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Ireland’s Department of Finance on March 16 launched a public consultation on its proposal to adopt into Irish law the “authorized OECD approach” for the attribution . . .

Americas

Canadian mining company seeks NAFTA arbitration in Mexico transfer pricing dispute

First Majestic Silver, a publicly traded Canadian mining company, has resorted to international arbitration to resolve an ongoing transfer pricing dispute with the Mexican government over tax reassessments the government made in conflict with the terms of an advance pricing agreement. . .

Digital Economy

CJEU confirms Polish and Hungarian progressive turnover taxes do not violate EU law

On March 16, the Court of Justice of the European Union upheld the General Court’s judgments that two progressive turnover taxes – a Polish tax on the retail sector and a Hungarian tax on advertisement revenue – do not violate EU state aid law. . .

Americas

Mathias Cormann appointed OECD Secretary General

The OECD council on March 15 named former Australian finance minister Mathias Cormann as its next leader beginning in June. He will become the first secretary-general from. . .

Asia-Pacific

Japanese ministry considers reducing tax burden on Japanese-based tech companies’ overseas earnings: The Mainichi→

Asia-Pacific

Transfer pricing for Indian software distribution affiliates

New York City economist, Dr. J. Harold McClure, notes that Indian tax authorities may take a closer look at transfer pricing following their loss in a landmark decision involving the taxation of foreign-based software providers . . .

Europe

Ireland updates guidance on self-certification system allowing payment of interest and royalties with deductions at the applicable tax treaty rate: Irish Tax and Revenue→

Africa

EU to implement digital levy regardless of OECD-led effort

The EU Commission will continue to press ahead with its proposal for an EU digital levy to fund EU operations even if a global international tax . . .

Africa

South Africa issues private ruling on taxation of transfer of reinsurance business from a resident company to a local branch of a foreign company: South African Revenue Service→

Europe

Ireland pays €1 million to the Netherlands for MAP settlement regarding the location of KPN insurance unit’s profits in 2014 and 2015: Mark Paul / The Irish Times→

Europe

UK proposes ‘super deduction’ for plant and machinery, launches R&D tax incentive review

The UK published its Finance Bill on March 11, detailing the tax provisions announced in the 2021 UK budget, including the super deduction to boost economic recovery and a review of the UK’s current R&D tax incentives. . .

Council of the European Union

EU advances DAC 7 proposals to share digital platform tax information

Francesca Amaddeo of the Tax Law Competence Centre, Manno, Switzerland, discusses recent developments regarding the EU’s proposed DAC 7 directive . . .

Americas

Biden administration negotiating global minimum tax, expected to raise corporate taxes: Jeff Stein / The Washington Post→

UN tax committee to issue proposed model treaty language on taxing rights for automated digital services

A subcommittee of the UN Committee of Experts on International Cooperation in Tax Matters has announced that it is finalizing language on a proposed article for inclusion in the UN Model Tax Convention attributing . . .

Asia-Pacific

Indonesia to cut taxes for hybrid vehicles: Cindy Silviana, Gayatri Suroyo / Reuters→

Asia-Pacific

Australia to amend its offshore banking unit regime to avoid OECD, EU tax haven blacklists, treasurer says: Australian Treasury→

Europe

UK updates guidance for claiming SME research & development relief noting new form CT600 filing requirement from April 1: HMRC→

Americas

NYU law professor Lily Batchelder named US Assistant Secretary for Tax Policy: US Treasury→

Americas

Over 100 US legislators support new bill to apply the same tax rate on a company’s overseas profits as on those earned in the US: Lloyd Doggett→

Americas

State of Maryland issues guidance on digital products and streaming tax: MD Comptroller→

“Platform for Collaboration on Tax” toolkit offers guidance on negotiating tax treaties

On March 10, the “Platform for Collaboration on Tax” – a joint initiative of the IMF, OECD, UN, and World Bank Group – launched the final version of its Toolkit on Tax Treaty Negotiations. . .

Americas

US corrects final regs (TD 9926), providing guidance related to the withholding of tax and information reporting with respect to certain dispositions of interests in partnerships engaged in a trade or business within the US: IRS→

Asia-Pacific

India will levy a 40% customs tax on imports of solar modules from April next year to cut dependence on foreign supplies and boost domestic manufacturing of the equipment: Energy Infra Post→

Americas

US IRS corrects PFIC regs: IRS / Federal Register→

Asia-Pacific

UK’s Cairn Energy considers ways to monetize arbitration award it won against India in six-year USD 1.7 billion tax dispute: Business Today→

Asia-Pacific

India Supreme Court settles the debate – software sale is not taxable as royalty

Ritu Shaktawat and Krutika Chitre, Khaitan & Co, Mumbai, discuss the Supreme Court of India’s new landmark ruling putting to rest a long-standing contentious issue surrounding the characterization of income in the hands of non-resident software manufacturers . . .

Europe

Dutch job-related investment tax credit: strengthening the Dutch tax incentive toolbox

March 9, 2021

Jian-Cheng Ku, Gabriël van Gelder, & Mehdi el Manouzi, of DLA Piper, discuss the Netherlands’ introduction in January of a new tax incentive scheme — the so-called job-related investment tax credit (baangerelateerde investeringskorting) . . .

Asia-Pacific

Japanese ministry to assemble panel of experts to analyze taxation of digital economy: Japan Ministry of Economy, Trade, and Industry (In Japanese)→

Europe

UK policy paper discusses plan to give HMRC power to issue regulations requiring digital platforms to report information about sellers’ income: HM Revenue and Customs→

Americas

Can GILTI and the GloBE be harmonized in a Biden administration?

Daniel Bunn, Vice President of Global Projects, Tax Foundation, discusses the need for the US’s GILTI rules and the Inclusive Framework’s GloBE proposal to be harmonized . . .

Americas

US Tax Court decision in Coca-Cola is at odds with economic principles

Dr. Ednaldo Silva of RoyaltyStat, Bethesda, Md., identifies flaws in the US Tax Court’s decision in the Coca-Cola transfer pricing dispute . . .

Africa

Zambia introduces country-by-country reporting

Rubeena Dina and Kennedy Munyandi, of GTS Africa, discuss the Zambian government’s issuance of transfer pricing regulations addressing country-by-country reporting, which became effective January 1 . . .

Professor says Coca Cola case signals possible shift in US transfer pricing litigation, may affect Facebook dispute: Reuven S. Avi-Yonah / SSRN→

Europe

EU to negotiate public country-by-country reporting

As anticipated, the EU Council today agreed to engage in negotiations with the European Parliament for . . .

Europe

EU public country-by-country reporting: final call

Francesca Amaddeo a Lecturer-Researcher at the Tax Law Competence Centre (SUPSI), Manno, Switzerland, discusses important EU developments regarding public country-by-country reporting . . .

Americas

Jose E. Murillo named US Deputy Assistant Secretary for International Tax Affairs

The US Treasury Department announced today that Jose E. Murillo has been appointed the new Deputy Assistant Secretary for . . .

Americas

Tech group sues Maryland over new tax on digital ads: Ashley Gold/Axios→

Asia-Pacific

First Look: India Supreme Court settles long-running dispute over taxation of software payments