Europe

Europe

Professors argue that digital service taxes violate EU law but cite recent ECJ cases that suggest that the court will not strike them down: Ruth Mason & Leopoldo Parada / SSRN→

Taxing offshore indirect transfers, the Platform’s new toolkit

Francesca Amaddeo, a Researcher at the Tax Law Competence Centre (SUPSI), Manno, Switzerland writes about the Platform for Collaboration on Tax’s June 4 toolkit on taxation of offshore indirect transfers . . .

Europe

Germany proposes substantial VAT rate reduction, tax loss carryback expansion

German tax professional Ninja-Antonia Reggelin discusses a German finance ministry draft law released last week addressing tax policy measures relevant for businesses that were agreed to by German coalition parties in a stimulus package earlier this month . . .

Europe

Matti Vanhanen appointed Finland Minister of Finance: Finland Ministry of Finance→

June 9, 2020

Belgium

Belgium to introduce tax loss carryback, recovery reserve in response to pandemic

June 9, 2020

Geoffroy Galéa, Of Counsel, Head of the Tax Practice, Fieldfisher Brussels, discusses June 5 Belgian government tax proposals aimed at bolstering the liquidity and restoring the solvency of Belgian businesses in the current COVID-19 context . . .

Americas

Professor advocates worldwide digital tax based on country-specific income thresholds but subject to a worldwide de minimis amount: Assaf Harpaz / SSRN→

June 8, 2020

Council of the European Union

EU report provides an overview of outstanding tax issues under negotiation in the Council: Council of the European Union→

June 8, 2020

Europe

Netherlands announces plans for new dividend withholding tax

June 4, 2020

Jian-Cheng Ku and Rhys Bane of DLA Piper Nederland N.V., Amsterdam, discuss the Dutch government’s May 29 announcement of its intention to propose an additional withholding tax on dividends to step up its fight against tax avoidance . . . .

Europe

EU considering new corporate tax on less than .2 percent of turnover to aid States harmed by coronavirus: Reuters→

June 3, 2020

Americas

Whirlpool’s maquiladora: the Mexican transfer pricing perspective

June 3, 2020

Dr. Harold McClure, a New York economist, discusses transfer pricing issues with respect to Whirlpool’s Mexico affiliate, which conducted toll manufacturing operations on behalf of a Luxembourg affiliate, as described in the recent Tax Court case, Whirlpool Financial Corporation v. Comr. . . .

Americas

Spain says digital tax uses objective criteria, won’t discriminate against US MNEs: Reuters→

June 3, 2020

Europe

EU court reexamines VAT treatment of rebates

Daan Arends and Wouter Kolkman of DLA Piper Netherlands discuss a May 28 decision of Court of Justice of the European Union in the World Comm Trading case, which revisits the VAT consequences for businesses that receive rebates . . .

Americas

US to investigate digital services taxes in India, Brazil, Turkey, Indonesia, the European Union, five EU countries

The Office of the US Trade Representative (USTR) today announced that it has initiated an investigation into digital services taxes proposed or adopted in . . .

Europe

Ireland postpones dividend withholding tax real-time reporting for dividend distributions: Irish Revenue→

Digital Economy

EU to again propose digital tax if OECD talks fail, economy commissioner says: Bloomberg Tax→

Europe

Following similar decisions by other EU states, Scotland bans COVID-19 support to firms based in tax havens: Severin Carrell / The Guardian→

May 27, 2020

Europe

EU Advocate General addresses UK’s VAT exemption for cost-sharing groups

May 27, 2020

Francesca Amaddea, a researcher at the Tax Law Competence Centre (SUPSI), Manno, Switzerland, discusses the conclusions of Advocate General Juliane Kokott issued April 23 concerning a case before the European Court of Justice on the operation of the VAT exemption for cost sharing groups when a third country is involved . . .

Africa

Transfer pricing in the times of COVID-19: do’s and don’ts for adjusting comparable company searches

May 26, 2020

Hugo Chary and Thibaut Roques of TP qube, Paris / Bordeaux, France, discuss how to adjust comparable company searches to reflect the new market conditions that have arisen from the COVID-19 crisis . . .

Netherlands Supreme Court addresses taxation of perpetual securities under debt/equity rules

May 21, 2020

Jian-Cheng Ku, Gabriël van Gelder, and Mehdi el Manouzi, DLA Piper Nederland N.V., Amsterdam, discuss an important Netherlands Supreme Court decision published May 15 which considered whether perpetual loans should be viewed as debt or equity for tax purposes . . .

Africa

Countries still can’t agree on update to multinational group taxation rules, OECD official says

May 21, 2020

The 137 countries that make up the “Inclusive Framework on BEPS” are having a difficult time reaching agreement on an update to the global rules for allocating multinational group profits among nations, according to Pascal Saint-Amans, OECD Center for Tax Policy and Administration. Saint-Amans warned. . .

Italy’s Supreme Court rules on VAT treatment of intercompany management fees

May 21, 2020

Gian Luca Nieddu, Partner, Transfer Pricing & Tax Value Chain, Hager & Partners, Milan area, discusses a recent decision, of Italy’s Supreme Court which addressed the VAT deductibility of intercompany charges accomplished by the reverse charge mechanism . . .

Europe

EU court rules on legality Italy-Portugal tax treaty’s pension taxation scheme

May 18, 2020

Francesca Amaddeo, Researcher, Tax Law Competence Centre (SUPSI), Manno, Switzerland, discusses the European Court of Justice’s April 30 decision addressing a challenge to the legality of the pension scheme under the double taxation convention between Italy and Portugal . . .

Polish government issues Q&A on APA procedure: Krajowa Administracja→

Europe

Italy’s financial transaction tax complies with EU law, court rules

Francesca Amaddeo a researcher at the Tax Law Competence Centre (SUPSI), Manno, Switzerland, analyzes a long-awaited decision of the European Court of Justice, released on April 30, that concludes Italy’s financial transaction tax on derivatives of equity transactions is compatible with EU law . . .

Asia-Pacific

BEPS MLI to enter to force for Czech Republic, Korea

The OECD today announced that the Czech Republic and Korea have deposited their . . .

Asia-Pacific

Synthesized text of Australia-Norway tax treaty as modified by BEPS MLI published: Australian Taxation Office→

Europe

EU Commission extends deadlines for VAT e-commerce rules, DAC reporting

The EU Commission has announced that, because of the COVID-19 emergency, it will postpone the entry into force of the VAT e-commerce package and will extend . . .

Europe

German finance ministry clarifies transfer pricing proposal

May 11, 2020

Markus Kircher, a partner at Deloitte GmbH, Frankfurt/Germany, discusses recent German Finance Ministry clarifications to proposed modifications to the German transfer pricing rules . . . .

Digital Economy

EU likely to adopt proposal to delay 2021 VAT e-commerce reforms to July 2021: Richard Asquith / Avalara VATlive→

May 11, 2020

Denmark

EU Commission spokesperson says states can’t deny COVID-19 relief to firms headquartered in tax havens: Nikolaj Nielsen / euobserver→

May 8, 2020

Europe

Italy addresses tax treatment of third-party payments under patent box rules

May 5, 2020

Gian Luca Nieddu, Partner Transfer Pricing & Tax Value Chain at Hager & Partners, Milan area, discusses Italian patent box guidance issued on April 24 that clarifies the tax treatment of contributions to research and development expenses made by a third party under a co-development and license agreement . . .

Europe

Ireland transfer guidance addresses claims for unilateral tax relief

May 4, 2020

Warren Novis, Head of Transfer Pricing, BDO Ireland, discusses Irish transfer pricing guidance released April 24 on correlative adjustments . . .

EU Commission to investigate whether Netherlands granted IKEA subsidiary State aid by approving tax deductions

May 1, 2020

The European Commission announced April 30 that it has widened the scope of its in-depth investigation into the Netherlands’ tax treatment of an IKEA subsidiary . . .

Europe

New Poland transfer pricing risk assessment tool released in interactive format

Dr. Monika Laskowska of the Center of Tax Analyses and Studies, Warsaw School of Economics, discusses the Polish government’s newly launched an interactive version of its transfer pricing risk assessment tool which requires taxpayers to disclose to tax authorities much more information than required in the past . . .

Europe

Finland transfer pricing rules analyzed in landmark court rulings

Visa Randell, LL.M., M.Sc. (Econ.), Helsinki, discusses two important transfer pricing decisions of Finlands’ Supreme Administrative Court, released April 2; one concerns a sales company that incurred losses over multiple years and the other involves the tax authority’s attempt to restructure a transaction for transfer pricing purposes . . .

Europe

Taxation of cross-border workers in southern Switzerland uncertain during COVID-19 pandemic

Francesca Amaddeo, Researcher, Tax Law Competence Centre (SUPSI), Manno, Switzerland writes that the taxation of many of the almost 70,000 Italians that formerly crossed the border to work in Switzerland is now uncertain given changes made in response to COVID-19 . . . .

Europe

Synthesized text Ireland-Lithuania tax treaty as amended by MLI released: Irish Revenue→

Asia-Pacific

Synthesized text of Ireland-Singapore tax treaty as amended by MLI released: Irish Revenue→