From Marks Spencer to X Holding

Author: Dennis Manolito Weber
Publisher: Kluwer Law International
ISBN: 9041133992
Format: PDF, Docs
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Group taxation - special schemes according to which a group of companies meeting certain requirements may be assimilated for tax purposes to a single company - exists in several European Member States and is now under consideration in an EU proposal conce

Optimization of Tax Sovereignty and Free Movement

Author: Sjoerd Douma
Publisher: IBFD
ISBN: 9087221126
Format: PDF, Docs
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The book argues that the notions of tax sovereignty and EU free movement should be regarded as two fundamentally equal principles. The conflict between these two principles is resolved by establishing, in individual cases, the optimum position between two extremes: a general unrestricted freedom of action by states versus a prohibition of any obstacle to the free movement of goods, persons, services and capital. The process of reconciliation of these competing principles is structured by the theoretical optimization model developed in the present study. This model is external to the present case law. The application of the theoretical optimization model to the ECJ’s case law in the area of direct taxation reveals that this case law is largely in line with the model. It is certainly not as internally inconsistent as claimed in some of the tax literature. Many jigsaw pieces seem to fit after all if the case law is assessed in the light of the model. A number of future developments could be expected on the basis of the model and extensive case law analysis. The most important of these is that, in some cases, truly non-discriminatory tax measures should give rise to a prima facie restriction on free movement.

Taxation of Foreign Business Income Within the European Internal Market

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Publisher: IBFD
ISBN: 9087221134
Format: PDF, ePub
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The rules of the Member States on the taxation of the foreign business income of companies, whether such rules are based on the fiscal principle of territoriality or on the principle of worldwide taxation, are in conflict with the objective of achievement of the internal market. This objective is indeed difficult to reach when it comes to the taxation of foreign income, given that the Member States are far from taxing companies doing business cross-border as if their operations were purely domestic. Areas of conflict include particularly the taxation of foreign profits, the deduction of foreign losses, the elimination of international double taxation and the attribution of profits to permanent establishments. This dissertation analyses this conflict on the basis of a study of the case law of the European Court of Justice as well as some of the key provisions of the European treaties. It appears that both the fiscal principle of territoriality and the principle of worldwide taxation give rise to complex issues of compatibility with the law of the European Union. Although the analysis conducted throughout the dissertation provides some guidance for the taxation of the foreign business income of companies, it is concluded that the Court cannot, by itself, efficiently resolve the conflict between such taxation and the objective of achievement of the internal market.

Sharing the Pie Taxing Multinationals in a Global Market

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ISBN:
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The current international corporate tax regime for taxing the business proceeds of firms operates arbitrarily. The aggregates of the nation states' international corporate tax systems seem to distort a global efficient allocation of resources. The current model of corporate taxation finds its origins in the 1920s. It well suited the economic realities of the early days of international trade and commerce; the times when international business primarily revolved around bulk trade and bricks-and-mortar industries. But those days are long gone. Globalization, European integration, the rise of multinational enterprises, e-commerce, and intangible assets have changed the world considerably. These developments have caused the model to operate inconsistently with the economic reality of today. Corporate taxation and economic reality are no longer aligned. The model is ill-suited to current market realities. As a result multinational business decisions are distorted by tax considerations. The arbitrage may work to the benefit or detriment of nationally and internationally active firms. It also seems to put pressure on nation state corporate tax revenue levels. This may lead to spill-over effects and welfare losses at the end of the day. Matters seem to worsen in today's increasingly globalizing economy. The question arises as to whether a proper alternative for taxing multinationals can be modeled. How should business proceeds of multinationals be taxed? Can we create something that suits the nature of a global marketplace somewhat better? What would such an alternative tax system look like? How would it operate? This study seeks to set forth an alternative to the corporate taxation framework currently found in international taxation. The aim is to develop some building blocks for an optimal approach towards taxing the business proceeds of multinationals, i.e., a 'corporate tax 2.0'. As a starting point the authority of currently applicable national, international, and European tax law are not necessarily accepted. Accordingly, applicable tax law serves illustrative rather than argumentative purposes in this research.

Limitation on Benefits Clauses in Double Taxation Conventions

Author: Félix Alberto Vega Borrego
Publisher: Kluwer Law International
ISBN: 9041123709
Format: PDF, Docs
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In accordance with Article 22 of its 1996 Model Treaty, most double taxation conventions entered into by the United States contain a number of rules called limitation on benefits clauses, the purpose of which is to prevent the application of the benefits of the treaties to treaty shopping structures. Following the changes in the Commentaries on Article 1 of the OECD Model Tax Convention in 2003, a number of clauses similar to those provided in the United States Model Treaty have been included. In this study, the legal framework and application of these rules is analysed in depth, and particularly, taking into account those rules included in the double taxation conventions concluded between the United States and European Union member states. In this respect, the compatibility of these rules with European Community Law is also analysed in the last chapter. This study is based on the authors doctoral thesis, which was awarded the prize for the best doctoral thesis on financial and tax law by the Spanish Instituto de Estudios Fiscales (Ministerio de Economia y Hacienda) in 2002.

Fiscal Sovereignty of the Member States in an Internal Market

Author: Jacobus Johannes Maria Jansen
Publisher: Kluwer Law International
ISBN: 9041134034
Format: PDF, ePub, Docs
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Although EU Member States have retained national sovereignty in tax matters, a consistent line of decisions by the European Court of Justice requires them to exercise these powers consistent with superseding Community law. In other words, the Member States are not wholly autonomous. This in turn creates serious tensions. This timely resource covers a variety of critical issues, including the current and possible future effects of the internal market on the fiscal sovereignty of Member States; the limits that European law imposes on Member States' policy sovereignty in matters of international tax law; the effect of European law on taxes levied by local authorities; and the consequences the Treaty of Lisbon may have for Member States' fiscal sovereignty.

Double Non Taxation and Eu Law

Author: Christoph Marchgraber
Publisher: Kluwer Law International
ISBN: 9789041194107
Format: PDF, ePub
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Double (Non-)Taxation and EU Law provides a comprehensive analysis of EU law's impact on double taxation and double non-taxation. Everywhere new tax rules are under development to engage with the ever-increasing complexity and sophistication of aggressive tax planning and to reverse the tax base erosion it leads to. The most prominent initiative in this context is the Base Erosion and Profit Shifting (BEPS) project of the OECD. Although the European Commission and the OECD's BEPS project have been a hot topic for some time, and double non-taxation being among the main issues the BEPS project intends to address, there has been little discussion of the effect of EU law on their implementation. This book aims to remedy that omission by addressing this crucial subject and its practical impact. What's in this book: Among the issues dealt with in the course of the analysis are the following: locating the gaps and inconsistencies among domestic tax systems exploited by taxpayers; hybrid mismatch arrangements as a prime example of double non-taxation; political efforts undertaken within the EU in order to address double taxation and double non-taxation; double non-taxation in the European VAT system; the convergence of the fundamental freedoms and the State aid rules; the ECJ's dilemma concerning juridical double taxation; the deviating approach with regard to economic double taxation; the potential impact of the ECJ's case law on the EU law compatibility of double non-taxation. The tax jurisprudence of the ECJ is referred to and comprehensively analysed throughout the book. The final chapter provides an outlook on possible developments in the future. How this will help you: Focusing on the fundamental freedoms and the State aid rules of the EU, this book thoroughly explains the nature of double non-taxation from an EU law perspective, its relation to double taxation, and the impact of EU law on these phenomena. Thus, this book serves as a navigator in light of the ongoing implementation of BEPS measures. As a giant step towards greater legal certainty in this challenging area of tax law, this book is a practical handbook for tax authorities, scholars, and tax practitioners across Europe and even beyond.

The Influence of European Law on Direct Taxation

Author: Dennis Weber
Publisher:
ISBN: 9789041126672
Format: PDF, Mobi
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This book showcases the practical insights of some of Europeand’s foremost tax advisers and lawyers on recent case law issuing from the European Court of Justice. It also provides readers with informed analysis on how the Court may rule on future controversies impacting direct taxation. This timely and useful resource will examine each of the following topics, inter alia: and• CFC Legislation and Abuse of Law in the Community and• Free movement of capital and non-member countries and– consequences for direct taxation and• Striking a proper balance between the national fiscal interests and the Community interest and– a perpetual struggle? and• Personal income taxation of non-residents and the increasing impact of the EC Treaty Freedoms and• Why the European Court of Justice should interpret directly applicable Community law as a right to most-favoured nation treatment and a prohibition of double taxation and• Fiscal Cohesion, Fiscal Territoriality, and Preservation of the (Balanced) Allocation of Taxing Power; What is the Difference? and• Limitation of the Temporal Effects of Judgments of the ECJ and• Tax Facilities for State-induced Costs under the State Aid Rules and• EU Law and rules of tax procedure

Transfer Pricing in the US

Author: Felix I. Lessambo
Publisher:
ISBN: 9789041191960
Format: PDF, ePub
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This concise, practical guide to the latest issues in the rapidly evolving legal regime on transfer pricing in the US context fills the need to gain a firm grasp of transfer pricing rules and practice for corporate counsel and practitioners worldwide, enabling them to prepare compliant solutions and strategies and avoid pitfalls. The book begins with a general introduction to transfer pricing and then discusses the current OECD's Transfer Pricing Guidelines, which form the basis for most transfer pricing rules around the world. The book describes in detail the approved methods for tangible and intangible property, cost sharing, services and the best method rule. Then the book discusses functional analysis for the various methods, including the necessary documentation and penalty rules. This book is an indispensable resource for practitioners and academics, and it will be very useful to state tax authorities.