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Asia-Pacific

China/Indonesia revise tax treaty

June 3, 2015

The Chinese government on June 3 announced that China and Indonesia signed a tax treaty protocol that stipulates that the two nations will exempt from VAT aviation enterprises engaged in international transportation with each other. The parties also signed a memorandum of understanding that lists the wholly-owned financial institutions of the two governments which are tax exempt under the treaty.  Both agreements were signed on March 26. See, Release.

Asia-Pacific

India’s lower house passes GST bill

May 6, 2015

India’s Lower House of Parliament on May 6 passed a constitutional amendment bill to introduce a GST to replace several local and central taxes and thus simplify India’s indirect tax regime. Moreover, during Lok Sabha debate, Finance . . .

Americas

Hareesh Dhawale appointed US IRS APMA director

February 19, 2015

Hareesh Dhawale has been appointed director of the US IRS’s advance pricing and mutual agreement (APMA) program in the Large Business and International Division, the IRS has announced. Dhawale has served as acting director of APMA since June 2014. APMA oversees the IRS’s advance pricing . . .

OECD
Asia-Pacific

OECD holds Asia-Pacific regional meeting on BEPS

February 16, 2015

Tax officials from 21 Asia Pacific countries and organizations attended an OECD regional network meeting on base erosion and profit shifting (BEPS) designed to give more nations a voice in the development of OECD/G20 base erosion profiting shifting (BEPS) plan output. The meeting, held February 12–13 in Seoul, also . . .

Americas

IRS’s William Alexander to join Skadden Arps

January 8, 2015

William Alexander will join Skadden, Arps, Slate, Meagher, & Flom’s Washington, DC office, the firm announced January 8. Alexander, who has been with the IRS Office of Chief Counsel since 1990 and served as IRS associate chief counsel (corporate) for the last 12 years, will join Skadden’s global tax group . . .

Asia-Pacific

China finalizes GAAR implementing guidance

December 20, 2014

The Chinese government has finalized administrative measures implementing its general antiabuse rule (GAAR), the State Administration of Taxation (SAT) announced December 12. The guidance implements GAAR rules introduced in 2008, addressing the law’s scope, judging criteria, adjustment methods, working procedures, and dispute resolutions, the SAT said in . . .

Europe

UK proposes MNE “diverted profits” tax, releases consultation on hybrid mismatches

December 3, 2014

The UK government will introduce a new “diverted profits tax” to ensure that multinational corporations pay the correct about of tax, British Chancellor of the Exchequer, George Osborne, announced December 3 in his Autumn Statement. The UK also released a consultation on hybrid mismatches, and Osborne reaffirmed the UK’s intention to introduce country-by-country reporting for . . .

Europe

Poland releases draft general antiavoidance law

September 15, 2014

The Polish government on Sept 10 released draft general antiavoidance legislation as well as procedures for obtaining advance tax rulings to confirm that intended transactions do not qualify as abusive, write Karina Furga-Dąbrowska and Rafał Mikulski of Dentons in a Sept. 15 post. For a detailed discussion of the tax proposal, see Dentons.

Featured News

OECD officials say multilateral instrument is legal, more BEPS guidance coming

May 26, 2014

Countries can legally use a multilateral instrument to amend existing bilateral tax treaties to implement the OECD’s base erosion and profit shifting (BEPS) initiative, Pascal Saint-Amans, Director, OECD Center for Tax Policy and Administration, said on May 26, during an update of OECD progress on the BEPS action plan.

Saint-Amans said that a team of international lawyers have found legal precedent in areas other than tax . . .

Asia-Pacific

China To expand VAT to telecoms

April 30, 2014

China will replace its turnover tax on the telecom sector with value-added tax (VAT) effective June 1, the government announced on April 30. “Basic telecom services such as voice calls and bandwidth leasing or sales will be subject to 11 percent VAT while value-added services such as messaging, data transfer and Internet access will be subject to a 6 percent rate. Telecom services for overseas clients will be exempt,” state-run news agency Xinhua reported. See, Xinhuaet

Europe

Russian Bill Would Introduce CFC Regime

April 16, 2014

Russia’s Ministry of Finance, on March 18, published a bill introducing controlled foreign company (“CFC”) rules to the Russian tax laws. The bill also deems a foreign company as a Russian tax resident when the company’s management is in Russia and taxes sales of shares in an entity where the entity’s assets consist of indirectly owned Russian real property. For analysis, see CMS Bureau Francis Lefebvre, Laggan & Associates Ltd, Debevoise & Plimpton LLP, EY

Europe

UK outlines priorities for countering base erosion and profit shifting

March 23, 2014

HM Treasury and HM Revenue and Customs have released a position paper outlining the UK’s priorities for the ongoing work with G20 and OECD taking forward the 15 point Action Plan to counter Base Erosion and Profit Shifting.

The paper includes proposals for new international rules to address cross-border business structures or finance transactions, a disclosure scheme for international tax schemes, and the creation of a single Large Business Directorate within HMRC.

HM Treasury and HM Revenue and Customs

Americas

Trump’s tax plan calls for deemed repatriation of overseas profits, end to deferral

September 29, 2015

US presidential candidate Donald Trump’s tax plan, unveiled September 28, includes proposals for a 15 percent tax rate on all business income, limits on interest deductions and other unspecified business deductions, a deemed repatriation of all overseas profits of US multinationals at a 10 percent rate, and an end to deferral. See: Trump plan. More: TaxVox, Fortune, Slate, Bloomberg, The Guardian, CNN, New York Times, Politico, Wall Street Journal.