Alexander Linn /
Benedikt Pignot
Die Richtlinien der EU zur Bekämpfung aggressiver Steuerplanung
On October 5, 2015, the OECD published the BEPS final reports. This project is an internationally coordinated approach against harmful tax competition and aggressive tax planning. The resulting 15 actions are meant to equip governments with domestic and international instruments to address tax avoidance. With the ATAD, the implementation of BEPS-related measures, especially with regard to OECD Actions 2, 3 and 4, will be mandatory for the EU Member States. In addition, Member States will have to introduce rules for exit taxes when companies re-locate assets as well as a general anti-abuse rule to counteract aggressive tax planning when other rules don’t apply. This article provides an overview.
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Category of article: Feature Articles
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Field of Law: International fiscal law, Einkommens----Gewinnsteuer
Xaver Ditz
The German legislature first comprehensively addressed the OECD’s and EU’s efforts against base erosion and profit shifting (BEPS) in December 2016 through the Anti-BEPS Implementation Act. In this act, the German regulations on transfer pricing documentation underwent a major revision. Country-by-country reporting in accordance with OECD BEPS action item 13 was also implemented into German tax law. Several other BEPS action items have since been addressed in individual acts, including a license barrier rule in the German Income Tax Act. Apart from these measures, German tax law already contained a number of regulations, such as the interest barrier rule, that served as models for the OECD’s own anti-BEPS concepts. As key aspects of the OECD BEPS project have already been implemented into German law, only minor developments may be expected for the future.
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Category of article: Feature Articles
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Field of Law: International fiscal law, Einkommens----Gewinnsteuer
Gregoire Caulliez
Within the last years, France adopted several measures regarding a completion of its legal means of defence against aggressive tax planning strategies and to implement the recommendations of the BEPS project. First of all, these measures consist of strengthened anti-abuse regulations, e.g. to proceed against hybrid tax structures more efficiently. The transfer pricing legislation has also been significantly enhanced by expanding the documentation obligations and aggravating the sanctions in case of violation or omission of these obligations. Further on, the legislator has expanded the international cooperation, namely by concluding several Tax Information Exchange Agreements. All these measurements enabled France to reinforce its legislation. Some legislation projects though had to be withdrawn due to the Constitutional Council’s strict controls.
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Category of article: Feature Articles
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Field of Law: International fiscal law, Einkommens----Gewinnsteuer
Siegfried Mayr
Regarding certain BEPS Actions, no immediate action is required in Italy, as the national tax law already contains a series of homogenous measures for the control of profit reductions and shifts in international activities and situations. In the course of double taxation agreements, too, the occurrence of «white» incomes from abroad is hardly possible, since Italy – as country of residence – always applies the imputation method. The «branch exemption» (i.e. the exemption of profits of a permanent establishments abroad), that was recently introduced into national law, also presupposes that the permanent establishments abroad are being taxed. (ah)
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Category of article: Feature Articles
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Field of Law: International fiscal law, Einkommens----Gewinnsteuer
Hans F. W. Flick
The BEPS Initiative was especially important for U.S. taxpayers and the U.S tax authorities. Firstly, American corporate groups have a particular global presence and secondly, they frequently play a leading role in the digital economy, which found special interest by BEPS (see, e.g., action item 1). Another special aspect for the Americans is their current tax law, which avoids international double taxation by crediting (Foreign Tax Credit) instead of exemption. Hence, one concern of the U.S. negotiation delegation was to assure a fair treatment of American corporate groups by BEPS. In general, the BEPS negotiations results satisfied the American delegation. Implementations in the U.S. tax law were primarily required and made regarding action item 13 (Country by Country Reporting). In other areas, the U.S. tax authorities’ perception was that consisting or simultaneously occurring legislative amendments (e.g. tax deductibility of interest; IRC Section 385) were meeting the BEPS principles. The USA has not signed the Multilateral Agreement (action item 15) and, contemporarily, have no interest to do so in future. (ah)
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Category of article: Feature Articles
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Field of Law: International fiscal law, Einkommens----Gewinnsteuer