International Tax Archives - Page 2 of 12

Delhi High Court vs ABIC India Pvt. Ltd: TRANSFER PRICING CASE

Case Summaries, FP News, India, International, International Tax, Postgraduate Programmes in Transfer Pricing, TP Case Summaries, Transfer Pricing / ATL-Editor

The High Court of Delhi, in its judgment dated 14 October 2024, upheld the Tribunal’s decision to reinstate the Transactional Net Margin Method (TNMM)The Transactional Net Margin Method (TNMM) is one of the five primary transfer pricing methods recognised under the OECD Transfer Pricing Guidelines. TNMM is applied to evaluate whether the conditions of a controlled transaction between associated enterprises are at arm’s length. Unlike traditional transaction methods, which directly compare prices or gross margins, TNMM compares the net profit margin relative to... More as the most appropriate 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 method for SABIC India Pvt Ltd. The Revenue, represented by the Principal Commissioner of Income TaxIncome Tax is a direct levy imposed by governments on the income generated by individuals, corporations, and other entities within a specific jurisdiction. It serves as a major source of revenue for governments and funds various public expenditures, such as infrastructure projects, healthcare, education, national security, and welfare programs. The tax is generally calculated as a percentage of the taxable... More -7, challenged the Tribunal’s ruling, which annulled the adjustment of ₹3,61,32,20,620/- made by the 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 Officer (TPO) using the residual “other method” under Rule 10B(1)(f) of the Income TaxIncome Tax is a direct levy imposed by governments on the income generated by individuals, corporations, and other entities within a specific jurisdiction. It serves as a major source of revenue for governments and funds various public expenditures, such as infrastructure projects, healthcare, education, national security, and welfare programs. The tax is generally calculated as a percentage of the taxable... More Rules, 1962.

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RSA vs Wiese & Others: TAX DEBT RECOVERY CASE

Case Summaries, FP News, International, International Tax, Postgraduate Programmes in International Tax, Postgraduate Programmes in South African Tax Law, South Africa, Tax Dispute Resolution / ATL-Editor

The Supreme Court of Appeal of South Africa (SCA) ruled against Christoffel Hendrik Wiese and other appellants in their appeal concerning SARS’s efforts to recover a tax debtTax liability represents the total amount of tax owed by an individual or business to a tax authority, whether local, national, or international. This obligation arises through various forms of income, profits, or transactions subject to taxation laws and regulations. Understanding tax liability is essential for compliance and efficient financial management for corporations and individuals. It influences how businesses structure... More under section 183 of the Tax AdministrationTax authorities are fundamental institutions within government frameworks, overseeing tax assessment, collection, and administration. Their operations ensure that tax laws are enforced and public funds are collected efficiently. This article delves into tax authorities' purpose, responsibilities, and structure, offering insights into their essential role in supporting government functions and economic stability. What is a Tax Authority? A tax authority is... More Act (TAA).

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Transforming Transfer Pricing Expertise: Postgraduate Programmes for a Globalised Tax Landscape

Events, FP News, International Tax, Transfer Pricing, Transfer Pricing Programmes / Dr Daniel N Erasmus

Master 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 with Middlesex University’s postgraduate programmes. Equip yourself with essential skills for a global tax career.

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Portugal vs A Mining SA: Transfer Pricing Case

Case Summaries, FP News, International, International Tax, Mining, Portugal, Postgraduate Programmes in Transfer Pricing, TP Case Summaries, Transfer Pricing / ATL-Editor

The case concerns a tax disputeTax Disputes arise when there is a disagreement between taxpayers and tax authorities regarding the interpretation or application of tax laws. These disputes may concern various issues such as the accuracy of a tax return, the eligibility for tax deductions or credits, the correct amount of tax liability, or transfer pricing adjustments. Tax disputes can lead to lengthy legal proceedings... More between A…, S.A., a Portuguese mining company, and AT – Tax and Customs Authority. At the heart of the issue was the sale of an industrial wash plant by A… to B…, S.A., at a symbolic price of €1. AT contended that the sale breached 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 principles under Article 58 of the IRC Code.

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F Taxpayer vs SARS: Procedural Compliance in Tax Disputes

Case Summaries, FP News, International, International Tax, Postgraduate Programmes in South African Tax Law, South Africa / ATL-Editor

In the matter of F Taxpayer v SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... More, the Tax Court of South Africa was tasked with evaluating the procedural compliance and statutory adherence of the South African Revenue ServiceThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... More (SARS) in the taxpayer’s appeal concerning assessments for the 2016 to 2018 tax years.

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Insights from Boerdery v SARS: Assessing Deductibility of Premiums in Farming

Case Summaries, FP News, International, International Tax, South Africa, South African Tax Law Programmes, Tax Dispute Resolution / ATL-Editor

In Boerdery v SARS, the South African Tax Court addressed whether premiums paid by Boerdery under insurance contracts with Company XYZ were deductible under section 11(a) of the Income Tax Act. Boerdery claimed the premiums as deductible expenses, arguing they represented insurance costs necessary for its farming business.

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Bechan vs SARS: Search and Seizure Powers of Revenue Authorities

Case Summaries, FP News, International, International Tax, Postgraduate Programmes in South African Tax Law, South Africa, TP Case Summaries / ATL-Editor

The case of Bechan and Another v SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... More Customs Investigations Unit and Others was heard by the Supreme Court of Appeal (SCA) of South Africa, where Mr. Kapeel Bechan, alongside his company, Bechan Consulting (Pty) Ltd, sought to reclaim property seized by SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... More officials during a search warrant operation targeting Bullion Star (Pty) Ltd.

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Australia vs SingTel Transfer Pricing Case

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

The High Court of Australia deliberated on a significant 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 case between Singapore Telecom Australia Investments Pty Ltd (STAI) and the Commissioner of Taxation, centering on whether a parental guarantee should be implied in assessing the arm’s length nature of intercompany loansIntercompany Loans are financial arrangements where one entity within a corporate group lends funds to another entity in the same group. These loans are common in multinational enterprises (MNEs) and are used to manage liquidity, fund operations, or finance specific projects. The terms and conditions of intercompany loans must adhere to transfer pricing regulations to ensure they reflect arm’s length... More.

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Intra-Group Services: Guidelines, Examples, and Risk Management Strategies

FP News, International, International Tax, Intra-Group Services, OECD, Transfer Pricing / Renier van Rensburg

Intra-Group ServicesFOR MORE INSIGHT ON INTRA-GROUP SERVICES, PLEASE READ THIS ARTICLE: Intra-Group Services: Guidelines, Examples, and Risk Management Strategies Intra-Group Services refer to activities performed by one entity within a multinational enterprise (MNE) group that benefit one or more associated enterprises. These services may include administrative, technical, financial, or commercial assistance provided by a central company to its affiliates. A primary... More are an essential aspect 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, and managing them properly can mean the difference between compliance and costly disputes for 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 (MNEsWhat 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).

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The Thistle Trust vs C. South African Revenue Service: Understanding the Conduit Principle in Multi-Tiered Trusts

Case Summaries, Dispute Resolution, FP News, International, International Tax, Postgraduate Programmes in International Tax, Postgraduate Programmes in South African Tax Law, South Africa, Tax Dispute Resolution, TP Case Summaries, Trusts / ATL-Editor

In the landmark case of The Thistle TrustA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms. More v Commissioner for the South African Revenue ServiceThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... More, the Constitutional Court of South Africa was tasked with examining the application of the conduit principleThe Conduit Principle in tax law refers to the notion that certain entities, such as intermediary companies or partnerships, act as mere channels or conduits in international financial transactions. Under this principle, the income earned by the conduit entity is not treated as its own for tax purposes but is instead attributed to its beneficial owner(s). The principle is often... More in the taxation of trustsA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms. More, particularly focusing on how capital gainsCapital gains refer to the profit earned when an asset, such as real estate, stocks, bonds, or even a collectible, is sold or exchanged for a price that exceeds its original purchase cost. These gains are a critical component of personal and corporate finance, as they influence investment strategies and tax obligations. Capital gains are realised when an asset is... More are treated within a multi-tiered trust structureA Multi-Tiered Trust Structure is an intricate trust arrangement involving multiple layers of trusts or entities, often used in wealth preservation, tax planning, or asset protection strategies. In such a structure, one or more primary (or “master”) trusts may own or control other underlying trusts or subsidiary entities, each fulfilling a distinct legal, tax, or financial purpose. These setups can... More.

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