Europe
Transfer Pricing
Europe
EU to delay state aid decisions on tax rulings
The European Commission has been forced to delay decisions on whether countries violated state aid rules by granting private tax rulings to Amazon, Apple, Fiat, and Starbucks, EU competition commissioner, Margrethe Vestager, said May 5 . . .
Europe
Juncker defends Luxembourg tax practices, calls for automatic exchange of private tax rulings
European Commission President Jean Claude Juncker on November 12 said advance tax rulings issued by Luxembourg to multinationals while he was the country’s prime minister were legal even though the rulings helped multinationals avoid tax due other European nations. Juncker was responding the uproar over the release of leaked taxpayer private rulings and tax returns which were . . .
Asia-Pacific
Malaysia 2015 budget expands incentives for business, lowers rates
Malaysia’s 2015 budget, announced October 10, includes a reduction to the corporate tax rate, an expansion of the list of items not subject to GST, corporate tax incentives, an extension of the statue of limitations for transfer pricing adjustments, and increased withholding for real property gains tax writes EY in an October 16 report. For details, see EY.
Europe
NGOs protest EU’s hiring of PWC to assess country-by-country reporting
On behalf of 32 civil society organizations, Eurodad has written to the European Commission protesting the Commission’s decision to hire PwC to assess the impact of proposals to require public disclosure of country-by-country reporting for banks
. . .
Europe
Poland drafting amendements to APA program
Poland’s Counsel of Ministers, on March 18, adopted guidelines to draft legislation that would modify Poland’s advance pricing agreement program, according to KPMG’s Poland office. Read more: KPMG
Asia-Pacific
Japan’s tax agency closes record number of MAP cases
Japan closed 174 mutual agreement procedure (MAP) cases during the fiscal year ending June 30, 2014, a record high, Japan’s National Tax Agency (NTA) said in an . . .
Europe
EU steps up state aid probe into ruling practices of 15 nations, hits Estonia and Poland with injunctions
The European Commission on June 8 escalated its inquiry into whether EU countries’ tax ruling practices provide a selective advantage to companies in violation of state aid rules, asking 15 EU nations to provide the . . .
Europe
EU Joint Transfer Pricing Forum recommends changes to arbitration convention
The EU Joint Transfer Pricing Forum (JTPF) has proposed modifications to the EU Arbitration Convention and revised Code of Conduct to better accommodate transfer pricing disputes. in a report released on its website, the JTPF . . .
Asia-Pacific
Australia releases guidance on transfer pricing documentation and penalties
The Australian Taxation Office (ATO) on December 17 released a final ruling and two practice statements dealing with transfer pricing documentation and penalties. Final ruling TR 2014/8 outlines . . .
Transfer Pricing
EU joint transfer pricing forum releases updated drafts on transfer pricing documentation and arbitration
The European Commission’s Joint Transfer Pricing Forum (JTPF) has released draft papers on improving the functioning of the EU arbitration convention and the EU code of conduct on transfer pricing documentation. The drafts, released in November, were . . .
Featured News
OECD guidance proposes simplified transfer pricing treatment for low value-adding intra-group services
Draft guidance released November 3 would modify the OECD transfer pricing guidelines to provide elective, simplified, transfer pricing rules for low value-adding intra-group services. The guidance was released in response to Action 10 of the OECD Base Erosion and Profit Shifting (BEPS) plan, which directs the OECD to develop transfer pricing rules or special measures “to provide protection against common types of base eroding . . .
Europe
Private tax rulings granted by Luxembourg to Amazon under EU scrutiny
The European Commission on Oct. 7 announced that it has opened an in-depth investigation into whether Luxembourg granted private rulings to an Amazon subsidiary with too favorable terms, potentially violating EU rules on state aid.
The 2003 tax ruling, which is still in force, sets a methodology for the payment of a tax deductible royalty by Luxembourg-based Amazon EU Sàrl to a related limited liability. . .
Asia-Pacific
Europe
Irish government to investigate effect of its tax regime on developing nations
Responding to calls from the G-20 and civil society groups, the Irish government, on April 29, announced that it will undertake a ‘spillover analysis’ to research what effect Ireland’s tax system has on the economies of developing countries. The Irish government will engage consultants to assist with the evaluation and has launched a public consultation, asking interested parties to make submissions on the topic. See Public Consultation.
Featured News
Tax officials endorse OECD VAT guidelines, seek new standards on VAT info exchange, low-value goods, transfer pricing coordination
Tax officials from 104 jurisdictions attending the November 5-6 meeting of the OECD’s Global Forum on VAT endorsed new OECD VAT/GST guidelines on the treatment of cross-border trade in services and intangibles and suggested that the OECD next consider taking on several new VAT . . .
Europe
Tax rulings granted to Starbucks by Netherlands and to Fiat by Luxembourg are illegal state aid, EU Commission rules
The European Commission today announced that it has determined that advance pricing agreements granted to a Starbucks subsidiary by The Netherlands and to Fiat subsidiary by Luxembourg were illegal state aid because they sanctioned the allocation of too little profit to activities in those countries and . . .
Council of the European Union
EU deal on automatic exchange of tax ruling info contains gaps
The European Council on October 6 reached unanimous agreement on a directive that would require EU states to automatically exchange information about private tax rulings with other EU states. The agreement, reached at an ECOFIN meeting in Luxembourg, obliges . . .
Americas
Japan and UK exchange notes on new business profits article for tax treaty
Japan and the UK have exchanged notes on a new article on business profits under the Japan-UK tax treaty, the Japanese government announced July 22. New Article 7 introduces provisions concerning . . .
Council of the European Union
EU finance ministers express support for exchange of tax rulings, reach agreements on harmful tax competition
All EU states support the main objectives of the EU Commission proposal for mandatory automatic exchange of information on tax rulings, according to a report of the outcome of a June 19 ECOFIN meeting in Luxembourg. At the meeting, EU finance ministers also . . .
Asia-Pacific
OECD BEPS Eurasia regional meeting draws tax officials from only six nations
Tax officials that attended an OECD Eurasia regional meeting on base erosion and profit shifting (BEPS) welcomed the OECD’s effort to involve developing nations in the BEPS project, but said that barriers prevent nations in the region from participating, according to a report released March 10. These barriers were apparent as representatives of only six nations attended the regional meeting, held in Ankara, Turkey, on March 5-6.. . .
Europe
UK draft law suggests country-by-country reports will be exchanged via treaties, tax campaigners say
Materials that accompany a UK draft law suggest that OECD/G20 base erosion profit shifting (BEPS) guidance will recommend that country-by-country reporting data be disseminated using a tax treaty mechanism, vastly limiting the scope of the reform, tax campaigners say . . .
Asia-Pacific
China to monitor MNE profit levels and coordinate with other nations to fight BEPS
“China will comprehensively monitor the profit levels of foreign companies to make sure there is no base erosion and profit shifting,” Zhang Zhiyong, deputy director of the State Administration of Taxation (SAT) said December 1, the government’s news agency, Xinhua, has reported. Zhang also said that China intends to . . .
Europe
Slovakia issues new guidance on transfer pricing documentation
The Slovak Ministry of Finance has modified is rules on transfer pricing documentation, writes Zuzana Blažejová of KPMG in an October 22 report. For discussion of the new provisions, see KPMG.
Europe
Roubalsky joins Denton’s Moscow office
Kirill Roubalsky has joined the Moscow office of Dentons as a senior associate in the Tax and Customs practice. Roubalsky, fomerly with Pepeliaev Group, Schekin & Partners and Muranov, Chernyakov & Partners, specializes in tax litigation, general corporate and international tax law and tansfer pricing issues. Release
Europe
EU probes whether tax rulings granted to Apple in Ireland, Starbucks in Netherlands, and Fiat in Luxembourg violate state aid
The European Commission, on June 11, announced that it is investigating whether individual transfer pricing rulings granted to Apple in Ireland, Starbucks in the Netherlands, and Fiat in Luxembourg sanctioned the allocation of too little profit to activities in those countries, thereby amounting to illegal state aid. The Commission has also initiated an infringement action against Luxembourg in connection with the matter.
The decision is part of a wider investigation into whether tax rulings and
. . .
-Update: The Luxembourg Finance Ministry, in a June 12 statement, said it would continue to defend against the Commission’s charges of illegal state aid, and said it still has doubts about the legality Commission requests for information, see statement.
Europe
Netherlands to appeal EU Commission State aid ruling on Starbucks APA
The Netherlands announced November 27 that it will appeal the EU Commission’s October 21 ruling that an advance pricing agreement (APA) granted by the Netherlands to a Starbucks subsidiary amounted to illegal State aid because it sanctioned the allocation of too little taxable profit . . .
Europe
Ireland likely to lose EU state aid case involving Apple – Bloomberg Business
“Ireland will probably face censure from European authorities within months in relation to its tax dealings with Apple Inc.,” write Gaspard Sebag and Joe Brennan of Bloomberg Business, quoting unnamed sources. See: Bloomberg Business.
Americas
US Treasury should suspend work on regulations implementing country-by-country reporting say Ryan and Hatch
US Senate Finance Committee Chairman Orrin Hatch (R-UT) and House Ways and Means Chairman Paul Ryan (R-WI) today sent a letter to Treasury Secretary Jack Lew asking Treasury stop work on a regulation project to . . .
Americas
Canada signs 31 APAs in FY 2014/2015
Canada signed 31 advanced pricing arrangements (APAs) in FY 2014/2015, the most in five years, according to data released August 20 by the Canadian Revenue Agency (CRA). A total of 29 bilateral and 2 unilateral . . .
Asia-Pacific
China and South Korea sign bilateral APA
China and South Korea have signed a bilateral advance pricing agreement, the Chinese goverment announced in a June 23 English-language release. The signing took place during a Sino-South Korea tax commissioners meeting . . .
Asia-Pacific
India, Japan to settle transfer pricing disputes under MAP
India and Japan are poised to resolve about 15 transfer pricing disputes under the mutual agreement procedure involving the automobile industry and large trading houses, writes Jayshree P Upadhyay of the Business Standard in a May 27 article. India also expects to soon resolve transfer pricing disputes involving the UK and France. See, Business Standard.
Americas
Canadian guidance addresses use of multiple year data in transfer pricing
The Canadian Revenue Agency (CRA) has issued guidance on the use of multiple year data in determining the arm’s length price in transfer pricing cases. The guidance also address the use of statistical tools . . .
Asia-Pacific
India extends time to apply for rollback of APAs
Responding to taxpayer requests, India’s Central Board of Taxation on March 31 announced an extension of the deadlines to apply for rollback of an advance pricing agreement (APA) for existing APAs and pending APA applications. June 30 is now the deadline to apply . . .
Europe
EU Commission seeking new members for transfer pricing advisory group
The European Commission, in January 26 announcements, has requested applications from transfer pricing specialists to serve on the EU Joint Transfer Pricing Forum (JTPF). The. . .
Europe
Italy’s Parliament weighing new patent box regime
A bill introducing a patent box regime in Italy consistent with the OECD’s nexus approach was submitted to the Italian Parliament in October, writes PwC in a December 2 article. PwC notes that to be eligible for tax benefits under the bill, most taxpayers would need to enter into an advance pricing agreement with revenue authorities. For a detailed discussion of the new provisions, see PwC. See also, DLA Piper, Società Italiana Brevetti
Asia-Pacific
Americas
US official says some countries want conditions placed on access to BEPS project’s country-by-country reporting data
Countries negotiating the OECD/G-20 base erosion profit shifting (BEPS) guidance have advanced a proposal to require countries that seek access to country-by-country reporting data to first to agree to enhanced dispute resolution, a US Treasury official said on Sept 17.
Speaking during a Deloitte webinar, Robert Stack, US Treasury Deputy . . .
Americas
Law firm reports on U.S. Mulitstate Tax Commission’s transfer pricing meeting
Sutherland Asbill & Brennan LLP has provided a report of a July 28 meeting of the Multistate Tax Commission’s Arm’s Length Adjustment Services Advisory Group, which is creating a transfer pricing model for the U.S. states and is considering ways to improve the states’ ability to analyze intercompany transactions. See, Sutherland SALT report.
