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A lack of international consensus on the treatment of liquidity buffers, required under Basel III, is leaving banks exposed to the risk of double taxation.

Becoming embroiled in a Colombian tax dispute is a lengthy and costly business because the tax authorities are banned from settling disputes, meaning taxpayers are forced into litigation. But there are some options for taxpayers, including a respite period under the recently enacted Tax Reform Act 2012.

The Australian Taxation Office’s (ATO) response to the High Court’s judgment in the Mills case, where the taxpayer escaped the general anti-avoidance rule (GAAR), shows an acceptance the ruling is not limited to tier one capital raising by banks. The response could also help taxpayers outlining GAAR defences in future litigation.

Scott Wilkie and Janice McCart, of Blake, Cassels & Graydon, explain how multinationals can prepare for risk-based assessments in Canada and abroad by proving the terms of related-party contracts match the substance of their relationships with those entities.

Ana Lucía Ferreyra, of Teijeiro y Ballone, explains why Argentine taxpayers must be ready to cope with increasingly sophisticated challenges from the authorities over transfer pricing and tax treaty benefits if they want to ensure better outcomes in tax disputes.

The European Court of Justice (ECJ) has ruled that the supply of services for a leased asset and the supply of the leasing services themselves must be regarded as distinct and independent supplies of services for VAT purposes in a case involving BGZ Leasing.

A Portuguese arbitration court (Tribunal Arbitral) denied the tax authority’s transfer pricing challenge of a multinational’s cash pooling arrangement because its use of the comparable uncontrolled price (CUP) method was inappropriate. The case should alert Portuguese taxpayers to review the arm’s-length nature of their cash pooling arrangements.

In a recent decision, the Supreme Federal Court of Brazil, which has jurisdiction over constitutional issues, acknowledged the need to examine whether the Brazilian Federal Constitution was violated by decisions of the Superior Court of Justice regarding Decision No. 106 to rule that the applicable statute of limitations will be tolled for purposes of tax debts, and therefore the right of Brazil’s tax authorities to make tax assessments will be maintained, where a matter is not adjudicated because of delays by the Judiciary.

WTP Advisors has entered four new affiliations in Europe and the Americas, with tax advisory firms in Bulgaria, Cyprus, Mexico and Sweden signing up to become part of the WTP Advisors Alliance of Global Affiliates.

The OECD has released draft guidelines for VAT and GST clarifying the tax location for services and intangibles purchased for use by multiple entities within a group.