Details

On May 12, 2021 the General Court of the European Union (the General Court) judged in the joined Cases T-516/18 (Luxembourg v Commission) and T-525/18 (Engie, Engie Global LNG Holding Sàrl and Engie Invest International SA v Commission) (ECLI:EU:T:2021:251).

Unfortunately the full text of the judgement(s) is not yet available on the website of the General Court. The General Court however has issued a press release in this respect. In the press release issued the General Court announces that it concludes that the General Court finds that it cannot be disputed that the Engie group received preferential tax treatment owing to the non-application, in the contested tax rulings, of the provision relating to abuse of law. In the light of the objective pursued by the provision relating to abuse of law, namely to combat abusive practices in  tax matters, Engie and, in particular, the holding companies are in the same factual and legal situation as all Luxembourg taxpayers, who cannot reasonably expect to benefit as well from the  non-application of the provision relating to abuse of law in cases where the conditions for its application have been satisfied. Consequently, the General Court holds that the Commission demonstrated to the requisite legal standard a derogation from the reference framework  comprising the provision relating to abuse of law.

Details

On May 12, 2021 the General Court of the European Union (the General Court) judged in the joined Cases T-816/17 (Luxembourg v Commission) and (T-318/18 Amazon EU Sàrl and Amazon.com, Inc. v Commission) (ECLI:EU:T:2021:252).

Unfortunately the full text of the judgement(s) is not yet available on the website of the General Court. The General Court however has issued a press release in this respect. In the press release issued the General Court announces that it concludes that none of the findings set out by the Commission in the contested decision are sufficient to demonstrate the existence of an advantage for the purposes of Article 107(1) TFEU, with the result that the contested decision must be annulled in its entirety.

Details

On March 11, 2020 the Court of Justice of the European Union (CJEU) judged in Case C‑94/19, San Domenico Vetraria SpA versus Agenzia delle Entrate (supported by: Ministero dell’Economia e delle Finanze) (ECLI:EU:C:2020:193).

This request for a preliminary ruling concerns the interpretation of Articles 2 and 6 of Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes — Common system of value added tax: uniform basis of assessment (OJ 1977 L 145, p. 1; ‘the Sixth Directive’) and the principle of the neutrality of value added tax (VAT).

The request has been made in proceedings between San Domenico Vetraria SpA and the Agenzia delle Entrate (Revenue Authority, Italy) concerning deductions made by San Domenico Vetraria, in respect of the 2005 tax year, from VAT paid on sums repaid to its parent company, Avir SpA, for the secondment of a director.

Details

On March 11, 2020 on the website of the Court of Justice of the European Union (CJEU) the opinion of Advocate General Pikamäe in the Case C-231/19, BlackRock Investment Management (UK) Limited versus Commissioners for Her Majesty’s Revenue and Customs (ECLI:EU:C:2020:196), was published.

The system of value added tax (VAT) is once again being tested by new technologies. At issue this time is artificial intelligence in the field of investment in the context of different types of investment funds.

The management of special investment funds (‘SIFs’) is expressly exempted under Article 135(1)(g) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax. By contrast, the management of investment funds that are not SIFs (‘other funds’) is subject to VAT.

BlackRock Investment Management (UK) Ltd (‘BlackRock’) manages both SIFs and other funds. To do this, it uses the services of BlackRock Financial Management Inc. (‘BFMI’), a company established in the United States which belongs to the same group as BlackRock. BFMI uses an IT platform known as Aladdin which provides a broad range of investment management services, such as market analysis, monitoring performance, risk assessment, monitoring regulatory compliance and implementing transactions. Since BFMI is a company incorporated under US law, BlackRock must pay the VAT itself, under the reverse charge mechanism, in respect of the services supplied by BFMI.

The dispute in the main proceedings is between BlackRock and the Commissioners for Her Majesty’s Revenue and Customs (United Kingdom) (‘the tax authority’) and concerns the granting of the exemption provided for in Article 135(1)(g) of Directive 2006/112. In so far as BFMI provides management services using Aladdin, in the same way, to SIFs and to other funds, the question arises as to which tax scheme applies to those services, given that exemption.

The referring court, the Upper Tribunal (Tax and Chancery Chamber) (United Kingdom) asks the Court whether, and under what conditions, that exemption should be granted in view of the particular circumstances of the present case, namely the supply of management services to all types of funds taken together, using a single IT platform.

Details

On October 1, 2019 the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) entered into force with respect to the Russian Federation.

Details

On October 1, 2019 the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) entered into force with respect to India.

Details

On October 1, 2019 the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) entered into force with respect to Belgium.

Details

On September 26, 2019 Iceland deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI).

Iceland’s Status of List of Reservations and Notifications upon Deposit of the Instrument of Acceptance can be found here.

Details

On September 24, 2019 the General Court of the European Union judged in the joined cases T-755/15 (Grand Duchy of Luxembourg versus the European Commission) and T-759/15 (Fiat Chrysler Finance Europe versus the European Commission) (ECLI:EU:T:2019:670). In its judgment the General Court confirms the European Commission’s decision on the aid measure granted by Luxembourg to Fiat Chrysler Finance Europe.

Details

On September 24, 2019 the General Court of the European Union judged in the joined cases T-760/15 (Netherlands versus Commission) and T-636/16 (Starbucks Corp. and Starbucks Manufacturing Emea versus Commission) (ECLI:EU:T:2019:669). In its judgment the General Court annuls the Commission’s decision on the aid measure implemented by the Netherlands in favour of Starbucks. According to the General Court the Commission was unable to demonstrate the existence of an advantage in favour of Starbucks.

Details

On September 18, 2019 the Court of Justice of the European Union (CJEU) judged in Case C‑700/17, Finanzamt Kyritz versus Wolf-Henning Peters (ECLI:EU:C:2019:753).

This request for a preliminary ruling concerns the interpretation of Article 132(1)(b) and (c) 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 request has been made in proceedings between the Finanzamt Kyritz (Kyritz Tax Office, Germany; ‘the Tax Office’) and Mr Wolf-Henning Peters concerning the refusal to exempt from value added tax (‘VAT’) the medical care provided by the latter as a specialist in clinical chemistry and laboratory diagnostics.

Details

On September 1, 2019 the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) entered into force with respect to United Arab Emirates.

Details

On August 29, 2019 Switzerland deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI).

Details

On August 29, 2019 Canada deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI).

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.

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.

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.

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.

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.

Submit to FacebookSubmit to Google PlusSubmit to StumbleuponSubmit to TwitterSubmit to LinkedIn
INTERESTING ARTICLES