The transition from bilateralism to multilateralism in regard of international law-making seems to be a relentless work in progress. Nobody contests that multilateralism would be – legally speaking – preferable. On the other hand, the governments of the G20 have been constantly hesitant regarding a multilateral surveillance of their macroeconomic policies. Formally, the treaties are…

The OECD has today published details of the peer review and monitoring process of the Mutual Agreement Procedure (MAP) under Action 14 of the BEPS Action Plan. The framework includes the terms of reference for peer review based on the Action 14 final report minimum standards, an assessment methodology for the process and a reporting…

As previously reported on this Blog the EU Anti-Tax Avoidance Package was presented on 28th January 2016. The package included: –          Recommendation on Tax Treaties –          Amended Directive on Mandatory Exchange of Information (CbC) –          External Strategy for Effective Taxation –          Anti-Tax-Avoidance Directive (ATAD) The overall policy objective of the package is: –          Effective taxation:…

Volume 44 (2016), Issue 8/9 contains: EDITORIAL: Andreas OESTREICHER, ‘To See or Not to See: That Is Not the Question’ ARTICLES: Georg KOFLER, ‘Some Reflections on the ‘Saving Clause’’ Abstract: Action 6 of the Organization for Economic Co-operation and Development (OECD) Base Erosion and Profit Shifting project deals with tax treaty abuse and proposes inter…

On September 14th, 2016, the Brazilian Federal Revenue Service (“RFB”) published the Normative Instruction RFB No. 1,658/2016, which included legal entities incorporated as holding companies in Austria in the list of privileged fiscal regimes. Although the list mentions “legal entities incorporated in the form of holding company“, the wording is imprecise, because the administration of…

Tax practitioner’s in the northern hemisphere taking their summer holidays may well have included the OECD discussion draft of 5 July 2016 on the attribution of profits to permanent establishments as part of their holiday reading (a mere 40 pages). See post on July 21, 2016. Over 50 organisations and individuals submitted comments(published by the…

If the UK leaves the EU, this would have immediate consequences for direct taxation.[1] We saw in the first post that the EU fundamental freedoms, EU provisions on State aid and EU directives and regulations (also those on direct taxation) would automatically cease to apply to the UK. Referring back to the second post on…

The post-BEPS international tax scenario is in transition to a much more inter-nation equitable system, where the national tax base will be much better protected against erosion and profit-shifting corporate manipulations than it was in pre-BEPS times. The international tax system, however, is not yet stable,[1] and despite OECD’s efforts to uniform national responses within…

A thought-provoking and insightful series of papers on taxpayer rights have just been published in the latest edition of The Tax Lawyer,[1] published by the American Bar Association Section of Taxation. These papers were presented at the inaugural International Conference on Taxpayer rights held in Washington, DC in November 2015, initiated by Nina Olson, National…

On May 10, 2016, the Indian Finance Ministry announced that a new protocol has been finalized to amend certain provisions of the Indo-Mauritius double taxation avoidance agreement. According to a press release issued by the Finance Ministry, the protocol is aimed at tackling the dual problem of treaty shopping and round tripping of funds, besides…

The attribution of profits to a permanent establishment is already a complex issue with at least three separate regimes in the tax treaty context- the OECD Authorised Approach under the 2010 OECD version of Article 7 of the OECD Model, the AOA subject to limitations required by the pre-2010 version and that permitted by Article…

Corporate Social Responsibility (“CSR”) has become one of the top priorities on the Agenda of almost all supranational bodies (OECD, EU, UN) and many jurisdictions. Due to the overall lack of revenues by Countries and the innumerable tax-related leaks (Luxleaks, Panama papers, etc.) along with the recent and ongoing changes within the worldwide international tax…

On June 27, 2016 the EU Commission published the long awaited Starbucks State Aid decision (see here).  The EU Commission’s decision challenges the outcome of the Advanced Pricing Agreement (APA) between the Netherlands Tax Authority (Tax Authority) and Starbucks Manufacturing BV (SMBV), a wholly owned and controlled coffee roasting operation. Below is the Part I…

Is tax avoidance a bad thing? The international tax community seems recently to adopt an almost unanimous position: Yes, it is supposedly a very bad thing, as it not only reduces public revenue, but also makes taxation “less fair”, since tax-avoiding taxpayers do not pay their “fair share”. It is surprising how unanimous is this…