Action 6 of the BEPS Action plan is aimed at (i) developing Model Treaty provisions and recommendations on the design of domestic tax rules to prevent the granting of treaty benefit in inappropriate circumstances, (ii) clarifying that tax treaties are not intended to be utilized to generate double non-taxation, and (iii) identifying tax policy considerations…

Along the last 15 years, the discussion of tax planning in Brazil evolved significantly, changing from a very formalist approach to an approach that scares taxpayers by its aggressiveness and lack of limits. Changes that have happened without significant change of law. Brazilian doctrine used to defend that transactions should have been analyzed from legal…

Whoever thinks that a resident company’s income is protected from taxation in countries where it has no PE, is in for a rude awakening; it is not. The allowance for CFC rules in the OECD Model Convention (hereafter “MC”) commentaries is so all encompassing that it covers far more than just the taxation of a…

There are a lot of opinions on multinationals and their tax practices. One conventional perception is that multinationals have a general tax advantage over their domestic competitors as their international operations allow for substantial tax management to minimize the corporate tax burden at group level. A number of tax policy projects are in process and…

Following my latest post on the Court of Justice’s decision in Commission v UK (C-172/13, ECLI:EU:C:2015:50), I want to turn in this comment on the related issue of currency losses, which was recently addressed by Advocate General Kokott in her Opinion in case X AB v Skatteverket (C-686/13, ECLI:EU:C:2015:31). The Advocate General concludes that Member…

This contribution is aimed at surveying the interaction and reciprocal influence between the OECD-G20 BEPS Action Plan (the BEPS Plan), on one hand, and contemporary tax developments occurred in the Latin American (LATAM) region, particularly those geared to counteract base eroding and profit shifting moves by multinational enterprises (MNEs), on the other. At first glance,…

The ministers signed a Supplementary Agreement (SA) amending the French-German Double Taxation Convention. The SA simplifies the taxation for pensioners by attributing the exclusive taxing right for pension payments from statutory social insurance to the resident state of the beneficiary of these payments. In return Germany and France agreed to mutually sustain the other side’s…

The claim for the so-called “single taxation principle”, in spite of its doubtful general acceptance, seems to have been acknowledged by the OECD, which has moved from a position whereby countries should explicitly state the limits of the application of tax treaties in case of abuse, to an opposite view ascertaining that tax treaty protection…

On April 8th, the Labour Party has pledged to abolish the British preferential tax rules for non-domiciled individuals (non-doms), should it win the general election on May 7th. This long overdue move would be a big step towards equitable tax treatment of individuals, notably in the Common Market in Europe. If individuals had been included…

The world is following with attention the developments of one of the major all-time corruption scandals, involving one of the symbols of the Brazilian economy, Petrobras. If it was not enough fuzz, now the Federal tax authorities are facing another problem, which is rumor of corruption within the Administrative Court of Federal Tax Appeals (“CARF”)….

It is well known that case law from the European Court of Justice (ECJ) imposes limitations on the application of anti-avoidance rules by Member States. Accordingly, it is of vital importance that recommendations made under the OECD project on base erosion on profit shifting (the BEPS project), are adaptable, where necessary, to enable Member States…

In July 2013, the OECD published its Action Plan on Base Erosion and Profit Shifting, aimed at ensuring the coherence of corporate income taxation at the international level. Action 3 of the Plan stressed the need to address base erosion and profit shifting through CFC rules, since then existing domestic CFC rules do not always…

The OECD-G20 BEPS Project’s goal is ciclopeous: Making the global tax environment fairer than ever by closing loopholes and adopting rules of international law which would be domesticated simultaneously and uniformly by all participating Nations; and all of that with the aim of making the global enterprise accountable for taxes at source (markets) and home,…

“When the map and the territory don’t agree, always believe the territory”  Gause and Weinberg – describing Swedish Army Training Easier said than done Tax risk management in Africa reminds me of how the first explorers having to navigate the new world  must have felt. Not having any decent maps and often creating their own…