Saudi Arabia signed the MCAA on the Exchange of Country-by-Country Reports
- Details
From the overview of Signatories of the Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports (CbC MCAA) as available on the website of the OECD we understand that as per August 6, 2019 the total number of signatories to the CbC MCAA went up to 80.
Read more: Saudi Arabia signed the MCAA on the Exchange of Country-by-Country Reports
Dominican Republic deposits its Instrument of Ratification for the OECD’s Multilateral Convention on Mutual Administrative Assistance in Tax Matters
- Details
Based on the overview of Jurisdictions Participating in the Convention on Mutual Administrative Assistance in Tax Matters as available on the website of the OECD, on August 2, 2019 the Dominican Republic deposited its instrument of ratification, acceptance or approval for the OECD’s Multilateral Convention on Mutual Administrative Assistance in Tax Matters. The Dominican Republic signed the Convention on June 28, 2016.
The OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters entered into force on August 1, 2019 with respect to Dominica
- Details
Based on the overview of Jurisdictions Participating in the Convention on Mutual Administrative Assistance in Tax Matters as available on the website of the OECD, the OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters entered into force on August 1, 2019 with respect to Dominica.
The MLI to enter into force with respect to Luxembourg
- Details
On August 1, 2019 the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) will enter into force with respect to Luxembourg.
Read more: The MLI to enter into force with respect to Luxembourg
Eswatini joined the Inclusive Framework on BEPS
- Details
From the list of Members of the Inclusive Framework on BEPS as available on the website of the OECD it can be concluded that Eswatini is the latest jurisdiction that joined the Inclusive Framework on BEPS. Therewith the total number of jurisdictions that have joined the Inclusive Framework on BEPS comes to 132.
Non-confidential version published of the European Commission’s decision that the UK CFC Group Financing Exemption is partly to be considered to constitute illegal State Aid
- Details
On April 2, 2019 the European Commission announced that it concluded that the Group Financing Exemption and, hence, the different treatment, was partially justified. At the same time, the exemption grants a selective advantage to certain multinational companies. On July 16, 2019 the non-confidential version of this decision was made available in the State Aid Register on the European Commission's competition website.
The opinion of the AG in the joined Case C-469/18 & C-470/18, Belgische Staat (Judicial review of a tax assessment notice — Competence of the Court of Justice in the context of income tax assessment)
- Details
On July 11, 2019 on the website of the Court of Justice of the European Union (CJEU) the opinion of Advocate General Kokott in the joined Cases C-469/18 (IN versus Belgische Staat) and C-470/18 (JM versus Belgische Staat) (ECLI:EU:C:2019:597), was published.
Is a Member State implementing Union law if its tax authorities use, for an income tax assessment, evidence that the investigating authorities obtained after the discovery of a VAT carousel? In other words, does a breach of fundamental rights of the European Union when gathering evidence lead to a prohibition on the use of evidence in the context of an income tax assessment? These are essentially the questions that the Court of Justice has to consider by means of two requests for a preliminary ruling from the Belgian Court of Cassation.
The questions are asked against the background of criminal investigations in the context of which Luxembourg transferred evidence to Belgium in breach of a provision stipulating judicial authority provided for in an international agreement. This evidence was used at least for the income tax assessments. It is only these assessments that are contested by the appellants in cassation in the main proceedings (‘the appellants in cassation’).
The matter at issue is therefore the application of the Charter of Fundamental Rights of the European Union (‘the Charter’) — Article 47 of the Charter in this case — in the context of income tax assessment. This matter goes beyond the much-discussed Åkerberg Fransson judgment from 2013. In that judgment, the Court ruled that criminal proceedings regarding VAT fraud serve to ‘implement … Union law’ within the meaning of Article 51(1) of the Charter. It is now necessary to examine whether the assessment of income tax serves to implement Union law if evidence that was obtained during a pre-trial investigation initiated due to suspicion of VAT fraud is used.
The opinion of the AG in Case C-400/18 Infohos (VAT — Exemptions — Independent groups of persons — Supplies of services to members and non-members)
- Details
On July 11, 2019 on the website of the Court of Justice of the European Union (CJEU) the opinion of Advocate General Pitruzzella in the Case C-400/18, Infohos versus Belgische Staat (ECLI:EU:C:2019:607), was published.
Does an independent group of persons that comprises a number of Public Centres for Social Welfare, to which the group provides services of public interest, lose its VAT-exempt status with regard to the services which it provides to those members if it decides also to provide services to third parties?
That is, in essence, the question raised by the Belgian national court, which is asking the Court of Justice to assess the compatibility with EU law of a provision of national law which makes a VAT exemption for independent groups of persons that comprise Public Centres for Social Welfare subject to the condition that they provide services exclusively to members.
Bosnia and Herzegovina joined the Inclusive Framework on BEPS
- Details
From the list of Members of the Inclusive Framework on BEPS as available on the website of the OECD it can be concluded that Bosnia and Herzegovina is the latest jurisdiction that joined the Inclusive Framework on BEPS. Therewith the total number of jurisdictions that have joined the Inclusive Framework on BEPS comes to 131.
Read more: Bosnia and Herzegovina joined the Inclusive Framework on BEPS
CJEU judges in Case C 273/18 Kuršu zeme (VAT — Art 168 of Dir 2006/112/EC — Right to deduct input VAT — Goods supply chain — Refusal of the right to deduct on account of that chain’s existence — Obligation on the competent tax authority to establish...)
- Details
On July 10, 2019 the Court of Justice of the European Union (CJEU) judged in Case C‑273/18, SIA ‘Kuršu zeme’ versus Valsts ieņēmumu dienests (ECLI:EU:C:2019:588).
This request for a preliminary ruling concerns the interpretation of Article 168(a) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ 2006 L 347, p. 1), as amended by Council Directive 2010/45/EU of 13 July 2010 (OJ 2010 L 189, p. 1) (‘the VAT Directive’).
The request has been made in proceedings between SIA ‘Kuršu zeme’ and the Valsts ieņēmumu dienests (tax authorities, Latvia) (‘the VID’) concerning the latter’s refusal to allow the right to deduct value added tax (VAT) on acquisitions of goods made by that company from the company SIA ‘KF Prema’, on the ground that those acquisitions did not in fact take place.
The Netherlands introduced an International Tax Certainty Board which is to be involved in tax rulings with international aspects
- Details
In the Dutch Staatscourant of June 28, 2019 a Decree of the Dutch State Secretary of Finance of June 19, 2019 was published. The Decree gives substance to the policy intentions on the renewed ruling practice which the State Secretary announced in his letter of November 22, 2018. The Decree applies from July 1, 2019. In this article we will discuss a few elements of the Decree.
Gibraltar joined the Inclusive Framework on BEPS
- Details
On July 5, 2019 the OECD announced that Gibraltar joined the Inclusive Framework on BEPS. Therewith the total number of jurisdictions that have joined the Inclusive Framework on BEPS comes to 130.
CJEU judges in Case C-316/18 The Chancellor, Masters and Scholars of the University of Cambridge (VAT — Deduction of input tax — Management costs of an endowment fund that makes investments with the aim of financing the whole of the taxable person’s outpu
- Details
On July 3, 2019 the Court of Justice of the European Union (CJEU) judged in Case C‑316/18, Commissioners for Her Majesty’s Revenue and Customs versus The Chancellor, Masters and Scholars of the University of Cambridge (ECLI:EU:C:2019:559).
This request for a preliminary ruling concerns the interpretation of Article 168(a) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ 2006 L 347, p. 1) (‘the VAT Directive’).
The request has been made in proceedings between the Commissioners for Her Majesty’s Revenue and Customs (‘the Commissioners’) and The Chancellor, Masters and Scholars of the University of Cambridge (‘the University of Cambridge’) concerning the Commissioners’ refusal to allow the University of Cambridge to deduct value added tax (‘VAT’) relating to costs incurred in connection with investment activities falling outside of the scope of the VAT directive the income from which had been used to defray the cost of the whole range of the University’s activities.
CJEU: “Hungarian taxation of advertisement turnover does not constitute illegal State Aid”
- Details
On June 27, 2019 the General Court of the Court of Justice of the European Union (CJEU) judged in Case T‑20/17, Hungary (supported by the Republic of Poland) versus the European Commission (ECLI:EU:T:2019:448).
Provisions of Council Directive (EU) 2017/1852 of 10 October 2017 on tax dispute resolution mechanisms in the EU apply from July 1, 2019 onwards
- Details
Based on Article 23, of COUNCIL DIRECTIVE (EU) 2017/1852 of 10 October 2017 on tax dispute resolution mechanisms in the European Union the provisions laid down in said Directive apply to any complaint submitted from 1 July 2019 onwards relating to questions of dispute relating to income or capital earned in a tax year commencing on or after 1 January 2018.
Non-confidential version of the European Commission's decision to open an in-depth investigation into the tax treatment of Nike in the Netherlands published
- Details
On January 10, 2019 the European Commission announced that it had opened an in-depth investigation to examine whether tax rulings granted by the Netherlands to Nike may have given the company an unfair advantage over its competitors, in breach of EU State aid rules. On July 1, 2019 the non-confidential version of this decision was made available in the State Aid Register on the European Commission's competition website.
The MLI to enter into force with respect to Curaçao, Georgia and The Netherlands
- Details
On July 1, 2019 the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) will enter into force with respect to Curaçao, Georgia and The Netherlands.
Read more: The MLI to enter into force with respect to Curaçao, Georgia and The Netherlands
Belgium deposits its instrument of ratification for the MLI
- Details
On June 26, 2019 Belgium deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI).
Read more: Belgium deposits its instrument of ratification for the MLI
India deposits its instrument of ratification for the MLI
- Details
On June 25, 2019 India deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI).
Read more: India deposits its instrument of ratification for the MLI
