EU Commission asks Netherlands to remedy fiscal discriminatory rules on fiscal unity

In our Newsalert of June 14, 2011 we discussed the recent decision by a Netherlands District Court to allow a fiscal unity in the Netherlands between a Dutch parent company and its lower tier Dutch subsidiaries based on European law principles. Now the European Union Commission ("EC") has also formally requested that the Netherlands amend its tax law on fiscal unities.

Fuente: pwc

UK publishes consultation documents on "Patent Box" proposal and R&D credit system changes

On June 10, the UK Government published consultation documents on the proposed 'Patent Box' and revisions to the existing Research and Development (R&D) tax credit system.  The consultation documents were issued as part of the UK Government's plans to make the UK’s tax system the most competitive in the G20, and aim to support innovation and productivity in the UK.

Fuente: pwc

Developments in Dutch fiscal unity regime

Recently, the European Commission has formally requested the Netherlands to amend its tax rules, which currently do not allow two sister companies to form a fiscal unity where they are held by an EU parent. In the meantime, a Dutch district court decided that a fiscal unity should be possible between a Dutch parent and its lower-tier Dutch subsidiaries, held through EU intermediary companies. These are important developments for (multinational) groups with profits and losses in the Netherlands that cannot be compensated under current Dutch fiscal unity rules.
Fuente: Ernst & Young

Mumbai Tribunal ruling on transfer pricing issues

"Cost only" reimbursement unjustified, taxpayer’s aggregation approach inappropriate.
The Mumbai Income-tax Appellate Tribunal (Tribunal), in a ruling in the case of M/s. Exxon Mobil Company India Private Ltd (Taxpayer) has adjudicated on certain transfer pricing (TP) issues with respect to transactions entered into by the Taxpayer with its associated enterprises (AEs).

Más información: Ernst & Young

ESPAÑISTAN: este país se va a la mierda!!!

El humorista gráfico Aleix Saló ha creado un cómic llamado 'Españistán' que satiriza la crisis económica en la que se ve sumida España. Para completar la obra física, Saló ha creado un blog y este genial vídeo.

Argentina issues new transfer pricing-related tax return form

On June 15, 2011, the Official Gazette published General Resolution No. 3132, amending General Resolution No. 1122/01.

This new resolution establishes the obligation for taxpayers to submit a new complementary tax return (F. 969) that includes detailed information about international transactions performed during the fiscal year with related companies located abroad or in countries of low or no taxation. This obligation applies to the companies' fiscal year endings from December 31, 2010.

The due date for the submission of F. 969 will operate fifteen days immediately after the due date for filing the income tax return. By way of exception, the deadline for submission of F. 969 for the year ended December 31, 2010 is established from June 24th to June 30th, inclusive, depending on the termination of the Tax ID number (CUIT). 

Fuente: PKN

European Commission requests The Netherlands to amend discriminatory tax rules on fiscal unities

Brussels, 16 June 2011 – The European Commission has formally requested The Netherlands to amend its tax legislation on fiscal unities (i.e. calculation of income tax of a group of companies on a consolidated basis). Current Dutch legislation does not allow two Dutch subsidiary companies held by a foreign parent company to form a fiscal unity between themselves. In practice this means that companies which have their parent company in another Member State cannot benefit from the fiscal unity regime, which is contrary to EU rules. The fiscal unity regime allows companies to file a single tax return for a group of companies, thus facilitating tax compliance and allowing compensation of profits and losses.

The Commission considers that current Dutch legislation on fiscal unities is contrary to the freedom of establishment provided in Articles 49 and 54 of the Treaty on the Functioning of the European Union and Articles 31 and 34 of the European Economic Area Agreement. The Commission's request takes the form of a reasoned opinion (the second step of EU infringement proceedings). In the absence of a satisfactory response within two months, the Commission may refer The Netherlands to the EU's Court of Justice.

Background

The Dutch Corporation Tax Law allows companies which form a group to be taxed as a fiscal unity. It means that profits and losses of the group can be offset and intra-group transactions are eliminated. Article 15.3.c of the Dutch Corporation Tax Law requires all the companies of the fiscal unity to be resident in The Netherlands. This rule excludes fiscal unities between two Dutch subsidiary companies in the same group, held by a foreign parent company, which is contrary to EU law.

The Commission does not see any possible justification for these restrictions.

There is clear case-law from the EU Court concerning such discriminatory tax regimes. In the Papillon Case (C-418/07), the Court ruled that a French parent company and a French subsubsidiary company should be able to form a fiscal unity, in spite of the intermediate subsidiary being situated in another Member State.

For press releases issued on infringement proceedings in the area of taxation or customs see:

http://ec.europa.eu/taxation_customs/common/infringements/infringement_cases/index_en.htm

For more information on EU infringement procedures, see MEMO/11/408.

For the most up-to-date general information on the infringement proceedings initiated against Member States, see:

http://ec.europa.eu/eu_law/infringements/infringements_en.htm

Dominican Republic issues transfer pricing regulations

The Dominican Republic issued Revenue Ruling No.04-2011 dated 2 June 2011 that establishes the regulations applicable to individuals or business entities that have related party transactions.
Transfer pricing rules have been in effect in Dominican Republic since 1 January 2007 when Article 281 of the Dominican Republic Tax Code (TC) was amended to empower tax authorities to adjust transfer prices that do not meet the arm’s length standard. However, the reform did not include any documentation requirements or methodology to be followed in order to determine arm’s length prices.
Fuente: Ernst & Young

Australian Full Federal Court rejects ATO transfer pricing approach

On 1 June 2011, the Full Federal Court, in a significant transfer pricing decision, accepted the primacy of the comparables method for the taxpayer, SNF (Australia) Pty Ltd, to test whether purchases from its related entities were priced consistently with the arm's length principle of Australia's transfer pricing laws.

Fuente: Ernst & Young

Netherlands District Court allows "Papillon" fiscal unity

On June 9, 2011, the District Court of Haarlem held that a Dutch fiscal unity for corporate income tax purposes should be allowed between a Dutch parent company and its lower tier Dutch subsidiary held through two German intermediary companies.

Fuente: pwc

OECD releases a Multi-Country Analysis of Existing Transfer Pricing Simplification Measures

The OECD launched in 2010 a project on the administrative aspects of transfer pricing, including a review of techniques that may be implemented by countries to optimise the use of taxpayers’ and tax administrations’ resources while improving the compliance and enforcement climate. Transfer pricing simplification measures existing in 33 OECD and non-OECD economies were identified and analysed. A document containing the main findings from this analysis and a compilation of the country responses has now been published.

The results of this multi-country analysis and the responses that will be received by 30th June 2011 to the public invitation to comment will be used to inform the OECD’s  future work on the administrative aspects of transfer pricing, including the review of the existing guidance on safe harbours in Chapter IV of the Transfer Pricing Guidelines.

Interested parties are invited to send comments on the main findings presented in the document entitled “Multi-Country Analysis of Existing Transfer Pricing Simplification Measures”.

Fuente: OCDE

Danish tax authorities are expected to tighten the grip on multinational entities

The upcoming election in Denmark (to be held in November 2011 at the latest) has led to an increased focus on multinational entities (MNEs) paying none or very little tax in Denmark. This has lead to a vivid debate in the media as well as in the Parliament where all parties have laid forward suggestions on how to increase the taxable income from MNEs. 

Suggestions put forward

The suggestions made by the government and the opposition are of a very similar character, and so regardless of who wins the election, a more aggressive approach towards multinationals can be expected. 

Fuente: PKN

Boletín de legislación de mayo 2011‏

Europea:

• Decisión del Órgano de Vigilancia de la AELC nº 254/09/COL, de 10 de junio de 2009, por la que se modifican, por septuagésimo primera vez, las normas sustantivas y de procedimiento en materia de ayudas estatales mediante la introducción de un nuevo capítulo relativo a la aplicación de la normativa sobre ayudas estatales por los órganos jurisdiccionales nacionales. DOUE 115 de 05/05/2011

Nacional:

• Real Decreto-ley 5/2011, de 29 de abril, de medidas para la regularización y control del empleo sumergido y fomento de la rehabilitación de viviendas. BOE 108 de 06/05/2011
• Corrección de errores de la Orden EHA/1034/2011, de 25 de abril, por la que se reducen para el período impositivo 2010 los índices de rendimiento neto y el índice corrector por piensos adquiridos a terceros aplicables en el método de estimación objetiva del Impuesto sobre la Renta de las Personas Físicas para las actividades agrícolas y ganaderas afectadas por diversas circunstancias excepcionales. BOE 108 de 06/05/2011
• Real Decreto 558/2011, de 20 de abril, por el que se complementa el Catálogo Nacional de Cualificaciones Profesionales, mediante el establecimiento de dos cualificaciones profesionales correspondientes a la familia profesional administración y gestión. BOE 109 de 07/05/2011
• Resolución de 27 de abril de 2011, de la Oficina Española de Patentes y Marcas, por la que se publican las ayudas concedidas en el año 2010 en la modalidad de subvención para el fomento de las solicitudes de patentes y modelos de utilidad españoles y en el exterior. BOE 110 de 09/05/2011
• Sentencia 50/2011, de 14 de abril de 2011. Cuestión de inconstitucionalidad 3899-1999. Planteada por el Juzgado de Primera Instancia núm. 5 de Oviedo respecto al artículo 31.4 de la Ley de 24 de diciembre de 1964, de arrendamientos urbanos, en la redacción dada al mismo por la Ley 19/1989, de 25 de julio, de reforma parcial y adaptación de la legislación mercantil a las Directivas de la Comunidad Económica Europea (CEE) en materia de sociedades; el Real Decreto-ley 7/1989, de 29 de diciembre, sobre medidas urgentes en materia presupuestaria, financiera y tributaria, y la Ley 5/1990, de 29 de junio, sobre medidas en materia presupuestaria, financiera y tributaria. Principio de igualdad: ausencia de un término de comparación adecuado para formular el juicio de igualdad en relación con el precepto legal que excluye la aplicación del régimen común de traspaso de locales de negocio a los procesos de transformación, fusión o escisión de sociedades y entidades públicas o privadas. BOE 111 de 10/05/2011
• Ley 9/2011, de 10 de mayo, de tasas consulares. BOE 112 de 11/05/2011
• Real Decreto 570/2011, de 20 de abril, por el que se modifica el Real Decreto 727/2007, de 8 de junio, sobre criterios para determinar las intensidades de protección de los servicios y la cuantía de las prestaciones económicas de la Ley 39/2006, de 14 de diciembre, de Promoción de la Autonomía Personal y Atención a las personas en situación de dependencia y se establecen las prestaciones económicas de la Ley 39/2006, de 14 de diciembre, de Promoción de la Autonomía Personal y Atención a las personas en situación de dependencia para el ejercicio 2011. BOE 112 de 11/05/2011
• Orden FOM/1193/2011, de 18 de abril, por la que se aprueban los modelos de impresos para el pago de las prestaciones patrimoniales de carácter público establecidas y reguladas en la Ley 43/2010, de 30 de diciembre, del servicio postal universal, de los derechos de los usuarios y del mercado postal. BOE 114 de 13/05/2011
• Real Decreto-ley 6/2011, de 13 de mayo, por el que se adoptan medidas urgentes para reparar los daños causados por los movimientos sísmicos acaecidos el 11 de mayo de 2011 en Lorca, Murcia. BOE 115 de 14/05/2011
• Convenio entre el Reino de España y la República Islámica de Pakistán para evitar la doble imposición y prevenir la evasión fiscal en materia de impuestos sobre la renta, hecho en Madrid el 2 de junio de 2010. BOE 116 de 16/05/2011
• Orden EHA/1246/2011, de 9 de mayo, por la que se aprueban los modelos de declaración del Impuesto sobre Sociedades y del Impuesto sobre la Renta de no Residentes correspondiente a establecimientos permanentes y a entidades en régimen de atribución de rentas constituidas en el extranjero con presencia en territorio español, para los periodos impositivos iniciados entre el 1 de enero y el 31 de diciembre de 2010, se dictan instrucciones relativas al procedimiento de declaración e ingreso y se establecen las condiciones generales y el procedimiento para su presentación telemática. BOE 117 de 17/05/2011
• Resolución de 17 de mayo de 2011, del Instituto de la Cinematografía y de las Artes Audiovisuales, por la que se establece la aplicación del procedimiento para la presentación de la autoliquidación y las condiciones para el pago por vía telemática de la tasa por examen de películas cinematográficas y otras obras audiovisuales para su calificación por grupos de edad. BOE 123 de 24/05/2011
• Instrucción de 18 de mayo de 2011, de la Dirección General de los Registros y del Notariado, sobre constitución de sociedades mercantiles y convocatoria de Junta General, en aplicación del Real Decreto-ley 13/2010, de 3 diciembre. BOE 124 de 25/05/2011
• Corrección de errores del Convenio entre el Reino de España y la República de Albania para evitar la doble imposición y prevenir la evasión fiscal en materia de impuestos sobre la renta y su Protocolo, hecho en Tirana el 2 de julio de 2010. BOE 125 de 26/05/2011
• Orden TIN/1362/2011, de 23 de mayo, sobre régimen de incompatibilidad de la percepción de la pensión de jubilación del sistema de la Seguridad Social con la actividad desarrollada por cuenta propia por los profesionales colegiados. BOE 125 de 26/05/2011
• Orden TIN/1371/2011, de 25 de mayo, por la que se dictan las normas para la elaboración de los Presupuestos de la Seguridad Social para el ejercicio 2012. BOE 126 de 27/05/2011
• Ley 13/2011, de 27 de mayo, de regulación del juego. BOE 127 de 28/05/2011
• Instrucción de 27 de mayo de 2011, de la Dirección General de los Registros y del Notariado, por la que se corrige la de 18 de mayo de 2011, sobre constitución de sociedades mercantiles y convocatoria de Junta General, en aplicación del Real Decreto-ley 13/2010, de 3 de diciembre. BOE 127 de 28/05/2011
• Ley 12/2011, de 27 de mayo, sobre responsabilidad civil por daños nucleares o producidos por materiales radiactivos. BOE 127 de 28/05/2011
• Orden EHA/1426/2011, de 19 de mayo, por la que se modifica la Orden EHA/3358/2010, de 17 de diciembre, sobre delegación de la inspección del Impuesto sobre Actividades Económicas. BOE 129 de 31/05/2011

Comunidades Autónomas:

Castilla - La Mancha

• Ley 9/2011, de 21 de marzo, por la que se crean el canon eólico y el Fondo para el Desarrollo Tecnológico de las Energías Renovables y el Uso Racional de la Energía en Castilla-La Mancha. BOE 105 de 03/05/2011

Madrid

• Ley 9/2010, de 23 de diciembre, de Medidas Fiscales, Administrativas y de Racionalización del Sector Público. Comunidad de Mdrid. BOE 118 de 18/05/2011

Rap Keynes vs. Hayek - La Pelea del Siglo - Segundo Round

"La pelea del siglo" es el nuevo hip-hop de economía realizado por John Papola y Russ Roberts en http://EconStories.tv.

Viñeta del día

Mumbai Tribunal ruling on transfer pricing issues

The Mumbai Income-tax Appellate Tribunal (Tribunal), in a ruling1 in the case of M/s. Symantec Software Solutions Private Ltd (Taxpayer) has adjudicated on certain transfer pricing (TP) issues with respect to transactions entered into by the Taxpayer with its associated enterprises (AEs).  Consistent with earlier rulings, the Tribunal observed that the Transactional Net Margin Method (TNMM) does not permit comparison of enterprise level profits. However, the Tribunal did not specifically rule on this point as the tax authority did not raise an objection on the combined approach adopted by the taxpayer.

Fuente: Ernst & Young

Australia: Loss for Commissioner in SNF appeal

The Australian Commissioner of Taxation has been unsuccessful in his appeal against the 2010 Federal Court decision in favour of the taxpayer in SNF (Australia) Pty Ltd v Commissioner of Taxation. The appeal decision was handed down by the Full Federal Court on 1 June 2011 with a unanimous judgement that the Commissioner’s appeal should be dismissed.

The decision potentially has wide reaching implications for the application of Australia’s transfer pricing rules because it calls into question the ATO’s interpretation of the arm’s length principle.

Fuente: PKN

Tax Court of Canada supports the application of the comparable uncontrolled

The Tax Court of Canada (“TCC”) recently found in favour of Alberta Printed Circuits, Ltd. (“APCI Canada”) in respect of the application of the comparable uncontrolled price (“CUP”) method to determine arm’s length “set up” service fees paid to a related company in Barbados (“APCI Barbados”). However, despite the TCC’s rejection of the CRA’s analysis supporting its reassessments, it substantially disallowed the fees paid by APCI Canada to APCI Barbados for other services. While the TCC found that there was an absence of any compelling evidence to show the arm’s length nature of the charge for these other services, it nonetheless computed a charge for the services that left a significant portion of the CRA’s reassessments in place.

Although the amounts involved were relatively small, this case highlights the importance of a full consideration of all potential applications of the comparable uncontrolled price (“CUP”) method, and alerts us to expect that judges in Canadian courts, like their colleagues in many other countries, will indicate a preference for traditional transactional methods based on comparables that provide a direct price comparison over profit based methods based on comparables that do not.

Fuente: PKN

Novedad normativa

Acuerdo sobre intercambio de información en materia tributaria entre el Reino de España y la República de San Marino, hecho en Roma el 6 de septiembre de 2010.

Thailand enacts tax incentives for international procurement centers

The Thai government enacted the tax incentive provisions for international procurement centers (IPC), which became effective 5 May 2011, in an effort to promote Thailand in becoming one of the leading international distribution hubs in Asia. The incentives are offered to trading activities that are carried on either entirely offshore or from onshore to offshore.

Fuente: Ernst & Young

CDI con Kazajistán publicado en el BOE

Convenio entre el Gobierno del Reino de España y el Gobierno de la República de Kazajstán para evitar la doble imposición y prevenir la evasión fiscal en materia de Impuestos sobre la Renta y sobre el Patrimonio, hecho en Astana el 2 de julio de 2009.

CDI con Georgia publicado en el BOE

Convenio entre el Reino de España y la República de Georgia para evitar la doble imposición y prevenir la evasión fiscal en materia de impuestos sobre la renta y sobre el patrimonio, hecho en Madrid el 7 de junio de 2010.