Search results for

The European Commission has released a preliminary view that an advance agreement struck between Starbucks and the Dutch government constitutes state aid.

Procter & Gamble (P&G) has resumed operations in Argentina after an eight-day suspension over allegations of tax fraud.

One business day before the opening of the Shanghai-Hong Kong Stock Connect, China’s Ministry of Finance formally announced that profits made on transactions over the connect will be temporarily exempt from capital gains tax. The introduction of the connect is the first time that individuals and small to medium investors will be able to access the Chinese stock market.

Tax firm Ryan is to acquire independent North American tax practice WTP Advisors. It is expected to complete the transaction by the end of November.

New Zealand has had a general anti-avoidance rule (GAAR) since income tax was first introduced in 1891. But in the past decade, changes in Inland Revenue practice and judicial attitudes have seen the GAAR, which was previously considered applicable only to highly artificial tax avoidance schemes, become probably the most broadly applied GAAR of any country in the world. Russell McVeagh’s Tim Stewart tracks this trend.

The US Supreme Court is mulling over whether or not to hear WorldCom Inc v. Internal Revenue Service (13-1269), a case that holds the now-obsolete WorldCom (Verizon Communications) liable for millions in excise taxes for its telecommunications services.

Myranda Chatzimatthaiou

Christof Letzgus On June 12 2014, the ECJ issued a ruling in three joined cases on the Dutch fiscal unity regime. It held that the legislation allowing members of a tax group to consolidate their results must include local sub-subsidiaries of non-resident intermediate parents (vertical relief) as well as associated companies held by a common parent in another member state (horizontal relief). The cases did not deal with the use of final losses, and the taxpayers did not seek cross-border loss relief but only the consolidation of profits and losses between Dutch corporations.

Bob van der Made The EU's Code of Conduct Group for business taxation is reviewing the existing intellectual property (IP) regimes in nine EU member states from a harmful tax practices viewpoint, particularly with regard to the point of substantial economic activity in the member state that grants the relief (the third criterion of the Code Group). At the request of the ECOFIN Council of June 20 2014, the Code Group continues to analyse the third criterion and assess or consider all existing patent boxes in the EU, including those already assessed or considered before, by the end of 2014 "against the background of international developments" including the OECD's BEPS initiative. The European Commission, which assists the work of the Code Group, meanwhile has gathered information already under EU state aid law with respect to one member state and written informally to others. The OECD has started looking into harmful tax practices again under BEPS Action 5 as well, and the Code Group is now looking to fall in behind the OECD work on the same topic, where possible.

Ayesha Lau