Introduction The present contribution aims at discussing two fundamental concepts often coming into play in the analysis of transactions between associated enterprises involving intangible property: the notion of (i) significant people functions (“SPFs”)[1] and that of (ii) development, enhancement, maintenance, protection and exploitation of intangible property (“DEMPE”)[2]. Based on my practical experience, lately these two notions have been inaccurately used (no pun intended) interchangeably by both taxpayers and tax administrations when it comes to the performance of the functional analysi ..read more

We are happy to inform you that the latest issue of the journal is now available and includes the following contributions:   Bruno Peeters, European Law Restrictions on Tax Authorities’ Use of Artificial Intelligence Systems: Reflections on Some Recent Developments The article discusses the increasing use of artificial intelligence (AI) by tax authorities in the European Union, the resulting benefits and risks, and the necessity for an appropriate legal framework. Tax administrations employ AI systems for various tasks, from risk detection to legal analysis. While automation offers effici ..read more

Resolution 78/230 was approved by the United Nations General Assembly in December, 2023, creating a mandate for an ad-hoc committee inclusive of all UN member states to draft the terms of reference for a framework convention for international cooperation in tax matters. This unprecedented resolution was approved by a majority vote driven by the global South, especially the African Union. There had been several prior attempts to bring international taxation to the political agenda at the UN, most importantly in 2004 under the leadership of José Antonio Ocampo and in 2015 during the Addis Ababa ..read more

In my previous blog I examined the Tax Court of Canada’s analysis of the meaning of beneficial ownership in tax treaties in Husky Energy Inc. v The King, 2023 TCC 167 in relation to stock or securities lending. This post examines the application of the General Anti-Avoidance Rule(GAAR) in Canada to the transactions. The facts of the case are set out in my previous blog. While the GAAR is expressed to override tax treaties, its significance is its similarity with the Principal Purpose Test (PPT) in Article 29(8) of the OECD and UN Model treaties as well as Article 16(1) of the BEPS  MLI. S ..read more

We are happy to inform you that the latest issue of the journal is now available and includes the following contributions: Irma Mosquera Valderrama, Throughput Legitimacy of the Peer Review Process of the Four Beps Minimum Standards: A Case Study This article focuses on the Base Erosion Profit Shifting (BEPS) Project and more specifically on the peer review of the four BEPS minimum standards. The first part of this contribution introduces the analysis of this process in the context of a case study of seven countries participating in the BEPS Inclusive Framework: Cameroon, Congo, Costa Rica, Ja ..read more

Introduction The anti-profiteering law[1] under the Goods and Services Tax law (‘GST’) in India has been a subject matter of debate since the time GST was introduced. More than a hundred petitioners challenged the constitutional validity of the anti-profiteering provision by virtue of a petition before the Hon’ble Delhi High Court (‘DHC’). At the conclusion of several months-long proceedings, the decision was finally pronounced by the Court on January 29, 2023, by upholding the constitutional validity of the Anti-Profiteering provisions and approving a wide discretionary power to determine the ..read more

Highlights & Insights on European Taxation Please find below a selection of articles published this month (February 2024) in Highlights & Insights on European Taxation, plus one freely accessible article. Highlights & Insights on European Taxation (H&I) is a publication by Wolters Kluwer Nederland BV. The journal offers extensive information on all recent developments in European Taxation in the area of direct taxation and state aid, VAT, customs and excises, and environmental taxes. To subscribe to the Journal’s page, please click HERE Year 2024 ..read more

AN INTRODUCTION IS IN ORDER As the new Managing Editor of the Kluwer International Tax Blog I have been asked to introduce myself to our audience.  Such an invitation is also an opportunity for self-reflection. I entered the world of tax 20 years ago.  On 1 March 2004, soon after graduating from the University of Belgrade Faculty of Law, I began my professional career as a consultant with Deloitte Serbia.  Immediately I fell in love with my work and to be honest the feeling has not left me since.  Although age does curtail our passions, I still feel the same excitement I fe ..read more

What is the current Tax Framework under the UN Model for Taxation of International Shipping and Airline-related income? The current version of the United Nations Model Double Taxation Convention between Developed and Developing Countries (“UN Model 2021”)[1] offers two alternatives under Article 8. Alternative A aligns with the OECD Model Tax Convention on Income and Capital (OECD Model 2017)[2], advocating for the exclusive taxation rights of the Residence State over income derived from the operation of ships and aircraft in international traffic. The commentary on the UN Model provides tha ..read more

We are happy to inform you that the latest issue of the journal is now available and includes the following contributions: Alice Pirlot, Climate Clubs: An International Tax Law Perspective Global carbon pricing has often been portrayed as an interesting idea that will never be implemented due to political hurdles. Yet, this description is being challenged: growing political support for climate clubs suggests that a global carbon price might become reality in the future. This article investigates the conditions for the adoption and implementation of a climate club based on a global carbon price ..read more