Search for:
Category

Tax

Category

On 22 November 2022, the Court of Justice of the European Union, sitting as the Grand Chamber, rendered a landmark decision on the validity of the Luxembourg provisions of the law of 13 January 2019, establishing the register of beneficial owners and implementing the EU anti-money laundering directives. According to the CJEU, the provision, whereby the information on the beneficial ownership of companies incorporated within the territory of the member states is accessible in all cases to any member of the general public, is invalid.

In October 2022, the Multilateral Instrument was ratified by the Mexican Senate and could enter into force as soon as February 2023. As of the entry into force of this instrument, the Mexican Double Tax Conventions (DTCs) in effect will be automatically modified, without having to enter into the specific negotiation processes with each one of the signatory states. The instrument is, perhaps, the most impressive result of the BEPS Project, as it permits updating DTCs and allows jurisdictions to incorporate BEPS actions into their current DTCs without the need to resort to bilateral negotiations.

Multinational groups are increasingly likely to use voluntary carbon credits as part of their efforts to decarbonize their businesses and achieve their climate goals. There are a number of tax complexities and risks depending on how voluntary carbon credits are going to be acquired and used by companies and further guidance from HMRC would be welcomed, particularly as the market grows and becomes more regulated. Where multinational groups are taking a strategic approach to their offset activity, tax functions should play an active role in design and implementing structured arrangements.

The secret is out, this will most likely not be news to you but there is a strong interplay between Transfer Pricing, Customs and VAT. Even though income tax authorities may have different views in how they consider valuation from a TP perspective and the valuation structure recognized by customs authorities, we can no longer ignore that a company’s TP policy/adjustments will affect their cross-border transactions of tangible goods and ultimately impact their dutiable/VAT position.

As a follow-up on the second Action Plan for the fight against social and tax fraud, a bill was recently submitted to the Belgian Chamber of Representatives, which contains a number of relevant tax controversy measures. Amongst the main measures is a significant extension of the tax investigation and assessment periods for income taxes and VAT. Overall, the bill significantly extends the powers of the Belgian tax authorities and limits to a certain extent the taxpayer’s procedural rights.

On 24 October 2022, the Netherlands published an extensive draft proposal, including detailed commentary, for the implementation of the GloBE Model Rules in Dutch tax legislation. The Dutch Pillar 2 Proposal is presented as a stand-alone legislative act referred to as the “Minimum Tax Act 2024”, which would exist separate from the Dutch corporate income tax act. The Minimum Tax Act 2024 is largely based on the EU Pillar 2 Directive that was published on 22 December 2021 and further updated in subsequent months.

Roughly one year after the federal election in September 2021, the German government’s plans to legalize cannabis for recreational use have further taken shape. German Minister of Health Karl Lauterbach has introduced a document on the key points of the planned legislative changes on Wednesday, 26 October 2022. According to this document, cultivation, distribution and taxation — as well as advertisement for recreational use — of cannabis will be specifically regulated.

By means of Decree 679/2022, dated 10 June 2022, the Executive Power created the Promotion of Investments for Exports of Knowledge Economy Activities Regime, and incorporated benefits for those registered in the National Registry of Beneficiaries of the Promotion of the Knowledge Economy Regime provided by Law 27,506.

From 2026, pure battery electric vehicles (BEVs) must be equipped with certain levels of advanced driver-assistance systems (ADAS); otherwise, excise tax rates will be higher. The Royal Gazette has published several notifications of the Excise Department regarding BEVs recently. The Notifications have introduced the ADAS requirements as a new condition to apply lower excise tax rates on BEVs along with detailed requirements on the use of domestically manufactured batteries.