HMRC has added guidance to its manuals on its approach to determining UK tax residence for individuals and companies. Personal tax statutory residence test (SRT) – RDRM11005UK permanent establishments – INTM261010Corporate residence – INTM120185 In addition the UK Chancellor of...
The OECD has announced its long awaited report on the transfer pricing aspects of financial transactions. The report sets out guidance on accurately delineating and pricing of controlled transactions in this area, to be included in the OECD’s transfer pricing...
Having achieved good yields from applying diverted profits tax measures, HMRC has launched a new ‘profit diversion compliance facility. This is aimed at businesses that HMRC perceive to be non BEPS compliant with respect to transfer pricing and will include...
In the case of The Union Castle Mail Steamship Company Ltd v HMRC [2018] UKUT 0316 (TCC), the Upper Tax Tribunal (UTT) has dismissed the taxpayer’s appeal and held that losses it incurred on the issue of bonus shares to...
The OECD has issued a discussion draft on updated guidance for transfer pricing aspects of financial transactions. Responses to the discussion draft are requested by 7 September 2018. The discussion draft does not at this stage represent a consensus view...
In case C-382/16 the CJEU has held that national legislation applying transfer pricing principles to cross border related party transactions and not to wholly domestic related party transactions, is not contrary to the freedom of establishment principle. However this principle...
The OECD has updated its guidance on country by country reporting with respect to two areas. These changes should not affect the majority of enterprises subject to CBCR. Definition of total consolidated group revenue Clarification is provided that where an...
HMRC has released statistics on transfer pricing and diverted profits tax information covering the period 2011/12 to 2016/17. Highlights from this information include: Transfer pricing: HMRC collected an extra £1.6bn in 2016/17 from challenging transfer pricing arrangements, though some of...
The OECD has issued an updated version of its transfer pricing guidelines, providing guidance on the application of the “arm’s length principle”, which represents the international consensus on the valuation, for income/corporate tax purposes, of cross-border transactions between associated enterprises....
The High Court has rejected an application for judicial review of a diverted profits tax (DPT) charging notice issued to Glencore Energy UK Ltd (GENUK). GENUK sought permission to appeal the judicial review decision, but this was refused, though it...
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...
The focus on transfer pricing arrangements, including as a result of country by country reporting, means that more multinational groups may want the certainty of having an advanced pricing agreement (APA) in place. On 8 November 2016 HMRC published an...
The OECD announced on 15 June 2016, that on 23 May 2016, the OECD Council approved the amendments to the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations ("Transfer Pricing Guidelines"), as set out in the 2015 BEPS Report...
Under the UK’s transfer pricing rules, the pricing of transactions between connected persons can be adjusted for tax purposes if it is not at arm’s length in order to counter the resulting UK tax advantage. Owing to the system of...
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...
On 16 March 2016, the HM Treasury has published a ‘Business tax road map’ which sets out the government’s plans for business taxes to 2020 and beyond. The road map brings to a conclusion several key areas of tax policy...
It is not a question anymore whether the EU is a strong player at the tax policy field. The question is how strong… In the course of 2016, we expect a series of legislative and non- legislative initiatives to reshape...
The OECD announced on 27 January 2016 that 31 countries have now signed Multilateral Competent Authority Agreement (MCAA) for the automatic exchange of Country-by-Country reports (CBCR). The use of a multilateral instrument enables certain changes to be introduced efficiently into...
… and the Amazon and the Apple decisions are coming. Although, in the last 12 months, our attention was captured by the G20/OECD BEPS Project today all eyes are on the European Commission’s state aid work. It is undeniable that...
On 5 October, the OECD has issued the Final Reports on the BEPS 15 Action points and it is expected that the G20 Finance Ministers will discuss and endorse the Reports and the recommended changes at their meeting on 8...
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...
Under the Controlled Foreign Company (‘CFC’) legislation, UK-resident holding companies of a large group will face a CFC charge on profits of certain foreign subsidiaries. Previously, UK holding companies could offset UK losses/excess expenses to ‘reduce’ the profits of the...
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...
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...
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...
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...
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...
On 16 January 2015, the European Commission published a non-confidential version of a decision taken on 7 October 2014 to open an in-depth investigation into transfer pricing arrangements on corporate taxation of Amazon in Luxembourg. The EU Commission’s preliminary view...
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...
Release of discussion draft on revisions to Chapter I of the Transfer Pricing Guidelines (Including risk, recharacterisation and special measures) The OECD has invited stakeholders' input on the discussion draft which deals with work in relation to Actions 8, 9,...
State aid: European Commission extends information enquiry on tax rulings practice to all Member States - IP/14/2742 On 17 December, the Commission has enlarged the enquiry into the tax ruling practice under EU state aid rules to cover all Member...
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...
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...
Following the publication by the International Consortium of Investigative Journalists (“ICIJ consortium”) of over 300 advance tax rulings issued by the Luxembourg tax administration between 2002 and 2010, the Luxembourg Ministry of Finance organised a press conference and issued a press...
Prime Minister Abbott and Treasurer Hockey announced today that the G20 Leaders welcomed OECD recommendations that will help restore fairness, integrity and transparency to the international tax system. The United Kingdom's Prime Minister David Cameron announced during the press...
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...
The OECD released its new Strategy for Deepening Developing Country Engagement in the Base Erosion and Profit Shifting (BEPS) Project on 12 November 2014, which will strengthen their involvement in the decision-making processes and bring them to the heart of...
On 3 November, OECD released a discussion draft of proposed modifications to Chapter VII of the Transfer Pricing Guidelines relating to low value-adding intra-group services for comment by interested parties. This document is also available in French and Spanish. The...
The European Commission opened an in-depth investigation on 7 October 2014 to examine whether the decision by Luxembourg’s tax authorities with regard to the corporate income tax to be paid by Amazon in Luxembourg comply with the EU rules on state...
Today, the OECD published the comments received on the discussion draft on the paper on Transfer Pricing Comparability Data and Developing Countries. The comments were received in response to the invitation launched by the OECD on 11 March 2014. Background...
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...
State aid: Commission investigates transfer pricing arrangements on corporate taxation of Amazon in Luxembourg Today, the European Commission announced that it has opened an in-depth investigation to examine whether the decision by Luxembourg's tax authorities with regard to the corporate...
United Nations Subcommittee on Base Erosion and Profit Shifting (BEPS) had invited the developing countries to provide feedback by answering the UN Questionnaire including 10 questions. This summary focuses on the responses provided by China and India. In its response, India...
11 days after the warm welcome and endorsement of the 7 Deliverables (2014) by the G20 in Cairns, the OECD published a revised calendar for stakeholders' input. The announcement emphasized that the timeline of the OECD/G20 Base Erosion and Profit...
State aid: European Commission publishes non-confidential versions of decisions to open investigations into transfer pricing arrangements on corporate taxation of Apple (Ireland) and Fiat Finance and Trade (Luxembourg) On 30 September 2014 the European Commission has published non-confidential versions of...
We welcome the OECD announcement on OECD BEPS project and deliverables. Today is a landmark day 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...
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)...
The OECD will release 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) Project on Tuesday 16 September 2014. The OECD Secretary General Angel Gurría...
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...
On 5-6 September 2013, the G20 leaders endorsed the OECD Action Plan to tackle base erosion and profit shifting (BEPS) in St Petersburg. The Development Working Group (DWG) asked the OECD to draw together the experiences of developing countries and...
The Budget announcements confirmed that there are no further changes to this measure. To recap, legislation has been introduced to deny a transfer pricing compensating adjustment in two scenarios: service companies that undercharge, creating a transfer price compensating adjustment in...
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...
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