Magazine
July / August 2015

Magazine Archive

India's MAT: The government is listening

Poonam Khaira Sidhu, commissioner and departmental representative at the Income Tax Appellate Tribunal (ITAT), New Delhi, talks about open dialogue between authorities and taxpayers, and the evidence that the Indian government is listening to investor concerns.

Why tax treaties matter in Iraq’s evolving taxation landscape

Imtiaz Ahmad of PetroChina argues the development of a tax treaty network would help the Iraqi government convince investors to support the revival of the economy.
Foreign pension funds with US investments: Tax classification

The tax classification of a foreign pension fund investing in the United States has major implications in terms of who is subject to tax, the applicable tax rate and the associated reporting obligations. Francis Helverson of WTS explains why pension funds with certain characteristics may have significant advantages over other pension funds as well as over other types of foreign investors.
BEPS implementation in the US - Now comes the hard part

While the OECD has political backing and momentum behind it, the organisation has no binding authority to implement legislation, so the engagement of key jurisdictions including the US will be central to the project's ultimate success. Ryan Dudley, partner at Friedman, explains why the hard yards still lie ahead.
Russia: Revised CFC rules for trusts and foundations

Half a year after the initial version of the ‘deoffshorisation’ law came into effect, the Russian Finance Ministry is making progress with vital amendments to make the rules more balanced and clear, including the much-awaited rules on ‘good’ and ‘bad’ trusts. Artem Toropov of Goltsblat BLP explains how private clients are expected to benefit from this.
How good governance can curb illicit financial flows out of Africa

Cooperative compliance between governments and multinational enterprises could be critical to efforts to minimise illicit financial flows from Africa, argue Jeffrey Owens and Alicja Majdanska of the Vienna University of Business and Economics.
Error, please try again: Europe reloads CCCTB
Deals of the month

See who has done the tax work on this month’s biggest deals
Illusory transparency: A symptom of BEPS complexity

The inception of the OECD’s base erosion and profit shifting (BEPS) action plans was accompanied by new demands for fiscal transparency, ignoring omnipresent thorns of complexity.
India’s Rs 20,000 crore demand disrupts Cairn merger
Hatch and Ryan voice US BEPS concerns
Switzerland makes Bitcoin VAT exempt
Saint-Amans and Bhatia hit out at EU non-cooperative list
Ghana amends VAT Act; hits real estate but exempts pharmaceuticals
Vicious and virtuous circles: Planning for change with Schroders’ group tax head

Joe Stanley-Smith talks to Sue Cooper, group head of tax at global asset management company Schroders, about inter-departmental cooperation, planning for change and the difference between vicious and virtuous circles.
European Tax Awards 2015

The Grosvenor House Hotel on London’s Park Lane was the new venue for the 11th annual European Tax Awards dinner on May 21.
Argentina: New Argentina-Chile tax treaty creates fresh structuring opportunities
Australia: Australian Budget measures receive royal assent
Bulgaria: The alternative choice for tax planning
Canada: CRA GAAR committee documents compelled – Superior Plus Corp v the Queen
Chile: Transitory regime for goods and income located or perceived abroad
Chile: New instructions regarding provisional withholding on capital gains
China: Implementation guidance issued for Announcement 7 indirect transfers
EU: ‘Tax Transparency Package 2.0’: New EU action plan for fundamental reforms of business taxation in the EU
Germany: Federal Tax Court rules CFC income is not subject to trade tax
Hong Kong: Hong Kong moves towards a favourable Treasury regime
Luxembourg: Luxembourg starts ratification process of four new tax treaties and six amending protocols
Malta: Aviation transactions benefit from Malta tax regime
Middle East: The impact of FATCA on financial institutions in the GCC

With the US Foreign Account Tax Compliance Act (FATCA) reporting deadlines approaching, foreign financial institutions (FFIs) should ensure they understand the impact of FATCA in their organisation and the compliance requirements they are subject to under the intergovernmental agreement (IGA), signed or agreed in substance, between the US and several countries in the GCC including: the Kingdom of Saudi Arabia (KSA), United Arab Emirates, Kuwait, Qatar, and Bahrain.
Montenegro: New incentive related to cinematography law in Montenegro
New Zealand: Government announces measures for taxing gains from sales of residential property
New Zealand: New director requirements and disclosure obligations for New Zealand companies
Poland: Changes to the Polish VAT law
Russia: New Russian transfer pricing rules for corresponding adjustments
Spain: Spain set to introduce modifications to transfer pricing reporting requirements
Switzerland: Revised draft legislation on Corporate Tax Reform III introduced into parliament
US Outbound: Final anti-inversion regulations retain bright-line substantial business activities test
Oregon takes new route on fuel tax, but is it miles too far?
Blueberries: A Maine source of tax revenue
Lack of transfer transparency at Barcelona continues to attract taxman’s interest
Quotes of the month