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Tag Archive for BEPS

OECD Updates BEPS Financial Payments And Tax Treaties

William Byrnes

The 2015 Report on BEPS Action 4 established a common approach which directly links an entity’s net interest deductions to its level of economic activity, based on taxable EBITDA. Further work on two aspects of the common approach was completed in 2016 and this is included in this update.

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Peru Joins The Inclusive Framework On BEPS

William Byrnes

Following the first meeting of the Inclusive Framework on BEPS in Japan, on 30 June – 1 July, and recent regional meetings, more countries and jurisdictions are joining the framework. The Inclusive Framework on BEPS recently welcomed Peru bringing to 91 the total number of countries and jurisdictions participating on an equal footing in the Project.

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Monaco Strengthens International Tax Co-operation

William Byrnes

Monaco today deposited its instrument of ratification for the Convention on Mutual Administrative Assistance in Tax Matters (“the Convention”). By doing so, Monaco underlines its commitment to fighting tax evasion and avoidance and takes another important step in implementing the Standard for Automatic Exchange of Financial Account Information in Tax Matters developed by the OECD and G20 countries as well as automatic exchange of Country-by-Country Reports under the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project.

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Transfer Pricing Summit—Register Today!!

The issue of transfer pricing has never been a bigger issue than now. With news of the IRS auditing U.S. corporations who operate outside of the country, the Organization for Economic Cooperation and Development (OECD) latest action plans under the Base Erosion Profit Sharing (BEPS) project, and the U.K. voting to leave the European Union (Brexit), the effects with be seen by U.S. multinationals. You have the opportunity to learn from top tax experts who will discuss and analyze the transfer pricing market.

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Transfer Pricing Moves Ahead: OECD and G20 Broaden Intra-Group Services Provisions

Ronald Marini

Transfer pricing methodologies are beginning to spread far beyond the narrow confines of section 482. Consider two very recent examples:

• Argentina had enacted revenue raising measures designed to penalize companies that would shift profits from Argentina to a tax haven. Argentina used an OECD BEPS transfer pricing rationale in enacting these anti-tax-haven provisions. Most Argentinian enterprises that make use of tax havens use Panama for that tax haven purpose, in part because of the commonality of language. Panama sued Argentina, arguing that the Argentinian tax restrictions are an artificial trade constraint. Panama brought suit at the World Trade Organization (WTO). Other countries are now involved. Panama won the initial round at the WTO, but Panama has joined the OECD’s Global Forum, a measure that would ultimately bring the country into compliance with the OECD’s Transfer Pricing Guidelines. Panama’s attack is similar to the attack on DISC before GATT three decades ago

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IRS Issues Proposed Country-by-Country Reporting Rules!

Ronald Marini

The OECD in October released its final recommendations under its project to combat tax base erosion and profit shifting, which included a plan for having companies file reports in their home jurisdictions detailing their business activities such as taxes accrued, profits and number of employees.

The IRS has now proposed rules requiring large companies to report information for each country of operation including the amount of revenue, profit or loss, capital and accumulated earnings, consistent with OECD recommendations designed to combat base erosion and profit shifting. The rules (REG-109822-15) would apply to U.S. parent companies with at least $850 million in annual revenue for the preceding annual accounting period, for the taxable year beginning on or after the rules are made final, ensuring that, for most companies, they won’t take effect before Jan. 1, 2017.

The proposed regulations affect U.S. persons that are the parent of a MultiNational Enterprise (MNE) group, with annual revenue for the preceding annual accounting period of $850 million or more. Read more

TEI-SJSU High Tech Tax Institute – 11/9-11/10, 2015 in Palo Alto, California

As a Reminder, the 31st Annual TEI-SJSU High Tech Tax Institute will be held on November 9 and 10 at the Crowne Plaza Cabana in Palo Alto, California.  Topics include practical consequences of BEPS, EU hot topics, Sections 41 and 199 applied to cloud computing transactions, repatriation strategies, and IRS developments.  Speakers include Heather Maloy, Joe Mikrut, Larry Langdon, Jim Fuller, Eli Dicker and Ivan Humphreys.  The agenda includes speakers from China, Ireland and the UK.

For the complete agenda and speaker list, as well as online registration, please visit http://www.tax-institute.com.

A discount is offered for TEI members. Read more

TEI-SJSU High Tech Tax Institute – November 9 & 10, 2015 in Palo Alto

The 31st Annual TEI-SJSU High Tech Tax Institute will be held on November 9 and 10 at the Crowne Plaza Cabana in Palo Alto, California.  Topics include practical consequences of BEPS, EU hot topics, Sections 41 and 199 applied to cloud computing transactions, repatriation strategies, and IRS developments.  Speakers include Heather Maloy, Joe Mikrut, Larry Langdon, Jim Fuller, Eli Dicker and Ivan Humphreys.  The agenda includes speakers from China, Ireland and the UK.

For the complete agenda and speaker list, as well as online registration, please visit http://www.tax-institute.com.

A discount is offered for TEI members. Read more

OECD To Release BEPS Package To Stop Tax Avoidance!

The OECD will release the final package of measures for a coordinated international approach to reform the international tax system under the OECD/G20 Base Erosion and Profit Shifting (BEPS) strategy to tackle tax avoidance by multinational companies on Monday October 5, 2015.

The final outcomes of the BEPS Project will be presented by Pascal Saint-Amans, Director of the OECD Centre for Tax Policy and Administration, during a webcast news conference at 2:00 p.m. (CET).

A technical briefing via webcast on the BEPS deliverables will follow, at 4:00 p.m. (CET).

The OECD/G20 BEPS Project provides governments with clear international solutions to Read more

Cloud Computing and Other High Tech Tax Issues

Cutting edge activities challenge tax rules written with different business methods and products in mind. For example, cloud computing raises issues as to how longstanding tax provisions, such as the research tax credit and Section 199 manufacturing deduction apply. This and other current tax topics relevant to high tech companies and their tax advisers are on the agenda for the 31st Annual TEI-SJSU High Tech Tax Institute, November 9 & 10, 2015 in Palo Alto. Additional topics include BEPS Relevance, M&A activities, state tax haven activities, European Union hot topics and how these topics also affect the income tax provision on financial statements.

For the complete agenda and list of speakers, as well as to register, please visit Read more

BEPS – The View From Around the World

We hear a lot about the OECD’s BEPS project (base erosion and profit shifting) and its action items. What is the relevance of “country-by-country” reporting for transfer pricing documentation? Does the statement on harmful tax practices mean that the US should adopt a patent box? The 31st Annual TEI-SJSU High Tech Tax Institute, scheduled for November 9 and 10, 2015 in Palo Alto, will address these questions and more. A BEPS panel will include attorneys from China, Ireland and the U.S. to share how other countries are responding the BEPS project and what it means for your company or clients.  Another panel with practitioners from the UK and Ireland will explore hot topics in the EU. Heather Maloy, (former) Commissioner for the IRS Large Business & International Division will also be speaking, along with numerous other experts on hot tax topics for high tech Read more

Structuring Investment in India – Does Mauritius Holdco Work?

Tax authorities worldwide distaste the word “treaty shopping” as such. In recent times, OECD has worked out guidelines for BEPS and most U.S. tax treaties have “Limitation of Benefit” clause that prevents abusive tax planning. However, there may still be some opportunities available to U.S. investors in India; one such avenue is investing via Mauritius Holdco structures.

A lot of foreign investors prefer to route their investment through Mauritius in India. Since the India- Mauritius double tax avoidance agreement offers exemption from capital gains tax to Mauritian residents. It has been the key incentive provided by the Indo-Mauritius tax treaty where by tax on capital gains is exempted for investors from Mauritius. As per the last finance bill almost 42% of the foreign direct investment into India is routed through Read more

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