Global News
Transfer Pricing Contributes Nearly £6 Billion To UK Tax
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September 19th, 2017
HMRC published the 2016/17 Transfer Pricing and Diverted Profits Tax Statistics, which shows the latest statistics data. The Transfer Pricing rules and the Diverted Profits Tax are important elements in a range of measures to make sure multinationals pay the right amount of tax on the share of their profits deriving from the UK.
EU - Oncoming Tax Rules On Digital Economy
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September 19th, 2017
The ministers of EU Member States reached a consensus on amending the existing international tax rules to plug the evasion of digital economy during the informal meeting of the EU Finance Ministers in Tallinn. Before the meeting, several Member States had proposed to update the taxing rules to collect a fair share from the digital giants, such as Estonia and the G4 countries .
Dutch Decree To Update Conditions For Business Reorganisation
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September 19th, 2017
The Dutch Ministry of Finance issued Decree No. 167217 to amend standard conditions for business re-organisations, including business mergers, legal divisions and legal mergers.
Brazil-Argentina Treaty - Interpretation on Exemption of Dividend in Brazil
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September 14th, 2017
The Brazil Government published the Ruling 400/2017. The Ruling clarified that the exemption of dividend under Art.
Ireland - Corporate Tax Keeps Growing with Tax Rate Unchanged
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September 14th, 2017
A Government-commissioned report on the Irish tax scheme following the Apple Tax Ruling from the European Commission has been released. The report is given by economist Seamus Coffey, the chairman of the Government’s Fiscal Advisory Council.
OECD Report Releases Global Taxation Trends
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September 13th, 2017
On September 13, 2017, the OECD is released a new report on the worldwide tax reforms. This report is the second edition of the annual publication Tax Policy Reforms: OECD and Selected Partner Economies .
Four Countries Ask EU To Take More Effective Measures To Plug Tax Evasion By Digital Economy
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September 13th, 2017
On September 9, Finance Ministers of France, Germany, Italy and Spain jointly issued a political statement. In the document, the Member States appealed the European Commission to take more effective measures to plug tax evasion by digital economy.
The UN Publishes New Handbook on Developing Countries’ Tax Base
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September 12th, 2017
UN has published a new Handbook on several selected issues to assist developing countries to guard their tax base and strengthen their capacity to gather domestic revenue. The Handbook is the fruit of a project undertaken by the Financing for Development Office on the basis of draft papers discussed at a workshop in June 2014 in New York and in September 2014 in Paris.
EU Plans Rule Change - Online Tech Giants To Be Taxed Where They Create Value
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September 7th, 2017
The Estonian presidency of the EU released a document prepared for the meeting of the EU Finance Ministers on September 15, 2017 in Tallinn, Estonia. The meeting will discuss how to plug evasion by digital multinationals, and the document alleged that the current legal framework should be amended as it in effect favors digital companies.
UK - Extension Of Deadline On Trusts Tax Planning Register
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September 7th, 2017
HM Revenue & Customs (HMRC) has extended its time constraint on the registration of trusts for money laundering supervision. The previous deadline of October 5, 2017 is extended to December 5, 2017.
France - Second Highest Tax Bill To Be Paid By Tech Giant
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September 6th, 2017
The French Microsoft subsidiary received a notification from the French tax competence. The multinational was required to pay a 600 million euros bill in France for its activities regarding online advertising and search engine.
EU Notice on Freedom of Capital: Commission vs. France Published
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September 6th, 2017
The Action (2017/C 293/27) brought on July 10, 2017 by the European Commission versus the French Republic has been published in the Official Journal of European Union. The Action was about a French national provision on tax treatment of dividends, which the Commission finds discriminatory and may restrict the free movement of capital.
BRICS Countries Announced to Plug Evasion
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September 6th, 2017
The leaders of Brazil, Russia, India, China and South Africa met at the ninth BRICS Summit and jointly issued the BRICS Leaders' Xiamen Declaration. The declaration discussed international and regional issues of common concern, including facilitating tax cooperation to plug evasion and provide technical assistance regarding tax governance.
Self-assessment Of Tax Risk By MNEs With A Centralised Business Model - A New Tax Screening Tool Developed By The ATO
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September 1st, 2017
In early 2017, the Australian Tax Office (‘ATO’) released a guideline, setting out a compliance approach to assess the transfer pricing outcomes based on self-assessment of tax risks in existing and newly created offshore centralised operating models (‘hubs’). This guideline is applicable from 1 January 2017 to hubs performing a wide range of activities such as the marketing, sale, distribution and procurement of goods and commodities as well as financial services.
Luxembourg - Legislation On Mutual Agreement Procedure
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August 31st, 2017
Luxembourg issued a Circular (L.G. - Conv. D.I. n° 60) on procedures for the implementation of the Mutual Agreement Procedure (MAP) for bilateral tax treaties concluded by Luxembourg.
Scope and Access .
Ecuador - Amendments on Withholding Tax Rates
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August 31st, 2017
the Ecuadorian Internal Revenue Service published a resolution to amend the previous resolution on the income tax withholding rates at source. The new resolution comes into force since its issue.
UN Appoints 25 Members To The Committee Of Experts On International Cooperation In Tax Matters
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August 30th, 2017
The Committee of Experts on International Cooperation in Tax Matters comprised 25 members nominated by Governments and acting in their personal capacity. The members are drawn from the fields of tax policy and tax administration and selected to reflect an adequate equitable geographical distribution, representing different tax systems.
Belgian DTAs With Mexico And Uruguay Enter Into Force
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August 29th, 2017
The Belgian Ministry of finance issued a press release, announcing that the Protocol amending the existing Belgian – Mexican Double Taxation Agreement (DTA) entered into force on August 19, 2017. At the same time, Belgian Ministry of finance announced that the DTA between Belgium and Uruguay entered into force on August 4, 2017.
ATO Aims At Big Pharmaceuticals
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August 29th, 2017
Deputy ATO commissioner Mark Konza told Parliament that ATO's ongoing corporate investigations are looking at companies in the pharmaceutical industry. ATO has already interviewed between 30 and 40 employees in one of the large pharmaceutical companies and has launched another 12 audits of big pharma companies.
Tech Giant Reaches Undisclosed Settlement With Australian Tax Office
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August 25th, 2017
Microsoft announced this week that it has settled the Australian tax audit. At the same time, Apple's managing director informed that the five-year audit by the ATO has been concluded with no penalty imposed.
US Court Rules IRS Lawfully Denied Discretionary Tax Treaty Benefits
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August 25th, 2017
On August 14, the United States District Court for the District of Columbia ruled in Starr International Company, Inc. v. United States case that the Internal Revenue Service (IRS) was not arbitrary or capricious in finding at least one of the taxpayer’s principal purposes for moving its residency to Switzerland was to obtain tax benefits under the US-Swiss Treaty.
China - New Measures to Boost Foreign Investment
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August 22nd, 2017
On August 16, 2017, China’s State Council issued a notice (Guo Fa [2017] No.39) on measures to boost foreign investments.
Singapore - A Positive Response to Digital Economy (GST)
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August 22nd, 2017
During the SMU-TA Centre for Excellence in Taxation Conference on August 17, Ms. Indranee Rajah, Senior Minister of State for Law and Finance, announced the state’s resolution on revising its Goods and Services Tax (GST) of digital economy and future policy orientation.
EU Releases a Taxation Paper on R&D Under a CCCTB
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August 17th, 2017
An assessment of R&D Provisions under a Common Consolidated Corporate Tax Base written by Diego d’Andria, Dimitris Pontikakis and Agnieszka Skonieczna has been published by the European Commission in its Taxation Papers publications. The outcomes of the paper conclude that the CCCTB without an R&D incentive would significantly deteriorate incentives to invest in R&D.
France and Germany Target US Home-Sharing Platform Giant
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August 15th, 2017
Airbnb faces EU clampdown for not paying 'fair share' of tax as France and Germany initiate a new European Union fight to force home-sharing platforms to pay more tax. The French finance minister Bruno Le Maire said Airbnb’s low tax bill was “unacceptable”.
US Tech Giants Will Face Tax Clampdown from France and Germany
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August 10th, 2017
France and Germany and other partners have paired up to secure loopholes allowing U.S. tech giants such as Alphabet Inc.’s Google, Apple Inc., Facebook Inc. and Amazon.com Inc. to reduce taxes and take hold of market share in Europe, at the cost of European companies.
Cyprus - New Transfer Pricing Rules on Intra-Group Loan
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August 10th, 2017
Cyprus Tax Department has published a new circular regarding detailed transfer pricing rules which came into force on July 1, 2017. The new rules replaced the existing rules to determine the tax base of the “back-to-back” intra-group loan on the basis of a minimum margin.
Argentina - Brazil Tax Treaty: Latest Revision
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August 10th, 2017
Argentina and Brazil signed a protocol on several significant amendments on the bilateral tax treaty between the two countries during the Mercosur Summit. The new version, however, is not in force yet, as future feedback from the public may be needed.
UK Not to Become A Tax Haven
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August 2nd, 2017
In an interview with French newspaper Le Monde, Chancellor Philip Hammond has said the UK will not reduce taxes or regulations to become a tax haven in a bid to compete with European rivals after Brexit .
Background .
BRICS Agree on Memorandum of Cooperation in Tax Matters
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August 2nd, 2017
During the annual meeting of the heads of the BRICS revenue administrations held in Hangzhou on July 28, tax officials from Brazil, Russia, India, China and South Africa signed a memorandum of cooperation to enhance their mutual work on international tax matters.
Background: International Taxation .
US Border Tax Proposal Denied
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August 2nd, 2017
On July 27, a proposed controversial border-adjusted tax proposal was denied in the House of Representatives. In a released statement, the officials informed that the goal of a tax reform is to reduce tax rates “as much as possible,” but the details yet remain unclear.
Research: The Netherlands Is The Main Channel For Corporate Tax Avoidance
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July 27th, 2017
Almost 40% of corporate investments channeled away from authorities and into tax havens travel through the UK or the Netherlands, according to a study of the ownership structures of 98m firms. The Netherlands was a conduit for 23% of corporate investments that ended in a tax haven, while the UK accounted for 14%, ahead of Switzerland (6%), Singapore (2%) and Ireland (1%).
India - ‘Capital Gains’ Taxation Affair With The Netherlands
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July 27th, 2017
Andhra Pradesh High Court has concluded that gains arising from a Dutch company’s sale of shares of an Indian immovable property company to a Singapore company do not amount to a sale of immovable property situated in India since India-Netherlands tax treaty exempts such transaction.
Background .
Saudi Arabia To Be The First GCC Country to Implement VAT In 2018
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July 25th, 2017
Saudi Arabia has issued draft implementing legislation and implementing regulations in preparation of the 1 January 2018 launch of Value Added Tax, VATlive informes. It is based on the Gulf Co-Operation Council (GCC) VAT Treaty, which provides broad guidance on the VAT regime to be introduced in 2018 in all 6 GCC states.
Ireland Launches Apple State Aid Recovery Procurement Process
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July 25th, 2017
The Irish Ministry of Finance announced the launch of the procurement process in relation to Apple state aid recovery. The Department of Finance also revealed that funds may be higher than initial €13bn estimate.
Cyprus Adjusts Tax Treatment Of Intra-Group Financing Arrangements
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July 25th, 2017
On July 21, the Cypriot Ministry of Finance informed that the Commissioner of Taxation has issued a Circular for the tax treatment of intra-group financing arrangements. This follows constructive contact with the European Commission's Directorate General for Competition.
India - A Further Step On Tax Info Exchange To Tackle Evasion
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July 21st, 2017
The Indian Finance Ministry announced that India had taken part in the global joint task force meet to discuss the information exchange issue with other countries as a follow-up work on the Panama Papers.
Collaboration with the JITSIC .
Cayman Islands - Reinforcing Financial Services
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July 21st, 2017
Cayman's Minister of Financial Services, Tara Rivers, made her first visit to London to meet UK officials and industry leaders addressing its position on Brexit, beneficial ownership, and the EUs work on blacklist of non-cooperative jurisdictions, Cayman iNews reported on July 19.
Reinforcing The Strength Of Cayman's Financial Services .
EU Consults The Public On Customs Information Exchange With 3rd Countries
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July 21st, 2017
The European Commission opened a consultation to all interested parties on exchange of customs related information with third countries. This view seeking will continue until October 16, 2017.
Switzerland To Exchange Information with Singapore
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July 18th, 2017
Switzerland announced that it has signed an agreement on the automatic exchange of information with Singapore. On the same day, a working meeting of the Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum) has started in Geneva.
New Zealand Might Implement A Diverted Profits Tax
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July 18th, 2017
New Zealand's Labour party informed that, in order to fight against tax avoidance of multinational companies, it aims to introduce a diverted profits tax (DPT) which would collect an extra $600 million from multinationals over three years.
Implementing the Diverted Profits Tax .
ECOFIN - Process On Modernizing VAT And Intermediaries
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July 13th, 2017
On July 11, an Economic and Financial Affairs (ECOFIN) meeting was held in Brussels. Priorities were given to the Estonian presidency as concerns economic and financial affairs.
French Minister Of Finance Calls To Pressure MNEs
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July 11th, 2017
French finance minister Bruno Le Maire said that the European Union should finally make US multinationals, such as Google, Amazon and Facebook, pay their fair share of taxes. "Since we have to deal with Mr Putin, Mr Trump or Mr Erdogan, it's time for Europe to pull itself together and defend its own interests," he said.
Dutch Government Opens Consultation On ATAD1
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July 11th, 2017
The Dutch Government opened a public consultation on a proposal that aims to implement the Anti Tax Avoidance Directive (ATAD1) in Dutch national law. ATAD1 aims to provide minimum harmonization to protect the tax base with a possibility to go beyond the minimum standard in the next stage.
OECD Report On Boosting Taxation Efficiency And Fairness
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July 6th, 2017
The latest report of July 2017 has been submitted by the OECD Secretary-General Angel Gurría to G20 Leaders. The report consists of two parts, covering issues such as closing down loopholes, improving transparency, matching tax due with economic activities, etc.
EU Commission Concludes Polish Tax On Retail In Breach Of EU State Aid Rules
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July 5th, 2017
The European Commission informed that a Polish tax on the retail sector is in breach of EU state aid rules. The Commission concluded that the progressive tax rates based on turnover give companies with low turnover an advantage over their competitors.
OECD: Progress And Facilitation On International Tax Transparency
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June 29th, 2017
The OECD informed that on the request of G20 countries, the Global Forum on Transparency and Exchange of Information for Tax Purposes is to provide a list of non-cooperative jurisdictions for the G20 Leaders Summit in Hamburg in July 2017.
Improvements in compliance with the EOIR standard .
EU Commission Promotes Tax Fairness
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June 29th, 2017
At the 2017 Tax Fairness Conference in Brussels, Pierre Moscovici (EU Commissioner for Economic and Financial Affairs, Taxation and Customs) said that the realization of tax fairness is to be supplemented with anti-abuse rule on EU level, the support of tax transparency, reasonable allocation of tax base, and cooperation on anti-avoidance among jurisdictions.
Principles Concerned Tax Policy .
Korea's NTS Chief Nominee Pledges To Tackle Tax Evasion
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June 27th, 2017
Korea's National Tax Service (NTS) Chief Nominee Han Seung-hee vowed to tackle tax evasion by multinational firms by ensuring successful implementation of comprehensive reporting system for international transactions. He also promised to strengthen investigations of "intelligent tax-dodging practices" of foreign multinationals, the local news reported.
EU Member Countries Object To Proposed VAT Reductions
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June 22nd, 2017
In a summary sent to the Dutch House of Representatives, the Dutch Minister of Finance provides further insights on developments from the EuroGroup meeting of June 15 and the ECOFIN Council of June 16, International Tax Plaza informed. During the meeting, certain countries objected to VAT reduction for electronic publication as well as to reverse charge mechanism .
US Administration To Come Up With A Decision Over Tax Avoidance
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June 22nd, 2017
President Donald Trump and Republican leaders in Congress are addressing profit-shifting schemes that involve transfer pricing, earnings stripping and tax inversions. According to Reuters, a decision on on how to handle these in tax legislation could be announced already in June.
European Commission Introduces Indicators for Intermediaries to Report Tax Evasion
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June 22nd, 2017
The European Commission has proposed new transparency rules for intermediaries that design or sell potentially harmful tax schemes. Under the new rules, intermediaries will have to report any cross-border arrangement containing given characteristics that would indicate tax avoidance.
Swiss Council Adopts Dispatch On AEOI With 41 States And Territories
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June 21st, 2017
The Federal Council adopted the dispatch on the introduction of the automatic exchange of financial account information (AEOI) with 41 states and territories. At the same time, Swiss banks informed they will keep a close watch on data protection measures taken by countries.
PoEM Rules - The Indian Government Issues A Draft Notification For Comments
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June 19th, 2017
Recently the government vide draft notification dated 15 th June, 2017 provided exceptions, modification, and adoption in respect to PoEM rules on which comments and suggestions from the general public are invited.
The concept of Place of Effective Management in India (“PoEM”) was introduced in Finance Act, 2015.
Hong Kong To Exchange Information (AEOI) With Indonesia
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June 17th, 2017
Hong Kong has signed an agreement with Indonesia for conducting automatic exchange of financial account information in tax matters (AEOI). Following the agreement with Indonesia, Hong Kong now has 13 AEOI partners.
Indonesia Reaches Tax Settlement With Google
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June 15th, 2017
On June 13, Indonesian Finance Minister Sri Mulyani Indrawati informed that Indonesia has reached a tax settlement with Alphabet Inc's Google for 2016. This follows an ongoing dispute over allegations that Google avoided paying tax for its advertisement activities.
Eight Countries Discuss Cooperation In Risk Assessment
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June 9th, 2017
The OECD International Tax Conference sponsored by the OECD, USCIB, and BIAC was hosted in Washington, DC. The annual conference allowed the USA business community to interact with key representatives from the OECD Tax Officials.
Multinationals Alter Tax Plans Over U.S. Tax Reform
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June 6th, 2017
A new research provided by Taxand that is based on 136 interviews with financial officers and tax directors concluded that more than half of multinationals have altered their tax plans, or delayed decisions, due to the tax reforms in the U.S.
Background: Trump's Tax Plan .
HMRC Carried Out Over 360 Transfer Pricing Reviews
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June 6th, 2017
According to research from the law firm Pinsent Masons, HMRC launched 362 reviews into business transfer pricing in 2015/16. The amount potentially under dispute reached £3.
South Africa - Draft Notice To Submit CbC, Master File And Local File Returns
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June 2nd, 2017
On 2 June 2017, the South African Revenue Service (“SARS”) has published a draft public notice requiring the submission of country-by-country (“CbC”), master file and local file returns. This marks an important step towards the finalisation of South Africa’s transfer pricing documentation requirements.
Rocha Andrade Defends Legality Of Madeira’s Free Trade Zone
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June 1st, 2017
On May 30, the European Parliament held a hearing with Fernando Rocha Andrade, the Portuguese Secretary of State of Tax Affairs, addressing Portugal’s approach in the fight against money-laundering, tax evasion and tax avoidance. Andrade had to defend the legality of Madeira’s free trade zone arguing it functions within EU rules.
CJEU - Question Dividend Withholding Tax To Non-Dutch Investment Funds
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May 31st, 2017
The Official Journal of the European Union published two requests for preliminary rulings of the Court of Justice of the European Union (CJEU). The requests question rejection of investment funds established outside the Netherlands on the ground that it is not subject to an obligation to withhold Netherlands dividend tax.
India: Pharma Companies Questioned Over Transfer Of IP Assets To Offshore Subsidiaries
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May 31st, 2017
Reserve Bank of India is questioning pharma companies operating in India over the transfer of their intellectual property (IP) assets to offshore subsidiaries. The central bank is looking at ways the foreign subsidiaries have raised loans abroad to pay for the intellectual property assets transferred to them, the Economic Times reported.
EU Council Agrees Its Position On Dispute Resolution Procedures
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May 29th, 2017
The EU Council agreed on a new system for resolving double taxation disputes within the EU. The Council reached compromise on the scope of the directive, 'independent persons of standing' and standing committee.
OECD Seeks Feedback on Hard-To-Value Intangibles Guidance
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May 23rd, 2017
OECD invited interested stakeholders for public comments on a discussion draft which provides guidance on the implementation of the approach to pricing transfers of hard-to-value intangibles described in Chapter VI of the Transfer Pricing Guidelines.
Background: Hard-to-value Intangibles .
US to Consult Destination-Based Taxation And Border Adjustments
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May 23rd, 2017
The House Committee on Ways and Means published a document prepared by the staff of the Joint Committee on Taxation that provides an overview and analysis of destination-based taxation and border adjustments. The document has been published ahead of a public hearing on border adjustments and international tax reform that takes place on May 23.
Schelling - Agreement On A European Tax On Financial Transactions Is Within Reach
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May 23rd, 2017
On May 21, during the interview with Austrian broadcaster ORF, Austrian Finance Minister Hans Joerg Schelling said that an agreement on a European tax on financial transactions is within reach as more countries sign up for the final version of the measure and the new French government gives it a final review, Reuters reported.
Background .
EU Commission Requests France To Abolish Certain Withholding Tax
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May 18th, 2017
The European Commission released its “May infringements' package: Part 1: key decisions” including Commission’s request to France to abolish withholding tax imposed on non-resident companies in deficit.
Free Movement Of Capital .
The Netherlands Opens Consultation On Dividend Withholding Tax For Holding Cooperatives
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May 18th, 2017
The Dutch Government published a draft law containing new obligation to withhold withholding taxes for so-called holding cooperatives. The Dutch Government invites interested parties to provide their feedback on the draft law.
US Companies Demand Higher Cuts On Offshore Profits
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May 16th, 2017
Major US multinationals push US Government to further deepen the tax break on corporate profits being held offshore. Some of the lobbyists said that in order to bring their corporate profits to the US, they need a sharply reduced tax rate even below the recently proposed reduction to 10 percent, Reuters reports.
Research Paper Provides Perspectives on Corporate Tax Avoidance
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May 16th, 2017
The US academics Jaron Wilde and Ryan Wilson published a paper summarizing the academic perspectives on corporate tax avoidance highlighting the main developments over the last decade.
The Context .
G7 Finance Ministers Address Taxation Digital Economy
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May 16th, 2017
During the meeting on May 12-13 in Italy, G7 finance ministers and central bank governors expressed the need to address the tax challenges associated with the digitalization of the economy. During the event, U.S. Treasury Secretary Steven Mnuchin defended the Trump protectionist tax plan.
Australia Releases Budget 2017-18 Documents
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May 11th, 2017
During the Federal Budget 2017-18, Australian Treasurer Scott Morrison announced that Australia will introduce hybrid mismatch provisions applicable to banks and financial institutions and tighten its multinational anti-avoidance law (MAAL). The Budget documents and a new Black Economy Taskforce interim report have been published.
OECD Launches Facility To Disclose CRS Avoidance Schemes
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May 9th, 2017
The OECD launched a disclosure facility on the Automatic Exchange Portal which allows interested parties to report potential schemes to circumvent the CRS. The OECD also informed that over 1800 relationships are now in place to automatically exchange CRS information between tax authorities.
PANA Questions Channel Islands, Gibraltar, and Madeira
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May 9th, 2017
On May 9, the PANA Inquiry Committee held a public hearing on the “Cooperation in tax matters with European jurisdictions,” during which Members of the EU discussed tax regimes with representatives of the Channel Islands, Gibraltar, and Madeira.
Background .
EU Parliament Releases CCTB and CCCTB Briefings
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May 9th, 2017
The European Parliament informed that it released briefing for the Common Consolidated Corporate Tax Base (CCCTB) Project. The briefing provides background information, information about the proposal and its impact as well as views of advisory committees, national parliaments and stakeholders.
Dutch Railway Company Again Accused Of Tax Evasion
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May 5th, 2017
Dutch railway company NS, which operates services in Germany and Britain, continues to avoid corporation tax through its subsidiary Abellio in Ireland, despite the Dutch government’s warning to abstain from using this tax avoidance scheme, Dutch Newspaper Trouw reported.
Background .
Tech Giants Forced to Book Profit in Australia
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May 2nd, 2017
Recently published financial results of Google and Facebook revealed significantly higher Australian revenue and profit following Australia's implementation of tougher anti-avoidance measures including the Multinational Anti-avoidance Law (MAAL) and the Diverted Profits Tax. The companies acknowledged the new laws contributed towards the large boost in booked revenue.
Russian Federation And Japan Sign New DTA
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May 2nd, 2017
The Government of Japan and the Government of the Russian Federation have agreed in principle on a new Tax Convention.
Previous Tax Convention
European Parliament Adopts Hybrid Mismatch Rules
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May 2nd, 2017
The European Parliament adopted a legislative resolution on a proposal for a Council Directive amending the Anti-Tax Avoidance Directive on hybrid mismatches involving third countries (ATAD 2). The report will be considered for final approval by the European Council.
EU PANA Committee Presents Studies on Tax Evasion
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April 28th, 2017
The EU PANA Committee has presented the findings of three studies focusing on the impact of money laundering and tax evasion on EU Member States’ economies and finances. The Committee also presented the roles played by Member State administrations in fighting tax evasion and money laundering.
Italy Updates Transfer Pricing Rules And Patent Box Regime
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April 28th, 2017
Italy publishes Decree n. 50 that implements changes to its transfer pricing and patent box regime, including arm’s length principle and updated list of intellectual property, MNE Tax Reported.
Arm's Length Principle .
Trump Reveals New Tax Plan
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April 28th, 2017
US president Donald Trump proposed sharp reductions in individual and business income tax rates, reducing the “business tax rate” to 15 percent and moving to a territorial tax system.
Main Proposals .
Transfer pricing in Hungary and Romania
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April 28th, 2017
"A readiness check on whether your Romanian and Hungarian subsidiaries are fulfilling the local transfer pricing requirements"
Transfer pricing is a hot subject for companies operating in Romania and in Hungary. This is because the local tax authorities are focusing more on this topic, with the number of transfer pricing audits increasing significantly in the last few years.
Mossack: The Number Of US Tax-Shelters Increase After Panama Papers
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April 26th, 2017
Juergen Mossack, who partnered with Ramon Fonseca to create the Panamanian firm Mossack Fonseca, said in a document that the number of tax shelters has been decreasing in many tax havens while raising in the US jurisdictions such as Delaware or Nevada.
Panama Papers Adopts Transparency .
EU Releases Study On Impact Of Panama Schemes
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April 21st, 2017
The European Parliament's PANA Committee on Money Laundering, Tax Avoidance and Tax Evasion published a study on the "Impact of Schemes revealed by the Panama Papers on the Economy and Finances of a Sample of Member States." The impact is measured from a financial, economic and budgetary point of view.
France Might Be A New Tax Haven For Investors in India
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April 21st, 2017
During a meeting with financial ministry officials in India, global financial giant Citi pointed out that foreign funds and global banks are taking advantage of India’s treaty with France to escape tax. India might soon review its tax treaty with France to address issuance of participatory notes in France, reports The Economic Times .
Sweden May Force Tax Advisers To Report Clients
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April 18th, 2017
The Swedish finance ministry said in a statement that it has set up a parliamentary commission to examine whether tax advisers should be required to report clients who use tax avoidance structures, International-Adviser informed.
Advisors to Report Clients .
Ghana And Czech Republic Sign Double Taxation Agreement
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April 18th, 2017
Ghana and the Czech Republic have signed a double taxation agreement to prevent fiscal evasion with respect to taxes on income. The countries also agreed on enhancing the mutual assistance in the collection of taxes.
Australian Tax Office Explains Detailed Design Of CbC Reports
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April 18th, 2017
The Australian Taxation Office (ATO) released additional guidance with an overview of the detailed design of the local file / master file. The guidance addresses IT specifications for software developers to use in business management software to enable the generation of a valid XML file.
Tech Giant Slapped By Korea's Tax Agency
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April 15th, 2017
The National Tax Service (NTS) has imposed a US$ 275.74 million fine on Oracle Korea for alleged tax evasion involving tax haven during the period of seven years.
OECD Meets to Discuss VAT Challenges
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April 15th, 2017
On April 12-14, the OECD Global Forum holds its fourth meeting on Value Added Tax (VAT; also known as Goods and Services Tax, under the acronym GST in a number of OECD countries) addressing the policy and operational challenges faced by tax authorities. On that occasion, the OECD published The International VAT/GST Guidelines that were adopted as a Recommendation by the Council of the OECD in September 2016.
UN Releases TP Manual For Developing Countries
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April 13th, 2017
During UN meetings last week, the UN’s Committee of Experts on International Cooperation in Tax Matters released an updated version of the 'United Nations Practical Manual on Transfer Pricing for Developing Countries,' the MNE Tax reported.
Background: UN Committee .
Hong Kong Updates Guidance for Financial Institutions
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April 13th, 2017
The Inland Revenue Department of the Government of Hong Kong released updated versions of Chapters 11 and 12 of the Guidance for Financial Institutions. The changes include the procedures that reporting financial institutions must apply.
Germany Provides Status Update On The 10 Step Plan
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April 13th, 2017
The German Ministry of Finance provided a status update on the 10 step plan, released in April 2016 as a reaction to Panama Papers to combat tax fraud, de­vi­ous tax avoid­ance and mon­ey laun­der­ing, the International Tax Plaza reported.
Background: Schaeuble's 10-Point Plan .
Romanian Transfer Pricing Requirements
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April 6th, 2017
A readiness check on whether your Romanian subsidiary is fulfilling the local transfer pricing requirements.
Transfer pricing is a hot subject for companies operating in Romania.
EU Court To Review German Law Regarding Withholding Tax
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April 6th, 2017
The European Court of Justice has published a request for preliminary ruling filed by Finanzgericht Köln, which challenged German law that denies relief from withholding tax on some distributions of profits made to a nonresident parent companies.
Article 43 EC .
Hong Kong To Exchange Information With Portugal And South Africa
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April 6th, 2017
The Inland Revenue Department of Hong Kong announced that Hong Kong has signed agreements with Portugal and South Africa for conducting automatic exchange of financial account information in tax matters (AEOI).
Background: Hong Kong Support AEOI .
ATO To Recover $2.9 Billion From Seven Multinationals
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April 6th, 2017
On April 6, Australian Treasurer Scott Morrison said that Australia can claim $2.9 billion from seven audits of multinational companies, which are expected to be finalized before July.
Singapore And Ghana Sign DTA
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April 4th, 2017
The Singapore Government announced that it signed an Agreement for the Avoidance of Double Taxation (DTA) with the Republic of Ghana on March 31.
Background
OECD Publishes New Report on Technology Tools
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March 31st, 2017
The OECD published 'Technology Tools to Tackle Tax Evasion and Tax Fraud' report, which provides overview of the technology tools that tax authorities have implemented to address tax evasion and tax fraud.
Technology Tools Report .
European Parliament Agrees on Hybrid Mismatch Amendments
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March 28th, 2017
EU Economic and Monetary Affairs Committee MEPs have voted in favor of amendments on EU’s anti-tax avoidance directive on Hybrid Mismatch with regards to third countries by 44 votes to 0 with 2 abstentions.
Background: Hybrid Mismatch .
Amazon Wins $1.5 Billion Dispute With IRS
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March 25th, 2017
On March 23, Amazon won more than $1.5 billion tax dispute with the Internal Revenue Service (IRS) over transactions involving a Luxembourg unit. The court concluded that the IRS acted in an arbitrary, capricious, and unreasonable manner when it applied a discounted-cash-flow method to a cost-sharing.
Israel Investigates Local Activities of Tech Giants
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March 25th, 2017
The Israel Tax Authority is undertaking an assessment of the activity of Facebook and Google in Israel by collecting information from media companies and customers that work with the Tech Giants. The Tax Authority aims to obtain better understanding of the economic activity and operational methods of Facebook and Google in Israel.
G20 Finance Ministers Address Digitalization And Tax Certainty
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March 21st, 2017
G20 finance ministers and central bank governors met in Baden-Baden (Germany) and called on OECD and the IMF to assess progress in enhancing tax certainty in 2018 and to produce an interim report on the implications of digitalization for taxation by spring 2018. The ministers further addressed developments in the areas of BEPS and Beneficial Ownership Information.
Australian Treasurer Says Tech Giants Are Forced to Pay Tax
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March 21st, 2017
On March 21, Treasurer of Australia Scott Morrison told Parliament that the Australian Taxation Office managed to get Facebook, Google and other multinational companies to pay tax in Australia based on their Australian profits as ATO could use "the power, the resources and the penalties to get the job done."
Facebook And Google Changed Their Tax Arrangements .
ATO Expects Seven Major Multinational Audits Soon
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March 17th, 2017
The Commissioner of Taxation, Chris Jordan, has delivered a speech reflecting on ATO's achievements. He informed that ATO observed positive changes in behavior from taxpayers and advisors, while notifying that at least seven major multinational audits are expected before July.
OECD Announces Further Developments
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March 17th, 2017
OECD announced further developments in international tax co-operation informing about six treaty partners of Hong Kong signing a competent authority agreement, the Global Forum monitoring the implementation of tax transparency standards and Panama depositing its instrument of ratification for the Convention on Mutual Administrative Assistance.
Hong Kong to Exchange Information .
Views On UK Spring Budget
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March 15th, 2017
On March 8, Chancellor Philip Hammond delivered the Spring Budget addressing long-term economic stability, fiscal responsibility, lowering corporate tax rate and fair tax system, among other subjects. Various industry leaders have provided their view on the new measures.
Swiss Federal Council Approved Withholding Tax Changes
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March 15th, 2017
On 10 March, The Federal Council approved the changes to the Withholding Tax Ordinance in order to strengthen the financing activities of groups in Switzerland. The reforms will affect groups in which a Swiss group company provides a guarantee for a bond of a foreign group company.
Singapore To Exchange Information with Belgium and Luxembourg
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March 15th, 2017
On March 10, the Government of Singapore signed Agreements on the Automatic Exchange of Financial Account Information with Belgium and Luxembourg. Luxembourg's Finance Minister Pierre Gramegna pointed out "green finance", alternative investment funds and fintech as the areas to deepen the cooperation with Singapore, and stressed the importance of open financial centers.
The Netherlands Informs About Information Exchange With Iceland
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March 13th, 2017
The Ministry of Finance in the Netherlands published the text of Memorandum of Understanding (MoU) between Iceland and the Netherlands regarding the exchange of information in tax matters.
Information Content .
OECD Global Forum on VAT Meets in April
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March 8th, 2017
The OECD released a draft agenda on the 4th meeting of the OECD Global Forum on VAT, which will take place on April 12-14. The meeting will focus on the policy and operational challenges faced by tax authorities and on the efficient and the effective implementation of the International VAT/GST Guidelines.
India - Advance Pricing Agreements Help Resolving TP Issues
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March 8th, 2017
For the first time, the government may end up resolving about 100 transfer pricing issues by signing advance pricing agreements (APAs) with multinationals this fiscal, people in the know said according to The Economic Times .
Background: APA Program .
EU Collects Information On Member State Practices
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March 5th, 2017
The European Parliament's Committee on money laundering, tax avoidance and tax evasion (PANA) has updated the latest responses obtained from Member States on national definition, practices and methods related to tax evasion, tax avoidance and money laundering. The Parliament obtained 27 responses, awaiting the last reply from Malta.
"UK Corporate Tax Cuts Likely To Fail"
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February 28th, 2017
Following the suggestions of Prime Minister Theresa May and Chancellor Philip Hammond to lower UK corporation tax, concerns were raised by JPMorgan saying that lowering corporate tax rate "would not come close to offsetting the shock of a very hard Brexit," and would only lower UK's corporate tax revenues.
Background .
Singapore DTAs with India and Uruguay Enter Into Force
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February 28th, 2017
On February 27, the Inland Revenue Authority of Singapore informed that the Third Protocol amending DTA with India entered into force on February 27. The new DTA between Singapore and Uruguay will enter into force on March 14.
ATO Publishes Simplified TP Record Keeping Options
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February 24th, 2017
On February 22, the Australian Taxation Office (ATO) released Practical Compliance Guideline outlining simplified transfer pricing record-keeping options intended to minimize the record-keeping for eligible taxpayers.
Purpose of the Guidelines .
The EU Commission Agrees on Hybrid Mismatch Rules
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February 22nd, 2017
On February 21, the European Commission welcomed the agreement reached on hybrid mismatches with regard to non-EU countries. A day earlier, the Council of the European Union has released two documents addressing the general approach and presidency compromise with respect to hybrid mismatches with third countries.
UAE: DTA With Lichtenstein And TIEA With Norway Enter Into Force
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February 22nd, 2017
The Agreement between the United Arab Emirates (UAE) and Liechtenstein for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital enters into force on February 24, 2017. The agreement between the UAE and Norway for the exchange of information relating to tax matters (TIEA) entered into force on February 15, 2017.
EU's Financial Transaction Tax under Siege
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February 17th, 2017
Responding to recent news suggesting that the Financial Transaction Tax (FTT) has lost the support of Belgium and Slovakia (who are concerned over its impact on pension funds), Deputy Laurent Mosar of Luxembourg’s Christian Social People's Party (CSV) called on Luxembourg Finance Minister Pierre Gramegna to clarify the situation.
Background: FTT .
Swiss Voters Reject Corporate Tax Reform In Referendum
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February 15th, 2017
On February 12, Swiss voters blocked the government’s attempts to reform its corporate tax regime by abolishing ultra-low tax rates for multinational companies. Almost 60 percent of voters refused the plans that political and business elite embraced under international pressure.
EU PANA Committee Meets Lawyers, Accountants and Bankers
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February 15th, 2017
During the PANA meeting held on February 9, the committee held a second session on "The role of lawyers, accountants and bankers in Panama Papers", addressing the Scandinavian and German practice. In addition, insights from EU Member States regarding their country specific tax-related crime practices were published.
Australian Government Opens Consultation on Beneficial Ownership Register
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February 15th, 2017
The Australian Government invited interested stakeholders to share their views on the government's plan to establish the Beneficial Ownership Register. The government is seeking views on the details, scope and implementation of a beneficial ownership register for companies.
Australian Proposal Diverted Profits Tax Bill 2017
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February 11th, 2017
The Australian Government introduced a proposal into the Australian Parliament for legislation to implement a new Diverted Profits Tax (DPT). This measure will apply in relation to tax benefits for an income year that starts on or after July 1, 2017.
Ireland's Appeal In The Apple State Aid Case Is Published
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February 7th, 2017
On February 6, the Irish government’s summary of legal proceedings was published in the Official Journal of the European Union. Just one week earlier, Irish Finance Minister Michael Noonan criticized the European Commission's decision at an EU meeting.
Britain’s Overseas Territories Meet To Discuss Brexit
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February 7th, 2017
On February 7, ministers of Britain’s overseas territories met with U.K. officials to discuss the fallout from Britain’s planned exit from the European Union, Cayman Compass informed.
India And Austria Amend DTA
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February 7th, 2017
On February 6, India and Austria signed the protocol for avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
Background .
Japan and Austria Sign New DTA
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February 3rd, 2017
The Japan and Austria signed the Convention for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance.
Background .
EU To Contact US Administration Over Tax Haven Blacklist
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February 3rd, 2017
The United States appeared on the EU draft list of countries perceived as potential tax havens according to the list obtained by Handelsblatt Global . To make the final list of non-cooperative jurisdictions by the end of 2017, American and other tax authorities will be contacted this week by the European Union to clarify certain taxation policy.
ATO Publishes Tax Risk Governance Review Guide
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January 31st, 2017
The Australian Taxation Office (ATO) published a tax risk management and governance review guide that sets out principles for board-level and managerial-level responsibilities and provides examples of design and operational effectiveness of control framework for tax risk.
Background .
Panama Papers - EU PANA Committee Meets to Discuss Tax Avoidance and Evasion
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January 27th, 2017
On January 24 and 26, the Inquiry Committee on the Panama Papers (PANA) held meetings addressing "The role of lawyers, accountants and bankers in Panama Papers" and the "Report on the inquiry into Money Laundering, Tax Avoidance and Tax Evasion". The recordings of the meetings have been published for the public.
EFTA Provides Guidelines On State Aid
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January 23rd, 2017
The EFTA Surveillance Authority (ESA) has adopted new guidelines on when a public measure does or does not involve state aid. The guidelines correspond to similar guidance adopted by the European Commission.
Britain to Leave EU Single Market
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January 20th, 2017
British Prime Minister Theresa confirmed that Britain will leave the EU single market, but will seek to establish a favorable free trade agreement. She stressed that the government is ready to take tax breaks to stay competitive if the EU would insist on punitive tariffs.
ATO Publishes TP Guidelines for Offshore Hubs
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January 20th, 2017
ATO published Practical Compliance Guideline PCG 2017/1 that addresses transfer pricing issues related to centralized operating models involving procurement, marketing, sales and distribution functions.
Centralized Operating Models .
US IRS Issue Tax Regulations On Disregarded Stock In Inversions
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January 18th, 2017
On January 18, the IRS has published final tax regulations and guidance on disregarded stock in inversions designed to fight tax avoidance associated with the inversion. The IRS also requests comments on proposed rulemaking by cross-reference to temporary regulations on Inversions and Related Transactions.
Trump Refuses Republican Border Adjustment Tax Reform
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January 18th, 2017
US President-elect Donald Trump has criticized the border adjustment provision, a feature of the House Republicans' corporate-tax plan, during an interview on January 16.
Border Adjustment .
Belarus and Hong Kong Conclude DTA
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January 18th, 2017
On January 16, Hong Kong and Belarus signed a comprehensive agreement for the avoidance of double taxation (CDTA) to eliminate double taxation with respect to taxes on income and on capital.
Allocation of taxing rights .
Juncker Blocked Secretly EU's Anti Tax Avoidance Efforts
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January 11th, 2017
European Commission President Jean-Claude Juncker faces renewed pressure as the leaked documents show he secretly blocked EU efforts to tackle tax avoidance by multinational companies during his time as Luxembourg's Prime Minister.
Background .
India - Portfolio Investors Shifting Base to Europe
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January 11th, 2017
Due to amended tax treaties with Singapore, Mauritius and Cyprus, Foreign Portfolio Investors (FPIs) are looking to shift their base to European jurisdictions such as France, Spain and the Netherlands, the Economic Times reported.
Tax Treaties .
HMRC Releases Criminal Case Highlights of 2016
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January 11th, 2017
On January 7, the HM Revenue and Customs revealed its top ten most significant fraud and organized crime cases of the last year, together with other statistics from 2016.
2016 Overview .
Argentina Succeeds With Tax Amnesty Programme
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January 11th, 2017
Argentinean Government announced that the country declared $97.842 billion in assets by the completion of a second phase of a broad tax amnesty programme that ended on December 31, 2016.
Colombia's New Anti Tax Evasion Law Not Enough
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January 9th, 2017
Colombia's newly approved tax reform law that imposes higher penalties for tax evasion will still fail to tackle tax evasion according to chief prosecutor. Néstor Humberto Martínez wrote a letter to the Minister of Finance earlier in January, criticizing the insufficient measures.
US Signs FATCA With Belgium And Taiwan
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January 6th, 2017
US Treasury Department informed that it has signed Model 1 FATCA intergovernmental agreement (IGA) with Belgium and a Model 2 FATCA intergovernmental agreement (IGA) with Taiwan.
Background: FATCA .
EU Commission Publishes New State Aid Investigation
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January 6th, 2017
On January 5, the EU Commission published the non-confidential version of the decision to open an in-depth investigation into Luxembourg's tax treatment of GDF Suez (now Engie) that is believed to be in breach of EU state aid rules.
Opening an In-Depth Investigation .
Application Of New Rules Regarding The Mandatory Exchange Of Information On Cross-Border Rulings
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January 4th, 2017
As of 1 January 2017 EU Member States are required to apply the automatic exchange of information on all new cross-border tax rulings that they release.
Application of Council Directive .
IRS And Treasury Officials Meet at International Tax Conference
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December 19th, 2016
At the 29th Annual Institute on Current Issues in International Taxation, held on December 15-16, IRS and Treasury officials discussed recently released regulations on outbound transfers of goodwill, pending EU State aid cases and other related subjects.
Recently Released Documents .
Malta Issues Guidance On Mutual Agreement Procedure
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December 19th, 2016
The Commissioner for Revenue has published guidance issued under the provisions of Article 96(2) of the Income Tax Act on the use of Mutual Agreement Procedure (MAP).
Mutual Agreement Procedure (MAP) .
US Tax - President-Elect Trump Meets Top US Multinationals
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December 16th, 2016
On December 14, top executives of US Multinationals including Amazon, Facebook, Google, IBM, Apple and Tesla met with president-elect Donald Trump at Trump Tower in Manhattan to discuss country's taxation system and tax cuts among other topics such as creation of jobs or country's global competitiveness.
Invited Executives .
The Netherlands - Tax Treaty 2017 Update
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December 14th, 2016
On December 12, the Dutch Ministry of Finance issued a press release informing about its 2017 tax treaty negotiations agenda. The country will start tax treaty negotiations with with Andorra, Liechtenstein and Panama, and continue with other already initiated negotiations.
UK Publishes Draft Guidance on Hybrid Mismatch
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December 14th, 2016
On December 9, The HM Revenue & Customs published draft tax guidance to assist understanding of the application of the hybrids mismatch legislation that comes into effect on January 1, 2017. The HMRC seeks comments on the draft guidance on the hybrids mismatch legislation.
EU Council Adopts New Directives At ECOFIN Meeting
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December 8th, 2016
On December 6, during the ECOFIN meeting the Council of the EU adopted directive granting access for tax authorities to beneficial ownership information. The Council also achieved consensus on a 'hybrid mismatches' draft directive with regards to third countries.
BRICS Countries Enhance Tax Cooperation
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December 8th, 2016
On December 5-6, BRICS Heads of Revenue and Experts on Tax Matters held a meeting in Mumbai during which they enhanced their mutual cooperation in international taxation and their efforts to combat BEPS. The countries reaffirmed their support for the automatic exchange of information and will begin exchanging by 2018 at the latest.
IRS Will Update Rules On Triangular Reorganizations
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December 6th, 2016
On December 2, the US IRS announced that it will issue regulations under Code Sec. 367 to modify the rules relating to the treatment of property used to acquire parent stock or securities in certain triangular reorganizations involving one or more foreign corporations.
Spain Announces Changes in Corporate Taxation
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December 6th, 2016
The Spanish Government announced a new Budget keeping the nominal rate (25%) but implementing additional measures to limit the tax deductibility of certain items of expenditure in order to increase country's revenue.
Tax Measures .
Singapore's MAS Concerned About Global Politics
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December 1st, 2016
The Monetary Authority of Singapore (MAS) released Financial Stability Review 2016, in which it warned against anti-globalization saying that political constraints together with rise of anti-globalization sentiment could impede effective policy-making. The Review further assessed potential risks within global financial market, property industry in Singapore and other related subjects.
Canada Rolling Out A Crackdown On Tax Havens
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November 30th, 2016
The new strategy of Canada Revenue Agency to crack down on tax havens by reviewing every single electronic funds transfer (EFT) of more than $10,000 has delivered 750 audits and 20 criminal investigations.
Background .
Hungarian Parliament Approved 9% Corporate Tax Rate
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November 30th, 2016
Hungarian Parliament has approved the government’s tax package that cuts the corporate tax rate. Following the announcement of Prime Minister Viktor Orbán two weeks ago, the Parliament voted on the measure with 131 MPs in favour, 38 against and 25 abstentions.
Protocol to Singapore-Russia DTA Enters Into Force
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November 28th, 2016
On November 25, the Protocol amending the existing Singapore-Russian Federation Avoidance of Double Taxation Agreement (DTA) entered into force.
Protocol to DTA
OECD Reports Significant Progress on Tax Inspectors Without Borders
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November 23rd, 2016
On November 11, the OECD informed that a significant progress has been made within the Tax Inspectors Without Borders (TIWB) Project that provides assistance to countries on revenue recovery and improving local audit capacity. It currently runs thirteen projects in different countries and several new programs will be launched in the coming year.
European Parliament Approves Automatic Exchange of Bank Data
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November 23rd, 2016
On November 22, Members of the European Parliament voted in favor of the automatic exchange of bank data to track account owners by 590 votes to 32, with 64 abstentions.
Background .
The Netherlands Informs about first CbC Notification Deadline
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November 22nd, 2016
The Dutch State Secretary for Finance informed that it approved the deadline for taxpayers to file the first notification, which has to be done no later than September 1, 2017.
Background .
New Zealand Calls for Excluded Entities and Accounts within AEOI
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November 22nd, 2016
The New Zealand Inland Revenue published a fact sheet summarizing the criteria for financial institutions to categorize entities and accounts as “low risk”, which would allow them to be excluded from due diligence and reporting obligations under the Automatic Exchange of Financial Information (AEOI).
“Low Risk” Excluded Entities .
Cyprus and India Sign New DTA
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November 22nd, 2016
On November 18, the Republic of Cyprus and the Republic of India have concluded a new DTA, which will replace the previous DTA signed on June 13, 1994. The DTA is expected to come into effect in India, in respect of income derived in fiscal years beginning on or after April 1, 2017.
US And India Conclude Terms On Advance Pricing Agreement
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November 18th, 2016
The finance ministry of India informed that India and the US reached a deal on the terms and conditions of the first bilateral advance pricing agreement (APA) that will contribute to a more tax friendly environment for US multinationals. The two countries also resolved 108 pending transfer pricing disputes.
Singapore Agrees to Exchange Information with Canada
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November 18th, 2016
On November 16, Singapore and Canada concluded an Agreement on the Automatic Exchange of Financial Account Information to Improve International Tax Compliance. The two countries will commence the Automatic Exchange of Information under the CRS by September 2018.
Switzerland Plans to Make Fines and Bribes Non-Deductible
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November 17th, 2016
On November 16, the Swiss Federal Council informed that Switzerland plans to disallow companies to deduct financial sanctions with a penal character and bribes for tax purposes. The companies will however still be able to write off illegally gained profits seized by regulators.
UK and Switzerland Terminate Withholding Tax Agreement
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November 17th, 2016
On November 14, the Swiss Federal Department of Finance informed that the withholding tax agreement between Switzerland and the United Kingdom will be terminated on January, 1 2017. On the same day, the agreement between Switzerland and the EU on the automatic exchange of information in tax matters will enter into force.
Saudi Arabia Signs FATCA IGA
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November 17th, 2016
On November 15, Saudi Arabia has signed a Model 1 intergovernmental agreement (IGA) with the United States to Improve International Tax Compliance and to Implement FATCA.
Background .
Luxembourg to See More Economic Activity
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November 11th, 2016
Luxembourg is expected to have an economic impulse as a new unregulated fund product, the Reserved Alternative Investment Fund (RAIF), company law reforms and recent moves of Chinese banks to the country will significantly stimulate the activity in the country.
Brexit Shifts Some Economic Activity .
EU Commission Examines Possible Disincentives for Tax Avoidance Advisors
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November 11th, 2016
The European Commission has launched a public consultation to gather views on whether there is a need for EU action aimed at introducing more effective disincentives for intermediaries or tax payers engaged in operations that facilitate tax evasion and tax avoidance and how such action should be design.
Background: Intermediaries Assisting Tax Avoidance .
UK Signs DTAs With Lesotho And Colombia
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November 9th, 2016
On November 4, HM Revenue & Customs announced that the UK has signed the double taxation agreements with Lesotho and with Colombia. The agreements will enter into force when both countries have completed their legislative procedures and exchanged diplomatic notes.
Global Forum Furthers in International Tax Transparency Work
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November 5th, 2016
On November 2-4, The Global Forum on Transparency and Exchange of Information for Tax Purposes held its annual meeting in Tbilisi, Georgia. The meeting marked the completion of the first round of the Forum’s peer review process.
Saudi Arabia and Uruguay Sign MCAA
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November 4th, 2016
Saudi Arabia and Uruguay signed the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (MCAA) during the 9th Meeting of the Global Forum in Georgia on November 2.
Background: MCAA .
Cyprus, a Post-Brexit Partner to UK Funds Industry
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November 4th, 2016
On November 2, fund managers met in London as the Cyprus Investment Funds Association (CIFA) presented possibilities to use Cyprus’ financial services infrastructure. CIFA positioned itself as potential strategic partner to the UK funds industry due to uncertainty over UK’s ability to export financial services to the European Union following Brexit.
New India-Japan Tax Treaty Comes into Force
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November 2nd, 2016
The Indian Department of Revenue informed that the amended bilateral tax treaty between India and Japan has come into force as of October 29.
The Amending Agreement .
European Commission's Research: EU To Benefit From CCTB & CCCTB
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November 1st, 2016
The European Commission released a report that investigates the economic impact of the common corporate tax base (CCTB) and a common consolidated corporate tax base with formula apportionment (CCCTB) within the EU. The paper concludes that the policy would result in a fairer and more efficient tax system and could have positive impact on GDP and welfare.
Singapore Agrees to Exchange Information with South Africa and Norway
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October 28th, 2016
On October 26, the Inland Revenue Authority of Singapore announced that Singapore has signed agreements for automatic exchange of financial account information (AEOI) with South Africa and Norway.
Automatic Exchange of Information .
EU To Take a Big Step in Corporate Tax Reform
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October 28th, 2016
The EU Commission published the proposals for Common Consolidated Corporate Tax Base (CCCTB) directive, Common Corporate Tax Base (CCTB) directive, the Amendments for Anti-Tax Avoidance Directive and Double Taxation Dispute Resolution Mechanisms.
CCCTB .
UK Might Use Tax Reductions to Put Pressure on the EU
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October 25th, 2016
Britain might slash corporation tax to 10 percent if EU member states block a free trade deal with the UK or block UK-based banks from accessing its market.
Background .
Five New Jurisdictions Will Exchange Country-By-Country Reports
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October 25th, 2016
The OECD announced that Brazil, Guernsey, Jersey, the Isle of Man and Latvia signed the Multilateral Competent Authority Agreement (MCAA) for the automatic exchange of Country-by-Country reports. At the same time, Brazil also signed the CRS Multilateral Competent Authority Agreement‎ (CRS MCAA).
OECD Releases Document on MAP (Action 14)
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October 21st, 2016
On October 20, the OECD released key document that will form the basis of the Mutual Agreement Procedure (MAP) peer review and monitoring process under Action 14 of the BEPS Action Plan. The document was approved by the Inclusive Framework on BEPS and OECD will be seeking taxpayer input in the coming weeks.
Japan And Austria Agree In Principle On a New DTA
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October 21st, 2016
On October 20, the Government of Japan and the Government of the Republic of Austria have agreed in principle on the New Tax Convention for the Avoidance of Double Taxation with respect to Taxes on Income.
New Convention .
How to fight State Aid cases through a full "value chain analysis" - the Starbucks and Apple cases? (2)
; posted on
October 21st, 2016
In the public version of the “Starbucks decision” of the European Commission, quite often reference is made to the transfer pricing report of Starbucks. Although no public version of this transfer pricing report is made available, it seems reasonable to conclude that the report did not include a proper value chain analysis.
US and Mexico Revise Unilateral APA Applications Involving Maquiladoras
; posted on
October 18th, 2016
On October 14, the Internal Revenue Service (IRS) announced that US taxpayers with maquiladora operations in Mexico will not be exposed to double taxation if they enter into a unilateral advance pricing agreement (APA) with the Large Taxpayer Division of Mexico’s Servicio de Administración Tributaria (SAT) under a new agreement.
Background: Maquiladoras .
BRICS Countries Target Tax Avoidance
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October 18th, 2016
On October 16 at the BRICS summit, the BRICS countries stressed the need for a mutually acceptable mechanism among BRICS nations to fight tax avoidance. The countries also agreed to set up an independent rating agency based on market-oriented principles to further strengthen global financial architecture.
European Council - Conclusions on Tax Transparency
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October 13th, 2016
During the European Council meeting on October 11, the Council adopted conclusions on tax transparency in response to a Commission communication on tax transparency following the April 2016 Panama Papers revelations.
Large-Scale Concealment of Funds .
UN Tax Committee Suggest Changes in its TP Documents
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October 12th, 2016
The UN Committee of Experts on International Cooperation in Tax Matters has released several reports that suggest changes to the UN’s transfer pricing manual for developing countries. Other reports addressing issues such as model tax treaty or mutual agreement procedure were released in advance of UNs annual meeting taking place in Geneva on October 11-14.
EU: Agreement Reached on Financial Transaction Tax
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October 12th, 2016
On October 10, the finance ministers of the 10 EU member states that work on developing financial transaction tax (FTT) held a meeting in Luxembourg. The ministers had agreed on some important measures that form "the core engine" of FTT, but further details have to be agreed on in the coming weeks.
Commissioner Vestager Discusses State Aid with Irish MEPs
; posted on
October 12th, 2016
During the European Commission's structured Dialogue with EU's Competition Commissioner Margrethe Vestager held on October 10, the Commissioner defended the position of the Commission on the Apple Ireland case.
Problem .
UK Will not Cut Corporate Tax Rate to 15 Percent
; posted on
October 7th, 2016
During the Conservative Party conference in Birmingham held on October 3, the new Chancellor Philip Hammond said the government will follow its plans to lower Britain's corporation tax rate to 17 percent by 2020, instead of 15 percent as suggested by his predecessor George Osborne.
Background: Rate of 15 percent .
Four Updates on Japanese DTAs
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October 7th, 2016
The Japanese Ministry of Finance announced that the country will begin negotiations for Tax Convention with Austria. The Ministry also informed that it signed DTA with Slovenia and that Protocol Amending Tax Convention with India and new tax agreement with Germany will enter into force by the end of October 2016.
DTA between Hong Kong and Korea Enters into Force
; posted on
October 7th, 2016
Hong Kong’s tax authority announced that the agreement between Hong Kong and Korea for the avoidance of double taxation and prevention of income tax evasion came into force.
The agreement was initially signed in July 2014, which was followed by the ratification procedures in Hong Kong and Korea.
Irish Finance Minister Elaborates on Apple Case
; posted on
October 7th, 2016
On October 4, Irish Minister for Finance Michael Noonan published an opening statement to the Irish Senate regarding the European Commission’s decision that Ireland provided unlawful state aid to Apple. The minister provides wide background information and elaborates on the flaws in the Commission's argumentation.
Foreign Banks Targeted in Germany
; posted on
October 7th, 2016
German state prosecutors are investigating 57 foreign banks for tax evasion using information obtained from self-declared tax evaders. According to the media, the voluntary disclosures provide very valuable information and became a favorite method of tax prosecutors to track down the evasions.
Switzerland Ratifies Multilateral Agreement on Tax Transparency
; posted on
September 29th, 2016
Switzerland deposited the instruments of ratification for the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (Administrative Assistance Convention) with the OECD in Paris.
To Enter into Force .
Draft Guidance on Northern Ireland Corporate Tax Regime
; posted on
September 29th, 2016
The HMRC has released a 120 pages draft guidance on the operation of Northern Ireland’s corporation tax regime and invites interested parties for comments. The guidance covers calculations of 'profits or losses', corporate tax rate of 12.
Thailand Will Amend its Tax Collection Rules for Internet and Tech Firms
; posted on
September 28th, 2016
Thailand’s Revenue Department head, Prasong Poontaneat said in the interview that Thailand is planning to toughen tax collection rules for internet and technology firms to update the country's tax laws.
Background .
Switzerland: Consultation on Amending the Withholding Tax Ordinance
; posted on
September 28th, 2016
The Swiss Federal Council issued a press release announcing that it has initiated the consultation procedure on an amendment to the Withholding Tax Ordinance. The aim of the proposed amendments is to strengthen financing activities of groups in Switzerland.
Canada: Too Late for Voluntary Disclosure Program
; posted on
September 28th, 2016
On September 26, the Canada Revenue Agency (CRA) announced in a statement that those taxpayers that have been identified in the Panama Papers and are being reviewed or audited cannot qualify for the Voluntary Disclosure Program anymore.
Background .
Singapore and the UK Sign Agreement for AEOI
; posted on
September 25th, 2016
On September 16, the Inland Revenue Authority of Singapore (IRAS) and Her Majesty’s Revenue and Customs (HMRC) signed a Competent Authority Agreement on the automatic exchange of financial account information (AEOI) based on the Common Reporting Standard.
Exchange of Information .
Tech Giant Receives Another Tax Bill
; posted on
September 22nd, 2016
Japan's Tokyo tax authorities ordered a Apple iTunes unit in Japan to pay $118 million in penalty taxes for failing to properly pay withholding tax on usage rights for software allowing online music and video distribution. Following the series of Apple's tax bills, the EU Competition Commissioner Margrethe Vestager defended the EU's Apple Ireland case during her visit in Washington on September 19.
ATO Warns Multinationals Over Two Avoidance Schemes
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September 22nd, 2016
On September 20, the Australian Taxation Office (ATO) has cautioned multinationals against international profit shifting by multinational companies. In two alerts, ATO addressed 'Cross-Border Round Robin Financing Arrangements' and 'Restructures in response to the Multinational Anti Avoidance Law (MAAL) involving foreign partnerships'.
Indonesia Investigates Internet Search Giant Over $400m Tax Bill
; posted on
September 22nd, 2016
The Indonesian Tax office launched investigation on Google over suspicion of tax avoidance over last five years. If found guilty, Google would have to pay $400m (€358m) back in taxes with an $18 million fine.
EU Launches Work On EU's Tax Haven Blacklist
; posted on
September 22nd, 2016
The European Commission has launched its work to create first common EU list of non-cooperative tax jurisdictions by presenting a pre-assessment ('scoreboard of indicators') of all third countries according to key indicators.
Member States Select Non-cooperative Jurisdictions .
European Parliament Supports Decision On Irish State Aid
; posted on
September 15th, 2016
During the debate on September 13, the European Parliament has strongly supported the European Commission’s conclusion that Ireland granted Apple illegal tax benefits, which enabling the company to pay substantially less tax than other businesses over many years.
Background .
Pakistan Signs OECD's Convention on Tax Assistance
; posted on
September 15th, 2016
Pakistan signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters and became the 104th jurisdiction to join the Convention.
Background
Indonesia - Shell Companies Not Allowed Under Tax Amnesty
; posted on
September 14th, 2016
The Indonesian government is requiring individuals or entities that want to take part in its new tax amnesty program to dissolve any shell companies they own overseas.
Background .
US-Korean FATCA Entered Into Force
; posted on
September 14th, 2016
On September 8, a Model 1 intergovernmental agreement (IGA) signed by the US and South Korea entered into force.
Background
HMRC Opens the Worldwide Disclosure Facility
; posted on
September 8th, 2016
On September 5, HMRC opened the Worldwide Disclosure Facility allowing multinationals to disclose a UK tax liability that relates wholly or in part to an offshore issue. On September 6, HMRC followed with a guidance to tax avoidance elaborating on how to get help to settle the tax affairs.
Impact of Apple Case On Singaporean Companies In Question
; posted on
September 8th, 2016
Local media in Singapore have questioned the situation in the EU after the Apple case. Singapore firms could be targeted by the EC if these companies enter into anti-competitive agreements that distort competition within the EU.
G20 Leaders Push For Tax Transparency
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September 7th, 2016
G20 leaders have met during the summit in Hangzhou, China, held September 4–5, where they shared their views on current international tax environment. The countries endorsed a proposal on the objective criteria to identify non-cooperative jurisdictions with respect to tax transparency.
Singapore And Australia To Share Data
; posted on
September 7th, 2016
On September 6, the Inland Revenue Authority of Singapore has informed that Singapore and Australia have entered into a Competent Authority Agreement on the automatic exchange of financial account information (AEIO) based on the Common Reporting Standard (CRS).
Background: Singaporean Hubs .
European Commission Criticized Over Apple Case
; posted on
September 7th, 2016
Following the EU's decision on Apple Ireland case, several US politicians including treasury secretary Jack Lew have strongly criticized the European Commission over its conclusion. The International Chamber of Commerce have expressed strong disagreements and warned against possible negative outcomes of the decision.
Dutch-Ethiopian DTA Entered into Force
; posted on
September 1st, 2016
On August 30, the Dutch Government announced that the convention between the Kingdom of the Netherlands and the Federal Democratic Republic of Ethiopia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes and income entered into force on September 1, 2016.
Background .
US Tech Giants Warn the Netherlands over Changing Its Tax Regime
; posted on
September 1st, 2016
The Silicon Valley Tax Directors Group (SVTDG), which unties 85 biggest US technology companies, have sent a letter addressed to the Dutch prime minister, State Secretary of Finance and to the ministers of Finance, Economic Affairs and Trade, warning the country not to change its favorable tax regime and to resist the pressure from the EU.
Background .
Brazil Expected to Push Against Tax Havens
; posted on
September 1st, 2016
At the upcoming G20 Summit in Hangzhou, China, Brazilian officials will join several non-governmental agencies that focus on fiscal havens and tax evasion. Brazil also plans to expand cooperation in trade and services with China and schedule a seminar for Chinese investors during the summit.
Exchange of Information on Tax Rulings and APA’s
; posted on
August 30th, 2016
In reference to the rules issued by OECD/G20 and EU, the Dutch tax authority (‘DTA’) is asking taxpayers to provide the required information on the tax ruling they agreed with the DTA. The rules are aimed at improving transparency on tax rulings granted by jurisdictions and are driven by the outcomes of Action 5 of the OECD/G20 BEPS Project and by the amendments of EU Directive 2011/16/EU provide for the mandatory spontaneous exchange of information between Member States.
Japan and Panama Sign a Tax Information Exchange Agreement
; posted on
August 30th, 2016
On August 26, the Japanese ministry of finance announced that the government of Japan has signed a Tax Information Exchange Agreement (TIEA) with the government of the Republic of Panama.
Effective Exchange .
EU: Ireland Granted Illegal Tax Benefits to Apple Worth of €13 Billion
; posted on
August 30th, 2016
On August 30, the European Commission concluded that Ireland gave Apple illegal tax benefits of €13 billion between the years 2003 to 2014. The Irish government has been ordered to recover the funds plus interest.
OECD Publishes Comments On Amendments To Chapter IX TP Guidelines
; posted on
August 26th, 2016
On August 24, The OECD published the comments it received on the conforming amendments to Chapter IX of the OECD Transfer Pricing Guidelines, "Transfer Pricing Aspects of Business Restructurings."
Background .
Singapore Signs DTA With Ethiopia and BIT with Mozambique
; posted on
August 26th, 2016
On August 24, the Singaporean Ministry of Finance informed that it signed an Avoidance of Double Taxation Agreement (DTA) with Ethiopia and a Bilateral Investment Treaty (BIT) with Mozambique.
DTA with Ethiopia .
Sweden Warns UK Against Corporate Tax Cuts
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August 24th, 2016
During an interview on August 21, Swedish Prime Minister Stefan Loefven warned the UK against cutting corporate taxes or implementing similar competitive measures. He said that such moves would damage the relations with the EU states and make Brexit talks 'more difficult'.
Trinidad and Tobago Signs IGA With US
; posted on
August 24th, 2016
On August 19, Trinidad and Tobago and the United States have signed an Inter-Governmental Agreement (IGA) as part of the implementation of the Foreign Account Tax Compliance Act (FATCA).
Background .
Irish - Ethiopian DTA Entered Into Force
; posted on
August 16th, 2016
The Irish Revenue announced that the Convention between Ireland and Ethiopia for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income entered into force on August 12, 2016.
Background .
Mauritius and Korea Sign Tax Information Exchange Agreement
; posted on
August 16th, 2016
On August 11, Mauritius and the Republic of Korea signed a Tax Information Exchange Agreement (TIEA). Finance Minister of Mauritius, Pravind Jugnauth, reaffirmed the intention to initiate negotiations on a Double Taxation Avoidance Agreement with Korea.
ATO Warns about Specific Tax Avoidance Arrangements
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August 12th, 2016
On August 10, the Australian Taxation Office (ATO) issued 3 Taxpayer Alerts cautioning large companies and multinationals seeking to avoid tax. The Taxpayer Alerts regard the arrangements involving offshore permanent establishments, GST implications in response to the Multinational Anti-Avoidance Law (MAAL) and Thin capitalization.
Intergovernmental Agreement Curacao-USA Is Now In Force
; posted on
August 12th, 2016
The intergovernmental agreement (IGA) between Curacao and the United States that implements FATCA Model 1 is now in force, Curacao Chronicle informed.
Background
Indonesia to Cut Corporate Tax Rate to Stay Competitive
; posted on
August 12th, 2016
Indonesia's President Joko Widodo informed that he is considering cutting the corporate tax rate to 17 percent from 25 percent in order to match Singapore's corporate tax rate.
Tax Rate Cut .
New Zealand - Simplified Tax Processes and Tighter Foreign Trust Rules
; posted on
August 11th, 2016
Revenue Minister Michael Woodhouse informed that New Zealand has introduced a tax bill to simplify tax processes, reduce compliance costs for smaller businesses, and tighten foreign trust disclosure rules. The bill includes the necessary measures to implement the G20/OECD standard for the Automatic Exchange of Information for financial institutions.
IRS seeks $3-5bn from Social Media Giant over Transfer Pricing
; posted on
August 2nd, 2016
Facebook has informed that the US Internal Revenue Service delivered a "notice of deficiency" seeking $3bn (€2.68bn) to $5bn, plus interest and penalties, based on the agency's audit of Facebook's transfer pricing.
IRS - Jurisdictions Need To Have IGA Implementation Plan In Place
; posted on
August 2nd, 2016
The US Treasury has announced that it will begin updating the Intergovernmental Agreement (IGA) List and will stop treating a country as if it has the Foreign Account Tax Compliance Act (FATCA) IGA “in effect” if the country does not prove that it has a plan to bring the IGA into force.
Background .
New Zealand Not Afraid of EU's Blacklist
; posted on
August 2nd, 2016
New Zealand is not likely to end up on EU's blacklist despite the local media’s claim that New Zealand has been put on the EU's radar especially due to many links revealed by the Panama Papers, for which the European Union set up a special investigation committee.
Background: EU Blacklist .
South African Treasury To Curb Tax Avoidance Through Trusts
; posted on
August 2nd, 2016
The National Treasury informed its plans to introduce a new section into the Income Tax Act that will address the avoidance of estate duty by moving assets to a trust. The National Treasury is concerned abut the interest free loans or loans with interest below market rates without being subject to either donations tax or estate duty, which is a common approach in South Africa.
Investors and Private Equity Associations Are Concerned About India-Singapore Tax Treaty
; posted on
August 1st, 2016
Foreign portfolio investors and private equity associations are concerned about the India-Singapore tax treaty, which is expected to be signed later this year. In the last month, the associations have written to the government requesting several changes on the tax treaty.
Egypt Joins the Global Forum on Exchange of Information
; posted on
July 28th, 2016
The OECD announced that Egypt has joined the Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum), bringing its membership to 135. The last members to join the Global Forum were Lebanon and Paraguay in May.
Hong Kong Ready for Automatic Exchange of Information
; posted on
July 6th, 2016
On June 30, The Inland Revenue (Amendment) (No. 3) Ordinance 2016 (the Amendment Ordinance) came into effect, the Hong Kong Inland Revenue Department has informed.
European Parliament Adopts Anti-Tax Avoidance Directive
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June 10th, 2016
The European Parliament voted overwhelmingly in favor of the Anti-Tax Avoidance Directive, proposed by the European Commission in January 2016, which aims at tightening rules against tax avoidance. At the same time, the parliament has also set up a “Panama Papers” inquiry committee to investigate alleged contraventions and maladministration.
EU Investigate Members' TP Rulings under State Aid
; posted on
June 7th, 2016
The EU Commission released a working paper identifying problematic areas in profit allocations and arm’s length standard across Member States’ transfer pricing rulings. The working paper investigates whether certain rulings would be prohibited under EU's state aid rules.
EU: Multinationals Grilled at TAXE Meeting
; posted on
March 19th, 2016
Representatives from Apple, Google, Ikea and McDonald’s were questioned on their tax structures in Europe at a special hearing of the European Parliament’s special committee on tax on Tuesday, March 15, in Brussels. The MEPs also asked on feedback on specific areas of BEPS project.
TAXe | Countries that Granted State Aid Should not Be Recovered
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January 20th, 2016
On January 19, the European Parliament agreed that money that a member state should recover from a company due to infringements of tax-related state aid rules should be returned either to the EU budget or to member states that have suffered an erosion of their tax bases.
The Report .
USA - New regulations on Country-by-Country Reporting by MNEs
; posted on
December 23rd, 2015
On 21 December, The US Treasury Department released a proposal on regulations that would require annual country-by-country reporting by US companies that are the ultimate parent entity of a multinational enterprise (MNE) group.
International Context .
TPA German BRICS+ Desk
; posted on
December 22nd, 2015
What the BRICS countries do for German Multinationals has a significant economic relevance – at least 1,800 German corporates already have a presence in India, and in Russia one may find 6,000 active corporates with a German origin. Next to these countries, some important markets for the German business community exist, such as Mexico, Turkey, Singapore or Indonesia.
ATAF to Reduce Double Taxation across Africa
; posted on
December 15th, 2015
The African Tax Administration Forum (ATAF) has come up with a draft document on avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income in Africa.
Model Agreement .
Curaçao Malta DTA Available
; posted on
November 24th, 2015
The English version of DTA with respect to Taxes on Income between the Republic of Malta and the Kingdom of the Netherlands in respect of Curaçao has been published on the website of the Malta Financial Services Authority (MFSA).
Convention .
Multinationals Endorse Patent Box in US
; posted on
November 19th, 2015
A collection of some of America’s leading companies working under American Innovation Matters (AIM) released a statement pushing for the introduction of a US patent box, or an "innovation box" as it is known in the United States.
American Innovation Matters .
European Commission Aims to Deal with Corporate Tax Regimes that Favor Debt Over Equity
; posted on
October 1st, 2015
The European Commission will propose a draft law aimed at eliminating tax regimes that favor raising corporate debt over equity, as it tries to reduce the amount of company loans on banks' books and to cut companies' leverage, the Commission announced on 30 September in its Capital Markets Union Action Plan.
Tackling the Debt-Equity Tax Bias .
China is Expected to Progress Its Global Corporate Tax Rules
; posted on
August 4th, 2015
On 30 September 2015, China Daily has reported that China will be at the forefront of embracing the emerging international tax rules to combat base erosion and profit shifting, known as BEPS, as it shifts toward becoming a "capital-export" country.
Modernization .
China is introducing BEPS legislation
; posted on
April 15th, 2015
On March 18, 2015, the State Administration of Taxation in China (SAT) released the ‘Public Notice Regarding Certain Corporate Income Tax Matters on Outbound Payments to Related Parties Abroad’ (SAT Public Notice [2015] No.16, hereinafter referred to as “Notice 16”).
Criticism on OECD’s Modified Nexus Approach
; posted on
March 17th, 2015
In a joint statement, two business organizations from the Netherlands and Germany have stated their concerns about the development of the proposals under the OECD’s work on Action 5 of its BEPS project. This Action focusses on tackling harmful tax practices and patent box regimes regarding the IP income.
Italy Improves New Patent Box Regime
; posted on
March 14th, 2015
The Italian Government has passed improvements to its new patent box preferential tax regime, even though it was only introduced this month, after approval of the 2015 Budget Law in December.
As a means of encouraging the development of intellectual property (IP) in Italy, the patent box regime was introduced along similar lines to the incentives granted in other European Union countries, covering income deriving from the use or licensing of qualifying intangible assets.
Release of discussion draft on the transfer pricing aspects of cross-border commodity transactions
; posted on
December 7th, 2014
Public comments are invited on this discussion draft which deals with work in relation to Action 10 (“Assure that transfer pricing outcomes are in line with value creation” in relation to “other high risk transactions”) of the Action Plan on Base Erosion and Profit Shifting (BEPS).
The OECD Action Plan on Base Erosion and Profit Shifting, published in July 2013, identifies 15 actions to address BEPS in a comprehensive manner and sets deadlines to implement these actions.
UK Patent Box – a pre-Action Plan recipe?
; posted on
April 28th, 2014
The UK’s Patent Box system is becoming rather controversial. The scheme is scheduled to provide a predicted amount of £367M (€446M) in tax breaks and was introduced in April 2013.
India to audit transfer pricing based on risk assessments
; posted on
April 28th, 2014
A proposal has been set forward for the transfer pricing audit threshold in India to be removed in favour of a risk management, finger-picking approach. Currently, firms engaging in transactions above INR 15 crore (€1.
UK expecting no changes to Patent Box regime
; posted on
December 12th, 2013
HMRC, the British tax authority, has no current intention of making changes to the UK’s Patent Box system. The Patent Box has been under investigation by the European Commission, but the UK is confident that the arrangement is consistent with international guidelines and therefore will not require further tweaking.
Panama taxpayers must now document transactions with all foreign related parties
; posted on
September 1st, 2012
Recent amendments to Chapter IX of the Fiscal Code “Standard of Adaptation of Treaties to Avoid the Double International Taxation” will now reach any operation that a taxpayer in Panama has with its foreign related parties. Prior to the introduction of these amendments, transfer pricing documentation requirements in Panama only applied to cases where a tax resident in Panama had operations with a related party located in a country with which Panama has a double tax treaty in place.
Australia – ATO risk assessments
; posted on
February 1st, 2012
The Australian Taxation Office (“ATO”) has announced that it is currently writing to large businesses about the ATO’s assessment of their level of tax risk and that it is looking to meet with the senior executives of those taxpayers to explain their assessment. These tax risk assessments address issues relating to income tax, goods and services tax and excise.

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