BEPS

Taxation of digital activity – background

There has been a lot of discussion and consultation, both nationally and internationally, on how digital activity should be taxed. This article is one of three, providing a brief summary of the position as at June 2018 and links to...

OECD Country by Country (CbC) Reporting News

The OECD has announced that more than 700 automatic exchange relationships have now been established among jurisdictions committed to exchanging CbC Reports as of 2018, including those between EU Member States under EU Council Directive 2016/881/EU. A full list of...

OECD discussion draft on hard to value intangibles

The OECD has issued a discussion draft setting out guidance on the principles to apply when implementing the approach to pricing hard-to-value intangibles ("HTVI") contained in Section D.4 of Chapter VI of the OECD Transfer Pricing Guidelines. Comments on the...

Two changes to the hybrid mismatch rules

Two minor changes will amend the hybrid and other mismatch regime contained in Part 6A of Taxation (International and Other Provisions) Act 2010 (TIOPA 2010). The first removes the need to make a claim in relation to the permitted time...

EU anti-tax avoidance directive moves closer

Agreement of an EU anti-tax avoidance directive has moved closer following agreement to a revised draft by ministers at the ECOFIN meeting on 17 June 2016, as announced in an EU Council press release.  Member States will have until 31...

Tax deductibility of corporate interest expense

On 12 May 2016, HMRC and HM Treasury issued a further consultation in respect of the tax relief for corporate interest expense – this time covering detailed policy design and implementation issues.  The document runs to 92 pages, highlighting the...

Coca-Cola Case- Is it sweet enough?

On 17 September 2015, the Coca-Cola Company in the U.S. (“Coca-Cola U.S.”) received a statutory notice of deficiency (hereinafter “the notice”) from the Internal Revenue Service (“IRS”) for $3.3 billion U.S. Dollars (“USD”) excluding any interest  for fiscal years 2007...

An EU Budget Sweetener For UK SMEs?

Today the Chancellor delivered one of the most business-focussed Budgets of recent Parliaments. What was most interesting was the apparent tactical switch away from supporting multinational businesses to targeting SMEs and UK business owners. The cynics may say this Budget...

Restrictions to Interest Deductions

New rules will be introduced which will restrict the amount of interest for any UK group with a net interest charge over £2 million. HMRC has outlined proposals to restrict the interest deduction which can be taken by UK companies....

Hybrid Mismatch Arrangements

Additional rules to further extend the reach of the proposals to tackle hybrid arrangements. Hybrid entities have been used by some groups to take advantage of differences in the treatment of certain types of entity in different countries. This can...

Country-by-country reporting – regulations made

Following the release of the draft country-by-country (CbC) reporting regulations on 5 October 2015 for technical consultation, the final regulations The Taxes (Base Erosion and Profit Shifting) (Country-by-Country Reporting) Regulations 2016 SI 2016/237 have now been laid before Parliament. The background to...

HMRC issues examples of hybrid mismatch rules

Background By way of recap, hybrid mismatch arrangements are arrangements intended to secure tax advantages (mismatches) within multinational groups resulting from differences in tax treatment of the same instrument or entity between different jurisdictions.  Hybrid mismatch arrangements can arise both...

Finance Bill 2016: Anti-Hybrids Rules

Action 2 of the G20-OECD Base Erosion and Profits Shifting (BEPS) projects concerns hybrid mismatch arrangements.  These are arrangements intended to secure tax advantages (mismatches) within multinational groups resulting from differences in tax treatment of the same instrument or entity...

Diverted Profits Tax Guidance Issued

HMRC has issued guidance in respect of the Diverted Profits Tax (DPT), replacing the interim guidance issued in March 2015. DPT was introduced by Finance Act 2015, and applies from 1 April 2015.   Key points to note about DPT ·        ...

Is taxation a poisoned chalice?

"Is the taxation a poisoned chalice?" That is what many told to Commissionaire Pierre Moscovici when he found out that President Juncker had given him the taxation portfolio. In the last eighteen months, the European Commission’s and OECD’s strong commitment...

BEPS: Transfer Pricing Status Update

The Organisation for Economic Co-operation and Development (‘OECD’) held its final public consultation on Actions 8-10 (transfer pricing/'TP') of the Base Erosion and Profit Shifting (BEPS) project on 6 and 7 July 2015. The first day of meeting focused on...

Tax Incentives under Scrutiny

On 9 July 2015, the OECD released a discussion draft on options for low income countries' effective and efficient use of tax incentives for investment. This Discussion Draft is a result of the G20’s Development Working Group (DWG) who has...

EU Action Plan: Nice to meet you…..

The European Commission presented an Action Plan to fundamentally reform corporate taxation in the EU on 17 June 2015. The Action Plan sets out a series of initiatives to tackle tax avoidance, secure sustainable revenues and strengthen the Single Market...

BEPS – Action 8: Hard-to-Value Intangibles

The OECD published its discussion draft  which deals with work in relation to Action 8 of the Action Plan on Base Erosion and Profit Shifting (BEPS) and focuses on arm’s length pricing of intangibles when valuation is highly uncertain at the...

BEPS Action 7 (PE): We are not there yet….

The OECD reached an important milestone of its work on Action 7 [Prevent the Artificial Avoidance of Permanent Establishment (PE) Status] of the Action Plan on Base Erosion and Profit Shifting (BEPS). On 15 May, public comments are invited on a new...

EU: Could the CCCTB be the Answer?

Commissioner Moscovici highlighted the re-launch of a debate on the Common Consolidated Corporate Tax Base (CCCTB) on 29 April as a part of the EU Commission’s Action Plan. This Action Plan will build on 5 key actions, starting with the relaunch...

BEPS – Action 8: The Ball is in your Court

The OECD invited public comments on a Discussion Draft which deals with work in relation to Action 8 of the Action Plan on Base Erosion and Profit Shifting (BEPS) on 29 April. Action 8 covers the transfer pricing of intangibles...

BEPS- Action 11: Pay Attention!

On 16 April 2015, the OECD has invited public comments on a discussion draft which deals with Action 11 - Improving the analysis of BEPS.  Action 11 of the BEPS Action Plan focuses on improving the availability and analysis of data on...

BEPS- CFC

On 3 April, the OECD published a Discussion Paper on Action 3 (Strengthening CFC Rules) of the BEPS Action Plan focusing on develop recommendations regarding the design of controlled foreign company (CFC) rules. The Committee on Fiscal Affairs (CFA) invites interested...

BEPS – One Step Closer

The OECD has released a Discussion Draft on Action 12 (Mandatory Disclosure Rules) of the BEPS Action Plan on 31 March. The Action Plan calls for this work to be completed by September 2015 and the CFA invites interested parties to...

BEPS: The Global Fight against Tax Avoidance Continues

On 9-10 February 2015, the OECD presented the latest developments in the OECD/G20 project to combat BEPS by multinational enterprises during a G20 Finance Ministers and Central Bank Governors’ meeting in Istanbul, Turkey. In their Communiqué, the G20 Ministers and...

BEPS Action 7 – More Questions than Answers

On 21 January, the OECD held a public discussion meeting on BEPS Action 7 focusing on preventing the artificial avoidance of permanent establishment (PE). Action 7 is one of the most discussed action points of the BEPS Action Plan and...

Luxembourg: New Year, New Rules….

Summary Article 29a of the General Tax Code on the Advance Tax Rulings and Advance Ruling Committee entered into force on 1 January 2015 in Luxembourg; Luxembourg endorsed the EU Commission’s plan to present a draft directive on mandatory automatic...

Keep Calm and Comment on BEPS

I am wondering whether it is only me who is facing hundreds of pages of discussion documents inviting stakeholders’ input or are you also sharing the same experience while you are drinking your strong cup of coffee today! It is...

BEPS – The Oldest Trick in the Book

On 18 December, the OECD has invited public comments on a discussion draft which deals with action 4 (Interest deductions and other financial payments) of the BEPS Action Plan. The use of interest (and in particular related party interest) is...

BEPS: Keep Calm and Get Ready for Action 10

On 16 December, the OECD published two discussion drafts on Action 10 and has invited public comments on the transfer pricing aspects of cross-border commodity transactions and on the use of profit splits in the context of global value chains...

Clamp down on avoidance by multinational groups

The Chancellor finally gave some more detail on his promise to tackle the techniques used by multinationals groups to shift profits offshore. This change will impact multinational groups like those which have been very publicly named and shamed in the...

Starbucks v EU Commission: Alleged aid to Starbucks

Today’s blog is from Dick van Sprundel, Assistant Professor International and European Tax Law at the Erasmus University Rotterdam plus International Tax Partner Mazars Netherlands Executive Summary: Today, the European Commission published its preliminary view concluding that that the APA...

BEPS: Permanent Establishment- the Next Chapter

OECD/BEPS: Release of discussion draft on Action 7 (Prevent the Artificial Avoidance of PE Status) of the BEPS Action Plan  On 31 October 2014, OECD has invited invited public comments on a discussion draft which includes the preliminary results of...

51 Signatures, 1 Agreement

Today, the Finance Ministers from 51 countries and jurisdictions have signed a Multilateral Competent Authority Agreement on the implementation of the Global Standard for the automatic exchange of financial account information. The signature of the Multilateral Convention on Mutual Administrative...

What is on the agenda? Common Reporting Standard

BEPS, FATCA, CRS are the buzzwords which have shaped the tax discussion and meetings recently. On 16 October, Ali Kazimi, Mazars Financial Services Partner, was one of the leading panellists at a HMRC event on the Foreign Account Tax Compliance...

International Tax Guest Lecture

Today, Mazars was very pleased to welcome Dr Tom O’Shea and his LL.M in International Tax Law students from the Centre for Commercial Law Studies, Queen Mary, University of London. Dr Tom O’Shea delivered a very interesting guest lecture entitled...

Looking Back, BEPS: What happened in the last 14 months?

This September is a very challenging and landmark period for the international tax world. The OECD releases its first recommendations for a co-ordinated international approach to combat tax avoidance by multinational enterprises under the OECD/G20 Base Erosion and Profit Shifting (BEPS)...

BEPS Action Plan – The Ambitious Programme

This September will be a very exciting period for the international tax world and it is expected that the BEPS project marks its first turning point in the history of international co-operation on taxation. Pascal Saint-Amans, Director of OECD Centre...

UK Priorities for the G20-OECD BEPS project

In July 2013, the OECD published an Action Plan which set out 15 different actions to overhaul the international tax system.  Base Erosion and Profit Shifting (BEPS) is defined as essentially being where there is a divorce between the location...

OECD gives an update on the BEPS Action Plan

Base erosion and profit shifting (BEPS) refers to the situation where there is a divorce between the location of profit and the location of the value creation. The OECD issued a detailed Action Plan to tackle BEPS. On 23 January...