Search results for

Sean Foley The US Treasury Department and the IRS have released final regulations (T.D. 9315) concerning dual consolidated losses (DCLs) under section 1503(d) of the Internal Revenue Code. The final regulations address various DCL issues, including exceptions to the general prohibition against using a DCL to reduce the taxable income of any other member of the affiliated group. The regulations are intended to prohibit a US corporation from taking a deduction for U.S. tax purposes if that same deduction could be used to offset income in a foreign country. The regulations were issued to update the prior regulations to reflect changes in US and foreign law. The regulations:

Kevin Rowe Edward Tanenbaum Treasury and IRS have finalised regulations under section 871(h) that apply an aggregate concept to determine whether US source interest received by a partnership is "portfolio interest" exempt from withholding tax. The final regulations adopt the aggregate approach and may apply retroactively to interest paid in prior years.

Castor Garate Biscay enjoys a considerable degree of autonomy in tax matters, including tax legislation. This power was recently confirmed by the reasoning of the European Court of Justice (ECJ). Biscay is an infra-state body which has, from a constitutional point of view, a political and financial status separate from the central government within the meaning of the ECJ's judgement of September 6 2006, Portuguese Republic vs. Commission of the European Communities (case C-88/03).

Pursuant to Taiwan tax laws and regulations, dividends received by international investors are subject to a 20% withholding tax at the time of remittance by Taiwanese investee/issuing companies. The said withholding tax rate on dividends may be reduced (for example from 20% to 10%) if the beneficial owners of the dividend income are from countries that have executed DTAs with Taiwan.

Henry An Jin-Young Lee On March 21 2007, the Ministry of Finance & Economy (MOFE) had its first public tax dialogue with foreign investors to share information about tax developments and respond to concerns. Some of the highlights of the meeting include:

Nélio B. Weiss Philippe Jeffrey On March 1 2007 the Brazilian tax authorities issued the Interpretation Declaratory Act number 1 (ADI 1) (which is an official interpretation from the Brazilian tax authorities), setting forth their understanding in connection with payments of royalties and technical service fees made under the Brazil-Mexico Convention for the Avoidance of Double Taxation.

The Joint International Tax Shelter Information Centre (JITSIC) will open a second office - in London - in the autumn of this year. JITSIC coordinates efforts by national revenue authorities to track down perceived tax international abuses. This is a key part of a wider strategic development plan to accelerate the scope and effectiveness of the centre.

In the second installment of a series dealing with the coordination of head office service charges between a US parent company (US HQ) and certain related parties, KPMG partners Erik Skarstad, Howard Moyes and Burcin Kasapoglu look at a case study.

India will need to change its international tax regime if it accepts an offer from the Organisation for Economic Cooperation and Development (OECD) to become a member.

Montserrat Trape KPMG's global transfer pricing services practice has appointed Montserrat Trapé (left) as a director working in the Spanish member firm.