On 24 November 2016, the OECD released the Multilateral Convention designed for the implementation of tax treaty measures related to the Base Erosion and Profit Shifting (“BEPS”) Project. The Multilateral Convention is backed up by an Explanatory Statement, which clarifies the approach adopted to modify the provisions of existing bilateral tax treaties. The Multilateral Convention…
“A camel is an animal designed by a committee” – Anonymous In launching the BEPS programme in 2013, the OECD warned that replacement of the current consensus-based framework by unilateral measures, could lead to global tax chaos marked by the massive re-emergence of double taxation (OECD: Action Plan on Base Erosion and Profit Shifting (2013))….
The recent appearance of the Multilateral Convention to Implement Tax treaty Related measures to prevent BEPS (the Multilateral BEPS Convention or the Convention)[1] rounded up the implementation of the treaty-related final BEPS package (actions 2, 6, 7, and 14) in one single document which will be open for signature as from December 31, 2016. A…
A global silver alert for fair and efficient tax systems is active already for a couple of years. The heated debate sparked all over the world has engaged national governments, NGOs, international organizations as well as each and every taxpayer – or tax evader. The EU has been driving the discussions and – most importantly…
Publication of text of The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS Convention) by the OECD on 24 November 2016 is one of the key milestones in the OECD/G20 Project to tackle Base Erosion and Profit Shifting. The BEPS Convention will be open for signature from…
Volume 25 (2016) issue 4 contains: EDITORIAL: Han KOGELS, ‘Base Erosion and Profit Shifting and Value Added Tax in the Digital Economy’ ARTICLES: Pieter van OS, ‘Interest Limitation under the Adopted Anti-Tax Avoidance Directive and Proportionality’ Abstract: This article scrutinizes the compatibility of the interest limitation rule the European Union (EU) legislature included in its anti-tax…
There are many things in life that we take for certainties, which are not, e.g. that it was the Scots that invented whiskey, the French champagne, or the Italians pizza. All not necessarily true. Similar certainties exist in tax and in transfer pricing. I recently had the honour of giving a training in France to…
In a decision that offers the much-needed certainty in the tax treatment of income arising from the cross-border transfer of rights in intangibles used by Indian subsidiaries of multinational corporations, India’s Delhi High Court recently ruled that income arising from the transfer of foreign-owned intangible assets between two non-resident companies cannot be subject to Indian…
To refresh memories, several months ago I posted part 1 of this study on Kluwer’s International Tax Blog: Application of TNMM to Starbucks Roasting Operation: Seeking Comparables Through Understanding the Market Part 1 briefly describes my advocated transfer pricing approach drawn from my transfer pricing law treatise and my corresponding research based upon it. My…
The path from bank secrecy to automatic exchange of information and beyond Giant steps towards international transparency: The 2008 and 2014 Milestones In 2015 OECD released its Update on Voluntary Disclosure Programs: A pathway to tax compliance, which was a renewed edition of the original survey published in 2010. The 2015 update was aimed at…
Brazil is known for its unique transfer pricing legislation. While in most countries the use of comparables is central for the application of the transfer pricing methods, the Brazilian system has conceived the “fixed margins”, as means of ensuring practicability[1]. The Brazilian legislation adopts the predetermined profit margins under the equivalents of the resale and…
The transition from bilateralism to multilateralism in regard of international law-making seems to be a relentless work in progress. Nobody contests that multilateralism would be – legally speaking – preferable. On the other hand, the governments of the G20 have been constantly hesitant regarding a multilateral surveillance of their macroeconomic policies. Formally, the treaties are…
The OECD has today published details of the peer review and monitoring process of the Mutual Agreement Procedure (MAP) under Action 14 of the BEPS Action Plan. The framework includes the terms of reference for peer review based on the Action 14 final report minimum standards, an assessment methodology for the process and a reporting…
The Anti-Tax Avoidance Directive (ATAD) is the European answer to the phenomenon of BEPS: Base Erosion and Profit Shifting. Characteristically for tax avoidance by Base Erosion and Profit Shifting, is that it takes place within multinational groups (MNE’s). Therefore, the ATAD applies to these groups of companies. Nevertheless, the European Commission has chosen to also…
