Magazine
April 2010

Magazine Archive

Supreme Court re-enters anti-avoidance arena

For Canadian taxpayers and tax professionals, the general anti-avoidance rule, or GAAR, is synonymous with uncertainty. A new Supreme Court case will address some of the inconsistencies that have developed in the 18 years since the country enacted it. Erin Kelechava speaks to lawyers and the Canadian Revenue Agency about the court cases that have developed the doctrine and where they think the interpretation of GAAR is headed.

China adjusts rules for foreign investors
Russia proposes incentives for innovative companies
Bipartisan tax reform fails to win consensus
Philippines Supreme Court deems government measures constitutional
Ecuador may cut rate to generate investment
UK Revenue takes latest round of FII litigation
India fails to meet GST deadline
Revenue authorities pressure UBS to reveal more information
Government takes step to improve Australian certainty
A time for tax transparency and clarity

Enhanced tax information exchange and greater offshore compliance was the biggest outcome of the G20 summit of world leaders last April in London. The subsequent 12 months saw increased tax cooperation between governments and hundreds of international information exchange agreements signed. Jack Grocott discovers what all this means for multinational companies.
Is the X Holding judgment off the Marks?

A European Court of Justice ruling has tax advisers debating if it diverges from the Marks & Spencer, a key judgment that also tackled whether a subsidiary's losses can be used to offset a parent company's profit in another member state. Esther Martin reports
Legal reforms grab taxpayers' attention after budget

The interest for taxpayers in this year's Indian budget came in the proposals to amend existing legislation, such as source rules for non-residents and the tax treatment of a conversion into a limited liability partnership, reveal Vispi Patel and Rajesh Athavale of Vispi T Patel & Associates, Chartered Accountants
Tax reclaims could be over soon for portfolio investors

The OECD has released a draft implementation package that provides for a streamlined withholding tax relief process. This package is likely to be influential in terms of how countries modernise the cross-border withholding tax relief process. It may result in the holy grail of tax relief at source through standardised documentation and electronic filing to be realised.
Authorities up the pressure on fraudsters

If enacted, amendments to Spanish law will increase the penalties for tax fraud, such as a longer prison term and direct liability for companies, and give the tax authorities more time to investigate cases. However, the changes will also add uncertainty for taxpayers, explain Oscar Morales and Manuel Álvarez of Uría Menéndez
Britain catches up in holding company stakes

Careful study shows that the UK has a lot of advantages as a holding company location, such as favourable withholding tax rules. At the same time, it has its complexities, which also need to be understood, explain Stephen Hales and Alistair Craig of Ernst & Young
Reducing negative effects of new thin cap rules
Bulgarian Corporate Income Tax Act amended
Doubts cast on use of LLCs for investment purposes
Favourable ruling on loans to Russian companies
EU tax commissioner unveils work programme
Auditors attack tax groups
Ruling on levy of capital gains tax
Ireland competes for investment with improved dividend regime
Legal change will have negative impact on Japanese real estate taxation
Update to VAT legislation
Supply of services outside of Mauritius is zero rated

On February 18 2010, in the case "The Director, Mauritius Revenue Authority v Mega Design Limited", the Supreme Court of Mauritius reaffirmed that where supply of services are made to a person outside Mauritius according to paragraph 6 of the fifth schedule of the Value Added Tax Act (VAT Act), these services would be treated as zero-rated.
Exchange of information – Mexico and Bahamas
Montenegro and Malta tax treaty
First treaty and protocol signed with Spain
2010 budget highlights

South Africa's budget speech on February 17 set out various tax proposals. Some of these are highlighted below.
New treaties with Germany, UK and US in the pipeline
Tax implications for satellite services
A corporate tax exemption is back in Turkey
State Administration revisits legislation: are gross-up clauses in danger?
Temporary regulations address avoidance of section 304
IRS proposes reporting requirement for uncertain tax positions
Alvarez & Marsal Taxand hires employment specialist
FTI Consulting hires former Treasury adviser
O'Melveny & Myers appoints new head of tax
Former DLA Piper lawyer founds new firm
Osborne Clarke hires Cologne partner
Lisbon Trade Association names new tax chairman
KPMG hires new principal for financial services practice
Ernst & Young bulks up controversy group
Officials keep anti-avoidance going
No time to talk tax

A monthly commentary on the notable facts, figures and goings-on in the tax world.