Wolters Kluwer: Tax Law

The rise of teleworking due to #digitalization raises #tax #challenges, particularly regarding whether a home office can be considered a permanent establishment (#PE) for employees working remotely The article by Luc De Broe & Dieter Bettens sets out the traditional legal framework to determine the existence of a (material) PE on the basis of the #OECD Model Convention. Subsequently, this framework is applied to home offices. The authors finds that the OECD’s guidance on this point remains rather vague and that different countries have a different practice in recognizing home office PEs. Followed by several recommendations for possible clarifications on how the home office PE could be fit within the current legal framework of Articles 5 and 7 of the OECD Model Convention in light of the objectives of Article 7. 👀 Read the article published in Intertax on kluwerlawonline.com

The insightful event on 'Pillar 2 Developments: Views From the OECD, EU and More' is a unique opportunity to deepen your understanding of the evolving landscape of international tax and to network with professionals in the field. This is a unique opportunity to deepen your understanding of the evolving landscape of international tax and to network with professionals in the field. The speakers will be renowned experts Maria Saccomanni, Maarten Floris de Wilde and Rita Szudoczky with moderators Dennis Weber and Stefano Grilli 👉 Register now: https://lnkd.in/e7zbieSa Don't miss your chance to be part of this important conversation! We look forward to seeing you there! #Pillar2 #OECD #EU #TaxReform #InternationalTax #Networking

IRS Releases 2025 Inflation-Adjusted Tax Tables, Standard Deduction, AMT and Other Amounts. The IRS has released the annual inflation adjustments for 2025 for the income tax rate tables, plus more than 60 other tax provisions. The IRS makes these cost-of-living adjustments (COLAs) each year to reflect inflation. Read more at the link to find out your standard deduction for next year! #taxlaw #irs #inflationadjustments

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In the article, David Abrahams, Colleen O'Neill, and Saurav Agarwala of EY focus on a sampling of the U.S. and non-U.S. tax issues to consider when inbounding a foreign subsidiary. 👀 Read the article: https://lnkd.in/eQG3JvUe ✍ More information on access: https://lnkd.in/g-gzMUrh

Final Regulations Provide Answers for Withholding on Pension and Annuity Income Delivered Outside U.S. Pension, annuity and other similar deferred income payments are subject to mandatory withholding if the payments are delivered outside of the United States or the U.S. possessions. Taxpayers receiving these payments generally cannot elect out of withholding. Mandatory withholding does not apply, however, if the recipient certifies to the payor that he or she is not a U.S. citizen, a resident alien, or a tax-avoidance expatriate under Code Sec. 877. The final regulations clarify the withholding rules for certain situations. Read more at the link! #withholdingtax #pensionpayments #taxlaw

Why must the Dutch Supreme Court resist the temptation of “fraus legis” to follow the CJEU’s interpretative guidance in X BV? That is the question that Błażej Kuźniacki of PwC Netherlands answers in this article. The introduction gives insight in the case's history, some facts, dispute and preliminary questions, the CJEU's decision and the conclusion to whether or not the Dutch Supreme Court should resist the temptation of “fraus legis” and follow the CJEU’s interpretative guidance in X BV. If not, it may fail to respect EU primary law. #taxlaw #CJEU #Netherlands #decision #frauslegis #EU

Two accountants were each sentenced to 20 months in prison for their roles in the promotion and sale of abusive syndicated conservation easement tax shelters. From 2014 until 2019, one CPA sold tax deductions to his wealthy clients in the form of units in illegal syndicated conservation easement tax shelters organized and created by the CPA’s co-defendants. One of those persons sold approximately $14 million in false tax deductions to their clients, causing a tax loss to the IRS of about $4.8 million. He earned $491,400 in commissions from for his role in the scheme. Another CPA, between 2015 and 2019, sold units to his wealthy clients in these same syndicated conservation easement tax shelters. He sold approximately $8.5 million in false deductions, causing a tax loss of about $2.3 million, and earned approximately $525,072 in commissions. The scheme entailed the creation of partnerships that would purchase land and land-owning companies and then donate conservation easements over that land or the land itself. Appraisers would value the land and the partnerships would then claim a charitable contribution tax deduction based on the appraised value of the conservation easement, resulting in tax deductions flowing to the wealthy clients who purchased units in the partnership. The defendants were also ordered to pay substantial amounts in restitution. https://lnkd.in/g6nnQCFz #tax

The IRS has issued interim guidance in the form of questions and answers on the impact of IRC §402(c)(12) and §414(aa) on the Employee Plans Compliance Resolution System (EPCRS). The guidance also addresses the impact on correction of inadvertent benefit overpayments. EPCRS is a system of correction programs for certain employer sponsored retirement plans. A participant or beneficiary may make corrective payments in a lump sum, in installments, or through reductions in future payments. Previously, if a plan sponsor chose not to seek recoupment from a participant or beneficiary or was unsuccessful in obtaining full recoupment, the plan sponsor or another person had to make corrective payments to the extent the full overpayment amount was not repaid to the plan. The new guidance clarifies that an inadvertent benefit overpayment under IRC §402(c)(12) and §414(aa) is an eligible inadvertent failure that occurs due to a payment made from a plan exceeding limitations under the Code or the terms of the plan. An inadvertent benefit overpayment would also include a payment made before a distribution is permitted under the Code or the terms of the plan. However, an inadvertent benefit overpayment does not include a payment made (1) to a disqualified person or owner-employee; or (2) pursuant to a correction method provided under Rev. Proc. 2021-30 for a different qualification failure. A failure to obtain payment on account of any inadvertent benefit overpayment would not affect a plan’s qualification. Thus, a corrective payment generally is not required to be made to a plan with respect to an inadvertent benefit overpayment. Although a corrective payment is not required for an inadvertent benefit overpayment, other failures could occur as the result of an inadvertent benefit overpayment that could require a corrective payment. In addition, corrective payments are still required with respect to failures to observe funding based benefit restrictions that apply to certain single-employer defined benefit plans and to failures to observe contribution limits under IRC §401(a)(17) and §415. https://lnkd.in/gFb_b9RY #tax

#Taxation requires a democratic decision-making process to introduce #taxes into the legal order, and this process is currently lacking. The treaties require a strong injection of democracy to ensure that the exercise of the authority to tax is based on consensus. This issue represents the greatest departure from the US experience of ‘no taxation without representation’ The article by Gianluigi Bizioli explores the possibility of a ‘Hamiltonian moment’ in the European Union (#EU) public finances, drawing a parallel with the historical experience of the United States (#US) in the late eighteenth and early nineteenth centuries. Read the full article from Intertax on kluwerlawonline.com