OECD

Organisation for Economic and Commercial Development.

COVID-19, OECD, Permanent Establishments

(Ministry of Finance of the Democratic Republic of Congo )/ /Leave a comment

Trésor-Gauthier M. Kalonji [1] Summary The Covid-19 pandemic has shaken several rules applicable in conventional tax law, in particular with regard to determining the conditions for qualifying a “building site or construction or installation project” as a permanent establishment (hereafter “PE”), as defined by the OECD Model Tax Convention on Income and on Capital (hereafter…

OECD, Pillar II

(Erasmus School of Law, Erasmus University Rotterdam, PwC Rotterdam)/ /1 Comment

Prof.dr. M.F. (Maarten) de Wilde[1] Summary On 20 December 2021, the OECD published the announced Pillar Two Model Rules, as part of the envisaged establishment of a global 15% minimum level of company taxation for large multinationals (Pillar 2). No mechanism has been considered to provide for a parallel adaptation of countries’ tax treaty networks…

Multilateral Convention, OECD, Pillar I

(Junior Tax Manager at BDO Netherlands) and (PwC Austria)/ /Leave a comment

Introduction On 8th October 2021, 136 jurisdictions reached an historic agreement to reform the international tax system and, in the words of the OECD, bring it into the 21st century.[1]  The so-called two-pillar solution was presented to the G-20 Finance Ministers and the G-20 Leaders, who endorsed it. Thus, the future work of the OECD…

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…

Europe, G20, Global minimum tax, OECD, Pillar II

(University of Muenster)/ /Leave a comment

Just two weeks ago on 8 October 2021, 136 of 140 member countries of the OECD/G20 Inclusive Framework agreed on a global tax deal that also features the GloBE international effective minimum tax (the so-called Pillar 2 of their work program). The G20 finance ministers backed the deal in their subsequent meeting, too. The agreement…

India, OECD, Tax Treaties

, (Nangia Andersen LLP)/ /Leave a comment

Though India has been having tax treaties with over 90 countries across the globe for several decades now, interpretation of various provisions of the treaties continues to be a subject matter of protracted litigation to date. Many issues remain vexed in India, as very few of them are settled at the Supreme Court level. As…

India, OECD, Transfer Pricing

(Managing Partner at BMR Legal) and (BMR Legal)/ /Leave a comment

  A conversation on International Tax Practice culminated into an IFA webinar series on May 20th with global experts sharing their perspectives on landmark treaty and transfer pricing rulings delivered by Courts in various jurisdictions suggesting areas of alignment and divergence of principles. In an eminent panel moderated by Professor Robert Danon, Mr. Mukesh Butani…

Corporate income tax, Dispute resolution, Double Taxation, India, International Tax Law, OECD, Permanent Establishments, Physical presence, Place of taxation, Tax Treaties, United Kingdom, United States

(Temple Tax Chambers; King’s College London)/ /3 Comments
Delaware law, habitual exercise

Last month my blog discussed the questions relating to corporate residence and article 4(1) of the UK-US Double Tax Treaty raised in G E Financial Investments v HMRC  [2021] UKFTT 210 (TC). This month the focus is on the permanent establishment issues. The case concerned a complex financing structure General Electric Company group. The taxpayer,…

GAAR, India, OECD, Transfer Pricing

(BMR Legal) and (Managing Partner at BMR Legal)/ /Leave a comment

  On 20 May, 2021 the first Webinar of IFA’s online series “A conversation on International Tax Practice” was held. Chaired by Robert Danon (Chair IFA Permanent Scientific Committee), global experts shared their perspectives on India’s software royalty case and on landmark transfer pricing rulings delivered by Courts in various jurisdictions thereby suggesting alignment and…

Canada, Corporate income tax, Double Taxation, International Tax Law, MAPs and APAs, MNEs, OECD, Permanent Establishments, Residence, Tax Treaties, United Kingdom, United States

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

When is a taxpayer a resident of a contracting state for purposes of a tax treaty? The decades old definition in article 4(1) of the OECD Model that ‘“resident of a Contracting State” means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place…

DAC 7, Digital platforms, EU law, EU/EEA, OECD, Tax Administration, Tax transparency

(CIAT, IMF)/ /Leave a comment

Today, there is an exponential increase in new forms of commercialization of goods and the provision of services that make use of digital platforms. This situation is altering the functioning of the transport, delivery and digital services markets, among others. The rise of the sharing and gig economy, powered by digital platforms, has triggered the…

Effective Tax Rate, GILTI, IIR, OECD, Pillar II, United States

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

Welcome to the second tax post in the series of International Law Talk. During a series of podcasts, Wolters Kluwer will bring you the latest news and industry insights from thought leaders and experts in the field of International Arbitration, IP Law, International Tax Law and Competition Law. Here at Kluwer Tax Blog, we will…

ADS, Digital services tax, OECD, Pillar I, Transfer Pricing, United Nations

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

1. Background During the 21st Session of the UN Committee of Experts on International Cooperation in Tax Matters, the relevant members decided to include a new draft – Art. 12B on Automated Digital Services (ADS) as well as its Commentary – in the UN Model.[1] Concerning the agenda of the proposal, the Committee of Experts…

BEPS, MNEs, OECD, Pillar II, Transfer Pricing

(Erasmus School of Law, Erasmus University Rotterdam, PwC Rotterdam)/ /Leave a comment

Summary There might be a leak in the OECD’s global minimum tax proposals (GLOBE; Pillar Two). To address the remaining challenges of base erosion and profit shifting (BEPS) by large multinational enterprises the OECD envisages a global minimum level of company taxation and top-up taxation by countries up to that level where other countries do…