Search results for

Edward Tanenbaum Diana Wessells On December 24 2007, the IRS published guidance on what is commonly referred to as the anti-stuffing rule under the section 367(a) Treasury regulations (see chief counsel advice 200751024). The IRS has provided little in terms of substantive guidance on the anti-stuffing rule since its effective date more than 10 years ago. The chief counsel advice now provides some helpful content to the rule, but also raises some uncertainties.

Svetlana Stroykova Ilarion Lemetyuynen In the March 2007 issue of International Tax Review we wrote that new Russian transfer pricing rules were expected to be enacted in the near future and described the key provisions of the draft transfer pricing law developed by the Russian Ministry of Finance.

Carl Pihlgren Sara Bolmstrand In January 2007 the Swedish Tax Agency published a new statement as regards interest deductions. The Tax Agency claimed that the Swedish Tax Evasion Act should be applicable in internal reorganisations that included a debt push down into a Swedish company, having the effect that the interest on such a loan should not be deductible. The Tax Agency's argument was that no other business reason existed to support the transaction, except for achieving a tax advantage. In addition, the Agency argued that since no need for financing existed the interest payments should therefore be classified as group contributions which are not deductible, if paid to a recipient abroad not having a permanent establishment in Sweden. In the statement the Tax Agency explicitly stated that it would not challenge debt introduced in relation to third party acquisitions. It should also be noted that the example mentioned by the Tax Agency regarded a payment of interest to a tax haven company.

Peter Dachs A court case handed down late last year dealing with interest free loans has been the cause of much discussion in South Africa.

Alex Milcev Adrian Rus The general transfer pricing principles were adopted in Romania in 1994, although it was only with the introduction of the Fiscal Code in 2004 that proper and more specific OECD-based transfer pricing rules appeared. Consequently, the legislation and its implementation are still at early stages though awareness is increasing.

Luis Viñuales The bubble of the Spanish real estate market seems to have burst and real estate companies may need to look to business reorganisations and joint ventures. The merger of two real estate companies raises some particular tax issues that have been addressed in decisions of the Central Economic-Administrative Tribunal (TEAC) of March 2 and May 4 2007.

Sean Foley On December 28 2007, the US exchanged instruments of ratification relating to the new protocols to the US-Germany, US-Denmark, and US-Finland income tax treaties, as well as a new US-Belgium income tax treaty. These protocols and the new treaty entered into force on that date. See US Treasury department release hp-753 (January 2 2008), available at: http://www.treas.gov/press/releases/hp753.htm (last visited January 11 2008).

Speciality international pharmaceutical company concludes advance pricing agreement for 2006-2010

Ramón López de Haro and Javier Montes Urdín of TP Week correspondent firm Garrigues argue that new rules will make APAs more popular

TP Week correspondent Machados explains why the easiest transfer pricing method is not always the best approach