A European Court of Justice (ECJ) judgment, released Sept. 17, will result in large VAT bills for banks, insurers, and other businesses considered VAT-exempt. The decision, Skandia America Corp. v. Sweden, concludes that supplies of services from a non-EU company to its EU branch are subject to VAT when the branch belongs to a VAT group. Previously, provision of these services . . .
The European Court of Justice, in Kronos International Inc. released Sept 11, has ruled that a US registered company resident in Germany may assert that German tax rules violate free movement of capital, but the company may not claim freedom of establishment rights. The ECJ went on to reject the company's contention that Germany's tax rules in effect at the time, which permitted a set off for . . .
Kirill Roubalsky has joined the Moscow office of Dentons as a senior associate in the Tax and Customs practice. Roubalsky, fomerly with Pepeliaev Group, Schekin & Partners and Muranov, Chernyakov & Partners, specializes in tax litigation, general corporate and international tax law and tansfer pricing issues. Release
The government of Gibraltar, on July 24, opened a consultation on a proposal to establish a registry of the ultimate beneficial owners of Gibraltar companies. Input is requested on topics such as whether the registry should made available publicly or only to select users, and what type of information, beyond names and addresses, should be required. Submissions are due September 30. Consultation Paper (PDF 386KB)
The European Commission, on June 11, announced that it is investigating whether individual transfer pricing rulings granted to Apple in Ireland, Starbucks in the Netherlands, and Fiat in Luxembourg sanctioned the allocation of too little profit to activities in those countries, thereby amounting to illegal state aid. The Commission has also initiated an infringement action against Luxembourg in connection with the matter.The decision is part of a wider investigation into whether tax rulings and . . .
-Update: The Luxembourg Finance Ministry, in a June 12 statement, said it would continue to defend against the Commission's charges of illegal state aid, and said it still has doubts about the legality Commission requests for information, see statement.
Finance ministers from the UK, France, Germany, Italy and Spain, on 28 April, agreed to sign new global standards of automatic exchange of tax information at the October Global Forum meeting in Berlin. The countries will begin to automatically exchange information in 2017, with respect to data collected from 31 December 31, 2015. UK Press Release, German Press Release, French Press Release
The Netherlands announced November 27 that it will appeal the EU Commission's October 21 ruling that an advance pricing agreement (APA) granted by the Netherlands to a Starbucks subsidiary amounted to illegal State aid because it sanctioned the allocation of too little taxable profit . . .
"Ireland will probably face censure from European authorities within months in relation to its tax dealings with Apple Inc.," write Gaspard Sebag and Joe Brennan of Bloomberg Business, quoting unnamed sources. See:Bloomberg Business.
Former PwC auditor, Antoine Deltour, was charged with multiple crimes in Luxembourg on December 12 for stealing and leaking confidential PwC client advance tax rulings and other documents that were later placed on the Internet by the International Consortium of Investigative Journalists (ICIJ). He has admitted his involvement, but says that he did not provide all the material released on the ICIJ website. See,Blomberg, The Guardian, Luxemburger Wort, The Irish Times.
Germany and the UK have agreed to a proposal that would put limits on preferential intellectual property regimes, including the UK's patent box regime, for purposes of drafting uniform rules responding to Action 5 of the OECD/G-20 base erosion profit shifting (BEPS) plan. The compromise proposal breaks . . .
Switzerland and Cyprus, on July 25, signed an agreement for the avoidance of double taxation with respect to taxes on income and on capital. It is the first tax treaty to be signed between the countries. The agreement includes a provision for the exchange of tax information on request.
The UK's HMRC, in Customs Brief 23 issued December 11, updated its view of how UK businesses must account for VAT on intragroup supplies of services to branches that are part of VAT groups located in the Netherlands or Spain, following the European Court of Justice’s ruling in Skandia America . . .