Chile’s approach to the taxation of the digital economy
The digitalisation of the economy poses several challenges for current tax systems throughout the world, both internally and multilaterally. Although the OECD has identified these challenges and several issues which arise from them, no definitive guidelines or approaches have been issued in this regard. As agreeing on and implementing a global solution will not come easily, until a consensus for such a multilateral approach is reached, many countries are taking interim and unilateral measures to approach such challenges. It is in these circumstances that Chile envisages to introduce a new tax on digital services.
Class III policies in the Italian legal framework: life insurance policy or financial instrument?
Starting from a brief description of the favourable tax regime provided for life insurance products in the domestic market in Italy, this paper aims to provide an overview of the risks connected with the re-characterisation of class III policies. The analysis is carried out with reference to the most recent Italian Supreme Court case law as well as in light of the latest decision issued by the Court of Justice of the European Union.
The Netherlands introduces a list of low-tax jurisdictions
The Netherlands has finally published a list of qualifying low-tax jurisdictions. This new list is especially relevant for two new Dutch legislative proposals: the Controlled Foreign Companies (CFC) measures, and the Dutch proposal to tax dividend, interest and royalty flows from a Dutch entity to a low-tax jurisdiction.
Letter from the Editor - Taxes Committee newsletter article, November 2018
Kristin Konschnik introduces the November 2018 IBA Taxes Committee update.
From the Co-Chairs - Taxes Committee newsletter, November 2018
Francesco Capitta and Ana Lucia Ferreyra reflect on the IBA Annual Conference 2018 and look ahead to the New Era of Taxation conference.
Young Lawyers Programme - September 2018 newsletter
Message from the Young Lawyers Programme of the Taxes Committee, which is an IBA initiative that aims to attract younger lawyers to participate in relevant Committee activities and to enhance their engagement with the various IBA committees, groups and activities.
Cloud mining of cryptocurrencies
In Austria, as in many other countries, there are no explicit rules in the Income Tax Act and Value Added Tax Act specifically dealing with cryptocurrencies. Thankfully, in 2017, the Austrian Ministry of Finance released guidance, which is helpful in most respects, but definitely not comprehensive.
The 2017 United States international tax reforms: a sea change
By far, the most important development in United States taxation in the past year has been the enactment of the law known as the Tax Cuts and Jobs Act of 2017 (the ‘TCJA’). The TCJA, controversially and hurriedly passed on a near party-line vote, is one of the most significant reforms of US federal tax law since the enactment of the Internal Revenue Code of 1986.
Uruguay's free zones: the new reform
On 8 December 2017, the Uruguayan Executive Branch enacted Act No 19,566 (the ‘Act’), amending several provisions of the so-called Free Zones Act (No 15,921). The following provides a summary of the main amendments introduced by the Act, which entered into force on 8 March 2018.
Meet the Officer, Simon Yates
Simon Yates is one of two current Vice-Chairs of the Taxes Committee. In this article, he explains a bit about how he got into law and what his role within the Committee entails.
Summary of Buenos Aires Conference - Taxes Committee, January 2018
Mariana Eguiarte-Morett and Leandro Passarella offer a summary of ‘The New Era of Taxation’ Conference, which took place in Buenos Aires on 30 November and 1 December, and brought together tax practitioners, both in the public and private sectors, as well as from academia, from over 20 countries in Europe, Latin America and North America.
Letter from the Editor - Taxes Committee, January 2018
Newsletter editor Kristin Konschnik introduces the January 2018 edition of the Taxes Committee newsletter, nodding to the Co-Chairs message, bidding a fond farewell to Alain Ranger and a warm welcome to Ana Lucia Ferreyra, incoming Co-Chair. Konschnik highlights the successes of 2017's conferences and looks forward to 2018, encouraging members to become involved with the Committee and its activities.
Summaries from the Annual IBA Conference in Sydney - Taxes Committee, January 2018
The Taxes Committee organises wide-ranging and highly informative programmes for several tax conferences each year. However, most of us can't make it to every conference and, even if we could, we would often like to be able to go back and remember the best insights of a great discussion. For this purpose, a detailed report is prepared on most panel sessions and lectures given in our conferences.
A taxing time to invest in Australia
By Reynah Tang
This article outlines three recent tax and tax related changes introduced by the Australian Government that impact on investment in Australia: a new multinational anti-avoidance law; a withholding tax on the disposal of direct and indirect Australian real property interests by foreign residents; and the introduction of tax related standard conditions for foreign investment approvals.
Implications of recent Austrian tax law changes on outbound cross-border mergers
By Niklas Schmidt and Cynthia Pfister
Recent changes introduced in Austria with the Tax Amendments Act 2015 may have a significant impact on cross-border mergers, rendering them less attractive. This is due to the fact that as of 1 January 2016, it is no longer possible to defer any exit tax triggered by a merger.
New benefits for logistics business in Uruguay
By Guzmán Ramírez
Amendments to the Uruguayan Customs Code have introduced more incentives for the setup of regional distribution centres in Uruguay. The updated Code provides for the creation of a new category of bonded warehouse to benefit from the tax exemptions of the Free Port Regime.
The Portuguese State Budget for 2016
By Bruno Santiago and Roberto Mendonça
This article provides a brief overview of the main amendments in the Portuguese tax system, relevant from an international taxation point of view, that were brought by the State Budget for 2016.
Foreign rectification orders not binding on Canada
By Phil Ward
This article discusses a recent decision of the Tax Court of Canada which held that foreign rectification orders were not binding on the Canada Revenue Agency in the absence of recognition by a competent Canadian court. Rectification proceedings have become common in Canada as a way to fix mistakes to avoid unforeseen tax consequences, but taxpayers can anticipate that the agency will resist rectification orders issued by foreign courts.
Meet the Officers: Membership Officers
Membership Officers - Aseem Chawla, Gordon Warnke, Roberto Estrada and Guillermo Canalejo Lasarte discuss their officer roles on the Taxes Committee.
Real estate rich company clauses in Germany’s recent double taxation treaty practice: how to cope with the changes - Taxes Committee newsletter article, December 2015
By Dr Nicole Schwäbe
The Organisation for Economic Cooperation and Development (OECD) Model Tax Convention was amended by a real estate rich company clause in 2003 according to which the taxation right on capital gains derived from the alienation of shares in a real estate company is transferred to the state in which the real estate is situated.
Corporate income tax consequences of asset transfers between a Dutch head office and its permanent establishment - Taxes Committee newsletter article, December 2015
By Pim Duteweert
In the Netherlands, a Dutch corporate taxpayer (binnenlands belastingplichtige) is taxed on its worldwide profits including those derived from abroad through a permanent establishment (‘PE’). Relief from double taxation in respect of PE profits is granted through the so-called ‘object exemption’ (objectvrijstelling).
India: tax controversies on software-related payments - Taxes Committee newsletter article, December 2015
By Himanshu Sinha, Nameer Khan, Rajat Dosi and Ayush Tandon
Taxability of software payments in India has been a highly vexed issue under both the direct and indirect tax regimes. From an income tax perspective, the dispute has been in relation to whether a right to use software granted by a non-resident to a resident in India constitutes a royalty under the Income Tax Act 1961 (the ‘IT Act’) and the tax treaties.
Nigeria: tax regulation highlights in 2015 - Taxes Committee newsletter article, December 2015
By Ehijeagbon Oserogho
The free fall in the price of crude oil poses a grave, albeit unfamiliar, challenge to the funding of public expenditures by all tiers of government in Nigeria. Historically, Nigeria has relied on its sale of crude oil for more than three quarters of its global revenues, most of which are expended on recurrent expenditures.
US: the ‘wilfulness’ element in the Inland Revenue Service’s Offshore Voluntary Disclosure Program (OVDP) - Taxes Committee, December 2015
By John Anthony Castro
What constitutes ‘wilful’ in determining the meaning of the term ‘non-wilful’ as used by the Internal Revenue Service (IRS) in the Offshore Voluntary Disclosure Program?
What a foreign investor should know about acquiring a US business - Taxes Committee, December 2015
By Robert G. Lorndale
This article is intended as a practical United States tax-planning guide for foreign (ie, non-US) persons considering investing in or acquiring a US business.
Uruguay: Tax developments for foreign companies included in the National Budget Bill - Taxes Committee, December 2015
By Guzmán Ramírez
On 31 August 2015, the Uruguayan Government submitted before Parliament the National Budget Bill for the period 2015–2019 (the ‘Budget Bill’).
Corporate income tax reform in Ukraine - Taxes Committee newsletter article, December 2015
By Tetyana Matsyuk and Maksym Maksymov
The Ukrainian tax system operates in a permanent state of reform. Despite the principle of tax legislation stability laid down in Ukraine’s Tax Code (the ‘Tax Code’), new tax laws are introduced in Ukraine at the end of every year and become effective one week after adoption.
Ireland: tax appeal procedural reform - Taxes Committee newsletter article, December 2015
By Brian Duffy
In January 2015, pre-legislative scrutiny of the draft heads of the Finance (Tax Appeals Commission) Bill (the ‘Draft Heads’) was undertaken. The author was invited to the process and gave evidence before the Oireachtas Joint Committee on Finance, Public Expenditure and Reform on the Draft Heads, which was the first time a tax practitioner had been invited to participate in the process.
European Court of Justice on tax system of Austrian private foundations - Taxes Committee newsletter article, December 2015
By Dr Niklas J R M Schmidt and Cynthia Pfister
In a recent judgment the European Court of Justice (ECJ) decided that the system of interim taxation of Austrian private foundations does not comply with European Community (EC) law.
Mexico: energy and infrastructure investment trusts - Taxes Committee newsletter article, December 2015
By Jorge Correa and Nadja Ruiz
On 20 December 2013, Articles 27 and 28 of the Mexican Constitution were amended. In a nutshell, these articles were modified to open up the hydrocarbon and power industries to private investment.
Italy: cooperative tax compliance - Taxes Committee newsletter article, December 2015
By Massimo di Terlizzi
On the basis of the Organisation for Economic and Cooperation and Development’s (OECD) indications,1 Legislative Decree no 128 of 5 August 2015, published in Official Journal no 190 of 18 August 2015,2 has introduced a regime of cooperative tax compliance between taxpayers and the Italian tax administration through forms of preliminary exchange.
Meet the officer: Scholarship Officers Margriet Lukkien and Ana Lucia Ferreyra - Taxes Committee, December 2015
Who are the Scholarship Officers for the Taxes Committee. What does this Officer role entail? What are some of the benefits of the role and what are the challenges?
Recent developments in the advance tax ruling practices in Luxembourg and the Netherlands - Taxes Committee newsletter article
By: Alexei Maliy & Cees-Frans Greeven
Within the recent discussions on tax arrangements by international enterprises aimed at reducing the taxable base in high tax jurisdictions while shifting profits to low tax jurisdictions, special attention is drawn to the practices of governments concluding ‘tax deals’ which allegedly offer special tax privileges to taxpayers.
Poland enters battle for exchange of tax information - Taxes Committee newsletter article
By: Aldona Leszczynska-Mikulska, Tomasz Krzywanski and Aleksandra Czyz
The protracted economic crisis has led to a need to improve the tax systems of many countries and consequently to exact taxes from taxpayers who do not always or fully transparently declare all their income in their country of tax residence.
Universal basis and double taxation conventions in Brazil - Taxes Committee newsletter article
By: Gustavo Martini de Matos
In another article, with coauthor João Francisco Bianco, I had the opportunity of critically analysing the Brazilian legislation concerning the levy of corporate income tax and social contribution on the profits made abroad by legal entities domiciled in Brazil, taking a double perspective: domestic law, and double taxation conventions.
US corporations’ fair share – inversions, REITs, MLPs and tax reform - Taxes Committee newsletter article
By: David R Hardy
In the summer of 2014, the financial press were awash with stories of US corporations considering or effecting ‘inversion’ transactions. Such transactions, turning the US corporation’s parent company into a non-US corporation, resulted in a substantial reduction in their US taxes.
BEPS developments within the European Union and the Dutch approach - Taxes Committee newsletter article
By: Margriet Lukkien and Sophie Korteweg.
Countering base erosion and profit shifting (BEPS) is not only high on the agenda of the G20 and the Organisation for Economic Co-operation and Development (OECD), but also of the European Union (EU).
IBA Officers interview - Taxes Committee newsletter article
By: Simon Yates and Ricardo Leon Santacruz
. IBA Officers interview
From the Co-Chairs - Taxes Committee newsletter article
By: Ewout van Asbeck and Reeves Westbrook
. From the Co-Chairs