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With transfer pricing rules only introduced in 2005, Ecuador is still feeling its way through the implications. Diego González-Béndiksen and Diego Almeida talk through what taxpayers can and cannot do under the fledgling laws.

Augusto Martín Camarero and Armando Cabrera describe the way Argentine transfer pricing rules still fall behind more developed tax codes. The lack of advance pricing agreements and quasi acceptance of secret comparables cause problems.

Over the last decade, Latin America has shown economic growth, commercial development and financial stability. Additionally, countries throughout the region have modified their regulations, implementing internationally accepted rules. Emerging economies in this region have been attracting foreign direct investment as never before, and Latin American corporations are nowadays renowned worldwide for their presence in different markets and for carrying out intercompany transactions that increase as globalisation does.

Simone Dias Musa, Clarissa Machado and Camilla Lagrasta explain how not following the OECD guidelines makes the Brazilian rules difficult to follow. With fixed margins regardless of industry and new thin capitalization rules, taxpayers need to be aware of the complex legislation.

capital gains tax; revaluation of assets and declaration of dividend; tax benefit; form and substance

Rajendra Nayak Ganesh Pai The Mumbai Tribunal in the case of Airlines Rotables Ltd, UK, the taxpayer, adjudicated on the issue of whether maintenance of stock of goods, belonging to the taxpayer, by its Indian customer results in the taxpayer having a permanent establishment (PE) in India, under the India UK tax treaty. The taxpayer a UK company, entered into an agreement with an Indian aircraft operator, the customer, for providing certain support services for the customer's aircraft. The agreement required the taxpayer to repair the component when it became operationally unserviceable and to replace the component during the interim period. To ensure adequate availability of the components, the taxpayer maintained stock of such replacement components at the operational bases of the customer in India, as well as in the UK at the taxpayer's main depot. The customer held the component stock only as a bailee (delivery of goods without transfer of ownership) at all times. The issue in dispute was whether the maintenance of the component stock constitutes a PE of the taxpayer in India under the UK treaty. Under the UK Treaty, a PE can be constituted, among other things, through a fixed place of business where the business of the foreign enterprise is wholly or partly carried on (Basic Rule) or through a dependent agent acting on behalf of the foreign enterprise in India, maintaining a stock of goods from which he regularly delivers on behalf of the foreign enterprise (Agency Rule).

Janne Juusela The Finnish government issued a Bill to the Parliament on April 9 2010 proposing a new Act on Personnel Funds (HE 44/2010). The aim is to make personnel funds as a means of rewarding employees more attractive to both employers and employees, and thereby increase employee participation in company profits. The new Act is proposed to enter into force on January 1 2011.

Andrés Edelstein Ignacio Rodríguez The Supreme Court of Justice issued an unpredictable opinion in mid-June in the Hermitage case questioning the constitutionality of the Argentine Minimum Notional Income Tax (MNIT).

The value added tax travel service margin scheme involves complex issues that concern businesses of all types, Stephen Dale of Landwell & Associés investigates the progress being made and how Europe might better develop the legal framework in this area.

Tax executives are being placed under extra pressure. Their busy times are no longer just at year end, they are all year round. This is where external advisers step in to reduce the workload. Jack Grocott analyses the results of the Asia-Pacific Client Services Poll 2010 and investigates the problems executives are facing and how advisers can help.