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Americas
US Tax Court decision has big implications for non-US partners in US partnerships
Monte A. Jackel, Senior Counsel at Akin, Gump, Strauss, Hauer & Feld, discusses the implications of the US Tax Court’s July 13 decision in Grecian Magnesite Mining, Industrial & Shipping Co. SA v. Commissioner, where the Court rejected the IRS’s aggregate approach for taxing a foreign partner’s gain on the redemption of its US partnership interest and concluded that the foreign investor was not subject to US taxation . . .
Asia-Pacific
India’s multilateral instrument choices: a quick run-through
Sriram Govind, a research and teaching associate at the Institute for Austrian and International Tax Law, discusses India’s choices for the multilateral instrument and possible implications to its tax treaty network . . .
Asia-Pacific
What the Chevron decision means for Australia and transfer pricing worldwide
Nick Drizen of BDO Australia discusses the Australian Full Federal Court’s landmark decision in Chevron, providing insight into transfer pricing for intercompany loans . . .
Americas
Mexico: transfer pricing documentation and country-by-country reporting rules finalized
Yoshio Uehara, César De la Parra, and Ignacio Mosquera of Chevez, Ruiz, Zamarripa, analyze final rules, issued by the Mexican tax authorities April 3, that implement the transfer pricing documentation and country-by-country reporting scheme set out in Action 13 of the OECD/G20 base erosion and profit shifting (BEPS) plan agreements . . .
Europe
No withholding tax exemption for dividends paid to Dutch UCITS parent, court rules
Dublin-based tax specialist, JP Canavan, discusses a March 8 ruling of the Court of Justice of the European Union which concludes that dividends paid by a Belgian subsidiary to its parents, both Dutch UCITS, do not qualify for an exemption from Belgian withholding tax under the EU Parent-Subsidiary Directive . . .
Asia-Pacific
New India GAAR circular aims for clarity but remains unsatisfactory
Sriram Govind of the Institute for Austrian and International Tax Law discusses a circular issued by the Indian government January 27 which contains welcome clarifications on India’s coming GAAR but also includes statements that will likely increase confusion, such as how the GAAR will be applied in some cases involving tax treaties . . .
Europe
Italian tax agency issues first investment ruling, addresses logistics hubs
Davide Anghileri of the University of Lausanne discusses Italy’s January 17 release of its first investment ruling, which clarifies when a logistics hub located in Italy is a permanent establishment and covers the VAT treatment of goods flowing through such hubs . . .
Europe
Germany proposes tax deduction limits on royalties paid to related companies
Berlin-based tax specialist Ninja-Antonia Reggelin discusses a draft German law published in late December by the finance ministry which is designed to counter harmful foreign country tax practices through the disallowance of tax deductions for royalty payments made to related companies. . .
Belgium
Belgium’s “fairness tax” conflicts with Parent-Subsidiary Directive, EU court advisor argues
Belgium’s fairness tax is incompatible with the EU Parent-Subsidiary Directive, Juliane Kokott, Advocate General of the Court of Justice of the European Union (CJEU), concluded in an opinion issued today. Under a 2013 . . .
Europe
Switzerland to propose tax break for multinational banks
Switzerland’s Federal Council, on September 30, directed its finance ministry to write tax rules to facilitate accumulation of capital by large multinational banks, reducing the tax burden associated with issuing certain financial instruments to group members, writes Davide Anghileri, a PhD researcher and lecturer, University of Lausanne, Switzerland . . .
Americas
Ireland granted Apple illegal state aid through tax rulings sanctioning stateless income, EU says
The European Commission on August 30 announced it has concluded that Ireland granted Apple about €13 billion (USD 14.5 billion) in illegal state aid by issuing tax rulings to the company that inappropriately lowered its tax liability in 2003–2014. To restore fair competition, Apple must repay the aid to plus interest, the Commission said. The determination comes after a two year investigation . . .
More:
Apple CEO calls state aid decision “political crap”: Los Angeles Times→
Obama to address Apple decision at G20: AP→
Irish Cabinet agrees to appeal Apple decision: RTE News→
Featured News
OECD draft tackles multinational corporation tax avoidance though payments to branches
The OECD today released a draft report for countries that seek to improve their laws to counteract tax avoidance by multinationals through “branch mismatch structures.” The draft targets situations where a multinational group arranges its affairs to . . .
Europe
Leaked EU anti-tax avoidance directive includes interest deduction limits, GAAR, exit tax
A proposed EU anti-tax avoidance directive, to be presented this month by the European Commission, will include rules limiting interest deductibility, a general antiabuse rule (GAAR), controlled foreign company rules, hybrid mismatch . . .
Europe
Americas
Digital Economy
Asia-Pacific
Americas
Featured News
G20 finance ministers consider digital economy taxation, crypto-assets, future technologies
G20 finance ministers and central bank governors, during their July 21–22 Buenos Aires, Argentina, meeting reaffirmed their commitment to reach multilateral agreement on the taxation of the digital economy. The ministers also agreed that crypto-assets could be used for tax evasion, endorsed a paper that makes tax policy recommendations . . .
Europe
Asia-Pacific
Indian transfer pricing case could signal new approach for advertising, promotional expense
India transfer pricing specialist Ajit Jain discusses a tribunal decision that adopts a new way to analyze advertisement, marketing, and promotional expenses for transfer pricing purposes. . .
Featured News
Over 100 countries adopt multilateral convention to close tax treaty loopholes, improve international tax system
On 24 November more than 100 jurisdictions concluded negotiations on a multilateral instrument to swiftly implement a series of tax treaty measures to update the international tax rules and diminish the opportunity for tax avoidance by multinational enterprises, writes Davide Anghileri of the University of Lausanne . . .
Asia-Pacific
Hong Kong sets out plan to adopt BEPS tax measures, revamp transfer pricing laws
Hong Kong’s priorities for implementing the OECD/G20 base erosion profit shifting (BEPS) project include adopting the four BEPS minimum standards and putting in place a legislative framework for a new transfer pricing regulatory regime, according . . .
Africa
Multinationals asked to assess MAP tax dispute resolution in US, UK, Belgium, Canada, Netherlands, Switzerland
The OECD has today asked international business to report grievances about the mutual agreement procedure (MAP) for resolving cross-border tax disputes in the US, UK, Belgium, Canada, Netherlands, and Switzerland. The OECD seeks responses to a . . .
Belgium
EU court denies Belgium’s request to suspend State aid decision on excess profit tax ruling regime
The EU General Court of Justice on July 19 dismissed Belgium’s application to temporarily suspend an EU Commission decision that concludes that Belgium’s excess profits tax ruling system granted illegal State aid . . .
Americas
IRS says Facebook’s valuation of IP transfer to Ireland may have been understated by billions of dollars
A US Department of Justice lawsuit filed in Federal court on Wednesday reveals that the IRS believes that Facebook may have significantly undervalued a transfer of intellectual property . . .
Americas
More multinationals applying for US advance pricing agreements, statistics show
The US IRS on March 31 released statistics on the performance of the IRS’s Advance Pricing Mutual Agreement Program (APMA), revealing that taxpayers submitted . . .
Africa
Europe
Europe
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Europe
Asia-Pacific
Featured News
Council of the European Union
EU adopts directive halting multinational tax avoidance through hybrid mismatches with third countries
Davide Anghileri of the University of Lausanne writes about today’s decision by the Council of the European Union to adopt a directive regarding hybrid mismatches with third countries, known as ATAD 2 . . .
Americas
Amazon wins $1.5 billion transfer pricing dispute in US Tax Court
Amazon.com Inc on March 23 won a US Tax Court case, fending off IRS transfer pricing adjustments relating to payments under a cost-sharing agreement (CSA) with a Luxembourg subsidiary. The transfer pricing adjustments would have increased. . .
Europe
Ireland’s legal arguments in Apple State aid tax case published
Mary Cosgrove, a tax lecturer at the J. E. Cairnes School of Business & Economics at the National University of Ireland, discusses Ireland’s arguments in the Apple State aid case before the Court of Justice of the European Union, as revealed in the government’s summary of legal proceedings, released today . . . .
Europe
Luxembourg must allow court challenge to validity of French tax information exchange request, CJEU Advocate General says
EU law requires that a company be given the opportunity to challenge a tax information order issued to implement a tax exchange of information request on the grounds that the request lacks “forseeable relevance,” Advocate . . .
