PwC Greece Tax and Legal’s Post

#Israel: The Official Gazette issued a law introducing a 6 percent additional tax on financial institutions, effective April 1. Read more: https://lnkd.in/exx5f7KT Follow us for the latest VAT updates. #vatcompliance #vatnews #taxnews #taxcompliance #taxlaws

𝐊𝐧𝐨𝐰𝐥𝐞𝐝𝐠𝐞 𝐇𝐚𝐬 𝐍𝐨 𝐁𝐨𝐮𝐧𝐝𝐚𝐫𝐢𝐞𝐬 𝐈𝐧𝐜𝐨𝐦𝐞 𝐂𝐥𝐚𝐬𝐬𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐮𝐧𝐝𝐞𝐫 𝐓𝐚𝐱 𝐓𝐫𝐞𝐚𝐭𝐲- 𝐑𝐞𝐥𝐞𝐯𝐚𝐧𝐭 𝐟𝐚𝐜𝐭𝐨𝐫 𝐒𝐮𝐛𝐬𝐭𝐚𝐧𝐜𝐞 𝐨𝐯𝐞𝐫 𝐅𝐨𝐫𝐦 One of the basic principles for entering into a tax treaty is to avoid tax evasion. For this, the first rule is the characterisation of income to determine the taxing rights available to each of the contracting States. However, it is easier said than done especially in today’s complex web of business environment leading to an even more complex transaction structure. In today’s edition of 𝐀𝐫𝐨𝐮𝐧𝐝 𝐓𝐡𝐞 𝐆𝐥𝐨𝐛𝐞, we and Taxsutra bring to you a decision by the France Supreme Court dealing with a complex transaction. The issue before the French Supreme Court was whether the transaction was a real estate transaction or a financial transaction? To conclude, the French Supreme Court analysed (a) whether contracts constitute an abuse of rights (b) what was the real character of income and (c) whether there existed an abnormal management act. In the end, the French Supreme Court applied the substance over form test whilst characterising the income and distributive rights of taxation. The decision and the analysis can be accessed from the following link https://lnkd.in/gzZ-U6dP If you are keen on receiving tax treaty insights, subscribe now to WhatsApp channel https://lnkd.in/gcA_eGGk #taxavoidance #taxevasion #France #Germany #realestatetransaction #FrenchSupremeCourt #substanceoverform #incomecharacterisation #distributiverights #saleandleaseback #business #transactionstructuring #DTAA #Internationaltax #taxplanning #treatyinsights #courts #opinions #finanicaltransaction #leasingcontracts #usufruct #taxtreatyinterpretations #taxtreaty

#taxtreatyinterpretations The decision of the Supreme Administrative Court of France is important considering that the Court has applied the tax treaty taking into account the substance of the transaction instead of the legal form. In the Italian case of SICOT Limited, the Italian Supreme Court discussed the interplay between various articles dealing with immovable property /business income and held that if the taxpayer is in the business of purchase and sale of immovable property, Article 7 of the tax treaty dealing with business profits governs taxability of such income and neither Article 6 dealing with income from immovable property nor Article 13 dealing with capital gains would govern such cases. It is therefore important to note that the characterisation of income is essential to determine the appropriate taxing rights both under domestic tax law and tax treaties and such characterisation should be governed by the substance of the transaction and not by the legal form. #taxtreaty #treatyinterpretations #characterisation #courts #france #Italy #dtaa #internationaltax #crossborder #capitalgains #immovableproperty

The method used to determine the value of your intellectual property has a massive effect on your tax bill. In this Tax Court of South Africa case, the expert consulted by the Taxman *assumed* that the trade marks in question were licensed along with the goodwill. Unfortunately, goodwill was explicitly excluded. [check out paragraphs 39-39, 65, 89-90, 97-98]. There is also much more to bemoan about the methodology used in his transfer pricing calculation. What a monumental blunder.

The attorney general in Israel approved the publication of a new voluntary disclosure procedure that will enable Israelis who, up to now, have concealed wealth from the state and not paid taxes to make a report and pay the tax they owe without fearing criminal proceedings. The procedure is especially relevant for people who deal in cryptocurrencies and have had difficulty in regularizing their profits from the point of view of reporting and taxation, Israel Tax Authority director Shay Aharonovich announced. Do you want to know more about the voluntary disclosure procedure? Watch my explanation>>

🔍 A Pivotal Moment in Transfer Pricing: The Latest Court Decision Unveiled In the intricate dance of international business, transfer pricing has long been a critical step, choreographed with precision to align with global tax regulations. Yet, the French Tax Administration (FTA) has recently taken steps to intensify its scrutiny, signaling a potential uptick in the rigor with which these transactions are examined. This heightened attention comes at a time when a landmark court case has cast new light on the principles and practices surrounding transfer pricing adjustments. The decision, intricate in its implications, may well set a precedent, altering the landscape for taxpayers and practitioners alike. In our analysis, we delve into the nuances of this pivotal decision, unpacking its layers to reveal its core implications for transfer pricing strategies moving forward. We explore: The FTA's Evolving Stance: How recent actions by the French tax authorities reflect a broader trend of increased vigilance and what this means for multinational enterprises. Case Analysis: A detailed examination of the court's rationale, the factors influencing its decision, and the potential ripple effects across the realm of international tax law. Strategic Implications: Practical insights and strategic considerations for businesses navigating the complexities of transfer pricing in this new regulatory environment. This case serves as a critical reminder of the dynamic nature of tax law and the importance of staying informed and agile in our strategies. As we dissect the intricacies of this decision, we invite you to engage with us, share your perspectives, and join the conversation on how these developments may shape the future of transfer pricing and international tax compliance. 📈 Stay ahead of the curve in international tax law. Your insights and experiences enrich our collective understanding and foster a community of informed, proactive professionals. #TransferPricing #TaxLaw #InternationalTax #FTA #LegalInsights #TaxStrategy #GlobalBusiness

Germany’s Federal Fiscal Court has ruled in favor of French and Luxembourgish investment funds, granting refunds of withholding taxes plus interest! This landmark decision highlights that comparable foreign investment funds deserve equal treatment under EU law. 🇫🇷🇱🇺🇩🇪 Get more details in our #PwCFlash: https://ow.ly/xaLM50TattB 🔍 #TaxNews #InvestmentFunds #EULaw #WithholdingTax

New procedure for calculating material benefit from savings on interest on loans   Federal Law No. 259-FZ dated 08.08.2024 amends the calculation of material benefit from savings on interest on loans.   Now the minimum of two key rate values should be used to calculate the material benefit (subparagraph 1, paragraph 2, Art. 212 of the Tax Code of the Russian Federation): - as of the date of conclusion (or amendment) of the loan agreement; - on the date of receipt of income (the last day of the month for which the calculation is made).   Under the old rules, the calculation was based on the CBR rate on the date of receipt of income - the last day of the month. The new rule applies to income received from January 1, 2024. If personal income tax on material benefit was withheld in 2024, income and tax must be recalculated.

Adjudication and Advance Ruling are Independent of Each Other: AAR [Read Order] #AAR #AdvanceRuling #Adjudication #taxscan #taxnews Read More: https://lnkd.in/gEi8wjZ8

At the heart of the matter is an accusation by the Public Prosecution that the suspect collaborated with two others in the commission of tax evasion. The alleged purported method involved storing excise goods without the requisite digital tax stamp, leading to the evasion of AED 496,300 in Excise Tax and AED 47,915 in Value-Added Tax. Notably, the accused, employed as a driver in a company, claimed to have merely followed instructions to transport the goods from one location to another. The Federal Court of First Instance, in its initial ruling, found the accused guilty of tax evasion and imposed a substantial monetary fine amounting to 300% of the evaded taxes. Discontented with this decision, the accused appealed to the Federal Court of Appeal, which, unfortunately, upheld the initial ruling. Undeterred, the accused then escalated the matter to the Federal Supreme Court, contesting the verdict on grounds of law violation and erroneous application. Key arguments included the absence of essential elements for a tax evasion crime, falling outside the scope of the criminalizing provisions, an inability to object to employer orders, and lack of awareness regarding the nature of the transported goods. On December 19, 2023, the Federal Supreme Court delivered a momentous judgment, deeming the appeal valid and overturning the decision of the Federal Court of Appeal. The case was remitted back to the lower-level courts for further investigation, with the Federal Supreme Court basing its decision on the following crucial principles: - To be implicated in tax evasion, an individual must be actively engaged in business operations and bear a legal obligation to settle taxes. - The commission of tax evasion offenses hinges on a specific intent to circumvent tax liabilities, necessitating an awareness of the wrongful actions undertaken. - The accused contended in the lower-level courts that they were not personally involved in the alleged tax evasion but merely functioned as a driver for the culpable company. However, there arguments were dismissed by the lower-level courts without adequate substantiation for such dismissal. - The lower-level courts failed to provide a comprehensive examination of the constituent elements of the tax evasion offense and whether they were applicable to the accused in the present case. Habib Al Mulla and Partners #taxevasion #criminallaw #vat #taxcompliance #excisetax #criminalintent