In part 1 of this blog, we focused on the increased involvement of platforms in the levy of direct and indirect taxes. In this blog, we will highlight other digital economy tax trends, such as the shift of taxation rights on digital activities and fixed establishments. Shift of taxation rights between jurisdictions More user-and-consumer based…
The digitization and globalization of the economy have created a challenging environment to enforce tax rules and ensure tax compliance. Ever since the OECD’s release of the Action Plan on Base Erosion and Profit Shifting (BEPS)[1], the taxation of the digital economy has been under scrutiny from both a direct and indirect tax perspective. The…
Open to public On 27 and 28 January 2021, the 11th meeting of the OECD/G20 Inclusive Framework on BEPS was held. For the first time, a meeting of the Inclusive Framework was open to the public. Even though no negotiations took place during the public part of the meeting, access to this provided insight into…
Introduction Let’s assume the following situation: ParCo is the parent company of a multinational group with its residence in Switzerland and engaged in the automotive business. It developed an innovative battery technology. Due to the high density of competition and rivalry, ParCo is interested in having its innovative technology protected through a patent. For this…
After the initial relief that followed upon reaching a Trade and Cooperation Agreement between the European Union and the United Kingdom on Christmas Eve, we slowly see how this treaty is going to affect the tax domain. In this blog I will briefly focus on the area of fiscal state aid, i.e. the regulation of…
Introduction One of the key reasons highlighted by OECD imploring the urgent need for consensus on digital tax under its Inclusive Framework were the repercussions arising on account of unilateral digital taxes. Recent reports released by the United States Trade Representative (‘USTR’) reveal that such concerns are real and carry ominous ramifications. A case in…
In a prior blog, the author highlighted some of the most frequent debates arising from VAT and the public bodies’ activities or, more generally, the activities subsidised by public bodies. One key point for establishing whether public bodies’ activities must be subject to VAT or not relates to the aim of preventing distortions of competition…
The legal framework of the activities carried out by public bodies The Value Added Tax (VAT) is a consumption tax paid by entities or individuals who, independently, carry out an economic activity, whatever the purpose or results of that activity. Although Council Directive 2006/112/EC (the VAT Directive) does not establish a definition of economic activity…
With a judgment rendered on 27 November 2020 (case no. 2C_835/2017), the Swiss Federal Supreme Court (“FSC”) confirmed a decision by the Federal Administrative Court (“FAC”) of 24 August 2017 (decision no. A-1462/2016) concerning an individual tax residence matter that arose in the context of certain dividend withholding tax (WHT) refund requests, which had been…
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…
As this year 2020 is withering and will soon be gone, it is an understatement that we all will find it hard to not look at the past year with regret. Almost since its first inception days, this year 2020 has trapped all of us in a spiral of pain and dispensed a great dose…
The U.S. has a highly successful international financial service industry that is important to the U.S. economy, exemplified by, firstly, the international financial centers such as Miami and New York of over a half-trillion dollars of foreign deposits of high net wealth individuals whom many experts allege are not tax and exchange control compliant in…
On 15 July 2020, the European Commission (EU Commission) unveiled a Proposal for a Council Directive amending Directive 2011/16/EU on administrative cooperation in the field of taxation (the so-called ‘DAC 7’), which seeks to improve the existing framework for exchange of information in the field of direct taxation within the EU, by introducing, inter alia…
Purpose of the blog: To analyze the recent ruling of the US tax court (‘the Court’) in the case of The Coca-Cola Company (TCCC). Ruling: The US Tax Court, for the years 2007-09, ruled TCCC was under-compensated by its associated enterprises (AEs) for the use of intellectual property, and confirmed an addition of approximately USD…
