European Taxation
| International – Status of Implementation of the Authorized OECD Approach into Domestic Tax Law and Tax Treaties – Part 1
Author:Huibregtse, S.B.; Verdoner, L.A.; Valutyte, I.; Offermanns, R.H.M.J. Published online:13 July 2015 2015 (Volume 55), No. 8 European Taxation This article examines profit/loss allocation in a headquarter/branch scenario. Part 1 discusses the actual split between a head office and branch from a theoretical perspective, discusses basic concepts derived from public international treaty law, the notion of Key Entrepreneurial Risk-Taking Functions versus Significant People Functions and the Authorized OECD Approach (AOA). Part 2, to be published in European Taxation 9 (2015), continues to analyse the AOA, looks at the question of whether adequate capital is allocated to the branch as a fictitious separate entity and outlines court cases, tax policy and advance pricing agreement/mutual agreement procedure implications. |
| European Union – Commission
Author:Ambagtsheer-Pakarinen, L. Published online:13 July 2015 2015 (Volume 55), No. 8 European Taxation |
| European Union – The End of Intra-Group Financing … or Not Just Yet? – Part 2
Author:Janssens, P.; Ledure, D.; Vandepitte, B.; Loos, J. Published online:9 July 2015 2015 (Volume 55), No. 8 European Taxation This article examines, first, how the outcome of the OECD BEPS Project will impact numerous aspects of intra-group financing as multinationals currently know it, serving as a roadmap for the reader to navigate through the jungle of rules considered and proposed by the OECD. At the same time, the authors are critical of the OECD’s proposals and analyse the extent to which they might result in collateral damage for the funding of group or business investment in general. Part 1, which was published in European Taxation 7 (2015), addressed the borrower’s perspective, while Part 2, published herein, analyses the lender’s perspective. |
| European Union – The End of Intra-Group Financing… or Not Just Yet? – Part 1
Author:Janssens, P.; Loos, J.; Vandepitte, B.; Ledure, D. Published online:9 June 2015 2015 (Volume 55), No. 7 European Taxation This article examines, first, how the outcome of the OECD BEPS Project will impact numerous aspects of intra-group financing as multinationals currently know it, serving as a roadmap for the reader to navigate through the jungle of rules considered and proposed by the OECD. At the same time, the authors are critical of the OECD’s proposals and analyse the extent to which they might result in collateral damage for the funding of group or business investment in general. Part 1 addresses the borrower’s perspective, while Part 2, to be published in European Taxation 8 (2015), analyses the lender’s perspective. |
| Poland – Income Tax Amendments in Poland: New Thin Cap Rules Effective 1 January 2015
Author:Kopec, A.; Jamroży, M. Published online:29 April 2015 2015 (Volume 55), No. 5 European Taxation This note discusses the new Polish thin capitalization rules. The authors critically analyse the tax changes and highlight the practical limitations and possible implications of the new legal regulations on the tax deductibility of interest. |
| Luxembourg – Luxembourg Reshapes Its Transfer Pricing Landscape
Author:Hoor, O.R. Published online:12 March 2015 2015 (Volume 55), No. 4 European Taxation On 19 December 2014, the Luxembourg legislator adopted new transfer pricing legislation that formalizes the application of the arm’s length principle and the requirement for specific transfer pricing documentation. While the arm’s length principle was already firmly ingrained in Luxembourg tax law, the new rules further elevate the importance of transfer pricing. This article provides an overview of Luxembourg’s new transfer pricing landscape. |
| France – Recent Transfer Pricing Developments
Author:Gouthière, B. Published online:22 January 2015 2015 (Volume 55), No. 2/3 European Taxation This article summarizes recent transfer pricing amendments, including new reporting obligations intended to provide the tax authorities with more information in carrying out transfer pricing audits. Further, the article highlights recent court cases that indicate that the French tax courts are still very careful in ensuring that the tax authorities back up their adjustments with sufficient evidence. |
| Latvia – Latvia as a Holding Company Jurisdiction
Author:Kronbergs, Z.G. Published online:21 January 2015 2015 (Volume 55), No. 2/3 European Taxation This article examines aspects of the corporate tax system of relevance to holding companies, including the treatment of inbound income streams, transfer pricing, withholding taxes on outbound payments, interest, losses, group taxation and a notional interest deduction, mergers and demergers, company migration, Latvia’s tax treaty network and the tax rate and general tax climate, followed by a brief survey of non-tax issues. |
| International – The OECD Intangibles Project and the Concept of “Intangible Related Return”
Author:Garbarino, C.; D’Avossa, M. Published online:8 December 2014 2015 (Volume 55), No. 1 European Taxation This article examines the OECD’s recent work regarding certain transfer pricing aspects of intangibles as reflected in BEPS Action Plan No. 8. In particular, the authors provide a description of the project, as well as the activities undertaken by Working Party No. 6 up to March 2014, describe the interim work performed by Working Party No. 6 in connection with the attribution of the “Intangible Related Return” to members of a multinational group and address comments on the “Intangible Related Return” concept received by Working Party No. 6 from business commentators. |
| Portugal – Arbitration as a Means of Resolving Tax Disputes
Author:Câmara, F. de Sousa da Published online:15 October 2014 2014 (Volume 54), No. 11 European Taxation Tax arbitration courts were introduced as a means of addressing the backlog of cases in the tax courts, as well as a lack of resources. This article analyses this innovative mechanism against the backdrop of the traditional court system. The article cites statistics regarding the workload of the tax courts and, moreover, on the initial three-year period of existence of the tax arbitration courts. |
| European Union – Commission
Author:Kulcsár, T. Published online:9 July 2014 2014 (Volume 54), No. 8 European Taxation |
| European Union – Commission
Author:Kulcsár, T. Published online:5 June 2014 2014 (Volume 54), No. 7 European Taxation |
| Luxembourg – The Tax Treatment of Permanent Establishments
Author:Hoor, O.R. Published online:4 June 2014 2014 (Volume 54), No. 7 European Taxation In an article published in European Taxation 4 (2014), the author outlined the differences between the permanent establishment concept under Luxembourg domestic law and that applicable for tax treaty purposes. This article builds on this discussion, focusing specifically on the tax treatment of permanent establishments under Luxembourg tax law and applicable tax treaties. |
| CFE – Countering BEPS through Transfer Pricing Documentation
Author:Valente, P. Published online:13 May 2014 2014 (Volume 54), No. 6 European Taxation In this note, the author provides introductory comments to the opinion statement of the CFE Fiscal Committee, which follows, on the OECD Discussion Draft on Transfer Pricing Documentation and Country-by Country Reporting issued on 30 January 2014. |
| CFE – Opinion Statement FC 2/2014 of the CFE: Comments on the OECD Discussion Draft on Transfer Pricing Documentation and Country-by-Country Reporting
Author:Confédération Fiscale Européenne Published online:13 May 2014 2014 (Volume 54), No. 6 European Taxation This is an Opinion Statement prepared by the CFE Fiscal Committee on the OECD Discussion Draft on Transfer Pricing Documentation and Country-by-Country Reporting and submitted to the OECD in March 2014. |
| European Union – CFE Forum 2014: Policies for a Sustainable Tax Future
Author:Cotrut, M.; Gerzova, L.; Popa, O. Published online:7 May 2014 2014 (Volume 54), No. 6 European Taxation In this note the authors provide a summary of the presentations made at the CFE Forum 2014 held in Brussels on 27 March 2014. |
| Netherlands – Corporate Income Tax: Marking the Passage of Time
Author:Bellingwout, J.W. Published online:10 April 2014 2014 (Volume 54), No. 5 European Taxation Triggered by the international debate on aggressive tax planning and base erosion and profit shifting, the author goes back to the basic principles of corporate income tax (CIT). In this article, the author explores whether CIT, as a tax on an entity’s profit in its current form, has reached its outermost limits both in the Netherlands and internationally, and whether the basic principles of CIT should be redesigned in order to reshape the future of CIT. |
| European Union – Commission
Author:Kulcsár, T. Published online:9 April 2014 2014 (Volume 54), No. 5 European Taxation |
| European Union – Court of Justice
Author:Kulcsár, T. Published online:9 April 2014 2014 (Volume 54), No. 5 European Taxation |
| Italy – New Provisions Regarding the Taxation of the Digital Economy
Author:Quaratino, L. Published online:9 April 2014 2014 (Volume 54), No. 5 European Taxation This note summarizes recently enacted provisions that attempt to address the problem of the taxation of the digital economy in Italy, including a VAT provision (web tax) (subsequently repealed) and a transfer pricing provision. |
| European Union – Commission
Author:Pakarinen, L.; Kulcsár, T. Published online:3 February 2014 2014 (Volume 54), No. 2/3 European Taxation |
| Germany – Article 9(1) of the OECD Model Restricts Income Adjustments Based on Formal Criteria
Author:Hagemann, T. Published online:24 January 2014 2014 (Volume 54), No. 2/3 European Taxation The German income adjustment provisions allow, in specific cases, for adjustments due to non-compliance with formal criteria. Tax audit adjustments are, therefore, regularly made regardless of whether or not they correspond to appropriate transfer prices. In a decision of 11 October 2012, the Federal Fiscal Court addressed the relationship of these provisions to article 9(1) of the OECD Model. This article provides an overview of this decision and its practical implications. |
| International – OECD Actions To Counter Tax Evasion and Tax Avoidance (2013): Base Erosion and Profit Shifting and the Proposed Action Plan, Aggressive Tax Planning Based on After-Tax Hedging and Automatic Exchange of Information as the New Standard
Author:Cracea, A. Published online:9 October 2013 2013 (Volume 53), No. 11 European Taxation In this article, the author provides an overview of the reports issued by the OECD in the first part of 2013 addressing tax avoidance and tax evasion. The OECD has joined forces with the G20 to combat base erosion and profit shifting and has made significant progress in setting automatic exchange of information as the new standard. |
| United Kingdom – The Technical Aspects of the UK Patent Box Rules
Author:Obuoforibo, B.R. Published online:4 September 2013 2013 (Volume 53), No. 10 European Taxation In this article, the author explains the technical aspects of the new UK Patent Box rules applicable to profits arising on or after 1 April 2013. |
| International – Earnings Stripping and Thin Cap Rules: Maintaining an Arm’s Length Distance
Author:Fross, A. Published online:4 September 2013 2013 (Volume 53), No. 10 European Taxation In this article the author analyses the compatibility of domestic thin capitalization/earnings stripping rules with the arm’s length principle and considers the potential impact of article 9 of the OECD Model. |
| Netherlands – The Netherlands as an Innovation Hub: An Appraisal of the Innovation Box Regime
Author:Schellekens, M. Published online:4 September 2013 2013 (Volume 53), No. 10 European Taxation This note describes the innovation box regime in the Netherlands, including its historical development, current requirements and international aspects. |
| Finland – Interest Deduction Limitation Rules Introduced
Author:Penttilä, S.; Nieminen, M. Published online:9 April 2013 2013 (Volume 53), No. 5 European Taxation The authors, in this note, outline the interest deduction limitation rules recently introduced in Finland that will become effective 1 January 2014. |
| Poland – Tax Rulings in Poland Following Recent Amendments
Author:Mroz, K.; Schade, F. Published online:12 July 2017 2017 (Volume 57), No. 8 European Taxation This article provides a general overview of the tax rulings regime in Poland, taking a critical stance on amendments that came into effect in 2016 and 2017. |
| Ireland – Finance Act 2016
Author:Maguire, T. Published online:15 May 2017 2017 (Volume 57), No. 6 European Taxation Ireland’s most recent Finance Act was signed into law on 25 December 2016. It is a concise act, but with significant changes, the most noteworthy of which are discussed in this note. |
| Luxembourg – New Transfer Pricing Guidelines on Intra-Group Financing Activities
Author:Schaffner, J.; Balliet, S. Published online:4 May 2017 2017 (Volume 57), No. 6 European Taxation The authors, in this note, describe the new circular on the tax treatment of companies carrying out intra-group financing activities, which was released by the Luxembourg tax authorities on 27 December 2016 and is effective 1 January 2017. |
| United Kingdom – Finance Act 2016
Author:Roxburgh, D.S. Published online:26 January 2017 2017 (Volume 57), No. 2/3 European Taxation Following the introduction of the Budget on 16 March 2016, Finance Bill 2015-16 was published on 24 March 2016. Royal Assent as Finance Act 2016 was, however, delayed, following the Brexit vote, until 15 September 2016. This note deals with the provisions in the Act covering tax rates and allowances and those of particular significance for companies and businesses. |
| Austria – Recent Tax Developments
Author:Fichtinger, C. Published online:11 November 2016 2016 (Volume 56), No. 12 European Taxation This article outlines a number of recent Austrian tax developments, including an amendment of the interim tax regime for private foundations, new rules concerning exit taxation and the new Transfer Pricing Documentation Law. |
| Poland – Introduction of the Standard Audit File for Tax (SAF-T)
Author:Bronżewska, K. Published online:9 November 2016 2016 (Volume 56), No. 12 European Taxation In this note, the author discusses Poland’s adoption of the OECD’s Standard Audit File for Tax, which is intended to provide tax authorities with access to relevant electronic data in an easily readable format to allow for tax inspections that are more efficient and effective. |
| European Union/International – In for a Penny, in for a Pound: Anti-Tax Avoidance Initiatives and Dispute Resolution
Author:Heer, L.J. de Published online:15 July 2016 2016 (Volume 56), No. 8 European Taxation In this article, the author examines the flaws in dispute resolution mechanisms in tax treaties, particularly in light of the recent surge in anti-avoidance measures. |
| European Union – CFE Forum 2016: Rebuilding International Taxation – How To Square the Circle?
Author:Gerzova, L.; Popa, O.; Kireta, I. Published online:29 June 2016 2016 (Volume 56), No. 8 European Taxation In this note, the authors provide a summary of the presentations made at the CFE Forum 2016 held in Brussels on 21 April 2016. |
| Germany – The Impact of Article 9 of the OECD Model on German Taxation
Author:Weiss, M. Published online:18 January 2016 2016 (Volume 56), No. 2/3 European Taxation This article describes recent case law of the German Federal Tax Court on the relationship between article 9(1) of the OECD Model and German domestic tax law that demonstrates a clear trend towards denying income adjustments under domestic law pursuant to article 9(1). Taxpayers need to be aware of the impact of this provision, in particular, on the application of the transfer pricing rule, section 1 of the Foreign Transactions Tax Act, and on hidden distributions. |
| Italy – The New Italian Cooperative Compliance Regime
Author:Manca, M. Published online:18 March 2016 2016 (Volume 56), No. 4 European Taxation The author, in this article, discusses Legislative Decree no. 128 of 5 August 2015, which introduces into the Italian domestic tax system the new cooperative compliance regime as of 1 January 2016. |
| European Union/International – Dispute Resolution in Cross-Border Tax Matters
Author:Oortwijn, H.J. Published online:15 March 2016 2016 (Volume 56), No. 4 European Taxation The author, in this note, looks at the history and present trends of cross-border tax dispute resolution as discussed at the 20 November 2015 ICT Leiden Conference. The author provides his personal insights and comments, exploring the current state and future initiatives aimed at making dispute resolution more effective. |
| European Union – Tax Rulings: In Line with OECD Transfer Pricing Guidelines, but Contrary to EU State Aid Rules?
Author:Taferner, A.; Wouda Kuipers, J. Published online:7 March 2016 2016 (Volume 56), No. 4 European Taxation This article examines the Commission’s State aid investigations into certain tax rulings that are alleged to provide selective advantages to particular MNCs. It analyses the Commission’s views on how transfer pricing should have been applied in the recent cases, comparing this approach with the OECD Transfer Pricing Guidelines and the transfer pricing aspects of the OECD’s Base Erosion and Profit Shifting (BEPS) project. |
| European Union/International – Cross-Border Rulings: Direct and Indirect Taxation
Author:Kokolia, E.; Lazaretou, T. Published online:27 January 2016 2016 (Volume 56), No. 2/3 European Taxation The authors analyse the different approaches to transparency of rulings regarding cross-border transactions in respect of both direct and indirect taxation. They consider that the enhanced transparency and model approach to VAT and cross-border rulings could also apply in respect of direct taxation and acknowledge that the political agreement reached on 6 October 2015 on the Directive for automatic exchange of information on cross-border rulings is a step in the right direction. |
| Romania – The 2016 Revised Tax Code: A Milestone in the History of Romania’s National Tax System
Author:Popa, O. Published online:27 January 2016 2016 (Volume 56), No. 2/3 European Taxation This note describes the most significant amendments introduced by the revised Tax Code, effective 1 January 2016. |