Dispute Resolution Archives - Page 4 of 14

Understanding the Role of Permanent Establishments in Transfer Pricing

FP News, Permanent Establishment, Postgraduate Programmes in Transfer Pricing, Tax Dispute Resolution / Okkie Kellerman

Permanent Establishments (PEs) play a crucial role in the realm of transfer pricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... More, as they serve as the bridge between international taxationFOR MORE INSIGHT ON INTERNATIONAL TAXATION, PLEASE READ THIS ARTICLE: Introduction to International Taxation: Key Concepts & Guidelines International Taxation encompasses the framework of laws, principles, and treaties that govern the tax obligations of individuals and entities engaged in economic activities that span multiple jurisdictions. This field addresses how income, profits, and gains are taxed when operations or investments extend... More and multinational enterprise (MNEWhat are Multinational Enterprises (MNEs)? Multinational Enterprises, commonly referred to as MNEs, are corporations that operate in multiple countries through various subsidiaries, branches, or affiliates. These entities maintain a central management structure while leveraging diverse resources, labour markets, and customer bases across borders. The fundamental aspect that distinguishes MNEs from other corporate forms is their cross-border activity, which can include... More) operations. As global trade becomes increasingly interconnected, understanding how PEs influence transfer pricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... More has become essential for tax professionals and multinationals alike.

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General Court Judgment in Amazon and Luxembourg v European Commission

EU, FP News, International, International Tax, Luxembourg, Postgraduate Programmes in International Tax, Postgraduate Programmes in Transfer Pricing, Tax Dispute Resolution, TP Case Summaries, Transfer Pricing / ATL-Editor

The General Court of the European Union ruled in favour of Luxembourg and Amazon, annulling the European Commission’s decision that Luxembourg granted illegal state aidState Aid refers to financial assistance provided by public bodies, typically governments, which can selectively benefit certain businesses or industries. This concept is critical in European Union (EU) law, where such support can distort competition and trade within the single market. State Aid, regulated under EU law, aims to ensure fair competition and prevent Member States from favouring local businesses... More to Amazon through tax rulingsA tax ruling is a formal decision provided by a tax authority, clarifying how specific tax laws and regulations apply to an individual taxpayer or a corporate entity in particular circumstances. Often sought before a significant financial transaction or investment, tax rulings offer legal certainty by outlining the tax implications and obligations in advance. Such rulings are pivotal for multinational... More.

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Tax Planning in International Taxation: Navigating Compliance and Avoidance

FP News, International, International Tax, Postgraduate Programmes in International Tax, Postgraduate Programmes in Transfer Pricing, Tax Dispute Resolution, Transfer Pricing / Dr Daniel N Erasmus

International Tax PlanningTax planning is the process of organising and structuring one’s financial affairs in a manner that legally minimises tax liabilities while ensuring compliance with relevant tax laws. The primary objective of tax planning is to reduce the amount of taxes paid, optimise the use of available tax benefits, and preserve wealth. It can be applied at various levels, including personal... More is a crucial aspect for multinational corporations seeking to optimize their global tax obligations. With the increasing complexity of international tax lawsTax laws form the backbone of any nation’s revenue system, setting the rules that govern how individuals and corporations contribute financially to support government functions. These laws define the types of taxes, the applicable rates, and the regulations regarding payment and compliance. They also outline the rights and obligations of taxpayers, ensuring a balanced and fair approach to funding public... More and regulations, tax planningTax planning is the process of organising and structuring one’s financial affairs in a manner that legally minimises tax liabilities while ensuring compliance with relevant tax laws. The primary objective of tax planning is to reduce the amount of taxes paid, optimise the use of available tax benefits, and preserve wealth. It can be applied at various levels, including personal... More offers a strategic approach to ensure compliance while minimizing tax liabilities.

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Understanding Double Tax Treaties: A Comprehensive Guide

FP News, International, International Tax, OECD, Postgraduate Programmes in International Tax, Tax Dispute Resolution, Transfer Pricing, United Nations / ATL-Editor

*For clarity, the term Double Tax TreatyA Double Taxation AgreementA Double Taxation Agreement (DTA), also known as a Double Taxation Treaty (or a Tax Treaty), is an international tax treaty between two or more countries that aims to prevent individuals or businesses from being taxed twice on the same income. With globalisation and the increase in cross-border economic activities, DTAs have become essential tools for promoting trade, investment, and... More (DTA), also known as a Double TaxationDouble Taxation occurs when the same income or financial transaction is taxed twice, typically in different jurisdictions. It can arise in two primary contexts: economic double taxation, where the same income is taxed twice in the hands of different taxpayers, and juridical double taxation, where the same taxpayer is taxed on the same income in more than one country. Double... More Treaty (or a Tax TreatyA Double Taxation Agreement (DTA), also known as a Double Taxation Treaty (or a Tax Treaty), is an international tax treaty between two or more countries that aims to prevent individuals or businesses from being taxed twice on the same income. With globalisation and the increase in cross-border economic activities, DTAs have become essential tools for promoting trade, investment, and... More), is an international tax treatyA Double Taxation Agreement (DTA), also known as a Double Taxation Treaty (or a Tax Treaty), is an international tax treaty between two or more countries that aims to prevent individuals or businesses from being taxed twice on the same income. With globalisation and the increase in cross-border economic activities, DTAs have become essential tools for promoting trade, investment, and... More between two or more countries that aims to prevent individuals or businesses from being taxed twice on the same income. With globalisation and the increase in cross-border economic

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Mutual Agreement Procedures (MAP): Key Guidelines

Dispute Resolution, FP News, International, OECD, Postgraduate Programmes in International Tax, Tax Dispute Resolution, United Nations / Dr Daniel N Erasmus

Mutual Agreement Procedures (MAP) are key mechanisms that ensure fair tax treatment in international transactions. They help resolve conflicts between tax authorities, avoiding double taxationDouble Taxation occurs when the same income or financial transaction is taxed twice, typically in different jurisdictions. It can arise in two primary contexts: economic double taxation, where the same income is taxed twice in the hands of different taxpayers, and juridical double taxation, where the same taxpayer is taxed on the same income in more than one country. Double... More and promoting business growth.

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Effective Transfer Pricing Dispute Resolution

Dispute Resolution, FP News, International, Postgraduate Programmes in South African Tax Law, Tax Dispute Resolution, Transfer Pricing / ATL-Editor

As global trade increases, so does the complexity of transfer pricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... More arrangements, leading to potential disputes between multinationals and tax authorities. The significance of transfer pricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... More dispute resolution lies in its ability to prevent double taxationDouble Taxation occurs when the same income or financial transaction is taxed twice, typically in different jurisdictions. It can arise in two primary contexts: economic double taxation, where the same income is taxed twice in the hands of different taxpayers, and juridical double taxation, where the same taxpayer is taxed on the same income in more than one country. Double... More, ensure compliance with global standards, and mitigate the risk of financial penalties.

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The Second Session of the Ad Hoc Committee on the UN Tax Convention

Dispute Resolution, FP News, International Tax, OECD, Tax Dispute Resolution, United Nations / Dr Daniel N Erasmus

The Second Session of the Ad Hoc Committee on the UN Tax Convention, held from July 29 to August 16, 2024, at the UN Headquarters in New York, was a significant milestone in the effort to establish a United Nations Framework Convention on International Tax Cooperation. The significance of this session lies in its role in advancing global tax reform, particularly by addressing issues such as the fair allocation of taxing rightsFiscal Sovereignty is the inherent authority of a state to independently manage its financial and economic policies, especially the power to levy and collect taxes within its jurisdiction. Central to national autonomy, fiscal sovereignty enables governments to shape economic policies that reflect their priorities, ranging from welfare programs to defence and infrastructure investment. It also underpins each country’s approach to... More, combating illicit financial flows, and ensuring that multinational corporations and wealthy individuals pay their fair share of taxes.

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The Italian Supreme Court’s Landmark Ruling on Loss-Making Entities: My Take

Dispute Resolution, FP News, International, International Tax, Italy, Tax Dispute Resolution, TP Case Summaries / Dr Daniel N Erasmus

In August 2024, the Italian Supreme Court delivered a pivotal ruling on transfer pricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... More, specifically addressing the inclusion of loss-making entities in comparability analyses. This ruling could hopefully show a significant shift in how transfer pricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... More is approached, emphasizing a more comprehensive and accurate reflection of market realities.

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Transfer Pricing and Profit Attribution to Permanent Establishments: Insights from Recent Cases

Dispute Resolution, FP News, International, International Tax, Tax Dispute Resolution, Transfer Pricing / Dr Daniel N Erasmus

In the increasingly complex landscape of international taxationFOR MORE INSIGHT ON INTERNATIONAL TAXATION, PLEASE READ THIS ARTICLE: Introduction to International Taxation: Key Concepts & Guidelines International Taxation encompasses the framework of laws, principles, and treaties that govern the tax obligations of individuals and entities engaged in economic activities that span multiple jurisdictions. This field addresses how income, profits, and gains are taxed when operations or investments extend... More, Transfer PricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... More and Profit Attribution to Permanent Establishments (PEs) have emerged as critical issues. The intricacies involved in appropriately allocating profits to PEs, especially in cross-border scenarios, continue to challenge multinational corporations and tax authorities alike.

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Exchange of information on reportable cross-border tax arrangements: CJEU Judgment in Case C-623/22

Begium, Dispute Resolution, EU, Europe, FP News, International, International Tax, Tax Dispute Resolution, TP Case Summaries / Dr Daniel N Erasmus

The judgment in the case C-623/22, issued by the Court of Justice of the European Union (CJEU) on July 29, 2024, primarily addressed the validity of certain provisions of Directive 2011/16/EUCouncil Directive 2011/16/EU, often referred to as the "Directive on Administrative Cooperation" (DAC), establishes a comprehensive framework for the exchange of tax information among EU Member States. Its primary objective is to promote transparency and combat tax evasion, ensuring all EU countries have access to information on taxpayers' cross-border income, assets, and activities. This directive mandates administrative cooperation among national... More as amended by Directive 2018/822Directive 2018/822, also known as DAC6, is an amendment to the European Union's Directive on Administrative Cooperation in the field of taxation (DAC). Effective from June 25, 2018, DAC6 mandates the reporting of certain cross-border tax arrangements to ensure transparency, combat aggressive tax planning, and prevent tax avoidance. This directive focuses on specific arrangements that may present potential tax risks,... More, concerning the mandatory automatic exchange of information on reportable cross-border tax arrangementsCross-border tax arrangements refer to any financial, operational, or structural plans designed by entities with activities or investments across multiple countries. These arrangements often leverage international tax laws and treaties to optimise tax liabilities and ensure compliance in each jurisdiction. Cross-border tax arrangements are crucial for multinational corporations (MNCs) as they help balance tax efficiencies with regulatory adherence across diverse... More.

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