Organisation for Economic and Commercial Development.
The author would like to give thanks to Professor Daniel Gutmann, Professor Georg Kofler, and Simon Whitehead for an engaging and intellectually stimulating exchange of views on the CJEU’s judgment in X BV case through the emails. This post benefitted from it. However, the author is solely responsible for its content and no views expressed…
After the silent collapse of Pillar One earlier this summer, as it now seems, the question as to what’s next seems to be moving up business agendas and political agendas. On an informal meeting of tax practitioners from business and consultancy in Rotterdam, the Netherlands, on 24 September 2024, the author of the current blog…
One strategic response of countries to the Global Minimum Tax (the GloBE rules) would be restructuring their tax incentives. The top-up tax effectively nullifies any tax incentive that brings the effective tax rate below 15%. This would push countries to redesign tax incentives that would otherwise produce an effective tax rate below 15%. In a…
The Pillar 2 initiative (GloBE and QDMTT) has been seen as the end of using low effective corporate income tax rates (either by virtue of low nominal corporate income tax rates and/or through the use of tax incentives) as a means to attract foreign investors. Sacrifices made by the host country in terms of lower…
Reader in Tax Law, King’s College London (Autumn 2024) The past 30 June 2024 was anticipated to be a historic moment. Inclusive Framework’s (IF) countries, both developed and developing, were expected to publicly commit to a crucial element of the “global tax deal” by signing the Multilateral Convention (MLC) for the OECD Pillar One. Expectations…
Introduction Throughout my professional life, I have worked with international tax law. Consequently, I have witnessed various trends and tendencies for more than a quarter of a century. The period during which I’ve been involved in tax law in my view represents a golden age for the discipline. Significant developments have occurred. During my student…
1. Background 1.1 An overview of current tax proposals The Omnibus Bill (Ley de Bases y Puntos de Partida para la Libertad de los Argentinos, the Bill) is a multi-purpose, comprehensive legislative proposal aimed at funneling and materializing several main objectives pursued by President Milei’s administration, concerning the restructuring of the public sector and the…
Part I. International treaty autonomous BO-GAAR relationship “[T]he concept of beneficial ownership is a basic principle of income taxation: the beneficial owner of income is the person who should be taxed on the income. [(…)] The concept of beneficial ownership is not a good anti-avoidance rule for dealing with conduit and other tax avoidance arrangements….
Introduction The present contribution aims at discussing two fundamental concepts often coming into play in the analysis of transactions between associated enterprises involving intangible property: the notion of (i) significant people functions (“SPFs”)[1] and that of (ii) development, enhancement, maintenance, protection and exploitation of intangible property (“DEMPE”)[2]. Based on my practical experience, lately these two…
Resolution 78/230 was approved by the United Nations General Assembly in December, 2023, creating a mandate for an ad-hoc committee inclusive of all UN member states to draft the terms of reference for a framework convention for international cooperation in tax matters. This unprecedented resolution was approved by a majority vote driven by the global…
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…
What is the current Tax Framework under the UN Model for Taxation of International Shipping and Airline-related income? The current version of the United Nations Model Double Taxation Convention between Developed and Developing Countries (“UN Model 2021”)[1] offers two alternatives under Article 8. Alternative A aligns with the OECD Model Tax Convention on Income and…
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…
Back in 2015, my first ever blog asked Does the UK Diverted Profits Tax help or hurt BEPS? Whatever the answer, the level of complexity and the challenges it brought to UK cross-border taxation cannot be underestimated. The recent decision of the UK Upper Tribunal in in Refinitiv Ltd and others v HM Revenue &…
