bluuebunny/crossref_metadata_2025 huggingface dataset:
Commission
Authors: Valério C.
Published: December 2023

This overview highlights the Commission’s (i) consideration of long-term solutions for cross-border teleworking; (ii) initiation of infringement procedures against five Member States over their failure to implement VAT, excise duty exemptions related to defence efforts within the European Union; (iii) reasoned opinion urging Cyprus to implement new temporary VAT exemptions in response to the COVID-19 pandemic; (iv) reasoned opinion insisting that Greece, Latvia and Portugal transpose the new Excise Framework Directive into domestic legislation; (v) reasoned opinion urging Greece to comply with EU VAT rules related to an exemption of postal services; (vi) initiation of four infringement procedures against the United Kingdom over its failure to implement certain measures related to VAT, customs and excise duty in respect of Northern Ireland; (vii) changes to the State Aid Temporary Crisis Framework to support the economy in the context of Russia's invasion of Ukraine; (viii) approval of a Belgian scheme to support video game production; (ix) approval of an Irish scheme for the fishery sector in the context of Brexit; and (x) approval of a French scheme to support horse racing.
The Proposed Tiebreaker Rule in OECD/G20 BEPS Action 6: A Critical Examination of the Possible Motives and Means, and a Potential Alternative
Authors: Sanghavi D.
Published: December 2023

In this article, the author critically examines the proposed tiebreaker rule in the OECD’s Final Report on Action 6 of the Base Erosion and Profit Shifting (BEPS) project, and the motives behind the proposal. The author concludes by suggesting an alternative, which he argues is a more effective means to achieve the intended ends.
New Exit Tax for Individuals
Authors: Gouthière B.
Published: December 2023

In this note, the author outlines France's second attempt at introducing an exit tax on capital gains on shareholdings that accumulate prior to the emigration of a French resident, which was carefully drafted to ensure that the new provision is compliant with EU law and the guidance of the European Court of Justice in regard to exit taxes, in particular the de Lasteyrie du Saillant v. Ministère de l'Économie case.
Cross-Border Mobility of Companies in the European Union: Tax Competition and Increased Scope for the CCCTB following Cartesio
Authors: Cerioni L.
Published: December 2023

In this article, the author considers the implications of the recent
European Court of Justice case of Cartesio with regard to
the cross-border mobility of companies in the European Union and asks if it
represents a further reason for the introduction of the Common Consolidated
Corporate Tax Base.
Restrictions on Treaty Override Resulting from EU Law
Authors: Offermanns R.
Published: December 2023

This article examines the interrelationship between the issue of
treaty override and EU law. In particular, the author examines the influence of
the fundamental freedoms of the Treaty on the Functioning of the European Union
on treaty override, the ECJ's continued reluctance to give a ruling in this
area and the potential impact of secondary EU law.
Interest from Hybrid Debts in Tax Treaties
Authors: Pijl H.
Published: December 2023

The author, in this article, examines the interpretation of the treaty terms "interest" and "dividend" with regard to the interaction of articles 10 and 11 of the OECD Model and hybrid debt. In this respect, the author specifically considers the historical background.
A New Tax Strategy for the European Union: FTT and FAT, Realistic or a Bridge too Far?
Authors: Meussen G.
Published: December 2023

This note examines the various possibilities for imposing a tax on the financial sector, including a Financial Transaction Tax and/or a Financial Activities Tax and concludes that although states may be inclined to introduce such taxes at the national level due to a lack of political will at the EU level, harmonization of direct taxes at the EU level is a better option and an inevitable consequence of a globalized world.
Italian Tax Regime Applicable to Interest on Loans Granted by Non-Italian Resident Banks to Italian Residents – Certain Considerations in Light of the Recent Positions of the Italian Tax Authorities
Authors: Marciante T. , Pittori M.
Published: December 2023

The Italian tax authorities together with the Italian tax police are sending tax questionnaires to non-Italian financial institutions and banks aimed at assessing whether the mentioned non-Italian entities have realized Italian-source income (including, inter alia, interest on loans granted to Italian individuals not acting as withholding tax agents) which has not been reported and taxed in Italy. Such tax questionnaires follow the release of Ruling 41/2018, whereby the same tax authorities stated that interest on loans, granted by a Swiss bank without an Italian permanent establishment to Italian residents, qualifies as Italian-source income to be taxed in Italy at the rate provided by the applicable tax treaty even when the borrower does not qualify as Italian withholding tax agent. This article intends to provide a preliminary description of the Italian tax rules applicable to interest on loans granted to Italian residents by non-Italian resident banks also in light of the recent changes in laws and recent guidelines issued by the Italian tax authorities.
Will the Netherlands Threshold for Levying Taxes on PEs Be Lowered by Proposed Changes in Line with BEPS Action 7: Preventing the Artificial Avoidance of PE Status?
Authors: Duijn H-J. van , IJsselmuiden R.O.
Published: December 2023

The authors provide an overview of the Netherlands permanent establishment (PE) concept and address the question of the extent to which the OECD-proposed changes to the PE concept, as per article 5 of the OECD Model, will result in the Netherlands threshold for levying taxes on PEs being lowered.
The Thai Experience in International Tax Treaty Negotiations
Authors: Mongkhovanit P.
Published: December 2023

The article provides a brief overview of the Thai tax system and the administrative steps and processes involved in the negotiation of international tax treaties by Thailand.
The Interplay between Transfer Pricing and Customs Valuation in Case of Retroactive Profit Adjustments: The Position of the ECJ in the Case Hamamatsu Photonics Deutschland GmbH (C-529/16)
Authors: De Angelis E. , Elshof T.
Published: December 2023

This article discusses the position recently taken by the European Court of Justice (ECJ) regarding the impact on customs valuation of the goods of retroactive profit adjustments performed to bring the financial results of the tested party in line with arm’s length results. The article considers issues such as the choice of customs valuation method in case of transfer pricing systems envisaging year-end adjustments, the impact of advance pricing agreements (APAs) on the customs value of the goods, the options available to taxpayers when navigating through the nuances of the interplay between transfer pricing and customs valuation methods.
Tax Residence Conflicts and Double Taxation: Possible Solutions?
Authors: Cerioni L.
Published: December 2023

The author, in this article, investigates possible solutions to treaty-based tax residence conflicts and, therefore, double taxation arising in the context of the European Union.
Federal Court Agrees with Glencore That Prices for Copper Concentrate Were Arm’s Length
Authors: Butler M.St.J.R. , Wang L. , Vu C.
Published: December 2023

In Glencore Investment Pty Ltd v. Commissioner of Taxation, Davies J has confirmed that the prices received by the taxpayer, on the sale of copper concentrate to its Swiss parent, were “arm’s length”. The decision demonstrates the difficulties and uncertainties associated with litigating transfer pricing cases that face taxpayers and the Commissioner alike. It confirms that transfer pricing, at least in Australia, is not simply a matter of economic analysis and pointing to an arm’s length result. Instead, determining the correct price requires a careful consideration of the statutory tests and a determination of whether the “amount of profits” that have accrued to a taxpayer, differ from the amount of profits that would have accrued, if arm’s length conditions had operated.
Circulars on Transfer Pricing of Contract R&D Centres: The Road Ahead
Authors: Chakravarty A. , Ray S.
Published: December 2023

With a view to establishing a degree of certainty and uniformity in the audits of development centres engaged in research and development activities, guidance has been provided to the tax authorities in the form of Circular 6. The authors discuss the contents of the new Circular, along with developments prior to its issuance and future prospects for taxpayers.
Danske Bank: Will EU VAT Grouping Survive to Reverse Skandia?
Authors: Gamito P.
Published: December 2023

In this article, the author explores a number of issues arising from the recent decision of the European Court of Justice (ECJ) in Danske Bank. Following this judgment, intra-entity supplies fall, in principle, within the scope of VAT if one establishment is a member of a VAT group, thereby recognizing the so-called “reverse Skandia” doctrine. The impact of the case is significant from a theoretical standpoint, although it remains to be seen whether it will actually change the current approach to Skandia in the European Union. In any event, the current state of ECJ jurisprudence will not make taxable persons’ VAT affairs any easier in the absence of legislative intervention. In the meantime, the judgment in Danske Bank is likely to bring new pressures to bear on taxable persons making use of branch structures across the European Union. If irrecoverable VAT charges start hitting internal flows that used to be disregarded, taxable persons may legitimately wonder if, in some cases, it may be better to de-VAT group or not VAT group at all.
Italian Undertakings for Collective Investment: An Update on the Tax Framework
Authors: Banfi L. , Mantegazza F.
Published: December 2023

In this article, the authors provide an update on the tax framework for Italian undertakings for collective investment other than real estate investment funds. This topic, which was described in an article by the authors published in European Taxation 8/2010, has been the subject of recent developments that may be of relevance from both a domestic and international perspective.
Eurozone Exits: Dutch Legal and Tax Aspects
Authors: Dijkstra W. , Hofland D.
Published: December 2023

Even though Greece was recently bailed out for a second time, there is still a realistic possibility that one or more weaker Eurozone Member States will exit the Eurozone. This article addresses the legal and tax aspects of such an exit from a Dutch perspective. In a legal context, a key issue is the redenomination risk resulting from the new currency and monetary laws introduced by the exiting state. From a tax perspective, the main issue is if and when currency results on investments or liabilities that will be expressed in the new currency introduced by a Member State upon its exit from the Eurozone may be recognized.
The Netherlands as an Innovation Hub: An Appraisal of the Innovation Box
Regime
Authors: Schellekens M.
Published: December 2023

This note describes the innovation box regime in the Netherlands,
including its historical development, current requirements and international
aspects.
The Taxation of Non-Resident Rental Income from Movable Property in the Tax Treaties Concluded by Brazil
Authors: André Rocha S.
Published: December 2023

In this article, the author considers the implication of the taxation of rental income and royalties that are derived by non-residents in relation to the OECD Model, the UN Model and the tax treaties that Brazil has concluded.
The Interaction of the Duty to Make a Suspicious Activity Report under the Proceeds of Crime Act and the Obligation to Report under Hallmark D of DAC6 and the OECD Mandatory Disclosure Regime
Authors: Jackson G. , Brown Harriet E.
Published: December 2023

This article exists because of a disagreement. The authors regularly work together in practice and in print. They both work in the field of international tax information exchange regimes and have opinions that sometimes diverge. They diverge particularly in relation to the subject matter of this article.
The Tax Treatment of Non-Resident Sportsmen Image Rights: An Ambulatory Interpretation of the Spain-Netherlands Tax Treaty
Authors: Juan y Ledesma Á. de
Published: December 2023

In this article the author focuses on the Spanish taxation of image rights related to international sportsmen, the complexity of which has led to inconsistent judicial and tax authority decisions regarding interpretation, particularly with regard to the characterization of income from such rights. The article highlights a recent Supreme Court decision that, although it clarifies the taxation of image rights, may lead to further interpretation problems in other cases.
Update on the United Nations Tax Committee Developments
Authors: Lennard M.
Published: December 2023

This article outlines the main issues discussed during the ninth annual session of the United Nations Committee of Experts on International Cooperation in Tax Matters, held in Geneva from 21 to 25 October 2013.
Changes Affecting Financial Institutions and Managed Investment Trusts under the New Australia–New Zealand Tax Treaty
Authors: Joseph A.
Published: December 2023

Australia and New Zealand have entered into a new income tax treaty which came into effect in March 2010. Among the changes brought about under this new treaty, is a substantial decrease in the withholding tax rates on certain interest, dividend and royalty payments. This article considers the impact of the new treaty on financial institutions.
Practical Analysis of the Potential Effects of US Border Adjustments on Goods Supply Chains from the EU Perspective
Authors: Rodríguez Cuadros M.A.
Published: December 2023

In this article, the author considers the practical implications of the implementation of border adjustments in the supply chain by the United States as proposed in the Republican Party’s A Better Way – Our Vision for a Confident America of June 2016 from the perspective of the European Union.
Arm’s Length Pricing: Canadian and Australian Perspectives
Authors: Joseph A.
Published: December 2023

Two recent cases, one in Australia and the other in Canada, in which the tax authorities failed in their attempts to impose transfer pricing adjustments, lend support to the view that the courts are broadening their attitude in determining arm’s length price adjustments in transfer pricing cases.
Red Card Article 17?
Authors: Molenaar D. , Tenore M. , Vann R.
Published: December 2023

In this article, the authors assess the current position regarding the debate over article 17 of the OECD Model (2010) and whether or not the provision should be amended, or even be considered for removal from the OECD Model.
Opinion Statement ECJ-TF 3/2021 on the ECJ Decision of 19 March 2021 in MK v. Autoridade Tributária e Aduaneira (Case C-388/19) on the Option of Taxpayers to Avoid Discriminatory Taxation of Capital Gains
Authors: Kofler G. , Garcia Prats F.A. , Haslehner W. , Heydt V. , Kemmeren E. , Lang M. , Nogueira J.F. Pinto , HJI Panayi C. , Raventós-Calvo S. , Richelle I. , Rust A. , Shiers R.
Published: December 2023

In this CFE opinion statement, the CFE ECJ Task Force comments on the ECJ decision in MK v. Autoridade Tributária e Aduaneira (Case C-388/19) of 18 March 2021. The Court confirmed its previous case law and held that the Portuguese (optional) regime for taxation of capital gains from immovable property of non-residents was contrary to the free movement of capital under article 63 of the TFEU since non-residents were taxed less favourably than residents.
Proposal to Introduce a US Patent Box Regime
Authors: Choudhury S.
Published: December 2023

A discussion draft of the Innovation Promotion Act of 2015 was released in July 2015 by the US House Ways and Means Committee.
VAT Committee – Guidelines 2012-2013
Authors: The Editors
Published: December 2023

This overview contains the Guidelines adopted by the VAT Committee in the period from 1 July 2012 to 1 July 2013.
Luxembourg Tribunal’s Decision: Arm’s Length Interest Rate on a Shareholding Loan and Transfer Pricing Documentation – Analysis of Case N° 40348 of 22 October 2018
Authors: Rasch M. , Cea A.
Published: December 2023

In October 2018, the Luxembourg Administrative Tribunal decided on a case of hidden dividend distribution. This is an important case because it provides insight on how the Luxembourg tax authorities focus on financial transactions as well as on the obligation to prepare transfer pricing documentation. In this article, the authors discuss the case.
Determining the Place of Taxation of Transactions under VAT/GST: Can Transfer Pricing Principles Help?
Authors: Charlet A. , Holmes D
Published: December 2023

In this article, the authors consider how
Transfer Pricing principles for corporate income taxes as set out under
Articles 7 and 9 of the OECD Model Tax Convention may potentially be of some
use for VAT/GST regimes in determining the place of taxation in connection with
cross-border transactions. It contains a discussion of the differing approaches
taken for corporate income tax and VAT/GST purposes in relation to intra-entity
dealings. It then describes how price adjustments or reallocations of income
may be required under the arm’s length principle, and the impact these may have
on ensuring that the correct place of taxation for VAT purposes may be
achieved.
The Potential Effect of Action 4 of the OECD Base Erosion and Profit Shifting Initiative Regarding Excessive Interest Deductions on Companies in Asia
Authors: Dong Y. , Kaur B.
Published: December 2023

This article examines the potential effect of Action 4 of the OECD Base Erosion and Profit Shifting Initiative regarding excessive interest deductions on multinational groups in seven Asian jurisdictions. The authors find that in almost all jurisdictions, companies in the manufacturing sector would be affected the most by the rules.
Special Issues on Common Consolidated Corporate Tax Base
Authors: Bernegger S. , Huber F.
Published: December 2023

After eight years of preparation, the European Commission released on 16 March 2011 its Proposal for a Council Directive on a Common Consolidated Corporate Tax Base. The proposed Directive would, on an optional basis, allow group companies to file a single tax return in a single Member State for all group members operating in the European Union. The International Transfer Pricing Journal features a comparative survey examining how this proposal has been received in various Member States, along with an outline prepared by Mr. Louan Verdoner. Country report on Austria.
ECJ Referral Regarding Interim Tax for Private Foundations (Familienprivatstiftung Eisenstadt (Case C-589/13))
Authors: Simader K.
Published: December 2023

In this article, the author comments on the pending Familienprivatstiftung Eisenstadt case (Case C-589/13), which
addresses the special tax provisions for private foundations that apply in
Austria, in particular the interim tax levied despite distributions being made
to non-resident beneficiaries when such distributions are covered by a tax
treaty and relieved in Austria.
The Implementation of ATAD into Luxembourg Law
Authors: Fisch J.-L. , Budzin-Dang A.
Published: December 2023

This article deals with the implementation of ATAD 1 in Luxembourg law. It offers preliminary thoughts on the Luxembourg implementation of the ATAD by way of a detailed review of the five anti-abuse ATAD Law measures, analysing their interaction with existing rules and highlighting grey areas that quickly need clarification.
Cross-Border Leasing
Authors: Eichelberger J.
Published: December 2023

The comparative survey articles are based on selected papers presented
at the Baker & McKenzie 29th Annual Asia-Pacific Tax Conference held in
Singapore on 29 and 30 October 2013. The 30th Annual Asia-Pacific Tax
Conference is to be held in Hong Kong in November 2014. For more information,
please contact Liane Tsang of Baker & McKenzie, Hong Kong by tel.: +852
2846 2358 or by e-mail: liane.tsang@bakermckenzie.com.
Comparison of the Proposed Changes to the OECD and US Model Conventions
Authors: Carman P.
Published: December 2023

The author considers recently proposed changes to the US Model Convention, contrasting them with OECD proposals that are part of the Base Erosion and Profit Shifting project. Particular attention is given the introduction under BEPS Action 6 of a limitation on benefits clause, a principal purpose text and a rule dealing with the application of treaties to branches in third countries.
Italian Revenue Agency Provides New CFC Guidance
Authors: Manca M.
Published: December 2023

Although Italy revised its CFC legislation in 2018 (Legislative Decree 142) in order to implement the EU Anti-Tax Avoidance Directive (2006/1164), it was not until December 2021 that it provided guidance on implementation in Circular letter 18/E. This article addresses the most significant aspects of the Circular, in particular in light of comments received during the public consultation that preceded its release.
Will the European Union Fall in Love with DEBRA?
Authors: Valerio C.
Published: December 2023

The European Commission has proposed a new directive to more closely equalize the income tax treatment between equity and debt financing for corporations doing business in EU Member States. Carla Valério examines the details of the proposal – with the clever acronym DEBRA – and looks at what it could mean for European corporations and capital markets, if adopted.
New Polish Controlled Foreign Company Rules
Authors: Majdowski F. , Missala W.
Published: December 2023

In this article, the authors examine the recently introduced Polish controlled foreign company rules and provide a detailed description of the new legislation against such rules in other countries together with a brief reference to the latest OECD initiative on base erosion and profit shifting.
The Absence of a Stable Core in the International Taxation Regime
Authors: Shome P.
Published: December 2023

In this article, the author sets out his views on the problems arising as a result of the lack of a stable core in the current international tax regime, together with ways in which this absence could be resolved.
Japanese Tax Reforms Square Up to BEPS Action 1 to Tackle Tax Challenges of the Growing Digital Economy
Authors: Becker A. (Adam)
Published: December 2023

In this article, the author focuses on Japan’s response to the tax challenges of the growing digital economy, including the country’s significant reforms in respect of the definition of permanent establishment, the application of consumption tax rules and the reach of anti-tax haven rules to controlled foreign corporations of Japanese-headquartered MNEs.
An EU-Wide Minimum Corporate Tax Rate as an Integral Part of the CC(C)TB: The Analogy of Germany’s Minimum Local Business Taxation
Authors: Pagels K. , Wittenstein P.U.
Published: December 2023

Once many possibilities of tax base erosion (for example, transfer pricing) have been abolished, some Member States may try to find new means of establishing an attractive tax environment for multinational companies (e.g. low tax rates). There is, however, currently no plan to harmonize corporate tax rates within the European Union. This article refers to Germany’s local business taxation as an analogy to demonstrate why deliberations on a minimum corporate tax rate should be part of the European Union’s CC(C)TB deliberations.
The Feared Austerity Budget Enters into Force
Authors: Nogueira J.F. Pinto
Published: December 2023

In this note, the author outlines the austerity measures contained in the Portuguese State Budget for 2012, with a particular focus on tax measures that are relevant from a cross-border perspective.
A Comprehensive Analysis of Proposals To Amend the Interest and Royalties Directive – Part 2
Authors: Fernandes S. Martinho , Bernales R. , Goeydeniz S. , Michel B. , Popa O. , Santoro E.
Published: December 2023

In this two-part article, the authors provide
a comprehensive analysis of the issues identified in the 2009 Commission report
on implementation of the Interest and Royalties Directive, which was based, in
part, on an IBFD survey. Part 1 addressed issues concerning the personal scope
of the Directive. Part 2 focuses on the Directive's substantive scope and
issues of fraud and abuse.
Windfall Profit Taxes Across Europe: Have They Proved to be Effective for Taxing Windfall Profits in the Energy Sector?
Authors: Alvarado M.
Published: December 2023

In this article, the author provides details of the various windfall taxes that have been enacted in Europe in response to the increased profits of, in particular, the energy and banking sectors. The author describes the policy reasons that led Member States to agree on a windfall profits tax, how the tax has been implemented across European countries, the constitutional challenges and State aid issues that might arise in the context of EU law and various reasons for and against retaining such taxes.
Parliament
Authors: Valério C.
Published: December 2023

This overview highlights the European Parliament’s (i) resolution proposing new taxes as own resources; (ii) endorsement of rules to trace crypto asset transfers and harmonize the crypto assets market; (iii) the FISC Subcommittee’s search for ways to support national tax authorities.
Treatment of Funding Risk and Capital – Financial Services versus Non-Financial Services: Never the Twain Shall Meet?
Authors: Sim S. , Rigo A. , Agrawal D.
Published: December 2023

Functions, assets and risks in transfer pricing mirror the classical economic factors of land, labour and capital. Famously, Thomas Piketty has written about the dominant role of capital in income equality in our age. However, from significant people’s functions in 2010 to DEMPE in BEPS Actions 8-10, the recent evolution of thinking around transfer pricing has increasingly emphasized functions, i.e. labour, while relegating capital to a supporting or secondary role in the attribution of profits. The authors examine the treatment of capital in transfer pricing, comparing and contrasting between the financial services and non-financial services sectors, with the hope of contributing to a more balanced appreciation of the role of capital and the need for future guidance in this area.
Telecommunications Services and the Neutrality of the EU VAT System
Authors: Pfister P.
Published: December 2023

On the basis of the decision of the Court of Justice of the European Union in the fairly bizarre case of EGN, the author discusses two aspects of the principle of neutrality which are related to this case, i.e. the right to recover VAT in cross-border scenarios and the system of taxing telecommunications services. Even under the new refund arrangements that entered into force on 1 January 2010, the situation within the European Union as regards the right to recover VAT in cross-border scenarios continues to be short of neutral, and it is impossible to predict when the situation will improve. By contrast, as regards taxation of telecommunications services, it is clear that it will take another four and a half years until the current complex rules are replaced by a new tax regime, which will be, at least theoretically, in compliance with the principle of tax neutrality.
National Grid Indus Case: Re-Thinking Exit Taxation
Authors: Broek H. van den , Meussen G.T.K.
Published: December 2023

This note examines the recent decision of the European Court of Justice in the National Grid Indus case concerning Netherlands exit tax levied on a Netherlands limited liability company transferring its real seat to the United Kingdom. The Court held that exit taxation on hidden values in company assets is allowed but that collection of the tax on the latent capital gains must be deferred until disposition.
Distributors with Losses – The Supreme Administrative Court Overturned the Administrative Court’s Decision
Authors: Raunio M.
Published: December 2023

In early April 2020 the Supreme Administrative Court published its ruling SAC 2020:34 on transfer pricing of a loss-making distributor. In addition to a distributor's ability to incur long-term losses, the case also highlights the importance of identifying the relevant related-party transactions to be transfer priced, as well as it considers issues related to the selection of the tested party.
Transfer Pricing Challenges
Authors: Borge N. , Sim L.
Published: December 2023

Cambodian taxpayers have not escaped the global trend of increased
focus on transfer pricing. The article examines the issues and questions
arising out of the recent surge in tax audits and the transfer pricing
challenges that lay ahead.
The Dutch Anti-Base Erosion Rule: Recent Developments in the Context of Fraus Legis and EU Law
Authors: Vries R.J. de , Pijnenburg B.M.R.
Published: December 2023

Recently, the Dutch Supreme Court has raised several probing cases on article 10a of the Dutch Corporate Income Tax Act 1969 (CITA) (also known as the Dutch anti-base erosion rule) in a short period of time in the context of fraus legis. In one of these rulings the Dutch Supreme Court appears to be taking a remarkable path which in the authors’ view does not algin with the trias politica concept. Moreover, in literature many questions are raised on whether the Lexel ruling of the Court of Justice of the European Union has an impact on the sustainability of the Dutch anti-base erosion on which the Dutch Supreme Court finally referred preliminary questions on 2 September 2022. In this article the authors will provide the reader with the current state of affairs in relation to article 10a CITA – in particular in the context of fraus legis and EU law.
Bulletin 16: China Makes a Pre-Emptive Strike against BEPS
Authors: Liu J. , DeSouza G. , Zhou H.
Published: December 2023

The authors consider recently introduced measures that could be used by Chinese tax authorities to deny income tax deductions for certain service fees and royalties paid by Chinese companies to their overseas affiliates. Potential strategies are also suggested for multinationals to safeguard their tax interests in China.
Crossing the Digital Services Tax Divide – But Is It Worth the Journey?
Authors: Salis G.
Published: December 2023

Despite compelling legal and constitutional barriers to digital services taxes (DSTs) in the United States, more states are moving forward with EU-style DST taxing models in the post-COVID economy. How did we get here, and what do tax professionals need to know about this growing trend?
An Introduction to the 2014 Update to the OECD Model
Authors: Arnold B.J.
Published: December 2023

In this short introduction to the 2014 Update to the OECD Model, the
author describes the background to the update and makes some general comments
on the changes made to the articles of the Model and their
Commentaries.
Court of Justice
Authors: Morales T.
Published: December 2023

This overview highlights the ECJ’s decisions on (i) the difference in tax treatment applicable to capital gains arising from the sale of immovable property between resident and non-resident taxpayers and (ii) the General Court's decisions on the compatibility of transfer pricing arrangements between companies within the Amazon group and the intra-group financing structures between Engie's companies with State aid rules.
Brexit: Selected Tax Implications of the Trade and Cooperation Agreement
Authors: De Lillo F. , Morales T. , Popa O.
Published: December 2023

This note describes selected tax implications of the Trade and Cooperation Agreement between the European Union and the United Kingdom, which governs their mutual relations as from 1 January 2021.
Supreme Court Provides Guidance on Treatment of Foreign Funds Investing into Japan
Authors: Roose E.N.
Published: December 2023

Many global funds use foreign limited partnerships established in the Cayman Islands or Delaware to invest in Japan. The author considers a recent Supreme Court case regarding how such partnerships should be treated for Japanese tax purposes.
Analysis of High Court Rulings in N.G.C. Network and L’Oreal India
Authors: Bilaney S.K.
Published: December 2023

The author analyses two recent High Court rulings in the N.G.C. Network (India) and L’Oreal India cases.
The Revised Luxembourg-Poland Income and Capital Tax Treaty (1995) –
Overview of Major Amendments from Poland’s Treaty Policy Perspective
Authors: Lewicki T. , Trzópek K.
Published: December 2023

In this article, the authors discuss key amendments to the
Luxembourg-Poland Income and Capital Tax Treaty (1995), introduced by the 2012
Protocol. Particular attention is given to anti-avoidance rules and the real
estate company clause.
New Regulations on
Transfer Pricing
Authors: Bouzas Fernândez M.A.
Published: December 2023

A 2008 Royal Decree amends the Spanish Corporate Income Tax
Regulations and implements important changes with regard to related-party
transactions. This article considers the impact of these changes on Spanish
taxpayers engaged in related-party transactions, as well as changes to the
rules governing advance pricing agreements.
CFC’s Indirect Investments in US Property Results in Income Inclusion
for US Purposes
Authors: Carman P.
Published: December 2023

An internal memorandum in the Chief Counsel’s Office of the US
Internal Revenue Service (IRS) concluded that a taxpayer was not successful in
limiting the amount of an income inclusion that was recognized by a US parent
of an international affiliated group when a group member loaned money to the US
parent. The IRS looked through the intermediate lender to the source of the
funds within the controlled group to determine the appropriate amount of the
income inclusion.
The Role of Tax Administrations in the Current Political Climate
Authors: Owens J.
Published: December 2023

The author places the current political debate on tax evasion and
avoidance in a broader perspective and argues that effective tax compliance
will only be achieved if it is combined with good taxpayer service and there is
a constructive and transparent dialogue between tax authorities, taxpayers and
tax advisors.
Towards a Simpler, More Robust and Efficient VAT System by Levying VAT at EU Level
Authors: Vyncke K. , Cordewener A. , De Broe L.
Published: December 2023

At the end of 2010, the European Commission launched a public debate on the future of the EU VAT system. In this article, the authors explain that conversion of the VAT system into a true EU tax is the most appropriate approach. The description of their proposed EU VAT system does not pretend to be complete but gives a good general idea of the authors’ approach. Even if it appears that adoption of the proposed EU VAT system is not possible for political or practical reasons, specific elements of the authors’ proposal are still of use.
New German Transfer Pricing Regulations on Business Restructurings, Documentation Deadlines and Rules for Tax Audits: Overview and Practical Implications
Authors: Heidecke B. , Sauer D. , Sussick J. , Marburg C.
Published: December 2023

Two highly relevant pieces of transfer pricing legislation have been passed in Germany in 2022: The revised Ordinance on Relocation of Functions is expected to increase the number of fact patterns that can qualify as a relocation of functions and it contains stricter rules for exit tax valuation approaches. The revised General Tax Code aims at expediting tax audit processes in Germany by intensifying the system of cooperation most notably via introducing new and adjusted deadlines for tax auditors but also for taxpayers. These are expected to lead to additional pressure on taxpayers and will likely require better transfer pricing documentation processes as well as a higher level of anticipation of potential tax audit questions.
Ten Questions about Why and How to Tax the Digitalized Economy
Authors: Schön W.
Published: December 2023

In this article, the author raises major policy questions with regard to current OECD and EU projects which aim at the taxation of the digitalized economy. He lays out the basic choice between tax measures securing one-time taxation of profits and a full shift of taxing rights towards market countries, and he presents options including dedicated new taxes on digital transactions, a realignment of source rules or (preliminary) withholding taxes. He concludes that the currently discussed new set of rules based on the notion of “digital presence” seems less in line with the traditional understanding of the corporate tax than a set of rules based on the notion of “digital investment”.
Report on the Symposium “Access to Litigation” Held on 14 February 2019 at the World Trade Centre, Utrecht
Authors: Offermanns R.
Published: December 2023

In this note, the author reports on a symposium held on 14 February 2019 at the World Trade Centre in Utrecht, the topic of which was “access to litigation”.
Procedural Instruments as a Way To Deal with Valuation Uncertainty in International Tax Law
Authors: Seer R.
Published: December 2023

In this article, the author looks at the problem of valuation uncertainty and examines procedural instruments that can be used to mitigate it.
The German Economic Growth Acceleration Act: Main Changes and Opportunities for Taxpayers
Authors: Stadler R. , Bindl E.
Published: December 2023

The German Economic Growth Acceleration Act, which entered into force on 31 December 2009, seeks to strengthen economic growth through the introduction of several beneficial provisions in the area of business taxation. In this article, the authors review those provisions and the opportunities they present for taxpayers.
Council
Authors: Morales T.
Published: December 2023

This overview highlights the Council’s (i) updated review of foreign preferential tax regimes examined by the Code of Conduct Group on Business Taxation, (ii) ratification of the EU-UK Trade and Cooperation Agreement and (iii) authorization of the Croatian exemption for gas oil used in humanitarian demining.
Perpetual Cumulative Subordinated Debt: Deferred Interest Payment and Deductibility
Authors: Joseph A.
Published: December 2023

Income Tax Assessment Amendment Regulations 2011 (No. 2) were made on 10 March 2011 to ensure that payments to note holders made in respect of certain perpetual cumulative subordinated notes issued by banks, may still be tax deductible to the issuer despite the fact that returns on the notes are contingent on factors such as profitability, insolvency or negative earning conditions.
Structures Lacking Substance and Business Purpose Come under Further
Challenge
Authors: Finnerty C.J. , Lai B.
Published: December 2023

This article discusses the Chinese government's increased enforcement
efforts to tackle potential abuse of tax treaty benefits via structures and
transactions which lack business purpose and/or commercial substance. It also
highlights the areas an entity should focus on to minimize the risk of tax
treaty benefits being denied.
Compatibility with the International Meaning of Beneficial
Ownership
Authors: Sharma S. (Shailendra) , Rauniyar S.S.
Published: December 2023

In this article, the authors discuss international developments on
beneficial ownership, namely consultations taken by the OECD to clarify the
meaning of the term. The authors also discuss India’s stand on the subject by
reference to domestic law and judicial principles.
The VAT Implications of Electronic Services Rendered by Non-Resident Suppliers to South African Customers
Authors: Botes M.
Published: December 2023

In this article, the author discusses the VAT implications of the supply of electronic services by a non-resident to a South African customer. For this purpose, the author outlines the interaction between the liability of the South African customer to account for VAT under the reverse charge mechanism and the liability of the non-resident for VAT registration in South Africa. The author then provides an overview of the recent VAT reform in this regard and analyses the application of the new rules.
Compensation for Surrender of a Right: The Income Tax and VAT Implications - A Case Note
Authors: Moss-Holdstock C.
Published: December 2023

In this article, the author examines recent South African High Court decisions regarding whether monies received by a taxpayer for the early termination of an exclusive right to distribute whisky were, for income tax purposes, capital or revenue and, separately for VAT purposes, consideration for the supply of services.
Location-Specific Advantages: A Rising Disruptive Factor in Transfer Pricing
Authors: Li J. (Jinyan) , Ji S.
Published: December 2023

In this article, the authors consider location-specific advantages (LSAs) in transfer pricing analysis, with a special emphasis on the practice in China. They suggest that LSAs disrupt some of the basic assumptions underlying the current consensus on the application of the arm’s length principle without, arguably, violating the purpose of the principle as stated in article 9 of the OECD Model.
Secondary Adjustment: A Potential Wave of New Transfer Pricing Litigation
Authors: Dugar A. , Bhandari L.
Published: December 2023

This article discusses the recent amendments to India’s Income Tax Act, which incorporate secondary adjustments into the country’s transfer pricing regime. The authors critique the language of the new statutory provisions and examine a variety of challenges to their application, which are likely to result in further transfer pricing litigation.
Beneficial Ownership
Authors: Booker T.
Published: December 2023

The article serves as a follow-up to the author’s article
Recent Developments Regarding Beneficial
Ownership in Denmark published in issue 2/3 (2012) of European Taxation. The article covers recent Danish practice in
the area and concludes with an overview of recent Danish legislation on the
interpretation of the term "beneficial owner".
New APA Request Procedure in Chile
Authors: Flores Quiroz F.S.
Published: December 2023

This article provides a brief overview of the main modifications introduced by the tax authority in the APA request procedure in Chile under Resolution 114 of 2022.
OECD Guidelines on Business Restructuring and German Transfer of Function Regulations: Do Both Jeopardize the Existing Arm’s Length Principle?
Authors: Rasch S. , Schmidtke R.
Published: December 2023

With the finalization of Chap. IX of the OECD Guidelines and the publication of the final German administration principles dealing with the transfer of functions, on the OECD level as well as in Germany, comprehensive final guidelines and regulations are available for cross-border business relocations between related parties. This article analyses the extent to which the new guidance is in line with the existing interpretation of the arm’s length principle.
Captives to 2020: Opportunities and Challenges
Authors: Soar J. , Burtwell S. , Smith J. (James)
Published: December 2023

Over the past decade the role of captives has changed dramatically and captives are now more generally viewed as dynamic vehicles to facilitate risk financing, rather than just risk transfer or self-insurance tools. The authors consider the current landscape for captives, and present their views on future opportunities and challenges.
The Crisis: A Window of Necessity for EU Taxation
Authors: Vanistendael F.
Published: December 2023

This article is a transcription of the Mössner lecture,
This text is based on the Mössner lecture, which was delivered on 29 May
2010 at the annual congress of the European Association of Tax Law Professors
in Leuven (Belgium). which was delivered on 29 May 2010 at the
annual congress of the European Association of Tax Law Professors in Leuven
(Belgium). The author provides an overview of the pertinent issues currently
faced by the European Union that have been brought to light as a result of the
recent financial crisis.
Determining Arm’s Length Prices in a COVID-19 World – ATO Issues Three Sets of Guidance
Authors: Butler M. , Vu C. , Wang L.
Published: December 2023

This article examines three publications issued in June and July 2020 by the Australian Taxation Office (ATO) that provide the ATO’s views on the implications of the COVID-19 pandemic for transfer pricing arrangements.
Saving Arm’s Length Pricing: From Economists’ Myths of Tax Avoidance by Taxpayers, to the Reality of Uncertain Application of Rules
Authors: Musselli A. , Musselli A.
Published: December 2023

In this article, the authors affirm that while some economic studies conclude that there is a breach of the arm’s length standard by corporations, the reality is not clear. It is uncertain how tax authorities in different countries apply the arm’s length standard and whether it is applied in a consistent manner throughout various countries. The real problem is whether the arm’s length standard, as laid down in the OECD Guidelines (and in countries’ legislation), allows firms and tax authorities to anticipate which is the right rule to apply in concrete cases. This article presents some reasons and circumstances why and when this does and does not occur, and proposes some solutions.
AFMB Ltd and Others (Case C-610/18): Definitive Acceptance of the Economic Employer Principle in Multi-State Situations
Authors: Bierlaagh R.
Published: December 2023

In this note, the author discusses the ECJ decision in AFMB Ltd and Others (Case C-610/18) wherein the Court determined that the entity that is considered the employer for social security contribution purposes is the undertaking that: (i) has actual authority over the worker, (ii) bears the actual wage costs of the worker and (iii) has the actual power to dismiss the worker.
The VAT revolution - 2010 and beyond
Authors: Nittmann J.
Published: December 2023

On 1 January 2010, the VAT system of the European Union will be
amended as regards the rules on the place of supply of services and recovery of
VAT incurred in other EU Member States. Those amendments will affect many
businesses. In this article, the author summarizes the amendments, looks at the
time lines and explains how businesses should get ready now.
The 2020 Call-Off Stock Arrangements: A Simplification?
Authors: Wille P.
Published: December 2023

In this column, the author discusses the changes in call-off stock rules introduced by the new article 17a of the EU VAT Directive.
Reform of the German Controlled Foreign Company Rules
Authors: Eckl P. , Schill F.
Published: December 2023

This article provides an overview of the reform of the German controlled foreign company rules, which, inter alia, is aimed at implementing the CFC regime of the EU Anti-Tax Avoidance Directive (2016/1164).
2022 WU Global Transfer Pricing Conference: “Transfer Pricing Developments around the World”
Authors: Kovács D. , Lawson Y.
Published: December 2023

This article highlights key points discussed during the 2022 WU Global Transfer Pricing Conference “Transfer Pricing Developments around the World 2022”, 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.
BEFIT – Is the Arm’s Length Principle Still Fit for Purpose?
Authors: Wingerter B.
Published: December 2023

On 18 May 2021, the European Commission issued a press release announcing an ambitious new project: the creation of a business taxation framework that would be both suitable and sustainable for the 21st century. Embedded in this project was an outline of the Business in Europe: Framework for Income Taxation, or “BEFIT” proposal. In this article, the author examines the merits, as well as the potential downfalls, of the European Commission’s proposal, including an assessment of whether such a project is necessary given the ongoing initiatives at the level of the OECD.
Housing Taxation: The Special Case of the Netherlands
Authors: Hemels S.J.C. , Monsma A.
Published: December 2023

In this article, the authors examine the peculiarities of the Dutch housing systems with specific reference to its implications for both national and local taxation in the Netherlands.