Tax & Legal News – Issue 4, September 2014
In this issue: PwC Reports, Official Pronouncments, Supreme Tax Court Cases, From Europe and From PwC
PwC Reports
OECD interim report on BEPS
Proposed tax amending bill
Rules on tax evaders coming forward to be tightened
Official Pronouncements
Expense deduction from royalty income paid abroad only if expense exclusively benefits licensee
Asset write-downs for impairment of value
Foreign investment fund privilege extended
Driver as benefit in kind
Mobile phone sales reverse charge applies to any mobile device with a SIM card slot
VAT on sponsoring contributions
Supreme Tax Court Cases
DTT France – compensation for loss of employment taxable in state of employment
Accommodation and commuting costs abroad as travelling expenses
No deduction for preparatory costs of failed foreign PE
No write-off of amount due from equity investment
Tax-free gains on sale of shares are net of direct costs of sale
Subsequent sales price adjustments affect tax-free income in year of sale
Loss offset deferral unconstitutional?
No provision for costs of voluntary audit
Pre-tonnage tax gains fully chargeable to trade tax
Write-off of worthless loan to employer as expense of earning income
Benefit from employee shares to be measured on contract date
60% of liquidation loss deductible by natural person significant investor
Insurance premium rebates not employment income if also available to employees of other companies
Pension promise to owner/manager hidden distribution
No tax deduction on confiscation of gains from corrupt dealing, unless tax effect had not been taken into account
Sale of mining right as sale of real estate
Employee withholding tax – tax office opinion not obviously wrong
No change from lump sum to mileage log company car benefit during year
No increase in the allowance for travelling to work for unusual repairs to car
Shared workspace can lead to home office deduction
No VAT return for German branch without taxable turnover
Waiver of VAT exemption on property rentals can be by room
Country agent not free of VAT
Division of input tax on dual-use buildings
Hotel meals in a package are ancillary to the accommodation
Travel agent’s discount does not reduce his taxable commission receipts
Inputs for dual-use buildings generally in output ratio
Airline snacks subject to VAT
Energy tax rebate for aircraft not dependent upon official registration as airline
From Europe
Tax groups not broken by foreign parent or intermediate holding
Duty on smuggled goods due from any holder
Notarial fees may not be charged for the state on change in legal form
Leasing revenue of bank in VAT fraction to include interest portion only
Higher inheritance tax allowances for residents also for EU taxpayers
Standard fuel tank of vehicle may be fitted other than by manufacturer
Reduced VAT rate for books not necessarily applicable to e-books
Differing forms of double tax relief not restriction on free movement of capital
From PwC
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