tag:blogger.com,1999:blog-51826769169817595292024-03-07T22:07:05.623-08:00Dirk De Wolf - AuthorAnonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.comBlogger26125tag:blogger.com,1999:blog-5182676916981759529.post-61272970237089246642017-05-20T01:33:00.002-07:002017-05-20T01:33:52.677-07:00Transfer of Registered Office <span style="font-family: calibri;"><div>
<div style="margin: 0px 0px 13px; text-align: justify;">
<span lang="EN-GB" style="margin: 0px;">If emigration taxes imposed by a country have as only purpose to compensate for
the awarded benefit, there is in principle little that can be done against
this. This is certainly justified. But, in practice, we will often notice that
emigration taxes go one or two steps further than this and in such event a
discussion on their validity may arise. </span></div>
<div style="margin: 0px 0px 13px; text-align: justify;">
<span lang="EN-GB" style="margin: 0px;">Obviously, even
the smallest emigration tax will have a dissuasive effect on the company that
is subject to the tax. Even if a compensation is charged for the benefits
awarded in the past to these companies, we will see that this puts a brake on
international transfers of registered offices. </span></div>
<div style="margin: 0px 0px 13px; text-align: justify;">
<span lang="EN-GB" style="margin: 0px;">It is a very
thin line between what in case law and literature is considered as a correct or
excessive compensation. </span></div>
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</span><div>
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<span style="font-family: calibri;"><br /></span></div>
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<span style="font-family: calibri;">Link: <a href="https://www.linkedin.com/pulse/fiscal-consequences-transfer-registered-office-another-dirk-de-wolf?trk=v-feed&lipi=urn%3Ali%3Apage%3Ad_flagship3_profile_view_base_recent_activity_details_all%3BJXjBvUi09QeLIC8GXTM2ZA%3D%3D" target="_blank">Fiscal consequences of transfer of registered office to another country</a> </span></div>
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Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com0tag:blogger.com,1999:blog-5182676916981759529.post-53328946700809630192016-11-20T01:45:00.000-08:002017-06-11T02:12:24.222-07:00Transfer Pricing Aspects of BEPS <div style="text-align: justify;">
<span style="font-family: "calibri";"><b>Transfer pricing is hot. The globalisation and also the rise of multinational enterprises make transfer pricing one of the most important themes on international taxes. Transfer pricing is moreover a key focus of the OECD’s Base Erosion & Profit Shifting (BEPS) project.</b></span></div>
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<span style="font-family: "calibri";"><br /></span>
<span style="font-family: "calibri";">In the future, there will be far more emphasis on the substance and the economic behaviour underpinning the transaction in the context of the entire value chain, as opposed to the contractual analysis. The finalised guidelines, which provide for increased levels of TP documentation, will also result in unprecedented levels of transparency.</span><br />
<span style="font-family: "calibri";"><br />Overall, it is clear that the BEPS initiative is one of the biggest game-changers in international tax policy in living memory. The impact of the Action Plan will fundamentally change the way multinational organisations engage in international business, related-party dealings and business restructurings in the future.<br />
<br />
SlideShare Presentation: <a href="http://www.slideshare.net/DirkDeWolf/transfer-pricing-and-beps" target="_blank">Transfer Pricing and BEPS</a><br /><br />
</span></div>
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<b></b><i></i><u></u><sub></sub><sup></sup><strike></strike><br /></div>
Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com0tag:blogger.com,1999:blog-5182676916981759529.post-47761993759984163202016-08-28T08:18:00.000-07:002017-06-11T02:12:06.998-07:00Transfer pricing policy assessment<div style="text-align: justify;">
<span style="font-family: "calibri";"><b>Transfer pricing is a key focus of the OECD’s Base Erosion & Profit Shifting (BEPS) project and has been publicly described as a device that may be used by multinational companies and their advisers to avoid paying taxes.</b></span></div>
<div style="text-align: justify;">
<span style="font-family: "calibri";"><br /></span></div>
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<span style="font-family: "calibri";">In general, it is important that companies regularly confirm their transfer pricing policies comply with applicable laws and regulations in form and substance, and even more so now, as we enter this period of enhanced scrutiny of transfer pricing.</span></div>
<div style="text-align: justify;">
<span style="font-family: "calibri";"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: "calibri";">• Transfer pricing policies: Where are the potentially most vulnerable points (e.g., continuing losses, valuation of transferred intellectual property)?<br />
• Operating structures: Does income reflect economic activity (e.g., use and exploitation of intangibles)?<br />
• International financing and organizational structures: Are the structures sustainable in light of BEPS?<br />
<br />
Failure to achieve intended transfer pricing results can also lead to unwanted scrutiny by tax authorities in the context of BEPS. As a result, it is important that your company determine it has appropriate, Operational Transfer Pricing (OTP)-related controls and infrastructure (i.e., resources and enabling technologies) in place to help manage the intercompany process effectively. <br /><br />
</span></div>
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Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com0tag:blogger.com,1999:blog-5182676916981759529.post-20919968137667769892016-07-30T01:08:00.000-07:002016-07-30T01:08:10.240-07:00State aid: Belgian Carat Tax <div style="text-align: justify;">
<span style="font-family: calibri;">Companies in Belgium are subject to a 33.99% tax on profit, meaning companies in competing diamond centres such as Dubai or Hong Kong, taxed at 16.5%, are biting at their heels. After years of discussion between the Antwerp diamond industry and the Belgian Government, in 2015 it was decided to introduce the "Diamond Regime" tax system, pending European Commission approval.</span></div>
<div style="text-align: justify;">
<span style="font-family: calibri;"><br /></span>
<span style="font-family: calibri;">On 29 July 2016, the European Commission announced that the fiscal regime does not constitute State aid, and gave the green light for the "Carat Tax". Implementation of this new tax regime will put an end to complex discussions between the Antwerp diamond industry and tax authorities on the control and valuation of diamond traders' stock.</span><br />
<span style="font-family: calibri;"><br /></span>
<span style="font-family: calibri;">More information:</span><br />
<span style="font-family: calibri;"><br /></span>
<span style="font-family: calibri;"><a href="https://www.linkedin.com/pulse/state-aid-belgian-carat-tax-dirk-de-wolf?trk=hp-feed-article-title-publish" target="_blank">https://www.linkedin.com/pulse/state-aid-belgian-carat-tax-dirk-de-wolf?trk=hp-feed-article-title-publish</a></span><br />
<span style="font-family: calibri;"><br /></span></div>
<b></b><i></i><u></u><sub></sub><sup></sup><strike></strike><br />Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com0tag:blogger.com,1999:blog-5182676916981759529.post-85221286472743575422016-07-24T01:57:00.001-07:002016-07-24T01:57:34.518-07:00Belgium's excess profit tax ruling system<div style="text-align: justify;">
<span style="font-family: "calibri";">On 11 January 2016, the European Commission (EC) again used Tax State Aid arguments to combat tax planning by multinationals when it announced its final decision in the formal state aid investigation into the Belgian 'excess profit rulings'. Under the Belgian 'excess profit' tax scheme, applicable since 2005, multinationals are permitted in certain circumstances to write down their actual taxable profits by comparison with the hypothetical profit that a stand-alone company would have made in a comparable situation.</span><br />
<span style="font-family: "calibri";"><br /></span>
<span style="font-family: "calibri";">The EC concluded that the rulings only benefit multinational groups whilst Belgian companies only active in Belgium could not claim similar benefits. The rulings, therefore, represented a distortion of competition within the EU's Single Market. The EC also concluded that the 'excess profit rulings' constitute illegal state aid and estimated that Belgium needs to recover around 700 million Euro in total from at least 35 multinationals. </span><br />
<span style="font-family: "calibri";"><br /></span>
<span style="font-family: "calibri";">Belgium, other Member States, the beneficiaries of the 'excess profit rulings' or other parties who are directly and individually concerned by the decision may challenge it before the EU General Court under Article 263 of the TFEU. Belgium filed its appeal against the decision on 22 March 2016. </span><span style="font-family: "calibri";">In the action for annulment, the Belgian Government focused on a number of arguments, which encompass various pleas in law referring to the procedural aspects of the EC investigation and specific arguments given by the EC in the final Decision.</span><br />
<span style="font-family: Calibri;"><br /></span>
<span style="font-family: Calibri;">More information:</span><br />
<span style="font-family: Calibri;"><br /></span>
<span style="font-family: Calibri;"><a href="https://www.linkedin.com/pulse/state-aid-belgian-excess-profit-rulings-dirk-de-wolf?trk=hp-feed-article-title-publish">https://www.linkedin.com/pulse/state-aid-belgian-excess-profit-rulings-dirk-de-wolf?trk=hp-feed-article-title-publish</a></span><br />
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Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com0tag:blogger.com,1999:blog-5182676916981759529.post-75028138026738026382016-04-17T11:14:00.000-07:002016-04-17T11:14:03.664-07:00European Commission proposes public tax transparency rules for multinationals<div style="text-align: justify;">
<span style="font-family: calibri;"><b>On 12 April 2016, the European Commission (EC) introduced a legislative proposal on public reporting requirements for large multinational enterprises (MNEs), being multinational groups with a consolidated turnover exceeding 750 million EUR. The so-called Country-by-Country Reporting (CbCR) will force large multinational enterprises to publish country specific profits and tax payments.</b></span></div>
<div style="text-align: justify;">
<b><span style="font-family: calibri;"><br /></span></b></div>
<div style="text-align: justify;">
<span style="font-family: calibri;">The current efforts for changes in the EU tax policy are directly linked to the OECD project on Base Erosion and Profit Shifting (BEPS). Among the 15 action points of BEPS, transparency plays a central role. Action point 13 - 'Transfer Pricing Documentation and Country-by-Country Reporting' - addresses the issue of more transparency explicitly. A first step by the EC refers to the so-called "Anti-Tax Avoidance Package".</span></div>
<div style="text-align: justify;">
<span style="font-family: calibri;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: calibri;">In its Anti-Tax Avoidance Package, released in January 2016, the EC already indicated it was looking at the issue of public CbCR. The current legislative proposal to introduce public CbCR is published only a few weeks after the Council of the European Union reached political agreement on non-public CbCR to national tax authorities of the EU Member States. It is yet another EU initiative aimed at enhancing transparency and public scrutiny on corporate income tax affairs of MNEs.</span></div>
<div style="text-align: justify;">
<span style="font-family: calibri;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: calibri;">CbCR is seen as a powerful tool to fight profit shifting by MNEs. They shall be obliged to provide financial figures such as the net turnover (including that with related parties), profit/loss before tax and number of employees as well as the nature of the enterprise's activity, the amount of accumulated earnings and the current year corporate income tax <span style="font-family: calibri;">accrued and corporate income tax paid (differences between amounts of tax paid and tax accrued at group level must be explained). </span><span style="font-family: calibri;">However, for legal reasons the CbCR will be limited to EU countries while for the rest of the world only aggregated figures will be provided.</span></span></div>
<div style="text-align: justify;">
<span style="font-family: calibri;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: calibri;">The EC proposal goes further than OECD BEPS Action 13 requirements regarding the disclosure of information to tax authorities. This report must be published and made accessible on the corporate website in at least one of the official languages of the EU and filed with the appropriate business register.</span></div>
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<br />Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com0tag:blogger.com,1999:blog-5182676916981759529.post-6815571768487489502016-04-10T01:08:00.000-07:002016-04-10T01:08:13.915-07:00Neutralising the Effects of Hybrid Mismatch Arrangements <div style="text-align: justify;">
<span style="font-family: calibri;">The final report recommended that changes be made both to domestic law and the OECD Model Tax Convention in order to neutralize the effects of hybrid mismatch arrangements, which necessarily exploit differences in tax treatment of a single entity or instrument under the laws of two or more tax jurisdictions to achieve double non-taxation including long-term deferral.</span><br />
<span style="font-family: calibri;"><br /></span>
<span style="font-family: calibri;">Part 1 of the report for Action 2 basically recommends the linking of rules that align the tax treatment of an instrument or entity with the tax treatment in the counterparty jurisdiction but otherwise do not disturb commercial outcomes. Also, Part 2 aims to ensure that hybrid instruments and entities do not abuse the treaty benefits and will not prevent the application of the changes in domestic law as recommended in Part 1.</span><br />
<span style="font-family: calibri;"><br /></span>
<span style="font-family: calibri;"><a href="https://www.linkedin.com/pulse/beps-action-plan-2-hybrid-mismatch-arrangements-dirk-de-wolf?trk=hp-feed-article-title-publish">https://www.linkedin.com/pulse/beps-action-plan-2-hybrid-mismatch-arrangements-dirk-de-wolf?trk=hp-feed-article-title-publish</a></span><br />
<span style="font-family: calibri;"><br /></span>
<span style="font-family: calibri;">The Action Plan is clearly ambitious in scope and timing and some actions will be easier to implement than others, yet there is broad political support for at least some change to the international tax system.</span><br />
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Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com0tag:blogger.com,1999:blog-5182676916981759529.post-24639877998839772032016-03-13T01:05:00.001-08:002016-03-13T01:05:42.148-08:00ECOFIN reaches political agreement on CbCR<div style="text-align: justify;">
<strong><span style="font-family: Calibri;">On 8 March 2016, the Council of the European Union (ECOFIN) reached a political agreement on the European Commission's proposal to implement country-by-country reporting (CbCR) to local tax administration, as well as the exchange of the reports between them.</span></strong></div>
<strong><span style="font-family: Calibri;"></span></strong><br />
<div style="text-align: justify;">
<span style="font-family: Calibri;">The agreement is, however, still subject to the scrutiny of the UK parliament. This is a first step towards adoption of the European Commission's proposal, which was included in its Anti-Tax Avoidance Package published on 28 January 2016.</span></div>
<div style="text-align: justify;">
<span style="font-family: Calibri;"></span> </div>
<div style="text-align: justify;">
<a href="http://dirkdewolf.blogspot.be/2016/02/launch-of-anti-tax-avoidance-package.html">http://dirkdewolf.blogspot.be/2016/02/launch-of-anti-tax-avoidance-package.html</a></div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
<span style="font-family: Calibri;">The agreement entails the mandatory exchange of tax-related financial information rules which will apply to multinational companies operating cross-border in the European Union. After the implementation, all Member States will have all the necessary financial information in order to protect their tax bases by addressing the companies that try to avoid paying their so-called 'fair share' of taxes in the country where their profits originate from.</span></div>
<div style="text-align: justify;">
<span style="font-family: Calibri;"></span> </div>
<div style="text-align: justify;">
<a href="http://europa.eu/rapid/press-release_IP-16-663_en.htm">http://europa.eu/rapid/press-release_IP-16-663_en.htm</a></div>
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<div style="text-align: justify;">
<span style="font-family: Calibri;">The CbCR rules are seen as a necessary complement to the OECD guidelines on BEPS.</span></div>
Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com0tag:blogger.com,1999:blog-5182676916981759529.post-65528028327464281462016-02-18T10:49:00.001-08:002017-06-11T02:11:18.581-07:00Treaty shopping and BEPS action 6<div style="text-align: justify;">
<strong><span style="font-family: "calibri";">Action 6 (Treaty Abuse) is a key element of the OECD's BEPS Project. Action 6 handles treaty abuse, and in particular, Treaty Shopping, which allegedly is one of the most important BEPS Action plan concerns.</span></strong></div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
<span style="font-family: "calibri";"><strong>What is the OECD trying to achieve?</strong></span></div>
<strong><span style="font-family: "calibri";"></span></strong><br />
<div style="text-align: justify;">
<span style="font-family: "calibri";">Double taxation treaties are agreements between two countries that aim to eliminate the double taxation of income which would otherwise be taxable in both countries under their domestic tax rules. The OECD is concerned that multinational groups may be structuring transactions to take advantage of more favourable treaties (treaty shopping) and/or engaging in tax planning arrangements using treaties in such a way they may result in double non-taxation. </span></div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
<span style="font-family: "calibri";">Treaty shopping, i.e., where a person in country A, which is not, in principle, eligible to benefit from a given tax treaty with country B, invests through an entity in country C to benefit from the treaty. More generally, Action 6 intends to prevent the granting of treaty benefits in inappropriate circumstances.</span><br />
<span style="font-family: "calibri";"><br />
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Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com0tag:blogger.com,1999:blog-5182676916981759529.post-6859481294089884272016-02-13T10:37:00.000-08:002016-02-13T10:37:24.661-08:00Launch of the Anti-Tax Avoidance Package<div style="text-align: justify;">
<strong><span style="font-family: Calibri;">On 28 January 2016, the European Commission (EC) presented its Anti-Tax Avoidance Package (ATAP) that contains proposed measures to planning, boost tax transparency and create a level playing field for all businesses in the European Union. </span></strong></div>
<div style="text-align: justify;">
<strong><span style="font-family: Calibri;"></span></strong> </div>
<div style="text-align: justify;">
<span style="font-family: Calibri;">ATAP </span><span style="font-family: Calibri;">consists of seven parts:</span></div>
<ul>
<li><span style="font-family: Calibri;">legislative proposals for an Anti-Tax Avoidance Directive (draft ATA Directive);</span></li>
<li><span style="font-family: Calibri;">legislative proposals for an amendment to Directive 2011/16/EU to coordinate implementation of G20/OECD BEPS country-by-country reporting (CBCR) requirements;</span></li>
<li><span style="font-family: Calibri;">a proposed 'EC Recommendation' to Member States on the implementation of G20/OECD BEPS recommendations on tax treaty abuse and on permanent establishments; </span></li>
<li><span style="font-family: Calibri;">a general policy 'Communication' on the ATAP and the proposed way forward;</span></li>
<li><span style="font-family: Calibri;">a general policy 'Communication' on an EU external strategy for effective taxation;</span></li>
<li><span style="font-family: Calibri;">an EC Staff Working Document; and </span></li>
<li><span style="font-family: Calibri;">a study on Aggressive Tax Planning.</span></li>
</ul>
<span style="font-family: Calibri;">Comments:</span><br />
<ol>
<li><span style="font-family: Calibri;">The EC's new proposals to crack down on multinational companies avoiding paying tax in countries they earn their profits won't be enough to fight tax havens, according to NGOs. <a href="http://www.euractiv.com/section/euro-finance/news/eu-s-anti-tax-avoidance-package-likely-to-fail-say-ngos/">http://www.euractiv.com/section/euro-finance/news/eu-s-anti-tax-avoidance-package-likely-to-fail-say-ngos/</a></span></li>
<li><span style="font-family: Calibri;">Recommendations on amending tax treaties: <div style="text-align: justify;">
<span style="font-family: Calibri;">° ensure implementation of new PE definition</span></div>
<div style="text-align: justify;">
<span style="font-family: Calibri;">° advice on how to revise tax treaties against abuse</span></div>
<div style="text-align: justify;">
° focus on how to do it in EU law compliant way</div>
</span></li>
<li><span style="font-family: Calibri;">The proposal for an ATA Directive could be seen as a first step toward harmonization in the context of the fight against base erosion and profit shifting. The EC continues to favour the adoption of the CCCTB, despite its rejection by many member states.</span></li>
</ol>
<span style="font-family: Calibri;"></span>Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com0tag:blogger.com,1999:blog-5182676916981759529.post-54344007564301160642016-02-01T11:06:00.001-08:002017-06-11T02:10:49.073-07:0031 Countries Signed MCAA To Boost Transparency In International Tax Matters<div style="text-align: justify;">
<strong><span style="mso-bidi-font-family: Arial;"><span style="font-family: "calibri";">On 27 January 2016, </span></span><span style="letter-spacing: 0.05pt; mso-bidi-font-family: Helvetica;"><span style="font-family: "calibri";">31 countries signed
the </span><span style="font-family: "calibri" , "sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-hansi-theme-font: minor-latin;">Multilateral
Competent Authority Agreement</span><span style="font-family: "calibri";"> (MCAA), which
will bring greater sharing of information in international tax matters. The
MCCA provides for the</span><span style="font-family: "calibri" , "sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-hansi-theme-font: minor-latin;"> automatic exchange of Country-by-Country reports</span><span style="font-family: "calibri";">,
enabling tax administrations to obtain a complete understanding of how
multinational enterprise operations are structured across the value chain,
while ensuring the confidentiality of such information.<o:p></o:p></span></span></strong></div>
<div style="text-align: justify;">
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<span style="letter-spacing: 0.05pt; mso-bidi-font-family: Helvetica;"><span style="font-family: "calibri";">‘Country-by-Country reporting will have an immediate impact in </span><span style="font-family: "calibri" , "sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-hansi-theme-font: minor-latin;">boosting
international co-operation on tax issues</span><span style="font-family: "calibri";">, by enhancing the
transparency of multinational enterprises’ operations,’ said OECD
Secretary-General Angel Gurría. ‘Under this multilateral agreement, information
will be exchanged between tax administrations, giving them a </span><span style="font-family: "calibri" , "sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-hansi-theme-font: minor-latin;">single, global
picture on the key indicators</span><span style="font-family: "calibri";"> of multinational businesses. This
is a much-needed tool towards the goal of ensuring that companies pay their
fair share of tax, and would not have been possible without the BEPS Project.’</span></span></div>
<span style="mso-bidi-font-family: Arial;"><span style="font-family: "calibri";">This agreement,
which covers BEPS Action 13 (Transfer Pricing Documentation &
Country-by-Country Reporting), requires large companies operating in multiple
jurisdictions to “report to their country of residence specified information
regarding each jurisdiction in which the group operates,” including “revenues,
profits, income tax paid, stated capital, accumulated earnings, number of
employees, and tangible assets.”<o:p></o:p></span></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="mso-bidi-font-family: Arial;"><span style="font-family: "calibri";">First exchanges
will start in 2017-2018 on 2016 information, depending on local implementation
of CbC reporting requirements. In case information fails to be exchanged, the
Action 13 report provides for alternative filing so that the playing field is
levelled – although again this will depend on how the OECD recommendations are
implemented in each territory.</span></span></div>
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Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com0tag:blogger.com,1999:blog-5182676916981759529.post-8274303806513314502016-01-02T01:28:00.004-08:002016-01-02T01:28:58.253-08:00Tax rulings and fiscal state aid in the EU<div style="text-align: justify;">
<span style="font-family: "calibri";"><strong>Since June 2013, the European Commission started a sweeping crusade against tax rulings, alleging that companies have received state aid in form of tax relief through tax rulings.</strong></span></div>
<div style="text-align: justify;">
<span style="font-family: Calibri;"></span> </div>
<div style="text-align: justify;">
<span style="font-family: Calibri;"><em>"The main reason behind our state aid action is the realization that governments can distort competition in the Single Market not only by granting subsidies but also by offering sweetheart tax deals. In particular, the deals we have identified benefit only a handful of large multinationals that can put enticing investments and job opportunities on the negotiating table. Smaller companies cannot wield the same bargaining power."</em></span></div>
<div style="text-align: justify;">
<span style="font-family: Calibri;"></span> </div>
<div style="text-align: justify;">
<span style="font-family: Calibri;">February 3, 2015: EU Commission starts proceeding against Belgium's excess profit ruling system</span></div>
<div style="text-align: justify;">
<span style="font-family: Calibri;">February 25, 2015: <em>"Unhappy Meal"</em> report - EU/US trade unions call for action from EU Commission</span></div>
<div style="text-align: justify;">
<span style="font-family: Calibri;">May 26, 2015: Amazon introduced a new tax structure in the UK, Germany, Italy and Spain. The Commission said it <em>"will consider changes to the group tax structure, but these changes going forward don't affect any advantages the company may have received in the past."</em></span></div>
<div style="text-align: justify;">
<span style="font-family: Calibri;"></span> </div>
<div style="text-align: justify;">
<span style="font-family: Calibri;">The Commission in October 2015 decided that tax rulings for Fiat in Luxembourg and Starbucks in the Netherlands granted illegal selective tax advantages to the companies in breach of EU state aid rules. The Commission also has ongoing in-depth state aid investigations into tax rulings concerning Apple in Ireland, Amazon in Luxembourg and Belgium's "excess profit" ruling system.</span></div>
<div style="text-align: justify;">
<span style="font-family: Calibri;"></span> </div>
<div style="text-align: left;">
<span style="font-family: Calibri;">More information: <a href="https://zwitsersbankgeheim.wordpress.com/2016/01/01/taxation-and-eu-state-aid-law/">https://zwitsersbankgeheim.wordpress.com/2016/01/01/taxation-and-eu-state-aid-law/</a></span></div>
<div style="text-align: justify;">
<span style="font-family: Calibri;"></span> </div>
Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com0tag:blogger.com,1999:blog-5182676916981759529.post-27114384472593581512015-12-26T02:48:00.000-08:002017-06-11T02:10:21.954-07:002015 Global Tax Policy Trends <div style="text-align: justify;">
<span style="font-family: "calibri";"><strong>There is a global trend towards transparency in tax matters and, consequently, transparency may well be the watchword of 2015.</strong></span><br />
<strong><span style="font-family: "calibri";"></span></strong><br />
<span style="font-family: "calibri";">The impact of regulation continues to present a challenge for financial services providers globally. Since the global financial crisis, governments and regulators have been focusing their attention on altering, tightening and clarifying rules to increase confidence in the financial services industry, deter financial crime, provide greater tax transparency and increase tax revenue by reducing evasion. These measures however can have far reaching implications, with changes in one jurisdiction or economic area having the potential to present changes on a global basis. One of the best examples of this is FATCA.</span><br />
<span style="font-family: "calibri";"></span><br />
<span style="font-family: "calibri";">A further challenge awaits financial institutions in the next initiative in global tax transparency - the Common Reporting Standard (CRS) - which comes into effect in January 2016 and is a global initiative compared to the US centric FATCA.</span><br />
<br />
<span style="font-family: "calibri";">Initiatives seeking increased transparency between taxpayers and tax authorities derive their momentum from a number of factors that include development issues, ideas of fairness, government crackdowns on tax avoidance and advances in technology.</span><br />
<br />
<span style="font-size: small;"><span style="font-family: "calibri";"><strong>Future tax trends for 2016:</strong></span><br />
</span><br />
<ul><span style="font-size: small;">
<li><span style="font-family: "calibri";">An increase in the number of disclosure facilities;</span></li>
<li><span style="font-family: "calibri";">An increased focus on taxation by national tax authorities and international economic bodies, including increased investigations and improved sophistication in the use of data and systems.</span></li>
</span></ul>
</div>
Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com0tag:blogger.com,1999:blog-5182676916981759529.post-11511969433892062072015-12-20T01:26:00.000-08:002015-12-20T01:26:05.835-08:00Follow-up Special Committee on Tax Rulings <div style="text-align: justify;">
<span style="font-family: "calibri";"><strong>The work of Parliament's Special Committee on Tax Rulings will be continued under a new mandate for six months, starting on 2 December.</strong></span></div>
<div style="text-align: justify;">
<strong><span style="font-family: Calibri;"></span></strong> </div>
<div style="text-align: justify;">
<span style="font-family: Calibri;">The Conference of Presidents of political group leaders decided unanimously to create a special committee as a successor to the special committee on tax rulings (TAXE), which saw its final report adopted on Wednesday 25 November. In the resolution which went with the report, Parliament set out its ideas on how to make corporate taxes fairer across Europe and urged EU member states to agree on mandatory country-by-country reporting by multinationals of profits and taxes, a common consolidated corporate tax base, common definitions for tax terms and more transparency and accountability with regard to their national tax rulings for companies.</span></div>
<div style="text-align: justify;">
<span style="font-family: Calibri;"></span> </div>
<div style="text-align: justify;">
<span style="font-family: Calibri;">The Committee's work will focus on harmful corporate tax regimes and practices at European and international level.</span></div>
<div style="text-align: justify;">
</div>
<div style="text-align: left;">
<span style="font-family: "calibri";">More information: <a href="https://www.linkedin.com/pulse/special-committee-tax-rulings-dirk-de-wolf?trk=mp-author-card">https://www.linkedin.com/pulse/special-committee-tax-rulings-dirk-de-wolf?trk=mp-author-card</a></span></div>
Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com0tag:blogger.com,1999:blog-5182676916981759529.post-39222117905395125482015-12-09T09:38:00.000-08:002015-12-09T09:38:03.316-08:00Tax good governance in the world as seen by EU countries<div style="text-align: justify;">
<span style="color: black;"><span style="font-family: Calibri;"><strong>On 12 October 2015, the European
Commission published an update of its list of third country jurisdictions
that have been identified by EU member states for tax purposes. The update
reflects changes in EU member states‘ assessments of third countries‘ tax good
governance standards, corrections to national lists and Estonia‘s decision to
withdraw all countries from its national list.</strong></span></span></div>
<div style="text-align: justify;">
<span style="color: black;"><span style="font-family: Calibri;"><strong></strong></span></span> </div>
<span style="color: black;"><span style="font-family: Calibri;"><div style="text-align: justify;">
<span style="color: black;">While the Commission´s ultimate
goal, to develop a common EU approach to third countries in the promotion tax
transparency, good governance and possibly effective taxation standards, is not
yet within reach, the Commission is hoping that the list will encourage member
states to update their lists more regularly. Annual updates of member states´
lists are planned. Unlike the list published by the Commission on 17 June 2015,
the new list avoids giving the impression of an EU list and specific mention of
the most-listed countries.<o:p></o:p></span></div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
<span style="font-family: Times New Roman;">
</span><span style="color: black;">The previous list had been criticized
for containing outdated information, and for not taking into account the
transparency criteria monitored by the OECD Global Forum. The CFE has
contributed to the update process in the Commission´s multi-stakeholder
Platform for Tax Good Governance.</span></div>
<div style="text-align: justify;">
<span style="color: black;"></span> </div>
<div style="text-align: left;">
<span style="color: black;">More information: <a href="http://ec.europa.eu/taxation_customs/taxation/gen_info/good_governance_matters/lists_of_countries/index_en.htm?wtdebug=true">http://ec.europa.eu/taxation_customs/taxation/gen_info/good_governance_matters/lists_of_countries/index_en.htm?wtdebug=true</a></span></div>
</span><div style="text-align: justify;">
</div>
</span><div style="text-align: justify;">
</div>
Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com0tag:blogger.com,1999:blog-5182676916981759529.post-15834260021939661692015-12-01T11:25:00.002-08:002015-12-01T11:25:48.012-08:00Implications Of The OECD/G20 Base Erosion And Profit Shifting Project<div style="text-align: justify;">
<span style="font-family: Calibri;">The Subcommittee on Tax Policy of the House Ways and Means Committee has scheduled a public hearing for December 1, 2015, on the Base Erosion and Profit Shifting Project conducted by the Organization for Economic Cooperation and Development at the request of the Group of Twenty ("OECD/G20 BEPS Project"). </span></div>
<span style="font-family: Calibri;"></span><br />
<div style="text-align: justify;">
<span style="font-family: Calibri;">The Senate Committee on Finance has scheduled a public hearing on December 1, 2015, titled "International Tax: OECD BEPS and EU State Aid." This document, prepared by the staff of the Joint Committee on Taxation, provides background on the OECD/G20 BEPS Project, an overview of its findings and recommendations, and a discussion of its potential implications for U.S. tax policy.</span></div>
<span style="font-family: Calibri;"></span><br />
<span style="font-family: Calibri;">More information: <a href="https://www.jct.gov/publications.html?func=startdown&id=4853">https://www.jct.gov/publications.html?func=startdown&id=4853</a></span><br />
<br />Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com0tag:blogger.com,1999:blog-5182676916981759529.post-52969325116107922572015-12-01T10:48:00.001-08:002015-12-01T10:48:53.080-08:00FATCA & CRS - Belgian Bill of Law<div style="text-align: justify;">
<span style="font-family: Calibri;"><strong>As of 2017, the Belgian fiscal authorities will be able to acquire an almost complete overview of the revenues generated and deposited by Belgians in other countries who are member of the European Union.</strong></span></div>
<strong><span style="font-family: Calibri;"></span></strong><br />
<div style="text-align: justify;">
<span style="font-family: Calibri;">On 13 November, the Belgian Government introduced a bill of law implementing the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS). The bill has still to be discussed, potentially amended and then adopted in committee and plenary session before being enacted.</span></div>
<div style="text-align: justify;">
<span style="font-family: Calibri;"></span> </div>
<div style="text-align: justify;">
<span style="font-family: Calibri;">The bill of law covers simultaneously FATCA and CRS (the latter being implemented pursuant to both the OECD/Council of Europe Multilateral Convention and the Directive on administrative cooperation in the field of taxation, as amended by Directive 2014/107/EU), provides further details and introduces new obligations and penalties.</span></div>
<div style="text-align: justify;">
<span style="font-family: Calibri;"></span> </div>
<div style="text-align: left;">
<span style="font-family: Calibri;">More information: <a href="https://www.linkedin.com/pulse/belgian-bill-law-implementing-fatca-crs-dirk-de-wolf?trk=hp-feed-article-title-like">https://www.linkedin.com/pulse/belgian-bill-law-implementing-fatca-crs-dirk-de-wolf?trk=hp-feed-article-title-like</a></span></div>
<div style="text-align: justify;">
</div>
<span style="font-family: Calibri;"></span><br />
<strong></strong>Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com0tag:blogger.com,1999:blog-5182676916981759529.post-19718443974602107262015-11-21T11:24:00.000-08:002015-11-21T11:24:42.121-08:00Savings taxation directive repealed <span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: "calibri";">On November 10, the European Council repealed Directive 2003/48/EC on the taxation of savings income.</span></span><br />
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: "calibri";"><strong></strong></span></span><br />
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: "calibri";"><strong>Brief Background</strong></span></span><br />
<div style="text-align: justify;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: "calibri";"></span></span> </div>
<div style="text-align: justify;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: "calibri";"><span style="font-family: "times new roman";"></span><span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;">The 2003 EUSD, which originally came into effect on 1 July 2005, was introduced as an European approach to attacking banking secrecy. It provides a mechanism whereby EU Member States automatically exchange information about interest earned in one Member State by a resident of another Member State. Only Belgium, Luxembourg and Austria were entitled, during a transitional period, to levy a withholding tax at a rate of, currently, 35% in place of information exchange. Belgium switched, in January 2010, to the automatic exchange of information. From 1 January 2015, Luxembourg will apply the automatic exchange of information on interest payments made by a paying agent established in Luxembourg to individuals resident in another Member State. The first information exchange will take place in early 2016 with respect to interest payments made in 2015.</span></span></span><br />
<span style="font-family: Calibri;"></span><br />
<span style="font-family: Calibri;">Although the legal scope of the EUSD does not extend outside the EU, certain jurisdictions, such as Switzerland, Jersey, Guernsey and the Isle of Man, have agreed to put in place legislation that supports the aims of the EUSD with bilateral agreements with all EU Member States. The EU savings agreements with Switzerland introduced equivalent measures, based around Switzerland paying agents withholding tax of 35% from certain payments to EU residents, with that tax<span style="mso-spacerun: yes;"> </span>being (mostly) transferred to the Member States of residence of the taxpayer and being (fully) available as a credit or repayment in that Member State upon full declaration of the income by the taxpayer. To avoid the withholding tax, the account holder has an option of disclosure to the Tax administration of his Member State.</span><br />
<span style="font-family: Calibri;"></span><br />
<span style="font-family: Calibri;"><strong>Amended EUSD</strong></span><br />
<span style="font-family: Calibri;"></span><br />
<span style="font-family: Calibri;">Since 2009, on the basis of a proposal presented by the European Commission in November 2008, the EU has broadly agreed on enhancements that need to be made to strengthen the EUSD, mainly by extending its product scope, adding rules for identifying the owners of interest and dealing with artificial or tax exempt intermediary structures. On April 15, 2014 the Council Directive 2014/48/EU of 24 March 2014, amending Directive 2003/48/EC on taxation of savings income in the form of interest payments was published. In addition to the wider range of financial products (this would include life insurance contracts, as well as a broader coverage of investment funds), the amended EUSD will also extend the scope of the savings tax rules to payments made to a significantly broader range of entities such as trusts and foundations. </span><br />
<span style="font-family: Calibri;"></span><br />
<span style="font-family: Calibri;">The proposed amendments were approved by the European Council on 24 March 2014 with the adoption of Directive 2014/48/EU. Member States were now required to adopt the laws, regulations and administrative provisions necessary to comply with the amended EUSD by January 1, 2016. The automatic exchange of information concerning income from securities and life insurances, and concerning the interest payments to entities and legal arrangements would be effective as of January 1, 2017.</span><br />
<span style="font-family: Calibri;"></span><br />
<span style="font-family: Calibri;"><strong>EUSD Repealed</strong></span><br />
<span style="font-family: Calibri;"></span><br />
<span style="font-family: Calibri;">The EUSD was repealed following the introduction of a series of measures aimed at preventing tax evasion, and because of developments that are to usher in automatic tax information exchange. In December 2014, the Council adopted Directive 2014/107/EU, which brings interest, dividends, gross proceeds from the sale of financial assets and other income, and account balances within the scope of the automatic exchange of information between Member States. The Directive provides for the implementation of the single global standard on the automatic exchange of information developed by the OECD. It will enter into force on January 1, 2016 and Member States will begin exchanging the information required by the end of September 2017. Austria will apply the Directive a year later than other EU Member States.</span><br />
<span style="font-family: Calibri;"></span><br />
<div style="text-align: left;">
<span style="font-family: Calibri;">Press release: <a href="http://www.consilium.europa.eu/en/press/press-releases/2015/11/10-savings-taxation-directive-repealed/">http://www.consilium.europa.eu/en/press/press-releases/2015/11/10-savings-taxation-directive-repealed/</a></span></div>
<div style="text-align: left;">
<span style="font-family: Calibri;"></span> </div>
<span style="font-family: Calibri;"></span> </div>
Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com0tag:blogger.com,1999:blog-5182676916981759529.post-21484839982679299122015-11-14T05:54:00.002-08:002015-11-14T05:54:31.909-08:00Belgian fight against tax evasion<div style="text-align: justify;">
<span style="font-family: "calibri";">As a reminder, the international automatic exchange of financial account information is considered by most countries as particularly efficient in the fight against tax evasion and international tax fraud and is becoming the new global standard (considering the US FATCA legislation, the OECD Common Reporting Standard). </span></div>
<span style="font-family: "calibri";"></span><br />
<div style="text-align: justify;">
<span style="font-family: "calibri";">- The Belgian Council of Ministers has approved a draft bill. The draft bill aims at implementing the automatic exchange of information of financial account information between Belgium and cooperating jurisdictions provided for in various legal instruments such as the Directive on Administrative Cooperation as amended on 9 December 2014. The draft bill mainly focuses on the transfer of information from Belgian Financial Institutions to the Belgian competent authority, so that the latter can comply with its obligations towards foreign jurisdictions.</span></div>
<div style="text-align: justify;">
<span style="font-family: "calibri";"></span> </div>
<div style="text-align: justify;">
<span style="font-family: "calibri";">- A new measure regarding <strong>fiscal amnesty</strong> will be introduced in 2016.</span></div>
<span style="font-family: "calibri";"></span><br />
<span style="font-family: "calibri";">- <strong>Cayman Tax </strong>(Look-through taxation)</span><br />
<span style="font-family: "calibri";"></span><br />
<div style="text-align: justify;">
<span style="font-family: "calibri";">The 'Cayman tax' is named after the Cayman Islands and it is presented as the instrument to hit high net worth individuals who had been able to legally escape taxation by parking their wealth in trusts, foundations or offshore companies. Since Belgium does not have any wealth tax or capital gains tax for individuals, the Cayman tax must shift some of the tax burden from employment to wealth.</span></div>
<div style="text-align: justify;">
<span style="font-family: "calibri";"></span> </div>
<div style="text-align: justify;">
<span style="font-family: "calibri";">The draft bill containing the Cayman tax was approved by Parliament on 24 July 2015 and the bill of 10 August 2015 ("the Bill") was published in the Belgian official Gazette on 18 August 2015. The Bill provides that the Cayman Tax will apply to income received, attributed or made payable by legal arrangements as of 1st January 2015, so with retroactive effect.</span><br />
<span style="font-family: "calibri";"></span><br />
<span style="font-family: "calibri";">In essence, if Belgium based individuals have parked assets abroad with lowly taxed foreign legal structures (lacking any relevant business substance), the structure will be considered transparent for Belgium personal tax purposes and the Belgium based individual will be directly taxed on the income earned by foreign legal structure.</span><br />
<span style="font-family: "calibri";"></span><br />
<span style="font-family: "calibri";">- In <strong>2017 and 2018</strong>, the Belgian tax authorities will focus even more on combating tax fraud.</span></div>
<div style="text-align: justify;">
</div>
Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com0tag:blogger.com,1999:blog-5182676916981759529.post-41114548721813751602015-11-13T12:06:00.000-08:002015-11-14T01:26:37.879-08:00First non-US group request <span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"></span><div style="text-align: justify;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: "calibri";"><strong>The
Swiss tax office (FTA) has agreed to a request from the Netherlands to hand over
information about Dutch nationals with accounts at the biggest banking group in
Switzerland, UBS. This is the first time the FTA has accepted a group request from a country other than the United States. The request is made possible by the revised Federal Act on International Administrative Assistance instead of requiring specific client names.</strong></span></span></div>
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;">
<div style="text-align: justify;">
<span style="font-family: "calibri";"></span> </div>
<div style="text-align: justify;">
<span style="font-family: "calibri";"><strong>The request</strong></span></div>
<div style="text-align: justify;">
<strong><span style="font-family: Calibri;"></span></strong> </div>
<div style="text-align: justify;">
<span style="font-family: Calibri;">The request target Dutch nationals who have had more than 1500 EUR on their accounts over the past two years and did not reply to a letter from the Swiss authorities about potential illicit savings. The request is extremely broad and smells like a 'fishing expedition': too vague. The Netherlands basis its claim on a tax treaty (2011) with Switzerland on the exchange of tax information. But in that tax treaty nothing is settled on the group requests.</span></div>
<span style="font-family: "calibri";"><div style="text-align: justify;">
</div>
<div style="text-align: justify;">
<span style="color: #222222;"><strong>The tax treaty</strong></span></div>
<div style="text-align: justify;">
<span style="color: #222222;"></span> </div>
<div style="text-align: justify;">
<span style="mso-bidi-font-family: Arial;">On November 9, 2011, the tax treaty between the Netherlands and
Switzerland, that was signed in February 2010, entered into force. It will
apply to tax years and tax periods that commence on or after January 1, 2012.
Consequently, Switzerland agreed to exchange information in tax matters if so
requested; a stance that also applies to its relations with the Netherlands.
This exchange of information not only relates to the application of the tax
treaty, but also to requests for information regarding the tax levied on the
taxpayer. Switzerland may no longer use banking secrecy as a ground for refusal
once the treaty enters into force. Fishing expeditions</span><span style="font-family: "arial" , "sans-serif";"> </span><span style="mso-bidi-font-family: Arial;">are not permitted, and the treaty countries are also not required to
automatically or spontaneously exchange information. The new provision for the
exchange of information will apply to requests made on or after November 9,
2011. These requests must concern information relating to facts arising after
February 28, 2010. The Netherlands and the Swiss authorities signed an
additional agreement at the end of October 2011. To receive information, the
Dutch Revenue does not necessarily have to know the name of the party or bank
in question. Other data, for example a bank account number, are sufficient for
a request for information to be made. The additional agreement also applies as
of November 9, 2011.</span></div>
<div style="text-align: justify;">
<span style="mso-bidi-font-family: Arial;"></span> </div>
<div style="text-align: justify;">
<span style="mso-bidi-font-family: Arial;">This case raises the question of whether other states will start to hand in group requests as well. There are a total of 27 states which have a double tax treaty with an administrative assistance clause which permits group requests.</span></div>
<div style="text-align: justify;">
<span style="mso-bidi-font-family: Arial;"></span> </div>
<div style="text-align: left;">
<span style="mso-bidi-font-family: Arial;"><strong>Press release:</strong> Bund will UBS-Kundendaten nach Holland liefern <a href="http://www.handelszeitung.ch/unternehmen/bund-will-ubs-kundendaten-nach-holland-liefern-913504">http://www.handelszeitung.ch/unternehmen/bund-will-ubs-kundendaten-nach-holland-liefern-913504</a><span style="color: #222222;"><o:p></o:p></span></span></div>
<span style="font-family: "times new roman";">
</span><br />
<span style="font-family: "times new roman";"> </span> </span><br />
<br />
</span><br />
<br />Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com0tag:blogger.com,1999:blog-5182676916981759529.post-9538225416648993282015-06-17T23:44:00.000-07:002017-06-11T02:08:51.126-07:00Tax ruling practice<div style="text-align: justify;">
<span lang="DE" style="mso-ansi-language: DE;"><span style="font-family: "calibri";"><span style="font-family: "times new roman";">
</span><span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><strong>The European
Commission has enlarged its state aid investigation into private tax ruling
practices to cover all 28 European Union States. On 8 June 2015, the European
Commission announced its next steps in its EU-wide State aid review of Member
States’ tax ruling practices.</strong> </span></span></span><br />
<span lang="DE" style="mso-ansi-language: DE;"><span style="font-family: "calibri";"><span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"></span></span></span><br />
<span lang="DE" style="mso-ansi-language: DE;"><span style="font-family: "calibri";"><span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><o:p><span style="font-family: "times new roman";">
</span><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;">Definition (OECD’s Consolidated Application Note, 2004)<o:p></o:p></span></b></o:p></span></span></span><br />
<span lang="DE" style="mso-ansi-language: DE;"><span style="font-family: "calibri";"><span style="font-family: "times new roman";">
</span><br />
</span></span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
<span lang="DE" style="mso-ansi-language: DE;"><span style="font-family: "calibri";"><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;">“Any advice, information or undertaking provided by a tax authority to a
specific taxpayer or group of taxpayers concerning their tax situation and on
which they are entitled to rely”<o:p></o:p></span></i></span></span></div>
<span lang="DE" style="mso-ansi-language: DE;"><span style="font-family: "calibri";">
<span style="font-family: "times new roman";">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;">Typical
conditions:<o:p></o:p></span></div>
<span style="font-family: "times new roman";">
</span><br />
<div class="MsoListParagraphCxSpFirst" style="margin: 0cm 0cm 0pt 36pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -18pt;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: Calibri; mso-hansi-font-family: Calibri;"><span style="mso-list: Ignore;">-<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;">facts accurately presented;<o:p></o:p></span></div>
<span style="font-family: "times new roman";">
</span><br />
<div class="MsoListParagraphCxSpLast" style="margin: 0cm 0cm 0pt 36pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -18pt;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: Calibri; mso-hansi-font-family: Calibri;"><span style="mso-list: Ignore;">-<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;">taxpayer abides by the terms of the ruling.<o:p></o:p></span></div>
<span style="font-family: "times new roman";">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;">Policy rationale<o:p></o:p></span></div>
<span style="font-family: "times new roman";">
</span><br />
<div class="MsoListParagraphCxSpFirst" style="margin: 0cm 0cm 0pt 36pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -18pt;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: Calibri; mso-hansi-font-family: Calibri;"><span style="mso-list: Ignore;">-<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;">higher certainty of applicable tax law;<o:p></o:p></span></div>
<span style="font-family: "times new roman";">
</span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0cm 0cm 0pt 36pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -18pt;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: Calibri; mso-hansi-font-family: Calibri;"><span style="mso-list: Ignore;">-<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;">higher compliance by taxpayers;<o:p></o:p></span></div>
<span style="font-family: "times new roman";">
</span><br />
<div class="MsoListParagraphCxSpLast" style="margin: 0cm 0cm 0pt 36pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -18pt;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: Calibri; mso-hansi-font-family: Calibri;"><span style="mso-list: Ignore;">-<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;">lower litigation.<o:p></o:p></span></div>
<span style="font-family: "times new roman";">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;">State aid<o:p></o:p></span></b></div>
<span style="font-family: "times new roman";">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;">Tax rulings are
generally not as such a problem under EU state aid rules. However, if a tax
ruling results in a Member State providing selective advantages to specific
companies or groups of companies, this distorts competition in the Single
Market in breach of EU state aid rules.<o:p></o:p></span></div>
<span style="font-family: "times new roman";">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;">Under the State
aid rules contained in the EU treaties, State aid is an advantage given by a
Member State to specific companies (or specific sectors of the economy), which
affects competition within the EU. This advantage is not restricted to
beneficial tax treatment: it can either be measures granting positive benefits
(such as direct subsidies) or measures which enable a business to mitigate
costs it would otherwise have incurred.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: "times new roman";">
</span><b><span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: NL-BE;">Belgium</span></b><span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: NL-BE;"><o:p></o:p></span></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
<span style="font-family: "times new roman";">
</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: NL-BE;">The Commission opened the state aid investigation February 3, noting
that deductions granted through Belgium’s ruling system usually amount to more
than 50 percent and sometimes up to 90 percent of the company’s profits.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
<span style="font-family: "times new roman";">
</span><span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: NL-BE;">The rulings allow multinational entities in Belgium to reduce their
corporate tax liability by “excess profits” that allegedly result from the advantage
of being part of a multinational group. The Belgian tax authorities argue that
each company of a multinational group should be taxed as if it was independent,
and that any excess profits should not be taxed in Belgium and are thus exempt
from corporate taxation.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
<span style="font-family: "times new roman";">
</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: NL-BE;">The European Commission has announced that its current view is that
Belgium’s excess profits tax ruling system provides for a selective advantage
tantamount to State aid, and has requested stakeholder comments on this
determination by July 5.</span></div>
</span><br />
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<br /></div>
</div>
Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com0tag:blogger.com,1999:blog-5182676916981759529.post-1907060802541073432015-05-14T23:26:00.000-07:002015-05-14T23:26:28.275-07:00Globalization and Taxation<div style="text-align: justify;">
<span style="font-family: Calibri;"><strong>In the world-business economy, companies are carrying out cross-border transactions at a fast pace around the world. When companies engage in cross-border transactions, the rules of at least two different tax jurisdictions will apply. This simultaneous application of multiple rules creates enormous complexity.</strong> </span></div>
<div style="text-align: justify;">
<span style="font-family: Calibri;"></span> </div>
<div style="text-align: justify;">
<span style="font-family: Calibri;">Two important issues surrounding taxation in a global economy are tax havens and double taxation treaties. Dual taxation is another critical issue surrounding taxation along with globalization.</span></div>
<div style="text-align: justify;">
<span style="font-family: Calibri;"></span> </div>
<div style="text-align: justify;">
<span style="font-family: Calibri;">The mean consequence of globalization is tax competition and complexity of international tax and businesses. Globalization tends to move taxation away from corporations, and onto individual citizens. Corporations have the ability to move to locations where the tax rate is lowest. Individual citizens have much less ability to make such a change. Also, with today's lack of jobs, each community competes with other communities with respect to how many tax breaks it can give to prospective employers.</span></div>
<div style="text-align: justify;">
<span style="font-family: Calibri;"></span> </div>
<div style="text-align: justify;">
<span style="font-family: Calibri;">Companies and tax advisors are searching for more information that allows them to get familiar with the differences in the tax systems and tax cultures when taking decisions on whether or not to invest in one country or whether or not to carry out cross-border transactions. Countries and organizations such as the OECD and the EU are also searching for new answers to the challenging problems caused by the differences in tax systems , tax cultures and the complexity in international taxation. </span></div>
<div style="text-align: justify;">
<span style="font-family: Calibri;"></span> </div>
<div style="text-align: justify;">
<span style="font-family: Calibri;">Despite the international measures adopted by countries to prevent double taxation or to tackle tax avoidance, the complexity of international businesses has resulted in the search for new solutions to these problems. </span></div>
<div style="text-align: justify;">
</div>
Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com1tag:blogger.com,1999:blog-5182676916981759529.post-59051113538103146462015-04-17T09:53:00.000-07:002015-04-17T09:53:32.014-07:00How Taxes Affect Investment Decisions For Multinational Firms<div style="text-align: justify;">
<span style="font-family: Calibri;">If you were a multinational firm, where would you locate your activities and investments? A handful of economic factors play a role in this decision, but for tax-related aspects, you would think in terms of an average effective tax rate. It's not that complicated; let me explain.</span><br />
<span style="font-family: Calibri;"></span><br />
<span style="font-family: Calibri;">Taxes matter. Taxes specifically play a role in where multinational firms locate their economic activity, for example, plants and equipment. In the debate on corporate tax reform, however, the discussion of individual countries' corporate tax rates and how they affect multinational firms' decisions to invest focuses almost exclusively on the statutory tax rate. Although the statutory tax rate in some sense is a useful proxy, it's actually often quite distinctly different in magnitude from the rate that is more meaningful: the average effective tax rate.</span><br />
<span style="font-family: Calibri;"></span><br />
<a href="http://www.forbes.com/sites/thetaxfoundation/2015/04/14/how-taxes-affect-investment-decisions-for-multinational-firms/">http://www.forbes.com/sites/thetaxfoundation/2015/04/14/how-taxes-affect-investment-decisions-for-multinational-firms/</a><br />
<span style="font-family: Calibri;"></span><br />
<span style="font-family: Calibri;"><strong>My opinion on this matter:</strong></span><br />
<span style="font-family: Calibri;"></span><br />
<span style="font-family: Calibri;">If I was a multinational firm, I would choose the Netherlands. The Netherlands is globally famous for being one of the premier locations for international business operations. In addition, the Dutch government has created a competitive tax regime that stimulates entrepreneurship and foreign investment in the Netherlands. Not only the corporate tax rates are lower in relation of its European neighbours, there are also numerous features that make it attractive for foreign companies to locate operations in the Netherlands. Some examples of attractive features: Advance Tax Ruling policy (offering certainty on future tax positions), absence of statutory withholding taxes on outgoing interest and royalty payments, absence of capital tax, ... .</span></div>
Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com0tag:blogger.com,1999:blog-5182676916981759529.post-59270096879439019452015-04-16T04:12:00.000-07:002015-04-17T09:30:03.448-07:00Business Roundtable Report: Cross-border Mergers and Acquisitions and the US Corporate Income Tax<div style="text-align: justify;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;">The United States
has the highest statutory corporate income tax rate among developed nations and
is the only developed country with both a high statutory corporate income tax
rate and a worldwide system of taxation. These features of the US corporate income
tax have disadvantaged US businesses in the global market for cross-border
M&A.<o:p></o:p></span></span></div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;">Most developed
countries impose little or no additional tax on the active foreign income of
multinational companies. Today the United States is the only developed country
with a worldwide system and a corporate income tax rate above 30%.
Consequently, foreign companies can afford to bid more for acquisitions in the
United States and abroad as compared to US companies.<o:p></o:p></span></span></div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;">This report
analyzes the cross-border M&A market and how the US corporate income tax
has disadvantaged US companies in this market. Differences in statutory
corporate income tax rates and the over 25,000 cross-border M&A
transactions among the 34 OECD countries are examined in a statistical model
over the 2004-2013 period. Transactions with both US and non-US targets and US
or non-US acquirers are included.<o:p></o:p></span></span></div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;">The EY report
finds that a US corporate income tax rate of 25% would have significantly
reduced the disadvantages of US companies and would likely have resulted in the
United States being a net acquirer in the cross-border M&A market.</span></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;"></span></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;"><o:p><a href="http://businessroundtable.org/sites/default/files/reports/EY%20BRT%20Cross-border%20MA%20report%202015%2003%2010.pdf">http://businessroundtable.org/sites/default/files/reports/EY%20BRT%20Cross-border%20MA%20report%202015%2003%2010.pdf</a></o:p></span></span><br />
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;"><o:p></o:p></span></span> </div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
</div>
Anonymoushttp://www.blogger.com/profile/12864789509468600876noreply@blogger.com0tag:blogger.com,1999:blog-5182676916981759529.post-36416370370557297742015-03-31T23:26:00.001-07:002015-03-31T23:26:37.785-07:00Towards a European FATCA?<div style="text-align: justify;">
<span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;"><strong>Inspired by the CRS and following recent agreement at the Economic and Financial Affairs Council of the EU (ECOFIN) on the revision of the Directive on Administrative Cooperation (DAC), September 2017 will also see the first automatic exchanges of information within the European Union.<o:p></o:p></strong></span></span></div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;">DAC </span></span></b></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt; text-align: justify;">
<span style="font-family: Calibri;"><span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Arial;">The original draft contained
provisions for a switch to automatic exchange, but was limited in terms of
income and was conditional on the information being ‘available’. This was
revised at a meeting of ECOFIN last October. </span><span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;">The European Union
Council adopted on 9 December 2014 a new Directive 2014/107/EU amending the
Directive 2011/16/EU regarding mandatory automatic exchange of information in
the field of taxation, in order to solve the problem posed by cross-border tax
fraud and tax evasion, one of the major concerns in the EU and globally. The
revised directive expands the scope of the automatic exchange of tax
information to include interest, dividends, and other income as well as account
balances and sales proceeds from financial assets. The deadline for Member
States to adopt local legislation consistent with the revised Directive is 31
December 2015. Under the revised DAC, information related to fiscal years as
from 1 January 2016 will be exchanged on an automatic basis between EU Member
States as from 1 January 2017.<o:p></o:p></span></span></div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;">It should be noted
that in respect of the following five categories of income:<o:p></o:p></span></span></div>
<div style="text-align: justify;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;">- employment
income;<o:p></o:p></span></span></div>
<div style="text-align: justify;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;">- directors’ fees;<o:p></o:p></span></span></div>
<div style="text-align: justify;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;">- life insurance
products not covered by other Directives;<o:p></o:p></span></span></div>
<div style="text-align: justify;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;">- pensions;<o:p></o:p></span></span></div>
<div style="text-align: justify;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;">- ownership of and
income from immovable property,</span></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"> </span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-layout-grid-align: none; text-align: justify;">
<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;">the EU Member States
start the automatic exchange of information, if available, regarding the
taxable periods from 1 January 2014 onwards (i.e. the<span style="mso-spacerun: yes;"> </span>first intended automatic exchange should take
place in 2015). Additionally, DAC provides for the EU Commission to be the sole
negotiator for any automatic information exchange of an EU Member State with
non-EU countries. In the meantime, the EU Commission is working to bring third
countries on board. The underlying idea is to skip the second version of the EU
Savings Directive (which will be phased out) and conclude agreements on the
basis of the new standards. <o:p></o:p></span></span></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;">Similarities between DAC and CRS<o:p></o:p></span></span></b></div>
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<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;">As is the case
under CRS, DAC envisages that financial institutions (FI’s) - including
depository institutions, custodial institutions, investment entities and
specified insurance companies - will report to their local tax authorities,
which in turn will report this information to the tax authorities in the
countries of residence of the account holders.</span></span></div>
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<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;">For the moment,
neither the CRS nor DAC are fully finalised in terms of detail and reporting methodology, which leaves FI’s that need
to prepare for the increased reporting burden knowing that they need to take
certain actions to be able to comply but enable to move forward with complete
certainty on the parameters within they will be reporting.<o:p></o:p></span></span></div>
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<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;">Both under DAC and
CRS, it will be necessary to carry out due diligence and reporting for all
account holders resident in the different participating jurisdictions. A
greater number of accounts are likely to fall within the scope of the exchange
of information as there is no minimis threshold for pre-existing individual
accounts under either CRS or DAC.</span></span></div>
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;">Conclusion<o:p></o:p></span></span></b></div>
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<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;">The similarities
between the CRS and DAC should minimize costs and administrative burdens both
for tax administrations and for economic operators. A key issue for FI’s is
ensuring the consistency of global implementation for the CRS and DAC, aligned
as far as possible to existing FATCA implementations. </span></span></div>
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<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;"></span></span> </div>
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<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;">I don't question the necessity for EU Member States to ensure that they collect all the tax revenues that are due to them. However, DAC raises some concerns for investors such as privacy and data protection and still unresolved issues like double taxation of financial income (dividend in particular) within the EU.</span></span></div>
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<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"></span> </div>
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<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;"></span></span> </div>
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<span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Georgia;"><span style="font-family: Calibri;">If you would like to discuss any aspect of the DAC in more detail, please contact me.</span></span></div>
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