The Baker McKenzie EMEA Tax Practice Group is presenting a series of short webinars to keep members of the community abreast of recent developments in these uncertain times. On 10 November 2020, the session focused on specific cases and provided the perspectives and recent experience of specialists based in a number of typical investment jurisdictions.
Over recent years, the tax landscape around investment and asset management activity has changed tremendously due to the enhanced beneficial ownership test (as it results from the decisions of the European Court of Justice in the so-called “Danish cases”), as well as the new anti-abuse provisions introduced by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) and, in particular, the principal purpose test (PPT).
This changed approach affects the traditional structuring and governance of private equity funds. During this second session on the topic, our panel builds on the ideas from the first session, discusses specific cases and provides the perspectives and recent experience of specialists based in a number of typical investment jurisdictions (including Germany, Italy, Spain and the Netherlands). Some countries have already reacted to the decisions in the Danish cases or have perhaps provided some helpful guidance on how to implement the PPT in practice. These elements will also be shared during this session and their application will be discussed in the context of practical examples.
After this second session, you should know whether your current or contemplated structure is likely to meet the test or whether an adjustment may be needed.