By Oliver Biernat, Benefitax GmbH
German companies or permanent establishments that are involved in intragroup cross-border services exceeding a value of EUR 600,000 p.a., or in intragroup cross-border supplies exceeding a value of EUR 6 million p.a., must present transfer pricing documentation to the German tax authorities that corresponds to strict and detailed German regulations. Companies that do not fulfil this obligation, or cannot prove that the transfer prices are correct, must expect severe penalties of up to EUR 1 million and may be faced with a high profit estimation from the tax offce.
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By Alan Rajah, Lawrence Grant
From 06 April 2021, the new UK IR35 off-payroll working rules come into force for the private sector. The responsibility for assessing IR35 will now pass to the end client. The end client will be required to review the arrangement with the contractor providing services via their Personal Service Company (PSC) and determine whether the status of the engagement is a deemed employment.
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By Bernhard Schwechel, FACT GmbH
A draft law was published regarding the implementation of the Anti-Tax Avoidance Directive (“ATAD draft bill”).
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By Anjali Kukreja and Raghu Marwah, R.N. Marwah & Co. LLP
Globally, investors and companies are attempting to move out of China following the COVID-19 pandemic and are analysing alternative jurisdictions offering a high return on capital, low tax costs, and ease of doing business. India is seen as a very attractive destination based on these investor criteria. The world is today witnessing excess liquidity, due to slashed interest rates and different emergency measures taken by various countries to counter the pandemic-led economic fallout.
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By Roberto M. Cagnazzo, Studio Tributario Cagnazzo
The decision of the EU Court of Justice (ECJ) in cases C-116/16 and C-117/16 has provided important clarifications on the abuse of law and the notion of beneficial owner.
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By Sandrine Debétaz, Bonnefous & Cie S.A.
Are you a foreign company holding a significant interest in a Swiss company? Manage your cash flow in the event of dividend distribution by submitting a request to the Swiss Federal Tax authority (SFTA) to benefit from the notification procedure rather than paying withholding tax!
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By Oliver Biernat, Benefitax GmbH
COVID-19 currently has a massive impact on our lives and our economy. Many companies experience declining sales and profits, some industries even struggle to survive. Therefore, in internationally operating groups the question arises as to how the unplanned fluctuations in operating results can be adequately taken into account and documented in transfer prices.
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By Graeme Saggers, Nolands
The Zambian Government announced the termination of the Double Taxation Agreement (“DTA”) between the Government of the Republic of Zambia and the Government of the Republic of Mauritius on the 22nd of June 2020 by way of a written notice of termination given to Mauritius.
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By Brigitte Jakoby, Jakoby Dr Baumhof – Wirtschaftsprüfer Steuerberater Rechtsanwälte
In the matter “Aures Holdings” (AH), the European Court of Justice (ECJ) had to evaluate whether the transfer of the administrative seat of a company from one Member State to another could involve the transfer of losses between Member States. AH is a company incorporated under the Netherland’s law, whose registered seat and place of effective management were originally located in the Netherlands. AH was a tax resident of the Netherlands (unlimited tax liability) and incurred a loss of EUR 2,792,187.00 in the financial year 2007. On 01 January 2008, AH initially set up a permanent establishment in the Czech Republic and on 01 January 2009 transferred its place of effective management to the address of the permanent establishment. In this context, AH also transferred its tax residence to the Czech Republic and applied to the Czech tax authorities for the deduction of the loss which had been incurred in the Netherlands until 2007.
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By Irina Orlova-Panina, Nektorov, Saveliev & Partners
Russian tax authorities started to apply rules introduced in 2017 that establish the limits by which taxpayers can reduce their tax base. Now more efforts should be made by taxpayers to prove the “good faith” of their counterparties and business substance of the transactions. Taxpayers should proactively mitigate tax risks for previous and future tax periods.
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