The OECD released the OECD Secretary-General Tax Report to G20 leaders for the November 2024 meeting in Brazil
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Ahead of the G20 Leaders’ Summit under the Brazilian G20 Presidency, on November 18, 2024 the OECD released the OECD Secretary-General Tax Report to G20 Leaders for the November 2024 meeting in Brazil. In this report the Secretary-General of the OECD reports on key tax developments since his last report to G20 leaders in September 2023.
The ECOFIN Council removed Antigua and Barbuda from the EU list of non-cooperative jurisdictions for tax purposes
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During its meeting of October 8, 2024 the Economic and Financial Affairs Ministers of the European Union (ECOFIN) Council removed Antigua and Barbuda from the EU list of non-cooperative jurisdictions for tax purposes.
The European Commission calls on Hungary to abolish its retail tax regime to comply with the freedom of establishment
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On October 3, 2024 the European Commission announced that it decided to open an infringement procedure by sending a letter of formal notice to Hungary (INFR(2024)4022) for failing to bring its retail tax regime in line with the freedom of establishment as guaranteed by Articles 49 and 54 of the Treaty on the Functioning of the European Union (TFEU).
The European Commission refers Spain, Cyprus, Poland and Portugal to the CJEU for failing to notify measures transposing the Pillar 2 Directive into national law
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On October 3, 2024 the European Commission published the key decisions of the October 2024 infringements package. One of the decisions is the decision of the European Commission to refer Spain, Cyprus, Poland and Portugal to the Court of Justice of the European Union (the CJEU) for failing to notify measures transposing into national law the Council Directive (EU) 2022/2523 (the Pillar 2 Directive).
Amount B of Pilar One - The OECD/G20 Inclusive Framework on BEPS releases a MCAA on the Application of the Simplified and Streamlined Approach
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On September 26, 2024 the OECD/G20 Inclusive Framework on BEPS (Inclusive Framework) is publishing a Model Competent Authority Agreement (MCAA) to facilitate the implementation of its political commitment on Amount B of Pillar One. This practical tool is designed to be particularly beneficial for jurisdictions with limited resources and data availability.
The CJEU rules that Apple received illegal State Aid from Ireland and has to pay an additional EUR 13 billion in Irish taxes
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On September 10, 2024 on the website of the Court of Justice of the European Union (CJEU) the judgment of the CJEU in Case C-465/20 P, Commission v Ireland and Others, ECLI:EU:C:2024:724, was published.
Today the CJEU gave final judgment in the matter, sets aside the judgment of the General Court and gives final judgment in the matter and confirms the European Commission’s 2016 decision that Ireland granted Apple unlawful aid which Ireland is required to recover. By doing so, the CJEU ruled in line with the opinion of Advocate General Pitruzella as delivered on November 9, 2023.
As a result of todays judgment Apple will have to pay an additional €13 billion of Irish taxes.
Australia and Slovenia have signed a Tax Convention
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On September 9, 2024 the Australian Treasury issued a press release that on that same date the Governments of Australia and the Republic of Slovenia had signed a Convention for the elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance (Hereinafter: the Convention).
Although the Convention has been signed, it has not entered into force yet. For the Convention to enter into force, the respective ratification procedures have to have been finalized in both jurisdictions.
Below we will discuss a selection of provisions included in the Convention of which we think they might interest our readers.
The Income Inclusion Rule (IIR) to come into force in Switzerland in 2025
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During its meeting of September 4, 2024 the Swiss Federal Council decided to bring the income inclusion rule (IIR) into force with effect from January 1, 2025. This international supplementary tax will complement the Swiss Qualified Domestic Minimum Top-up Tax (QDMTT) that already came into effect on January 1, 2024.
The European Commission released a Draft Act laying down a common template and electronic reporting formats for ‘country by country’ reports for feedback
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On August 1, 2024 the European Commission released a draft version of a Commission Implementing Regulation laying down a common template and electronic reporting formats for the application of Directive 2013/34/EU of the European Parliament and of the Council as regards the information to be presented in reports on income tax information for feedback. Together with this Commission Implementing Regulation the European Commission also released for Annexes for feedback.
The European Commission opened a call for evidence to evaluate the Anti-tax Avoidance Directive (ATAD)
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On July 31, 2024 the European Commission opened a call for evidence to evaluate 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 (the Anti-tax Avoidance Directive (ATAD)). The consultation runs from July 31, 2024 to August 28, 2024 (midnight Brussels time).
The CJEU ruled in Case C-39/23, Keva and Others (Free movement of capital – Taxation of dividends received by pension funds governed by public law)
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On July 29, 2024 on the website of the Court of Justice of the European Union (CJEU) the judgment of the CJEU in Case C-39/23, Keva, Landskapet Ålands pensionsfond and Kyrkans Centralfond versus Skatteverket, ECLI:EU:C:2024:648, was published.
Administrative cooperation in the field of taxation: the CJEU upholds the validity of various provisions of Council Directive (EU) 2018/822 of 25 May 2018
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On July 29, 2024 on the website of the Court of Justice of the European Union (CJEU) the judgment of the CJEU in Case C-623/22, Belgian Association of Tax Lawyers and Others, ECLI:EU:C:2024:639, was published. The request for a preliminary ruling concerns the assessment of the validity of Article 8ab(1), (5), (6) and (7) of Council Directive 2011/16/EU of 15 February 2011 on administrative cooperation in the field of taxation and repealing Directive 77/799/EEC (OJ 2011 L 64, p. 1), as amended by Council Directive (EU) 2018/822 of 25 May 2018 (OJ 2018 L 139, p. 1), in the light of the fundamental rights, in particular Articles 7, 20 and 21, and Article 49(1) of the Charter of Fundamental Rights of the European Union (‘the Charter’), and the general principle of legal certainty.
The European Commission calls on the Netherlands to bring its rules on taxation of investment funds in line with EU law
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On July 25, 2024 the key decisions of July infringement package were published on the website of the European Commission. One of the key decisions is that the European Commission decided to open an infringement procedure by sending a letter of formal notice to the Netherlands (INFR(2024)4017), for failing to extend the Dutch tax levy reduction scheme to foreign investment funds, which are comparable to domestic investment funds.
De Europese Commissie roept Nederland op zijn regels inzake belastingheffing op beleggingsfondsen in overeenstemming te brengen met het EU-recht
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Op 25 juli 2024 zijn de voornaamste beslissingen van het inbreukenpakket voor juli gepubliceerd op de website van de Europese Commissie. Een van deze beslissingen is dat de Europese Commissie heeft besloten een inbreukprocedure in te stellen door Nederland een aanmaningsbrief (INFR(2024)4017) te sturen wegens het niet uitbreiden van de Nederlandse regeling voor belastingvermindering tot buitenlandse beleggingsfondsen, die vergelijkbaar zijn met de binnenlandse beleggingsfondsen.
Rijkswet van houdende goedkeuring van het belastingverdrag tussen het Koninkrijk der Nederlanden, ten behoeve van Curaçao, en de Republiek Malta gepubliceerd
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In het Staatsblad van het Koninkrijk der Nederlanden van 25 juli 2024 is de Rijkswet van 17 juli 2024, houdende goedkeuring van het op 18 november 2015 te Valletta tot stand gekomen Verdrag tussen het Koninkrijk der Nederlanden, ten behoeve van Curaçao, en de Republiek Malta tot het vermijden van dubbele belasting en het voorkomen van het ontgaan van belasting met betrekking tot belastingen naar het inkomen gepubliceerd.
Switzerland and Hungary sign a protocol amending their existing DTA
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On July 12, 2024 the Swiss Federal Council and the Government of Hungary signed a Protocol to amend the Convention between the Swiss Confederation and Hungary for the Avoidance of Double Taxation with Respect to Taxes on Income and on Capital signed at Budapest on 12 September 2013 (hereinafter: “the Convention”). Considering the ongoing discussions on whether or not the implementation of Pillar 2 is compatible with international law this Protocol a.o. contains a very interesting Article regarding the implementation of Pillar 2.
Republicans on the United States House Committee on Ways & Means demand the Biden Administration to take decisive action to combat Canada’s Digital Services Tax
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On July 11, 2024 the Chairman of the United States House Committee on Ways & Means Jason Smith and Trade Subcommittee Chairman Adrian Smith sent a letter, that was signed by every Republican on the Committee, to the United States Trade Representative (USTR), Ambassador Katherine Tai. The letter calls on the Biden Administration to utilize authorities under Section 301 of the Trade Act to send a strong response given the threat Canada’s Digital Services Tax (DST) poses to American workers and businesses.
AG Kokott answers the question whether the free movement of capital requires a Member State to treat non-resident internally managed and resident externally managed investment funds equally for tax purposes?
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On July 11, 2024 on the website of the Court of Justice of the European Union (CJEU) an opinion of Advocate General Kokott in Case C-18/23, F S.A. versus Dyrektor Krajowej Informacji Skarbowej, ECLI:EU:C:2024:609, was published.
The Lithuanian Tax Disputes Commission referred questions on the anti-abuse rule of the Parent-Subsidiary Directive to the CJEU for a preliminary ruling
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On June 21, 2024 on the website of the Court of Justice of the European Union (hereinafter: CJEU) questions referred by the Mokestinių ginčų komisija prie Lietuvos Respublikos vyriausybės (Tax Disputes Commission under the Government of the Republic of Lithuania) to the Court of Justice of the European Union (hereinafter: CJEU) regarding the applicability of the anti-abuse rule of the Parent-Subsidiary Directive (Council Directive 2011/96/EU) for a preliminary ruling were published. The request of the Lithuanian Tax Disputes Commission was lodged on March 26, 2024 (Case C-228/24, Nordcurrent group’ UAB versus Valstybinė mokesčių inspekcija prie Lietuvos Respublikos finansų ministerijos).
