Tax & Legal

Tax & Legal News – Issue 1, January 2013

In this issue: PwC Reports, Official Pronouncments, Supreme Tax Court Cases, From Europe and From PwC

PwC Reports

Statutory amendments for 2013
Retrospective application of tax changes

Official Pronouncements

Digitisation of employee withholding tax to go ahead
VAT on machine repairs
Medicine rebates to state system health funds reduce turnover for VAT
No VAT on sponsorships
Probationary period before granting owner/managers pension promises
Tax on wages of German resident aircrew flying for British and Irish airlines

Supreme Tax Court Cases

No transfer pricing adjustment for breaches of formality
No write-down of interest-free loan asset
5% dividend expense disallowance restricts freedom of establishment only
“Minimum taxation” constitutional
Phone call deduction for employees on tour
Staff sales benefit to be based on local net retail price
Bank investment management for EU-resident private clients subject to VAT

From Europe

No foreign tax credit method if domestic income exempt and corporation tax regularly below nominal rate; freedom of establishment vs. capital movement
Dividend withholding tax not disadvantage for foreign pension fund
Builders’ reverse charge applies to all construction work
Input tax split not necessarily by turnover
Houseboat at a permanent mooring can be immovable property
Health care VAT exemption may not be arbitrary

From PwC

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