The US Treasury’s 2015–2016 priority guidance plan, released July 31, reveals that the US government intends to develop regulations implementing OECD/G20 base erosion profit shifting (BEPS) plan rules requiring country-by-country reporting by multinational enterprises for transfer pricing risk. . .
Germany and The Netherlands have agreed to immediately begin spontaneous exchange of tax information on some advance pricing agreements (APAs) and on Dutch innovation and patent box rulings, Germany’s . . .
The final version of the rewrite of Chapter 1 of the OECD Transfer Pricing Guidelines concerning delineation of transactions, risk, recharacterization, and special measures will be “quite different” from draft guidance on the topic released last December, Joe Andrus, consultant and former head of the transfer pricing unit at the OECD, said . . .
The French tax administration has released a list of transactions considered to be abusive tax avoidance schemes, including some intergroup arrangements, writes KPMG in an April 6 tax alert. Included on the list are some instances where profits are relocated to a low tax jurisdiction after restructuring, unjustified payments of commissions or royalties, and abuse of tax treaties by inserting a structure to disguise the true beneficiary of a royalty, the firm writes. See, KPMG.
The OECD on February 10 released public comments to three discussion drafts that propose to modify OECD transfer pricing guidelines in response to the OECD/G-20 base erosion profit shifting (BEPS) plan. Eight-three public comments were released . . .
A UN subcommittee is seeking stakeholder comment on a package of draft recommendations designed to assist developing countries formulate policy, craft tax laws, and negotiate tax treaties to meet objectives in taxing the extractive industry. In a November 18 notice . . .
The OECD on Sept. 16 published its first set of deliverables under the OECD/G20 Base Erosion and Profit Shifting (BEPS) action plan along with an official Explanatory Statement
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Nigeria’s Federal Inland Revenue Service (FRIS) has notified nonresident companies that they must include audited financial statements and tax computations of actual profits . . .
The VietNamNet Bridge, in a June 24 report, quotes Bui Van Nam, General Director of Vietnam’s General Department of Taxation (GDT), as stating that the GDT intends to investigate the transfer pricing practices of automobile manufacturers as well as the behavior of international accounting firms . . .
The G20 leaders at their summit in Antalya on November 15-16 endorsed the 13 final reports developed under the G20/OECD base erosion and profit shifting (BEPS) project and . . .
Consensus is emerging among EU finance ministers that the EU Commission’s proposal for automatic exchange of private tax ruling information should be adopted with modifications providing for more limited disclosures and a shorter period of retroactive. . .
The US IRS has published proposed section 367 regulations that eliminate rules that allowed intangibles, including foreign goodwill and going concern value, to be transferred by a US person to a foreign corporation without gain recognition. The Service also released related . . .
Draft South Korean legislation would require taxpayers to submit a master file and a local file consistent with OECD rules, but not a country-by-country report, notes KPMG in an August 20 report. See: KPMG
The Seychelles Revenue Commission has released draft transfer pricing guidance, Public Ruling 2015-3, on the application of arms length principle. The guidance, which . . .
The OECD on March 2 reported on the outcome of regional meetings held with Latin American and Caribbean nations and with Francophone nations designed to incorporate the views of non-OECD nations into OECD base erosion and profit shifting (BEPS) project output.The OECD said that tax officials from 14 Latin America and Caribbean nations gathered at a February 26-27 meeting in Lima, Peru, along with representatives . . .
The Spanish government on January 20 announced that it will issue regulations, expected to become effective January 1, 2016, that will require country-by-country reporting for multinationals, writes EY in a January 23 Global Tax Alert. For details, see EY.
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 . . .
Hong Kong has entered into its first bilateral advance pricing agreement (APA), concluding an agreement with The Netherlands in June, writes EY. Hong Kong’s APA program became operational in March 2012. For more details, see EY (PDF 111 KB)
The OECD on March 11 released a paper on the availability of transfer pricing comparability data for developing countries. The paper was prepared in response to a request by the G8 at its Lough Erne summit, “to find ways to address the concerns expressed by developing countries on the quality and availability of the information on comparable transactions that is needed to administer transfer pricing effectively.” Press Release, Paper
The Luxembourg government today announced that it will appeal the European Commission’s October 21 decision that an advance pricing agreement (APA) issued by Luxembourg to a Fiat subsidiary amounted to illegal. . .
The Australian Taxation Office (ATO) intends to enter into discussions with about 80 multinational enterprises expected to be affected by an antiavoidance law introduced into Parliament . . .
A discussion draft released by China’s State Administration of Taxation on September 17 “is a highly significant document, clarifying the Chinese approach to TP investigations and analysis, introducing new TP methodologies, and significantly expanding TP documentation requirements,” writes KPMG. The new guidance also amends special and general antiavoidance rules. See: KPMG. More: Deloitte, DLA Piper, EY.
The US IRS on September 9 made public training materials designed to assist agents in determining if a taxpayer has shifted income outside of the US in a sale of tangible goods to related parties by failing to properly . . .
In addition to the new documentation rules, the new Spanish law, enacted July 11, revises transfer pricing comparability analysis standards, provides for repatriation following a transfer pricing adjustment, and offers a special advance pricing agreement procedure for Spain’s patent box regime, writes PWC in an August 3 alert. See: PWC. More: EY.
Australia will introduce transfer pricing documentation requirements for multinationals, including country-by-country reporting, consistent with guidance developed under the OECD/G20 base erosion and profit shifting (BEPS) plan, the government announced in 2015 budget papers released May 12. The government also released exposure drafts of legislation for a new targeted antiavoidance rule that is aimed at . . .
South Korea’s parliament has passed a tax reform package which includes a new 10 percent tax on the excess cash reserves of large corporations, a new tax on capital gains from derivatives transactions, more stringent thin cap rules, and reporting requirements for cross-border related party . . .
The Bombay High Court ruled in favor of an Indian subsidiary of Royal Dutch Shell in a November 18 tax case, striking another blow to the Indian tax department’s theory that the transfer or issuance of undervalued shares by an Indian company to an overseas related party should trigger a transfer pricing assessment . . .
UPDATE (11/27/2014): The Bombay High Court’s decision in Shell is now available: see, Shell India Markets Pvt. Ltd. vs. Union of India and ors
Mexico issued regulations on October 16 on the deductibility of pro rata expense allocations made by nonresidents to Mexican entities and individuals, including special rules on the deductibility of services incurred between related parties, writes EY in an October 17 alert. For discussion, see, EY.
India is negotiating about 50 bilateral advance pricing agreements (APAs) with other . . .
Steven D. Felgran and Steven D. Harri have joined AlixPartners as directors in the firm’s global transfer pricing practice. Both will work from AlixPartners’ New York office. Release
About 100 EY firms have contributed to an August report on how the OECD/G20 base erosion profit shifting (BEPS) plan transfer pricing guidelines and documentation rules are being implemented throughout the world. See: EY .
Shane Koball has joined Baker & McKenzie as a director of economics, the firm announced July 14. Koball, who is based in . . .
Poland has proposed amendments to its tax laws that would require some taxpayers to provide additional transfer pricing documentation, including local benchmarking analyses, preparation of a master file, and country-by-country reporting, writes PwC in a May 29 tax alert. See, PwC.
The European Commission on March 18 released a proposal that would require EU states to automatically exchange information about their tax rulings with other EU states. The Commission also announced plans to study the possibility of imposing greater tax transparency requirements on companies operating in the EU. The proposal, first announced by EU Commission President . . .
The Indian government on January 29 explicitly instructed tax officials to apply the rational behind the Bombay High Court’s decision in Vodafone to all cases. Tax officials must follow the principle “that the premium on share issue was on account of a capital account . . .
The Inland Revenue Authority of Singapore (IRAS) on January 6 released updated transfer pricing guidance in an e-Tax Guide, consolidating four previous e-Tax Guides into the document. The 102 page document discusses the application . . .
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