Americas

Interest on inbound financing: is it arm’s length?

Annemarie Wilmore, Johnson Winter & Slattery, discusses the latest developments in the Australian case of Singapore Telecom Australia Investments Pty Ltd v Commissioner of Taxation when the Australian Federal Court issued a further decision on March 22, including its consideration of whether consequential adjustments to the transfer pricing benefit should be made to take into account carryforward losses.

Africa

Danish High Court rejects discretionary tax assessment in groundbreaking transfer pricing case

Susi Baerentzen, Carlsberg Foundation Postdoctoral Fellow, analyzes the High Court of Eastern Denmark’s March 28 ruling that dealt another harsh blow to the Danish Ministry of Taxation in the largest-ever transfer pricing case in Danish history regarding a USD 1.5 billion increase of taxable income for the oil business previously owned by A.P. Møller Maersk (now by Total Energies EP).

Americas

Why Pillar Two should be abandoned

Allan Lanthier, a former advisor to the Canadian government, argues that when EU finance ministers next meet on April 5, they should abandon Pillar Two, which, he says, is a deeply flawed initiative that includes major changes on which countries had never previously agreed, including a new Domestic Minimum Top-Up tax and a significant rewrite of the Undertaxed Payment Rule.

Europe

Italy makes recent changes to cooperative compliance tax regime

Giuliana Polacco and Annarita De Carne, Studio Legale Bird & Bird, discuss two significant developments the Italian Revenue Agency made this month to its cooperative compliance regime, a forum allowing a taxpayer to prevent tax audits and to agree in advance with tax authorities regarding the tax treatment of specific uncertain transactions.