EU Archives - Page 2 of 4 - Academy of Tax Law

ENGIE vs EU: State Aid Decision in the EU’s Effort to Combat Selective Tax Advantages

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

This case involves the European Commission’s ruling that Luxembourg’s 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 for ENGIE constituted unlawful 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, creating tax advantages that contravened the competitive balance required under EU law.

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Analysis of X BV v Staatssecretaris van Financiën (Case C-585/22): Preventing Tax Fraud Through Arm’s Length Scrutiny

Arms Length Principle, FP News, International, Netherlands, Postgraduate Programmes in International Tax, Postgraduate Programmes in Transfer Pricing, Tax Dispute Resolution, TP Case Summaries / Dr Daniel N Erasmus

This case focuses on whether the Netherlands’ national tax lawTax 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, which restricts the deduction of interest paid on intra-group loans in certain scenarios, is compatible with the freedom of establishment under Article 49 TFEU.

Analysis of X BV v Staatssecretaris van Financiën (Case C-585/22): Preventing Tax Fraud Through Arm’s Length Scrutiny Read More »

European Commission vs Apple and Ireland (Appeal)

Arms Length Principle, EU, FP News, International, Ireland, Tax Dispute Resolution, TP Case Summaries, Transfer Pricing / Dr Daniel N Erasmus

The CJEU’s judgment of 10 September 2024 overturned the General Court’s previous ruling, confirming that Ireland’s 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 to Apple Sales International (ASI) and Apple Operations International (AOI) provided an unfair advantage.

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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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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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Italian Supreme Court Ruling on Transfer Pricing: Inclusion of Loss-Making Entities in Comparability Analyses

FP News, International, International Tax, Italy, OECD, TP Case Summaries, Transfer Pricing / Dr Daniel N Erasmus

The Italian Supreme Court’s 2024 ruling mandates including loss-making entities in 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 comparability analysisA Comparability Analysis is an essential framework in Transfer Pricing used to evaluate whether the conditions of a transaction between related entities (such as subsidiaries of the same multinational enterprise) are consistent with the arm’s length principle. The arm’s length principle requires that intercompany transactions reflect terms that independent entities would negotiate under comparable circumstances, ensuring that multinational corporations (MNEs)... More, aligning with OECDThe Organisation for Economic Co-operation and Development (OECD) is an international organisation comprising 38 member countries, established to foster economic growth, trade, and development on a global scale. Founded in 1961, the OECD provides a forum for governments to collaborate, share policy experiences, and develop solutions to common economic challenges. The OECD's core mission is to promote policies that improve... More guidelines.

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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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Understanding Intra-Group Losses in Transfer Pricing: Key Insights from Recent Cases

Argentina, Czech Republic, France, International, International Tax, Tax Dispute Resolution, TP Case Summaries, Transfer Pricing, Transfer Pricing Methods / Dr Daniel N Erasmus

Intra-group losses in 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 have become a focal point of legal scrutiny and regulatory enforcement. The recent cases of Dart Sudamericana, ST Dupont, and Stora Enso highlight the complexities and challenges multinational enterprisesWhat 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 (MNEs) face in justifying and managing these losses.

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Understanding Non-Recognition in Transfer Pricing

Denmark, International, International Tax, Luxembourg, Malaysia, Tax Dispute Resolution, Transfer Pricing / Dr Daniel N Erasmus

Explore non-recognition in 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 through landmark cases from Malaysia, Luxembourg, and Denmark. Expert analysis by Prof. Dr. Daniel N. Erasmus.

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Danish Supreme Court Upholds Transfer Pricing Adjustment in Maersk Oil Case

Denmark, Dispute Resolution, International, International Tax, TP Case Summaries / Dr Daniel N Erasmus

Summary of the Danish Supreme Court’s landmark 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 in the Maersk Oil case, with implications for multinationals and tax authorities worldwide.

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