The European Court of Justice on April 16 ruled, in European Commission v. Federal Republic of Germany, that Germany violated freedom of establishment principles through its tax scheme which allows deferral of taxation of the capital gains realized on the sale of a capital asset forming part of the assets of a permanent establishment . . .
The Australian Tax Office’s (ATO) tax compliance efforts targeting international business and public groups focuses on specific tax risks, such as losses and profit shifting, and on specific events in the business life cycle, such as private equity investments and mergers and acquisitions, the agency said in a March 2. . .
The European Commission on February 6 invited interested parties to comment on its state aid investigation into whether an advance pricing agreement (APA) granted by Luxembourg to Amazon that set the price of intra-group royalties. . .
A new FAQ was posted to the FATCA website on December 22, as follows . . .
The OECD, in a discussion draft released December 16, announced that it is working on revising OECD transfer pricing guidelines relating to the use of the transactional profit split method and has requested feedback on issues associated with that project. . .
Japan and Hong Kong on December 10 exchanged notes confirming the understanding that information concerning additional taxes will be exchanged, Japan’s Ministry of Finance has announced. The additional taxes are the Japanese inheritance tax, gift tax, consumption tax; and any similar taxes later imposed. See, Japan Ministry of Finance release.
The OECD has announced that it will hold a January 21, 2015, consultation on its discussion draft concerning preventing the artificial avoidance of permanent establishment (PE) status. The draft was released on October 31 in response to action 7 . . .
The United States Court of Appeals for the Second Circuit on November 5 upheld the US Tax Court’s decision in Barnes v. Comm., stating that the IRS properly applied the step transaction doctrine to disregard. . .
Russian President Vladimir Putin on November 3 signed a law ratifying the Convention on Mutual Administrative Assistance in Tax Matters, Russian news . . .
The Swiss Federal Counsel on October 22 launched a consultation on a proposed law that would . . .
New on SSRN website: “Financial Derivatives in Corporate Tax Avoidance: A Conceptual Perspective,” by Michael P. Donohoe, University of Illinois at Urbana-Champaign – SSRN
EY has published the transcript an interview with Pascal Saint-Amans, director of the OECD’s Center of Tax Policy and Administration, addressing the OECD’s Base Erosion Profit Shifting (BEPS) project, conducted by Alf Capito, EY’s Asia-Pacific tax policy leader. See, EY.
India’s Central Board of Direct Taxes on October 8 announced in Circular 14/2014 that a new software or IT service unit established by a taxpayer in the special economic zone will qualify for the section 10A/10AA profit-linked deduction as long no more than 50 percent the new unit’s manpower was transferred from the taxpayer’s existing business. The previous threshold was 20 percent. See, India Income Tax Department.
The Brazilian Revenue Service, in Declaratory Interpretative Act 07 (ADI 07/2014) released August 15, has modified its position concerning the tax treatment of amounts paid by a Brazilian residents to foreign legal entities for the provision of infrastructure for data processing and storage with remote access, deeming such payments to be payments for the provision of services, writes EY in an August 20 tax alert. For a discussion of the new guidance, see EY.
The U.S. Tax Court, in Amazon.com, Inc. & Subsidiaries v. Commissioner, has denied Amazon’s motion for partial summary judgement, concluding that there are genuine disputes of material fact necessary to determine to whether IRS abused its discretion in adjusting amounts under a cost sharing agreement . . .
The IRS updated the FATCA frequently asked questions and answers on July 23, providing . . .
Switzerland and Iceland, on July 10, signed a double taxation agreement which includes exchange of information provisions and an arbitration clause. The agreement replaces a 1988 double tax agreement. Under the new agreement, royalties are subject to no more than 5 percent tax in the source state. The parties agreed to a withholding tax exemption for divided payments from significant holdings of at least 10 percent and for divided payments to pension funds and national banks. The agreement specifies that pension contributions in the other country are deductible. For more details, see press release.
Israel’s tax authority will soon publish a circular clarifying that internet companies must pay VAT and income tax in Israel, according to a June 15 report by the Matzav Network, reporting on comments made by Tax Authority director, Moshe Asher. See, Matzav Network.
FATCA frequently asked questions and answers have been posted to the IRS website. Topics include responsible officers, branches/disregarded entities and a registration update. FAQs
Portugal’s Corporate Income Tax Reform and State Budget Law for 2012 includes a few changes to transfer pricing laws. See, report by KPMG.
The OECD has released a discussion draft on the Tax Challenges of the Digital Economy. OECD Discussion Draft (PDF 1.40 MB) ; OECD Press Release. Analysis: KPMG
Australia’s Tax Laws Amendment (Combating Multinational Tax Avoidance) Bill 2015 received Royal Assent on December 11, giving effect to measures announced . . .
The US government is trying to persuade the EU Commission that it is inappropriate to require EU States to recover “retroactive” tax from multinationals upon a finding that illegal State aid was provided through overly-generous private tax rulings, Robert Stack . . .
Ken Brewer has joined Alvarez & Marsal Taxand’s international tax team in Miami as a senior advisor, the firm announced . . .
The OECD released the final base erosion profit shifting (BEPS) reports this morning. The 13 reports are based on the BEPS action plan, endorsed by the G20 in July 2013, which identified 15 key areas. . .
Former US Treasury Associate Tax Legislative Counsel, Alexandra Minkovich, has joined Baker & McKenzie’s Washington DC office as counsel, the . . .
The Australian Taxation Office (ATO) on September 8 published the results of a consultation on rules implementing a new law that requires the ATO to publicly disclose tax information of companies that have income of $100 million or more and . . .
Ireland’s Department of Finance on July 30 published a paper describing current thinking on the design its planned ‘knowledge development box’ legislation, which will offer a special low rate of tax on income from intellectual property. The release . . .
The Australian government, on July 14, published the terms of reference for a Board of Taxation consultation on implementing anti-hybrid rules developed. . .
The UK government on July 15 published the Summer Finance Bill 2015 to tax implement tax changes announced in last week’s budget and earlier proposals. The bill implements a proposed . . .
The European Commission on July 13 released a study exploring policy options designed to make the EU VAT system fairer to business engaged in cross-border trade. The EC-commissioned study, prepared by EY, finds t . . .
The European Commission on June 17 said it is readying a proposal for an EU-wide common consolidated corporate tax base (CCCTB) that would be mandatory for multinationals. The Commission also announced plans to publish guidance on intellectual property regimes and transfer pricing; launched a public consultation on whether companies should be required to make . . .
US Senate Finance Committee Chairman Orrin Hatch (R-UT) and House Ways and Means Chairman Paul Ryan (R-WI) today sent a letter to Treasury Secretary Jack Lew raising concerns about transfer pricing documentation requirements in the OECD/G20 base erosion and profit shifting (BEPS) plan and calling on the administration to consult . . .
The US Treasury Department has updated its FATCA website, reporting that Colombia has signed a Model 1 intergovernmental agreement (IGA) with the United States as of May 20. The text of the agreement is available. See, Model 1 IGA.
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