AG Opinion – Freedom of establishment and transfer pricing
C-382/16 Hornbach-Baumarkt   The German tax authorities carried out a tax assessment on Hornbach and found that the free of charge comfort letters the company sent to banks and creditors, containing a guarantee for the benefit of its foreign subsidiaries from which it did not receive any remuneration, had not been granted on arm’s length
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Jacobs v French Minister for Finance and Public Accounts (C-327/16)
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This was a request for a preliminary ruling from the French Council of State relating to interpretation of Article 8 of the Merger Directive (Directive 90/434/EEC), in particular whether Article 8(2) precludes national legislation which establishes a mechanism to defer taxation of the capital gains arising when shares or securities are exchanged until such shares
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CJEU decision in Argenta: Belgian rules limiting interest deduction to the extent of dividends received
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Under Belgian interest limitation rules, a deduction of interest payments is disallowed where the taxpayer receives exempt dividends from shares held by the company for less than a year. The question for the CJEU was whether the Belgian rules are compatible with the Parent-Subsidiary Directive (PSD). In this case, the CJEU departed from the Advocate
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Advocate General finds Dutch tax consolidation regime to infringe the freedom of establishment
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These are two joined cases, X BV concerning the application of the Dutch interest deduction limitation rule to prevent base erosion, and X NV concerning the non-deductibility of currency losses on a participation in a non-Dutch/EU subsidiary under the Dutch participation exemption. The facts of the first case are as follows: X BV was part
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A Oy – immediate taxation of capital gains of non-resident PE
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The case concerns the immediate taxation of capital gains of a non-resident PE of A Oy, a Finish company, that resulted from the transfer of the PE to a company (X), that was also non-resident in Finland, in the course of a transfer of assets. In return, A Oy received shares in X. A Oy
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2017 Budget – Cross Border Issues
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The new legislative announcements in the 2017 budget include: With effect from April 2019, income tax will be charged on royalties that are paid to low tax jurisdictions irrespective of where the payer is located. The government’s position paper on corporate tax and the digital economy is available here. Assessment time limits for non-deliberate offshore
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Common sense prevails in BNM…
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The long awaited Judgment of BNM v MGN [2017] EWCA Civ 1767 has finally been handed down.
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HMRC v Mercedes Benz Financial Services – CJEU clarifies test on nature of supply of leasing contracts with option to
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HMRC    
The facts of the case concerned a certain type of motor vehicle finance agreement, called an “Agility Agreement”, under which the customer, having paid monthly instalments in exchange for using the vehicle for a specific period, had an option to purchase the vehicle in consideration for a “balloon” payment of approximately 40 per cent of
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HMRC announces change in policy on VAT treatment of pension fund management services
HMRC    VAT    
With Revenue and Customs Brief 3 (2017) HMRC has announced a change in policy in the treatment of pension fund management services provided by regulated insurance companies. This means that insurers will no longer be allowed to treat their supplies of management services provided in connection with defined benefit pensions (which do not qualify as
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