Europe

The European Financial Reporting Advisory Group (EFRAG) on May 20 issued a joint consultation document seeking input on the International Accounting Standard Board’s (IASB) future agenda . . .

Europe

Commission recommends EU states grant up to EUR 3 million carryback of losses to at least 2019 to help businesses that have suffered from COVID-19 pandemic : EU Commission→

Europe

Ukraine’s new transfer pricing reporting forms

Yuri Nikolaychuk, Associate Partner, Rödl & Partner, Kyiv, discusses recent updates to Ukraine’s required transfer pricing documentation . . .

Americas

The EU Commission’s objections to Amazon’s transfer pricing approach

New York City Economist Dr. J. Harold McClure examines why the EU Commission’s objections to Amazon’s transfer pricing approach resulted in Amazon’s win . . .

Accounting

UK Financial Reporting Council notes cash flow statement errors are a recurrent problem

May 21, 2021

The UK’s Financial Reporting Council (FRC) on May 19 published a Thematic Briefing: The audit of cash flow statements, noting the results of the FRC’s constructive engagement findings and the efforts audit firms have taken to shore up the audit of cash flow statements . . .

Americas

US agrees to 15% global minimum tax rate, boosting odds for Pillar 2 agreement

May 21, 2021

The US, which has been leading the push for a global agreement on a minimum corporate tax, has proposed a minimum tax rate of 15% – a concession from the 21% rate that the Biden Administration previously . . .

Accounting

EU financial advisory members to field test IASB proposals

May 21, 2021

The European Financial Reporting Advisory Group (EFRAG) is asking companies to commit to field testing certain International Accounting Standards Board (IASB) proposals over the next few months . . .

Europe

EU Advocate General advises on Portugal’s disparate tax treatment of dividends

Advocate General Kokott of the Court of Justice of the European Union (CJEU), in a May 6 opinion, advised the CJEU to rule that EU free movement of capital requirements . . .

Americas

New Zealand will levy digital services tax on locally-derived revenues of Google, Facebook if no OECD accord is reached, Revenue Minister says: Jonathan Milne / newsroom.pro→

Europe

Poland plans enhanced R&D tax incentives in economic recovery effort

The Polish Ministry of Finance announced on May 5 various tax plans, including enhanced research and development incentives, in connection . . .

Europe

Ireland likely to oppose EU plan for unified tax base: Eoin Burke-Kennedy / The Irish Times→

Europe

Italy to introduce 20% R&D credit for work on drugs, including COVID-19 vaccines, if company grants non-exclusive licenses to third-parties: Reuters→

Europe

EU report finds states could improve policies on R&D incentives, tax avoidance

The European Commission’s Annual Report on Taxation 2021, released May 18, finds that EU member states have made progress in bringing their tax policies in line with EU priorities, but areas for improvement remain . . .

Americas

UK firm Cairn Energy sues Air India to enforce a USD 1.2 billion arbitration award in tax dispute against India: Euan Rocha & Jonathan Stempel / Reuters→

Europe

The UN transfer pricing manual’s guidance on IP valuation and royalty rates

New York City Economist, Dr. J. Harold McClure, discusses the latest edition of the United Nations Practical Manual on Transfer Pricing for Developing Countries, released April 27, which includes some useful observations on the nature of intangible assets, yet it has a very sparse discussion of the evaluation of intercompany royalty rates . . .

Austria

ECJ rules interest payments due for untimely value-added tax refunds

The European Court of Justice ruled on May 12 that refunds resulting from adjustments to the amount of value-added tax that a taxpayer owes must be paid with interest when not paid within a reasonable period of time . . .

Digital Economy

Ambitious EU tax agenda includes new common corporate tax base proposal

May 18, 2021

The European Commission on May 18 announced several proposals that would dramatically alter the taxation of multinational groups, including proposals to allocate MNE profits among EU states using formulary apportionment and require MNEs to publish their effective tax rates . . . .

Europe

EU court’s state aid decision in Amazon tax case published in English

May 18, 2021

The General Court of the European Union on May 17 published the English-language version of its decision holding that the European Commission failed to establish . . .

Europe

Switzerland advances withholding tax reform

May 17, 2021

Francesca Amaddeo, Tax Law Competence Centre (SUPSI), discusses the Swiss Federal Council’s April 15 proposal to exempt Swiss interest income from federal withholding tax . . .

Europe

Ukraine’s new transfer pricing rules expand taxpayer obligations

May 17, 2021

Ivan Shynkarenko, KM Partners, WTS Global, Kyiv, discusses Ukraine’s recent changes to its tax code affecting the transfer pricing . . .

Accounting

UK’s Financial Reporting Council announces appointments to its advisory panel

May 13, 2021

The UK’s Financial Reporting Council (FRC) on May 4 announced the appointment of 19 members to its advisory panel, established a few months prior . . .

Europe

Luxembourg welcomes EU court’s judgment that Amazon tax treatment did not violate state aid law, will “examine” judgment finding state-aid advantage in ENGIE case: Luxembourg Government→

May 13, 2021

Africa

If US and EU states can convince large emerging economies to adopt GloBE, MNEs will pay double-digit billions more tax, face increased complexity, Professor says: Joachim Englisch / SSRN→

May 13, 2021

Europe

Perrigo in discussions to settle $1.9B Irish tax bill, dispute concerns IP sales taxed as trading income at 12.5% instead of 33%: Seeking Alpha→

Europe

The UN transfer pricing manual’s guidance on intercompany interest rates in the extractive sector

New York City Economist, Dr. J. Harold McClure, discusses several examples in the United Nations transfer pricing manual’s chapter on the extractives sector that address how to set appropriate intercompany interest rates . . .

Europe

First Look: Luxembourg and Amazon win tax-related state aid dispute, EU prevails in Engie

The General Court of the European Union on May 12 issued a judgment annulling a European Commission . . .

Europe

Proposed rules would allow EU to block acquisitions by foreign companies receiving tax benefits

On May 5, the European Commission proposed regulations that would enable it to scrutinize and potentially block acquisitions of EU-based companies by companies that benefit from certain preferential foreign tax treatments . . .

Europe

Finland to remove VAT exemption for imported purchases

The Finnish government plans to remove a value-added tax (VAT) exemption for small imported online purchases in July, Finland’s Ministry of Finance announced May 6 . . .

Europe

European Court of Human Rights upholds EUR 1,000 (USD 1,200) fine against ex-PricewaterhouseCoopers employees for providing tax returns to journalists in LuxLeaks scandal: Molly Quell / Courthouse News Service→

Asia-Pacific

Indian court rules most favored nation clause triggered in tax treaty with Netherlands

Ritu Shaktawat and Rahul Jain, Khaitan & Co., discuss the High Court of Delhi’s April 22 ruling in a landmark judgment concerning the interpretation of the India-Netherlands tax treaty’s most favored nation clause . . .

Europe

ECJ to this week hear Luxembourg’s appeal of the General Court’s decision in Fiat which approved the Commission’s use of the arm’s length principle to determine if a tax ruling gives rise to State aid: Seán McCárthaigh / Irish Times→