Dutch Government sent a legislative proposal tightening the interest limitation rule to Parliament for approval
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On October 15, 2021, the Dutch Government send a.o. a legislative proposal amending the Belastingplan 2022 (the tax package for the year 2022) to the Dutch Parliament for approval. In the new legislative proposal the Dutch Government a.o. proposes to tighten the interest limitation rule that was introduced when implementing Council Directive (EU) 2016/1164 of 12 July 2016 laying down rules against tax avoidance practices that directly affect the functioning of the internal market (ATAD 1) into Dutch law. Furthermore the Government proposes to increase the corporate income tax rate in the 2nd bracket.
Irish Ministry of Finance publishes the responses it received on its public consultation on the OECD’s Two-Pillar Solution
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As we reported earlier, on July 20, 2021 the Irish Ministry of Finance launched a public consultation regarding the two-pillar solution to address the tax challenges arising from the digitalisation of the economy. The Irish Ministry of Finance has now published the responses it received with respect to that consultation. The Irish Ministry of Finance published 35 responses.
OECD – Documents released with respect to the October 13th G20 Finance Ministers and Central Bank Governors Meeting
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On October 13, 2021, the G20 Finance Ministers and Central Bank Governors (FMCBGs) met for their fourth official meeting under the Italian G20 Presidency. During this meeting several tax subjects were discussed. In this respect several OECD reports were released and presented to the G20 Finance Ministers and Central Bank Governors. By clicking below on the titles of the respective documents, you will be forwarded to the respective document.
CJEU judges in the joined Cases C‑45/20 and C‑46/20, Finanzamt N (Communication de l’affectation) (VAT – Germany – Allocation to private assets is assumed or presumed in the absence of (sufficient) evidence of allocation to the assets of the business)
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On October 14, 2021, on the website of the Court of Justice of the European Union (CJEU) the judgment of the Court in the joined Cases C- 45/20 (E versus Finanzamt N) and C-46/20 (Z versus Finanzamt G) (ECLI:EU:C:2021:852), was published.
These requests for a preliminary ruling concern the interpretation of Article 167 and 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 2009/162/EU of 22 December 2009 (OJ 2010 L 10, p. 1) (‘the VAT Directive’).
The requests have been made in two sets of proceedings concerning the rejection by those tax authorities of deductions of value added tax (VAT) made by E and Z, on account of the failure to take an allocation decision identifiable by the tax authorities before the statutory deadline for submitting the annual turnover-tax return expired.
Advocate General: “The Parent-Subsidiary Directive (Directive 90/435/EEC) does not preclude a system of advance payments and tax credits at the time of redistribution of dividends”
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On October 14, 2021 on the website of the Court of Justice of the European Union (CJEU) the interesting opinion of Advocate General Kokott in Case C-556/20, Schneider Electric and Others (ECLI:EU:C:2021:857), was published. The referring court expressly asks only whether the advance payment of tax provided for in Article 223e of the French Code général des impôts (General Tax Code; the ‘CGI’) is compatible with Article 4 of the Parent-Subsidiary Directive, in view of Article 7(2) thereof. The case in which the referring court seeks an answer relates to the distribution by a subsidiary established in another Member State to its parent company in France of dividends which the latter redistributes to its shareholders.
The Dutch Government opened a public consultation on a legislative proposal to implement Council Directive (EU) 2021/514 (DAC7)
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On October 8, 2021, the Dutch Government opened a public consultation on a legislative proposal to implement Council Directive (EU) 2021/514 of 22 March 2021 amending Directive 2011/16/EU on administrative cooperation in the field of taxation commonly also referred to as DAC7. The consultation period runs from October 8, 2021 until November 8, 2021.
The OECD released an updated Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy together with a detailed implementation plan
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On October 11, 2021, the OECD release an updated version of the Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy. As per October 8, 2021 the Statement has been signed by 136 Member jurisdictions of the OECD/G20 Inclusive Framework on BEPS. The latest signatories to the statement are Estonia, Hungary and Ireland.
Conclusie van de AG mbt de crisisheffing - Management beloning - Eigen loonverstrekking of loon van derden - Andere concern-maatschappij
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Op 8 oktober 2021 is op de website van de Rechtspraak de conclusie gepubliceerd van Advocaat-Generaal Wattel, in de zaak 21/00836, (ECLI:NL:PHR:2021:842). In deze zaak draait het om de vraag of in de onderhavige casus een crisisheffing (Art. 10 en art. 32bd Wet LB 1964) zou moeten worden ingehouden over een managementbeloning die door het management bij een beursgang is ontvangen van een 'andere concernmaatschappij'. In essentie draait het om de vraag of in de onderhavige casus sprake is van een eigen loonverstrekking of loon van derden? Hierbij is HR BNB 2001/82 van belang voor de beantwoording van de vraag of de maatschappij van waaruit de managementbeloning daadwerkelijk wordt ontvangen kwalificeert als ‘een andere concern-maatschappij’ die de voordelen in opdracht en voor rekening van de werkgever verstrekt.
Ireland to join the OECD agreement to address the tax challenges arising from the digitalisation of the economy
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On October 7, 2021 the Irish Minister for Finance, Paschal Donohoe, has received Government approval to join the international agreement to reform the international tax rules to address the challenges arising from the digitalisation of the global economy.
European Parliament adopts a resolution on reforming the EU policy on harmful tax practices (including the reform of the Code of Conduct Group)
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During its plenary session of October 7, 2021, the European Parliament (EP) outlined its priorities for reforming EU policy on harmful tax practices as well as a blueprint for a new system to assess national tax policies. During this session the EP also adopted a resolution on reforming the EU policy on harmful tax practices (including the reform of the Code of Conduct Group).
The Government of the Hong Kong Special Administrative Region responds to the inclusion of Hong Kong in the EU's watchlist on tax co-operation
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On October 5, 2021 the European Union (EU) announced the inclusion of Hong Kong in its watchlist on tax co-operation as it considered that the non-taxation of certain foreign sourced passive income in Hong Kong might lead to situations of "double non-taxation". The Government of the Hong Kong Special Administrative Region (HKSAR) responded to media enquiries on the announcement. Below you will find the text that was published on October 5, 2021 the website of the Hong Kong Inland Revenue.
CJEU - The Advocate General is of the opinion that Finnish tax legislation with respect to open-ended investment funds is in breach with the right of free movement of capital
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On October 6, 2021 on the website of the Court of Justice of the European Union (CJEU) the opinion of Advocate General H. Saugmandsgaard Øe in Case C-342/20, Veronsaajien oikeudenvalvontayksikkö (Exonération des fonds d’investissement contractuels) (ECLI:EU:C:2021:823), was published.
CJEU upholds the classification of the Spanish tax rules on the amortisation of financial goodwill as State aid incompatible with the internal market
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On October 6, 2021, on the website of the Court of Justice of the European Union (CJEU) several judgments of the CJEU on the matter whether or not the Spanish tax rules on the amortisation of financial goodwill classify as State aid incompatible with the internal market. These judgments are published under the case numbers ECLI:EU:C:2021:792 (Case C‑50/19 P, Sigma Alimentos Exterior SL versus European Commission), ECLI:EU:C:2021:793 (Joined Cases C‑51/19 P (World Duty Free Group SA, formerly Autogrill España SA versus European Commission) and C‑64/19 P (Kingdom of Spain versus European Commission)), ECLI:EU:C:2021:794 (Case C‑52/19 P, Banco Santander SA versus European Commission), ECLI:EU:C:2021:795 (Joined Cases C‑53/19 P (Banco Santander SA and Santusa Holding SL versus European Commission) and C‑65/19 P (Kingdom of Spain versus European Commission)), ECLI:EU:C:2021:796 (Case C‑56/19 P, Axa Mediterranean Holding SA versus European Commission) and ECLI:EU:C:2021:797 (Case C‑55/19 P, Prosegur Compañía de Seguridad SA versus European Commission).
Belastingen van rechtsverkeer - Moeten 2 in 1 akte geregelde afsplitsingen als één geheel worden beschouwd, of moeten beide afsplitsingen afzonderlijk worden getoetst aan de voorwaarden voor de splitsingsvrijstelling?
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Op 4 oktober 2021 is op de website van de Rechtspraak de uitspraak gepubliceerd van de Rechtbank Noord-Nederland, in de zaak LEE 20/1169, (ECLI:NL:RBNNE:2021:4174). Een BV heeft bij notariële akte de deelnemingen waarin haar operationele activiteiten plaatsvonden afgesplitst naar een nieuw opgerichte vennootschap. Bij dezelfde akte heeft die BV een registergoed afgesplitst naar eiseres. Tussen partijen is in geschil of op de verkrijging van dat registergoed door eiseres de splitsingsvrijstelling van artikel 15, eerste lid, onderdeel h van de WBR en artikel 5c van het UBBR van toepassing is. De eerste vraag die daarbij moet worden beantwoord, is de vraag of de beide in de akte geregelde afsplitsingen als één geheel moeten worden beschouwd, of dat die beide afsplitsingen afzonderlijk moeten worden getoetst aan de geldende voorwaarden voor de splitsingsvrijstelling. Daarna dient beoordeeld te worden of aan de voorwaarden voor de splitsingsvrijstelling is voldaan.
EU decisions of October 5, 2021 regarding its list of non-cooperative tax jurisdictions and its state of play document
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On October 5, 2021, during its ECOFIN meeting the Council of the EU decided to remove Anguilla, Dominica and Seychelles from the EU list of non-cooperative jurisdictions for tax purposes. All three had previously been placed on the list because they did not meet the EU’s tax transparency criteria of being ranked as at least ‘largely compliant’ by the OECD Global Forum regarding the exchange of information on request. As a result, nine jurisdictions remain on the EU list of non-cooperative jurisdictions: American Samoa, Fiji, Guam, Palau, Panama, Samoa, Trinidad and Tobago, US Virgin Islands and Vanuatu.
Court of Appeal of the Hague: “The fact that a group relief was used in previous years does not influence a taxpayer’s right to take into account a liquidation loss for Dutch corporate income tax purposes”
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On September 30, 2021, on the website of the Dutch courts (De Rechtspraak) the judgment of the Court of Appeal of The Hague in Case number: BK-19/00759, ECLI:NL:GHDHA:2021:1714 was published. In the underlying case the taxpayer and the tax authorities are disputing whether or not the taxpayer is entitled to take a liquidation loss into account with respect to the liquidation of 2 of its (indirect) Irish subsidiaries.
Spain and Andorra deposited their instruments of ratification for the MLI and Namibia has signed the MLI
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The OECD has announced that on September 28, 2021 Spain deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (The MLI). Andorra followed a day later (September 29, 2021). On September 30, 2021 Namibia signed the MLI.
Het Nederlandse kabinet acht het niet opportuun een solidariteitsheffing met terugwerkende kracht in te voeren
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Op 29 september 2021 heeft de staatssecretaris van Financiën aan de Tweede Kamer een reactie op de motie van het lid Amhaouch (CDA) c.s. waarin het kabinet wordt verzocht beleidsvarianten te verkennen voor invoering van een tijdelijke solidariteitsheffing voor bedrijven die in de coronacrisis extra winst hebben gemaakt, waarbij bedrijven die ondersteuning nodig hebben worden ontzien gestuurd. Naar de mening van het kabinet is het niet opportuun een solidariteitsheffing in te voeren met terugwerkende kracht (materieel of formeel) en een rechtstreeks verband tussen de winst en de coronacrisis is complex en bewerkelijk.
The European Commission opens the first phase of a public consultation “Withholding taxes - new EU system to avoid double taxation”
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On September 29, 2021 The European Commission opened the first phase of a public consultation: “Withholding taxes - new EU system to avoid double taxation”. During this phase European Commission searches for input for a so-called inception impact assessment. The period during which input can be given for the inception impact assessment runs from September 28, 2021 until October 26, 2021 (midnight Brussels time).
