IRS Says ‘Xilinx’ Ruling Applies Only to CSAs Under Section 482 Prior to 2003 Change

The Internal Revenue Service has issued an action on decision related to the U.S. Court of Appeals for the Ninth Circuit’s ruling in Xilinx Inc. v. Commissioner, saying it will apply the decision (AOD-26401-10) to cost-sharing agreement transactions governed by the regulations in effect prior to the 2003 amendments to the tax code Section 482 [...]

Switzerland – Poland double tax treaty protocol captures interest from tax authorities and investors

I. Background Recently Polish tax authorities have made public the protocol from negotiations with Swiss tax authorities (Protocol) regarding changes in the double tax treaty (the Treaty) signed between both the countries. The Protocol signed on April 20, 2010 formally marks the end of negotiations between the parties. Whilst nothing is certain until ratification in [...]

Foreign Income: House Renews Efforts to Close Foreign Tax Loopholes, Extend Tax-Exempt Bonds

House Democratic leaders announced July 28 that plan a vote for as early as July 29 on a bill (H.R. 5893) that would extend several tax-exempt bond programs while ending $11.6 billion in tax breaks used by firms doing business offshore. The vote, scheduled just ahead of the House’s planned summer recess, is intended to [...]

Australia: new mining tax regime

The Australian Government has announced improved resource tax arrangements to replace the previously announced Resource Super Profits Tax (RSPT). Under the new framework: • a new Minerals Resource Rent Tax (MRRT) regime will apply to the mining of iron ore and coal in Australia, and • the current Petroleum Resource Rent Tax (PRRT) regime will [...]

Court Rejects Transfer Pricing Assessment For GlaxoSmithKline’s Canadian Subsidiary

Canada’s Federal Court of Appeal July 26 rejected the transfer pricing assessments of U.K.-based GlaxoSmithKline plc’s Canadian subsidiary, saying the lower court erred in finding the company overpaid its Swiss affiliate for the active ingredient of ulcer medication Zantac from 1990-93 by more than five times the arm’s-length amount (Glaxosmithkline Inc. v. The Queen, F.C.A., [...]

Reform of the VAT system applying to the aeroplane import business in Denmark

I. Introduction Denmark has, until recently, been a very attractive jurisdiction in which to establish an aeroplane import business based on some extremely favourable VAT rules on aeroplanes. The attractiveness of Denmark was especially in relation to the importation of planes from Third Party countries (outside the EU) as for example the USA (where there [...]

China: VAT refund update

The Chinese Ministry of Finance and the State Administration of Taxation issued a circular on June 22, 2010 that revokes the export VAT refund for 406 items. Circular 57 becomes effective on July 15, 2010, using the export date listed on the “Customs Declaration Form (Export Refund Only)” as the date of reference.  The circular [...]

Hungary Defies EU, IMF With Bank Taxes That Apply to Insurance, Financial Services

BRUSSELS — The Hungarian government approved a controversial bank tax July 22 that is designed to raise more than $3 billion over the next three years, despite warnings from both the European Commission and the International Monetary Fund that it should reconsider the terms of the levy. The new tax will apply not only to [...]

Switzerland Concludes Revised Tax Accord With Ireland; Prospects for Referendum Fade

GENEVA — Switzerland said July 23 it has concluded a revised double taxation agreement with Ireland which will require both sides to cooperate in requests for information on suspected tax cheats. The Swiss government announced that a deal with Ireland was initialed in the Swiss capital Bern on July 22 incorporating provisions based on the [...]

India Releases Unified Tax Plans

Indian Finance Minister Pranab Mukherjee announced that India plans to levy a unified tax of 12 to 20 percent on goods and services from next April as part of a new tax regime. The unified tax law will apply a federal and a provincial rate on all goods and services to remove the multiplicity of [...]

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