or not the legislation is “proportionate” from an EU law perspective.
The Future of the European VAT System
Authors: Wohlfahrt B.
Published: December 2023

The EU VAT system appears to be sensitive to fraud and the European Commission has recently raised the issue of reforming the “transitional VAT regime” currently in force. In this article, the author endeavours to contribute to this discussion by evaluating the various options for the future EU VAT system, including taxation based on the origin principle and the introduction of the generalized reverse charge mechanism, a supplementary EU VAT, and real-time VAT collection (RTvat).
A Critical Examination of the Proposed UK Digital Services Tax
Authors: Obuoforibo B.R.
Published: December 2023

In this article, the author critically examines the United Kingdom’s proposed digital services tax, focusing on its main features, the scope of the charge and potential issues arising from its implementation.
The Determination of UK Corporate Residence: Laerstate BV
Authors: Hughes D.
Published: December 2023

In this note, the author examines the recent decision by the first-tier Tribunal in Laerstate BV concerning the determination of UK corporate residence.
Exit Tax: An Analysis of Relevant Unresolved Issues in Light of the Circular Issued by the Italian Association of Joint Stock Companies
Authors: de Santis D.A.
Published: December 2023

This article examines open issues related to the Italian exit tax
legislation in light of Circular No. 5 of 20 February 2014 of the Association
of Italian Joint Stock Companies, which analyses the historical development of
exit charges at the European (and Italian) level and highlights the main points
that should be further regulated.
Interruptions in Building Site Permanent Establishments To Be Interpreted under the Limited Inclusion Theory
Authors: Pijl H.
Published: December 2023

In this article, the author examines how article 5(3) of the OECD Model (2012) is to be interpreted as regards interruptions in building site permanent establishments. The history of paragraph 19 of the Commentary on Article 5 (2012) is helpful in that exercise. The author concludes that article 5(3) is to be interpreted under the limited inclusion theory.
2008 OECD Model : place of effective management - what one can learn
from the history
Authors: Avery Jones J.F.
Published: December 2023

In the 2008 Update of the OECD Model, the Commentary on Art. 4
(Residence) changed the meaning of "place of effective management", the
corporate residence tie-breaker, by deleting the sentence that had been added
in 2000. This suggests that there is considerable uncertainty about the meaning
of the expression. This article examines the history of the provision that is
now available, which confirms that there has been uncertainty from the
beginning. The article concludes that perhaps the time has come to abandon the
expression.
Commission
Authors: Alvarado M.
Published: December 2023

This overview highlights the Commission’s proposals for authorizing special VAT measures in respect of certain Member States, its State aid investigations initiated against some tax schemes and its reports published on miscellaneous matters.
In Search of Ariadne’s Thread: Permanent Establishments and Losses in the European Union
Authors: Mkrtchyan T.
Published: December 2023

In this article, the author assesses developments in European Court of Justice case law, inter alia, to (1) determine what a “terminal loss” is within the meaning of Marks & Spencer, and how the concept has evolved in more recent ECJ case law, (2) analyse the consequences of any “refinement” of this concept and (3) consider possible solutions to the cross-border compensation of losses with regard to permanent establishments.
New Limitations on the Deduction of Financial Expenses Related to Acquisitions
Authors: Robert E.
Published: December 2023

With effect from 1 January 2012, the 4th Finance Amendment Law for 2011 introduced a new limitation on the deduction of financial expenses related to acquisitions of participation shares, which applies where the acquisition price of a company exceeds EUR 1 million and the purchasing company fails to demonstrate that there is an autonomous decision-making centre in France. This note describes the new provision and comments on its compatibility with EU law.
Taxation of the Digital Economy in Selected Countries – Early Echoes of BEPS and EU Initiatives
Authors: Popa O.
Published: December 2023

This note highlights the initiatives of a number of countries to address taxation of the digital economy in response to the OECD’s BEPS Project and is based on information available up to 1 October 2015.