Malaysia’s Ministry of International Trade and Industry on April 6 issued guidelines for setting up a Malaysian Principal Hub, which offers tax incentives such as low tax rates and customs-free imports to MNEs that create high paying jobs and meet other criteria, writes PwC in an April 6 alert. See, PwC.
A Canadian subsidiary of Skechers USA, the footwear company, must add research, design, and development (R&D) payments made to its parent under a cost sharing agreement (CSA) to the customs value of imported footwear supplied by its parent, Canada’s Federal Court of Appeals has ruled in a March 2 decision. In so concluding, the court upheld the Canadian . . .
The second protocol to the agreement between Hong Kong and Vietnam for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income has entered into force, Hong Kong’s Inland Revue Department (IRD) announced February 23. The protocol came into . . .
The Obama administration is open to negotiating the tax rates for its proposed global minimum tax and one-time tax on previously untaxed foreign deferred profits, US Treasury Secretary Jacob Lew said February 5. . .
Douglas Shulman was named senior executive vice president and global head of client service delivery (CDS) at BNY Mellon and has been appointed to the executive committee, the bank announced January 7. Shulman, 47, is formerly with McKinsey & Co., where he was a senior adviser . . .
The UK on December 23 released a consultation on draft regulations for double taxation relief for groups and entities within the charge to the UK bank levy and the Netherlands bank tax, where the Netherlands is the home state of the entity or group. See, consultation.
The US IRS has posted an update to the instructions for Form 8966, FATCA Report, for 2014. The IRS states that the update “supplements the Instructions for Form 8966 to correct and clarify certain references to the reporting requirements of participating [foreign financial institutions] for the 2014 year, including to reflect a correcting amendment to section 1.1471-4(d)(7)(iv)(B) of the temporary chapter 4 regulations (TD 9657).” See, Update to the Instructions for Form 8966 for 2014
Mike Danilack, former IRS Deputy Commissioner (International) of the Large Business and International (LB&I) division, has joined PwC, the firm has announced. Danilack will serve as a principal in PwC’s Washington National Tax Services’ transfer pricing . . .
G20 leaders have endorsed the global common standard for automatic exchange of tax information and approve of progress made on the G20/OECD base erosion and profit shifting (BEPS) action plan, according to a communiqué released November 16, following a summit in Brisbane, Australia. The leaders said they are committed to . . .
Tax authorities from 51 jurisdictions have signed a multilateral competent authority agreement, laying the groundwork for automatic exchange of financial account information under the OECD/G-20 Common Reporting Standard beginning 2017 . . .
Tax officials from 38 countries pledged to increase their cooperation and collaboration to better handle the increased workload associated with implementing OECD/G-20 base erosion profit shifting (BEPS) . . .
The European Commission announced on October 16 that it is referring Belgium to the European Court of Justice for discriminatory taxation of collective investment undertakings
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The Obama administration has announced that it has taken regulatory action to make it more difficult and less lucrative for US companies to invert.
The new rules, which apply to deals closed on Sept. 22 or thereafter, are designed to stop post-inversion planning techniques that allow . . .
The IRS and Treasury on Sept. 23 published a notice which describes regulations that will be issued with respect to inversion transactions. See, Notice 2014-52.
China’s General Office of the State Administration of Taxation (SAT) highlighted recently issued tax guidance, “Interim Measures for the Tax Management of Non-resident Enterprises Engaged in International Transportation Business,” in a Sept 15 English-language news release. . .
Justice Patrick Boyle has recused himself from deciding all remaining issues in McKesson Canada Corporation’s transfer pricing proceedings in the Tax Court of Canada, including costs and confidentiality issues . . .
The Delhi High Court, in DIT v. Copal Research Mauritius Limited, et al., has concluded that gain arising from a sale between nonresidents of shares in an overseas company is not taxable in India unless the company derives at least 50 percent of its value from assets situated in India. Absent meeting . . .
The OECD, on August 4, requested pubic comment on BEPS Action 11, regarding the establishment of methodologies to collect and analyze data on BEPS and the actions to address it. Comments should be submitted by September 19. Request for input
An agreement for the avoidance of double taxation between Singapore and Liechtenstein, signed June 27, entered into force on July 25. The treaty provides for exchange of tax information on request, and lowers withholding taxes on dividends to zero, on interest to 12 percent, and on royalties to eight percent. Treaty
Steve Labrum has joined KPMG’s Canary Wharf office in London as a financial services transfer pricing partner. Labrum is former Global Head of Transfer Pricing at Alvarez and Marsal. Release
Corporate lawyer, Shri Arun Jaitley, took over as India’s new Finance Minister on on May 27, stating that his priorities are to “tackle inflation, boost economic growth, and follow the path of fiscal consolidation.” India’s new Minister of laws, telecom, and IT, Ravi Shankar Prasad, also . . .
Two US senators have announced that they will move to tighten tax laws that discourage corporate inversions, while a third believes that comprehensive US tax reform is key to preventing . . .
Microsoft and the Indian tax authority are again fighting over transfer pricing profit margins, with Microsoft claiming that its Indian unit earned 16.4% profit in FY10, and the government claiming that a 61.5% profit is appropriate, according to report by Santosh Tiwari of The Financial Express.
India’s Finance Minister presented the Interim Budget for 2014-15 to Parliament on February 17. For analysis, see EY
The US Treasury Department has updated its FATCA website, reporting that Angola and the US signed a Model 1 intergovernmental agreement (IGA) as . . .
China’s State Administration of Taxation on November 3 announced the August 25 signing of a tax arrangement between China and Taiwan . . .
The UK’s HM Revenue and Customs on October 2 released four sets proposed regulations governing taxation of corporate debt and derivative . . .
In a September 25 letter, 24 international tax experts have urged the US Congress to reject legislative proposals calling for the adoption of a territorial tax system and for the immediate taxation US multinational . . .
If the ECJ follows the opinion of the AG in the case, Timac Agro Deutschland, “the possibility to obtain cross-border loss relief would be significantly narrowed in cases where the PE country allows foreign taxpayers to pick up losses incurred by a sold or wound up PE,” EY writes in a September 8 tax alert. See: EY. See, also: Timac Agro Deutschland GmbH v. Finanzamt Sankt Augustin (in German).
New frequently asked questions (FAQs) were posted to the US IRS’s FATCA website on August 27 under the subheading “Field Level Errors” as . . .
Switzerland’s Federal Council on August 26 announced that it will recommend that Parliament reject a move to heighten bank client confidentiality through the “Yes to the protection of privacy” initiative . . .
The Indian Government on August 7 notified rules enabling information reporting under FATCA and the common reporting . . .
The US IRS in Notice 2015-54 released August 6 announced that the government will issue regulations overriding section 721(c) nonrecognition treatment in cases where property is transferred by a US person to a partnership that has foreign partners related . . .
The latest draft of the rewrite of Chapter 1 of the OECD Transfer Pricing Guidelines includes a new framework for analyzing risk that will address cash box companies without resort to any special measures, OECD tax officials said during a July 7 OECD consultation. Officials also provided a detailed update of other transfer pricing work being developed . . .
The UK’s financial secretary to the Treasury, David Gauke, told German MEP Michael Theurer on June 18 that the UK will oppose an EU-wide common consolidated corporate tax base (CCCTB) because the UK prefers tax competition, The Guardian reports. See. The Guardian.
The Australian government on May 27 introduced into Parliament legislation enhancing the Australian Investment Manager Regime, providing some widely-held foreign funds and funds that use an Australian fund manager with a exemption from tax on Australian source income and gain, writes Deloitte in a May 28 tax alert. See, Deloitte.
A US district court, in the case of Lehman Brothers Holdings Inc. v. US decided May 8, disallowed a US taxpayer’s claim for a foreign tax credit under the US-UK tax treaty for withholding taxes imposed on substitute dividend payments received by its wholly owned US subsidiary from its UK subsidiary pursuant to back-to-back stock loan transactions, EY writes in a May 19 tax alert. See: EY .
New frequently asked questions (FAQs) were posted to the US IRS’s FATCA website on May 8 covering technical issues associated with the FATCA International Data Exchange Service (IDES). The FATCA IDES is an electronic . . .
The European Court of Justice in an April 22 ruling, Drukarnia Multipress sp. z o.o. v Minister Finansów, (C‑357/13) has concluded that a Polish partnership limited by shares (‘PLS’) is a capital company within the meaning of Article 2(1)(b) and (c) of Council Directive 2008/7/EC concerning indirect taxes on the raising of capital, even though only . . .
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