Tax lessons of COVID-19 The COVID-19 pandemic has exposed businesses to unprecedented levels of uncertainty, and taxpayers fear that the post-crisis future may herald an audit wave. Here ITR explores the results of its survey on the crisis.
Market insight There have been some significant new hires across a range of tax firms around the world.
The future of global tax reporting through automation Two of Deloitte’s leading women in tax talk to ITR’s Managing Editor Anjana Haines about how robotics and automation will transform the way companies comply with global reporting requirements in a post-COVID economy.
COVID-19: Tax lessons learned Keith Brockman explores the lessons of the COVID-19 pandemic for tax departments.
Maryland digital advertising tax case to set precedent for US state levies Tax professionals disagree on the fate of Maryland’s digital advertising tax, which is being challenged in the courts, but the outcome of the lawsuit will set the tone for future state-levied taxes.
Multilateral tax treaties can be simplified using economic principles Federico Balbiano di Colcavagno, transfer pricing expert at Vale International, presents his proposal for a simplified multilateral tax treaty model that is consistent with the arm’s-length principle, taxing rights, and based on economic principles.
Deep dive: Indian Supreme Court’s ruling on software licensing fees Sanjeev Sharma, principal director of income tax at the India Income Tax Department, explains how the Supreme Court’s ruling on software licensing fees interpreted the application of tax treaties, the OECD Model Tax Convention, Income Tax Act and Copyright Act.
India decides to fight Cairn arbitration decision The Indian government will appeal the arbitration decision to award Cairn Energy $1.4 billion in a transfer pricing dispute after negotiations between the company and the government failed to produce a compromise.
How to capitalise on career opportunities in tax Women in tax say participating in every opportunity where new skills can be learned, making the most of mentors and sponsors, and building a personal brand, are essential to a successful tax career.
MNEs must invest in technology or risk being overtaken by tax authorities Tax directors warn that multinational enterprises (MNEs) must transform their tax departments to manage multiple ERP systems and mitigate risks as revenue authorities gain increasing access to technology and taxpayer data.
TP directors split over COVID-19 TP documentation strategies Tax directors at ITR’s Women in Tax Forum are using a range of methods to deal with the transfer pricing (TP) implications of the COVID-19 pandemic, which has made in-depth documentation more important.
Why sustainable tax makes good business sense Karl Berlin, vice president and head of tax at Ørsted, makes the case for a more transparent, more sustainable tax policy and explains why his company takes this approach.
How the tax function has endured COVID-19 The challenges presented by the COVID-19 pandemic have exposed the central importance of the tax function in large businesses and the need to maintain internal relationships, says Sandy Markwick, head of the Tax Director Network.
E-invoicing in the Middle East: the difficulties and opportunities Hany Elnaggar, Middle East head of tax at Nissan, discusses the hurdles involved with adapting to e-invoicing requirements and what steps companies should take to be successful.
How the MLI affects O&G upstream assets on entry and exit in Kazakhstan Andrey Kudyarov, Kazakhstan and Caspian country tax manager at a global oil company, explains how changes in Kazakhstan’s capital gains tax regime and the impact of the MLI on tax treaties could affect business decisions.
Uber faces higher tax bills after losing UK Supreme Court case Uber drivers must be classified as workers, according to a UK Supreme Court ruling issued on February 19. The case will have significant tax and employment implications for companies operating in the so-called ‘gig economy’.
What the UK Supreme Court ruling on Uber means for gig economy MNEs The tax implications of Uber’s drivers being classified as ‘workers’ rather than self-employed are still unclear, but the UK revenue authority’s next steps could set a precedent for the treatment of multinational enterprises (MNEs).
Turnover taxes do not violate EU state aid law, finds CJEU Turnover taxes in Poland and Hungary are compatible with EU state aid rules, according to the Court of Justice of the European Union (CJEU). This opens the door to yet more taxes on digital services.
How CJEU rules on bundled supplies affect the VAT liability of goods and services Erik Stessens, senior VP of tax for Europe and APMEA at Mastercard, explains how analysing EU judgments can help to clarify questions over European VAT liabilities when grouping together goods and services.
The European Green Deal: The challenges for industry The individual interests of member states could hamper progress on the European Green Deal and EU Energy Tax Directive amendments, leaving businesses caught in the middle. Karen Möhlenkamp, Sabine Schulte-Beckhausen, and Bertil Kapff from the European Institute of Energy Technology explain.
“Never let a good crisis go to waste” Giles Parsons looks at how companies can respond to COVID-19 and make themselves stronger and more efficient in the long-term.
Ever-tighter regulation of Chinese private funds: Time to re-visit tax planning Henry Wong of KPMG China considers the changes announced through Announcement 71, and explores how foreign asset management firms can seize the new opportunities for establishing private funds in China.
Preserving taxpayers’ rights in China Kevin Ng, Ron Cheng Ma and Kerry Yanbin Kuang of Deloitte explore how China has strategically developed its legal framework to provide a higher level of protection for taxpayers.
US relinquishes its ‘safe harbour’ request in digital tax negotiations Multilateral agreement on digital taxation is more likely now that the Biden administration has removed the Trump-era ‘safe harbour’ requirement on pillar one, but some experts say technical details may still need negotiating beyond July 2021.
EU could make public CbCR a global standard The European Union may become the first bloc of countries to make country-by-country reporting (CbCR) publicly accessible after progress at the EU Council, potentially setting an international standard.
UK ‘super-deduction’ set to lure FDI away from Dutch market The 130% super-deduction is one of the largest corporate tax giveaways ever in the UK, according to government officials. It is also a blow to foreign direct investment (FDI) in the Netherlands.
India’s equalisation levy expansion could trigger litigation Tax professionals expect multinational enterprises (MNEs) to challenge any attempt by the Indian government to target software licensing fees under the planned expansion of the equalisation levy, after the government lost a landmark Supreme Court case.
The UK proposes audit reforms to end Big Four dominance The UK government has released proposals to reform the country’s audit sector and reduce the dominance of the Big Four firms by introducing a market cap and shared audits. But there is no clear roadmap.
Hong Kong stamp duty hike offers a chance to reduce compliance burden The unexpected 30% stamp duty rate increase on stock transfers, which saw shares on the main stock exchange HKEX tumble by 8.8%, could precipitate a dialogue between taxpayers and the government over intermediary exemptions and outdated administrative requirements.
Tax Relief Because tax doesn’t have to be taxing. A less-than-serious look back at some of the quirkier tax stories from the past month.
Australia: ATO wins legal professional privilege dispute and sets COVID-19 PE risk guidance From judicial decisions to ATO guidance updates, Paul McNab of DLA Piper summarises the tax-related developments from early 2021 in Australia.
Brazil: Tribunal considers municipal service tax over complex contracts Bruno Porto and Mark Conomy of PwC Brazil discuss the Brazilian Supreme Federal Tribunal’s decision confirming that municipal service tax (ISS) can apply over ‘complex contracts’.
Chile: Indirect transfer of assets and new withholding provisions Germán Campos and Mauricio Ramírez of PwC Chile explain the withholding provisions applicable to offshore indirect transfers.
China: Legislature approves development blueprint for next five years Lewis Lu of KPMG China considers the key tax policies set forth from recent governmental meetings.
Germany: TP world of 2021 – increased tax disputes and litigation expected Yves Hervé and Philip de Homont of NERA Economic Consulting discuss the potential impact of the key changes proposed in the German Ministry of Finance’s transfer pricing administrative guidelines.
Greece: Ethics in taxation with the advent of the mandatory disclosure regime Riana Zanni of EY Greece discusses how the mandatory disclosure regime will help to combat tax avoidance and why member states must improve their national administrations and systems.
France: Special expatriate tax regime – a breath of fiscal oxygen under control Nicolas Duboille and Alexia Dal Ponte of Sumerson examine the French special expatriate tax regime enshrined in Article 155B of the French Tax Code, in the light of recent case law.
Hong Kong SAR: 2021-2022 Budget – key takeaways Lewis Lu and John Timpany of KPMG discuss Hong Kong SAR’s latest budget and what it means for businesses and taxpayers.
India: Defining ‘liable to tax’ Rishi Kapadia and Jairajesh Nadar of Dhruva Advisors look at how clarifying the interpretation of the term ‘liable to tax’ could impact the availability of tax treaty benefits.
Indonesia: Taxation supports ‘ease of doing business’ Ahdianto and Julius Wahyu of GNV Consulting discuss income tax, VAT and general tax provisions in relation to supporting ‘ease of doing business’.
Luxembourg: A closer look at tax assessments Xavier Sotillos Jaime and Mariana Cohen Margiotta of Deloitte provide an overview of the Grand Duchy’s direct tax framework.
Netherlands: Proposals on TP adjustments and taxation of reverse hybrid entities Jian-Cheng Ku and Tim Mulder of DLA Piper explore the Dutch legislative proposals to eliminate double non-taxation through transfer pricing and taxation of reverse hybrid entities.
New Zealand: Set to introduce new business continuity test for tax loss carry-forward rules Fred Ward and Young-chan Jung of Russell McVeagh consider the key elements of the new business continuity test, which arrives following the economic fallout caused by the COVID-19 pandemic.
Poland: Is 7.2% really the maximum interest deduction? Justyna Bauta-Szostak and Piotr Paśko of MDDP consider whether or not interest exceeding the maximum interest rate, can still be recognised at arm’s-length.
Romania: Fixed establishments at a glance Georgiana Iancu of EY Romania explores the concept of fixed establishments within the Romanian tax framework and looks at how it operates alongside VAT legislation and tax audits.
Russia: IP box as a new tax haven Tatyana Matveeva and Olga Wollny of KPMG Russia discuss new tax incentives for IT companies aimed at creating an attractive business climate in Russia.
Singapore: Budget 2021 – a summary of the key tax changes Liew Kin Meng of Crowe Singapore explains the main takeaways from Singapore’s budget for 2021.
Spain: Impact of Brexit on lenders Ramón Tejada and José Ignacio Ripoll of Garrigues discuss the impact of Brexit on UK branches of EU/EEA lenders.
Switzerland: A tonnage tax for maritime activities René Zulauf and Manuel Angehrn of Deloitte Switzerland look at how the federal government has planned to boost the country’s attractiveness as an international business hub for maritime activities.
Thailand: Foreign e-service businesses liable for VAT Paul Ashburn and Duangnetr Sarachai of HLB Thailand discuss the amendments to the Thai Revenue Code that introduces VAT on foreign e-services, effective from September 1 2021.
US: Coca-Cola TP case – takeaways for taxpayers Mark Martin and Thomas Bettge of KPMG in the US discuss the recent IRS victory in the Coca-Cola case and explore its implications for other businesses.
