In a bid to curb profit shifting, Kenya is increasing its transfer pricing documentation requirements. The recently published Kenya Finance Bill seeks to have the ultimate parent entity of a multinational enterprise group or a constituent entity of a multinational enterprise group (MNE’s), which is a tax resident in Kenya, file a country-by-country report.
The tax regimes of the six countries—the Kingdom of Saudi Arabia, the Kingdom of Bahrain, the State of Kuwait, the Sultanate of Oman, the State of Qatar and the United Arab Emirates—that make up the Cooperation Council for the Arab States of the Gulf (better known as the GCC) are evolving and changing rapidly.
Annemarie Wilmore, Johnson Winter & Slattery, discusses the latest developments in the Australian case of Singapore Telecom Australia Investments Pty Ltd v Commissioner of Taxation when the Australian Federal Court issued a further decision on March 22, including its consideration of whether consequential adjustments to the transfer pricing benefit should be made to take into account carryforward losses.
Susi Baerentzen, Carlsberg Foundation Postdoctoral Fellow, analyzes the High Court of Eastern Denmark’s March 28 ruling that dealt another harsh blow to the Danish Ministry of Taxation in the largest-ever transfer pricing case in Danish history regarding a USD 1.5 billion increase of taxable income for the oil business previously owned by A.P. Møller Maersk (now by Total Energies EP).
Dr. Monika Laskowska, Warsaw School of Economics, discusses the Polish Ministry of Finance’s December 2021 binding interpretation of the concept of a controlled transaction for transfer pricing purposes; it has created a few concerns regarding its interpretation since it was first introduced into Polish tax law in 2019.
Aldo Engels, Loyens & Loeff, discusses the Belgian government’s recent decision to increase the effectiveness of transfer pricing audits of MNEs—followed by a new wave of transfer pricing audits initiated in the beginning of 2022—and provides an overview of recent trends in the Belgian transfer pricing audit practice.
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.
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).
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.
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.
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