Pharmaceutical companies could be the next target of an Australian Senate inquiry into tax avoidance, according to a May 22 report by the Brisbane Times. See, Brisbane Times
US Treasury on May 20 released for public comment draft proposals that would significantly modify the US Model Income Tax Convention. Included are proposals to address stateless income, discourage corporate inversions, and permit expanded use of the treaty through a derivatives benefits rule. The next US model would also include a provision requiring dispute resolution . . .
The magnitude of profit shifting by American companies “may be significant,” a US Congressional Research Service (CRS) report has concluded. The report, released April 30, found that about 50 percent of the $1.2 trillion in overseas profit reported by American . . .
Guernsey’s Director on Income Tax on April 8 issued guidance on when companies incorporated overseas are deemed to be a resident of Guernsey because they are controlled there. Guidance was also released on the filing obligations of such companies. The guidance provides that, generally, companies incorporated overseas but . . .
The Business Roundtable, an association of US company CEOs, on March 11 released a PWC report it commissioned which concludes that the US’s high tax rate coupled with its worldwide system of taxation disadvantages US businesses in the global cross-border mergers and acquisitions market, leading to foreign takeover of US businesses . . .
Senior OECD officials defended draft changes to the OECD transfer pricing guidelines on risk, recharacterization, and special measures February 12, arguing that revisions to the guidelines are needed to strengthen the arm’s length principle and to properly align a transaction’s form with its substance. The discussion draft, released December 19, proposes significant . . .
The Obama administration, in its FY 2016 Budget, has proposed a minimum tax on US multinational corporation foreign income and a one-time14 percent tax on previously untaxed foreign deferred profits. Inversion transactions and earnings stripping were also among the targets of the $4 trillion FY 2016 budget . . .
The US IRS on January 12 announced that its international data exchange service (IDES) website is open for enrollment. Financial institutions and host country tax authorities use IDES to electronically send information reports on financial accounts held by US persons to the IRS under the FATCA or pursuant. . .
International corporate tax lawyer Elan P. Keller has joined Kaye Scholer’s New York office as a partner, the firm announced January 5. Keller, a lawyer and a CPA, is formerly with Caplin & Drysdale and, prior to that, with Macquarie Holdings, Inc. See, release.
Luxembourg will provide the European Commission with a list of taxpayers that received private tax rulings in 2010–2012 involving cross-border dealings, as well as a list of the beneficiaries of its intellectual property regime, Prime Minister Xavier Bettel said December 18 . . .
The US IRS on December 17 released a draft version of the FATCA International Data Exchange Services (IDES) user guide. The draft discusses data preparation procedures and reporting. A final version of the guide will be available January 2015. See, IDES user guide
OECD, G-20, and other tax administrator are working together on a project to map of the global operation of selected MNEs engaged in the digital economy, Australian Second Commissioner Neil Olesen said November 28. “In today’s world, multinationals . . .
A tax treaty between the United Arab Emirates and Japan signed on May 2, 2013, will enter into force on December 24 , Japan’s Ministry of Finance announced on November 25. The treaty will apply to taxes withheld at source, income taxes, and other taxes beginning January 1, 2014
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Dallas-headquartered tax firm Ryan announced November 11 that it will acquire WTP Advisors, a Minneapolis-based international tax and transfer pricing firm. See, Ryan release.
McKesson Corp., which is appealing an adverse decision in a transfer pricing dispute in Canada’s Federal Court of Appeal, filed a motion to amend its appeal on November 3 claiming that actions taken by the trial judge in filing a lengthy “Reasons for Recusal,” gave McKesson additional grounds for appeal, writes Timothy Fitzsimmons of Dentons in a . . .
In an October 24 letter, William J. Sample, Chair, Taxation Committee of the United States Council for International Business (USCIB) states that if adopted, the UN’s proposed modification to the commentary to Article 9 of the UN Model will lead to increased disputes and double taxation. Sample condemned the lack of input by stakeholders in the UN process and argues that is inappropriate for non-OECD countries that participated in OECD transfer pricing guideline negotiations and obtained concessions to “undercut” those negotiations by arguing elsewhere for positions that were rejected. USCIB
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Luxembourg’s draft budget 2015, presented to Parliament on October 15, includes provisions that formalize and charge a fee for advance tax rulings, that modify transfer pricing provisions to make an explicit reference to the arm’s length standard, and that extend documentation requirements to related party transactions, writes KPMG’s member firm in Luxembourg. For details, see KPMG.
Orrick, Herrington & Sutcliffe announced on October 7 that Edward Denny has joined the firm’s London tax practice group. Denny, who is formerly with Norton Rose Fulbright, focuses on mergers and acquisitions. Release
Japan’s Ministry of Finance has announced that the “Agreement between the Government of Japan and the Government of the Sultanate of Oman for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income”, signed January 9, will enter into force on September 1.
The agreement reduces withholding taxes on dividends to 10 percent . . .
The US Senate Finance Committee’s top Republican, on July 22, said that he would consider supporting legislation to stop corporate inversions, independent of comprehensive tax reform, as long conditions were met. . . .
The UN Subcommittee on Base Erosion and Profit Shifting (BEPS), on July 8, extended the deadline for developing countries to respond to a questionnaire on BEPS.
The subcommittee, established by the UN Committee of Experts . . .
Botswana and Ireland, on June 11, signed an agreement to avoid double taxation, according to an report by Star Africa.
Ashish Dave has joined Quantera Global as a Director in the firm’s Sydney, Australia, office. Release
In Luxembourg, on May 28, Pierre Gramegna, Luxembourg Minister of Finance and Diarmuid O’Leary, Ambassador of Ireland, signed a protocol amending the countries’ 1972 tax treaty. The protocol updates the administrative assistance clause to the applicable international standard for the exchange of tax information upon request. Press Release
The European Court of Justice on April 30 dismissed the UK’s challenge to a EU Council decision that authorized 11 nation negotiations on a financial transaction tax. “The arguments relied on by the United Kingdom are directed at the elements of a future tax and not at the authorisation to establish enhanced cooperation,” the court said in a statement following the judgement. See, United Kingdom v Council, Press Release (164 KB).
The Dominican Republic will soon modify its transfer pricing regulations through publication of Executive Decree 78-14, reports EY. Read More: EY.
The OECD’s Working Party 6 has tentatively decided on a number of modifications to the OECD’s discussion draft on transfer pricing documentation and country-by-country reporting, including the elimination of entity-by-entity reporting in favor of country-level reporting, said Joseph Andrus, head of OECD transfer pricing , on April 2 during a webcast updating the base erosion and profit shifting (BEPS) initiative. Pascal Saint Amans, the OECD’s director of tax work, said that BEPS deliverables were “on track” for 2014 and that work has already begun on 2015 deliverables. . .
OECD Action Plan on Base Erosion and Profit Shifting
India and Japan have signed a protocol to their 1989 tax treaty, India’s Central Board of Direct . . .
The EU Parliament on November 25 overwhelmingly approved wide-ranging proposals to overhaul Europe’s international tax system offered by a special Parliament committee investigating multinational . . .
UPDATE (11/26/2015): EU Parliament to establish new committee on tax rulings: The EU Conference of Presidents on November 26 decided to set up a six-month committee to follow up on the tax rulings committee’s work; the precise mandate of the new committee will be decided on Wednesday. See: Release.
UPDATE (12/02/2015): New EU Parliament tax committee will have same mandate as its predecessor: The European Parliament on December 2 voted to create a new committee to investigate tax rulings, specifying that the new committee will have the . . .
US and Armenian officials will discuss the possibility of entering into negotiations to update their 1973 double tax treaty during the annual US-Armenia Economic Task Force meeting scheduled for . . .
The UK government on October 22 launched public consultations on proposed rules designed to limit excessive corporate interest deductions and revise the country’s patent box regime. Both proposals respond to the OECD/G20 base erosion . . .
India’s Competent Authority Akhilesh Ranjan discusses mandatory arbitration, country-by-country reporting, other BEPS topics with Mukesh Bhutani of BMR Advisors and Arun Giri of Taxsutra in a report published in The Firm on September 7. See: The Firm.
China’s State Administration of Taxation (SAT) on July 22 released an English-language translation of a June 3 announcement describing new policies . . .
The OECD on June 15 released public comments from 60 organizations on a revised discussion draft under action 7 of the OECD/G20 base erosion and profit shifting (BEPS) plan concerning artificial avoidance of permanent establishment (PE) status. The comments, numbering 319 pages, generally express . . .
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