PwC

Tax & Legal

Tax & Legal

EU-Council agreed on four adjustments to EU’s current VAT rules


Pending introduction of the new VAT system, four short-term ‘quick fixes’ will be made regarding the VAT aspects of trade between the member states. Discussions are ongoing on a definitive VAT system to replace the current ‘transitional’ VAT arrangements, which have been applied since 1993. Continue reading

Exemption of loss forfeiture for troubled businesses not illicit state aid


The ECJ overturned an earlier judgment of the European General Court and held that the German tax legislation concerning the possibility of a loss-carry forward to future tax years despite a harmful share acquisition in cases of a rescue plan to save the company from insolvency – known as the salvage clause – is not illegitimate state. Continue reading

ECOFIN-Council formally accepts the changes to the Mutual Assistance Directive in relation to the reporting obligation for cross border arrangements (DAC6)


In its sitting on 25 May 2018, the ECOFIN council formally accepted the Directive to amend the Mutual Assistance Directive 2011/16/EU to provide for the mandatory exchange of information in the area of taxation for reportable cross-border arrangements. ECOFIN had already reached a political agreement on the planned reporting obligation for cross-border tax arrangements at its plenum on 13 March 2018. Continue reading

EU finance ministers agree on mandatory disclosure for intermediaries (DAC6)


On 13 March 2018, the ECOFIN Council, composed of the EU-28 Finance Ministers, reached political agreement on a Council Directive amending Directive 2011/16/EU on administrative cooperation in the field of taxation as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements in order to disclose potentially aggressive tax planning arrangements (also commonly referred to as DAC6).

Continue reading

Immediate taxation on transfer of a foreign branch is not proportional


In a decision published on 23 November 2017 the European Court of Justice (“ECJ”) again considered the question on the taxation of the transfer of assets of a foreign branch in exchange for new shares. The question was referred to it by the Administrative Court of Helsinki in Finland. The ECJ held that the taxpayer must be given the choice between an immediate charge to tax and a deferred payment of tax. Continue reading