India’s Authority of Advance Ruling (AAR) has delivered a judgment which deviates from a High Court precedent, meaning foreign companies must carefully analyse the tax treatment of Indian permanent establishments (PEs) receiving royalties and fees for technical services (FTS) before structuring their operations in the jurisdiction.
A ruling by the US Court of Appeals for the Fifth Circuit concerning the transfer of funds from a closely held company to its sole board member provides valuable lessons for taxpayers as to how the courts will decide debt versus equity cases.
India’s Authority for Advance Rulings (AAR) has said a Mauritius tax residency certificate is sufficient to benefit from the India-Mauritius double taxation avoidance convention, but taxpayers may only be safe until the general anti-avoidance rule (GAAR) is introduced in April 2013.
Taxpayers can look forward to earlier, more cost effective dispute resolution after the Australian Taxation Office (ATO) agreed to several recommendations in a recent report published by the Inspector-General of Taxation (IGT).
France’s recently elected Socialist government has already announced new tax policies aimed at large companies, with changes to anti-abuse and controlled foreign company rules likely to lead to more tax authority challenges next year.
The European Court of Justice (ECJ) dealt a blow to discretionary fund managers (DFMs) in the Deutsche Bank case last week when it said they must charge VAT on their services, but there are options available to limit the harm this will cause, according to advisers.
