Updates on EU measures and developments

This panel, at the 11th Annual IBA Finance & Capital Markets Tax Virtual Conference, discussed a selection of European Union measures and developments, starting with the United Kingdom experience after Brexit, then discussing the recent European Commission proposal for a Directive regarding shell entities of 22 December 2021 (COM (2021) 565 final, expected to be implemented by June 2023 with effect from 1 January 2024, and some case studies on withholding tax challenges.

Released on May 17, 2022

The international tax aspects of 'de-SPACing'

A report on a conference session at the 11th Annual IBA Finance and Capital Markets Tax Virtual Conference 2022 on special purpose acquisition companies, specifically the ‘de-SPACing’ process, in which a private company is acquired, in respect of international tax.

Released on May 12, 2022

Tax litigation

This panel, at the 11th Annual IBA Finance and Capital Markets Tax Virtual Conference 2022, examined recent tax cases in the courts of various jurisdictions. The cases discussed covered a wide range of topics that impact cross-border finance and capital markets, including discussions on alleged treaty abuse, attorney–client privilege, financing transactions and beneficial ownership.

Released on May 12, 2022

Transfer pricing: anticipating and responding to new challenges

Released on May 5, 2022

Resolving distortions of the inverted duty structure: disconnect between the legal and economic perspectives

This article discusses the anomalies of the inverted duty structure in the Indian goods and services tax system against the backdrop of prevalent global methods for resolving such an issue, and recent Indian judicial and legislative developments in this regard.

Released on May 5, 2022

Funds (Session report from the 11th Annual IBA Finance and Capital Markets Tax Virtual Conference 2022)

A report on a panel at the from the 11th Annual IBA Finance and Capital Markets Tax Virtual Conference 2022. The panel discussed current tax issues and recent developments in fund structuring and new trends in investment strategies.

Released on May 5, 2022

The Principality of Andorra as a privileged player in the new paradigm of human capital mobility

The trend of an increased number of employees working remotely has led to new competition between states to attract these individuals, either through residence/citizenship via investment visas or privileged tax regimes that usually set flat tax rates and do not tax foreign income. Andorra is an important player in this area because it offers a unique environment to live in, with moderate taxation and without any special rules that could be challenged in the future. This article explains the main features to consider when moving to Andorra.

Released on May 5, 2022

The impact of base erosion and profit shifting on international finance

This conference panel discussed the impact of base erosion and profit shifting on international finance, focusing specifically on interest deduction rules and withholding tax rates, which have become crucial in light of rising interest rates

Released on Apr 22, 2022

British Virgin Islands: economic substance requirements

This article considers the economic substance regime introduced in the British Virgin Islands in 2019 following the requirements of the Organisation for Economic Co-operation and Development's Forum on Harmful Tax Practices and the European Union's Code of Conduct Group for business taxation.

Released on Apr 22, 2022

The death of holding companies

The panel at this conference session discussed the death of holding companies. Rhe speakers discussed what has been driving the attack on the use of holding companies, and then focused on the following three areas: (1) the Denmark cases; (2) the Anti-Tax Avoidance Directive 3 (ATAD 3); and (3) Pillar 2.

Released on Apr 22, 2022

Update on mergers and acquisitions

A session at the 11th Annual IBA Finance & Capital Markets Tax Virtual Conference on the use of holding companies in mergers and acquisitions.

Released on Apr 20, 2022

The taxation of non-Irish resident landlords: Revenue manual published

The Revenue Commissioners published the Tax and Duty Manual on Taxation of Non-Irish Resident Landlords to take account of the Finance Act 2021 and the transition from the income tax basis to the corporation tax basis of taxation for non-resident corporate landlords who are in receipt of rental income from Irish real estate.

Released on Apr 20, 2022

What you need to know about the new Irish Code of Practice for Revenue Compliance Interventions

A new Code of Practice for Revenue Compliance Interventions (the 'Code') was recently published in Ireland. From 1 May 2022, the Code will significantly change interactions between the Revenue Commissioners and taxpayers. 'Aspect queries' are no longer part of the compliance intervention framework and have been replaced and modified by the new concept of a 'risk review'. This is significant as it impacts a taxpayer's ability to make an 'unprompted' voluntary disclosure. In certain cases, this will increase the level of penalties applicable to an undeclared tax liability.

Released on Apr 20, 2022

Update on US tax reform

The panel discussion focused on five topics, including certain provisions included in the US Build Back Better Act (BBB, Senate Finance Committee version); US offshore lending developments; and proposals affecting the deductibility of interest expense.

Released on Apr 11, 2022

Most favoured nation clause applicable to royalties covered by the Colombian tax treaty network

The Double Taxation Treaty between Colombia and the United Kingdom entered into force on 1 January 2020, and unlike other treaties in force, it excluded payments for technical services, technical assistance and consulting services from Article 12 (Royalties). Therefore, absent a permanent establishment, payments for those services would no longer be subject to a ten per cent withholding tax but would be treated as business profits. On these grounds, the analysis of the most favoured nation clauses agreed between Colombia and other countries became critical. The analysis was performed by Colombia's tax authority in a ruling issued in early 2020. Although official rulings are not binding to taxpayers, they are mandatory to tax officials. The analysis is explained in this article.

Released on Apr 6, 2022

Global developments – a government perspective (aligning the ducks)

This panel at the eleventh annual IBA Finance and Capital Markets Virtual Conference reviewed global developments in the field of taxation, which are driven at a supra-governmental level.

Released on Apr 6, 2022

Tax regime for virtual digital assets: boon or bane for the crypto industry?

India has recently provided a framework for the taxation of crypto assets. The move has been appreciated by the industry; however, in the authors’ view, the regressive tax policy adopted may do more harm than good.

Released on Apr 6, 2022

Development of the carbon market in Brazil and current tax challenges

Due to the urgent need to mitigate the climate crisis, the carbon credit mechanism has been seen as a new market business opportunity that the private sector in particular has been investing in globally. The current lack of legal provision in Brazil on the definition of the legal nature of carbon credit operations has allowed a broad scenario of debates and interpretations of the definition and relevant legal regulatory and tax impacts connected to it.

Released on Apr 6, 2022

Digital economy update

A report on a session at the 11th Annual IBA Finance & Capital Markets Tax Virtual Conference. The panel sought to address and provide insight on the following topics: the status of the digital service tax across different jurisdictions; the current attitudes of the tax authorities with digital businesses, particularly in relation to enforcement; and other developments including the Directive on Administrative Cooperation 7.

Released on Mar 11, 2022

Impact of global changes on emerging countries

A report on a session at the 11th Annual IBA Finance and Capital Markets Tax Virtual Conference. Panellists from India, Korea and South Africa, three leading global emerging countries, discussed four main topics: perspectives on the OECD Pillars One and Two; the promotion of inbound investment contrasted with trends in enforcement; trends in tax treaty negotiations; and next steps on the tax horizon for each country.

Released on Feb 8, 2022

Tax transparency and social responsibility: managing opportunities and risks of ever-complex tax laws

This session covered several issues: the first section dealt with environmental, social and governance factors; the second covered attempts to tax products on the premise that they are ‘poor choices’ for consumers; and the third looked at taxes and public scrutiny.

Released on Jan 18, 2022

Crypto asset taxation – keeping up with the trends

A report on a conference session at the 11th annual IBA Finance and Capital Markets Tax Virtual Conference, focusing on recent developments and emerging tax issues in the area of blockchain

Released on Jan 18, 2022

Taxing the digital economy in sub-Saharan Africa

The digital transformation of the world economy over the past few years has benefited a wide variety of sectors. However, it has also significantly changed the way companies do business, introducing new and more complex business models. This article explores efforts to tax the digital economy and the implications of these for sub-Saharan Africa.

Released on Dec 1, 2021

Permanent establishment taxation on foreign residents for manufacturing activities in Mexico following the 2022 tax reform

The Mexican tax reform for 2022 could trigger permanent establishment taxation for foreign companies conducting manufacturing activities in Mexico. This article explores the background to and implications of this development.

Released on Dec 1, 2021

Procedure and supporting documentation for application to the Greek non-dom taxation regime

Article 5A of Law 4172/2013, which applies from the 2020 tax year onwards, states that an individual who transfers their tax residence to Greece using the new procedure outlined in this article can be subject to an alternative method of taxation for income generated abroad.

Released on Nov 24, 2021

Implications of tax incentives on foreign direct investment decisions

Africa has been urged to boost its infrastructure development by attracting significant inflows of foreign direct investments (FDIs). There are several benefits attributed to FDIs which explain the increasing efforts to attract them, including productivity gains, technology transfers and market access.

Released on Nov 10, 2021

The statute of limitations for tax debts under Portuguese case law: a never-ending story

The legal provision that establishes an eight-year statute of limitations for tax debts has been interpreted broadly by Portuguese tax courts, in such a way that it is essentially rendered meaningless. This article argues that this contravenes both the General Tax Law and taxpayers’ basic rights to legal certainty under the Portuguese Constitution.

Released on Nov 10, 2021

Nigeria: an update on recent tax developments

There are two significant developments that may alter the face of taxation in Nigeria at a domestic and international level. The first is the possibility of a decentralised VAT system, whereby each of the 36 states of the federation would have the right to impose and administer VAT on all taxable supplies. The second is Nigeria’s refusal to endorse the Organisation for Economic Cooperation and Development Inclusive Framework’s Pillar One proposal on tackling the tax challenges of digitalisation.

Released on Oct 6, 2021

Deductibility of losses on bad debts: new guidelines from the Italian Revenue Office

The Italian Revenue Office, through its answer to Ruling No 342 of 13 May 2021, returned to the issue of the deductibility for imposta sul reddito sulle società purposes of losses on bad debts of small amounts that expired more than six months previous. It clarified (once again) the conditions required by the legislator and the methods that can adopted to identify the taxable period of their deductibility.

Released on Oct 6, 2021

Transfer pricing update: report on a session at the 10th IBA London Finance and Capital Markets Virtual Tax Conference

The panel examined two court decisions: the US Tax Court case decision in Coca-Cola, ruled on 18 November 2020, and the Impresa Pizzarotti decision by the Court of Justice of the European Union on 9 October 2020. The OECD Transfer Pricing Guidance on Financial Transactions were also addressed.

Released on Jul 12, 2021