- Details
On February 17, 2017 the Inland Revenue Department of the Government of the Hong Kong Special Administrative Region issued a press release announcing that on that same date the Government of the Hong Kong Special Administrative Region of the People’s Republic of China and the Government of the Islamic Republic of Pakistan signed an Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (Hereafter: the DTA).
Although the DTA has been signed, it has not entered into force yet. For the DTA to enter into force, the respective ratification procedures have to have been finalized in both countries.
Below we will discuss a selection of provisions included in the DTA of which we think they might interest our readers.
- Details
On February 16, 2017 on the website of the Court of Justice of the European Union (CJEU) the opinion of Advocate General Kokott in the Case C-36/16, Minister Finansów versus Posnania Investment SA (ECLI:EU:C:2017:134) was published.
Is the transfer of property in lieu of payment in settlement of tax debts a transaction that is subject to VAT where the tax debtor is at the same time also a taxable person within the meaning of the law on VAT? This hitherto unresolved question forms the basis of the present request for a preliminary ruling.
In the main proceedings, a company availed itself of such a possibility of settling arrears of tax by means of benefits in kind, allowed under the Polish law of tax procedure, by transferring the ownership of a plot of land to the State. However, that company also operated as, among other things, a dealer in immovable property.
The question whether a tax settlement transaction can be taxed again does seem odd, however. Even in the light of the indirect nature of VAT, in which the tax burden is intended to be passed on to the customer — in this case the State — it appears strange to assume that a liability for VAT arises.
- Details
On February 16, 2017 on the website of the Court of Justice of the European Union (CJEU) the opinion of Advocate General Kokott in the Case C-74/16, Congregación de Escuelas Pías Provincia Betania versus Ayuntamiento de Getafe (ECLI:EU:C:2017:135) was published.
Does the exemption from certain taxes granted by a Member State to a religious community, even in respect of activities which have no strictly religious purpose, constitute State aid prohibited under Article 107(1) TFEU? That is, essentially, the question which is referred to the Court by a Spanish court in the present case.
The question arises against the background of various tax exemptions granted to the Catholic Church by the Kingdom of Spain pursuant to an international agreement entered into in 1979 with the Holy See. Relying upon that agreement, the Catholic Church, as the institution responsible for a church school, seeks in the present case to obtain reimbursement of a municipal tax which it is liable to pay in respect of construction works carried out on one of the school’s buildings.
- Details
On February 21, 2017 the next meeting of the EU Economic and Financial Affairs Council (Hereafter: the Council) will be held. The agenda highlights have been made available on the website of the Council of the European Union. At the moment of writing this article these agenda highlights include two tax related items.
- Details
On February 14, 2017 the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Bill introduced in August 2016 was passed by Parliament. The Bill now awaits Royal assent.
Page 3 of 5
