Search results for

Companies, including those in the private equity sector, should consider the relevance of the PPT to their business operating models in the post-BEPS environment.

Bela Sheth Mao and Parul Anand of Deloitte India explore the anti-profiteering provisions in India’s GST law and make suggestions as to how businesses should deal with its effects.

Tax incentives and tax relief for special geographical areas in Croatia are regulated by myriad acts and ordinances that are constantly changing and adjusting to the demands of the acquis communautaire. Whereas previously such relief was structured and destined for free trade areas, highlands and areas of special state care, now it is being categorised as a state incentive, subject to EU standards and requirements. The entrepreneurs who are conducting their business activities in the city of Vukovar or the so-called assisted areas (classified as 'Group 1' under the development index) are thus exempt from the payment of corporate income tax or – in the case of craftsmen or self-employed free professionals – personal income tax. Details and conditions for applying for such exemptions are elaborated further in the text.

The Minister of Finance (MoF) issued MoF Regulation No. 35/PMK.010/2018 of 2018 concerning Granting of Corporate Income Tax Allowance (MoF Regulation 35) on April 4 2018, which replaced the old regulations issued in 2015 and 2016 stipulating the same. In general, MoF Regulation 35 provides terms that are arguably more beneficial to corporate taxpayers as compared to those under the old regulations. Note that 'corporate taxpayers' herein refers only to those making new investments in pioneer industries.

Over the past decade, permanent establishments (PE) have emerged as one of the hottest topics of dispute during tax inspections in Italy and have also frequently been the subject of contention in the context of tax courts. This has applied especially in relation to the way foreign companies have opted to use the structure to set up their businesses in Italy (the so-called 'undisclosed PE'). And considering the operational impact that a PE risk may trigger, it has become even more crucial to evaluate the possible consequences on the supply chains of the new definitions and concepts brought about by the OECD's work in relation to the BEPS project (in particular, Action 7: Preventing the Artificial Avoidance of Permanent Establishment Status).

Under existing rules, foreign accrual property income (FAPI) earned by a controlled foreign affiliate (CFA) of a Canadian resident taxpayer generally will be taxed in the taxpayer's hands in the year it is earned, regardless of whether such earnings are distributed to the Canadian resident. Foreign accrual property income includes passive investment income and certain other stipulated amounts. This tax treatment is intended to prevent Canadian residents from earning passive income through an offshore subsidiary in a low tax jurisdiction while deferring the income recognition for Canadian purposes until distributions are made. If FAPI is earned in a foreign affiliate of a Canadian resident taxpayer and that affiliate is not a CFA, the earnings may not be subject to Canadian tax until distributed to the Canadian taxpayer.

In a widely anticipated and important announcement, on March 27 2018, the Australian Treasurer, Scott Morrison, outlined a range of integrity measures to: (i) Tighten the rules on stapled structures; (ii) Limit certain tax concessions for foreign pension funds and foreign governments (including sovereign wealth funds); and (iii) Restrict thin capitalisation.

Mike Bernard, former Microsoft tax counsel, talks to ITR about his experience at Microsoft, how the tax department functioned, and how he will help MNEs use data to be audit-ready in his new role at Vertex.

The US Tax Cuts and Jobs Act and other countries’ responses to it, the BEPS project, various exchange of information agreements, incoming tax treaty changes and national elections are just a few of the obstacles ensuring that tax professionals have plenty of planning on their plates in 2018.

The way tax planning is being done has been transformed for taxpayers and their advisers. Joe Stanley-Smith looks at how corporations across the EMEA region are restructuring to reduce the tax risks.