Milena Kaniewska-Srodecka, CrossBorder Solutions, discusses the rapidly evolving transfer pricing landscape in Poland, which is now quite challenging for compliance teams to navigate; even as the tax law in this area seems to be becoming more simplified on the one hand, there are still areas of dispute on the other, some unexpected obstacles, and the increasing consequences for noncompliance.
Jack Taylor, University of Minho, discusses the long-term implications of the U.S. Court of Appeals for the Sixth Circuit’s March 2 reaffirmation of the previous December 2021 decision in Whirlpool v. Commissioner of Internal Revenue, which held that Whirpool must pay taxes on USD 45 million in income.
New York City Economist Dr. J. Harold McClure analyzes the French Court of Appeal’s January 25 ruling in favor of the multinational in a somewhat involved intercompany financing pricing issue in a decision in case number 20VE00792; SAS Electricité de France International (SAS EDFI) is France’s largest electricity provider and owns the UK affiliate EDF Energy UK Ltd (EDFE).
Dragos Dancau, Ericsson, discusses the European Court of Justice’s March 10 publication of the opinion of Advocate General Collins in C-538/20 Finanzamt B v W AG; the case leaves questions the German referring court raised on how previous cases should be interpreted and shows the maze in analyzing the deduction of the final losses of a nonresident PE within the EU.
Peter Hongler, University of St. Gallen, predicts Switzerland will likely change its constitution because of Pillar Two—a proposal to address global profit shifting by imposing a global minimum tax of at least 15%—and took its first step in that direction by opening a public consultation on the OECD/G20 minimum tax plan for multinationals on March 13.
Leopoldo Parada, University of Leeds School of Law, analyzes the three grounds of appeal in the Fiat Chrysler Finance Europe v Commission case and warns that if the European Court of Justice agrees to follow the Advocate General’s opinion, there may be important ramifications that go beyond this transfer pricing case.
Allan Lanthier, a former advisor to the Canadian government, warns it’s time to hit the emergency brake on the OECD’s model rules for Pillar Two; while close to 140 countries agreed to the October 2021 framework, they didn’t agree to these new model rules, which introduce a lot of uncertainty and complexity.
Pilar Barriguete and Victoria Arozamena, Kroll Advisory, S.L., discuss Spain’s recent tendency to challenge intragroup services, denying its corporate income tax deductibility; this view is most recently reflected in the Spanish National Court’s January 25 ruling that it did not consider the provision of intragroup services to be sufficiently proven in the absence of a written contract.
Susi Baerentzen, Carlsberg Foundation Postdoctoral Fellow, discusses a recent transfer pricing ruling from the High Court of Eastern Denmark in a case on the application of the EU Arbitration Convention and mutual agreement procedures; this ruling is an indication that settling disputes by arbitration is an outcome that will become ever more important in the future of Danish tax law.
Arturo Treviño Villarreal, Fratelli Consultores, discusses several changes to Mexico’s 2022 tax reform that are having significant implications for both domestic taxpayers and nonresidents, triggering an array of tax reporting and compliance obligations that could impact cross-border transactions of MNEs operating in the country.
Oliver Treidler and Tom-Eric Kunz, TP&C, analyze the current transfer pricing landscape in Germany, following the plethora of updates to regulations and administrative principles in 2020 and 2021, which has led to considerable uncertainty regarding tax audits as well as an increased compliance burden.
Nyasha Nigel Machiri, HLB Zambia, discusses the OECD announcement that it is seeking public comment by February 18 on recently released draft model rules with respect to nexus and revenue sourcing under Amount A of Pillar One as part of the ongoing work of the OECD/G20 Inclusive Framework on BEPS to implement the two-pillar solution.
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