Search results for

The Argentine tax authorities have modernised their approach to transfer pricing in recent years, explain Augusto Martin Camarero and Armando Cabrera

Gary Gowrea In July 2009, the Supreme Court of Mauritius (court) had to decide on the constitutionality of section 131A(2)(b) of the Income Tax Act 1995 (Act), in relation to the payment of 30% of the amount of income tax claimed as a monetary pre-condition imposed on the taxpayer wishing to appeal against the notice of assessment drawn up by the Mauritius Revenue Authority. Such an assessment is made whereby the director-general is of the opinion that the return submitted by the taxpayer fails to comply with the Act or that there is reason to believe that there is tax evasion. On receipt of a notice of assessment, the taxpayer may object to the assessment and appeal to the director-general.

Nicolas Jacquot Following a request by French president Nicolas Sarkozy to examine the idea of a national carbon tax, a panel led by ex-prime minister Michel Rocard issued its report on July 28 recommending that France introduce a national carbon tax in 2010. Although many questions are yet to be resolved, the political will for its implementation is serious.

Bryan Bailey Jesse Brodlieb On December 15 2008, the 5th protocol to amend the Canada-US income tax treaty entered into force. The protocol contained a number of significant amendments to the treaty that affect the taxation of cross-border payments and eligibility of residents for treaty benefits. In particular, the protocol introduced a comprehensive limitation on benefits (LOB) rule applicable to US residents, as well as a rule which provides for the look-through of certain fiscally transparent entities (FTEs) (like US limited liability companies) when determining eligibility for treaty benefits. One practical difficulty arising from the protocol is how Canadian residents will know whether to apply treaty rates of withholding when making payments to US persons (including FTEs) in light of the LOB rules. Canada does not have a formal treaty benefit certification process to assist Canadian payors, unlike the W-8 BEN form requirements in the US.

By Ralph Cunningham

Hatasakdi Na Pombejra Thailand has tax incentives on debt restructuring for a transaction done before December 31 2009. There is an issue with what type of debt restructuring qualifies for the tax incentives. The Revenue Department by its notification of May 29 2009 seems to nail down the non-performing loan (NPL) issue only, for example default from three months onwards. Financial institutions would normally want to do the debt restructuring before the NPL to make its financial status better. Taking into account the requirement of the Revenue Department, any debt restructuring before NPL will not be entitled to the tax incentive.

Deloitte in Australia has appointed Rodger Muir as an indirect tax partner in the firm's Sydney office. Muir joins from Ernst & Young Australia and has experience with both Australian and New Zealand indirect tax markets. Muir will take up his position on August 24.

DLA Piper has appointed two KPMG economists to join its Amsterdam office as transfer pricing specialists. Ágata Uceda joins from KPMG where she worked for eight years, advising multinationals on the management, design and implementation of their transfer pricing policies. She has experience in all aspects of transfer pricing planning, dispute resolution and compliance, and has managed a wide range of assignments covering economic, management and fiscal aspects of transfer pricing.

Fiona Walkinshaw Fiona Walkinshaw is leaving the Reynolds Porter Chamberlain law firm in London to join Deloitte as a partner. She will head a new direct tax litigation practice in the UK for the firm. She takes up her new role on September 14.

Edward Tanenbaum Treasury and the Internal Revenue Service (IRS) have issued revised temporary regulations under Internal Revenue Code section 7874 concerning the determination of whether a foreign corporation is treated as a surrogate foreign corporation.