bluuebunny/crossref_metadata_2025 huggingface dataset:
Yet Another Vodafone India Judgment
Authors: Bhatnagar V.
Published: December 2023

Vodafone emerged victorious in its recent challenge before the Bombay High Court of a proposed transfer pricing adjustment. The case concerned the sale of the taxpayer’s call centre business and the proper treatment of an assignment of call options.
Digitalization of Traditional Business Models: Transfer Pricing Implications of Business Restructurings
Authors: Prasanna S.
Published: December 2023

This article recognizes the need for augmenting the application of arm’s length analysis in light of digitalization of business models and recent litigation surrounding business restructurings. The author recommends the integration of digital themes in undertaking function, asset and risk (FAR) analyses and suggests modifications to conventional entity characterizations. The author also proposes and discusses the implementation of a “digital intensity test” to improve comparability analysis.
Commissionaire/Agency Permanent Establishment Structures
Authors: Oosterhoff D. , Tiele 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 the Netherlands.
Special Issue – Preface
Authors: Rossiter E.P.
Published: December 2023

This preface introduces the 10th meeting of the International Association of Tax Judges, held in Cambridge, England from 13-14 September 2019.
Recent Developments on the Deductibility of Foreign Permanent Establishment Losses in Germany
Authors: Perdelwitz A.
Published: December 2023

In this note, the author reviews recent decisions of the Federal Finance Court regarding the tax treatment of losses incurred by foreign permanent establishments. On 9 June 2010, in two decisions relating to the deductibility of foreign permanent establishment losses, the Federal Finance Court commented on whether or not such losses should be taken into account and if so, in which tax year they should be deducted.
Argentina’s New Controlled Foreign Company Rules Following the OECD/G20 Base Erosion and Profit Shifting Project
Authors: Fernández Sabella F.
Published: December 2023

This article examines the main features of Argentina’s recently reviewed controlled foreign company provisions from a practical perspective with emphasis on whether the new legislation is consistent with the Final Report on Action 3 of the OECD/G20 Base Erosion and Profit Shifting Project.
Alternative Taxation Regimes for New Tax Residents
Authors: Perrou K.
Published: December 2023

In this note, the author outlines two new regimes that provide for alternative taxation in respect of new residents, namely a regime for high net worth individuals who move to Greece, which is linked to investment in Greece, and a regime aimed at pensioners wishing to move their tax residence to Greece. In particular, the author examines the interplay between the regimes and Greece’s tax treaty network.
Exemption for Educational Services in Poland
Authors: Lasiński-Sulecki K.
Published: December 2023

Provisions in the national Act of a Member State of the European Union
which deviate from the wording of corresponding provisions laid down by the EU
VAT Directive inevitably give rise to disputes and litigation. In this article,
the author discusses the current exemptions for educational services in Poland.
Will the VAT Implementation Be Smooth Sailing?
Authors: Junaidy F.V.
Published: December 2023

The author analyses the new VAT Law which had been scheduled to be
implemented from 1 July 2010 (and which is now postponed to 2011). He discusses
the proposed provisions of the new law and the hurdles the law faces at both
the federal and provincial level.
Luxembourg Court Case on Intercompany Financing Increases Focus on
Transfer Pricing
Authors: Rasch M. , Lozano-Moury L. , Pala D.
Published: December 2023

A Luxembourg court case, in which the arm’s length interest rates
applied by a Luxembourg company were scrutinized, leads to the necessity to pay
even more attention on applying arm’s length interest rates.
Triangular Double Taxation: A Fresh Approach
Authors: Vollebregt H.
Published: December 2023

The author considers double taxation in triangular situations, and suggests a new approach to this long-running problem.
Commission
Authors: Valério C.
Published: December 2023

This overview highlights the Commission’s (i) request for feedback on the proposal to tackle the role of enablers of tax evasion and aggressive tax planning, (ii) Annual Report on Taxation 2022; (iii) reasoned opinion on the failures of Greece and Spain to communicate ATAD 2 implementing rules on hybrid mismatches; (iv) approval of Italian aid scheme to support tourism sector; and (v) approval of Hungarian Aid scheme to support companies impacted by Russia’s invasion of Ukraine.
Anti-Treaty Shopping Rules: Section 50d-3 of the Income Tax Act
Authors: Jochimsen C. , Schiffer E.
Published: December 2023

In this note, the authors discuss recent changes to the German
anti-treaty shopping provision and provide guidance on how it should be
applied. In addition, the note touches on the potential breaches of EU law with
regard to the rule.
Hybrid Entities and the OECD Model (2017): The End of the Road?
Authors: Bergedahl C.
Published: December 2023

This article considers the important amendments made to the OECD Model (2017) and the Commentaries on the OECD Model (2017), with special emphasis on the implications of the changes made to articles 1 (Persons covered) and 23 (Methods for elimination of double taxation).
The Deduction Limitation for Share Transaction Costs in the Netherlands
Authors: Yeung S.Y.A. , Bekkers L.
Published: December 2023

Share transactions often involve considerable costs for both the purchaser as well as the seller and not the least in respect of costs for legal support, such as those relating to lawyers, notaries and (tax) advisers. These costs are not always deductible from the taxable profits of Dutch companies.
Cash Pooling Arrangements – A Romanian Tax Perspective
Authors: Cotrut M.
Published: December 2023

This article highlights the direct tax implications that arise at the level of a Romanian tax resident company participating in a cash pooling arrangement. The article also outlines the steps that attention should be given to when assessing such tax implications. As the possible direct tax consequences depend on the type of arrangement, the author highlights the importance of classifying the cash pooling arrangement.
The Danish Supreme Court’s Decisions on Withholding Tax on Dividends and Interest
Authors: Winther-Sørensen N.
Published: December 2023

In this article, the author discusses the final decisions from January and May 2023 of the Danish Supreme Court in the Danish beneficial ownership cases. The Supreme Court ruled on the consequences of the ECJ preliminary rulings but also took a position on questions of principle on the interpretation of tax treaties and domestic Danish tax law. The Supreme Court ruled that the Danish companies were liable for Danish withholding tax.
The OECD Master File: Past and Future
Authors: Veldhuizen R. , Teneketzis L.
Published: December 2023

This article provides an overview of the master file requirements that are introduced as part of the revised Chapter V of the OECD Transfer Pricing Guidelines. First, the new master file requirements are compared with the existing master file concept, followed by a discussion of potential issues related to the implementation of and/or conversion towards the new global master file.
Comparative Analysis of Taxing the Digital Economy
Authors: Ching Mun Loke J.
Published: December 2023

In this issue of the Asia-Pacific Tax Bulletin we have curated a series of country reports taking a look at the direct and indirect taxation measures adopted by countries to tackle the tax issues and challenges of the digital economy. This lead article has been published together with six countries (Australia, China, India, Indonesia, Korea (Rep.) and Malaysia).
Group Synergies and the Shapley Value Analysis: A Game Theory Approach
Authors: Batrakova S. , Hoefele A.
Published: December 2023

The OECD Transfer Pricing Guidelines acknowledge the importance of accounting for MNE group synergies for transfer pricing purposes. This article proposes a practical game theory approach to arrive at an equitable distribution of the profits related to group synergies between members of an MNE group, based on the measurable contribution of the parties.
Report of the Proceedings of the Fifth Assembly of the International Association of Tax Judges (23-24 October 2014)
Authors: Bauserman D. , Stehn M. , Lovett K.L.
Published: December 2023

The report summarizes the proceedings of the Fifth Assembly of the International Association of Tax Judges, held in Washington, D.C. on 23 and 24 October 2014.
GAAR Becomes Operational in India
Authors: Rawal R.
Published: December 2023

On 1 April 2017, India’s general anti-avoidance rule (GAAR) came into effect. This article discusses the background to the introduction of the GAAR and provides an overview of its statutory provisions and administrative guidance. The author also raises some practical challenges to its implementation.
Is Obesity Degenerating New Zealand’s GST?
Authors: Holmes K. , Pinny J.
Published: December 2023

John Kenneth Galbraith said “more people die in the United States of too much food than of too little”.
John Kenneth Galbraith, The Affluent Society (London:, Penguin, 1958), p. 11. That statement could equally apply to New Zealand, which is facing escalating healthcare costs as a result of the population’s increasing obesity. In this article, the authors critique proposals to address the problem by removing GST from “healthy foods” and instead advocate further investigation into taxing “unhealthy foods”.
Symposium on State Aid
Authors: Offermanns R.H.M.J.
Published: December 2023

This article provides an overview of a symposium on State aid organized by the Platform of the Netherlands Tax Jurisdiction (Platform Belastingrechtspraak) held on 10 November 2016 at the Netherlands Supreme Court building in The Hague.
Article 9(1) of the OECD Model Restricts Income Adjustments Based on Formal Criteria
Authors: Hagemann T.
Published: December 2023

The German income adjustment provisions allow, in specific cases, for adjustments due to non-compliance with formal criteria. Tax audit adjustments are, therefore, regularly made regardless of whether or not they correspond to appropriate transfer prices. In a decision of 11 October 2012, the Federal Fiscal Court addressed the relationship of these provisions to article 9(1) of the OECD Model. This article provides an overview of this decision and its practical implications.
Transfer Pricing Update
Authors: Omondi F.
Published: December 2023

Recent developments in Kenya, Uganda and Tanzania are considered.
Opinion Statement ECJ-TF 1/2020 on the General Court Decisions of 24 September 2019 in The Netherlands v. Commission (Starbucks) (Joined Cases C-760/15 and T-636/16) and Luxembourg v. Commission (Fiat Finance and Trade) (Joined Cases T-755/15 and T-759/15), on State Aid Granted by Transfer Pricing Rulings
Authors: CFE ECJ Task Force
Published: December 2023

This CFE Opinion Statement, submitted to the EU Institutions on 28 January 2020, discusses the General Court decisions of 24 September 2019 in The Netherlands v. Commission (Starbucks) (Joined Cases C-760/15 and T-636/16) and Luxembourg v. Commission (Fiat Finance and Trade) (Joined Cases T-755/15 and T-759/15), on State aid granted by transfer pricing rulings.
CFE Forum 2017: Summary Report
Authors: Dineen M.
Published: December 2023

In this note, the author provides a summary of the presentations made at the CFE Forum 2017 held in Brussels on 30 March 2017.
New Regime for Cost Sharing Associations in Belgium
Authors: De Jaegher C.
Published: December 2023

Further to a request for information from the European Commission, Belgium has redefined the conditions to apply the exemption for cost sharing associations in its national legislation. The new regime is more flexible on several points than the old one, while enforcing more transparency for the VAT administration. In this article, the author clarifies the essential changes under the new regime and compares these to the requirements of the exemption as set out at European level.
US Update
Authors: Hammer V.
Published: December 2023

In this fourth in a regular series of articles examining recent significant developments regarding US tax matters relating to international taxation, the author considers a Germany–United States competent authority clarification on the treatment of pension plans, and five US regulations and two US tax cases with international tax implications.
The Proposed OECD Multilateral Instrument Amending Tax Treaties
Authors: Austry S. , Avery Jones J.F. , Baker P. , Blessing P.H. , Danon R.J. , Goradia S. , Inoue K. , Lüdicke J. (Jürgen) , Maisto G. , Miyatake T. , Nikolakakis A. , Raad C. van , Vann R.J. , Wiman B.
Published: December 2023

In this article, the authors consider some of the practical issues relating to the introduction of the OECD multilateral instrument amending tax treaties, which has been proposed within the context of the OECD/G20 Base Erosion and Profit Shifting Project.
Proposed Statutory Recognition of OECD Guidelines
Authors: Joseph A.
Published: December 2023

The author considers proposed legislation that would incorporate the
OECD Guidelines as part of Australian law.
Korea’s Beneficial Owner Rules: Implications of the Amendment to the Special Deeming Rule for Overseas Investment Vehicles
Authors: Kim K.D. , Jin E.
Published: December 2023

Foreign investors wishing to apply a reduced tax rate or tax exemption under Korea’s tax treaties must determine whether they qualify as the “beneficial owner” of the relevant Korean-sourced income. For foreign fund investors who hold Korean investments indirectly via one or more offshore special purpose vehicles (SPVs), the beneficial owner analysis can be much more complex as they also need to consider the potential application of the special deeming rule for overseas investment vehicles (OIVs). This article provides an overview of Korea’s beneficial owner rules with a particular focus on the recently amended special deeming rule for OIVs. It also aims to shed some light on aspects of the beneficial owner rules that should be considered by foreign funds investing in, and deriving income from, Korea, through intermediated structures using one or more offshore SPVs.
Basel III: The Regulatory Framework
Authors: Krause M.
Published: December 2023

The Basel rules have fundamentally changed and are changing the legal framework and business environment for credit institutions. This article provides an overview of the Basel provisions and looks at their consequences, as well as the structuring options they present.
Permanent Establishment Risks following Manufacturing and Distributing Restructurings
Authors: Antunes Rubim F.
Published: December 2023

The author, in this article, determines the legal framework available to deal with permanent establishment risks following manufacturing and distributing restructurings, analyses various countries’ practice on this issue, notes the consequences of these findings for global organizations, and suggests measures that may be adopted to mitigate these risks.
Commission
Authors: Alvarado M.
Published: December 2023

This overview highlights the Commission’s (i) decision to extend the Temporary Framework to continue to support businesses affected by the COVID-19 pandemic, (ii) working papers resulting from the 119th meeting of the VAT Committee regarding VAT groups and the new VAT provisions on e-commerce, (iii) request to Spain to allow for the deduction of directly-related expenses when calculating the withholding tax on cross-border royalty payments, (iv) approval of modifications to the Danish aid scheme aimed at maritime transport and (v) approval of Italian aid schemes supporting companies affected by the COVID-19 pandemic.
Taxing of Financial Arrangements: Changes to Come
Authors: Joseph A.
Published: December 2023

This article considers an exposure draft released in January 2013
which contains proposed measures to clarify and monitor the implementation of
the specified methods for calculating gains and losses of financial
arrangements, especially hedging arrangements.
Taxation of the Digital Economy – The Chilean Approach
Authors: Gepp I.
Published: December 2023

In this article, the author addresses the efforts made by the administration of President Sebastián Piñera to effectively tackle some of the challenges arising from the digitalized economy. Mainly, the author explains the proposals towards a “multiple solution approach” by the Chilean government sent to the National Congress in late 2018, which are expected to be either passed or rejected by mid-2019.
New Rules on International Tax Rulings for Enterprises with International Business Operations
Authors: Cesare F. di
Published: December 2023

Recently, a number of changes were made to Italian tax law concerning international tax rulings. The new regime formally broadens the scope of the international tax ruling procedure, which – in addition to transfer pricing – may be actually used for different queries of international relevance, including the opportunity to conclude (under certain conditions, also retroactive) agreements on the effective existence in Italy of a permanent establishment of a non-resident entity.
Taxing Digital Businesses in Australia
Authors: Toryanik T.
Published: December 2023

In this issue of the Asia-Pacific Tax Bulletin we have curated a series of country reports taking a look at the direct and indirect taxation measures adopted by countries to tackle the tax issues and challenges of the digital economy. This article on Australia has been published together with five other countries (China, India, Indonesia, Korea (Rep.) and Malaysia) and with a lead article.
VAT Deductibility for Fixed Establishments: The ECJ Ruling and the Italian Legal System
Authors: Cosentini R.
Published: December 2023

In the Morgan Stanley case, the Court of Justice of the European Union (ECJ) offered new clarifications regarding the VAT-deductible proportion applicable to a branch established in a Member State other than that of its headquarters. In this article, the author runs through the legal and logical reasoning provided by the ECJ in order to highlight differences – both positive and negative – between that judgment and the current Italian legal system.
Should Transfer Pricing Practitioners Become Credit Rating Analysts? Practical Instructions Based on Final OECD Guidance on Financial Transactions
Authors: Fossati R.
Published: December 2023

This article outlines the main concerns and drawbacks that one could confront in attempting to analyse financial transactions by following the principles provided in the Transfer Pricing Guidance on Financial Transactions published by the OECD on 11 February 2020. In essence, it highlights the necessity of assessing the company’s creditworthiness and the applicability of the various tools and methodologies available for the identification of the appropriate credit rating of MNE groups and subsidiaries, as well as the validity of the contiguous interrelations between the assets and credit rating of the guarantor with those of the borrower. At the same time, this article specifically aims to provide a practical illustration of the rating methodologies developed by credit rating agencies and thus make it a self-explanatory example for use in the endless discussions regarding the importance of qualitative reasoning for the estimation of the borrower’s credit rating.
The Transactional Profit Methods in Practice: A Survey of APA Reports
Authors: Cooper J.L. , Agarwal R. (Rachit)
Published: December 2023

One of the main changes in the 2010 version of the OECD Transfer Pricing Guidelines is the replacement of the formal hierarchy of transfer pricing methods with a “most appropriate method to the circumstances of the case” standard. Against this background, this article considers the extent of use of the transactional profit methods in practice over the last two decades.
Provisional Measure Increases Taxation for Companies under the Deemed Profit Regime Regarding Author, Image Right and Similar Income
Authors: Peixoto Orsini Marcondes D.G. , Peixoto Orsini E.
Published: December 2023

Brazil has enacted several Provisional Measures in an attempt to increase taxation for both individuals and companies, including Provisional Measure 690, which has substantially increased, from 1 January 2016, the taxation of author, image, name, voice and similar rights held by Brazilian companies.
New Zealand Anti-Hybrid Rules
Authors: Joseph A.
Published: December 2023

Consistent with the approach by several countries, New Zealand decided to adopt the OECD recommendations in a comprehensive manner with suitable modifications for the New Zealand context. Although the anti-hybrid rules introduced in 2018 are not significantly different from those in operation in Australia, certain rules need to be watched carefully in order to avoid any unexpected adverse consequences.
Impact Assessment of Asset Declaration Scheme 2019 on Documentation of Foreign and Domestic Assets
Authors: Hassan B.
Published: December 2023

In light of concerns about considerable corporate and non-corporate tax evasion, Pakistan has introduced a tax amnesty for voluntary declarations under the Asset Declaration Ordinance 2019. In this article, the author discusses the legislative framework of Pakistan that led to the introduction of a tax amnesty. Following a review of the main provisions of the Asset Declaration Ordinance 2019, the article presents its impact on declaration of foreign and domestic assets and discusses the factors underlying its successful implementation.
Rethinking the Interest Deduction Rules in Light of the Chevron Australia Case
Authors: Sadiq K.
Published: December 2023

Based on the case of Chevron Australia (2017), this article argues that excessive debt loading and the transfer mispricing of financial transactions could be addressed by a limited formulary apportionment rule for debt deductions. The article also offers insights into the likely implications of the global adoption of such a model.
Introduction of Bali Digital Nomad Visa and Related Tax Considerations
Authors: Sukardi I.
Published: December 2023

One of the many trends that emerged from the COVID-19 pandemic, enabled by the virtual era we live in, was the ability for employees to “work from home” or even “work from anywhere”. Recognizing its value, countries in the South-east Asia region began introducing Digital Nomad Visas in 2022, allowing foreign individuals to stay and work in the country without a formal local employer. One of the first to launch in the region was Indonesia’s Work From Bali. This article takes a look at this new offering and examines the arising tax implications.
Transfer Pricing Aspects of Cash Pooling Arrangements in Light of the BEPS Action Plan
Authors: Chand V.
Published: December 2023

The author discusses the concept, underlying commercial rationale and types of cash pooling arrangements, and then analyses and comments on the transfer pricing aspects thereof. The analysis also takes into consideration the Actions under the OECD/G20 BEPS Project related to transfer pricing. The author discusses the impact of other BEPS-related actions (domestic and treaty law changes) on cash pooling arrangements, and ultimately suggests a way forward.
Jurisdiction to Tax in the Digital Economy: Permanent and Other
Establishments
Authors: Hellerstein W.
Published: December 2023

In this article, the author discusses the importance of administrative
concerns in designing jurisdictional rules for the digital economy and the goal
of aligning the jurisdictional assignment of the tax base with the ability to
enforce tax collection in the jurisdiction to which the base is assigned.
Debt-Financed Acquisitions of Inter-Company Shareholdings – Recent
Developments
Authors: Baumann A. , Simader K.
Published: December 2023

This article examines the deductibility of interest incurred in
financing the acquisition of an inter-company shareholding. In particular, the
article outlines the non-deductibility of interest incurred in relation to
tax-exempt income, the specific rule that was introduced in 2004 to allow for
the deduction of interest incurred for the acquisition of shareholdings, and
the exception to the 2004 provision that was introduced effective 1 January
2011 for inter-company acquisitions.
An End of a Journey or a New Beginning? – The 2012 Trilogy of Supreme Court Decisions on International Tax
Authors: Yoon J-H.
Published: December 2023

In this article, the author provides an in-depth analysis of the key Supreme Court decisions in 2012 in Korea, namely the Lone Star, LaSalle and WiniaMando cases. These landmark cases relate to important international tax concepts such as beneficial ownership and substance over form and provide useful insight on the approach taken towards these theoretical tax concepts in the real world.
The Italian Supreme Court’s Decision in the ITW Case: The Beneficial Ownership Requirement and Double Non-Taxation
Authors: Mazzoni G.
Published: December 2023

The author, in this article, considers the decision of the Italian Corte Suprema di Cassazione (Supreme Court) in the recent case of ITW regarding treaty benefits, in particular, with regard to the issues of beneficial ownership and double non-taxation.
New Transfer
Pricing Reporting Obligations
Authors: Ortiz Gómez G. , Huerta A.R.
Published: December 2023

In a bid to catch up with the global trend with regard to transfer
pricing issues, Mexico has recently implemented new transfer pricing reporting
obligations. Key elements include new instructions for integration completion
and electronic filing of the audit report; guidance formats for the filing of
the audit report;and a questionnaire on transfer pricing.
Ownership under OECD Rules: Transfer Pricing and Beyond
Authors: Kanter M. , Reijnierse J. , Vollebregt H.
Published: December 2023

This article examines OECD rules regarding ownership of assets within an international group. This topic is rapidly developing into a growing source of controversy as taxpayers are confronted with different concepts of ownership in recent OECD documents. The authors call upon the OECD to develop in this area a set of rules that apply for various purposes, including transfer pricing, the allocation of profits to a permanent establishment and relief from withholding tax.
Three New Requirements for Zero Rating Intra-Community Supplies: Barking Up the Wrong Tree
Authors: Gómez Aragón  , Echevarría Zubeldia G.
Published: December 2023

In this article, the authors challenge the substantive characterization of the three new requirements relating to the zero rate of intra-Community supplies of goods introduced by the “quick fixes” package and address the consequences arising from failure to comply with them.
New Rules on the Attribution of Profits to Permanent Establishments
Authors: Beretta G.
Published: December 2023

In this article, the author examines both the former and new rules for the computation of income attributable to Italian permanent establishments and analyses the qualification of business income of non-resident enterprises under Italian tax law. Further, the recently enacted branch exemption regime, pursuant to which resident enterprises may opt for an exemption in respect of the profits of foreign PEs from the Italian tax base, is discussed.
First Danish Decisions on Beneficial Ownership following the ECJ Decisions in the “Danish Cases”
Authors: Tolstrup B. , Bjørnholm N.
Published: December 2023

This note describes the Danish High Court’s decisions in the first beneficial ownership case decided since the ECJ decisions in Skatteministeriet v. T Danmark (Case C-116/16) and Skatteministeriet v. Y Denmark (Case C-117/16).
Electronic VAT Administration System in Ukraine: Comparative Analysis with the European Union
Authors: Getmantsev D.
Published: December 2023

VAT is one of the main sources of revenue for more than 160 states around the world. However, these states constantly have to improve their VAT systems in order to tackle the numerous cases of fraud. The EU VAT system applies in a harmonized way in all the Member States. However, the Member States still have some flexibility in the area of the fight against VAT fraud. In Ukraine, there is a full-scale electronic VAT administration system in place, entailing the drawing up of VAT invoices by taxable persons (suppliers) and their being recorded in a state register, setting up special accounts to pay the VAT, preliminary monitoring of conducted transactions reflected in tax invoices, and automatic refunds of VAT amounts upon taxable persons’ applications. In this article, the author makes a comparative analysis of the Ukrainian and the EU (and selected Member States’) VAT administration systems and identifies their current strengths and weaknesses.
In Search of Effective Regulation: Draft Bill on Transfer Pricing
Authors: Variychuk E.
Published: December 2023

Transfer pricing is a relatively new phenomenon in Russian tax theory and practice. In recent years, however, the attention paid to transfer pricing rules has increased greatly, as their application significantly affects tax revenue. In this regard, the author outlines the changes proposed to the Russian transfer pricing regime.
Accounting Treatment and Tax Implications of Repo Transactions
Authors: Tam A. , Yu J.
Published: December 2023

The authors provide an overview of the accounting and tax treatment of repo transactions. In addition to reviewing applicable accounting standards, sample accounting entries are presented. Implications for corporate income tax and business tax are also addressed.
Revised Guidance on the Application of the Transactional Profit Split Method: Evolution or Revolution?
Authors: Zucchetti S. , Piva C.
Published: December 2023

The OECD, in response to the mandate under the BEPS Project of developing rules in order to ensure allocation of profits in line with the actual value creation, recently revised the guidelines provided for the application of the transactional profit split method. This article analyses the new provisions contained in the Revised Guidance 2018 and discusses practical approaches which can be taken in order to apply the method in a reliable manner, and to some extent elucidates the OECD’s thoughts on some particular issues.
IFA Turns 75! Proceedings of the IFA 75th Anniversary Jubilee Conference
Authors: Michel B.
Published: December 2023

On Saturday 2 February 2013, the International Fiscal Association (IFA) celebrated the 75th anniversary of its foundation. A jubilee conference took place in the Peace Palace in The Hague, the Netherlands, exactly where IFA was founded on 12 February 1938. Bob Michel reports on the conference.
Tax Aspects of the Metaverse: Is a Pillar Three Coming?
Authors: Simontacchi S. , Scandone F.S. , Lorenzi U.
Published: December 2023

The metaverse and Web 3.0 are (again) going to change the digital economy and its business models as we know them and give rise to key issues from a tax perspective. It is thus expected that the current international tax principles, the tax challenges raised by OECD BEPS Action 1 for the digital economy and, more recently, Pillar One new taxing rights (which have yet to be implemented) could soon become outdated. This article illustrates, with the support of some examples, what the future challenges of international taxation might be – considering, among other things, the potential coexistence of the “old” principles under the OECD Model Tax Convention and Pillar One – and how the metaverse might have an impact on business models and the real world (including by considering the role and interactions of cryptocurrencies, NFTs and blockchain technology, which are key to the metaverse’s operations) with a focus on how taxing rights among the different countries involved in the metaverse are to be attributed.
FATCA and the Impact on Dutch Investment Funds
Authors: Steinbusch M.
Published: December 2023

The author considers the impact of the US Foreign Account Tax Compliance Act on Dutch investment funds investing in securities.
Tax Rulings in Poland
Authors: Kanczew M.
Published: December 2023

In this article, the author examines the procedures in Poland with regard to both individual and general tax rulings, highlighting both the strengths and weaknesses of the Polish regime, as well as its role in tax planning.
France Adopts Tax
Measures to Promote Islamic Finance
Authors: Delaigue Bertrand , Reillac Antoine
Published: December 2023

This note outlines the recent changes introduced by
France to encourage the provision of Islamic Finance.
Conference Report: Tax Treaty Arbitration
Authors: Buriak S. , Miladinovic A. , Van West J-P.
Published: December 2023

In July 2018, the Institute for Austrian and International Tax Law hosted its annual Rust Conference. The participants from more than 40 countries discussed recent developments in respect of tax treaty arbitration, which was the topic of the conference. This article summarizes the main discussions during the conference and provides an overview of their outcomes.
Is Taxpayer Privacy Being Compromised in Hong Kong?
Authors: Law B.
Published: December 2023

This article examines the protection of privacy for Hong Kong taxpayers and the extent to which taxpayer privacy is being compromised as financial institutions are forced to comply with the US Foreign Account Tax Compliance Act and, more recently, the Standard for Automatic Exchange of Financial Account Information in Tax Matters.
Restrictions on Interest Deductions and Tax Treaties
Authors: Arnold B.J.
Published: December 2023

In this article, the author discusses restrictions on tax deductions for interest in relation to tax treaties, with special reference to the new provisions introduced in the OECD Model (2017) and the UN Model (2017).
Value Creation: A Dimming Lodestar for International Taxation?
Authors: Kysar R.M.
Published: December 2023

The author, in this article, considers the possibly declining significance of the taxation of value creation in relation to international taxation, primarily as reflected in the OECD/G20 Base Erosion and Profit Shifting Project.
Two Paths for Developing Controlled Foreign Corporation Rules in China
Authors: Yang Y.
Published: December 2023

In this article, the author discusses the different international tax policy considerations for outbound investments and inbound investments in China. In particular, the author argues that the current rough and broad-based controlled foreign corporation rules, together with their light enforcement, are best for China.
Consistency versus “Gold Plating”: The EU Approach to Implementing the OECD Pillar Two
Authors: Dietrich M. , Golden C.
Published: December 2023

This article considers the proposed EU Directive to transpose the OECD Global Anti-Base Erosion (GloBE) Model Rules into EU secondary law. It describes the key aspects of the rules, notes the differences between the EU proposal and the OECD Model Rules, and demonstrates how the new charging provisions will operate.
Some Recent Cases
from the European Court of Human Rights
Authors: Baker Philip
Published: December 2023

This article examines some recent cases of the
European Court of Human Rights on various indirect and direct tax matters. The
two cases discussed here relate to the denial of VAT input tax deductibility,
where the supplier has failed timely to pay over the VAT, and the repercussions
of the Yukos affair in Russia.
Social Security and Pensions Systems
Authors: Surahmat R.
Published: December 2023

This comparative survey aims to provide readers with an understanding of the social security and/or pensions systems in China, India, Indonesia, Japan, Korea (Rep.), Malaysia, Singapore and Thailand.
Report on the ILA Study Group on International Tax Law Seminar “Public International Law and Taxation” held on 11 October 2019 in Luxembourg
Authors: Miller R.
Published: December 2023

This note briefly introduces the ILA Study Group on International Tax Law, followed by a report on an invitational seminar on public international law and taxation, organized by the Study Group in October 2019 in Luxembourg.
Value Creation: A Guiding Light for the Interpretation of Tax Treaties?
Authors: Martín Jiménez A.J.
Published: December 2023

“Value creation” was introduced into OECD/G20 BEPS Actions and debates with an ambiguous and controversial meaning, which may not be compatible with tax treaties. This article explores the problems this principle creates in formulating a sound international tax policy and in the process of tax treaty interpretation and application.
International Trade in B2B Services under VAT/GST Law and the Role of Permanent/Fixed Establishments: A Comparison of EU VAT and Singaporean GST in the Light of the OECD VAT/GST Guidelines
Authors: Spies K.
Published: December 2023

Due to the increasing global trade and importance of VAT/GST for state revenues, the interaction of domestic VAT/GST systems receives more and more attention. Cross-border B2B supplies of services are one of the major areas where conflicts of jurisdiction and tax planning structures can arise. This article examines and compares the EU VAT and Singapore GST system on B2B services in the light of the principles adopted in the OECD International VAT/GST Guidelines.
GCC VAT - International Goods
Authors: Hull H. , Scalia R.
Published: December 2023

In this article, the authors focus on the international supply of goods in GCC member states. This includes the VAT treatment of the import of goods into GCC markets, the export of goods from GCC markets, as well as intra-GCC supplies. In order to address these subjects, the authors rely significantly on the GCC VAT Agreement, the GCC Customs Union Law and implementing rules. The authors also explore how Saudi Arabia and the United Arab Emirates have addressed the VAT treatment of the international supply of goods within their legislation, executive regulations and administrative practice.
Split Payments in VAT Systems – Is This the Future?
Authors: Prätzler R.
Published: December 2023

During the last years, several countries, including Member States of the European Union, have implemented “split-payment systems” in their VAT laws. In this article, the author discusses the background and objectives of split-payment systems and analyses their respective advantages and disadvantages.
First Danish Ruling on Beneficial Ownership
Authors: Riis A. , Bjørnholm N.
Published: December 2023

On 16 April 2010 the Danish Tax Tribunal published the first Danish decision that considers in detail the concept of beneficial ownership under Danish law. The Tribunal, in finding in favour of the taxpayer, provides insight into the tax authorities’ approach to beneficial ownership requirements and offers guidance on the Tribunal’s emphasis in deciding on the scope of application of the beneficial ownership concept as a means of preventing abuse.
The 2016 European Commission VAT Action Plan: Weaknesses of a Clearing System and Possible Alternatives
Authors: Amand C.
Published: December 2023

The European Commission VAT Action Plan suggests taxing intra-Community supplies of goods at the rate of the country of destination: the supplier would remit the VAT to his tax authorities, which in turn would transfer the tax collected to the tax authorities of the country of destination. Such a system is an extension of the one-stop shop regime applicable to e-services in place since 2003 and 2015 and it presents similarities with the proposal of taxation in the country of origin submitted by the Commission in 1987. At that time, this proposal was rejected because it required trust between tax authorities, caused currency exchange problems and gave financial advantages to a few large export Member States. The author suggests that these objections are still valid in 2016 and that they are specifically linked to the clearing system. A possible alternative would be to tax intra-Community transactions without clearing. Today, this is possible thanks to the various improvements in the European VAT system since 1991.
Tackling VAT Fraud
Authors: Walpole M.
Published: December 2023

VAT fraud is a global phenomenon that can involve vast sums of money.
Some of the measures aimed at combating VAT fraud undermine the fundamental
design features of the tax, whereas others do not. In this article, the author
gives an overview of various anti-fraud measures and supports the adoption of
specific measures and recommends abandoning others.
The Confluence of Tax Law, Administrative Law and Public Policy
Authors: Morrison J.A.B.
Published: December 2023

In this article the author addresses the confluence of tax law and administrative law with respect to the duty to provide reasons. He further delves into the intricacies of the general sales tax (GST) regime in Belize and the public policy considerations which undergird it. The case of reference is UC Trading Company (2021). In the author’s view, this case is of great import to Caribbean businesses and tax administrators alike as it clarifies such fundamental legal principles as the duty to give reasons and the right to claim input GST credits. The case will certainly influence future interactions between businesses in Belize and the GST Department, particularly in the realm of tax assessment.
Casenote – Pre-1985 Tax Treaties: Who Can Tax the Capital Gain?
Authors: Brittingham M. , Henderson S.
Published: December 2023

The recent Australian decisions of Virgin
Holdings and Undershaft are examined. In these
cases, Australia’s Federal Court has denied Australia the exclusive right to
tax capital gains under pre-capital gains tax treaties.
The Debt-Equity Conundrum - A Prequel
Authors: Blessing P.H.
Published: December 2023

The author, in this article, provides background and a brief overview of various perspectives in dealing with one of the most globally significant tax issues. In this regard, he draws on historical, legal, financial and economic sources, outlines policy concerns and broadly summarizes certain suggested reforms that have been proposed.
Tax Treaty Case Law News
Authors: Arnold B.J.
Published: December 2023

This is the first in a new feature in the Bulletin for International Taxation, in which Brian Arnold comments on important developments regarding treaty cases, specifically, on two UK cases dealing with hybrid entities and non-discrimination, a Spanish Supreme Court case, and a French case involving the permanent establishment concept.
The Fine Line between Anti-Abuse Measures and the Delimitation of a Member State’s Tax Jurisdiction: The Italian Case
Authors: Bardini C.
Published: December 2023

This article analyses and compares the Italian controlled foreign companies regime and the deemed tax residence rules from an EU law perspective. Under these provisions, the Italian tax jurisdiction is extended to income and to taxpayers ordinarily falling outside its scope. The author suggests that recognizing the anti-abuse purpose of such extension, easily confused with the Member State’s right to unilaterally define its taxing powers, is a key step in questioning the compatibility of both rules with settled ECJ case law.
Theoretical Underpinnings and Practical Considerations in Taxing Excess Profits
Authors: Sehra S.V. , Tiwari A.
Published: December 2023

This article critically examines the existing literature on taxation of excess or supernormal profits of large multinationals and calculates excess profits in India with special reference to the pharmaceutical sector. It concludes with policy recommendations on taxing excess profits using an allowance of capital employed approach.
African Experiences of a Dutch Bank Aiming for the Rural Masses
Authors: Verbeek K.
Published: December 2023

The author discusses the experiences of Rabobank’s expansion into the African continent, including challenges faced and opportunities available.
Ruling on Applicability of Transfer Pricing Provisions to Situations Where No Income Arises under the Income Tax Act
Authors: Jhabakh P.R.K.
Published: December 2023

In its recent judgment in the Vijai Electricals Ltd case, the Income Tax Appellate Tribunal considered the applicability of transfer pricing provisions in situations where no income can be said to arise under the Income Tax Act, 1961.
Taxation Aspects of Mergers and Acquisitions
Authors: Cabrera A. , Limbo G.M.
Published: December 2023

The authors provide a succinct overview of the key tax issues that arise in merger and acquisition transactions from the perspective of both the purchaser and vendor entities.
Supreme Court Decides Case on the Application of Danish Law to an Advancement from a UK Trust
Authors: Qviste J.
Published: December 2023

The Danish Supreme Court recently decided a case concerning the application of Danish tax laws to an “advancement” from an English trust. The author, who represented the taxpayer before the Eastern High Court and the Supreme Court, outlines the case in detail and comments on the court's findings.
Taxation of Investments on the Brazilian Capital Market: New Tax Incentives and Recent Changes
Authors: Rubinstein F. , Samaha S.
Published: December 2023

This article provides an overview of recent tax incentives and changes to tax rules for investments on the Brazilian capital market.
Canada and BEPS: A Progress Report
Authors: Wilkie J.S.
Published: December 2023

The author considers how the OECD’s BEPS project may relate to the Canadian government’s 2015 federal budget. He also looks into Canada’s evolving tax policy in relation to issues commonly associated with BEPS, even in the absence of specific Canadian tax law responses, so far, to BEPS.
The Proposed Controlled Foreign Company Regime
Authors: Sanghvi S. , Shaktawat R.
Published: December 2023

India is planning to introduce controlled foreign company rules as part of its tax reform proposals. This article provides a detailed description of the rules as proposed in the Direct Taxes Code Bill.
Partnerships – Are We There Yet?
Authors: Walker John
Published: December 2023

This article is based on a paper presented at the Baker & McKenzie 30th Annual Asia-Pacific Tax Conference held in Hong Kong from 13-14 November 2014. The 31st Annual Asia-Pacific Tax Conference is to be held in Singapore in November 2015.
The State of VAT Harmonization in the SADC
Authors: Letete P.
Published: December 2023

The 15 member states of the Southern African Development Community had
the ambition to fully integrate their economic and monetary systems within a
couple of years. However, as the author discusses in this article, there are a
couple of bumps in the road to full economic and monetary
integration.
Seeking Certainty – Advance Ruling Practices
Authors: Quek D. , Tan J. , Wan E.
Published: December 2023

The comparative survey articles are based on selected papers presented
at the Baker & McKenzie 29th Annual Asia-Pacific Tax Conference held in
Singapore on 29 and 30 October 2013. The 30th Annual Asia-Pacific Tax
Conference is to be held in Hong Kong in November 2014. For more information,
please contact Liane Tsang of Baker & McKenzie, Hong Kong by tel.: +852
2846 2358 or by e-mail: liane.tsang@bakermckenzie.com.
Answering Eight Key Questions about Transfer Pricing during the COVID-19 Era
Authors: Garcia Berdonce J. , Chand V. , Ditz X.
Published: December 2023

This article analyses the impact of the COVID-19 crisis on transfer pricing matters in the form of eight key questions. Several practical examples are discussed throughout the article to make the discussions more concrete. The analysis also takes into account the OECD’s recent guidance on this topic.