The consultation will run until September 10.Continue Reading
Ireland says no to global minimum corporate tax proposal
Europe
Transfer pricing news, BEPS news, and international tax news in Europe
Ireland confirms new DAC6 reporting format
DAC6 Schema Version 1.1 is applicable for all exchanges until July 31, 2021.Continue Reading
European Commission hails G20 agreement on digital tax
The tax reform package will include a reallocation of taxing rights – where companies pay tax wherever they conduct business – and a global minimum effective tax rate of at least 15 percent to tackle aggressive tax planning and stop the corporate tax “race to the bottom.” Continue Reading
Moroccan tax authority publishes MAP guidance
The guidance clarifies the terms and conditions that taxpayers must fulfil to avail MAP, including access to MAP, submitting MAP requests, and the various deadlines, among others.Continue Reading
EU Commission asks Bulgaria, Sweden to address tax issues
Under this tax scheme, interest deductibility is denied in relation to loan arrangements between affiliated companies established within the EU, irrespective of whether the terms and conditions of those arrangements remain at arm’s length or not.Continue Reading
Tax administrations discuss transfer pricing issues
The WCO facilitator focused on the Customs valuation treatment of related-party transactions and instruments adopted by the Technical Committee on Customs Valuation. The OECD facilitator elaborated on the arm’s length principle and its application, comparability analysis, and transfer pricing documentation. Continue Reading
International tax reform takes center stage in G7 meeting
The G7 (which includes the UK, the US, Canada, Japan, Germany, France, Italy, plus the EU) agreed the principles of an ambitious two Pillar global solution to tackle the tax challenges arising from an increasingly globalized and digital global economy.Continue Reading
Cyprus extends DAC6 penalty relief
On March 18, 2021, the Government approved Law to require taxpayers/ intermediaries to report information on certain tax arrangements.
The Cyprus Tax Department will not impose administrative fines for overdue submission of DAC6 information that will be submitted until the September 30, 2021.
The penalty relief applies to:
- Reportable cross-border arrangements that have been made between 25 June 2018 and 30 June 2020 and had to be submitted by 28 February 2021.
- Reportable cross-border arrangements that had been made between 1 July 2020 and 31 December 2020 and had to be submitted by 31 January 2021.
- Reportable cross-border arrangements made between 1 January 2021 and 31 August 2021, that had to be submitted within 30 days from the date they were made available for implementation or were ready for implementation or the first step in the implementation has been made, whichever occurred first.
- Reportable cross-border arrangements for which secondary intermediaries provided aid, assistance or advice, between 1 January 2021 and 31 August 2021 and had to submit information within 30 days beginning on the day after they provided aid, assistance or advice.
On March 18, 2021, the Government approved Law to require taxpayers/ intermediaries to report information on certain tax arrangements.
Stakeholders engage on changes to OECD Model Tax Convention
The OECD has received comments from 22 stakeholders including the Big 4, Mexican Institute of Public Accountants, International Chamber of Commerce, European Business Initiative on Taxation, Business at OECD (BIAC), and Vienna University of Economics and Business, among others.Continue Reading
EU governments agree on MNE tax reporting
The reporting will take place within 12 months from the date of the balance sheet of the financial year in question. The directive sets out the conditions under which a company may obtain the deferral of the disclosure of certain elements for a maximum of five years.Continue Reading
EU Commission launches research lab to tackle aggressive tax planning
The Observatory will be fully independent in conducting its research, objectively informing policymakers and suggesting initiatives that could help to better tackle tax avoidance and aggressive tax planning, among other things.Continue Reading
New IMF paper on taxing multinationals in Europe
The paper analyzes corporate tax spillovers in Europe with a focus on the channels and magnitudes of both profit shifting and corporate income tax competition.Continue Reading
Hungary dismisses 15% global minimum corporate tax rate
Tállai emphasized that Hungary would not relinquish one of the most important elements of its economic sovereignty, the right to set taxes. According to him, the idea of a global minimum tax is in the interests of several high-taxing economic powers, because they were disadvantaged by international tax competition.Continue Reading
European Commission reveals tax agenda for next two years
On the agenda are measures to ensure greater public transparency by proposing that certain large companies operating in the EU publish their effective tax rates.Continue Reading
“The controlled transaction” in draft of the Poland’s Ministry of Finance General Ruling for Transfer Pricing Purposes
By Błażej Kuźniacki (Attorney-at-Law, Deputy Director for Strategic Tax Advice & Dispute Resolution,PwC Poland) & Katarzyna Kotowska (Senior Associate, Transfer Pricing, PwC Poland) & Piotr Niewiadomski (Tax Advisor, Director in Transfer Pricing, PwC Poland)
The definition of controlled transaction in the light of Polish Corporate Income Tax Act (CIT Act) and explanatory memorandum
According to Article 11a point 6 of the CIT Act, a controlled transaction refers to economic activity identified on the basis of actual behavior of the parties to the transaction, including allocation of income to the foreign permanent establishment (PE), where the conditions are imposed/made as a result of existing relations.Continue Reading
Parties to BEPS MLI approve key guiding principles
The Conference has agreed that as with any international agreement, the MLI shall be interpreted in good faith in accordance with the ordinary meaning to be given to the terms of the treaty in their context and in the light of its object and purpose.Continue Reading
Paschal Donohoe discusses international tax reform
Donohoe said that he desired “an outcome that is a fair and balanced compromise by and for all the 139 countries in the OECD Inclusive Framework.”
Ireland’s commitment remains resolute towards reaching an agreement on digital economy taxation, Ireland’s Minister for Finance, Paschal Donohoe, has said.Continue Reading
Ireland consulting on tax treaty policy
The consultation period will run until May 7, 2021.
Ireland’s Finance Minister on April 7 launched a public consultation on Ireland’s future tax treaty policy, particularly in the context of potential outcomes of international tax discussions at the OECD.Continue Reading
US, Europe discuss digital economy taxation
Janet Yellen, who took oath as the 78th Secretary of the US Department of the Treasury on January 26, held a discussion with counterparts in France, Germany and the UK on digital economy taxation.Continue Reading
OECD updates guidance on COVID-19 pandemic and tax treaties
The update revisits the guidance issued by the OECD Secretariat on the impact of the COVID-19 pandemic on tax treaties in April last year.Continue Reading
Ireland updates corporate tax roadmap
According to the update, Ireland will seek to implement interest limitation rules in accordance with the Anti-Tax Avoidance Directive (ATAD) standard; legislate for new international tax transparency rules for digital platforms; legislate for reverse hybrids aspect of ATAD anti-hybrid rules; adopt the authorized OECD approach for transfer pricing of branches; and consider actions that may be needed in respect of outbound payments from Ireland and our wider withholding tax regime.Continue Reading
Platform for Collaboration on Tax releases toolkit on transfer pricing documentation
The toolkit aims to help countries implement effective transfer pricing documentation requirements so that they can protect their tax bases, reduce profit shifting, and raise much-needed revenues for the recovery phase.Continue Reading
Estonia ratifies BEPS MLI to tackle MNE tax avoidance
For Estonia, the BEPS MLI will enter into force on May 1, 2021. Continue Reading
Digital services taxes of Austria, Spain and UK discriminatory: United States
In a release issued on January 14, the USTR said that the each one of these digital services taxes discriminates against US companies, is inconsistent with prevailing principles of international taxation, and burden or restricts US commerce.Continue Reading
Malta makes available online DAC6 registration process
Access to submit DAC6 reports shall be available in the coming days, the tax authority said.Continue Reading
OECD Inclusive Framework on BEPS to meet on January 27-28
The meeting will be held virtually and will be open to the public.
Portuguese EU Presidency to focus on digital economy taxation
In particular, the Presidency will address the challenges of European taxation, including the model for taxation of the digital economy, under the principles of fairness and tax efficiency.Continue Reading
OECD releases agenda for public consultation on Pillar One, Pillar Two Reports
The Blueprints reflect the convergent views of the Inclusive Framework on many of the key policy features, principles and parameters of both Pillars, and identify remaining technical and administrative issues as well as policy issues where divergent views among Inclusive Framework members remain to be bridged.Continue Reading
US suspends retaliatory tariffs on French digital services tax
The US Trade Representative said that it has decided to suspend the tariffs in light of the ongoing investigation of similar DSTs adopted or under consideration in ten other jurisdictions.Continue Reading
Indian, Italian and Turkish digital service tax discriminatory: US Trade Representative
US Trade Representative has published findings on digital service tax in India, Italy, and Turkey calling it discriminatory and burdensome.Continue Reading
OECD schedules public consultation on the Pillar One, Two Blueprints
The meeting will be held on January 14-15, 2021.Continue Reading
Malta publishes detailed DAC6 guidance
Maltese tax authority issues key guidance on DAC6 reportable cross-border arrangements. The guidance explains key concepts with the help of illustrations.Continue Reading
UK to repeal DAC6 in 2021
The UK tax authority, HM Revenue and Customs, has announced that it will repeal the DAC6 reporting requirement in 2021 and replace it with the OECD’s mandatory disclosure rules (MDR).
The announcement was made after completion of the negotiations between the UK and the EU on a Free Trade Agreement (FTA).
In a letter sent to stakeholders on December 31, HMRC said that reporting under DAC6 will still be required for a limited time, but only for arrangements which meet hallmarks under Category D, in line with the UK’s obligations under the FTA.
Category D sets out specific hallmarks concerning automatic exchange of information and beneficial ownership.
The International Tax Enforcement (Disclosable Arrangements) (Amendment) (No. 2) (EU Exit) Regulations, 2020 – laid before the House of Commons on December 30 – state that “(5) For the purposes of these Regulations, the DAC is to be read as if— (h) in Annex IV, Part 1 [the Main Benefit Test] and hallmark categories A, B, C and E in Part II were omitted.”
In the coming year, the UK will consult on and implement the OECD’s MDR as soon as practicable, to replace DAC6 and transition from European to international rules, HMRC told stakeholders.
Italy publishes draft guidance on DAC6
Comments on the draft Circular on DAC6 must be submitted to the Italian tax authority by January 15, 2021.Continue Reading
Ireland updates DAC6 guidance
The Tax and Duty Manual Manual on DAC6 has been updated in a number of respects. The updates are set out in Appendix V. Continue Reading
Greece publishes 2019 list of preferential tax regimes
Greece has dropped Oman and Seychelles from the list of preferential tax regimes for 2019.Continue Reading
OECD issues guidance on transfer pricing implications of COVID-19 pandemic
The guidance on transfer pricing implications of the COVID-19 pandemic represents the consensus view of the 137 members of the OECD Inclusive Framework on BEPS.Continue Reading
Germany, Pakistan ratify BEPS MLI to tackle tax avoidance
Germany and Pakistan have deposited their instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI).Continue Reading
200+ organizations respond to OECD reports on Pillar One and Pillar Two blueprints
The public consultation meeting will be held virtually on January 14-15, 2021.Continue Reading
OECD reveals country practices on hard-to-value intangibles
The information provides with a better understanding of the extent to which the HTVI approach described in Chapter VI of the Transfer Pricing Guidelines has been adopted and is applied in practice by countries around the world. Continue Reading
OECD hails transparency on tax rulings
81 jurisdictions are now fully in line with the BEPS Action 5 minimum standard.Continue Reading
Canada objects to Denmark’s BEPS MLI reservation on arbitration
Canada states that Denmark’s reservation “exceeds the scope of cases for which a reservation may be made under that provision.”Continue Reading
MAP cases still taking a long time to be resolved: OECD
Around 85 percent of the MAPs concluded for transfer pricing cases in 2019 fully resolved the issue, which reflects an improvement in the collaborative approach taken by competent authorities.Continue Reading
Malta releases DAC6 XML Schema and User Guide
DAC6 has been implemented into Maltese legislation by virtue of legal notice L.N. 342 of 2019.Continue Reading
OECD releases blueprint on digital tax reform
Comments must be received by December 14.Continue Reading
UN tax committee to hold 21st session from October 20
The exact meeting times during this band of dates and the modalities of the meetings will be advised shortly.Continue Reading
Brussels to appeal Apple State aid tax case in Ireland
In July 2020, the General Court annulled the Commission’s 2016 decision concluding that Ireland granted illegal State aid to Apple through selective tax breaks.Continue Reading
Swiss Federal Council approves tax treaty with Bahrain
The new tax treaty implements the minimum standards in accordance with the OECD’s project on base erosion and profit shifting. Continue Reading
Proposed modifications to the German Transfer Pricing Legislation
By Dr. Björn Heidecke (Director, Deloitte Germany, Hamburg) & Tatchamon Nanavaratorn (Senior Consultant, Deloitte Germany, Hamburg)
As part of the obligation to implement the European-wide mechanism to counter base erosion and profit shifting, the German Federal Ministry of Finance circulated a draft law on 10 December 2019 (hereafter referred to as “draft law”). Besides conforming to the requirement as directed by the EU Anti-Tax Avoidance Directive, the draft law brings about the modification to the current transfer pricing legislation of both the Foreign Tax Act (Außensteuergesetz) and the Fiscal Code (Abgabenordnung), and it introduces topics not previously codified into the legislation in accordance with the BEPS concepts introduced by the OECD. The draft law takes a strict stance on businesses’ actual conducts rather than their contractual arrangements.Continue Reading
Irish tax authority extends DAC6 timelines by six months
The 30-day time period will commence on January 1, 2021. Continue Reading
UK defers DAC6 deadlines by six months
The deferral is aimed at providing taxpayers and intermediaries dealing with the impacts of the Covid-19 pandemic with additional time to ensure that they can comply with their obligations.Continue Reading
Sweden issues detailed tax guidance on DAC6
The guidance covers topics such as the purpose of reporting, the kinds of arrangements that must be reported, who should report the information, the list of information that must be submitted, and the reporting timelines.Continue Reading
Finland issues tax treaty guidance
The guidance states that the OECD’s Multilateral Instrument on BEPS adopted in Finland on February 13, 2019, must be taken into account when applying tax treaties.Continue Reading
EU member states agree on ‘optional’ postponement of DAC6 reporting deadlines
The DAC6 reporting requirement was originally intended to take effect from July 1, 2020, postponement has been agreed in view of COVID-19 pandemic.Continue Reading
US Trade Representative to investigate digital services tax rules in EU, nine others
These ten trading partners are: Austria, Brazil, the Czech Republic, the European Union, India, Indonesia, Italy, Spain, Turkey, and the United Kingdom.Continue Reading
European Commission defers DAC6 reporting for three months
The Commission clarified that the beginning of application of DAC6 will remain July 1, 2020, and the reportable arrangements made during the postponement period will have to be reported once the deferral has terminated. Continue Reading
Poland suspends DAC6 reporting until June 30
The suspension of DAC 6 reporting obligation applies both to domestic and cross-border tax arrangements.Continue Reading
Financial associations call upon EU Commission to defer DAC6 reporting
UK 2020 Budget retains 19% corporate tax rate
The Government is introducing from April 1, 2020, a new two percent digital services tax on the revenues earned by certain digital businesses.Continue Reading
Belgian Transfer Pricing Circular sets out tax authority’s view on 2017 OECD Guidelines
By Géry Bombeke (Partner, Baker McKenzie, Brussels)
On February 25, 2020, the Belgian Tax Administration published a new transfer pricing Circular (Circular 2020/C/35) (TP Circular) summarizing the post-base erosion and profit shifting (BEPS), OECD Transfer Pricing Guidelines and reflecting the tax authority’s views thereon.Continue Reading
Will Smith joins White & Case as tax partner
Global law firm White & Case LLP has hired Will Smith as a partner in the firm’s London office.
Continue Reading
Travers Smith appoints Emily Clark as Head of Tax
Emily Clark has joined corporate law firm Travers Smith LLP as head of tax.
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Norway consulting on new withholding tax on interest, royalties
Comments must be received by May 27.Continue Reading
BVI to accept country by country report filings from March 2020
International Tax Authority informs BVI Constituent Entities, that are part of Multinational Entity Group, that it will soon be ready to receive filings for CbC reporting.Continue Reading
Diverted profits tax yields UK over GBP 5 billion in extra tax
Between 2019-2020, HMRC secured GBP 480 million through DPT investigations.Continue Reading
Cyprus, Saudi Arabia ratify BEPS MLI to tackle MNE tax avoidance
The BEPS MLI will enter into force for these two countries on May 1, 2020.Continue Reading
Liechtenstein ratifies BEPS MLI to tackle MNE tax avoidance
The BEPS MLI will enter into force for Liechtenstein on April 1, 2020.Continue Reading
Tax treaty between Albania, Saudi Arabia come into force
The tax treaty applies from January 1, 2020.Continue Reading
Tax treaty between Japan, Morocco signed
The tax treaty will become effective after both countries have completed their respective domestic procedures.Continue Reading
185+ organizations respond to OECD’s global anti-base erosion proposal
The OECD will hold a public consultation meeting on December 9. Continue Reading
US responds to French digital tax with USD 2.4 billion tariffs; France calls it ‘unacceptable’
French Finance Minister, Bruno Le Maire, termed the US’ proposed action as unacceptable.Continue Reading
EU Commission warns Austria, Ireland to transpose interest limitation rules
The Commission may bring the cases before the Court of Justice of the EU if Austria and Ireland do not act by February 1, 2020.Continue Reading
US report on French digital services tax due next week
Earlier in July 2019, the US Trade Representative opened an investigation into whether the French DST is discriminatory in nature and harms US’ interests.
Continue Reading
OECD seeking input on MAP peer reviews of 13 jurisdictions
Comments must be received by December 16, 2019.Continue Reading
Irish corporation tax revenue touches Euros 10.4 billion
The paper highlights the marked rise in corporation tax receipts and corporate profitability since 2014.Continue Reading
OECD consulting on global anti-base erosion proposal
Comments must be received by December 2.Continue Reading
Switzerland amending tax treaties with New Zealand, Netherlands, Norway, and Sweden
The protocols contain an anti-abuse clause.Continue Reading
OECD consulting on digital tax proposal
Comments must be received by November 12, 2019. Continue Reading
Denmark ratifies BEPS MLI to tackle MNE tax avoidance
For Denmark the BEPS MLI will enter into force on January 1, 2020.Continue Reading
Ireland Transfer Pricing Feedback Statement Explained
By Catherine O’ Meara (Partner, Matheson, Dublin)
The Irish Government recently published a Transfer Pricing Rules Feedback Statement, which confirms that changes to the country’s transfer pricing rules and their implementation are forthcoming.Continue Reading
Hong Kong, Estonia sign tax treaty
The tax treaty will enter into effect after both countries complete their respective ratification procedures.
EU Commission investigating 39 Belgian MNE tax rulings
The rulings practically resulted in over 50 percent and in some cases up to 90 percent of those companies’ accounting profit being tax exempt.Continue Reading
OECD preparing for ‘big bang’ reform to address digital economy taxation
Gurría also described the delivery of the OECD’s BEPS package in 2015 as one of the two “big bang” developments that transformed the global tax landscape in recent years.Continue Reading
US, Luxembourg ratify tax treaty protocol
The Protocol will be effective for requests for information made on or after the date of entry into force for tax years on or after January 1, 2009.Continue Reading
Don’t focus only on corporation tax: Amazon
Amazon is a major UK employer and currently employs over 27,500 UK people. The company said that this number would increase to over 29,500 this year.
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Glencore wins $92m transfer pricing dispute with ATO
The tax authority is considering whether to appeal the decision.Continue Reading
Ireland updating transfer pricing regime
The proposals would be included in Finance Bill, 2019 and, if enacted, would apply for chargeable periods commencing January 1, 2020.Continue Reading
US releases details about tax treaty protocols with Japan, Spain
Mandatory binding arbitration clause is included in the tax treaty protocols to resolve tax treaty disputes.Continue Reading
Canada, Switzerland ratify instrument to tackle tax avoidance
The BEPS MLI will enter into force in both countries on December 1, 2019.Continue Reading
Countries agree on proposals to fix digital economy taxation
While members of the Inclusive Framework on BEPS did not yet agree on the conclusions, they committed to work together to deliver a final report in 2020, with an update in 2019.Continue Reading
Austria mulling 5% digital tax on large businesses
Austria proposes to impose a five percent digital tax to close tax loopholes and ensure that large digital corporations are called to account.Continue Reading
Georgia ratifies tax instrument to tackle BEPS
For Georgia the BEPS MLI will enter into force on July 1, 2019. Continue Reading
Armenia joins OECD’s BEPS Inclusive Framework
Armenia has newly joined the OECD’s Inclusive Framework on base erosion and profit shifting.Continue Reading
Chris Whitehouse joins Questro’s transfer pricing practice
Transfer pricing advisory Questro International has hired Chris Whitehouse as a transfer pricing partner for its Zurich office.
Ireland deposits BEPS MLI to tackle tax avoidance
For Ireland, the BEPS MLI will enter into force in May 2019.Continue Reading
New Swiss-Ukraine tax treaty protocol signed
The treaty protocol provides for a low withholding tax rate of five percent for royalty and interest payments. An arbitration clause is also included to increase legal certainty for taxpayers.Continue Reading
Manuel Koch joins transfer pricing specialist Questro’s Stuttgart office
Transfer pricing specialist Questro International has hired Manuel Koch as a Partner for the firm’s office in Stuttgart, Germany.
Koch brings significant experience of over ten years specialization in transfer pricing consulting. Koch has wide experience in international tax planning engagements for international corporates including holding and principal structures as well as Swiss finance branches and IP boxes.Continue Reading
Dutch tax rulings to Nike under EU Commission’s scanner
The Commission is looking into five tax rulings issued by the Dutch tax authority to Nike group companies in the Netherlands between 2006 to 2015.Continue Reading
Hong Kong, Finland tax treaty to take effect in April 2019
The treaty will be effective from April 1, 2019.Continue Reading
New EU corporate tax avoidance rules enter into force
The new anti-abuse measures entered into force on January 1, 2019.Continue Reading
Malta ratifies tax instrument to tackle base erosion and profit shifting
The BEPS MLI will enter into force for Malta on April 1, 2019.
Gibraltar provided illegal tax benefits to MNEs: EU Commission
Gibraltar must recover unpaid taxes of around EUR100m from companies that benefited from the corporate tax exemption regime for interest and royalties as well as from the five tax rulings.Continue Reading
OECD issues second peer review report on BEPS Action 5
The OECD has made 60 jurisdiction-specific recommendations on issues such as improving the timeliness of the exchange of information and ensuring that exchanges of information are made with respect to preferential tax regimes that apply to income from intellectual property.Continue Reading
Bulgaria introduces new interest limitation and CFC regimes
By Elizabeth Sidi (Senior Tax Consultant, PwC, Bulgaria)
Bulgaria is introducing new interest limitation rules and a new controlled foreign corporation regime from January 1, 2019.
Continue ReadingIndian tax authority undergoing ratification process for BEPS MLI
Important process of ratifying the BEPS MLI is on. In 2019-2020, the provisions will come into effect, says Akhilesh Ranjan.
Continue ReadingDenmark publishes draft tax proposal to ratify BEPS MLI
The legislation is intended to enter into force in July 2019. Continue Reading
France, Germany propose new digital tax plan
France and Germany urged the EU Council to adopt the proposed digital services tax by March 2019.Continue Reading
Belgium publishes draft transfer pricing guidance for public comments
By Bram Markey (Director, Transfer Pricing, PwC Belgium)
The Belgian tax authority has issued a draft Circular on the 2017 update to the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations.Continue Reading
New tax treaty between Switzerland, Pakistan effective from January 2019
An arbitration clause is included in the new tax treaty to resolve double taxation disputes.Continue Reading
Netherlands to Deny Tax Rulings to ‘Letterbox’ Companies
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable at editor@transferpricingnews.com
Netherlands will be putting into place stricter requirements for the issue of international tax rulings by the end of June 2019.
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Ireland, Malta Close ‘Single Malt’ Tax Avoidance Structure
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable at editor@transferpricingnews.com
Ireland and Malta have agreed to close the “Single Malt” – an aggressive tax planning structure in which some multinational corporations use a company incorporated in Ireland but tax-resident in Malta.
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BDO Melbourne Gets New Tax Partner in Michael Smith
Michael Smith has joined BDO Melbourne’s transfer pricing team as a partner.
Smith has nearly 20 years’ of transfer pricing experience from around the world. He has worked in London, New York, and Sydney. Continue Reading
Norway to Ratify BEPS Multilateral Instrument
The Norwegian Government has submitted to the Parliament a proposal to ratify the OECD’s Multilateral Instrument to implement tax treaty-related measures to tackle base erosion and profit shifting (BEPS).Continue Reading
EU Joint Transfer Pricing Forum Issues Recommendations on Multilateral Transfer Pricing Audits
By Bram Markey (Director, Transfer Pricing, PwC Belgium)
The EU Joint Transfer Pricing Forum has published a report, which aims to address the lack of guidance on bilateral and multilateral transfer pricing audits.
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Global Solution Needed to Tax Digital Economy: DIGITALEUROPE
DIGITALEUROPE, which represents the digital technology industry in Europe, has called upon governments to negotiate a comprehensive, global, long-term tax solution at the OECD-level to address the tax challenges of the digital economy.
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OECD’s Work on Harmful Tax Practices on Track
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
The OECD has published a report covering the assessment of 53 preferential tax regimes as part of its work under base erosion and profit shifting (BEPS) Action 5, on harmful tax practices.
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Google, Facebook to Appear Before EU Tax Committee
European Parliament’s Special Committee on Tax Avoidance (TAX3) is going to hold a hearing on November 27 with representatives from the Kering Group, Google, and Facebook.
The aim of the hearing is to assess the progress made by these multinational enterprises in the implementation of the base erosion and profit shifting project.Continue Reading
Ireland Consulting on Corporate Anti-Tax Avoidance Measures
On November 14, 2018, Ireland’s Department of Finance published for public comments a consultation document on the hybrid mismatch and interest limitation measures to be introduced as part of the implementation of the EU Anti-Tax Avoidance Directives (ATAD and ATAD2).
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Transfer Pricing Regulation in Albania and Recent Developments
By Erinda Xhaferraj (Tax Manager, PwC, Albania) and Edland Graci (Transfer Pricing Senior Associate, PwC, Spain)
The amendment in 2014 of Albania’s Income Tax Law and the release of the Transfer Pricing Instruction introduced changes that are of importance to Albanian taxpayers performing cross-border transactions. For the first time taxpayers were faced with a complex and sophisticated legislation, which required the application of arm’s length in intra-group transactions.Continue Reading
OECD Issues Guidance on the Impact of BEPS MLI
The OECD has published new guidance for the development of synthesised texts to facilitate the interpretation and application of tax agreements modified by the Multilateral Convention to Implement Tax Treaty Measures to Prevent Base Erosion and Profit Shifting (BEPS MLI).Continue Reading
Countries Discuss Implementation of BEPS Minimum Standards
More than 60 delegates from 16 countries met recently at the regional meeting of the Inclusive Framework on base erosion and profit shifting (BEPS) in Eastern Europe and Central Asia to discuss implementation of the BEPS measures.Continue Reading
UK Launches Consultation on Digital Services Tax
The UK Government is seeking stakeholders’ views on the detailed design, implementation, and administration of the proposed two percent digital services tax (DST).Continue Reading
UK Announces 2% Digital Services Tax From 2020
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
UK would introduce a two percent digital services tax (DST) to ensure digital businesses pay tax that reflects the value they derive from UK users, UK Chancellor Philip Hammond announced in his October 29 Budget Speech.Continue Reading
Ukraine Publishes Draft Tax Law to Implement BEPS Proposals
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
Ukraine has published a draft law aimed at implementing some of key measures proposed under the OECD’s base erosion and profit shifting (BEPS) project.
Continue Reading
Ireland Signs Order to Ratify BEPS Convention
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
Ireland’s Government has signed an Order to facilitate ratification of the OECD’s Multilateral Instrument to implement tax treaty-related measures to prevent base erosion and profit shifting (BEPS).Continue Reading
EU Digital Services Tax Proposal ‘Unfair’: US Treasury Secretary
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
US Treasury Secretary Steven Mnuchin has issued a statement noting “strong” concerns with countries’ consideration of a digital services tax proposal.
In March 2018, the EU Commission announced it proposal to introduce an interim tax, which would cover the main digital activities that currently escape tax altogether in the EU.Continue Reading
Tax Officials Discuss BEPS Implementation Challenges
Senior tax experts met at an event in Portugal on October 23 to discuss the strategic importance of the OECD’s work on base erosion and profit shifting (BEPS) and the challenges faced by tax administrations in implementing the BEPS proposals.Continue Reading
Abandon Digital Services Tax Proposal: US Tells EU
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
The US Senate Committee on Finance has asked the European Commission to “abandon” its proposal to introduce a three percent digital services tax on revenues arising from the supply of certain digital services.Continue Reading
Further Three Jurisdictions Join BEPS Inclusive Framework
Antigua and Barbuda, Dominica, and Saint Vincent and the Grenadines have newly joined the OECD’s Inclusive Framework on base erosion and profit shifting (BEPS).
The Inclusive Framework on BEPS allows interested countries and jurisdictions to work with the OECD and Group of Twenty nations on monitoring the implementation of the BEPS proposals.Continue Reading
New Japan, Spain Tax Treaty to Include MAP Arbitration
Japan and Spain signed a new tax treaty on October 16. The tax treaty wholly amends the existing tax treaty between Japan and Spain, which entered into force in 1974.
As per the new tax treaty, a withholding tax exemption applies to investment income from interest and royalties. Withholding tax on dividends is also exempt in certain situations.Continue Reading
Japan, Croatia Sign New Tax Treaty
Japan and Croatia signed a new tax treaty on October 19.
The new tax treaty provides for a reduced withholding tax on dividends, interest, and royalties. In some case, these are exempt.Continue Reading
Switzerland Expands Country List for Exchange of CbC Reports
The Swiss Federal Council on October 17 decided to expand the list of countries with which Switzerland would exchange country-by-country (CbC) reports.
The legal basis for the exchange of CbC reports entered into force for Switzerland on December 1, 2017. Switzerland had then submitted to the OECD a list of 108 countries with which the Government will exchange CbC reports.Continue Reading
Mutual Agreement Procedure Statistics Published for 2017
The OECD on October 10 published its 2017 mutual agreement procedure (MAP) statistics covering 85 tax jurisdictions.
According to the 2017 MAP statistics, new transfer pricing MAP cases are up by 25 percent and other MAP cases by 50 percent. Anecdotal evidence suggests that the increase in new MAP cases is due to a range of factors including the effects of the new reporting framework and increased awareness of and expectations from taxpayers about MAP, the OECD noted.Continue Reading
Two New Tax Directors Join RSM’s Manchester Office
Leading audit, tax, and consulting firm RSM has appointed two new tax directors to join the firm’s Manchester office.Continue Reading
Liberia: Where Transfer Pricing is in Full Bloom
Liberia is a typical example amongst developing African countries making noticeable effort to expand their tax base to the size it should appropriately be, therefore collecting more taxes and adapting to the fast-changing local and global business environment.Continue Reading
Belgium Announces Cooperative Tax Compliance Program
By Bram Markey (Director, Transfer Pricing, PwC Belgium)
The Large Enterprises Division of the Belgian tax administration has announced the launch of a two-year pilot project aimed at transforming the traditional approach of ex-post tax investigations towards a system of proactive, real-time, and constructive dialogue on corporate tax affairs.
Ireland Finance Bill 2018 to Include International Tax Measures
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
Ireland would introduce key international tax measures in Finance Bill 2018 to comply with the EU Anti-Tax Avoidance Directive, Finance Minister Paschal Donohoe said in his 2019 Budget Statement released on October 9. The Finance Bill 2018 is due to be published on October 18.Continue Reading
Norway’s Budget 2019 Includes BEPS Measures
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
The Norwegian Government on October 8 presented the country’s National Budget 2019, which includes a series of measures to tackle base erosion and profit shifting (BEPS).Continue Reading
Japan-Iceland Tax Treaty to Take Effect From January 2019
The tax treaty between Japan and Iceland will enter into force on October 31, 2018, Japan’s Finance Ministry has announced.Continue Reading
Switzerland-Latvia Tax Treaty to Contain Arbitration Clause
The protocol to amend the Switzerland-Latvia tax treaty entered into force on September 3, 2018, and will take effect from January 1, 2019. Continue Reading
Countries Share Ideas on Country by Country Reporting Implementation
Senior tax officials from over 20 countries recently met at a workshop to share experiences from the first year of country-by-country (CbC) reporting and explore how information can be used most effectively in the tax risk assessment of MNE groups.Continue Reading
Aruba Newest to Join BEPS Inclusive Framework
Aruba has now joined the OECD’s Inclusive Framework on base erosion and profit shifting (BEPS).
The Inclusive Framework on BEPS allows interested countries and jurisdictions to work with the OECD and Group of Twenty nations on monitoring the implementation of the BEPS proposals.Continue Reading
More Countries Ratify BEPS Convention
Australia, France, Japan, and the Slovak Republic have deposited their instruments of ratification of the OECD’s Multilateral Convention to implement tax treaty-related measures to prevent base erosion and profit shifting (BEPS).
For these four countries, the BEPS Convention would enter into force from January 1, 2019. The Convention entered into force last month for New Zealand, Serbia, Sweden, and the UK.Continue Reading
EU Commission to Drop Infringement Proceedings in Ireland-Apple State Aid Decision
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
The EU Commission is now to withdraw infringement proceedings against Ireland as the Government has now completed full recovery of the alleged State aid from Apple.Continue Reading
Saudi Arabia Signs OECD’s BEPS Multilateral Instrument
Saudi Arabia has become the 84th tax jurisdiction to sign the base erosion and profit shifting (BEPS) Multilateral Convention.
The BEPS Convention, negotiated by over 100 countries and jurisdictions, updates the existing network of 1,400 bilateral tax treaties and reduces opportunities for tax avoidance by multinational enterprises.Continue Reading
No Sweet Tax Deal between Luxembourg, McDonald’s: EU Commission
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
The EU Commission on September 19 decided that Luxembourg’s tax treatment of McDonald’s Europe Franchising does not violate the Luxembourg-US tax treaty and that tax rulings granted to McDonald’s do not infringe EU State aid rules.
The decision follows an in-depth investigation launched in December 2015, based on doubts that Luxembourg might have misapplied its tax treaty with the US.Continue Reading
ICC Welcomes OECD Draft on Transfer Pricing Aspects of Financial Transactions
The International Chamber of Commerce (ICC) has largely welcomed the OECD’s public discussion draft on the transfer pricing aspects of financial transactions.
The discussion draft deals with follow-up work in relation to base erosion and profit shifting (BEPS) Actions 8-10, on assuring that transfer pricing outcomes are in line with value creation.Continue Reading
Liechtenstein, Bermuda to Exchange CbC Reports
The OECD has published a set of newly established bilateral for the exchange of country-by-country (CbC) reports with respect to Bermuda, Curaçao, Hong Kong (China), and Liechtenstein.Continue Reading
Former OECD Transfer Pricing Head Joins Squire Patton Boggs
Former OECD Head of Transfer Pricing, Jefferson P. VanderWolk, has joined international law firm Squire Patton Boggs as a partner in the Tax Strategy & Benefits Practice. VanderWolk will work from the firm’s Washington DC office.Continue Reading
Further Country by Country Reporting Guidance Issued
The OECD has issued further interpretative guidance on the implementation of country-by-country (CbC) reporting to provide certainty to tax administrations and multinational enterprises (MNEs).Continue Reading
BEPS Instrument to Enter into Force in January 2019 for Israel, Lithuania
Israel and Lithuania have newly deposited with the OECD their instrument of ratification for the Multilateral Instrument to implement tax treaty-related base erosion and profit shifting (BEPS) measures.Continue Reading
OECD Transfer Pricing Profiles for 7 More Countries Published
The OECD has published new transfer pricing country profiles for Costa Rica, Greece, Republic of Korea, Panama, Seychelles, South Africa, and Turkey. The OECD has also updated the information contained in Singapore’s profile.Continue Reading
Draft Tax Proposal Drastically Expands Scope of Finnish CFC Regime
By Mika Ohtonen (Head of Tax, Roschier, Finland) & Laura Puro (Senior Associate, Roschier, Finland)
Finland’s Ministry of Finance last month published a draft proposal on amending the Finnish controlled foreign corporation (CFC) statute. While the purpose of the draft is to implement the CFC provisions of the Anti-Tax Avoidance Directive (ATAD), the proposed changes are materially stricter than required by the ATAD.Continue Reading
Ireland to Expand Transfer Pricing Rules by 2020, Introduce CFC Law
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
Ireland’s Finance Minister Paschal Donohoe has published the country’s Corporation Tax Roadmap outlining the steps that the Government will take in the area of international tax law over the next few years.Continue Reading
Countries Lowering Corporate Income Tax Rates
A new OECD report reveals that countries have used recent tax reforms to lower corporate income tax.
Tax Policy Reforms 2018 highlights the continuation of a trend toward corporate income tax rate cuts, which has been largely driven by significant reforms in a number of large countries with traditionally high corporate tax rates.Continue Reading
MAP Peer Review Reports Out for Australia, Ireland, Japan, Five Others
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
The OECD on August 30 published stage 1 mutual agreement procedure (MAP) peer review reports of the following eight jurisdictions: Australia, Ireland, Israel, Japan, Malta, Mexico, New Zealand, and Portugal.Continue Reading
Quantera Global, Africa Transfer Pricing Now Allies
Transfer pricing advisory firm Quantera Global has announced its strategic partnership with Africa Transfer Pricing, a professional services firm specializing in transfer pricing in South Africa.Continue Reading
Macedonia Now Part of BEPS Inclusive Framework
The Former Yugoslav Republic of Macedonia has newly joined the OECD’s Inclusive Framework on base erosion and profit shifting (BEPS).Continue Reading
Swiss, UK Tax Treaty to Include BEPS Minimum Standards
The Swiss Federal Council on August 22 adopted the dispatch concerning a protocol of amendment to the Swiss-UK tax treaty for the attention of Parliament.Continue Reading
Switzerland Adopts Dispatch on BEPS Convention
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
The Swiss Federal Council on Wednesday adopted the dispatch on the OECD’s Multilateral Convention to implement tax treaty-related base erosion and profit shifting (BEPS) measures.Continue Reading
Finland Consulting on Draft Controlled Foreign Corporation Rules
By Sami Tuominen (Partner, Head of Tax, Bird & Bird, Finland) & Marianna Santamala (Associate, Bird & Bird, Finland)
The Finnish Ministry of Finance recently proposed amendments to the current Finnish legislation concerning controlled foreign corporations (CFC). On August 6, 2018, the Finance Ministry submitted a proposal for Government Bill on the amendments to the Act on taxation of members of controlled foreign companies (Act). The Act is currently going through a consultation round and the Ministry would accept input until the end of this month. The purpose of the Act is to prevent the avoidance of taxation in Finland by utilizing corporations established in states with low taxation.Continue Reading
Tax Treaty between Switzerland, Saudi Arabia to Enter Into Force
The Swiss Federal Council on August 15 adopted the dispatch on the tax treaty with Saudi Arabia.Continue Reading
Transfer Pricing Documentation: Belgium Gazettes Administrative Fines
By Stefaan De Ceulaer (Director, Tax and Legal Support, PKF International)
The Belgian Parliament on June 29 adopted the Programme Act, which introduces in Belgian tax law specific transfer pricing documentation requirements, that is, in article 321/1 to 321/7 of the Income Tax Code (Programme law of July 1, 2016 gazetted on July 4, 2016), in response to Action 13 of the OECD’s base erosion and profit shifting (BEPS project. Continue Reading
Grant Thornton Boosts Presence in Dutch Caribbean
In a significant expansion drive, Grant Thornton, leading audit, tax, and advisory firm, has added offices in Aruba, Bonaire, Curaçao, and St. Maarten, boosting its already wide presence in 13 locations across the Caribbean.Continue Reading
Transfer Pricing Documentation Regime Being Revised in Poland
By Marcin Jamroży (Associate Professor, Warsaw School of Economics, and Partner, Rödl & Partner, Poland)
Poland’s Finance Ministry recently published a draft tax Bill to implement key changes to the country’s transfer pricing documentation rules. The draft Bill is aimed at simplifying Poland’s transfer pricing regulations and lowering the bureaucratic and administrative burden for enterprises. The philosophy of a simple, transparent, and friendly tax system should be written into the law. At the same time, it is underlined that the draft Bill should be sealed against loopholes and incorporate the new OECD recommendations. The new regulation is proposed to be effective from January 1, 2019.Continue Reading
Spain’s Patent Box Regime Aligned with BEPS Action 5
By Mario Ortega Calle (Partner, Garrigues, Madrid) and Laura Jiménez (Associate, Garrigues, Madrid)
Spain’s General State Budget for 2018, published by Law 6/2018 of July 3, 2018, in the Official Gazette, has amended the country’s patent box regime to bring it in further alignment with the “nexus approach” developed by the OECD under Action 5 of the base erosion and profit shifting (BEPS) project.Continue Reading
Guernsey to Introduce Substance Requirements in Tax Law
Guernsey’s Government is consulting businesses on a law that would require companies tax-resident in Guernsey to demonstrate they have sufficient substance in the island.Continue Reading
UK Raises £388 million from Diverted Profits Tax Law in 2017-18
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
The UK tax authority, HM Revenue and Customs (HMRC), raised GBP388m from the diverted profits tax (DPT) legislation in 2017-18, according to the Transfer Pricing and Diverted Profits Tax Statistics published on July 31.Continue Reading
DLA Piper Appoints Vicki Bales as Transfer Pricing Director
Global law firm DLA Piper has announced the appointment of Vicki Bales as a Transfer Pricing director in the firm’s international tax practice. Bales will be based in London.Continue Reading
Franka Sturm Joins Houthoff’s Tax Practice as Counsel
Houthoff, one of the largest law firms in the Netherlands, has hired Franka Sturm as Counsel for the firm’s tax practice.
Sturm has over 13 years of experience as a tax specialist in international practice with a focus on M&A and oil and gas.
Before joining Houthoff, Sturm worked with the Dutch Tax and Customs Administration and with PwC as a Senior Tax Manager.
Taxpayer Input Sought on Fresh Round of MAP Peer Reviews
The OECD is seeking taxpayers’ input for the sixth round of base erosion and profit shifting (BEPS) Action 14 Stage 1 peer reviews of eight new jurisdictions.Continue Reading
MNE Tax Avoidance Thing of the Past, OECD Tells G-20
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
Multinational enterprises (MNEs) are “changing their behavior” as a direct result of recent tax measures taken to tackle base erosion and profit shifting (BEPS), the OECD has told the Group of Twenty (G-20) Finance Ministers.Continue Reading
Ukraine Signs OECD’s BEPS Convention
Ukraine has become the 83rd tax jurisdiction to sign the base erosion and profit shifting (BEPS) Multilateral Convention.Continue Reading
OECD Briefs G-20 on BEPS Implementation
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
The OECD has published a progress report setting out the major tax developments that took place in the last year concerning the OECD’s base erosion and profit shifting (BEPS) project.Continue Reading
Countries Discuss Ways to Implement BEPS Measures
Senior tax officials from 20 countries in Europe and Central Asia recently met in Georgia to discuss ways to tackle tax avoidance and to implement the base erosion and profit shifting (BEPS) proposals.Continue Reading
BusinessEurope Calls for Global Agreement on Digital Economy Taxation
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
The Confederation of European Business (BusinessEurope) has said that a global agreement is needed on changes to international tax rules concerning the digital economy to ensure a global level-playing field encompassing all major tax jurisdictions.Continue Reading
Baker McKenzie Elects New Tax Partners
Law firm Baker McKenzie has announced the election of 13 new tax partners.
The newly elected partners are: Michael Nixon (Singapore), Simone Bridges (Sydney), Kirill Vikulov (Moscow), David Jamieson (London), Jessica Eden (London), Rodrigo Castillo Cottin (Bogota), Paul F. DePasquale (New York), Tatyana Johnson (New York), Victor Alejandro Morales-Chavez (Mexico City), Jonathan Welbel (Chicago), Joshua Nixt (New York), Andrew C. O’Brien-Penney (Chicago), and Ivan Tsios (Chicago).Continue Reading
New Italian Transfer Pricing Guidelines Explained
By Diletta Fuxa (Senior Manager), Studio Associato Servizi Professionali Integrati, Member of Fieldfisher
On May 14, 2018, Italy’s Ministry of Economy and Finance issued a Decree, which lays down new transfer pricing guidelines in compliance with the provisions set forth in article 110 (7) of the Income Tax Code (Testo Unico delle Imposte sui Redditi).Continue Reading
Report on Taxation of Offshore Indirect Transfer of Assets Issued
The Platform for Collaboration on Tax – a joint initiative of the IMF, the OECD, the UN, and the World Bank Group – has published for public comments a revised version of its report on taxation of offshore indirect transfers of assets.Continue Reading
UK Finalizes BEPS Convention Reservations
The UK Government has published a final list of its reservations and notifications under the Multilateral Convention to implement tax treaty-related base erosion and profit shifting (BEPS) measures.Continue Reading
EU Committee Calls For Fair, Uniform Taxation of Digital Economy
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
The European Economic and Social Committee (EESC) has called for a fair, consensus-based international solution at the OECD-level to tackle tax challenges posed by the digital economy.
The EU advisory body said that contrary to common international corporate taxation practice, the European Commission’s proposals aims to tax businesses’ turnover instead of profits, and to levy taxes where sales take place instead of where value is created. This approach, it noted, could jeopardize the integrity of the EU single market and lead to double taxation.Continue Reading
UK to Amend Corporate Interest Restriction Rules
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
The UK Government has published draft legislation that would make technical amendments to the country’s corporate interest restriction rules to ensure the corporation tax regime works as intended.Continue Reading
Guernsey Signs New Tax Treaty With UK
Guernsey has signed a new tax treaty with the UK. The new tax treaty replaces the one that has been in force since 1951.
The new tax treaty is based, broadly, on the OECD Model Tax Convention, which Guernsey has generally followed in its negotiations with other jurisdictions in recent years. The text of the tax treaty incorporates some of the recent international standards designed to prevent base erosion and profit shifting (BEPS). Continue Reading
UK, Isle of Man Sign New Tax Treaty
The governments of UK and Isle of Man signed a new tax treaty on July 2.
The tax treaty is based on the latest OECD Model Tax Convention and includes provisions to reflect the OECD’s base erosion and profit shifting (BEPS) measures.Continue Reading
OECD Consulting on Transfer Pricing Aspects of Financial Transactions
The OECD today called for stakeholders’ input on a discussion draft on financial transactions, which deals with follow-up work in relation to base erosion and profit shifting (BEPS) Actions 8-10, on assuring that transfer pricing outcomes are in line with value creation.
Continue Reading
Selective Tax Advantage to Starbucks: EU Court Hears the Netherlands
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
At a hearing of the General Court of the European Union on July 2, the Dutch Government put forward three points to demonstrate that it did not provide selective tax advantages to Starbucks in violation of the EU state aid rules.Continue Reading
Further Three Tax Jurisdictions Sign BEPS Convention
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
Kazakhstan, Peru, and the UAE have signed the base erosion and profit shifting (BEPS) Multilateral Convention, the OECD has announced, adding that Estonia intends to sign the Convention on June 29.Continue Reading
Duff & Phelps Adds Ted Keen to Transfer Pricing Practice
Global advisory firm Duff & Phelps has hired Ted Keen, who will serve as the European leader for the firm’s transfer pricing practice from London.Continue Reading
Switzerland to Exchange 109 CbC Reports With 35 nations
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
The Swiss Federal Tax Administration (FTA) will exchange this month 109 country-by-country (CbC) reports of multinational enterprises’ (MNEs) with 35 foreign tax jurisdictions.Continue Reading
Transfer Pricing: The Intangible Assets Case
Introduction
The transfer pricing of intangible properties has always been a significant issue for multinational enterprises (MNEs). The excellent idea devoted to this matter with the current drive of the OECD to counter tax base erosion is dim long over-due. Indeed, the case with transfer pricing is technically considered a neutral concept but erroneously taken as an offensive action of MNEs that permits them to transfer profits generated by intangibles to so-called tax havens. Although, the arm’s length principle enshrine in the OECD Model has been misidentified as the primary instrument to tackle such abusive behavior of MNEs.Continue Reading
CCCTB: The concept and the effects in Cyprus and Malta
Introduction
When states attain membership of the European Union (EU), the governments are in charge of enacting and implementing their local direct taxation policy. The tax framework of the member-states shall not contravene or interfere the laid down policies and directives of the EU institutions; therefore, the sovereignty of member states is extremely safeguarded. Although the EU faces difficulties to come up with results that would be generally accepted by all member states, it has taken every step to integrate all Member States’ corporate direct taxation systems since the 1950s.Continue Reading
OECD Issues Further Guidance on PE Profit Attribution
The OECD has released additional guidance on the attribution of profits to permanent establishment (PE), as part of its work on base erosion and profit shifting (BEPS) Action 7.Continue Reading
BEPS Convention to Enter Into Force in July
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
The OECD’s Multilateral Convention to implement tax treaty-related measures to prevent base erosion and profit shifting (BEPS) will enter into force on July 1, 2018.Continue Reading
Countries Agree to Reach Consensus on Digital Taxation by 2020
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
The OECD on March 16 released its Interim Report on the Tax Challenges Arising from Digitalisation, noting a lack of consensus among countries on either the merit or the need for interim measures to address the tax challenges posed by the digital economy.Continue Reading
OECD Publishes Third Round of MAP Peer Reviews
On March 12, 2018, the OECD published mutual agreement procedure (MAP) peer review reports of the following eight jurisdictions: Czech Republic, Denmark, Finland, Korea, Norway, Poland, Singapore, and Spain. Continue Reading
MNEs Using Irish, Dutch Tax Systems to Avoid Tax: Commission Report
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
In a first, the European Commission has stressed that tax rules in seven EU member states facilitate corporate tax avoidance by multinational enterprises (MNEs).Continue Reading
Tax Expert Franz Althuber Leaves Behind DLA Piper, Starts Own Firm
Austria’s leading tax lawyer, Franz Althuber, has left DLA Piper to start his own firm, Althuber Spornberger & Partners.Continue Reading
Ireland’s FM Discusses Corporate Tax Rate, US Tax Reform
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
In his recent address to the Irish Tax Institute, Ireland’s Finance Minister, Paschal Donohoe, outlined views on critical tax issues such as the country’s low corporate tax rate, the impact of US tax reforms, and digital taxation.Continue Reading
Applying the Transfer Pricing CUP Method
The arm’s length principle treats the members of a multinational enterprise (MNE) as operating in separate entities, rather than as inseparable parts of a single, unified business. Therefore, it is required that MNEs follow the same pricing policy for intra-group and uncontrolled transactions, under comparable circumstances. Otherwise, the controlled companies shall take the necessary measures and adjust their profits by reference to the conditions, which would have obtained between independent enterprises.Continue Reading
UK Updates Definition of ‘Transfer Pricing Guidelines’
The UK Government has published an Order, which would update the definition of “transfer pricing guidelines” in the UK legislation.Continue Reading
Netherlands Underlines Plan to Tackle Tax Avoidance
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
In a 24-page long letter to the country’s Parliament, Dutch State Secretary for Finance, Menno Snel, has set out a detailed tax plan to tackle multinational tax avoidance, including measures to prevent the internationally-oriented Dutch tax system from being used as a conduit to tax havens.Continue Reading
Protocol to UK-Mauritius Tax Treaty Signed
An amending Protocol to the UK-Mauritius tax treaty was signed on February 28, 2018.Continue Reading
Italy’s Transfer Pricing Overhaul Will Boost Taxpayer Confidence
By Marco Greggi (Professor, International Tax Law, University of Ferrara)
The Italian Finance Ministry, on February 21, 2018, published for stakeholders’ comments two draft transfer pricing regulations. The first Regulation is a proposed decree that deals with substantive aspects of transfer pricing regulations (analyzed in this article), while the second Regulation concerns corresponding adjustments (procedural aspects). The second Regulation on corresponding adjustments will be analyzed in a forthcoming article.Continue Reading
Brazil to Revisit Transfer Pricing Regime
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
The OECD is working with Brazil to examine the similarities and gaps between the Brazilian and OECD approaches to valuing related-party, cross-border transactions for tax purposes.Continue Reading
EC Publishes Non-confidential Version of Luxembourg-Amazon State Aid Decision
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
On February 26, 2018, the European Commission published the non-confidential version of its decision concluding that Luxembourg granted undue tax benefits worth around EUR250m to Amazon.Continue Reading
Sarah Churton Joins KPMG UK’s International Tax Team
KPMG UK has announced the appointment of Sarah Churton to its international tax practice.Continue Reading
The Future of the Dutch Tax Ruling Practice
By Jian-Cheng Ku (Legal Director, DLA Piper Nederland N.V.) and Jeroen Swart, (Tax Adviser, DLA Piper Nederland N.V.)
On February 18, 2018, the Dutch State Secretary of Finance announced that it will revise the Dutch tax ruling practice in light of results from a review conducted to examine if Dutch tax rulings met Dutch procedural requirements. Over 4,000 Dutch tax rulings were reviewed.
Current practice and review
A tax ruling provides Dutch taxpayers with the opportunity to obtain advance certainty on the tax consequences of proposed legal transactions. Taxpayers and the tax authorities are able to avoid potential disputes through tax rulings, which provide upfront assurance. The Dutch tax ruling practice is considered an important pillar of the Dutch business climate.Continue Reading
EU Digital Tax ‘Ship’ Has Sailed: Commissioner Moscovici
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
Europe is determined to introduce key changes to the EU corporate tax framework to address the tax challenges posed by the digital economy, EU Tax Commissioner Pierre Moscovici has said.Continue Reading
UK Publishes Tax Guidance on MAP Framework
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
On February 20, 2018, the UK Government published “Statement of Practice 1 (2018)” on the country’s mutual agreement procedure (MAP) framework. The Statement supersedes “Statement of Practice 1 (2011).”Continue Reading
Japan, Spain Agree to Sign New Tax Treaty
Japan and Spain have agreed in principle to the text of a new tax treaty.
The new tax treaty will replace the existing treaty between both countries, which entered into force in 1974.Continue Reading
Serbia Joins BEPS Inclusive Framework
Serbia has newly joined the OECD’s Inclusive Framework on base erosion and profit shifting (BEPS).Continue Reading
Belgium Initiating New Wave of Transfer Pricing Audits
By Bram Markey (Director, Transfer Pricing, PwC Belgium)
The Belgian tax authorities are increasing their manpower, shifting focus areas, and stepping up national and international cooperation with other tax authorities, with a clear view to audit transfer pricing and other international tax matters in a more targeted and efficient way, writes Bram Markey, Director, Transfer Pricing at PwC Belgium. Continue Reading
Ireland, Ghana Sign New Tax Treaty
Ireland and Ghana signed a new tax treaty on February 7, 2018. The procedures to ratify the treaty are underway.
Ireland is also negotiating and renegotiating existing treaties with foreign jurisdictions.
According to the tax authority, Ireland’s existing treaty base will also be updated to incorporate provisions set out in the Multilateral Convention to implement tax treaty-related measures to prevent base erosion and profit shifting.
Italy Enacts New Web Tax, Redefines PE
By Aurelio Massimiano (Partner, Maisto e Associati) and Matteo Cataldi (Associate, Maisto e Associati)
On December 29, 2017, the Italian Government published Law No. 205 of December 27, 2017 (Budget Law) in the Italian Official Journal, which contains key tax measures including a new tax on digital transactions (Web Tax) and revisions to the definition of permanent establishment (PE) in the domestic law.Continue Reading
France Gazettes Revised Transfer Pricing Documentation Requirements
By Terence WILHELM (Attorney at Law, Managing Partner, CARA Avocats, France)
On December 31, 2017, the French Government gazetted Finance Act, 2018, which revises the current transfer pricing documentation requirements in France. Accordingly, companies falling within the ambit of the new requirements will need to newly submit to the tax authority a two-fold documentation comprising “master” and “local” files, developed under Action 13 of the OECD’s base erosion and profit shifting (BEPS) project. The revised transfer pricing documentation requirement is inserted in Article L13AA of the French Procedural Tax Book (Livre des procedures fiscales) and is applicable to fiscal years beginning January 1, 2018.
Continue Reading
Cayman Islands Issues Advisory on CbC Reporting Requirement
By Alex Cooper
On February 2, 2018, the Cayman Islands’ Ministry of Financial Services issued an Industry Advisory on the Islands’ country-by-country (CbC) reporting notification requirements.Continue Reading
Norway Publishes Taxpayer Guidance on MAP Framework
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
On February 7, 2018, the Norwegian Government published detailed taxpayer guidance on the mutual agreement procedure (MAP) framework set out in Norway’s tax treaties.Continue Reading
OECD Issues Further CbC Guidance, Updates Preferential Regime Reviews
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
The OECD today released additional guidance for tax administrations and multinational corporations on the implementation of country-by-country (CbC) reporting requirement.Continue Reading
Australia Consulting on Draft Legislation to Implement BEPS Convention
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
The Australian Government today published for stakeholders’ comments a draft legislation to implement the OECD’s Multilateral Convention to implement tax treaty-related base erosion and profit shifting (BEPS) measures in Australia.Continue Reading
Legislative Proposal on EU Rules on Digital Economy Taxation Likely in March 2018
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
The European Commission is likely to table a legislative proposal on EU rules on taxation of profits of multinational corporations in the digital economy by March 2018.Continue Reading
Italy, Colombia Sign Tax Treaty
Italy and Colombia have signed a new tax treaty in line with the base erosion and profit shifting (BEPS) project.Continue Reading
Greece, Bulgaria Discuss Ways to Address BEPS Concerns
Senior officials from Greece and Bulgaria met on January 18, 2018, to discuss ways to tackle base erosion and profit shifting by certain Greek businesses, who transfer their headquarters to Bulgaria to benefit from a low corporate tax rate in Bulgaria.Continue Reading
TZA Romania Bulks up Transfer Pricing Strength
Țuca Zbârcea & Asociații Tax SRL, an affiliate of Romanian law firm Țuca Zbârcea & Asociații, has hired transfer pricing specialist Andreea Florian to strengthen its tax advisory practice.Continue Reading
UK, US, Six Others Launch Multilateral Tax Risk Assurance Program For MNEs
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
Eight tax administrations, including the UK and the US, have launched a pilot program for the multilateral risk assessment of multinational corporations.Continue Reading
Panama, Malaysia, Four Others Sign OECD’s BEPS Convention
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
Barbados, Côte d’Ivoire, Jamaica, Malaysia, Panama, and Tunisia have newly signed the base erosion and profit shifting (BEPS) Multilateral Convention, the OECD announced on January 24, 2018.Continue Reading
Hong Kong, French Tax Administrations to Exchange CbC Reports
On January 15, 2018, the Government of Hong Kong announced that it has entered into a bilateral arrangement with France to automatically exchange country-by-country (CbC) reports filed by multinational corporations.Continue Reading
Panama, Others Removed from EU’s List of Non-cooperative Tax Jurisdictions
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
Following commitments made at a high political level to remedy EU concerns, the Council of the European Union, on January 23, 2018, removed eight tax jurisdictions, including Panama, from the EU list of non-cooperative jurisdictions for tax purposes.
New Hire for DLA Piper’s Italian Transfer Pricing Team
On January 17, 2018, multinational law firm DLA Piper announced the appointment of Federico Pacelli as a partner in its international tax practice based in Italy. Federico will be leading the firm’s Italian transfer pricing team.
Ireland, Kazakhstan Tax Treaty Effective
The new tax treaty between Ireland and Kazakhstan became effective on January 1, 2018.
The tax treaty, which was signed by both countries in April 2017, entered into force on December 29, 2017.
Malta’s Tax Regime BEPS Compliant: Finance Minister
Maltese Finance Minister, Edward Scicluna, has stressed that the country’s international tax regime is in line with the OECD’s BEPS proposals.Continue Reading