India has signed 11 more unilateral advance pricing agreements (APAs) with multinationals, bringing total APAs signed by the government so far this fiscal year to 22, the India’s Central Board . . .
Senior OECD officials provided an overview the 13 final reports issued under the OECD/G20 base erosion and profit shifting plan (BEPS) during two webcasts that aired October 5, just after the reports were released. Discussion covered all 15 action items, including . . .
The US IRS on September 2 released temporary and proposed regulations on the application of the section 956 deemed dividend rules to partnership transactions. Regs were also issued providing that a controlled foreign corporation (CFC) must conduct relevant activities itself to take advantage of the foreign personal holding company income (FPHCI) active rent and royalties exception, including in situations where a cost sharing . . .
China’s State Administration of Taxation (SAT) on March 18 announced that it will no longer permit deductions for royalty fees paid to an overseas related party that did not contribute to the creation of the intangible asset or allow deductions for fees paid to an overseas related party for services that do not provide economic benefit to the subsidiary, writes Dezan Shira & Associates in the March 25 edition of the China Tax Briefing. In its guidance, . . .
The Indian government will not appeal the Bombay High Court’s decision in Vodafone, accepting the Court’s conclusion that transfer pricing laws can not be used to tax an Indian subsidiary’s issuance of shares at a premium to its overseas parent. The decision was announced by Telecom minister Ravi Shankar Prasad during a January 28 press conference following a Union Cabinet meeting. Prasad noted that the Bombay High Court . . .
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UPDATE (1/29/2015): India to apply principles in Vodafone transfer pricing ruling to all cases: 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 tax cases. Tax officials must follow . . .
A tax bill tabled in South Africa’s parliament on October 22 proposes taxpayer-favorable changes to Section 23M of the Income Tax Act, which limits interest that can be deducted on loans from a person that is an a “controlling relationship,” with the debtor, notes KPMG in an October report. For details, see KPMG.
Sutherland Asbill & Brennan LLP has provided a detailed account of an October 6 meeting of the US Multistate Tax Commission’s Arm’s Length Adjustment Services Advisory Group, where seven external economic firms provided advice on ways the MTC could assist states with their transfer pricing challenges. For detailed discussion, see Sutherland Asbill & Brennan.
The Indian tax authority may soon sign advance pricing agreements with Japan and India, reports Remya Nair of LiveMint.
The Indian government has published final transfer pricing rules that allow use of multiple year data for comparability purposes and introduce the use of a range to determine arm’s length . . .
Government and OECD tax officials at a February 17 OECD hearing suggested that, contrary to business representative assertions, a 30 percent of EBITDA fixed ratio is too high to effectively combat excessive multinational corporation interest deductions. Officials suggested that a lower percentage is appropriate for guidance on interest deductions being drafted under the OECD/G-20 base erosion and profit shifting (BEPS) plan. The day-long hearing concerned draft BEPS guidance under action 4, released December 18, that would limit . . .
An advance pricing agreement (APA) issued to Amazon by the Luxembourg tax authorities setting the price of intra-group royalties seems to be designed to ensure a predictable level of profit to Amazon’s Luxembourg operations rather than to achieve an arm’s length result, and thus appears likely to be state aid, the European Commission . . .
Taiwan’s tax authority, in an English-language release issued January 8, provided a brief description of transfer pricing disclosure and documentation requirements that must be met by profit-seeking enterprises when filing their annual income tax return. See, release.
The Australian tax office (ATO) has revoked six advance pricing agreements (APAs) with multinationals within the last six months because the government had been misled and the companies were engaging in aggressive tax planning, reports Nassim Khadem of the Brisbane Times in a November 7 report, quoting ATO deputy commissioner, Mark Konza. Konza also said the ATO is reviewing the activities of 80 high risk multinationals. See, Brisbane Times.
OECD and G20 country tax officials have agreed that minimum standards should be added to tax treaties to prevent treaty shopping; have decided on the content required for transfer pricing documentation, including country-by-country reporting; and have narrowed the scope of hybrid mismatch proposals, OECD officials said during a Sept 16 OECD webinar introducing the first seven OECD base erosion profit shifting (BEPS) deliverables.
The OECD guidance, released as part of . . .
The Australian Taxation Office, on April 17, released four documents providing guidance on the transfer pricing laws . . .
The OECD has released a discussion draft on transfer pricing documentation and country-by-country reporting in response to action item 13 of the base erosion and profit shifting (BEPS) plan. Action 13 calls for a review of the existing transfer pricing documentation . . .
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