2025, WEEK 3 In Review
Dr Daniel N Erasmus (PhD USTCP Int'l Tax Attorney)
International Tax Litigation Attorney | Transfer Pricing Specialist | Tax Academic
For many, this week marked the return to work after the December recess, and it was certainly packed with valuable insights into International Tax and Transfer Pricing. In this review, I’ll briefly highlight the key topics I covered throughout the week, just in case you missed them!
THIS WEEK'S ARTICLES
Understanding the January 2025 Updates to the GloBE Information Return
The digitalisation of the global economy has reshaped tax compliance and administration. The updated GloBE Information Return (January 2025) reflects the latest OECD efforts to ensure transparency and fairness in multinational tax practices.Key updates include expanded administrative guidance, sector-specific adjustments, and enhanced digital reporting tools.
For multinationals, these changes bring both opportunities and challenges in aligning global operations with the GloBE Rules.Explore the comprehensive analysis in our latest article and learn how to navigate these complexities.
OECD Releases Updated Administrative Guidance and Jurisdiction Lists for Pillar Two Implementation
The OECD continues to lead global tax reform efforts with the release of new administrative guidance, updated jurisdiction lists, and tools for implementing the Pillar Two Global Minimum Tax framework. These updates aim to streamline compliance, enhance transparency, and ensure a consistent approach to addressing BEPS.
Spain Enacts Global Minimum Tax Law: Implications for Multinationals
Spain has officially enacted its Global Minimum Tax Law, taking a decisive step in aligning its tax policies with the OECD’s Pillar Two framework.
South Africa’s Global Minimum Tax Act – Implications for Multinationals
South Africa has officially gazetted the Global Minimum Tax Act, 2024, marking a milestone in its alignment with the OECD’s Pillar Two framework under the Base Erosion and Profit Shifting (BEPS) project.
THIS WEEK'S CASE SUMMARIES
CASE #1
Denmark vs Accenture
The Danish Supreme Court rendered its decision in the case of Accenture A/S v. Danish Ministry of Taxation, upholding the lower court’s judgment. The dispute revolved around the transfer pricing arrangements within the Accenture group, particularly concerning cross-border personnel assignments and intellectual property (IP) licensing agreements.
Accenture A/S challenged the Ministry of Taxation’s adjustments to its taxable income for the years 2005–2011, arguing that the arm’s length principle had been correctly applied. Central to the case was a 30% mark-up applied under the International Assignment Agreement (IAA) for cross-border personnel and a 7% royalty rate under the Intellectual Property Licence Agreement.
The Supreme Court upheld the Ministry’s view, finding that the transfer pricing documentation provided by Accenture A/S did not sufficiently substantiate the arm’s length nature of the transactions. The Court placed particular emphasis on the functional and risk analyses, which it deemed inadequate in demonstrating comparability with independent third-party arrangements...
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CASE #2
France vs Foncière Vélizy Rose
The Council of State reviewed an appeal by Foncière Vélizy Rose (FVR) regarding the withholding tax on an interim dividend of EUR 3.6 million distributed to Vélizy Rose Investment (VRI), a Luxembourg-based entity, which was subsequently paid to Dewnos Investment. The Paris Administrative Court of Appeal had dismissed FVR’s claim to discharge this withholding tax, prompting the appeal.
CASE #3
Poland vs Bedding Textiles
The case involves a dispute between N Sp. z o.o. (“the Company”), a Polish textile manufacturer, and the Director of the Tax Administration Chamber in ?ód? regarding corporate income tax liabilities for the year 2020. Following a tax audit initiated in February 2023, the first-instance authority concluded that the Company had incorrectly calculated its taxable income, leading to understated costs and revenues. Key issues included transfer pricing adjustments, improper recognition of depreciation expenses, and overstatement of deductible costs related to certain leases.
This is a reminder that applications for our Postgraduate Programmes are now open for the March 2025 intake.
Postgraduate Programmes in Transfer Pricing:
APPLICATIONS NOW BEING ACCEPTED (Closes End of March 2025)
Postgraduate Programmes in International Taxation:
APPLICATIONS NOW BEING ACCEPTED (Closes End of March 2025)
Have some questions about the programmes?
Please don't hesitate to contact our Education Consultant, Ben Ellis, at [email protected] or call us on +44(0)2080522710.
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1 个月Sounds like a busy and productive week, Dr. Daniel! Which of the topics do you think will have the biggest impact on companies this year? Always keen to hear your expert take on these crucial issues!