The UN has released a draft, designed to serve as the basis of discussion at the UN’s Third Annual Conference on Financing for Development, which recommends that the UN Committee of Experts on International Cooperation on Tax Matters be upgraded to an intergovernmental committee. The Committee of Experts, currently a subsidiary body . . .
The OECD on April 29 released a discussion draft proposing revisions to the OECD transfer pricing guidelines relating to cost contribution arrangements (CCAs) entered into between related parties. The proposal, which would modify Chapter VIII of the OCED transfer pricing guidelines, was released in response to action 8 of the OECD/G20 base erosion and. . .
The US IRS in private letter ruling 201514006 released April 3 has granted a taxpayer consent to change to the elective method and period-by-period identification for purposes of including stock based compensation as an intangible development cost that taxpayer must share for purposes of its cost sharing agreement. See, PLR 201514006.
The UK’s HM Revenue and Customs on March 26 confirmed that it has joined with tax authorities of five other nations to share information about how digital multinationals might be shifting profits to tax havens. HMRC said that information gleaned from the collaboration will assist in applying the new UK diverted profits . . .
India’s Finance Ministry has released long-awaited regulations permitting rollback of an advance pricing agreement’s (APA) method of determining arm’s length prices to earlier tax years, though quick action is required to take advantage of the rules for existing applications and agreements. The provisions. . .
A coalition of European and American trade unions, joined by the anti-poverty campaign group War on Want, released a report February 24 claiming that McDonald’s avoided over €1 billion (USD 1.1 billion) in European corporate taxes from 2009-2013 by shifting income from its European franchises to a Luxembourg subsidiary through use of royalty payments.The group said that McDonald’s restructured . . .
Indian tax officials support several recommendations designed to reduce the large number of tax disputes in the Indian court system proposed by the Tax Administration and Reform Commission (TARC), according to a TARC report released February 20. The report, entitled “Recommendations, Feedback & Way Forward,” accompanies the release of the TARC’s fourth and final report, putting into one document hundreds of recommendations made in . . .
European Parliament leaders on February 5 failed to endorse the establishment of a committee of inquiry to investigate EU states’ private tax ruling practices, announcing instead that a vote will be taken in the next full house to set up a more limited special committee to handle the . . .
India is working on establishing new dedicated transfer pricing dispute resolution panels which, unlike other tax units, will not need to meet revenue targets, a tax official said December 17, according to a report by the Economic Times. For more, see Economic Times.
Japan’s Ministry of Finance announced on December 5 that it will begin negotiations with Qatar for a tax agreement between the counties. The first round of negotiations will begin December 8, in Tokyo. Release.
The Bombay High Court has released its decision in Shell India Markets Pvt. Ltd. vs. Union of India on its website. In the November 18 tax case, the court ruled in favor of an Indian subsidiary of Royal Dutch Shell . . .
The European Commission will challenge Spanish laws governing the taxation of dividends distributed by a non-resident companies to Spanish companies in the European Court of Justice, the Commission announced November 26. The Commission said that Spain . . .
The Philippines will join the OECD Committee on Fiscal Affairs to work on a global response to base erosion and profit shifting (BEPS) beginning January 2015, the Philippines Department of Finance announced November 14. The Philippines will use its position to present developing country perspectives and shape strategies, tools, and other outputs to curb BEPS. See, Philippines release.
Australia’s Tax and Superannuation Laws Amendment (2014 Measures No. 4) Bill 2014 received Royal Assent on October 16. The law includes provisions tightening Australia’s thin capitalization rules and reforming the tax exemption for foreign non-portfolio dividends paid to Australian corporations. See, Parliament of Australia.
The US on October 6 made changes to the FATCA registration system and published an updated version of the FATCA Registration Online User Guide. See, FATCA Registration Online User Guide (PDF 8.91MB), FATCA website
Singapore’s government has launched a public consultation on proposed regulations that would help financial institutions comply with the US Foreign Account Tax Compliance Act (FATCA). Singapore has substantially concluded a Model 1 Intergovernmental Agreement with the US, which will be signed in the fourth quarter of 2014. Release
The requirements for the entry into force of the protocol between Japan and Sweden, signed December 5, 2013, were met on Sept. 16 and the treaty will enter into force on October 12, Japan’s Ministry of Finance has announced.
The protocol sets a zero rate of withholding on interest and royalties. The withholding rate for dividends is zero for corporate shareholders that hold at least 10 percent voting power, and is 10 percent in other cases.
The protocol also adds measures to prevent abuse of the treaty, introduces an arbitration proceeding to the mutual agreement procedure, and expands exchange of information. Release, Protocol (66KB).
A tax treaty between the Republic of Mauritius and the Republic of Rwanda, signed on 20 April 20, 2013, entered into force on August 4. The provisions of the agreement shall be deemed to apply in Rwanda, in respect of any income year beginning on or after January 1, 2013; and in Mauritius, in respect of any period beginning on or after July 1, 2013. Release
The International Centre for Tax and Development (ICTD) has announced that it has established a research project to assist developing nations with OECD and IMF international tax reform initiatives.
The project will produce a series of briefing papers that will evaluate OECD and IMF proposals and devise specific recommendations for tax laws, regulations, and administrative practices. Project leaders are . . .
The OECD’s Committee on Fiscal Affairs has approved recommendations for base erosion and profit shifting (BEPS) action plan items due to be presented to G20 finance ministers in September, according to a July 3 press release issued by the New Zealand government. Release
Switzerland and Uzbekistan, on July 1, signed a protocol to amend their double taxation agreement. The protocol brings the administrative assistance clause into line with the applicable international standard for the exchange of information upon request. The protocol must be ratified by both countries before it can enter into force. Release
Peter Baum has joined O’Connor Davies as tax partner, according to a May 19 press release. The public accounting firm has offices in New York, New Jersey, and Connecticut. Release
A report, released by the European Commission on May 28, concludes that a special tax regime should not be adopted for the digital economy, rather modification of current VAT, corporate tax, and transfer pricing rules are needed to respond to the digitization of the economy.
The report, drafted by group of seven independent tax experts led by Victor Gaspar, Special Advisor to the Banco de Portugal, responds to
. . .
The Australian government, on May 8, announced a consultation on proposals to tighten the country’s thin capitalization rules. On November 6, 2013, the government said it would proceed with the reforms, which were included in the May 2013 Australian budget. The proposed amendments include a tightening the debt limit settings of Australia’s thin capitalization regime. Consultation, New For analysis see, Pitcher Partners
Download the public comments (PDF 5.6MB)
India’s Authority for Advance Rulings (AAR) has concluded that it does not have jurisdiction unless there has been a transaction or a proposed transaction entered by the applicant with Indian companies, according to a report by KPMG
See: The Three Causes of Inversions: Reflections on Pfizer/Allergan and Notice 2015-79, by Reuven S. Avi-Yonah, University of Michigan Law School: SSRN
The Australian Taxation Office on November 10 published a general overview if Australia’s advance pricing arrangement (APA) program. See: Australian Taxation Office.
The OECD has published in one document all the executive summaries of all the final base erosion profit shifting plan reports. See: OECD.
Australia’s Treasurer on October 7 released an exposure draft of legislation that would extend the GST to digital products . . .
The Australian government on September 16 moved forward with plans to address multinational tax avoidance, introducing a bill in the House of Representatives that targets large companies that avoid the permanent establishment rules. The bill also proposes new transfer pricing documentation and country-by-country . . .
The Philippines Department of Finance on September 8 advised that since the FATCA intergovernmental agreement (IGA) between The Philippines and the US has not yet entered . . .
The US IRS on August 28 released IRS agent training materials on transfer pricing rules under section 482 and on foreign-to-foreign transactions under . . .
The Swiss government is working with business groups to craft rules to replace its cantonal corporate tax system, writes SWI swissinfo.ch, the international service of the Swiss Broadcasting Corporation, in a August 20 article. See: SWI swissinfo.ch
The Australian Taxation Office (ATO) on July 8 announced that it is developing a practical guide to help taxpayers self-assess their transfer-pricing activity in respect to related party offshore marketing hubs. The hubs provide marketing and sales functions for goods . . .
China has signed a tax treaty with Chile and a protocol to its tax treaty with Russia, China’s State Administration of Taxation said in July 3 English-language releases. The treaty with Chile, signed May 25, is is the 100th treaty signed by China, the government . . .
China’s State Administration of Taxation in a June 23 English-language release described follow up procedures implementing the SAT’s decision no longer require tax administration approval . . .
G7 finance ministers and central bank governors agreed at a meeting in Dresden held May 27–29 that the mechanisms used to settle tax disputes between nations need to be improved, German Finance Minister Wolfgang Schaeuble said. Schaeuble told a press conference following . . .
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