Arguably this week has been a little softer on us in relation to transfer pricing developments, but tax authorities are still going after MNEs in different ways. The OECD has also released some more info on CRS and a great summary on CBCR per country. See below for more.
“The Inclusive Framework on BEPS has released information on the domestic legal frameworks for Country-by-Country (CbC) reporting around the world. This provides a high level snapshot for tax administrations and MNE Groups as to the first reporting periods, availability of surrogate filing including in the parent jurisdiction, and local filing…”
You can find the high-level snapshot at the bottom of the link. It is a brilliant resource but double check the information, the South African information is incorrect as there is surrogate filing.
“Diageo PLC (DGE.LN) said Wednesday it will oppose an additional 107 million pounds ($138.6 million)in taxes and interest if imposed by the U.K. government.
Earlier this year, the alcoholic beverages maker said it had been discussing its transfer pricing position and related issues with HM Revenue & Customs, the U.K. tax authority…
Diageo said it has learned Wednesday that HMRC intends to issue preliminary notices of assessment under the new diverted profits tax regime, which came into effect in April 2015.
Diageo said it understands this will require Diageo to pay additional tax and interest of GBP107 million in aggregate for the financial years ended June 30, 2015 and June 30, 2016…”
We are seeing the first cases coming through for the diverted tax regime that was introduced. Make sure if you are dealing with the UK that you are aware of the diverted tax regime and have provided the necessary notifications.
OECD launches facility to disclose CRS avoidance schemes; over 1800 relationships now in place to automatically exchange CRS information between tax authorities (OECD)
“As part of its ongoing efforts to maintain the integrity of the OECD Common Reporting Standard (CRS), the OECD is today [5 May 2017] launching a disclosure facility on the Automatic Exchange Portal which allows interested parties to report potential schemes to circumvent the CRS. Also today, a further important step to implement the CRS was taken, with an additional 500 bilateral automatic exchange relationships being established between over 60 jurisdictions committed to exchanging information automatically pursuant to the CRS, starting in 2017…”
Canadian Tax Court Holds that Agreements Reached Under the Mutual Agreement Procedure are Binding on the Canada Revenue Agency (National Law Review)
“On March 10, 2017, the Tax Court of Canada held that agreements reached under the Mutual Agreement Procedure (MAP) precluded the Canada Revenue Agency (CRA) from redetermining the transfer prices of rock salt sold by Sifto Canada Corp. (Sifto Canada) to a related party in the United States…
The Tax Court of Canada did not agree with the CRA and held the government to its MAP agreements. The Court found that by reaching an agreement under the MAP process, the CCA necessarily had to find that the transfer prices were at arm’s length under the Treaty…”
Sometimes it is just good to read something that makes sense.