Latest

The Kenyan government on December 14 published common reporting standard draft regulations under the Tax Procedures Act relating to the exchange of information in tax matters . . .

Asia-Pacific

OECD review of tax ruling exchange standard finds 36 countries could improve

Out of 131 countries the OECD reviewed in a 2020 peer review report released on December 14, 95 received no flags for improvement with respect to implementing the OECD minimum standard on exchange of information on tax rulings; however, 36 countries fell short, including . . .

Asia-Pacific

Japan 2022 tax plan adopts tax incentives to boost employee pay through new deductions for companies that increase wages; declines to adopt capital gains tax hike or carbon tax: Nikkei Asia

Americas

Panama adapts laws on exchange of information for tax purposes to international standards

Lilia Isabel Lee, BDO Panama, discusses Panama’s November 11 approval of Law 254, amending legislation on international tax transparency and adapting the exchange of information for tax purposes to international . . .

Africa

OECD updates and expands transfer pricing country profiles

December 13, 2021

The OECD today released updated transfer pricing country profiles for 21 countries, including three countries for which it has not previously published profiles: Albania, Kenya, and . . .

Accounting

US Senate draft of budget bill tweaks corporate tax provisions

December 13, 2021

US Senate Finance Committee Chairman Ron Wyden (D-Ore.) on December 11 unveiled his version of the House’s approved budget bill for consideration in the Senate, revising some corporate tax provisions adopted in the House version, including the corporate minimum tax and . . .

Belgium

Belgium and France sign new tax treaty

December 13, 2021

Moïse Gnakouri, Catholic University of Louvain, discusses the new tax treaty Belgium and France signed on November 9, which complies with new international standards, and includes several changes, including the taxation of capital gains on the sale of shares of companies with assets consisting . . .

Asia-Pacific

Australian corporate tax compliance improves under agency efforts, ATO claims

December 10, 2021

The Australian Taxation Office states that its latest annual corporate tax transparency report, published December 10, demonstrates that voluntary tax compliance by large corporations is improving; the percentage of large corporations with a “high assurance” rating has increased from just . . .

Cyprus

Cyprus finance minister announces plan to increase corporate tax rate next year from 12.5% to 15%, in line with OECD deal, and expects minimal investment impact: Financial Mirror→

December 10, 2021

Asia-Pacific

Azerbaijan amends tax laws relating to CFCs, tax havens, transfer pricing

December 10, 2021

Leyla Safarova, BM Morrison Partners, discusses Azerbaijan’s significant tax code changes, which will become effective on January 1, 2022, including new controlled foreign corporation (CFC) rules and transfer pricing amendments, as well as measures focused on . . .

Europe

Italy tax agency issues circular on transfer pricing documentation rules

Luca Tortorella and Michele Targa, Gatti Pavesi Bianchi Ludovici, discuss the Italian revenue agency’s November 26 release of Circular No. 15/E clarifying new instructions relating to amended transfer pricing documentation requirements issued last year that increase the administrative burden on . . .

Accounting

Seychelles to amend business tax rates, expand transfer pricing capacity

The government of Seychelles plans to reduce its business tax rates beginning in January 2022, according to the national budget delivered November 12, and is working on other business and international tax reforms, including expanding transfer pricing . . .

Multinational

Corporate tax rates dropped in 17 countries in 2021 (including Chile, Tunisia, and France) and increased in just three (Argentina, Bangladesh, Gibraltar), continuing 40-year global downward trend in rates: Sean Bray / Tax Foundation→

Americas

Bahamas reportedly urged by IMF to get ahead of global tax deal and establish 15% corporate tax rate to avoid ‘reputational risks’ to economy and ensure revenues go to Bahamian government: Neil Hartnell / The Tribune→

Europe

EU VAT rate rules to be relaxed, modernized under Council agreement

December 8, 2021

The European Council on December 7 reached an agreement on a proposed directive to update the EU’s rules on value-added tax (VAT) rates, allowing EU member states to have more options to apply reduced and zero VAT rates on certain goods and services in line with . . .

Americas

US beneficial ownership reporting rules target shell companies, tax evasion

December 8, 2021

The US Treasury Financial Crimes Enforcement Network (FinCEN) on December 7 issued proposed rules to implement beneficial ownership reporting requirements to “impede malign actors from abusing legal entities, like shell companies, to conceal . . .

Asia-Pacific

Israeli transfer pricing case addresses reclassification of trademark transaction, arm’s-length R&D pricing

December 8, 2021

Assaf Hasson, Assaf Hasson & Co., discusses the Israeli Jerusalem District Court’s recent ruling in favor of the Israel Tax Authority in a transfer pricing case, Sephira & Offek Ltd. and Israel Daniel Amram, involving the reclassification of a trademark transaction between . . .

Americas

Whirlpool profits routed through foreign subsidiary subject to US tax, court holds

The US Court of Appeals for the Sixth Circuit in a December 6 decision held that Whirlpool must pay taxes on more than USD 45 million in profits for which the appliance manufacturer had evaded paying taxes by shuffling the income through a Luxembourg subsidiary with a . . .

Africa

Kenyan High Court reviewing whether country’s tax treaties should be invalidated for enabling abusive tax avoidance and restricting tax authority’s ability to collect taxes: Kamau Muthoni / The Standard→

Americas

US corporations seek more exemptions from proposed minimum corporate ‘book tax,’ including for pension plans, depreciation – to supplement planned carve-outs for R&D, other investments: Laura Weiss / Roll Call→

Africa

African Tax Administration Forum official urges African countries to review tax incentives in light of OECD deal to assess whether they would still be effective or merely cede tax rights: Ibrahim Apekhade Yusuf / The Nation→

Americas

Canadian company not liable for tax for foreign affiliate bank, Supreme Court holds

December 6, 2021

The Supreme Court of Canada ruled in a December 3 decision that Canadian corporation Loblaw Financial Holdings qualified for an exception from Canadian taxation with respect to its foreign subsidiary Glenhuron, a Barbados-based bank; while Canadian companies generally must . . .

Americas

OECD countries’ tax revenues fell in 2020, but less than their GDPs

December 6, 2021

The ratio of tax revenues to GDP in OECD countries rose slightly in 2020 amid the Covid-19 pandemic, as nominal tax revenues generally fell but did so at a lower rate than countries’ GDPs, according to the OECD’s 2021 annual revenue statistics released December 6; corporate income tax revenues . . .

Europe

EU adoption of public country-by-country reporting translated into drop in markets, especially for MNEs with low effective tax rates, suggesting investor concern about reputational risks: Müller, Spengel & Weck / SSRN→

December 6, 2021

Accounting

Zambian budget 2022 includes corporate income tax, transfer pricing changes

December 3, 2021

The Zambia Revenue Authority on November 5 published an overview of tax measures in the Minister of Finance’s 2022 budget address, including changes to the corporate income tax rate and amendments to transfer pricing regulations . . .

Americas

US proposed ‘163(n)’ interest limitation must stay in budget bill – despite lobbying attempts to strip it – to discourage MNE excessive, base-eroding interest deductions against US taxable income: FACT Coalition→

December 3, 2021

Americas

Coca-Cola denied reconsideration in transfer pricing dispute due to ‘futile’ arguments

The US Tax Court will not reconsider its 2020 transfer pricing decision that increased Coca-Cola’s US taxable income by about USD 9 billion in a case involving the pricing of cross-border intercompany royalties; in an order dated October 26, the court denied Coca-Cola’s motion, stating it would be “futile” . . .

Asia-Pacific

Taiwan signs tax treaty with South Korea, seeks trade agreements with India and Australia: Lin Chia-nan / Taipei Times→

Americas

Cayman official sees no big problem for territory in OECD tax deal, which will not affect Cayman’s ‘bread and butter’ investment funds but MNEs with minimal Cayman exposure: Michael Klein / Cayman Compass→

Africa

Kenya trial to bridge transfer pricing and customs in landmark customs audit case