International Tax Law

Corporate income tax, Dispute resolution, Double Taxation, India, International Tax Law, OECD, Permanent Establishments, Physical presence, Place of taxation, Tax Treaties, United Kingdom, United States

(Temple Tax Chambers; King’s College London)/ /3 Comments
Delaware law, habitual exercise

Last month my blog discussed the questions relating to corporate residence and article 4(1) of the UK-US Double Tax Treaty raised in G E Financial Investments v HMRC  [2021] UKFTT 210 (TC). This month the focus is on the permanent establishment issues. The case concerned a complex financing structure General Electric Company group. The taxpayer,…

Canada, Corporate income tax, Double Taxation, International Tax Law, MAPs and APAs, MNEs, OECD, Permanent Establishments, Residence, Tax Treaties, United Kingdom, United States

(Temple Tax Chambers; King’s College London)/ /2 Comments

When is a taxpayer a resident of a contracting state for purposes of a tax treaty? The decades old definition in article 4(1) of the OECD Model that ‘“resident of a Contracting State” means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place…

Double Taxation, Financial institutions, Hybrids, International Tax Law, Limitation on benefits, Principal purpose test, Tax Administration, Tax Credits, Tax Planning, Tax Policy, Tax Treaties, Treaty shopping, United Kingdom, United States, Withholding Taxes

(Temple Tax Chambers; King’s College London)/ /Leave a comment

The relationship between treaties and domestic tax law ought to be straightforward. The pacta servanda sunt principle expressed in articles 26 and 27 of the Vienna Convention on the Law of Treaties itself implies that treaty obligations must be upheld notwithstanding domestic law. A variety of constitutional arrangements around the world mean that there is…

Administrative cooperation, Administrative obligations, Common Reporting Standard, Exchange of Information, FATCA, Germany, India, International Tax Law, Law enforcement, Mandatory disclosure, Personal income tax, Residence, Tax Treaties, United Kingdom, United States

(Temple Tax Chambers; King’s College London)/ /Leave a comment

HMRC v Embiricos [2020] UKUT 370 (TC) reflects a common issue that arises in connection with tax investigations or audits of internationally mobile individuals. Mr Embiricos  filed his tax returns on the basis that he was resident, but not domiciled in the UK. On that basis, he was entitled to the remittance basis of taxation….

Abuse of rights, Administrative cooperation, Brexit, Double Taxation, EU law, EU/EEA, International Tax Law, Tax Treaties, United Kingdom

(Temple Tax Chambers; King’s College London)/ /Leave a comment

The newly concluded Trade and Cooperation Agreement between the EU and UK has limited provisions concerning taxation, but interesting provisions relevant to interpretation of treaties including good faith. The Agreement does not seek to replicate many of the rights which UK citizens and businesses had under EU law. There is no general non-discrimination provision. Double…

Abuse of law, Abuse of rights, Anti-tax avoidance, Corporate income tax, EU law, EU/EEA, Finance, GAAR, International Tax Law, M&A and Reorganizations, MLI, MNE Profits, Permanent Establishments, Principal purpose test, Principal/ancillary arrangements, Profit allocation methods, Tax Avoidance, Transfer Pricing, United Kingdom, United States

(Temple Tax Chambers; King’s College London)/ /Leave a comment

When the UK introduced its diverted profits tax, I was telephoned by a lawyer at the US Treasury. He wanted to know whether the “just and reasonable” apportionment of profits, in certain circumstances where DPT applied, was a new development? What did it mean? I was reminded of that discussion this week as a result…

Artificial Intelligence (AI), International Tax Law

( PwC Netherlands, Lazarski University and Singapore Management University)/ /Leave a comment

Błażej Kuźniacki (ACTL, University of Amsterdam; PwC Poland) Kamil Tyliński (Mishcon de Reya LLP; UCL School of Management) Every new method or procedure involves not only potential benefits but also risks of unwanted, and sometimes serious consequences. It is therefore crucial to be able to identify the risks prior to any implementation of the new…

Double Taxation, India, International Tax Law, OECD, Tax Treaties, Withholding Taxes

(Temple Tax Chambers; King’s College London)/ /Leave a comment

Those with a long memory for cricketing events may remember the 1996 World Cup hosted jointly by India, Pakistan and Sri Lanka. The winner, Sri Lanka, made 398 runs for 5 wickets, in a one-day international match, a record that stood until April 2006. South Africa’s Gary Kirsten scored 188 runs, not out, against the…

Carbon Tax, Environment, EU Green Deal, EU law, EU/EEA, International Tax Law, OECD, WTO

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Tatiana Falcão[1] On 22 July 2020 the European Commission opened a public consultation on the Carbon Border Adjustment proposal put forward as part of the EU Green Deal. This is not the first document issued under that initiative. In March 2020 the European Commission published an Inception Impact Assessment Report to discuss policy options for…

International Tax Law, OECD, Transfer Pricing, United Nations

(University of Lausanne)/ /Leave a comment

This article is the last of a series of three posts dealing with non-chargeable intra group services: Shareholder Activities, Duplicate Activities and Incidental Benefits. This post will specifically focus on the delineation of incidental benefits. To get the bigger picture, transfer pricing rules and the standard on which it relies, the arm’s length principle, considers…

Digitalization, International Tax Law, OECD

, (University of Leipzig)/ /Leave a comment

In Part 1, we discussed in a first step the ground barrier for taxing data in the context of international taxation: a proper definition of data. In a second step, we showed you which negative effects result from the trilemma of data-based taxation approaches. In part 2, we want to present possible solutions on how…

Digitalization, International Tax Law, OECD

, (University of Leipzig)/ /Leave a comment

For international tax law, it is of central importance how to locate, value & control the increasingly digital cross-border supply and service relationships within a multinational enterprise (MNE). This counts primarily from a tax authority perspective. Nevertheless, digitalization has not only significant effects for highly digitalized businesses but for the economy itself, as the overall…

BEPS, Digital platforms, Digitalization, Double Taxation, International Tax Law, Latin America, MNE Profits, OECD, Pillar I, Tax Policy, Tax Treaties, United Nations, Value Creation, Withholding Taxes

(Bomchil)/ /2 Comments

A couple of days ago, in the last weekly session of the Indiana-Leeds Summer Tax Workshop, I attended the presentation of a fascinating paper by Steven A. Dean (A Constitutional Moment in Cross-Border Taxation)(1) where the author analyzes the political and economic predominant influence of central economies in the design and shape of post-WWI in…

International Tax Law, Principal purpose test, Tax Avoidance

( PwC Netherlands, Lazarski University and Singapore Management University)/ /Leave a comment

Inspiration, purpose and the context of this contribution In the article “The PPT in Post-BEPS Tax Treaty Law: It Is a GAAR but Just a GAAR!”, Professor Robert Danon convincingly demonstrated that “while the PPT certainly permits a purposive interpretation, it may not be used to build into tax treaty law additional requirements that were…