A critical appraisal of the EU Switch Over Rule and the Indian Equalization Levy At present, it is unavoidable to recognize that the international tax scenario is in transition to a much more inter-nation equitable system, where the national tax base will be better protected against erosion and profit-shifting corporate manipulations than it was in…

The OECD BEPS project was kicked off by the observation that the interaction of domestic tax systems sometimes leads to an overlap, resulting in double taxation as well as gaps, which result in an item of income not being taxed anywhere, thus resulting in so called “double non-taxation”. Co-operation among countries historically addressed double taxation…

What do these two things have in common?  Dr. Andrew P. Morriss, Dean & Anthony G. Buzbee Dean’s Endowed Chair, Texas A&M School of Law explains In 1998, seven US heavy-duty diesel engine (HDDE) manufacturers agreed to pay USD83m to settle a suit by the US Environmental Protection Agency (EPA) contending that the HDDE manufacturers had used clever…

Introduction On 28 January 2016, the proposal for a council directive laying down rules against tax avoidance practices that directly affect the functioning of the internal market (the so-called ATA-directive) has been published. Article 4 of the ATA directive contains an interest limitation rule that very closely resembles the German interest limitation rule which is…

Lessons to LatAm from recent developments of one of the oldest tax treaty networks in the region The final outcome of Action 6, BEPS, posses the query of adopting the principal purpose test (PPT) standard, and/or adopting LoB clauses. By reviewing recent changes to the Argentine tax treaty network, this contribution is a call for…

When the EU Anti Tax Avoidance Package was launched by the European Commission, a Study on Structures of Aggressive Tax Planning and Indicators was released simultaneously as Taxation papers – Working paper N. 61- 2015, which is available: here. Reading the Study provides a good basis for understanding the reasoning behind the Anti Tax Avoidance…

MNC profit shifting has received major attention over the past few years. Total earnings stockpiled overseas are now reported to be in excess of $2 trillion. One of the authors published a technical tax article in Tax Notes on July 13, 2015, demonstrating that foreign subsidiaries of many MNCs are highly vulnerable to IRS attack using an…

I. Introduction Shall international tax planning decrease after the implementation of BEPS? The reply is “depends” by virtue of the subject’s exposure to several variables. Obviously, one should consider the question in the light of the legislative framework and tax environment of the relevant country which is in principle the country for which tax planning…

The IRS issued Notice 16-08 announcing that it will extend timelines or modify four elements of FATCA –  (1) modify the date for submitting to the IRS the preexisting account certifications required of certain foreign financial institutions (FFIs); (2) specify the period and date for submitting to the IRS the periodic certification of compliance for a registered deemed…

The Indian Ministry of Finance released last month draft guidance on applying the “place of effective management” (POEM) test to determine tax residence of companies. The guidance came almost eight months after the Government substituted, through the 2015 Finance Act, the existing “control and management” test with the universal concept of POEM in Section 6(3)…

On January 15, 2016, in a joint (bi-partisan) letter of Senate Finance Committee Republicans and Democrats to US Treasury, one that will certainly be of interest to our friends at Wolters Kluwer (a Netherlands parent multinational enterprise), the Senate Finance Committee members encouraged Treasury to use a tit-for-tat strategy against the EU Commission.  The letter stated that…

In his last State of the Union speech on January 13, 2016 Obama put it quite clear: “The United States of America is the most powerful nation on Earth. Period. It’s not even close.” With this statement Obama obviously addressed the position of the United States in terms of military capacity and its position in…

“Your net worth to the world is usually determined by what remains after your bad habits are subtracted from your good ones.” Benjamin Franklin Organisations generally, when starting a business in any country, concentrate on getting a licence to operate, in setting up an office, employing the correct staff and doing business. Otherwise, why else would an organisation…