UK’s ‘Diverted Profits Tax’ proposes a 25% tax rate for taxpayers but leaves open questions
Background On 10 December 2014 HM Revenue & Customs (HMRC) released the diverted profits tax (DPT) provisions within its draft Finance Bill 2015. Upon initial review, the new rules could affect many more companies than one might have anticipated. Scope The DPT is a new tax, with a 25% rate on profits that are considered
Belgian reporting obligation for payments to tax havens
Belgian requirements for payments to ‘tax havens’ As from 1 January 2010, companies subject to Belgian corporate income tax or Belgian non-resident corporate income tax are obliged to declare direct or indirect payments exceeding EUR 100,000 to recipients established in so-called ‘tax havens’. The reporting obligation applies to both cash payments and payments in kind.
OECD publishes PE discussion draft (artificial avoidance)
The OECD has published its discussion draft on the Preventing of Artificial Avoidance of permanent establishment (PE) Status. This publication follows the BEPS (Base Erosion and Profit Shifting) timeline. A fundamental change to the existing PE rules, with a potentially wide impact on many structures currently in use by MNCs, are proposed in the OECD
Exposure Draft: Recognition of DTA for Unrealised Losses (IFRS)
The IASB has proposed amendments to IAS 12 on deferred tax asset recognition for debt instruments measured at fair value. The exposure draft also suggests a new illustrative example. The comment period ends on 18 December 2014. The exposure draft proposes to clarify the following: unrealised losses on debt instruments measured at fair value and
European Commission explains State aid investigations in Ireland and Luxembourg
On 30 September 2014 the European Commission published its opening decisions in the formal investigations into transfer pricing agreements between Apple and, allegedly, Fiat and – respectively – Ireland and Luxembourg. The European Commission had already communicated these investigations through a press release issued on 11 June 2014. The current decisions explain the reason for
OECD Report on Action 6 – Treaty Abuse
The OECD published a discussion draft in March 2014 on proposals for addressing perceived abuse of tax treaties. The draft recommended extensive changes to the OECD Model Treaty together with suggested domestic law provisions targeted at treaty abuse or abuse of domestic law where the abuse involves application of treaty benefits. It also proposed a
OECD guidance on Transfer Pricing Aspects of Intangibles: Revised Chapters I, II and VI of the OECD Transfer Pricing Guidelines
On 16 September 2014, the OECD published its final and interim revisions in relation to Chapters I, II and VI of the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. These revisions have been developed in connection with Action 8 of the Action Plan on Base Erosion and Profit Shifting that is focused
EU case law – Discriminatory tax treatment of foreign real estate income
According to Belgian income tax legislation, individuals who own a (secondary) house or apartment in Belgium (i.e. a built property other than their own dwelling) and who do not let out this property, are taxable on the indexed deemed rental income of the property (also known as “kadastraal inkomen” / “revenu cadastral”, which is significantly
