Finance

Abuse of law, Abuse of rights, Anti-tax avoidance, Beneficial ownership, Canada, Dividends, Double Taxation, Finance, Financial transactions, GAAR, income tax, International Tax Law, Luxembourg, MLI, OECD, OECD MC Convention, Share Dealings, Tax Avoidance, Tax haven, Tax Treaties, Treaty shopping, Withholding Taxes

(Temple Tax Chambers; King’s College London)/ /Leave a comment

In my previous blog I examined the Tax Court of Canada’s analysis of the meaning of beneficial ownership in tax treaties in Husky Energy Inc. v The King, 2023 TCC 167 in relation to stock or securities lending. This post examines the application of the General Anti-Avoidance Rule(GAAR) in Canada to the transactions. The facts…

Abuse of law, Anti-tax avoidance, Beneficial ownership, Canada, Direct taxation, Dividends, Double non-taxation, Double Taxation, DTA, Finance, Financial transactions, Holding company, International Tax Law, OECD, Tax Treaties, Treaty shopping, Withholding Taxes

(Temple Tax Chambers; King’s College London)/ /2 Comments

Although the meaning of beneficial ownership in tax treaties first burst onto the scene in Indofood International Finance Ltd v JP Morgan Chase Bank N.A. London Branch [2006] EWCA Civ 158  and, for the first time in Canada in Prévost Car Inc. v R 2008 TCC 231, (affirmed 2009 FCA 57), its meaning and application…

Corporate income tax, Double Taxation, Finance, Financial institutions, Financial services, International Tax Law, Liability to tax, MLI, OECD, Permanent Establishments, POEM, Residence, Rule of law, Tax Treaties, United Kingdom, United Nations, United States

(Temple Tax Chambers; King’s College London)/ /1 Comment

G E Financial Investments Limited v HMRC [2021] UKFTT 210 (TC)  raised central aspects of the interpretation of double tax treaties. My previous blogs considered the corporate residence  under article 4(1) of the UK-US Double Tax Treaty and the existence of a permanent establishment under article 5(1) of the treaty. The First-tier Tribunal decided that…

Abuse of law, Abuse of rights, Anti-tax avoidance, Corporate income tax, EU law, EU/EEA, Finance, GAAR, International Tax Law, M&A and Reorganizations, MLI, MNE Profits, Permanent Establishments, Principal purpose test, Principal/ancillary arrangements, Profit allocation methods, Tax Avoidance, Transfer Pricing, United Kingdom, United States

(Temple Tax Chambers; King’s College London)/ /Leave a comment

When the UK introduced its diverted profits tax, I was telephoned by a lawyer at the US Treasury. He wanted to know whether the “just and reasonable” apportionment of profits, in certain circumstances where DPT applied, was a new development? What did it mean? I was reminded of that discussion this week as a result…

Abuse of law, Anti-tax avoidance, EU law, Finance, Financial institutions, GAAR, Indirect taxation, Principal purpose test, Tax Avoidance, United Kingdom

(Temple Tax Chambers; King’s College London)/ /Leave a comment

Case law on thepurpose of transactions is starting to develop around the world. Is there a common pattern? Whether a financing structure was a “tax avoidance arrangement”  under  now repealed general anti-avoidance provisions of the New Zealand Income Tax Act 2004  was examined last month by the New Zealand Court of Appeal in Commissioner of…

Finance, OECD, Transfer Pricing

and (Tax Policy Center of the University of Lausanne, Switzerland)/ /Leave a comment

1. Purpose of the blog Intra-group guarantees are usually used by companies within the same multinational enterprise to obtain beneficial conditions for funding arrangements. For instance, lower interest rates due to the decreased level of the credit risk assumed by the lender (such as a bank) or/and extended borrowing capacity. In this blog, we will…

BEPS, Finance, OECD, Transfer Pricing

(Max Planck Institute for Tax Law and Public Finance, Munich) and (Tax Policy Center of the University of Lausanne, Switzerland)/ /Leave a comment

Introduction One of the most controversial topics of transfer pricing, in today’s multinational world, is the pricing of intercompany financial transactions. The 2017 OECD transfer pricing guidelines (TPG) lack clear rules specifically tailored to financial transactions, which can lead to a higher risk of divergent treatment of these transaction between tax administrations and taxpayers and…