1. Purpose of the blog This contribution is a follow up to the previous contribution of the author. The objective is to address the tentative impact of the Pillar I debate on decentralized MNE business models in light of the “ongoing work” of the OECD with respect to the digitalization of the economy[1]. The reader…

The Canadian Federal Court of Appeal has upheld the Tax Court of Canada decision in Canada v. Alta Energy Luxembourg S.A.R.L., 2020 FCA 43 (CanLII).   The case is of some significance because the Canadian Revenue Agency (“CRA”) sought to apply the Canadian domestic general anti-avoidance rule (GAAR) in order to deny treaty relief. The…

1. Purpose of the contribution The purpose of this contribution is to address the impact of the Pillar I debate on principal structures or centralized business models. The tentative assessment will be made in light of the “ongoing work” of the OECD with respect to the digitalization of the economy[1]. 2. Illustration of a typical…

Online platforms are an important part of the digital economy and one of the key enablers of the tremendous growth of the e-commerce sector. According to data published by Ecommerce Europe, business-to-consumer (B2C) ecommerce turnover in Europe is worth over EUR 621 billion and continues to grow at around 13%.[1] This is quite fast considering…

The Spanish government approved, on 18 February 2020, a bill for a digital service tax (DST) for discussion by the parliament[1]. The current government has a majority consensus on the new tax with the rest of the political parties, and it is, therefore, very likely to pass the bill. Background: EU Proposal The Spanish Digital…

In my previous post, I had discussed the judgment delivered in the case of Elsevier Information Systems Gmbh v. Dy. Commissioner of Income Tax which discussed the liability of the taxpayer when it charges a subscription fee from the customers for rendering access to its database. It seems that the Income Tax Department has still…

This is not a technical commentary.  It does not react to a ‘new’ development or case.  But these comments do try to focus on understated rudiments of the present international tax debate which may not have received the focus and direct unvarnished attention they deserve.[1] We would do well to remember, as we seek solutions…

On February 1, 2020 India’s Finance Minister Nirmala Sitharaman presented the Government’s Union Budget for the year 2020-21. With its continuing promise of making India a $5 trillion economy by 2025, the budget announcements contained a host of reforms to obliterate the seeping fears regarding prospects of the Indian economy with focus on agricultural, rural…

The magnitude of the so-called Pillar 1 of the OECD Unified Approach to address the tax challenges of the digitalization of the economy should not be underestimated, especially after the endorsement by the Inclusive Framework that took place last week. Specifically, under the name of “Amount A”, the proposal entails the creation of a new…

It may well be said that George and Ira Gershwin’s simple and unforgettable line, “Let’s call the whole thing off!”, sums up the European Commission’s (“Commission”) view that the “wholly artificial arrangement” limitation in Cadbury Schweppes (C-196/04) does not apply to the CFC rule in Art 7(2)(b) of the Anti-Tax Avoidance Directive (“ATAD”). It is…

The benefit principle is widely known as a traditional justification for the imposition of taxes. Broadly speaking, it has customarily implied that taxpayers ought to contribute to government in proportion to the benefits obtained from government institutions and programs[1]. Today, the usefulness of the traditional version of the benefit principle appears to be confined to…

We are happy to inform you that the latest issue of the journal is now available and includes the following contributions: The editorial by Roland Ismer on A Union that Strives for More Also in the Area of Taxation: Tax Measures in the Incoming Commission’s Political Guidelines. Marco Greggi, Rise and Decline of the Westphalian…

We are happy to inform you that the issue 1, 2020, of the journal is now available and includes the following contributions: My editorial, on The OECD Unified Approach and the New International Tax System: A Half-Way Solution. A Guest Editorial by Maarten Floris de Wilde: On the OECD’s ‘Unified Approach’ as Frankenstein’s Monster and…

Revised transfer pricing legislation set out in the Finance Act 2019 (No 45 of 2019), sections 24 to 27, represents a radical shift in the Irish approach to this area of international tax law. Transfer pricing legislation came somewhat later to Ireland than other OECD countries, having been first introduced in Finance Act 2010. The…