Latest

Setting aside the General Court’s 2019 decision, the Court of Justice of the European Union on September 16 concluded that the European Commission sufficiently demonstrated that Belgian “excess profits” tax exemptions granted to multinational companies constituted . . .

Europe

Ireland 2022 budget strategy papers address corporate, international tax policies

The Irish Department of Finance on September 16 published a series of papers examining tax policy in advance of Budget 2022, including issues related to corporate tax and international . . .

Africa

India proposes rules to implement farewell to the retro tax

Suranjali Tandon, National Institute of Public Finance and Policy, discusses India’s Central Board of Direct Taxes August 28 publication of a consultation document on proposed rules to remove the controversial retroactive application of a law taxing indirect transfers of assets situated in . . .

Europe

Italian tax agency’s participation exemption interpretation: bull in the china shop

Daniele Majorana, Miccinesi Tax, discusses the Italian tax agency’s recent guidance clarifying that the taxable base of the exit tax must be determined on the difference between the market value of the transferred going-concern, considered as a whole, and the tax value of the . . .

Asia-Pacific

India intercompany financing: debt versus equity and the pricing of intercompany loans

New York City Economist Dr. J. Harold McClure discusses the Mumbai Income Tax Appellate Tribunal’s August 20 ruling against the Indian tax authority in Bennett Coleman & Co Ltd (As successor to Times Infotainment Media Limited) v. Deputy Commissioner of Income Tax, and analyzes the two questions . . .

Europe

‘Single malt’ multinational tax avoidance techniques still being exploited via Ireland-Malta intercompany transfers despite 2019 agreement between the countries to end the practice, charity claims: Pat Leahy / The Irish Times→

Americas

Asia to see disparate impacts from global digital tax reforms, IMF reports

Global tax reform efforts to address digitalization of the economy would likely have modest revenue effects in Asia, on the whole, according to a September 14 report from the International Monetary Fund; however, the effects would be uneven . . .

Americas

India-US bilateral advance pricing agreements and tax benefits for US multinationals

E. Miller Williams, Jr. and Richard L. Slowinski, Alston & Bird, discuss the growing demand for bilateral advance pricing agreements (APAs) between India and the US due to the high potential for adjustments and the risk of . . .

Europe

Finland budget includes corporate tax, R&D, transfer pricing proposals

Finnish Prime Minister Sanni Marin’s 2022 budget proposes several tax provisions impacting corporations with an aim to encourage investment and economic growth in the country, as reported in a September 9 release from . . .

Russia

Russia proposes new taxes on digital services provided by foreign tech firms with aim to spur growth of domestic alternatives: Reuters→

Multinational

Non-OECD, non-G20 countries have joined multilateral tax Inclusive Framework primarily due to combination of EU tax haven ‘naming and shaming’ and acculturation through prior involvement with OECD: Shu-Yi Oei / SSRN→

Americas

Brazilian National Congress approves income tax reform preliminary text

Carolina Becman and Kassia Paulo, Gaia Silva Gaede Advogados, discuss the Brazilian National Congress’s September 2 approval of the preliminary text for income tax reform, making important changes from the original draft and including a reduction in the corporate income tax rate from . . .

Cyprus

Cyprus to introduce transfer pricing legislation

Marios Palesis, T.P. Alfa Services, discusses new transfer pricing legislation that was submitted to the Cyprus parliament in June, defining the persons required to maintain documentation files and report related party transactions, as well describing the type of information . . .

Americas

US House bill adds detail, moderation to corporate tax reform plans

September 13, 2021

Legislative corporate and international tax proposals to fund the Democrats’ budget reconciliation bill unveiled September 12 by House Ways and Means Committee Chairman Richard Neal (D-Mass.) contain the most comprehensive legislative language to date for . . .

Asia-Pacific

UK–Taiwan tax treaty protocol signed

September 13, 2021

On September 13, the UK government published an amending protocol to the tax treaty between the UK and Taiwan, which would amend the . . .

Americas

US Senate bill would amend pass-through rules to address corporate tax abuse

September 10, 2021

Senate Finance Committee Senator Ron Wyden (D-Ore.) released a discussion draft on September 10 for legislation that would tighten rules around partnerships and other pass-through entities to prevent large corporations and wealthy investors from . . .

Europe

Polish Deal introduces new minimum tax for corporations

September 10, 2021

Dr. Monika Laskowska, Warsaw School of Economics, discusses the Polish government’s acceptance of a new tax bill on September 8, including the introduction of a minimum corporate income tax . . .

Accounting

US IRS priority plan adds tax projects on intangibles, hybrids, R&D

September 10, 2021

The US Internal Revenue Service priority guidance plan for 2021–2022, released September 9, lists several new corporate and international tax guidance projects for the coming year, supplementing . . .

Americas

Yellen assures G7 that US tax reform is on track, still shooting for 21% GILTI rate

September 9, 2021

In a September 9 virtual meeting, US Treasury Secretary Janet Yellen told G7 finance ministers that the Biden Administration is “pleased with the progress the U.S. Congress is making” on moving the President’s proposed US international tax reforms and also stressed . . .

Europe

EU is only marginally successful in using state aid doctrine to combat profit-shifting transfer pricing arrangements, but the approach has achieved more so far than legislative remedies: Shafi U Khan Niazi & Richard Krever / Austaxpolicy→

September 9, 2021

Europe

Corporate tax rates down 10 percentage points among OECD, G20, EU countries

September 9, 2021

The combined statutory corporate income tax rates among OECD, G20, and EU countries dropped in parallel from 2000–2021, 10 percentage points in each group, while broadly maintaining their positions relative to each other, according to a September 8 OECD tax . . .

Estonia

Two minimum taxes: US eyes robust rate, while small countries seek carve-outs

The US should raise the minimum tax on corporate foreign earnings to 21% while the OECD works towards a 15% floor on tax competition, according to a September 7 article from two US Treasury officials . . .

Europe

Poland plans minimum tax for large corporations equal to 0.4% of revenues ‘plus 10% of expenses used for tax optimisation purposes’: Reuters→

Asia-Pacific

Australian Taxation Office challenges in court availability of legal professional privilege for tax advice offered by Big 4 accounting firms: Paul McNab / Linkedin→

Americas

US R&D tax incentives will be among least generous unless Congress acts, study finds

The US will drop to a rank of 32nd among a peer group of 34 large economies in terms of its tax support for research and development (R&D) if it allows the new requirement to amortize R&D expense to take effect as scheduled in 2022, according to a September 7 study from . . .

Europe

Ireland clarifies transfer pricing rules for ‘section 110’ companies

September 7, 2021

Irish Revenue on September 6 updated its guidance on qualifying companies under section 110 to address uncertainty regarding the application of transfer pricing rules and . . .

Americas

European banks’ tax haven use persists but varies widely, study finds

September 7, 2021

Large European banks report an average of 20% of their profits in tax havens, but some report more than half of their profits in such jurisdictions while others report none, according to a September 6 report from the EU Tax Observatory . . .

Multinational

Nobel-winning economist Joseph Stiglitz praises global minimum tax efforts but says 15% rate is too low, urges rate of at least 20% to address ‘dark side of globalization’: Brigitte Hagemann (AFP) / Yahoo News→

September 7, 2021

Africa

South Africa seeking to amend tax treaties with Germany, Switzerland, and Eswatini to crack down on tax avoidance and boost tax information exchange: Lameez Omarjee / Fin24→

September 3, 2021

Americas

US international tax reform debate and advocacy gain steam

September 3, 2021

Congressional Republican tax committee leaders sent their Democratic counterparts a letter on September 2 claiming that the Biden Administration is trying to usurp Congress’s lawmaking authority by binding it to a global tax deal, prompting Treasury Secretary Janet Yellen the next day to . . .

Asia-Pacific

Sri Lanka updates transfer pricing rules for country-by-country reporting

September 3, 2021

Ramaly Rahuman, Numerix (Pvt) Ltd, discusses Sri Lanka’s introduction of a new regulation on July 20, effective from fiscal year 2020–21, outlining requirements for country-by-country reporting, the master file, and local file, relying on . . .

Americas

ICAP multilateral tax risk assurance program applications due September 30

Multinational entities interested in participating in the first full round of the OECD Forum on Tax Administration (FTA) International Compliance Assurance Programme (ICAP) have until September 30 to submit the . . .

Australia

Dutch intercompany financing rulings and the transfer pricing of intercompany loans

New York City Economist Dr. J. Harold McClure analyzes a July 16 Dutch Supreme Court decision on intercompany financing and discusses how the terms of the intercompany loan show that the tax authority also could have challenged the intercompany interest rate as . . .

Multinational

Objections to regulatory efforts to curb international tax arbitrage have merit but should not deter international cooperative efforts to tackle exploitation of mismatches in tax laws: Ruth Mason and Pascal Saint-Amans / SSRN→

Americas

US global intangible low-taxed income (GILTI) reform should address diminishing effect the provision has on domestic loss deductions for US companies with concurrent foreign profits: Daniel Bunn / Tax Foundation→