Europe

Americas

COVID-19 and tax treaties: the updated OECD guidance

Parwin Dina, Lead Client Service Partner and Global Tax Leader at GTS (Global Tax Services) UAE, discusses the OECD’s updated guidance on COVID-19 and tax issues, issued January 21 . . .

Americas

In a call to German minister Scholz, new US Treasury secretary pledges active US participation in OECD international taxation effort “to forge a timely international accord”: US Department of Treasury→

Europe

EU should better monitor tax information exchange to ensure data quality, encourage states to put tax data to better use, plug gaps such as lack of reporting for cryptocurrencies. ECA says: European Court of Auditors→

Europe

Ireland updates DAC6 guidance to clarify filing procedure when a disclosure is subject to legal privilege: Irish Tax and Revenue→

Europe

EU blacklist does not properly identify tax havens, Parliament says

Francesca Amaddeo, Lecturer-Researcher at the Tax Law Competence Centre (SUPSI), Manno, Switzerland, discusses an European Parliament non-legislative resolution, issued January 18, criticizing the EU tax blacklist . . .

Digital Economy

Amazon to increase fees of Spanish companies that use its platform in response to imposition of 3 percent DST: Reuters→

January 25, 2021

Europe

Ferragamo France’s transfer pricing dispute and resale price method abuse

January 25, 2021

Dr. J. Harold McClure, a New York City economist, notes that a recent transfer pricing case decided by France’s Supreme Administrative Court appears to involve a distribution affiliate with persistent operating losses despite purporting to use arm’s length margins, a pattern discussed in detail by Dr. Ednaldo Silva in his January 6 MNE Tax article . . .

Digital Economy

Italian digital services tax takes its first steps

January 25, 2021

Francesca Amaddeo, Lecturer-Researcher at the Tax Law Competence Centre (SUPSI), Manno, Switzerland, discusses the Italian revenue agency’s January 15 release of final guidance on the national digital services tax, provision n. 13185/2021. . .

Europe

Swedish court denies telecom giant’s tax deduction for exchange losses

January 20, 2021

Erik Koponen, Transfer Pricing Specialist at Thorning Koponen Consulting, Sweden, discusses a Swedish Lower Administrative Court decision issued on January 4 that upheld the Swedish tax agency’s denial of a deduction for losses related to a currency conversion of a loan . . .

Africa

Transfer pricing and the cumulative advertising effects on sales

January 20, 2021

Dr. Ednaldo Silva, founder and managing director of RoyaltyStat, Bethesda, Md., discusses the effect of advertising on enterprise-level sales, arguing that marketing intangible producing activities such as advertising expenses cannot coexist with the legal concept of limited function distributor or retailer . . .

Digital Economy

Ireland updates Corporate Tax Roadmap: Ireland Department of Finance →

Digital Economy

EU Commission to soon publish Communication on Business Taxation for the 21st Century, will propose digital levy mid-2021: Valdis Dombrovskis / European Commission→

Estonia

Estonia joins BEPS multilateral tax treaty

Estonia deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty . .

Europe

New Italian budget law permits advance pricing agreement rollback

Francesca Amaddeo, Lecturer-Researcher, Tax Law Competence Centre (SUPSI), Manno, Switzerland, discusses a new Italian law related to advance pricing agreements . . .

Africa

“Platform for Collaboration on Tax” toolkit helps countries set up transfer pricing documentation regimes

The “Platform for Collaboration on Tax,” a joint initiative of the IMF, OECD, UN, and World Bank Group today released a toolkit aimed at helping developing countries establish an effective transfer pricing . . .

Americas

Day 2 of OECD consultation on international tax reform blueprints: Daniel Bunn / Tax Foundation→

Americas

Day 1 of OECD consultation on international tax reform blueprints: Daniel Bunn / Tax Foundation→

Americas

US says Austria, Spain, UK digital taxes discriminate, warns on EU tax, three others

January 15, 2021

Digital services taxes enacted in Austria, Spain, and the UK discriminate against US companies within the meaning of Section 301 of the US Trade Act of 1974, the Office of the US Trade Representative . . .

Digital Economy

EU seeks public input to design of digital levy

January 14, 2021

The EU Commission today requested feedback on the design of its coming . . .

Africa

Arm’s length principle mutations: control of risk in the OECD guidelines and variations in practice

Andrew Hickman, UK consultant and former OECD Transfer Pricing Head, observes that a “mutated” form of the arm’s length principle is being applied in practice that differs from the 2017 OECD transfer pricing guidelines, and considers whether the guidelines should adopt these changes or if these mutations should be abolished . . .

Africa

OECD releases 20 comments on BEPS Action 14, new tax dispute resolution proposals

The OECD today released 180+ pages of public comments from 20 groups responding to a planned 2020 review of Action 14 of the OECD/G20 base erosion . . .

Council of the EU

EU agenda includes public country-by-country reporting

Francesca Amaddeo, Lecturer-Researcher, Tax Law Competence Centre (SUPSI), Manno, Switzerland, discusses the Portuguese Presidency of the Council of the European Union’s January 1 announcement of its priority program, including tax policy priorities . . .

Europe

Swedish tax agency clarifies DAC6 transfer pricing hallmarks

Emilia Ferrão, a Transfer pricing specialist at Thorning Koponen Consulting in Stockholm, Sweden, discusses Swedish tax agency guidance issued in November and December 2020 that clarifies Sweden’s position on DAC6 “hallmarks” that trigger reporting related to transfer pricing . . .

Europe

UK opens multiple criminal fraud probes following MNE tax avoidance investigations, HMRC officials confirm

January 12, 2021

The UK’s HM Revenue and Customs has opened “multiple” criminal fraud investigations stemming from investigations . . .

Europe

Norway’s oil lobby sharply criticizes plans to more than triple CO2 tax: Nora Buli & Nerijus Adomaitis / Reuters→

January 12, 2021

Americas

US says Italy, India, Turkey digital services taxes are discriminatory, suspends France tariff action

January 7, 2021

Digital services taxes enacted in India, Italy, and Turkey discriminate against the United States; however, for now, no trade actions will be taken, the Office of the US Trade Representative . . .

Africa

OECD plans public consultation meeting on “blueprints” for taxing large multinationals

January 6, 2021

The OECD has announced that it will hold public consultation meetings on the Report on the Pillar One Blueprint and the Report on the Pillar Two Blueprint. The meetings are scheduled for . . .

Europe

Italy unlocks tax dispute resolution mechanism

January 6, 2021

Francesca Amaddeo, Lecturer-Researcher, Tax Law Competence Centre (SUPSI), Manno, Switzerland, discusses December 16 Italian tax guidance clarifying changes to Italy’s tax dispute resolution mechanism . . .

Digital Economy

Italian digital services tax is knocking at the door

January 6, 2021

Francesca Amaddeo, Lecturer-Researcher at the Tax Law Competence Centre (SUPSI), Manno, Switzerland, discusses December 17 guidance issued by the Italian tax authority that addresses Italy’s new digital service tax . .

Europe

Dutch informal capital scheme should be investigated for illegal state aid, professor says: Jan Vleggeert / SSRN→

Americas

EU Parliament’s plan for new tax blacklist would hit Cayman Islands: Cayman News Service→

Digital Economy

French High Court in Valueclick interprets tax treaty permanent establishment rules

Mickael Duquenne, Senior Manager and Pascal Luquet, Partner, at Grant Thornton Société d’Avocats, Paris, discuss a December 11 landmark decision of France’s Supreme Administrative Court concluding that an Irish company had a permanent establishment in France . . .

Africa

Using US IRS data, authors conclude that Bermuda, Ireland, Netherlands are US MNEs’ most important tax havens: Petr Janský, Javier Garcia-Bernando, Thomas Tørsløv /Springer→