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The First Latin American and Caribbean Tax Summit for Inclusive, Sustainable and Equitable Global Taxation

The First Ministerial Latin America and the Caribbean Tax Summit for Inclusive, Sustainable and Equitable Global Taxation took place on 27 and 28 July in Cartagena de Indias, Colombia. It was attended by authorities from the ministries of finance and economy of 16 countries, as well as political leaders and representatives of international, regional and civil society organisations. This article summarises the conference.

Released on Sep 3, 2023

Should the term ‘business profits’ be defined under domestic law? Mexico and the denial of treaty benefits to foreign residents

The Mexican Tax Administration Service has construed the term ‘business profits’ under domestic law, leading to the denial of treaty benefits to foreign residents. Federal tax courts have supported this interpretation, resulting in double taxation due to a deficient interpretation.

Released on Sep 3, 2023

The OECD global minimum tax: impact on family offices

Family offices are not the intended target of the OECD global minimum tax initiative, but advisers may be underestimating the number of private wealth structures that will be affected by these rules. This article explains how family office structures can be subject to the global minimum tax and recommends that these organisations assess the consequences – and consider options for mitigation.

Released on Sep 3, 2023

Overriding importance of legal privilege reconfirmed by Belgian Constitutional Court in DAC-6 case

Legal professional privilege is not to be tampered with. It is a principle of such a fundamental nature that it imposes itself even on legislators. This is, in essence, the Belgian Constitutional Court’s message in its judgment of 20 July 2023 in a matter initiated by the Order of Flemish Bars (Orde van Vlaamse Balies or OVB) and other petitioners against the Flemish regional implementation decree of the DAC-6 Directive, as this article explains.

Released on Sep 3, 2023

New tax developments in Turkey

In 2023, new tax increases were introduced in Turkey, while some tax exemptions were removed and an additional motor vehicle tax was introduced. These amendments include contradictions to some tax law principles, as this article explains.

Released on Aug 17, 2023

Brazil’s consumption tax reform: what can be expected?

On 6 July 2023, the Brazilian House of Representatives approved the Constitutional Amendment Bill No 45/2019 (Consumption Tax Reform) after two plenary voting rounds. The bill is set to overhaul consumption taxation and reform specific aspects of wealth taxation. This article presents an overview of the Consumption Tax Reform under discussion before the Brazilian Congress, and addresses the main concerns and expectations related to its approval and future execution.

Released on Aug 17, 2023

Taxation of free zone persons under the new UAE corporate tax

Following the enactment of Federal Decree Law No 47 of 2022, the United Arab Emirates’ federal corporate tax has now officially come into effect for financial years commencing on or after 1 June 2023. Against this backdrop, this article briefly considers the topical issue of free zone taxation under the new UAE corporate tax regime.

Released on Jul 31, 2023

Beneficial ownership registry coming to the United States

Starting in 2024, for the first time the United States Corporate Transparency Act will require millions of companies to report to the Treasury Department about their principal beneficial owners and controlling persons. Non-exempted business entities formed or registered in the US and in existence after this year must furnish specified identifying information to a federal database, which will be open to relevant governmental authorities and (in connection with KYC and AML diligence) financial institutions, though not to the general public. Affected companies should act promptly to comply with the CTA.

Released on Jul 18, 2023

Australia’s new era of employee ownership

It has been a big year for employee share schemes (ESS) in Australia. While there have been some tax reforms, on 1 October 2022, legislation was passed that brought about a tectonic shift in the regulatory plumbing that underpins the operation of ESS in Australia. Following the passing of these reforms, all companies that operate ESS in Australia – whether listed or unlisted, large or small – need to pause to consider how the new regulatory rules will impact on the operation of their ESS plans.

Released on Jul 18, 2023

Private equity alternative liquidity: secondary transactions, GP led transactions, etc

This session focused on general partner (GP)-led secondary transactions, where a fund's GP sells an asset of a fund to a continuation fund (CF) managed by the same GP. The main economic rationale behind these transactions is enabling willing investors to continue exposure to well-performing assets, while allowing new investors into the CF.

Released on Jul 4, 2023

The future of entity choice: endangered hybrids and new choices for IPOs

This panel discussion focused on two main topics: hybrid issues and initial public offerings (IPOs). First, hybrid issues were discussed from a legislative point of view, but also in an international context where such hybrid issues can lead to the unfavourable treatment of foreign investors. Second, IPOs and their tax implications were examined from the perspective of different jurisdictions, namely Italy, the Netherlands and Switzerland.

Released on Jun 29, 2023

Offramps: managing criminal tax investigations to avoid charges

Clients facing criminal tax investigations are not only looking to defeat the potential charges on the merits, but on any grounds that convince a government not to pursue criminal charges against the particular individual or entity. This panel addressed the potential arguments for declinations of criminal tax charges and alternatives to criminal tax convictions, such as non-prosecution agreements and deferred prosecution agreements.

Released on Jun 29, 2023

Hot topics in transatlantic M&A (2023)

This session’s panel discussed: (1) the potential implications in connection with the upcoming implementation of the Organisation for Economic Co-operation and Development’s (OECD) Pillar Two Model Rules in deal structuring, purchase price determination and contracts; (2) tax insurance solutions to address the tax risks in mergers and acquisitions (M&A) transactions; and (3) the determination of the appropriate jurisdictions in corporate redomiciliations.

Released on Jun 29, 2023

US GILTI, book minimum tax and Pillar Two – how will they interact?

The panel focused on the complexities expected to arise from the Organisation for Economic Co-operation and Development’s Pillar Two rules and the US Global Intangible Low Tax Income (GILTI) and book minimum tax provisions.

Released on Jun 28, 2023

The rise of revenue authorities in the Commonwealth Caribbean: what about taxpayers’ rights?

In 2021 legislation was passed to implement the Trinidad and Tobago Revenue Authority, which is due to take full effect from 1 August 2023. This also coincides with a move to reform property taxes, which had previously been referred to as land and building taxes, but is now expected to be re-implemented as a property tax in 2023, based on a percentage of the annual rental value of the property.

Released on Jun 18, 2023

A tale of two holding companies: tax disputes in Trinidad and Tobago

In recent times, there have been two significant decisions emanating from the Tax Appeal Board of Trinidad and Tobago in which the role and purpose of the holding company within the multinational group structure was critical in determining whether the interposition of such entity within the group structure was a tax avoidance mechanism and, therefore, should be disregarded in the taxation authority’s assessment related to the withholding tax applicable on the particular dividend remittance.

Released on Jun 18, 2023

The Common Reporting Standard and the Cayman Islands – why it is more important than ever for Cayman financial institutions to get it right

In 2014, the Organisation for Economic Co-operation and Development developed the Standard for Automatic Exchange of Financial Account Information in Tax Matters (the ‘AEOI Standard’). The AEOI Standard provides for the annual exchange, between tax authorities, of a predefined set of information on financial accounts held by individuals and entities resident in a foreign jurisdiction. The Common Reporting Standard is the global standard for the automatic exchange of tax information. The Cayman Islands was one of the first countries to commit to implementing the AEOI Standard and completed its first exchange in 2017.

Released on Jun 18, 2023

The Caribbean Community (CARICOM) double taxation treaty

The Caribbean Community’s Double Taxation Agreement was signed in 1994 and bears close similarities to the UN Model Double Taxation Convention between Developed and Developing Countries published in 1980, rather than the Organisation for Economic Co-operation and Development’s Double Taxation Convention on Income and Capital, which was developed in 1963 by developed countries and largely favoured investors from those countries. The Double Taxation Agreement is unfortunately silent on ‘permanent establishment’, an omission which causes businesspersons, accountants and lawyers endless headaches.

Released on Jun 18, 2023

Workers (and executives) without borders – traps for the outwardly mobile taxpayer

The panel discussed the growth in recent years of nomad visas and permanent remote workers in a post-Covid world and the Organisation for Economic Co-operation and Development’s guidance on this topic. The panelists discussed practical considerations for remote workers and referred to recent case law and practices in Austria, Bulgaria, France, Switzerland and the United States.

Released on May 17, 2023

Cross-border considerations for direct lending platforms

This panel reviewed some of the most common structures for setting up direct lending platforms in a cross-border context, addressing the main tax implications for typical Irish investment vehicles, effectively connected income issues for United States tax purposes, and the United Kingdom qualifying asset holding company regime for debt structures. The panel also discussed the risk concerning permanent establishment from the perspective of Austria, Italy and Switzerland.

Released on May 17, 2023

The role of the competent authority proceedings and double taxation resulting from DSTs, minimum tax and other taxes

This panel discussed dispute resolution tools available to address double taxation, with a particular focus on competent authority proceedings. Considering that the best path for seeking relief can vary depending on the circumstances and jurisdictions involved, the panel addressed key strategies and practical considerations that advisors should be aware of from the perspective of practitioners in multiple jurisdictions.

Released on May 17, 2023

Cracks in the bricks: disruptions in the real estate market and the tax environment

The pandemic, political disruptions and increasing financing costs had and have a significant impact on the real estate market. At the same time, new tax rules have created further challenges for planning cross-border real estate investments. This session provided an overview of the recent developments regarding the relevant tax rules and the opportunities and constraints resulting therefrom, including the latest developments under the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI), the upcoming third EU Anti-Tax Avoidance Directive, the United States Foreign Investment in Real Property Tax Act regulations, the interpretation of the Swiss Treaty Law on sales of real estate investment companies and similar Italian and Finnish legislation related to the MLI.

Released on May 17, 2023

Is my footprint big enough? Implementing ATAD 3 – substance requirements and impact on transatlantic investment structures

The subject of this panel discussion was the European Commission’s proposed Anti-Tax Avoidance Directive 3 (ATAD 3). The directive, also known as the Unshell Directive, is designed to combat tax avoidance and tax evasion practices. The directive is still in the process of being drafted. Topics included in the scope of the proposed directive concern gateways and substance indicators to be assessed, as well as reporting obligations and tax consequences for entities in the scope of the directive.

Released on May 17, 2023

Managing uncertainty in transfer pricing: evolving methods and current state of APA play

This panel discussed the sources of uncertainty in transfer pricing and the tools available to taxpayers to address that uncertainty. The tools for managing uncertainty were divided into two categories: reactive tools and proactive tools. Regarding reactive tools, the panel discussed audit settlement, administrative appeal or litigation, and mutual agreement procedure or arbitration. With proactive tools, the focus point was the advance pricing agreement (APA) procedure. The panel analysed the pros and cons of the different approaches and discussed what lies ahead for the APA landscape.

Released on May 17, 2023

Family holding structures in the US and Europe

This session provided an overview of what a modern family office might typically look like and discussed some of the functions and characteristics of family offices in general. Based on a typical family office structure (base case), the panelists discussed current issues and structuring trends for domestic family wealth platforms in Germany, Italy, Switzerland, the United Kingdom and the United States, with added gloss offered on the use of Cayman Island trusts. Afterwards, the international aspects were looked at, in particular issues arising when relevant parties or beneficiaries move out of the jurisdiction of the family office. To conclude, the panelists considered issues related to philanthropy, being often a part of or connected with the family office structure and the family business.

Released on May 17, 2023

Dual residency: identifying and solving common problems

The panel discussed a variety of selected issues with regard to dual tax residency, which can arise both in an income and estate/inheritance and gift tax context. As tax residence is determined under the highly diverse domestic tax laws of each jurisdiction, a person can qualify as a tax resident in more than one jurisdiction at the same time. In this situation, so-called tie-breaker rules in bilateral tax treaties may resolve this issue. If there is no such treaty, the resolution depends solely on the respective provisions of national tax law. The panel focussed on the interaction of United States tax law with that of France, Italy, Malta, Spain, Switzerland and the United Kingdom, respectively.

Released on May 17, 2023

Tax aftermath of the crypto winter

The panel provided valuable insights into the ever-changing cryptocurrency landscape. A key topic discussed was the development of regulations and transparency rules by the Organisation for Economic Co-operation and Development, with a focus on the recently published Crypto-Asset Reporting Framework. Additionally, the panel delved into the evolving tax regulations in Austria, Portugal, Spain, Switzerland and the United States. Finally, the panel addressed distressed situations in the realm of cryptocurrencies, specifically discussing the impact in the US of the bankruptcy of FTX and other lending platforms.

Released on May 17, 2023

Trends in Brazilian tax treaties

This article evaluates possible new tendencies in Brazilian tax treaties, considering double tax conventions recently signed by the country with Norway and the United Kingdom, which also include innovative provisions.

Released on Apr 5, 2023

How to ride the waves of EU tax developments

The EU tax developments panel discussed a selection of recent and upcoming tax developments at the EU level, including the following topics: the adoption of the OECD's Pillar Two rules in the EU; the ATAD 3/Unshell Directive proposal; the EU's debt-equity bias reduction allowance (DEBRA) proposal; the BEFIT (Business in Europe: Framework for Income Taxation); withholding tax (WHT) recoveries; practical experiences of DAC6; and the tax enablers consultation (SAFE).

Released on Mar 29, 2023

Emerging jurisprudence surrounding entitlement to treaty benefits in India

This article analyses the sufficiency of a tax residency certificate in claiming treaty benefits in light of the principal purpose test introduced under the OECD led multilateral instrument framework, domestic general anti-abuse rules and recent Indian judicial developments.

Released on Mar 29, 2023