On 22 November 2024 more than 300 tax experts gathered in Rome for the first Italian International tax conference organized by Italian Association of Joint Stock Companies (Assonime). Under the patronage of the OECD, the European Commission and the Italian Ministry of Economy and Finance (MEF), the event brought together business representatives and institutions to…
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…
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…
Maarten de Wilde[1] Summary On 19 February 2024 the Inclusive Framework on BEPS published its report on Amount B of Pillar One. The report adds to the discourse a standardised return-on-sales-oriented comparability analysis for the transfer pricing of low-risk distributors. The thing is called Simplified and Streamlined Approach (S&S Approach). Reading the report as it…
We are happy to inform you that the latest issue of the journal is now available and includes the following contributions: Andrés Báez Moreno & Yariv Brauner, Pillar One and Alchemy: What Can We Learn from past Mistakes Pillar One’s Amount A has failed miserably. However, the paper attempts to enumerate the many political and…
“[I]n this world, with great power comes great responsibility!” – Uncle Ben advice to the young Peter Parker, the 1962 Amazing Fantasy #15, by Stan Lee 1 Introduction Explainable artificial intelligence (XAI) systems in tax law are needed to comply with principles of law such as legality, proportionality and non-discrimination. A sufficient degree of explainability…
We are happy to inform you that the latest issue of the journal is now available and includes the following contributions: Reuven Avi-Yonah, Do Intangibles Fit BEFIT? This article argues that the BEFIT formula should not include intangibles because they are subject to manipulation and their value is reflected by other factors in the existing…
Abridged comments for a regional appraisal and possible outcomes to implementation 2010-2020: A Decade of Profound Changes in International Taxation Following the world financial crisis, the industrialized countries were deeply dissatisfied with revenue collection levels. In that context, which extended to the first years of the last decade, the political dialectic of the time left…
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…
Raffaele Russo[1] “In those countries where income taxes are lower than in the United States, the ability to defer the payment of U.S. tax by retaining income in the subsidiary companies provides a tax advantage for companies operating through overseas subsidiaries that is not available to companies operating solely in the United States… The undesirability…
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…
There’s something about OECD’s Pillar One. For some years now, the world has been under the spell of a new system of taxation of companies that make profits in countries without taking root there in any way. They often operate via internet platforms, which means that the profits that are generated elsewhere cannot be taxed…
As the Blueprint on Pillar I illustrates, the political and technical complexities inherent to the solution sought by OECD are of such magnitude, that such a sole fact opens the window to an alternate, workable outcome to market states; and in this sense, a coordinated treaty response from market states patterned after a source-based withholding…
In part 1 of this blog, we focused on the increased involvement of platforms in the levy of direct and indirect taxes. In this blog, we will highlight other digital economy tax trends, such as the shift of taxation rights on digital activities and fixed establishments. Shift of taxation rights between jurisdictions More user-and-consumer based…
