Transfer Pricing and Anti-abuse Rules

Pogorelova, Lioubov

doi:10.54648/taxi2009069

Cited by 3 publications

(3 citation statements)

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“…First, arguably, the historical development of article 9 indicates that it has an anti-avoidance flavour in the sense of combating tax avoidance among associated enterprises. 37,38,39,40 In light of this, specific national anti-abuse rules targeting related parties and applicable in residence-residence situations, need to be tested with article 9. As CFC rules 41 42 analyse the interaction of national thin capitalization rules (which apply to related parties and are based on fixed debt-to-equity ratios) with article 9 (see section 3.).…”

Section: Transfer Pricing Rules Cfc Rules Relief Rules Iir and Tax Tr...mentioning

confidence: 99%

Tax Treaty Obstacles in Implementing the Pillar Two Global Minimum Tax Rules and a Possible Solution for Eliminating the Various Challenges

Chand,

Turina,

Romanovska

2022

World Tax J.

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This article addresses the interaction between the global anti-base erosion rules (GloBE rules, namely, the income inclusion rule, IIR, and the undertaxed payments rule, UTPR) with tax treaties. In particular, the article analyses potential limitations to the application of the IIR by the provisions of article 9 of tax treaties. Further, the article investigates possible obstacles to the application of the IIR to tax treaties that contain tax sparing clauses. The article then conducts a similar analysis with respect to the UTPR, which is assessed from the perspective of article 9 and the non-discrimination provisions of article 24. Furthermore, the article explores whether importing article 9(1) into the list of exceptions to the saving clause would be appropriate, and the related consequences. Thereafter, the article gives an insight into the problem of tax treaty overrides which may arise if the Pillar Two rules are implemented in national legislation without making relevant changes to tax treaties. Moreover, this contribution also explores the dispute resolution instruments available to solve potential tax disputes that could arise when “taxation not in accordance with the convention” is detected, as well as other tax disputes that could arise from inconsistent application of the GloBE rules. The authors also highlight possible ramifications under non-tax agreements for such situations. In light of the strong arguments made in this article which indicate that conflicts could indeed arise and treaty overrides could occur, the authors put forth a solution in the form of a safeguard clause – as opposed to a saving clause or interpretative MAPs – that policymakers can incorporate in their treaty network to ensure that the GloBE rules can be applied without triggering frictions with tax treaty law. On the other hand, if such a clause is not inserted into tax treaties, then there is a concrete risk that an unforeseen obstacle of considerable magnitude could arise on the path of the Pillar Two initiative. Of course, the Pillar Two rules should be applied within the boundaries of the safeguard clause and if a state goes beyond its authorization, a conflict with the provisions of the treaty could once again arise. This could then possibly give the taxpayers access to MAPs for misapplication or inconsistent application of the Pillar Two rules. Needless to say, such a clause needs to be implemented through a Multilateral Agreement, which the authors discuss in this contribution. Finally, the authors also analyse selected treaty law-related discrimination issues linked to domestic minimum taxes that are being contemplated by several jurisdictions.

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Section: Transfer Pricing Rules Cfc Rules Relief Rules Iir and Tax Tr...mentioning

confidence: 99%

Tax Treaty Obstacles in Implementing the Pillar Two Global Minimum Tax Rules and a Possible Solution for Eliminating the Various Challenges

Chand,

Turina,

Romanovska

2022

World Tax J.

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Section: Transfer Pricing Rules Cfc Rules Relief Rules Iir and Tax Tr...mentioning

confidence: 99%

Tax Treaty Obstacles in Implementing the Pillar Two Global Minimum Tax Rules and a Possible Solution for Eliminating the various challenges

Chand

Turina²,

Romanovska

2021

SSRN Journal

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“…Так, в рамках подготовки законопроекта, который ввел в правовое регулирование концепцию DEMPE, говорится о целях реализации пунктов 8-10 Плана BEPS, совершенствовании налогового контроля в отношении высокорисковых трансграничных сделок между взаимозависимыми лицами, предметом которых выступают нематериальные активы. Законопроект предусматривает внесение в Налоговый кодекс РФ изменений, направленных на определение факторов сопоставимости нематериальных активов, учет функций по разработке, совершенствованию, поддержанию, защите, использованию нематериальных активов (или осуществлению контроля над выполнением этих функций) при определении сопоставимости сделок 8 .…”

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The concept of DEMPE as a mechanism to combat tax evasion

Boltinova

Sorokin

2022

Вестник Университета имени О.Е. Кутафина (МГЮА)

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The concept of DEMPE as a mechanism to combat tax evasionAbstrасt. The article is devoted to the analysis of the concept of DEMPE. For the first time in the Russian tax doctrine, questions are raised related to the study of DEMPE as a mechanism to combat tax evasion. For the purposes of the study, the authors examine the history of the adoption of the DEMPE concept both internationally and domestically. The norms and law enforcement practice justifying the application of this concept in tax audits are also investigated.

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Transfer Pricing and Anti-abuse Rules

Cited by 3 publications

References 0 publications

Tax Treaty Obstacles in Implementing the Pillar Two Global Minimum Tax Rules and a Possible Solution for Eliminating the Various Challenges

Tax Treaty Obstacles in Implementing the Pillar Two Global Minimum Tax Rules and a Possible Solution for Eliminating the Various Challenges

Tax Treaty Obstacles in Implementing the Pillar Two Global Minimum Tax Rules and a Possible Solution for Eliminating the various challenges

The concept of DEMPE as a mechanism to combat tax evasion

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