Europe
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Europe
EU Court of Justice rejects French tax regime that gives greater dividend deductions to French groups
The European Court of Justice, in Groupe Steria SCA, has ruled that EU freedom of establishment principles are infringed by French laws that give only domestic companies the opportunity to join a French group and take advantage of a special tax integration regime . . .
Americas
Japan’s Supreme Court says Delaware limited partnerships are corporations for tax purposes
Masao Yoshimura, an Associate Professor of Tax Law at Hitotsubashi University’s Graduate School of International Corporate Strategy, analyzes a July 17 decision of the Supreme Court of Japan concluding that Delaware limited partnerships should be classified as corporations for tax purposes . . .
Europe
TASS: Russia will not increase tax burden on business for 4 years says Putin
Russia will not increase tax rates or the fiscal burden on business for four years, said Russian President Vladimir Putin according to a June 19 report in TASS. Putin also said Russia will take steps to increase the transparency . . .
Americas
Irish Revenue outlines FATCA treatment of holding companies and treasury companies
Irish Revenue on June 17 released guidance on the treatment of holding companies and treasury companies for purposes of FATCA reporting, in light of updated US IRS guidance . . .
Americas
Text available of TIEA between Ireland and the Bahamas
Irish Tax and Customs on May 1 released the text of a tax information exchange agreement signed by Ireland and the Bahamas. The agreement . . .
Asia-Pacific
India attempts to dampen foreign investor furor over imposition of MAT
Indian Finance Minister Arun Jaitley on April 26 said that his administration has no choice but to impose minimum alternative tax (MAT) on capital gains of foreign institutional investors, calling it a legacy from . . .
Asia-Pacific
India extends time to apply for rollback of APAs
Responding to taxpayer requests, India’s Central Board of Taxation on March 31 announced an extension of the deadlines to apply for rollback of an advance pricing agreement (APA) for existing APAs and pending APA applications. June 30 is now the deadline to apply . . .
Americas
US Senator slams Business Roundtable members’ use of tax havens, identifies companies that pay little tax
Of the 201 CEOs that make up the membership of the Business Roundtable, 111 lead US companies that use offshore tax havens, and many lead companies that pay little or no corporate tax despite being profitable, according to a report by ranking member of the US Senate Budget Committee, Bernie Sanders (I-Vt.), released . . .
Asia-Pacific
India expected to defer GAAR implementation
The Indian government intends to defer implementation of its general antiavoidance rules (GAAR) to avoid harming investor confidence, and will likely make an announcement to that effect in the 2015-16 budget, writes the Times of India in a February 14 article, quoting an unnamed source. See, Times of India, See also, Financial Express, The Economic Times.
Europe
Europe
EU Commission seeking new members for transfer pricing advisory group
The European Commission, in January 26 announcements, has requested applications from transfer pricing specialists to serve on the EU Joint Transfer Pricing Forum (JTPF). The. . .
Americas
US IRS provides details on FATCA IDES, Forms W-8 and W-9
The US IRS on December 11 added new information on its website on the FATCA International Data Exchange Service (IDES). The IRS describes the IDES enrollment process, lists compatible web browsers . . .
Europe
Italy’s Parliament weighing new patent box regime
A bill introducing a patent box regime in Italy consistent with the OECD’s nexus approach was submitted to the Italian Parliament in October, writes PwC in a December 2 article. PwC notes that to be eligible for tax benefits under the bill, most taxpayers would need to enter into an advance pricing agreement with revenue authorities. For a detailed discussion of the new provisions, see PwC. See also, DLA Piper, Società Italiana Brevetti
Europe
EU court approves Spain’s tax deductions for foreign company acquisitions, annuls Commission decisions
The General Court of the European Union on October 7 ruled that a Spanish tax incentive which allows for amortization of goodwill in foreign company share acquisitions is not incompatible with EU state aid rules. As such, the Court annulled 2009 and 20011 European Commission decisions . . .
Asia-Pacific
Americas
OECD official discusses “double Irish” and US reaction to BEPS with The Irish Independent
Pascal Saint-Amans, the director of the OECD Centre for Tax Policy and Administration, addressed Ireland’s recent tax announcements and his views on whether the US will implement or block the OECD/G-20 base erosion profit shifting measures during an interview with the Irish Independent. See, Irish Independent.
Europe
Switzerland and EU sign agreement on Swiss taxation of foreign revenue
Switzerland’s Federal Council and the EU member states on October 14 signed a joint statement on business taxation whereby the Federal Council reaffirmed its intention to propose abolishing tax regimes . . .
Europe
UK government pledges to combat tech company tax avoidance
The UK government intends to end tax avoidance schemes used by technology companies, Chancellor of the Exchequer George Osborne said Sept. 29, reportedly referring to plans to target double Irish tax avoidance strategies.
. . .
Asia-Pacific
United Arab Emirates and Barbados sign tax treaty
The United Arab Emirates and Barbados, on Sept. 26, signed an agreement on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. The agreement emphasizes the desire of both countries to avoid double taxation on the income of individuals and companies, commercial sea and air transport, and on other similar taxes. Release
Americas
US official says some countries want conditions placed on access to BEPS project’s country-by-country reporting data
Countries negotiating the OECD/G-20 base erosion profit shifting (BEPS) guidance have advanced a proposal to require countries that seek access to country-by-country reporting data to first to agree to enhanced dispute resolution, a US Treasury official said on Sept 17.
Speaking during a Deloitte webinar, Robert Stack, US Treasury Deputy . . .
Isle of Man
Isle of Man-Luxembourg tax treaty enters into force
The Isle of Man has announced that its Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital with Luxembourg, signed April 8, 2013, entered into force on August 5. Press release, treaty text.
Americas
Law firm reports on U.S. Mulitstate Tax Commission’s transfer pricing meeting
Sutherland Asbill & Brennan LLP has provided a report of a July 28 meeting of the Multistate Tax Commission’s Arm’s Length Adjustment Services Advisory Group, which is creating a transfer pricing model for the U.S. states and is considering ways to improve the states’ ability to analyze intercompany transactions. See, Sutherland SALT report.
Denmark
Ireland and Denmark sign protocol, text available
Ireland and Denmark, on July 22, signed a protocol to their 1993 tax treaty which would change the method of eliminating double taxation with respect to salaries, wages and similar remuneration. Protocol (PDF, 43KB), Treaty
Europe
European Commission paper examines bank taxation
The European Commission, on July 18, released “Taxation paper No 43: Financial Activities Taxes, Bank Levies and Systemic Risk,” written by Giuseppina Cannas, Jessica Cariboni, Massimo Marchesi, Gaëtan Nicodème, Marco Petracco Giudici, and Stefano Zedda. For the text, see Taxation paper.
Americas
Ireland releases guidance on FATCA compliance
Ireland’s Revenue Commissioners, on June 30, released guidance on compliance by Irish entities with their obligations under U.S. FATCA provisions. See, Financial Accounts Reporting (United States of America) regulations 2014 (PDF, 179KB).
Americas
Russian law permits banks to send information to US to meet FATCA requirements
A Russian law, signed June 30, gives financial institutions the right to pass information about U.S. taxpayers to the IRS to satisfy FATCA requirements, but only after first sending the information to Russian authorities and only if the taxpayer gives permission for the information transfer, reports Delphine d’Amora of The Moscow Times.
Americas
UAE and US agree in substance on FATCA IGA
The United Arab Emirates and the United States, on June 10, agreed in substance to a Foreign Account Tax Compliance Act (FATCA) intergovernmental agreement (IGA), according to reports from the Abu Dhabi City Guide and the Khaleej Times.
Asia-Pacific
Multinational
Americas
Australia, US sign FATCA intergovernmental agreement
The agreement was signed in Canberra on 28 April. U.S. Government Press Release
Asia-Pacific
Philippines finance department urges reform of tax incentive system
The Philippines Department of Finance is pressing for passage of the Tax Incentives Management and Transparency Act and the Fiscal Incentives Rationalization Reform Bill, stating that the bills would create a more transparent and accountable system for granting of tax incentives. The agency notes that tax incentives cost the government at least 1.5% of GDP in 2011 and that the International Monetary Fund supports the reform of the fiscal incentives structure.
Release
Asia-Pacific
India signs 11 APAs, expects to soon sign 30–40 more
India has signed 11 more unilateral advance pricing agreements (APAs) with multinationals, bringing total APAs signed by the government so far this fiscal year to 22, the India’s Central Board . . .
Asia-Pacific
India releases roadmap to reduce corporate tax rate and phase out deductions
Indian government on November 20 released more details of its plan, announced in Finance Minister Arun Jaitley’s budget speech, to reduce the corporate tax from 30 percent to 25 and to phase out deductions . . .
Asia-Pacific
EU Commission threatens to sue Netherlands over tax treaty with Japan
The European Commission on October 19 asked the Netherlands to amend the limitation on benefits clause in its tax treaty with . . .
Europe
Isle of Man and Romania sign tax information exchange agreement
The Isle of Man and Romania on November 4 signed a tax information exchange . . .
Featured News
OECD officials highlight key decisions in final BEPS reports
Senior OECD officials provided an overview the 13 final reports issued under the OECD/G20 base erosion and profit shifting plan (BEPS) during two webcasts that aired October 5, just after the reports were released. Discussion covered all 15 action items, including . . .
Multinational
Economist quantifies scope of tax avoidance and evasion via tax havens
Professor Gabriel Zucman of UC Berkley, in his book, The Hidden Wealth of Nations, concludes that corporate and individual use of tax havens is increasing rapidly. See: Gabriel Zucman. Reviews: The Wall Street Journal, Bloomberg, Huffington Post.
Americas
USCIB sees flaws in draft US model tax treaty
The United States Council for International Business has written to US Treasury, arguing that draft provisions in the US model tax treaty released last May “tilt too far in their attempt to prevent inappropriate claims of treaty benefits.” The group is concerned with provisions on special regimes, subsequent changes in law, and limitation on benefits. See: USCIB. Related: MNE Tax.
