The OECD has published an interim report on the first seven of its fifteen planned suggestions towards combatting base erosion and profit shifting (BEPS) by multinationals through aggressive tax planning and tax avoidance projects.
Tax & Legal
The ECJ has held that no restriction on the freedom of capital movement arises from relieving domestic double taxation on dividend income under an exact imputation system, whilst foreign double taxation is relieved by exempting the foreign income.
The ECJ has held that the reduced VAT rate for books must be extended to e-books if the average consumer is likely to perceive the two products as essentially similar.
The ECJ has held that the definition of the “standard” fuel tank of a motor vehicle can include tanks for fuel used to operate the vehicle systems but fitted by a person other than the vehicle manufacturer.
The ECJ has held that the higher inheritance and gift tax allowances due to residents should also be granted on capital transfers between non-residents where at least one of the parties is resident in an EU member state.
The Supreme Tax Court has referred to the Constitutional Court on whether a confiscatory effect of the loss offset deferral provisions can be a breach of the equal treatment requirement of the constitution.
The Supreme Tax Court has rejected a provision in the financial statements for the costs of a voluntary audit of a KG on the grounds that in the absence of a legal or third party commitment, the audit is a matter for the year of completion.
The Supreme Tax Court has held the annual cost of a pension promise to a former owner/manager who retired before the pension date to be a hidden distribution.
The finance ministry has published a draft tax amending bill, basically to enact ECJ judgments against existing provisions and to react to perceived abuses and anomalies.
The finance ministry has drafted legislation to tighten and streamline the rules under which tax evaders who come forward can avoid prosecution.