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.
Singapore and Uruguay signed a tax treaty on January 15, Singapore’s Inland Revenue Authority has announced. The agreement clarifies . . .
The Cayman Islands will not adopt a public central register of beneficial owners of companies and other entities, the government confirmed December 30, in a report following a consultation on the matter. The government did commit to improving its current system of providing beneficial ownership information to law enforcement, tax, and regulatory
. . .
Indonesia is conducting a review of all tax treaties with other nations to determine if they promote tax avoidance and is considering temporarily suspending them, Finance Minister Bambang Brodjonegoro told reporters November 21, according to mulitple reports by the Indonesian press. See, Katadata (in Indonesian), Merdeka (in Indonesian).
The UK HMRC on October 18 published supplementary guidance on anti-avoidance rules that exclude some creditor loan relationships from being considered “qualifying loan relationships” for purposes of the controlled foreign companies (CFC) finance company exemption. The guidance notes that the OECD/G20 base erosion profit shifting project and potential changes in US tax laws, such as laws targeting the use of hybrid entities . . .
Arlene Fitzpatrick, who served as an Attorney Advisor in the US Department of Treasury’s Office of Tax Policy, has rejoined Ernst & Young, the firm announced on November 6. Fitzpatrick will work on international tax issues at Ernst & Young’s Washington, DC office. Fitzpatrick was with US Treasury for four years. Prior to that, she was with Ernst & Young for 11 years. See, EY release.
Even if Ireland eliminates the Irish incorporated non-resident company, as proposed in 2015 Irish budget, the tax benefits of the “double Irish Dutch sandwich,”can still be achieved by setting up a Irish company managed and controlled in Malta or the UAE instead of a Caribbean nation because of provisions in Ireland’s existing tax treaties with those nations, writes Jeffrey L. Rubinger and Summer Ayers LePree of Bilzin Sumberg Baena Price & Axelrod LLP in an October 23 website post. See, Bilzin Sumberg.
A European Commission report released October 23 estimates that €177 billion in VAT revenues was lost due to non-compliance or non-collection in 2012. The VAT Gap study provides VAT collection trends among 26 EU Member States and analyzes the impact that the economic climate and policy decisions have on VAT revenues. See, report (985 kB), release.
The US IRS on October 9 released guidance on what constitutes a “transaction” for purposes of section 7701(o), which disallows tax benefits when a transaction lacks economic substance. The guidance also clarifies when the IRS will apply related penalties provisions of Section 6662(b)(6).
The IRS states that a “transaction” under . . .
The UK’s HM Treasury announced on October 6 that the UK government intends to propose rules to address hybrid mismatch arrangements consistent OCED/G20 base erosion profit shifting (BEPS) plan guidance on the topic.
The government will publish a consultation on . . .
The Seychelles has committed to automatically exchanging tax information, according to an August 28 joint press release issued by HM Treasury and David Gauke MP. Release
UK registered logging, mining, gas, and oil companies will be required to report payments made to the governments of all the countries they operate in for financial years from January 1, 2015, the UK government has announced.
The new draft reporting requirements, released August 21, implement . . .
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 . . .
The UK and Canada, on July 21, signed a protocol and interpretative protocol to the countries’ double tax convention. The agreement provides for a zero rate of withholding tax on dividends to registered pension funds and updates treaty provisions on business profits, the mutual agreement procedure and arbitration, exchange of information, and assistance in collection. Protocol and Interpretative Protocol (PDF 63K), Release
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 Australian Treasury, on June 19, released a discussion draft on a common reporting standard for the automatic . . .
Switzerland and Ghana, on May 22, signed a protocol amending their agreement for the avoidance of double taxation with respect to taxes on income, capital and capital gains. Press Release
Finance ministers of ten European nations, on May 6, reaffirmed their commitment to press ahead with a coordinated EU financial transaction tax, agreeing to a phased-in introduction of the tax beginning with the taxation of shares and some derivatives. . .
Officials from 86 countries endorsed new OECD guidelines on the application of VAT to international trade during the OECD’s April 18-19 Global Forum on VAT in Tokyo. Through the guidelines, the OECD seeks to ensure that VAT laws have a neutral effect on production and that domestic and foreign businesses are taxed equally in cross-border trade. The standards also seek to ensure that international business-to-business trade in services and intangibles is only taxed in the country of the customer. The OECD also said it is working to extend guidelines to cross-border sales of services to private consumers, to produce anti-abuse rules, and to craft provisions on mutual cooperation and dispute minimization. OECD VAT guidelines (1.5 MB), OECD Press Release, Statement of Outcomes, Speech of OECD Deputy Secretary-General Rintaro Tamaki., BIAC press release.
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 Russian government has approved a draft tax treaty with Hong Kong, Russian news . . .
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. . .
In a paper released November 13, the UK’s HMRC has announced that it will begin tax treaty negotiations with Nepal, Romania, Trinidad, Tobago . . .
Brian Dill has joined Joined Cherry Bekaert in Atlanta as the firm’s national leader of international tax. In an . . .
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 . . .
Japan’s National Tax Agency has released English-language information, forms, and instructions to be used by foreign businesses subject to a new law that imposes consumption tax on the overseas supply of digital . . .
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.
The Isle of Man on June 23 announced that a tax information exchange agreement with Italy entered into force on June 10 . . .
The South African goverment has announced that a new tax treaty with Mauritius was gazetted on June 17 and thus entered into force on May 28. The treaty, signed May 17, 2013, replaces. . .
The US Treasury Department has updated its FATCA website, reporting that South Korea has signed a Model 1 intergovernmental agreement (IGA) with the US as of June 10. The text of the agreement is available. See, FATCA IGA – South Korea.
The OECD will provide effective mechanisms to resolve cross-border double taxation disputes in guidance under the OECD/G20 base erosion profit shifting (BEPS) plan, including mandatory and binding arbitration for those countries willing to adopt it, an OECD official said June 8 during an update of the OECD’s progress . . .
Switzerland and Oman on May 22 signed a double taxation agreement, Switzerland’s Federal Department of Finance has announced. The agreement sets the tax rate on dividends in the source country at 5 percent . . .
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 . . .
China and Hong Kong tax officials on April 1 signed the fourth protocol to their tax arrangement, clarifying the conditions under which an investment fund would be qualified for Hong Kong resident status, Hong Kong’s Inland Revenue Department. . .
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