UK proposes MNE “diverted profits” tax, releases consultation on hybrid mismatches

The UK government will introduce a new “diverted profits tax” to ensure that multinational corporations pay the correct about of tax, British Chancellor of the Exchequer, George Osborne, announced December 3 in his Autumn Statement. The UK also released a consultation on hybrid mismatches, and Osborne reaffirmed the UK’s intention to introduce country-by-country reporting for . . .


Poland releases draft general antiavoidance law

The Polish government on Sept 10 released draft general antiavoidance legislation as well as procedures for obtaining advance tax rulings to confirm that intended transactions do not qualify as abusive, write Karina Furga-Dąbrowska and Rafał Mikulski of Dentons in a Sept. 15 post. For a detailed discussion of the tax proposal, see Dentons.


Russian Bill Would Introduce CFC Regime

Russia’s Ministry of Finance, on March 18, published a bill introducing controlled foreign company (“CFC”) rules to the Russian tax laws. The bill also deems a foreign company as a Russian tax resident when the company’s management is in Russia and taxes sales of shares in an entity where the entity’s assets consist of indirectly owned Russian real property. For analysis, see CMS Bureau Francis Lefebvre, Laggan & Associates Ltd, Debevoise & Plimpton LLP, EY


UK outlines priorities for countering base erosion and profit shifting

HM Treasury and HM Revenue and Customs have released a position paper outlining the UK’s priorities for the ongoing work with G20 and OECD taking forward the 15 point Action Plan to counter Base Erosion and Profit Shifting.

The paper includes proposals for new international rules to address cross-border business structures or finance transactions, a disclosure scheme for international tax schemes, and the creation of a single Large Business Directorate within HMRC.

HM Treasury and HM Revenue and Customs


UK challenge to EU transaction tax is premature, rules ECJ

The European Court of Justice on April 30 dismissed the UK’s challenge to a EU Council decision that authorized 11 nation negotiations on a financial transaction tax. “The arguments relied on by the United Kingdom are directed at the elements of a future tax and not at the authorisation to establish enhanced cooperation,” the court said in a statement following the judgement. See, United Kingdom v Council, Press Release (164 KB).