The Australian Taxation Office (ATO) on February 26 released guidance on procedures that must be followed before ATO personnel can advance the view that a transaction must be reconstructed for transfer pricing purposes using one of the exceptions. . .
Tax arrangements that PwC promoted in Luxembourg, revealed through the “Lux Leaks” scandal, bear all the hallmarks of a mass-marketed tax avoidance scheme, according to a UK Public Accounts Committee report . . .
The European Commission on December 19 requested formal consultations with the US in the World Trade Organization (WTO) concerning recent Washington State legislation extending tax subsidies to Boeing and other aerospace firms from 2024 through 2040, estimated at USD 8.7 billion. The Commission maintains that Washington State tax subsidies, originally set to expire in 2024, have already been declared WTO inconsistent. See, EU Commission release.
The US IRS on December 12 published final regulations on reporting of specified foreign financial assets (TD 9706) and removed associated temporary regulations. According to a summary provided . . .
Luxembourg’s Ministry of Finance on December 10 defended its tax rulings practice and its record on tax transparency, claiming that “Luxembourg is a constructive, reliable player in the move towards greater transparency in tax matters.” Though not mentioning the matter directly, the Ministry also responds allegations stemming from the “Lux leak” . . .
China signed 19 advance pricing arrangements (APAs) — 11 unilateral APAs and 8 bilateral APAs — in 2013, according to the State Administration of Taxation’s (SAT) annual APA report. The report, released December 5, provides data on China’s APA program from 2005-2013, outlines the process for obtaining an APA in China, provides forms and schedules needed to apply for an APA, and provides
. . .
Alex Pham, has joined Luxembourg firm, Kleyr Grasso, to establish a new tax department there, the firm announced November 20. Pham’s experience includes international tax structuring, corporate tax, individual taxation, and VAT. See, release.
The Czech Republic Supreme Administrative Court elaborated on the burden of proof in transfer pricing and incentive regimes cases in a ruling which concluded that a taxpayer did not qualify for incentive regime tax relief because it failed to prove it priced transactions with its subsidiary at arms length, writes KPMG in a November 17 report. For discussion, see KPMG.
The Isle of Man Treasury announced on October 21 that the “Agreement for the Exchange of Information Relating to Tax Matters” signed by the Isle of Man and Switzerland on August 28, 2013, entered into force on October 14. Release.
The European Court of Justice on Oct. 2 ruled that where goods are sold by a company established in State A to a person in State B, and where the vendor does finishing work on the goods performed by a service provider in State B before the goods are transferred to the purchaser, the place of supply is State B. See, Fonderie 2A v. Ministre de l’Économie et des Finances, C-446/13.
The European Commission on Oct 1 announced that it has opened an investigation into whether Gibraltar’s tax authorities selectively favor companies in private tax rulings thereby violating EU state aid rules.
The Commission said it has has assessed 165 tax rulings
. . .
Canadian billionaire Eugene Melnyk has confirmed that, in 2012, he made a presentation to U.S. tax authorities as an “official whistleblower,” alleging that Valeant Pharmaceuticals, formerly a U.S. company, should have continued to pay U.S. tax following its merger with Canada-based Biovail and change of headquarters to Canada, writes Nicolas Van Praet of the Financial Post. See, Financial Post.
Sam Maruca, former IRS Director of Transfer Pricing Operations for the Large Business and International Division, has rejoined Covington & Burling’s Washington, D.C. office as a partner. Maruca spent three years with the firm before joining the IRS in May 2011. Release
Switzerland and the European Union, on July 1, initialed an agreement outlining principles and intentions concerning Switzerland’s business taxation regime . . .
European Union finance ministers, on June 20, announced an agreement to revise the Parent-Subsidiary Directive to stop multinational entities from using hybrid instruments to achieve double nontaxation.
All 28 member states gave their full backing to the proposal at an Economic and Financial Affairs Council (ECOFIN) meeting in Luxembourg. . . .
In a May 12 press release, the Indian Ministry of Finance has asserted that it will continue to urge Switzerland to ratify the OECD Multilateral Convention on Mutual Administrative Assistance on Tax Matters. See, Press Statement
The Belgian Tax Authority, in Circular AAFisc NR 13/2014, released April 3, clarifies aspects of the Fairness Tax, but leaves unresolved issues such as how to calculate the tax on permanent establishments of non-resident companies and the issue of the potential incompatibility of the new law with the Belgian Constitution, EU law, and double tax treaties, EY writes in a report on the new tax.
Jersey and the Kingdom of Belgium signed a tax information exchange agreement on March 13. Press Release
Gregory Hartker has joined Morgan Lewis as of November 17 in firm has announced. Hartker joins . . .
A legal challenge to the Kenya-Mauritius Double Taxation Agreement, brought by Tax Justice Network Africa (TJN-A) in the High Court of Kenya at Nairobi, is getting closer to resolution, as a hearing date for the matter will be set on December 9. The lawsuit, filed October 3, 2014, is the first of its kind in Africa and . . .
The EU Commission announced October 12 that it has made changes to its consolidated list of non-EU countries deemed non-cooperative for tax purposes, as identified by the Member States. The updates to the list, located on the Commission’s . . .
UPDATE (10/14/2015): Hong Kong Treasury notes the removal of Hong Kong from Spain and Estonia’s blacklists: The government said that allegations that Hong Kong are a tax haven are unfounded. See, release.
The OECD’s planned guidance on the profit split method will likely consist of a series of examples that demonstrate when the method is considered the best method for transfer pricing purposes and how it should be . . .
The US Treasury Department has updated its FATCA website, reporting that Cambodia has. . .
Switzerland and Albania on September 9 signed a protocol to amend their November 1999 double taxation . . .
Irish Revenue on August 28 released five tax manuals on recent corporate tax law changes, including guidance on new tax residency rules that make it more difficult for multinationals to take advantage of the “Double Irish” tax loophole and rules that change capital allowances for . . .
The US and India have signed a Model 1 intergovernmental agreement (IGA) the Indian goverment announced . . .
China’s National People’s Congress Standing Committee on June 1 ratified the Multilateral Convention on Mutual Administrative Assistance in Tax Matters the People’s Daily reports. See, People’s Daily.
Draft OECD guidance on hard-to-value intangibles released June 4 would permit tax administrations to consider ex post evidence of the actual financial outcome of a transfer of intangibles to determine the appropriateness of the ex ante pricing arrangement, including whether arm’s length parties would have used contingent pricing . . .
China’s State Administration of Taxation (SAT), on June 3, released English-language descriptions of SAT transfer pricing guidance, a circular reporting on the SAT’s efforts to curtail tax avoidance, and a paper outlining the changes required to transform China’s taxation system into one more truly governed by the rule of law. The SAT explained that its decision to release transfer pricing . . .
The OECD on June 1 released submissions from 45 organizations commenting on proposed revisions to the OECD transfer pricing guidelines dealing with cost contribution. . .
India’s Central Board of Direct Taxes (CBDT) on May 11 instructed field officers to stop issuing new tax assessments against foreign companies, particularly foreign financial institutions, for minimum alternate tax (MAT), except in cases where the statue of limitations is about to expire. The government also . . .
UPDATE (5/21/2015): India establishes committee to consider imposition of MAT on FFIs prior to April 1. The Indian government on May 20 tasked a committee headed by Justice A.P. Shah, former Chief Justice of Delhi High Court and current Chairman of the Law Commission of India to look . . .
A few changes will be made to the UK’s controversial diverted profits tax in the final version of the legislation, set to be introduced next week, according UK budget documents released March 18. Proposed legislation to add country-by-country reporting requirements for MNEs . . .
The US’s FATCA International Data Exchange Service (IDES) Gateway has opened, allowing financial institutions and host country tax authorities to securely send FATCA information reports on financial accounts held by US persons to the IRS, the IRS announced March 3. IDES will operate on all major . . .
Singapore’s Finance Minister and Deputy Prime Minister, Tharman Shanmugaratnam, released of the country’s Budget 2015 on February 23. Business will benefit from the budget’s extension of the 30% corporate income . . .
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