Two cases, currently before different courts highlight long-standing questions around the attribution of profits to permanent establishments. Irish and United Kingdom law on the attribution of profits to branches of non-resident companies remined identical for decades until 2003. In each country, a non-resident company trading through a branch in that country was chargeable to corporation…

May linking rules related to hybrid financial instruments be incompatible with the EU Fundamental freedoms? And with Article 24 (4) OECD MC? What about treaty override? It is no secret that hybrid financial instruments (HFIs) serve actual business and legal purposes by allowing investors and issuers to better meet their economic and legal needs from…

On 14 November 2019, AG Kokott released her opinion in Dong Yang Electronics (Case C-547/18), referred to the Court of Justice of European Union (CJEU) by the Regional Administrative Court of Wroclaw (Poland) and concerning the existence of a VAT fixed establishment (FE) of a third-country (Korea) company in an EU Member State (Poland). As AG…

In June 2017, the European Commission published its proposal on transparency rules for tax planning by intermediaries and certain taxpayers (the Commission proposal). The Commission proposal was amended multiple times, before it was formally adopted as Directive 2018/822 (DAC6) on 25 May 2018. DAC6 requires Member States to put in place, by 31 December 2019,…

The past few years have seen the sensational rise of new models of production, distribution, and consumption of goods and services, which have been synthetically captured under the umbrella definition of “sharing economy”. The ascent of digital platforms – including renowned companies headquartered in the Silicon Valley like Airbnb and Uber, or the French unicorns…

Not the Hungarian Constitutional Court but maybe AG Kokott in her forthcoming opinion in the Google Ireland case… Optimistically speaking, the Hungarian Advertisement Tax contributes to a large extent to the enrichment of jurisprudence both in the field of EU law and the law of double tax treaties, as it features a host of discriminatory,…

Introduction The new European Commission that is taking shape shall inherit quite a heavy file of initiatives to pursue in the next five years. Certainly, this is the case in the area of taxation. Some of these proposals are on the waiting list for years. For example, the Common Consolidated Corporate Tax Base (CCCTB) was…

The judgments of the European Court of Justice (ECJ) on the withholding tax exemption provided by the Interest and Royalties Directive (available here – the ‘IRD judgment’) and the Parent-Subsidiary Directive (available here – ‘the PSD judgment’) on February 26, 2019 (‘the Danish cases’) have raised many issues to discuss. As some authors have pointed…

On 16 April 2019, the European Parliament (EP) voted in favour of the proposed Directive on the protection of persons reporting on breaches of Union law (hereinafter “the Directive”). While the Directive remains to be adopted by the Council, it seems very likely that after the overwhelming majority it enjoyed at the EP, it will…

Taxation of the digital economy is one of the more difficult and contentious issues in international taxation. There are several strands to this complexity. One strand is profit attribution for enterprises trading across different tax jurisdictions. Yet, several countries have introduced or propose to introduce a tax on MNEs in the digital sector known as…

We are glad to announce that the editorial team of the Kluwer Tax Law Blog has been strengthened with the appointment of Dr. Vikram Chand (Tax Policy Center, University of Lausanne, Switzerland) as the Managing Editor of the Blog. Dr. Chand currently has a strong interest in International Tax Policy, Transfer Pricing, Tax Treaty and…

Groundbreaking decision, landmark case, a milestone in EU case law, disappointing surprise: there are different ways to refer to the European Court of Justice (ECJ) judgments issued on February 26, 2019, on the withholding tax exemption provided by the Interest and Royalties Directive (joined cases C-115/16, C-118/16, C-119/16 and C-299/16, available here – the ‘IRD…

The text represents the personal views of the author, which do not purport to represent the view of Poland’s Ministry of Finance. In the judgement in X GmbH (Case C-135/17), on 26 February 2019, the CJEU for the first time examined a compatibility of CFC rules with the EU primary law to the extent of…

In a little more than one week we saw a series of judgments and a European Commission decision that may again test the limits of the European Union’s state aid system in its application to matters of direct taxation. On March 7, 2019 the Commission started a formal state aid investigation into the tax deduction…