China’s fiscal and tax reform should aim to narrow down income disparity and facilitate income redistribution to realize social equity. Justifiably, Chinese citizens’ perception to the rich has been different and subtle, given the suspicion that the rich grows wealth through unethical rent-seeking or corruption. The philanthropic tradition and culture were squandered by uncivilized spending…

In a recent post, Professor Werner Haslehner raised an interesting discussion on the new wording of Article 4.1 (a) of the Parent-Subsidiary Directive (“PSD”), which obliges the Member State of the parent company to tax the dividends received to the extent that the corresponding payment are deductible from the corporate income tax paid by the…

In many respects a multilateral tax treaty represents an utopian view of international tax law: a wide consensus among nation states to submit themselves to a common set of rules that govern the levying of taxes across national boundaries. While there have been several examples of attempts at multilateral double taxation treaties, such as the…

A Delaware company, which was a wholly owned subsidiary of a Swedish corporation (aktiebolag), acted as a non-independent agent on behalf of exporting companies in the United States. The profit of the subsidiary was exempt from corporate taxation in the United States, while the dividends paid to the Swedish parent were subjected to federal tax….

This post answers the emails received requesting further information on the US Competent Authority, including statistics, based upon my Kluwer Tax Blog post of 25 August IRS Issues New Competent Authority And Advance Pricing Agreement Procedures. The Office of the United States Competent Authority (USCA) includes both the Advance Pricing and Mutual Agreement (APMA) Program…

Last month, Dennis Weber started a debate on recent BEPS-related changes to European tax directives with his post on the General Anti-Abuse Rule in the Parent-Subsidiary. I would like to follow up on this with a short discussion of the second anti-avoidance measure introduced last year through Directive 2014/86/EU, which specifically targets hybrid financial instruments…

In general terms, the application of anti-hybrid rules proposed by the OECD in Action 2 of the BEPS Project, with the aim of establishing a link between the tax treatment applicable to the remuneration derived from hybrid financial instruments in different jurisdictions, will depend on the fulfillment of four cumulative conditions: (i) the use of…

On August 12, 2015 the IRS released two final revenue procedures impacting the U.S. transfer pricing regime.  Revenue Procedure 2015-40 concerns the protocols and procedures for requesting assistance of the U.S. competent authority (CA) and the other, Revenue Procedure 2015-41, the protocols and procedures for seeking an Advance Pricing Agreement with the IRS.[1] In 2013…

On august 7, 2015, OECD released its Update on Voluntary Disclosure Programmes: A pathway to tax compliance, a renewed edition of the survey published in 2010, aimed at providing guidance to governments wishing to offer taxpayers the chance to come forward and become compliant, regularizing their tax affairs and declare income and wealth that have…

Written by Associate Professor, PhD Anders N. Laursen, Department of Law, Aarhus University and Technical Advisor to CORIT Advisory On June 4th 2015 the High Court of Eastern Denmark decided to refer a case to the European Court of Justice (ECJ) concerning the Danish mandatory group taxation regime.  Also in June 2015, the Commission issued…

The case brings about the opportunity to fill a gap in the Norwegian tax law. In order to determine the fiscal residence of a corporation, the current formula stipulated by art. 2(2) Tax Act uses the notion of ‘belonging to the jurisdiction’, while the OECD model employs the term ‘place of effective management’[1] as a…

The first part of this blog post addressed the incompatibility of the anti-hybrid rule proposed by the OECD to the source state (“primary response”), which restricts the right to deduct the payments made to non-residents, with the non-discrimination provision found in article 24(4) of tax treaties patterned on the OECD MC. In this second part…