bluuebunny/crossref_metadata_2025 huggingface dataset:
Commission
Authors: Xygka A.
Published: December 2023

This overview highlights the Commission’s (i) report in connection with the preliminary impact of the US Inflation Reduction Act; (ii) referral of Belgium to the ECJ for incorrect transposition of CFC provisions of ATAD; (iii) withdrawal of the ECJ case against Italy regarding the registration duty on the acquisition of Italian immovable property; and (iv) approval of the Italian scheme to support private employees in the context of Russia’s war against Ukraine.
Managing EU VAT Risks for Platform Business Models
Authors: Bal A.M.
Published: December 2023

The popularity of the platform business model is on the rise. Six of the ten most valuable companies in the world derive much of their value from their multisided platforms. This article examines platforms as business models and outlines some of the major indirect tax risks which platform operators are exposed to in the European Union.
The Economic Allocation of Income and the Disregarding of Narrowly Held Entities Following the OECD/G20 Base Erosion and Profit Shifting Project: Coordination of Work on Exchange of Information and Income Allocation Rules
Authors: Hernández González-Barreda P.A.
Published: December 2023

The implications of developments regarding exchange of information rules together with changes to the international taxation regime have been underestimated. The use of economic concepts to exchange information relating to tax treaties could overapply economic and substance approaches in the allocation of income, thereby disregarding legal arrangements and persons.
The Belt and Road Initiative Tax Administration Cooperation Mechanism (BRITACOM): Where Is It Heading?
Authors: Li N.
Published: December 2023

This article describes the policy objective, legal basis, structure and action plan of the Belt and Road Initiative Tax Administration Cooperation Mechanism (BRITACOM) and reviews its performance in 2019 to 2021. The author argues that concluding multilateral conventions should be included on the agenda of the BRITACOM for its development in the future.
Neutrality and Territoriality – Competing or Converging Concepts in EU Tax Law? – Comment
Authors: Kroppen H-K.
Published: December 2023

This contribution comments on the Klaus Vogel Lecture given on 24 October 2014 at the New Campus of the WU Vienna and published in this issue of Bulletin for International Taxation.
Tax Challenges Arising from the Digitalization of the Economy: The Calculation of the Effective Tax Rate – Pillar Two versus Financial Accounting
Authors: Berg T. van den , Kriek M. , Than Y.
Published: December 2023

Under Pillar Two, the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting members have agreed to enact a jurisdictional-level minimum tax system with a minimum effective tax rate of 15%. Multinational enterprises and EU-based large-scale purely domestic groups with (global) consolidated turnover above EUR 750 million will be within the scope of Pillar Two. In this article, the authors discuss the relevant rules for calculating the effective tax rate (ETR) under Pillar Two. Subsequently, the authors will compare these rules with the rules that are applied to calculate the ETR under financial accounting. The main aim of this article is to set out the key differences between the ETR calculation under Pillar Two and financial accounting. For the comparison, the authors take the International Financial Reporting Standards (IFRS) as the applicable accounting standard under financial accounting.
2018 Tax Code
Authors: Zhabbarov A.
Published: December 2023

This note reviews the new Tax Code introduced in Kazakhstan effective 1 January 2018, which includes provisions on online retail trading, subsoil use, taxpayer diligence, introducing amendments to the Tax Code, information exchange, the statute of limitations, deferral of taxes and payment of taxes by way of instalments, forced liquidation of taxpayers, horizontal monitoring, tax audits, income tax, corporate tax, VAT and the taxation of non-residents.
Notional Interest Deduction Regimes in Europe: Through the Prism of ATAD 2 and Domestic Anti-Hybrid Mismatch Rules
Authors: Karaianov K.
Published: December 2023

In this article, the author analyses the interplay between the notional interest deduction mechanism and the anti-hybrid mismatch framework.
Enforcement Policy to Tackle Sales Tax Fraud in Pakistan
Authors: Hassan B.
Published: December 2023

In the November-December 2017 and March-April 2018 issues of the Asia-Pacific Tax Bulletin, the author discussed the search for tax policies to improve taxpayer compliance and to boost investment in Pakistan. In this article, the author continues his commentaries on Pakistan tax issues, now providing an analysis of the Federal tax authorities’ enforcement of Pakistan’s sales tax law. He concludes that the legislation has provided the mechanism to combat sales tax fraud and to recover defrauded tax, and dispels certain arguments advanced by taxable persons to thwart the recovery measures. He also suggests that implementation of the tax authorities’ enforcement policies depends on the integrity and professional capacities of the authorities’ revenue officers.
Is There Evidence of Increasing Harmonization in the Interpretation of Tax Treaties by Courts in Their Reference to Foreign Court Decisions? A Study of South African Case Law
Authors: Carvalho R. , Daniels I. , Dewar M. , Sahabodien W.
Published: December 2023

In this article, the authors consider the use by South African courts of the decisions and reasoning in the case law of other countries with regard to the South African interpretation of tax treaties and other international treaties and conventions seeking evidence of convergence or divergence in interpretations applied.
CIT v. Woodward Governor India P. Ltd. : tax treatment of foreign
exchange losses on revenue and capital account
Authors: Sharma R.
Published: December 2023

In Commissioner of Income Tax (CIT) v. Woodward Governor India P.
Ltd., the Indian Supreme Court ruled on the tax treatment of foreign exchange
losses on both revenue and capital account transactions. This article examines
the legal principles laid down in Woodward in light of the relevant provisions
of the Income Tax Act, 1961, and explains the practical value of the case for
taxpayers.
New Regulations in Indonesia’s Dispute Settlement and Prevention Regime
Authors: Dewantara A.R. , Kurniawan N.
Published: December 2023

To accommodate the organizational changes in the Indonesian Directorate General of Taxes, the need to improve legal certainty and simplify procedures, and to align with the minimum standard of BEPS Action 14, Indonesia enacted new regulations on MAP and APA, namely Minister of Finance Regulation No. 49/PMK.03/2019 and Minister of Finance Regulation No. 22/PMK.03/2020, respectively. The promulgation of both regulations was followed by the issuance of Director General of Taxes Regulation No. 16/PJ/2020 and Director General of Taxes Regulation No. 17/PJ/2020, as the technical guidance for both ministerial regulations. This article sets out the general principles of this guidance, their new features compared to the old guidance, as well as the assessment of their alignment with the BEPS Action 14 minimum standard. It also elaborates on some remaining challenges in Indonesia’s MAP and APA regime after the promulgation of these regulations.
Recent Netherlands and Belgian Court Decisions Further Clarify Treaty Interpretation
Authors: Cools A.
Published: December 2023

This note highlights recent case law in the Netherlands and Belgium on various issues of treaty interpretation, including the legal status of the Commentaries on the OECD Model, in particular Commentaries drafted after a tax treaty is signed (i.e. whether a static or dynamic interpretation should be applied), as well as the extent to which later versions of the OECD Model (and not the Commentaries) influence the interpretation of OECD-patterned tax treaties that predate the amendments.
High Court Ruling in the Adecco Transfer Pricing Matter with Respect to Trademark Licence Agreement
Authors: Bjørnholm N.
Published: December 2023

4 July 2019, the Danish High Court ruled in the Adecco case, in favour of the Danish tax authorities. The dispute concerned the arm’s length nature of trademark royalties paid by Adecco Denmark to the Swiss related IP owner and parent. This article discusses the ruling in more detail and provides some comments on what can be deduced from it.
Use of Secret Comparables Condoned by Norwegian Supreme Court
Authors: Bjerke J.M. , Søgaard S.S.
Published: December 2023

In 2015, the Norwegian Supreme Court, for the first time ever, heard a case involving the use by the tax authorities of so-called secret comparables in transfer pricing. In this article, the authors consider the decision and its potential future impact.
International Tax Policy Changes Arising from New Zealand’s Latest Tax Treaties: New Perceptions of Being a Capital Exporter?
Authors: Smith A.M.C.
Published: December 2023

In this article, the author reviews nine tax treaties recently concluded by New Zealand, explaining the key changes arising from these new tax treaties, and how they represent an important change in New Zealand’s international tax policy and indirectly signal how New Zealand views itself in the international economy.
Oil Company Loses
Transfer Pricing Case
Authors: Wittendorff Jens
Published: December 2023

In the first published decision since the 1998 amendment of Danish
rules governing transfer pricing within a multinational group, the National Tax
Tribunal has settled a case upholding a transfer pricing adjustment for income
year 2001. This decision touches upon several key transfer pricing issues,
including the burden of proof. In the context of this decision, this article
examines two key issues considered by the Tribunal, namely the sale of the oil
and a cost contribution arrangement, and provides an analysis of the potential
impact on taxpayers.
Beneficial Ownership and the Contractual Obligation of an Interposed Company to Pass On Income
Authors: Jain S. , Prebble J.
Published: December 2023

This article argues that an interposed company may be under a contractual obligation to pass on income to a resident of a third state. Such a company would still possess dominion over the income. However, the absence of such an obligation is inconclusive for determining whether an interposed company is a conduit.
The European Court of Justice – Recently Decided and Pending Cases
Authors: Annacondia F.
Published: December 2023

In this overview, the editor provides a list of judgments of the Court of Justice of the European Union (ECJ) and Opinions of the ECJ’s Advocates General delivered in VAT cases in the past 12 months. The overview also contains a list of the remaining cases pending before the ECJ on 31 August 2017, and a list of cases that have been removed from the ECJ’s register in the past year. Summaries of the judgments, Opinions and other pending cases that have not yet been published are presented following the lists.
Influencer Income and Tax Treaties: A Response
Authors: Molenaar D. , Grams H.
Published: December 2023

The authors respond to the article written by Savvas Kostikidis on the taxation of influencers’ income that appeared in the June 2020 issue of the Bulletin for International Taxation. The authors advance their solution to the problem, which would include the abolition of article 17 of the OECD Model.
Transfer Pricing
Documentation and Reporting Requirements
Authors: Bjerke J.M.
Published: December 2023

Norwegian transfer pricing rules imply comprehensive obligations for
Norwegian and foreign entities doing business in Norway. In addition to the
more customary documentation requirements that one will find in many other
jurisdictions, Norway has implemented specific annual reporting obligations
regarding transfer pricing which taxpayers must comply with.
Planning for Border Adjustments: A Practical Analysis
Authors: Hariton D.P.
Published: December 2023

In this article, the author explains why he thinks the border adjustments proposed by the House Republicans' blueprint will be much more complicated to implement than many people realize.
Withdrawal of Court of Appeals Decision in Xilinx
Authors: Wright D. R.
Published: December 2023

On 13 January 2010, the Ninth Circuit of the Court of Appeals withdrew its opinion in Xilinx v. Commissioner, which was previously discussed in this journal.
Commission
Authors: Alvarado M.
Published: December 2023

This overview highlights the Commission’s (i) work programme for 2022, (ii) support for the OECD-led global tax agreement for reforming the international tax framework, (iii) roadmap for tackling withholding tax relief procedures for cross-border investors, (iv) support of the Council’s decision for adopting a public Country-by-Country Reporting Directive, (v) proposal to authorize Estonia to allow a 50% input VAT deduction on purchase or lease of passenger cars, (vi) approval of Italian aid scheme to support affected companies, and (vii) withdrawal of Court action against the United Kingdom for its failure to recover illegal State aid.
Riders on the Storm – Recent Tax Developments in Brazil and their Impact on the Financial Sector
Authors: Seixas V. Pimenta , Pizzignacco R.
Published: December 2023

In 2022, Brazil's economic environment faced significant turmoil, driven by political polarization, controversial policy proposals and the election of Luíz Inácio Lula da Silva as president. These factors led to a series of measures and decisions that affected the Brazilian tax system and the financial services industry. Among the changes were presidential decrees, provisional measures and court rulings that impacted tax deductibility for corporate income tax purposes, transfer pricing rules, withholding income tax rates, social contributions (PIS/COFINS) regulations, and the tax amortization of goodwill. By providing an in-depth examination of these developments, this article will shed light on the potential opportunities and challenges for companies operating in Brazil's financial services industry in the wake of these changes.
Are Bonds Suitable to Determine Arm’s Length Interest Rates of Intercompany Loans and Do Intercompany Loans Have to Be Collateralized? – An Empirical Investigation
Authors: Ebeling F. , Nolden N. , Schneider G.
Published: December 2023

A unique data set of more than 5,000 corporate bond and loan transactions between third parties was used to analyse two issues related to the arm’s length interest rate determination in practice. First the analysis presented in this article shows that the interest rate differences between the bonds and loans are statistically significant, but economically irrelevant. Second, when considering whether intercompany loans have to be collateralized, it can also be shown that unrelated parties too do not always agree on collateral. Moreover, within multinational groups, collateralization of intercompany loans would by no means appear to be compulsory based on economic theory.
Loss of Personal Income Tax Advantages in Cross-Border Situations Infringes EU Fundamental Freedoms
Authors: Renterghem-Vanderkerken C. van
Published: December 2023

In this note, the author outlines and comments on the ECJ’s recent decision in BJ v. État belge (C-241/20), wherein the Court addressed the application of the exemption-with-progression clause in tax treaties in the context of tax advantages for personal and family reasons applicable to taxpayers with cross-border income.
Tax Reforms to the Maquiladora Regime
Authors: Diaz de Leon Galarza J.
Published: December 2023

The author discusses the new rules applicable to maquiladoras pursuant
to the 2014 Income Tax Law, the so-called IMMEX Decree and the 2014
Miscellaneous Tax Resolution.
Taxation under Dodd-Frank – Part 2
Authors: Hammer V. , Bush J. , Kunkel P.
Published: December 2023

One page of the behemoth Dodd-Frank Wall Street Reform and Consumer Protection Act is devoted to tax, but its tax implications range far beyond that page. This two-part article discusses the tax aspects of seven parts of the new law. The first part, which was published in DFI 4, 2011, dealt with bank capital and liquidity, “living wills”, the Volcker Rule, and banks as dealers in derivatives. This second part deals with securitization, derivatives and executive compensation.
Carbon Tax: The Global Perspective
Authors: VanderWolk J.P.
Published: December 2023

This article discusses the current use of carbon taxes around the world, and the possible future of such taxes.
Transfer Pricing Adjustment on Issuance of Shares to Overseas Parents
Leaves Companies Shell-Shocked
Authors: Krishnamurthy V.
Published: December 2023

The author considers the latest transfer pricing controversy to
originate from India, namely the attempt by the tax authorities to tax the
discount on shares issued to a foreign parent company, as well as the
assertions made by taxpayers and the tax authorities to defend their
positions.
Permanent Establishment Risk Exposure of Private Equity Funds and the New Italian Investment Management Exemption: A Quest for Certainty
Authors: Simontacchi S. , Adda M. , Genta G.
Published: December 2023

This article provides a tentative answer to the issue of the interplay between, on the one hand, the private equity funds and the PE concerns and, on the other, the bearing of the new Italian investment management exemption.
Argentina and the OECD after 2023: Can Any of the “Fantastic Four” Achieve a Fantastic Result?
Authors: Misrahi F.
Published: December 2023

In 2022, the OECD advanced the candidacies of six countries that had applied for membership of that exclusive club. Of the six, only Argentina decided not to complete the steps necessary to proceed, deciding to let the opportunity pass. In this Talking Points, Argentine tax attorney Florencia Misrahi lays out the public’s choices for President in the upcoming election, and posits that the successful candidate has a unique opportunity to move the country into the OECD, a superhero-worthy achievement comparable to the exploits of the Fantastic Four.
Deductibility of Credit Losses under Intercompany Guarantees and Cash Pool Arrangements
Authors: Łukosz K. , Slagter S. , Wijnberg E.
Published: December 2023

Recent Supreme Court’s judgments provide a bandwidth for the application of the umbrella credit judgment and shed light on the tax deductibility of credit losses under both cross-guarantees and traditional forms of financial guarantees. The transfer pricing implications for cross-guarantees are far reaching, as every cross-guarantee under arrangements (including cash pooling) that meets the conditions of the umbrella credit judgment, regardless of its specific merits, seems to be taking place in the shareholders sphere.
Activities outside the Scope of VAT and Exempt Activities
Authors: Melz P.
Published: December 2023

Comments to Ad van Doesum and Gert-Jan van Norden, "The Right To Deduct under EU VAT" in International VAT Monitor 5 (2011).
Overview of General Turnover Taxes and Tax Rates
Authors: The Editors
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 take-out section presents an overview of those
general turnover taxes and the tax rates applicable on 1 January
2013.
The Subsidiary as a Permanent Establishment
Authors: Schoueri L.E. , Günther O.-C.
Published: December 2023

In this article, the authors summarize the discussion on the topic of the subsidiary as a permanent establishment, which was considered by Seminar A of the 64th Congress of the International Fiscal Association, held in Rome, Italy on 30 August 2010.
VAT in Italy
Authors: Rizzardi R.
Published: December 2023

In this article, the author reviews recent developments regarding VAT in Italy, with special emphasis on legislative trends, the implementation of VAT Directive 2006/112/EC, as amended by VAT Directives 2008/8/EC and 2008/9/EC, VAT rates and revenue, relevant decisions of the European Court of Justice, and compliance and taxpayers’ obligations.
The Effect of the FATCA Withholding Tax on US Investment Abroad
Authors: Hagelin J.
Published: December 2023

This article is based on a study of the effects of the Foreign Account Tax Compliance Act (FATCA) on US investment abroad. It provides evidence suggesting the possibility of a positive correlation between FATCA participation and US investment abroad due to the withholding tax on payments to foreign financial institutions in non-participating jurisdictions.
The Importance of Principles in an International Tax Setting
Authors: Ruiz Colmenares M.
Published: December 2023

In this article, the author considers the general function that principles perform as source of law, guidance in the design of rules and an interpretation tool in evaluating the consequences and risks of not having an international tax system based on clear principles regarding the allocation of taxing rights.
The ECJ’s Taricco Saga on VAT Fraud: The More There Is of Mine, the Less There Is of Yours?
Authors: Rodríguez-Bereijo M.
Published: December 2023

Behind the term “the Taricco saga” lie two ECJ cases on VAT fraud. In this article, the author analyses these two decisions under the framework of the principles of effectiveness of EU law and primacy and direct effect. The author outlines the important challenge faced by the ECJ because of a possible conflict between the general principles at stake and the impact of ineffective VAT collection on the European Union’s financial interests. These cases also show the disputes that can arise in the area of EU tax law with respect to the adequate level of protection of fundamental rights and principles within the framework of EU multi-level constitutionalism.
Key issues relating to permanent establishments
Authors: Asatsuma A.
Published: December 2023

The author discusses a number of key issues that relate to the permanent establishment concept.
Article 12B of the UN Model (2021): A Simplified Solution for Developing Countries to Tax Income from the Digital Economy?
Authors: Mpoha J.W.
Published: December 2023

The author considers whether article 12B of the UN Model (2021) regarding income from automated digital services is a simplified solution for developing countries to tax income derived from the digital economy. The analysis reveals that the article’s weaknesses outweigh its strengths, and that alternatives should be examined.
Split Opinions about the Split-Payment Mechanism? A Discussion of the Polish Example
Authors: Uchmańska U.
Published: December 2023

In this article, the author discusses the Polish split-payment mechanism (SPM). Although it may have played a significant role in the reduction of the Polish VAT gap, the SPM also has significant downsides for businesses. In view of the experiences with the SPM in other EU Member States, the overall benefit of this mechanism is highly uncertain.
US Supreme Court Rejects Form over Substance in Determining Creditability of Foreign Taxes
Authors: McLure C.E.
Published: December 2023

In this article, the author discusses the US Supreme Court decision in PPL Corp. et al. v. Commissioner of Internal Revenue (2013), where the Court found that the one-off tax levied on 32 public utilities privatized by the United Kingdom between 1984 and 1996 qualified for the foreign tax credit.
Procedural Issues of Human Rights and Taxation: Access to Justice
Authors: Panuthos P.J.
Published: December 2023

The US government as well as public and private organizations, such as law schools and legal services organizations, strive to ensure that the rights of all taxpayers are protected in administrative and judicial proceedings. In this article, the author discusses some of these measures in the context of the IRS appeals process, the Tax Court litigation process, judicial independence and the provision of counsel to self-represented petitioners.
Tax Treaties and Tax Avoidance: Application of Anti-Avoidance
Provisions
Authors: De Broe L. , Goyette N. , Martin P. (Philippe) , Rohatgi R. , van Weeghel S. , West P.
Published: December 2023

This article summarizes the contents of Subject 1 of the 64th Congress
of the International Fiscal Association Congress held in Rome on 30 August
2010, which considered issues relating to tax treaties and the application of
anti-avoidance measures.
Tax
Classification of Foreign Entities in China: The Current State of Play
Authors: Cui W.
Published: December 2023

This article considers recent changes to the classification of foreign
entities under Chinese tax law, the implications for China’s treaty partners in
this regard and the general legal framework within which future changes may
occur.
Intra-Group Funding Mechanisms at Risk: Denial of Interest Deductibility on Leveraged Share Premium Distribution by Application of the Spanish GAAR
Authors: Sánchez-Paz E.
Published: December 2023

This article analyses the binding report issued in July 2022 by the Advisory Committee to the Spanish tax authorities,
Advisory Committee report on the conflict in the application of the norm. Conflict number 9, published in Sept. 2022 (Informe de la Comisión Consultiva sobre conflicto en la aplicación de la norma. Conflicto nº9 publicado en Septiembre de 2022, available at 09CONFLICTO_ PQ_HOLDING.pdf (agenciatributaria.gob.es) (accessed 9 Feb. 2023).
which concluded that a series of restructuring transactions undertaken by a Spanish taxpayer were wholly artificial and, therefore, abusive. The Advisory Committee applies the Spanish General Anti-Abuse Rule to deny the deductibility of interest from an intercompany loan granted to distribute a share premium to the ultimate shareholders, claiming that such premium was artificially generated through unnecessary restructuring transactions. The author explores the different transactions undertaken by the taxpayer, the reasoning behind the alleged existence of abuse and the potential implications for multinational enterprises, providing recommendations for audit-proof structures.
The 2013 Netherlands Act on Deferral of Exit Taxation
Authors: Broek H. van den
Published: December 2023

On 4 December 2012, the Netherlands parliament voted in favour of the
Act on Deferral of Exit Taxation (2013), the aim of which is to bring
Netherlands legislation in line with the ECJ decision in National Grid Indus. In this note, the author explains the new
exit tax provisions and examines the extent to which they are in line with the
freedom of establishment.
Recent Issues Regarding Permanent Establishments in Korea
Authors: Lee K.G.
Published: December 2023

In this article, the author considers recent developments with regard to various issues relating to permanent establishments in Korea, with emphasis on Korean legislation and case law, and the implications of the revised provisions of article 5 of the OECD Model (2017).
Treaty Interpretation and Treaty Override: The Spanish Case Law on
Royalties under the Spain-United States Income Tax Treaty (1990)
Authors: Bernales Soriano R.
Published: December 2023

The author, in this article, summarizes the position of the Spanish
tax authorities and courts on the interpretation of treaty terms under the
pre-1995 version of article 3(2) of the OECD Model, in particular regarding the
taxation of royalties, and discusses the possibility that such an
interpretation constitutes treaty override.
Can Cooperative Compliance Help Developing Countries Address the Challenges of the OECD/G20 Base Erosion and Profit Shifting Initiative?
Authors: Pemberton J.L. , Majdanska A.
Published: December 2023

Developing countries arguably have the most at stake in the efforts to counter base erosion and profit shifting, but face the biggest challenges. In this context, the authors address the question of whether cooperative compliance between tax administrations and taxpayers has a role to play in these efforts.
Corporate Tax Reform (CTR) III
Authors: Suter R.
Published: December 2023

The author examines the basic features of the final bill on CTR III approved by the Swiss parliament on 17 June 2016, which will be subject to a public vote on 12 February 2017. The article further outlines plans of the cantons of Basel-Stadt, Geneva, Zug and Zurich for implementing the reform at the cantonal level. In addition, the tax implications for beneficial owners of corporate structures are shown, including an outlook on what will happen in the event the final bill is not approved.
Foreign Investment Funds: Change in Tax Regime for Dividends and Capital Gains
Authors: Orlandoni O. , Moramarco G.
Published: December 2023

The present article aims to analyse the impact of the 2021 legislative changes concerning the taxation regime for dividends and capital gains applicable to foreign undertakings for collective investment (UCIs) on structures frequently used by private equity funds that involve EU holding companies.
Current State of Transfer Pricing Rules in Central America and Dominican Republic
Authors: Castro S.
Published: December 2023

The author reviews the current landscape of transfer pricing rules in Central America and the Dominican Republic, highlighting the key similarities and differences among the countries. The author also notes some trends observed in recent audits.
The Interpretation of Tax Treaties: Looking to the Future
Authors: Arnold B.J.
Published: December 2023

The thesis of this article is that, for a variety of reasons, national courts often make fundamental mistakes in deciding tax treaty cases. To address this problem, the article suggests a process for tax treaty experts to provide advisory to national courts on tax treaty issues.
The VAT in the Arab Countries of the Gulf Cooperation Council
Authors: Brederode R.F.W. van , Susilo M.
Published: December 2023

The six countries forming the Gulf Cooperation Council (GCC) have decided to introduce VAT from 2018 onwards. This is an enormous challenge for governments, businesses, and advisors as these countries have little experience with taxation in general and with VAT in particular. Each country has to introduce domestic VAT legislation based on the VAT Framework Agreement, which outlines the underlying main principles and rules for the VAT system to be adopted by all six countries. In this article, the authors provide the background and progression of the economic and political integration of the GCC region, explain the rationale for a common VAT system, and provide an overview of the structure and a thorough analysis of the main features of the VAT Framework Agreement.
Transfer Pricing of Accounts Receivables in the Case of an Extended Credit Period: An Indian Perspective
Authors: Agrawal M.
Published: December 2023

In this article, the author considers the transfer pricing aspects of imputation of notional interest on late payments from an Indian viewpoint and the conflicting case law regarding this issue. Finally the author suggests strategies for taxpayers to shield themselves from transfer pricing adjustments in respect of their accounts receivable.
Salary Reimbursement Payments Not Fees for Technical Services
Authors: Dugar A. , Bhandari L.
Published: December 2023

This case note canvasses the order of the Bombay High Court in Director of Income Tax (International Tax) v. Marks & Spencer Reliance India Pvt. Ltd that a payment made by an Indian company to a United Kingdom company as a reimbursement of salaries of employees seconded to the Indian company is not a payment of fees for technical services and, therefore, is not liable to withholding tax in India.
Thoughts on the Forum on Tax Administration, Buenos Aires, January 2012
Authors: Owens J.
Published: December 2023

Shortly after the end of the January 2012 Forum on Tax Administration held in Buenos Aires, Argentina, Jeffrey Owens, Director of the Centre for Tax Policy Administration, OECD, talked to the Bulletin for International Taxation about events at the Forum and related topics.
Korea’s VAT Rules on Cross-Border Digital Services
Authors: Lee M.J.
Published: December 2023

This article examines the VAT rules regarding the consumption of cross-border digital services in Korea with an analysis of its application of the concept of tax neutrality, efficiency and practicality, together with other fundamental principles of taxation.
New Tax Rules for Intra-Group Financing in Luxembourg
Authors: Taferner A. , Schmitz M.
Published: December 2023

In this note, the authors discuss two administrative circulars on the tax treatment of intra-group financing transactions issued by the Luxembourg tax authorities in January and April 2011, which clarify the application of the OECD Transfer Pricing Guidelines to debt-funded intra-group financing activities, list conditions that need to be met in order for a taxpayer to obtain a binding advance pricing agreement and provide for a grandfathering period for existing structures.
EC remedies for national law in breach of EC law : the United Kingdom's
experience
Authors: Schwarz J.
Published: December 2023

In the European Union, Community law confers certain rights on EU
nationals which are interpreted by the European Court of Justice. The legal
order of the Community, however, relies on the national courts to provide
remedial rights. The complex interaction between the two jurisdictions has
given rise to numerous disputes in many recent cases that have questioned the
compatibility of every significant aspect of the United Kingdom's international
tax system with Community law. This article examines certain aspects of the
UK's experience to date.
A Consideration of the European Foundation
Authors: Korving J.J.A.M. , Wijtvliet L.W.D.
Published: December 2023

In this article, the authors examine the proposed regulation on the
European Foundation focusing on the tax treatment of the new entity.
Key Channels for Foreign Investors to Enter into China
Authors: Luo A. (Y.) , Zhao K. (Y.)
Published: December 2023

To invest in China, foreign investors usually choose to set up a foreign-invested enterprise, foreign-invested investment company, foreign-invested venture capital investment enterprise or qualified foreign limited partnership or they gain access thanks to the status of qualified foreign institutional investors or renminbi-qualified foreign institutional investors. As the Chinese government continues opening up its policies, foreign investments are expected to be subject to fewer restrictions and foreign investors to be able to enjoy more flexibility in China.
Implementation of Agreements on International Assistance in Tax Collection: Avoiding the Complexity of a “Mirror” Approach
Authors: De Troyer I.
Published: December 2023

This article focuses on recent initiatives regarding international assistance in tax collection, the success of which is influenced by simplicity and complexity. A “mirror” approach is often adopted, whereby states aim for maximum equivalence in tax collection laws and practice, but the author does not think that this is ideal.
Proposal for a Directive on Ensuring a Global Minimum Level of Taxation for Multinational Groups in the European Union: First Steps in Pillar Two Implementation in the European Union
Authors: Valério C.
Published: December 2023

This article describes and comments on the general framework of the Proposal for a Council Directive on ensuring a global minimum level of taxation for multinational groups in the European Union.
VAT Registration Thresholds in Europe
Authors: Annacondia F. , Corput W. van der
Published: December 2023

As is traditional in the sixth issue of each year, in this issue of
the International VAT Monitor, the editors present an
overview of the VAT thresholds in most European (both EU and non-EU) countries.
In order to allow comparison, all national thresholds expressed in currencies
other than the euro have been converted into euro. The overview, which is based
on information provided by our correspondents, reflects the situation in
October 2010 supplemented with announced amendments entering into force on 1
January 2011.
Taxation of Cross-Border Dividends, Interest, Royalties and Service Fees
Authors: Ridder P.L. de
Published: December 2023

In this article, the author discusses the Indonesian tax treatment of specific types of income cross-border payments of dividends, interest, royalties and service fees. Domestic withholding tax implications as well as treaty relief are also covered.
Spanish Tax Measures to Promote Internationalization – Where Have the Good Times Gone?
Authors: Calvo R.
Published: December 2023

The author, in this article, examines the problems that arise from the practical application of Spanish tax measures to promote internationalization. Recent interpretations of the Spanish authorities and courts (and, where applicable, EU institutions) are presented and critically evaluated.
Council
Authors: Alvarado M.
Published: December 2023

This overview highlights the Council’s updated list of non-cooperative jurisdictions, its proposal to reform the special VAT scheme for SMEs and its compromise text on the proposal for payment service providers in e-commerce.
Kaffeknappen: Court Case on Intra-Group Sale of Trademark
Authors: Persson O. , Alm T.
Published: December 2023

A decision of the Administrative Court of Appeal seems to mark the
beginning of a new line of argumentation of the tax authorities in situations
involving the related-party sale of a trademark.
Supreme Court Holds That Commissionaire Structure Does Not Amount to a Permanent Establishment
Authors: Leegaard T.
Published: December 2023

In this note, the author comments on the recent decision of the Norwegian Supreme Court in Dell Products v. Government of Norway, wherein the court held that sales to Norway through a Norwegian affiliate through a commissionaire arrangement did not constitute an agency permanent establishment.
Combating VAT Fraud through Digital Technologies: A Reform Proposal
Authors: Ismer R. , Schwarz M. (Magdalena)
Published: December 2023

The fight against VAT fraud calls for a major overhaul of the VAT system. After presenting existing reform proposals, in this article, the authors advocate making use of the opportunities offered by digitization and suggest that the reverse charge mechanism should generally apply to business-to-business transactions when the supplies have been recorded in a central online database.
Transfer Pricing Adjustments and VAT
Authors: Matesanz F.
Published: December 2023

In this article, the author describes the interrelationship between transfer pricing and VAT. He mentions that it is a fact that cannot be overlooked. Taxable persons need certainty on how to tackle transfer pricing adjustments for VAT purposes. The author explains that harmonization at EU level is urgently needed.
Sharing joint expenses under EU VAT
Authors: Swinkels J.J.P.
Published: December 2023

Since the circumstances under which the sharing of expenses relating
to joint investments is outside the scope of the EU VAT system are not entirely
clear, the Netherlands Supreme Court has developed standard conditions to fill
that lacuna, and labelled its approach as the doctrine of sharing joint
expenses. The author explains this doctrine and its Community aspects. He
concluded that it may even be more practical not to rely on this concessional
doctrine and to treat the sharing of joint expenses as consideration for a
supply made by the recharging party.
Regulation on
Business Restructuring: Decree-Law on the Relocation of Functions
Authors: Kroppen H-K. , Rasch S.
Published: December 2023

The German parliament has enacted a tax on the so-called relocation of
functions. In addition to providing an overview of the tax effects of this new
legislation, the authors put forth a critical assessment of the shortcomings
and potential negative impact for taxpayers.
New CFC Regime: Yet Another Tax Measure Implemented To Tighten the Polish Tax System
Authors: Doorn-Olejnicka M., van
Published: December 2023

This note provides a detailed description of the new CFC regime that has been introduced into the Polish legislation, including a discussion regarding its compatibility with EU law and a comparison of the CFC regime with those of other countries.
An EU Single VAT Registration on B2B Supplies
Authors: Amand C. , Ceci E.
Published: December 2023

The European Commission is examining the extension of the One-Stop Shop (OSS) arrangement to B2B intra-EU transactions. This suggestion would be very promising if it could reduce the cost of intra-EU trade formalities, taking into account the impact of the prefinancing of VAT. Such a solution might be possible by a reduction of the formalities imposed on businesses, combined with the use of new technologies.
In Search of Tax Policy to Improve Taxpayer Compliance in Pakistan
Authors: Hassan B.
Published: December 2023

In this article, the author analyses taxpayer non-compliance in Pakistan from various perspectives. Factors affecting taxpayer compliance are discussed. The article also examines tax compliance policy employed by the Pakistan tax authority, gives reasons for its failure and proposes a number of measures to improve taxpayer compliance in Pakistan.
Common Consolidated Corporate Tax Base
Authors: Kanter M. , Klaver B. , Douma S.C.W. , Vollebregt H.A.
Published: December 2023

The Directive for a Common Consolidated Corporate Tax Base within the European Union was published by the European Commission on 16 March 2011 with the main objective in creating a single set of tax rules allowing cross-border consolidation of EU group taxable profits. Since the CCCTB may re-distribute taxable profits from one tax jurisdiction to another, it has caused intense political debate in the Netherlands. This article outlines the main features of the CCCTB Directive and the key elements of the political process to adopt (or reject) this Directive. The authors will also address the arguments brought forward by the Dutch government and parliament against the CCCTB Directive with a special focus on transfer pricing aspects.
Postponed Accounting in the European Union
Authors: Fedchyshyn Yuriy
Published: December 2023

In this article, the author presents an overview of the criteria and conditions that Member States of the European Union apply for allowing importers of goods to account for import VAT through their periodic VAT return.
Dividends Received by Investment Funds: An EU Law Perspective – Part
1
Authors: Genta G.
Published: December 2023

This article examines the cross-border taxation of dividends received
by equity funds. In particular, the author examines the issue of discrimination
and the related analysis of whether or not domestic and foreign funds are in a
comparable situation. In Part 1, the author examines ECJ and EFTA Court
decisions in this area. Part 2, to be published in European
Taxation 4 (2013), analyses ECJ guidelines and the author’s own approach
to the comparability analysis and the concept of fiscal coherence.
How “Permanent”
Should a “Material Permanent Establishment” Be?
Authors: Dierckx Frank
Published: December 2023

In this note, the author considers the implications of
a recent Belgian tax case regarding permanent establishments (PEs), with
particular reference to the concept of a “material permanent
establishment”.
Report on the Symposium “The Freedom of the Judge in the Interpretation of Regulations”
Authors: Offermanns R.H.M.J.
Published: December 2023

In this article, the author reports on a symposium held on 9 February 2023 at the Royal Tropical Institute in Amsterdam, the topic of which was “On the freedom of the judge in the interpretation of regulations: in the interpretation of the Multilateral Instrument (MLI) and in the interpretation of national regulations”.
The “Other Income” Article in Tax Treaties as Interpreted by the Courts: A Case Law Analysis
Authors: Orellana Polo E.
Published: December 2023

In this article, the author considers how the scope of the “other income” article in tax treaties, and in the OECD Model, has been interpreted by various courts around the world.
Marie Lamensch, European Value Added Tax in the Digital Era: A Critical Analysis and Proposals for Reform
Authors: Hellerstein W.
Published: December 2023

Walter Hellerstein reviews European Value Added Tax in the Digital Era: A Critical Analysis and Proposals for Reform by Marie Lamensch.
The International Tax Treatment of Cross-Border Services
Authors: Govind S.P.
Published: December 2023

This article uses general international tax jurisprudence to question the propriety of rules providing for the taxation of cross-border services that currently apply in various jurisdictions and tax treaties. The article also examines the obstacles facing the taxation of services provided from one jurisdiction to another.
Practical Information on European VAT
Authors: Annacondia F. , Corput W. van der
Published: December 2023

As is traditional in the first issue of each year, the green section presents the key features of the VAT systems of most European (both EU and non-EU) countries, including the standard and reduced VAT rates, various thresholds, the format of the VAT identification numbers and information on the national tax administration offices that refund VAT to non-resident traders or that provide information on the national VAT rules. The overview is compiled by the editors on the basis of information provided by the International VAT Monitor’s correspondents at the beginning of 2010.
Impact Bonds: Innovative Finance to Improve Aid Effectiveness in Africa
Authors: Dussauge E.
Published: December 2023

As the nature of development assistance and financial flows to Africa evolves, impact bonds – a form of results-based financing which works with private investors to fund social programmes – have the potential to improve the quality and efficiency of programme delivery in Africa to maximize social impact.
Income Adjustments for Cross-Border Bilateral or Multilateral Advance Pricing Arrangements
Authors: Hsu L. , Shie J.R.
Published: December 2023

In line with international tax trends, a new decree announced by the Ministry of Finance of Chinese Taipei grants flexibility for income adjustments for cross-border bilateral or multilateral advance pricing arrangements.
Taxation of Deferred Bonuses in Cross-Border Scenarios: Does the Italian Ruling Introduce a New Frontier?
Authors: Barcellona M. , Ronca P.
Published: December 2023

In this article, the authors discuss a recent ruling of the Italian tax authorities (Ruling No. 126 of 2023), which addresses the taxation of deferred remuneration (in particular, bonuses) paid once an individual has become an Italian resident but relating to employment previously exercised abroad.
Taxpayers’ Rights in the Expanding Universe of Criminal and Administrative Sanctions: A Fundamental Rights Approach to Punitive Tax Law Following the OECD/G20 Base Erosion and Profit Shifting Project
Authors: Weffe H. C.E.
Published: December 2023

This article discusses the current trend towards the expansion of states’ punitive powers, identifies and traces the phenomenon in tax law, and discusses the effect that this particular approach to criminal and administrative sanctions has in the definition and the scope of taxpayers’ rights regarding punitive matters.
CFE Forum 2012: Tax Law in the Light of Judgments - Interaction between European Law and Domestic Courts
Authors: Popa O.
Published: December 2023

On 19 April 2012, the Confédération Fiscale Européenne (CFE) held its 2012 Forum in Brussels. The topic for discussion was "Tax Law in the Light of Judgments - Interaction between European Law and Domestic Courts".
Action Plan To Administer Transfer Pricing for 2012-2015
Authors: Nguyen P.T.
Published: December 2023

This article summarizes transfer pricing enforcement activities, audit
results and other related concerns; discusses the Action Plan to address
transfer pricing of foreign enterprises for 2012-2015; and provides comments on
recent developments and the future transfer pricing landscape.