bluuebunny/crossref_metadata_2025 huggingface dataset:
Government Support for Foreign Venture Capital Funds Investing in Hong Kong Tech Start-Ups
Authors: Yim K.
Published: December 2023

This article analyses the effectiveness from a tax perspective of the recent scheme to encourage foreign venture capital funds to invest in innovative industries in Hong Kong.
Key Developments Regarding Court Cases on Tax Rulings
Authors: Lampreave Márquez P.
Published: December 2023

The European Commission (the Commission) has been analysing the Member States’ tax ruling practice, as well as advance pricing agreements (APAs) granted by tax authorities in favour of certain entities or groups. The Commission claims that such rulings deviate from the arm’s length principle (ALP) and that they grant an economic advantage to beneficiaries in a selective manner. The use of State aid rules in tax matters, in general, has led, however, to criticism. This article examines whether the State aid rules provide an appropriate instrument for controlling profit-shifting by multinational groups.
Transfer Pricing: Valuation of Intangibles and Simplification – A
Summary of Key Issues at the International Level
Authors: Valente P.
Published: December 2023

In this note, the elected Chairman of the Fiscal Committee of the CFE,
Mr Piergiorgio Valente, provides a general outline of issues regarding the
valuation of intangibles in the transfer pricing context in light of the OECD’s
simplification initiative by way of introduction to the CFE Opinion Statements
in this regard that follow.
Decentralizing Value Added Taxes in Federations and Common Markets
Authors: Bird R.M.
Published: December 2023

In this article, the author concludes that the coexistence of national and regional VATs is feasible technically and acceptable politically. Experience with regional VATs suggests that problems arising from differing national VATs in the European Union may be largely resolved by establishing a firmer “EU-wide” framework for improving VAT administration.
Finance Act 2010
Authors: Maguire T.
Published: December 2023

The Irish Finance Act 2010 contains several significant developments
from a direct tax perspective. This note outlines some of the major amendments
introduced by the Finance Act 2010 and considers their possible implications.
Implementation of the AIFM Directive in Italy – Overview of the Tax Implications
Authors: Mantegazza F. , Brambilla A.
Published: December 2023

The authors, in this article, provide an overview of the main tax implications of implementation in Italy of the AIFM Directive (2011/61) for asset managers, investment funds and their foreign investors. Implementation of the AIFM Directive has given the Italian legislator an opportunity to introduce a new category of undertakings for collective investment, defined as Italian fixed capital investment companies (SICAFs).
Taxation of the Digital Economy: French Reflections
Authors: Gaoua N.
Published: December 2023

In this note, the author highlights the challenges of taxing the digital economy, in particular the fact that the permanent establishment concept has not been adapted to address this new form of business activity. After outlining international efforts to fill the gap, the author describes unilateral measures that have been proposed by France.
Scanning the Scope of Skandia
Authors: Cornielje S. , Bondarev I.
Published: December 2023

In this article the authors explore a number of questions around the impact of the recent decision of the ECJ in Skandia. Their analysis focuses on the implementation of the VAT grouping arrangement in Sweden, the possibility of considering as a taxable transaction the charges between a main establishment and its branch, and if the impact of this case should be limited to situations where a main establishment is in a country outside the European Union.
Two Recent Transfer Pricing Preliminary Rulings by the Finnish Supreme Administrative Court
Authors: Raunio M. , Isomaa-Myllymäki A.
Published: December 2023

On 13 September 2017, the Finnish Supreme Administrative Court published two rulings concerning transfer pricing. The ruling KHO 2017:145 dealt with the transfer pricing of an ERP system through a SaaS model. The ruling KHO 2017:146 concerned the service provider’s obligation to add a mark-up on its costs when defining an arm’s length service charge. This article explains the facts of these cases and considers the rulings and their implications for the application of the arm’s length standard in Finland.
The ATAD 2 Anti-Hybrid Rules versus EU Member State Tax Treaties with Third States: Is Override Possible?
Authors: Karaianov K.
Published: December 2023

This article analyses the anti-hybrid mismatch rules applicable in respect of third countries contained in the amended EU Anti-Avoidance Directive (2016/1164) (ATAD 2). The author concludes that, in general, the Council designed ATAD 2 so as to ensure that Member States could avoid possible treaty override and preserve their obligations with third countries although, in a limited number of scenarios, treaty override could still arise.
The Legislative Programme for 2020/2021
Authors: Bjørnholm N.
Published: December 2023

In this note, the author highlights aspects of Denmark’s legislative programme for 2020/21 that would be of interest to an international audience, including, inter alia, COVID-19 tax measures, measures in response to OECD and EU initiatives (including amendments to the loss utilization rules, PE definition and CFC rules), the green tax reform, transfer pricing measures and R&D incentives.
State Aid and Tax Rulings – An Assessment of the Selectivity Criterion of Article 107(1) of the TFEU in Relation to Recent Commission Transfer Pricing Decisions
Authors: Verhagen H.
Published: December 2023

The author, in this article, explores whether or not the European Commission’s approach to the selectivity criterion in its recent State aid decisions in the area of transfer pricing is in line with ECJ case law.
The Principal Purpose Test under BEPS Action 6: Is the OECD Proposal Compliant with EU Law?
Authors: Koriak O.
Published: December 2023

In this article, the author contributes to the discussion on the BEPS project and its compatibility with EU law, focusing specifically on the PPT rule. The question addressed is whether or not Member States will be able to implement the proposed rule into their tax treaty networks in compliance with EU law. In addition, the PPT formula chosen by the European Commission in the Anti Tax Avoidance Package is analysed.
Memorandum on Tax Treaty Policy 2020: Looking Ahead and Back at Netherlands Policy on Negotiating and Signing Tax Treaties
Authors: Pötgens F.P.G. , Geerse P.I.M.
Published: December 2023

In this article, the authors describe and comment on the government’s Memorandum on Tax Treaty Policy 2020, presented to the Second Chamber of the Netherlands Parliament on 25 June 2020.
Hong Kong Documentation Requirements: Regulations, Exemptions and Supporting Your Transfer Pricing
Authors: Tse A. , Dmello M.
Published: December 2023

This article summarizes the information to be documented in the Master File and Local File, the guidance by the Commissioner of the IRD, the exemption criteria from the need to prepare Master File/Local File documentation, and the implications for exempt taxpayers.
The End of the “Luxembourg Effect”: An Analysis of the Protection of Fundamental Freedoms Regarding Exit Taxes and Implementation of Anti-BEPS Measures by the European Union
Authors: Koury P.A. Cavalcante
Published: December 2023

This article suggests that the ATAD exit tax provisions represent a change in perspective of the European Union from one of promoting integration of the internal market to the greatest extent possible to fighting tax avoidance even in conflict with the internal market. Furthermore, considering that the European Union has broad alternative means available to achieve harmonization, the article concludes that such provisions are clearly disproportionate and should be rejected by the ECJ.
Article 16 of the OECD Model: A Plea To Extend the Scope of the Ratione Personae
Authors: Cools A.
Published: December 2023

In this article, the author presents arguments to extend the scope of the ratione personae of article 16 of the OECD Model beyond that of non-executive directors to include other directors.
The Interpretation of Tax Treaties: Myth and Reality
Authors: Arnold B.J.
Published: December 2023

The Klaus Vogel Lecture has been continued by the Institute for Austrian and International Tax Law (WU) in Vienna. The 2009 lecture was given by Brian Arnold, Professor of Tax Law Emeritus, Tax Consultant, on myth and reality in treaty interpretation. Prof. Dr Mössner, Professor, University of Osnabrück, counsel to PricewaterhouseCoopers, comments on the lecture.
DAC6 Implementation in Italy in Practice: A Further Complication of an Already Burdensome Regime?
Authors: Piran G. , Sartori F.
Published: December 2023

In this article, the authors analyse some specific aspects of Italy’s implementation of DAC6 based on guidance issued by the tax authorities that, in some instances, further complicate an already burdensome regime for taxpayers and intermediaries both in terms of the preliminary analysis that needs to be conducted and subsequent reporting. After commenting on the overall structure of the legislation, the article reflects on the interplay between the Italian regime and DAC6 in the context of specific and frequent routine business scenarios.
Substance over Form under Tax Treaties
Authors: Kosters L.F.
Published: December 2023

The author addresses the application of the substance over form
principle in international taxation, taking into consideration the positions of
the OECD, UN and case law in selected jurisdictions.
A Cross-Country
Perspective on Beneficial Ownership – Part 2
Authors: Verdoner L. , Offermanns R. , Huibregtse S.B.
Published: December 2023

In this two-part article, the authors examine the
beneficial ownership concept through a review of the case law of various
countries. In Part
1, the history of the concept was outlined, as well as the domestic
treatment in Canada, France, Germany, and the Netherlands. Part 2 sets out the
domestic treatment in Switzerland and the United Kingdom and discusses various
economic considerations with regard to the concept.
BEPS Impact on EU Law: Hybrid Payments and Abusive Tax Behaviour
Authors: Kokolia E. , Chatziioakeimidou E.
Published: December 2023

The authors, in this article, analyse the OECD’s deliverables from 16 September 2014 on Action 2, “Neutralising the effects of Hybrid Mismatch Arrangements” and Action 6 on “Preventing the Granting of Treaty Benefits in Inappropriate Circumstances”, as well as recently adopted relevant EU legislation. The authors consider whether targeted measures are necessary at the EU level to incorporate solutions proposed at the OECD level in order to tackle aggressive tax planning and corporate tax avoidance.
Personal Data Protection Rights within the Framework of International Automatic Exchange of Financial Account Information
Authors: Krähenbühl B.
Published: December 2023

The introduction of international automatic exchange of financial account information (AEOI) represents a significant leap forward in combatting tax fraud and avoidance. Meanwhile, data protection legislation is developing rapidly to take into account the latest progress in information technology and more rights are being granted to data subjects. The aim of this article is to determine the extent to which data protection provisions may impact the AEOI and identify a minimum common standard of taxpayer rights from a data protection perspective.
Agency Permanent Establishments and the Zimmer
case
Authors: Wittendorff J.
Published: December 2023

Part of the Comparative Survey. The French Supreme Administrative
Court recently decided in the
Zimmer
case that
a French subsidiary of a foreign parent company, which operated in France under
French law as a commissionaire, did not constitute a taxable French permanent
establishment in France of the foreign company. The case has been explained in
"
Zimmer
Case: The Issue of the
Deemed Existence of a Permanent Establishment Based on Status as a
Commissionaire" by Mr Pierre-Jean Douvier and Ms Xenia Lordkipanidze
(17 International Transfer Pricing Journal 4, 2010).
Country report about this issue on Denmark.
The Russian Permanent Establishment: A Trap for Foreign Distributors?
Authors: Mortier F.
Published: December 2023

The author discusses the Oriflame decision, which held that both a tax deduction for licence fees and input VAT should be denied, as Oriflame OOO was the PE of its Luxembourg grandparent company. The case is discussed from an international perspective considering, inter alia, OECD Action Point 7 on preventing the artificial avoidance of PE status.
AXA Case: The VAT Treatment of “Debt Collection”
Authors: Zutt J. , Rey L. van
Published: December 2023

The European Court of Justice has held in the AXA
case that the payment handling services provided by Denplan do not
benefit from the VAT exemption laid down in Art. 135(1)(d) of the VAT
Directive. In this article, the authors analyse the Court’s decision in the
AXA case and conclude that this decision leaves taxpayers
with uncertainty rather than with clear answers as to how to treat their
services for VAT purposes.
Court Rulings on Dividend Stripping and Denial of Swiss Tax Treaty Benefits
Authors: Reinarz P. , Carelli F.
Published: December 2023

Two recent judgments by the Swiss Federal Supreme Court concerned Danish resident banks that were denied refunds of Swiss withholding taxes on dividends derived from Swiss publicly traded shares on grounds of lacking beneficial ownership, even though the applicable former Denmark-Switzerland Income and Capital Tax Treaty (1973)
SR 0-672.931.41.
did not explicitly mention such a requirement. The Supreme Court overruled the decisions of a lower court granting treaty benefits to the banks.
In Defence of General Anti-Avoidance Rules
Authors: Zimmer F.
Published: December 2023

This article, which is based on the Bertil Wiman lecture given in Zurich on 9 June 2018, aims to undertake a critical assessment of the use of general anti-avoidance rules (GAARs) in taxation and concludes that GAARs should be considered an inherent and necessary part of (income) tax rules.
Belgian Tax Procedures Reformed with Focus on International Tax Matters
Authors: Wouters P-J.
Published: December 2023

As part of the Belgian government’s plan to fight tax and social fraud, legislation was approved to provide the Belgian tax authorities with a much broader toolset for investigating taxpayers. The main pillar of this legislation is the extension of the standard tax assessment, investigation and retention periods. The extended statute of limitations – which applies to both income taxes and VAT – seems to focus on cross-border transactions in particular.
VAT and Education: Lessons from A & G Fahrschul-Akademie
Authors: Vasques S.
Published: December 2023

In this article, the author focuses on the exemption for education provided in article 132 of the VAT Directive. He examines the most recent European case law and attempts a critical assessment of how the Court of Justice of the European Union construes the concept of school and university education.
Blockchain, Initial Coin Offerings and Other Developments in the Virtual Currency Market
Authors: Bal A.
Published: December 2023

In this article, the author discusses several developments in the virtual currency sector (Ethereum, smart contracts, initial coin offerings), investigates potential applications of blockchain technology and summarizes some of the recently issued opinions of tax and regulatory bodies on virtual currency.
2014 Corporate Tax Changes
Authors: Kronbergs Z.G.
Published: December 2023

This note addresses corporate tax law changes introduced effective 1
January 2014, including, the abolition of group loss relief, the notional
interest deduction and withholding tax on interest and royalties; the
introduction of a 30% tax on “extraordinary” dividends, a minimum tax and a
super deduction for R&D; an increase in the tax rate for micro-enterprises;
a new definition of excessive interest; and tax changes regarding the disposal
of Latvian immovable property.
Saudi Arabia Issues Taxpayers Guidance Concerning Mutual Agreement Procedure under Tax Treaties
Authors: Hassan B.
Published: December 2023

On 16 June 2020, Saudi Arabia issued taxpayers guidance for a mutual agreement procedure (MAP) to be used for the resolution of disputes under bilateral tax treaties. Based on the guidance, this article describes the MAP, the conditions and procedure, the process and deadlines for its completion and the implementation of the MAP outcome.
The Henry Review’s Tax on Financial Services: An Alternative Approach
for Australia
Authors: Walpole M.
Published: December 2023

In 2008, the Australian government commissioned a review panel chaired
by Ken Henry to review the current tax system. The report drawn up by that
panel, informally known as the “Henry Tax Review”, is intended to guide tax
system reforms over the next ten to twenty years. In this article, the author
discusses the remarkable findings of the panel as regards GST in general and
taxation of financial services in particular.
Overview of General Turnover Taxes and Tax Rates
Authors: Annacondia F. , Corput W. van der
Published: December 2023

Almost all countries levy a general turnover tax, i.e. a tax on
essentially all goods and services supplied by manufacturers, traders and
service providers. Those turnover taxes are mostly levied under a VAT type of
tax system and, in a decreasing number of cases, as a multi or single-stage
(retail) sales taxes. This annex presents an overview of those general turnover
taxes and the tax rates applicable on 1 January 2014.
The Elusiveness of Neutrality – Why Is It So Difficult To Apply VAT to Financial Services?
Authors: Kerrigan A.
Published: December 2023

Under the VAT system of the European Union, domestic supplies of financial services are exempt. That exemption has significant drawbacks, not least of which is that it compromises the neutrality of the tax. In this article, the author indicates how, depending on government policy views, margin-based financial services could be taxed. He also indicates how financial institutions could give new impetus to the discussion on the VAT treatment of the services in that sector.
The OECD Secretariat Proposal for a “Unified Approach” under Pillar One: Strengths and Weaknesses of the New and Revised Nexus and Profit Allocation Rules
Authors: Samari A.
Published: December 2023

The OECD’s efforts towards addressing the tax challenges arising from digitalization recently reached a new significant phase of work. Indeed, the three-tier profit allocation mechanism embedded in the Secretariat Proposal for a “Unified Approach” under Pillar One (published in October 2019) represents a remarkable and potentially disruptive step forward in the discussion surrounding the taxation of the digital economy. The aim of this article is to contribute to such discussion by analysing the three-tier profit allocation mechanism, evaluating its potential impacts and highlighting its strengths and weaknesses.
Opinion Statement ECJ-TF 1/2021 on the ECJ Decision of 20 January 2021 in Lexel AB (Case C-484/19) Concerning the Application of the Swedish Interest Deductibility Rules
Authors: Confédération Fiscale Européenne ECJ Task Force
Published: December 2023

This CFE Opinion Statement, submitted to the EU Institutions on 9 April 2021, addresses the decision of the Court of Justice of the European Union (First Chamber) (ECJ) of 20 January 2021 in Lexel AB (Case C-484/19).
 SE: ECJ, 20 Jan. 2021, Case C-484/19, Lexel AB v. Skatteverket, Case Law IBFD. The ECJ gave its decision without an Opinion of an Advocate General. The case concerned the application of the Swedish interest deductibility rules.
New Digital Business Tax on Online Advertising in Austria
Authors: Mayr G.
Published: December 2023

In this note, the author describes a new legislative package at the ministerial draft stage, which provides for a revenue-based digital business tax of 5% on online advertising.
EU VAT and the Conundrum of Financial Investments
Authors: Wersand F. , Cazes S.
Published: December 2023

In this article, the authors discuss and compare the VAT aspects of
investments by means of discretionary asset management services, direct
investments in investment funds and investments in life insurance, following
the judgment of the Court of Justice of the European Union in Deutsche Bank.
SGI Case: The Impact of the Decision of the European Court of Justice from a European Perspective
Authors: Boone P. , Casley A.J. , Van de Gucht J. , Chatar M.
Published: December 2023

In the latest of a short, but drawn-out series of cases, the European Court of Justice has delivered a judgment in SGI v. The Belgian State that clarifies the position of transfer pricing rules within the European context. This decision confirms that applying the arm's length principle (or something akin to it) brings within the framework of European law legislation that might otherwise be a breach thereof, provided that certain important conditions are met.
Wayfair: The United States Steps toward Virtual Nexus
Authors: Carman P.
Published: December 2023

This article discusses the US Wayfair decision which case focuses on a state’s ability to force an out-of-state seller to collect and remit sales tax and analyses its impact on non-US taxpayer transacting business with the United States.
Current Challenges for EU Controlled Foreign Company Rules
Authors: Van Hulle G.
Published: December 2023

This article focuses on the challenges presented by the controlled foreign company rules in articles 7 and 8 of the EU Anti-Tax Avoidance Directive, not purely from a technical standpoint, but also from the perspective of tax policy.
Change in Status of an Entity in Accordance with Foreign Law Does Not Impact the Availing of Benefits under the Indian Income Tax Act, 1961
Authors: Kumar Jhabakh P. Raj , Goutham R.
Published: December 2023

The present article is of importance to international readers as it provides an analysis of a recent ruling of the Bombay High Court (the High Court), which held that the reorganization of an entity into another entity in accordance with foreign law’s would not impact the benefits that can be availed under the Indian Tax Laws. This case, Aberdeen Asia Pacific, deals with this in the context of the set-off and carry-forward of losses by “series” or funds following the change in structure of an entity from a trust to a limited liability company (LLC). The High Court has permitted the assessee to carry forward losses, despite the change in structure of the assessee, i.e. conversion of the trust to an LLC, and subsequently has annulled the assessment orders passed by the Deputy Commissioner of Income Tax disallowing the carry-forward of the losses.
The Evolution of the
Term “Beneficial Ownership” in Relation to International Taxation over the Past
45 Years
Authors: du Toit C.
Published: December 2023

This article reviews the evolution of the term “beneficial ownership”
in tax treaties since its first inception 45 years ago, with special focus on
whether or not the meaning has evolved away from that in the domestic law of
the common law states and the implications of the recent decisions in
Indofood and Prévost.
Zimmer Case: The Issue of the Deemed Existence of a Permanent Establishment Based on Status as a Commissionaire
Authors: Douvier P.-J. , Lordkipanidze X.
Published: December 2023

In a recent decision, the Council of State held that a commissionaire
acting in the ordinary course of its business does not trigger the existence of
a permanent establishment in France. This decision has been welcomed as
restoring legal certainty for those doing business in France.
Action 6: Are the Anti-Abuse Rules EU Compatible?
Authors: Nørgård Pedersen K. , Schultz S. (Sandra)
Published: December 2023

This article discusses the EU compatibility of the proposed anti-abuse rules in the Final Report on Action 6 of the OECD’s BEPS Project, which are also included in the Multilateral Instrument. Based on the ECJ’s approach to determining the compatibility of a national measure with the fundamental freedoms, the authors’ legal analysis indicates that the provisions are contrary to the freedom of establishment and the free movement of capital.
Cross-Border Charitable Giving and Its Tax Limitations
Authors: Heidenbauer S. , Hemels S. , Muehlmann B.W. , Stewart M. , Thömmes O. , Tukić T.
Published: December 2023

In this article, the authors examine the tax treatment of cross-border charitable contributions in selected countries, under EU law and in tax treaties.
IP Boxes in Light of the BEPS Project and EU Law – Part II
Authors: Shi C.
Published: December 2023

The author, in this article, introduces IP box regimes. Part I, published in European Taxation 8 (2016), focused on the history of such regimes and their scrutiny by the OECD and EU institutions in an attempt to combat harmful taxation. Part II assesses the potential incompatibilities of the nexus approach with EU State aid rules and the fundamental freedoms and provides suggestions of next moves from the perspective of EU Member States and MNEs.
The Pursuit of Harmonization Regarding Taxes on Death and the International Implications
Authors: Maisto G.
Published: December 2023

The discussion on Subject 2 of the 64th IFA Congress regarding the tax issues arising on the death of an individual and the international implications revealed that the topic is more far reaching than expected. In this article, the author explores various issues that were not covered at the Congress.
A Comparison of Selected Features of Real Estate Investment Trust Regimes in the United States, the United Kingdom and Germany
Authors: Fritsch N. , Prebble J. , Prebble R.
Published: December 2023

This is the last in a series of four articles, in which the authors compare specific aspects of the real estate investment trust (REIT) regimes in the United States, the United Kingdom and Germany. Previous articles dealt separately with the REIT regimes in each of these countries.
Fiscal Competitiveness versus Harmful Tax Competition in the European Union
Authors: Lampreave P
Published: December 2023

This article analyses the evolution of direct taxation harmonization and harmful tax competition, the latter being a consequence of a lack of harmonization, in the European Union. In this context, it refers to the concept of harmful versus fair tax competition and measures that could be adopted to counter the former.
The Social Contribution on Net Profits and the Substantive Scope of Brazilian Tax Treaties – Treaty Override or Legislative Interpretation?
Authors: Bianco J.F. , Tomazela Santos R.
Published: December 2023

This article considers aspects of the social contribution on net profits (contribuição social sobre o lucro liquido, CSLL) in relation to the substantive scope of tax treaties concluded by Brazil and, inter alia, whether the enactment of a domestic law dealing with the application of the CSLL involves a treaty override or simply a legislative interpretation.
VAT and Group Companies
Authors: Parolini A. , Bechara C. , Hilten M.E. van , Kruger D. , Millar R. , Sinfield G.
Published: December 2023

This article summarizes the contents of Seminar D of the 64th Congress of the International Fiscal Association Congress held in Rome on 31 August 2010, which considered issues relating to VAT and GST with regard to group companies.
The Politics of BEPS – Apple’s International Tax Structure and the US Attitude towards BEPS
Authors: Ting A.
Published: December 2023

This article aims to highlight the US attitude towards BEPS (as revealed by the hearings regarding the international tax structures of Apple and Caterpillar) and suggests that the attitude does not seem to have changed in the BEPS Project so far.
The Mechanisms for Defeating Tax Avoidance and Acts of Non-Compliance: The Obligation of the State and the International Community to Legitimate Reasonable Taxpayer Choices
Authors: Jackson G. , Brown H. (Harriet)
Published: December 2023

In this article, the authors comment on the tax contract between the state and taxpayers, i.e. the idea that citizens comply with tax law as part of a “bargain” between the state and the populace. The authors outline the conditions that can lead to a high compliance environment. They highlight the OECD approach that all states should be included in international exchange and how this may interfere with the operation of the tax contract mechanism.
Current Developments in the Corporate Taxation of Free-Float Shares – Can Participation Exemption Shopping Offer a Way Out?
Authors: Broemel K.
Published: December 2023

In this article, the author introduces the concept of participation exemption shopping and analyses its potential advantages and disadvantages from a German and international tax perspective.
International Fiscal Imperialism and the “Principle” of the Permanent Establishment
Authors: Rocha S.A.
Published: December 2023

In this article, the author explains that certain international tax concepts should not be accepted as “principles” but critically analysed before they are transposed into domestic legislation.
VAT Grouping in Italy and the Skandia Judgment
Authors: Lanza M. , Zanetti M.
Published: December 2023

From 1 January 2019, taxable persons established in Italy can be part of an Italian VAT group. In this article, the authors analyse how the ECJ decision in the Skandia case and the Guidelines of the VAT Committee published by the European Commission in relation to that decision have had an impact on the Italian VAT legislation. The authors also discuss possible scenarios in which Italian branches or main establishments can be involved in the future and to which the Skandia case and the Guidelines will be applicable.
The Bulgarian Proposal for the Introduction of Mandatory Transfer Pricing Documentation
Authors: Krastanov S.
Published: December 2023

On 5 November 2018, the Bulgarian Ministry of Finance published for the first time a proposal for introducing mandatory transfer pricing documentation requirements in the country. This article provides a detailed overview of the proposed new rules and more specifically in which cases the taxpayers will be obliged to prepare transfer pricing documentation, the information that should be included, the deadlines for preparation and updates as well as the sanctions for non-compliance with the requirements. The information in the article is valid as at 5 February 2019. It should be taken into account that the initial proposal could be changed during the legislative process before the final texts are published.
A New Defence for Victims of EU Missing-Trader Fraud?
Authors: Amand C. , Boucquez K.
Published: December 2023

The downside of the system of fractionated remittance of VAT is that it makes the VAT system vulnerable to missing-trader fraud. Despite all anti-fraud measures that have already been taken in the European Union, the phenomenon of missing traders seems not to be under control. However, the accumulated anti-fraud measures and practices of the tax authorities have resulted in unacceptably high compliance burdens and uncertainty for the business community. In this article, the authors explain that newly available legal and technological means could make the burdens of the VAT system on EU businesses proportionate again. If Member States would make full use of its potential, Eurofisc could play a crucial role in the process of restoring the proportionality of the EU VAT system. If necessary, the ECJ could push Member States into the right direction.
Concentrix Service Netherlands S.V.: Most Favoured Nation Clause in India’s Double Taxation Avoidance Agreements
Authors: Verma D.
Published: December 2023

In this article, the author reviews the legal provisions and relevant court decisions relating to the most favoured nation clause in India’s double taxation avoidance agreements (DTAAs). He traces the origin and evolution of this clause in India’s DTAAs and discusses an important dispute that arose in the application of this clause and the position of the courts on the issue. He concludes that even though some courts have decided the issue relating to invocation of MFN clause in favour of the residents of other contracting states, the position is far from settled.
Reform of the Control Concept under the German CFC Rules – Problem Areas and Open Questions
Authors: Moser T. , Hentschel S.
Published: December 2023

In this article, the authors provide an overview of amendments made to the German controlled foreign company (CFC) regulations by the ATAD Implementation Act. In particular, the article focuses on the new definition of “controlling interest” and certain key problem areas and questions that remain unanswered despite the reform.
Proposal for Implementing the EU One-Stop-Shop Scheme from 2015
Authors: Lamensch M.
Published: December 2023

From 1 January 2015, service providers supplying telecommunications, radio and television broadcasting, and electronic services to non-taxable persons resident in the European Union must account for VAT in the Member States where their customers are resident. In order to avoid registration in numerous Member States, those service providers can account for VAT in a single Member State, under the “one-stop-shop scheme”. A very limited version of this scheme already applies. In order to tie up the final loose ends of the extended arrangement, the European Commission has proposed several amendments to the VAT Implementing Regulation. In this article, the author gives an overview of the situation and of the Commission’s proposals.
The Dutch Supreme Court Rules that Management of Individual Assets via Investment Profiles Is VAT Exempt
Authors: Zutt J.
Published: December 2023

This article discusses decisions of the Dutch Supreme Court published on 4 December 2020
NL: Supreme Court, 4 Dec. 2020, ECLI:NL:HR:2020:1914 and ECLI:NL:HR:2020:1921.
on the application of the VAT exemption for management of individual assets that are pooled in profiles. These decisions can be considered groundbreaking and open a host of opportunities for VAT exemption after years of narrowing it down.
The Freedom of Establishment and Recapture of PE Losses under the Merger Directive
Authors: Toom M. den , Broek H. van den
Published: December 2023

Recent ECJ case law addresses situations in which PE losses are recaptured at the head office level following a cross-border reorganization pursuant to which a PE is wound up or transferred to a different company. This article examines whether the recapture rule, under article 10(1) of the Merger Directive (2009/133), restricts the freedom of establishment and, if so, whether a justification applies. Does a recapture go beyond what is necessary to attain the objectives pursued?
Opinion Statement FC 1/2019: CFE Response to the OECD Consultation Document: Addressing the Tax Challenges of the Digitalisation of the Economy
Authors: CFE Fiscal Committee
Published: December 2023

In this Opinion Statement, submitted on 5 March 2019, the CFE discusses the OECD Consultation Document: Addressing the Tax Challenges of the Digitalisation of the Economy.
Impact of the TFEU Fundamental Freedoms on Disregarding Non-Arm’s Length Business Transactions
Authors: Helminen M.
Published: December 2023

In this article, the author analyses the impact of the TFEU fundamental freedoms on the possibility to disregard business transactions for transfer pricing purposes based on the arm’s length principle of the OECD Transfer Pricing Guidelines. The author analyses when it is EU law compliant to disregard transactions and when there may be a conflict with the fundamental freedoms. The author argues that the fundamental freedoms may limit the scope for disregarding transactions in accordance with the OECD arm’s length principle.
Targeted Integrity Rule and Its Application
Authors: Joseph A.
Published: December 2023

Although Australia introduced the targeted integrity rule to forestall multinationals circumventing the hybrid mismatch rules introduced in 2018, the law including the rule has several areas of interpretation that are new and therefore may result in confusion and conflict.
Documentation Requirements for an Exemption for Trusts from the Special Tax on Real Property
Authors: Perrou K.
Published: December 2023

In this note, the author discusses the Special Tax on Real Property, which is assessed annually on legal persons and legal entities holding immovable property (or rights in immovable property) located in Greece. In particular, the author examines the long list of exceptions to the tax and the documentation requirements for claiming an exemption, which were recently clarified in Decision A. 1089/2023 of the Governor of the Independent Authority for Public Revenue.
The Taxation of Compensation for Remote Work Expenses in Portugal: Unnecessary Complexity Relative to Other EU Member States
Authors: Martins A. (António) , Taborda D.
Published: December 2023

During the COVID-19 pandemic, remote workers had to bear the additional cost of new inputs needed to fulfil their professional tasks. In many EU Member States, compensation for these additional costs was dealt with by way of simple solutions in the law and by tax authorities. Portugal was no exception. Thus, rules had to be adopted to deal with remote worker compensation. A high degree of complexity, however, can be found in the Portuguese tax authorities’ interpretation of the new rules. Not all Portuguese employers and employees grasped the new rules in 2022, and it is expected that, from May 2023, a simpler regime will correct the pitfalls highlighted in this note.
Corporate Mobility: IP Company Entering Belgium
Authors: Wouters P-J.
Published: December 2023

The interplay between cross-border migration and the application of national IP box regimes certainly triggers practical questions. Can a stepped-up entry value for intellectual property (IP) be accepted in the Destination State if the corresponding exit tax in the Departure State was (partially) exempt from corporate income taxes applying a national IP box regime? And does tax amortization on the stepped-up value negatively impact the application of the IP box regime in the Destination State?
The ECJ X Case (Football Club Feyenoord)
Authors: Molenaar D. , Grams H.
Published: December 2023

Withholding taxes on fees paid to non-resident sportsmen and artistes have long represented an obstacle to the cross-border provision of services within the European Union, as well as in the international context. Art. 17 of tax treaties based on the OECD Model is outdated and results in a significant administrative burden for taxpayers. The authors, in this article, examine the X case (Football Club Feyenoord), which highlights these issues, as well as their wider implications.
The Future of the Permanent Establishment Concept
Authors: Dhuldhoya V.
Published: December 2023

In this article, the author evaluates whether the amendments proposed by the OECD/G20 BEPS Initiative effect the permanent establishment threshold to become economic in nature rather than one based on physical presence. In doing so, the author considers the future of the permanent establishment concept.
Output Legitimacy Deficits and the Inclusive Framework of the OECD/G20 Base Erosion and Profit Shifting Initiative
Authors: Mosquera Valderrama I.J.
Published: December 2023

In this article, the author considers output legitimacy deficits in the context of the Inclusive Framework of the OECD/G20 Base Erosion and Profit Shifting Initiative, with special emphasis on the issues and problems that this raises for developing countries.
Implementation of the EU Anti-Tax Avoidance Directive Regarding Hybrid Mismatches in Romania
Authors: Radocea I.
Published: December 2023

This article provides an overview of the main provisions of the EU Anti-Tax Avoidance Directive (2017/952) (ATAD 2) as transposed into Romanian tax law. It highlights key areas of attention and the potential impact of such transposition on existing structures.
Supplies under Continuing Leases: The Impact of the MBI Properties Decision
Authors: Joseph A.
Published: December 2023

The significant outcome of the Australian High Court decision in the MBI Properties case was that a supply can arise even when a taxpayer passively remains bound by the actions of another, such as agreeing to be bound by the terms of an existing property lease. After this decision, the mere passive holding of property can result in GST liability. In this article, the author reviews the arguments put forward by the parties in this case, along with the decision of the Court and the subsequent Decision Impact Statement issued by the Australian Tax Office related to the case.
Permanent Establishment versus Fixed Establishment: The Same or Different?
Authors: Spies K.
Published: December 2023

In this article, the author systematically compares the concepts of “permanent establishment” with regard to direct taxation and “fixed establishment” in respect of EU VAT, and establishes similarities and differences between the two. Although both concepts serve comparable functions (namely the allocation of taxing rights between states), their definitions differ in detail, which may lead to practical difficulties.
Transfer Pricing Insurance: An Effective Risk Management Strategy
Authors: Lange M.A. de
Published: December 2023

Over the past decade, transfer pricing has become a key risk for MNEs and there are no signs that this will change anytime soon. In response, MNEs are seeking innovative strategies to manage transfer pricing risks and tax insurance is gaining momentum as a viable alternative to traditional strategies. In this article, the author discusses the basics of tax insurance and, using examples, how it helps to eliminate transfer pricing risks.
Avoiding Double Taxation: Credit versus Exemption - The Origins
Authors: Avery Jones J.F.
Published: December 2023

The Klaus Vogel Lecture has been continued by the Institute for Austrian and International Tax Law (WU) in Vienna. The 2011 lecture was given by Professor John Avery Jones on the origins of credit versus exemption regarding double taxation. Professor Georg Kofler provided further comments on this topic.
Corporate Tax Treatment of Interest: EU State Aid and the EU Code of Conduct as a Means of Combating Harmful Tax Competition
Authors: Kalloe V.
Published: December 2023

The author, in this article, addresses the corporate tax treatment of interest in light of EU measures to tackle harmful tax competition, including the Code of Conduct and State aid provisions.
China’s VAT Reform: Experiences and Lessons Learned
Authors: Shen S. , Krever R.
Published: December 2023

While China’s VAT was formally enacted in 1994, there have been a number of steps in the country’s adoption of a true VAT, with the goal finally being achieved in 2016 when supplies of services were shifted from a separate turnover tax into the VAT system. In this article, the authors explain the main aspects of the VAT reform and compare them with a model VAT.
The Great Fiscal Wall of China: Tax Treaties and Their Role in Defining and Defending China’s Tax Base
Authors: Li J. (Jinyan)
Published: December 2023

By taking the Great Wall of China as an analogy for China’s treaty policy, the author considers key aspects of China’s treaty network and its implications, and whether or not this constitutes a “Great Fiscal Wall of China”.
Coordination Rules as a Weapon in the War against Cross-Border Tax
Arbitrage – The Case of Hybrid Entities and Hybrid Financial
Instruments
Authors: Bundgaard J.
Published: December 2023

In this article, the author describes the Danish experiences in
countering cross-border tax arbitrage by considering existing anti-arbitrage
provisions, based on the fact that Denmark, like other countries, has, to a
great extent, made use of “coordination rules”.
Common Consolidated Corporate Tax Base
Authors: Wittendorff J.
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 Denmark.
Comparison of Proposals to Adjust the Permanent Establishment Concept to the Digital Economy
Authors: Ponomareva K.
Published: December 2023

The aim of the article is to analyse the various proposals that have been made by various bodies (including the OECD and the European Union) and countries regarding the alternative formulations of the permanent establishment concept to establish how these formulations align or differ from each other.
Aplikasi Iuran Warga Berbasis Android di Perumahan ABC untuk Meningkatkan Efisiensi Pengelolaan Keuangan
Authors: Fathur Rizal  , Zainal Arifin  , Moh. Shidqiy Hidayat  , Budiman Jaya  , Moh. Syaiful Munir Habibi
Published: December 2023

Perumahan ABC menghadapi tantangan dalam pengumpulan iuran warga dan manajemen keuangan yang kurang efisien. Pengelolaan manual dan kurangnya transparansi informasi keuangan sering menyebabkan masalah dalam pembiayaan dan pelaksanaan kegiatan pengembangan dan perawatan lingkungan perumahan. Penelitian ini bertujuan untuk menganalisis, merancang, dan mengimplementasikan aplikasi iuran warga berbasis Android di Perumahan ABC untuk meningkatkan efisiensi pengelolaan keuangan dan keterlibatan warga. Dengan adopsi teknologi aplikasi, diharapkan proses pengumpulan iuran menjadi lebih efisien, transparan, dan mudah diakses oleh warga. Selain itu, aplikasi ini diharapkan mendorong partisipasi aktif warga dalam pengambilan keputusan terkait perumahan. Metode pengembangan sistem yang digunakan menggunakan model waterfall. Penelitian ini dapat memberikan solusi dalam meningkatkan efisiensi pengelolaan keuangan perumahan ABC melalui aplikasi iuran berbasis Android. Dengan adopsi teknologi informasi, proses pengumpulan iuran menjadi lebih efisien, akurat, dan transparan, sehingga mengurangi keterlambatan pembayaran dan masalah keuangan lainnya. Hasil penelitian ini dapat memberikan kontribusi positif dalam mengimplementasikan teknologi dalam pengelolaan perumahan yang dapat diadopsi oleh perumahan lain dengan situasi serupa.
1920 թ. թուրք-հայկական պատերազմի սկզբնավորման հարցի անդրադարձը խորհրդահայ պատմագիտության մեջ
Authors: Մովսեսյան Նարինե Մ.
Published: December 2023

В армянской историографии по разным причинам имеются разногласия в вопросах подготовки, начала турецко-армянской войны 1920 г. В статье анализируются позиция советской армянской историографии относительно военно-политической обстановки в Закавказье летом 1920 г. Раскрывается отношение историков и партийно-политических деятелей к основным причинам начала турецко-армянской войны. Что касается периода начала войны, то причина появившегося в советско-армянской историографии плюрализма объясняется, прежде всего, ограниченностью возможностей использования архивного материала и требованиями коммунистической идеологии. Большинство историков считают датой начала войны 23 сентября 1920 г.
For various reasons, there is still a disagreement in the Soviet Armenian historiography concerning the exact date of the beginning of the Turkish-Armenian war in 1920. This article gives an analysis of the estimations, regarding the military-political developments in Transcaucasia during the summer of 1920, by the Soviet Armenian historiography. The author examines the general attitude of historians and party leaders towards the main reasons for the outbreak of the Turkish-Armenian war. As for the period of the beginning of the war, the reason for the pluralism that appeared in the Soviet-Armenian historiography is explained, first of all, by the limited possibilities of using archival material and the requirements of communist ideology. Most historians consider the date of the war to be September 23, 1920.