Europe
United Kingdom
Europe
Amazon stops routing some European profits through low-tax Luxembourg
Amazon has confirmed that as of May 1 it began booking profits from sales in the UK, Italy, Spain, and Germany in the country where the sale actually took place rather than in low-tax Luxembourg. See, New York Times, Wall Street Journal, Financial Times, The Independent, International Business Times, The Guardian, Tim Scott – Tax is an Accrual Business, Out-Law.com
Europe
ECJ should abandon Marks & Spencer exception for cross-border loss relief says advocate general
European Court of Justice Advocate General Juliane Kokott in an October 23 opinion advised the ECJ to abandon the Marks & Spencer exception for loss relief for foreign group members and sanction UK legislation that restricts such loss relief.
Kokott said the . . .
Croatia
UK and Croatia sign tax treaty
The UK and Croatia on January 15 signed a tax treaty in Zagreb, the UK’s HM Revenue and Customs has announced. The treaty would replace the UK/Yugoslavia Double Taxation Convention which both countries are currently . . .
Europe
UK releases regulations to implement country-by-country reporting
The UK on October 5 released draft regulations to implement country-by-country tax reporting to tax authorities . . .
Asia-Pacific
Australia and UK push for coordinated action to stop MNEs from diverting profits
Australia and the UK have asked G20 nations to join them in an effort to stop the diversion of profits by multinational enterprises, in an initiative designed to go “further and faster” than the OECD’s base erosion and profit shifting (BEPS) plan, Australia’s . . .
Bulgaria
UK and Bulgaria sign double tax treaty
The UK’s HM Revenue and Customs on March 30 announced that the UK and Bulgaria signed a double tax treaty on March 26. The agreement will enter into force . . .
Europe
‘Lux Leaks’ docs prove that PwC sells tax avoidance schemes, UK MPs say
The “Lux Leaks” documents confirm that PwC marketed tax avoidance schemes and reveal that statements made by PwC’s UK head of tax at a parliamentary hearing were “lies,” UK lawmakers charged at a House of Commons Public Accounts Committee (PAC) hearing on the role of accounting firms in multinational tax avoidance. PwC’s Kevin Nicholson was recalled before PAC MPs on December 8 to explain . . .
Europe
“Facebook pays no UK corporation tax for a second year,” by Mark Sweney, The Guardian
“Facebook pays no UK corporation tax for a second year,” by Mark Sweney, The Guardian
Americas
UK says CFC exemption does not apply if tower structure is replaced with CFC finance company
The UK HMRC on October 18 published supplementary guidance on anti-avoidance rules that exclude some creditor loan relationships from being considered “qualifying loan relationships” for purposes of the controlled foreign companies (CFC) finance company exemption. The guidance notes that the OECD/G20 base erosion profit shifting project and potential changes in US tax laws, such as laws targeting the use of hybrid entities . . .
Europe
UK to implement OECD hybrid mismatch proposal with special rules for banks and insurers
The UK’s HM Treasury announced on October 6 that the UK government intends to propose rules to address hybrid mismatch arrangements consistent OCED/G20 base erosion profit shifting (BEPS) plan guidance on the topic.
The government will publish a consultation on . . .
Europe
UK releases draft reporting requirements for extractive and logging industries
UK registered logging, mining, gas, and oil companies will be required to report payments made to the governments of all the countries they operate in for financial years from January 1, 2015, the UK government has announced.
The new draft reporting requirements, released August 21, implement . . .
Europe
U.K. updates guidance on payments between related companies to avoid tax
The U.K.’s HM Revenue and Customs, on July 24, released a revised guidance note under S1305A CTA 2009, concerning transactions between related companies that are designed to disguise profit distributions . . .
Americas
UK and Canada sign protocol to tax treaty
The UK and Canada, on July 21, signed a protocol and interpretative protocol to the countries’ double tax convention. The agreement provides for a zero rate of withholding tax on dividends to registered pension funds and updates treaty provisions on business profits, the mutual agreement procedure and arbitration, exchange of information, and assistance in collection. Protocol and Interpretative Protocol (PDF 63K), Release
Africa
UK announces plans to begin tax treaty negotiations with several nations
In a paper released November 13, the UK’s HMRC has announced that it will begin tax treaty negotiations with Nepal, Romania, Trinidad, Tobago . . .
Europe
UK and Sweden sign double tax treaty
The UK’s HM Revenue and Customs on March 30 announced that the UK and Sweden signed a double tax treaty on March 26. The agreement . . .
Europe
UK releases FATCA registration guidelines
The UK’s HMRC released guidelines February 24 on how to register for the Foreign Account Tax Compliance Act (FATCA) using HM Revenue and Customs online . . .
Europe
Germany, UK agree to limits on patent box
The UK and Germany have agreed to a joint proposal on harmful tax practices which limits the patent box tax break, writes Reuters, quoting unnamed German government officials. The countries will present the proposal to the OECD Forum on Harmful Tax Practices. For details, see Reuters.
Americas
UK removes requirement to file nil FATCA returns, says holding and treasury companies need not report
The UK’s HM Revenue Customs on April 13 notified UK financial institutions that UK FATCA guidance will be amended to remove the requirement to file nil returns and to no longer require FATCA reporting by most holding and treasury companies. HMRC said the US IRS has changed its . . .
Europe
PwC sells mass-marketed tax avoidance schemes, UK MPs conclude
Tax arrangements that PwC promoted in Luxembourg, revealed through the “Lux Leaks” scandal, bear all the hallmarks of a mass-marketed tax avoidance scheme, according to a UK Public Accounts Committee report . . .
Europe
Europe
Some revisions planned for UK diverted profits tax
A few changes will be made to the UK’s controversial diverted profits tax in the final version of the legislation, set to be introduced next week, according UK budget documents released March 18. Proposed legislation to add country-by-country reporting requirements for MNEs . . .
Austria
New plan for EU financial transaction tax would widen its base and lower rates
EU finance ministers have renewed their push to enact a financial transaction tax among the EU states, with some agreeing to a phased timetable for the introduction of the tax, and others expressing support for a new plan to widen the tax base, particularly with respect to derivative products. In a statement released January 22, Austrian finance minister Hans Jörg Schelling . . .
Europe
PwC UK’s tax chief to testify on large accounting firms’ role in tax avoidance
PwC’s Kevin Nicholson has been called to testify before the UK House of Commons Public Accounts Committee (PAC) to discuss the role of large accountancy firms in multinational tax avoidance. The hearing will give PAC committee lawmakers the opportunity to grill Nicholson, who is head of tax at PwC UK, on the “Lux leak” documents . . .
Belgium
EU Commission will scrutinize ‘Lux Leaks’ tax rulings for state aid violations, says competition chief
The European Commission intends to analyze leaked Luxembourg private tax rulings for evidence of illegal state aid, the European Union’s new competition chief, Margrethe Vestager, said November 20. “We consider the Lux-Leaks documents as market information. We will examine [them] and also therefore evaluate whether or not this will lead us to . . .
Europe
Graham Iversen to join Greenberg Traurig’s London office
Tax attorney Graham Iversen will join the global tax practice of Greenberg Traurig LLP in London. Iversen will leave Slaughter and May, where he worked for 14 years on tax issues associated with mergers and acquisitions, structured finance, private equity, corporate reconstructions, and public debt and equity. Release
Europe
UK says it is reviewing ECJ Skandia ruling on VAT groups
The UK’s HMRC has released a revenue and customs brief concerning the impact in the UK of the European Court of Justice judgment in the Skandia America Corp. case . . .
Americas
UK releases FATCA schema and supporting documents
The UK on Sept. 29 released the FATCA schema and supporting documents in advance of the availability of the FATCA service. See, release.
United Kingdom
Europe
UK and Kosovo sign tax treaty
The UK and Kosovo on June 4 signed an agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital. See:, Treaty.
Americas
India/US transfer pricing deal anticipated
The India expects to sign an agreement with the US on Sunday that sets out a framework to resolve mutual agreement procedure disputes concerning the appropriate markup to apply to related-party transactions, and hopes to sign similar agreements with the UK, France, and other European nations, writes Jayshree P. Upadhyay of Business Standard in a January 24 article, quoting an unnamed tax official. See, Business Standard.
Europe
UK Treasury official responds to critics of controversial diverted profits tax
The UK’s proposed diverted profits tax has been drafted to withstand legal challenges and will complement, rather than conflict with, ongoing OECD work on base erosion and profit shifting (BEPS), a Treasury official said January 7 during a parliamentary debate on the new tax. The official also said that while some MNE profit shifting involving loans is excepted from the diverted profits tax, Treasury is working on the issue in . . .
Africa
Europe
UK corrects errors in diverted profits tax guidance
The UK on April 20 corrected an errors in its interim guidance on the diverted profits tax. Language was modified in DPT2010 on page 66 concerning the duty to notify and a factual description . . .
Europe
UK consults on regulations providing double tax relief for entities subject to UK and Netherlands bank taxes
The UK on December 23 released a consultation on draft regulations for double taxation relief for groups and entities within the charge to the UK bank levy and the Netherlands bank tax, where the Netherlands is the home state of the entity or group. See, consultation.
Europe
UK proposes regulations on taxation of corporate debt and derivative contracts
The UK’s HM Revenue and Customs on October 2 released four sets proposed regulations governing taxation of corporate debt and derivative . . .
Europe
UK will oppose consolidated corporate tax base says German MEP – The Guardian
The UK’s financial secretary to the Treasury, David Gauke, told German MEP Michael Theurer on June 18 that the UK will oppose an EU-wide common consolidated corporate tax base (CCCTB) because the UK prefers tax competition, The Guardian reports. See. The Guardian.
Americas
US denial of foreign tax credit for substitute dividend payments upheld by court
A US district court, in the case of Lehman Brothers Holdings Inc. v. US decided May 8, disallowed a US taxpayer’s claim for a foreign tax credit under the US-UK tax treaty for withholding taxes imposed on substitute dividend payments received by its wholly owned US subsidiary from its UK subsidiary pursuant to back-to-back stock loan transactions, EY writes in a May 19 tax alert. See: EY .
Europe
UK publishes bill implementing corporate rate reduction, bank tax, other tax measures
The UK government on July 15 published the Summer Finance Bill 2015 to tax implement tax changes announced in last week’s budget and earlier proposals. The bill implements a proposed . . .
