In the present case, the tax authorities had concluded that Article 13(4) of the Double Taxation Convention with Spain did not prevent the Chilean State from taxing indirect transfers. On this basis, the tax authorities determined that capital gains resulting from an indirect transfer were fully taxable in Chile. An action brought by Inversiones Capital Global S.A. was dismissed by the Tax Court and subsequently appealed to the Court of Appeals. Judgement of the Court The Court ruled in favour of Inversiones Capital Global S.A. The Court concluded that, under the terms of the DTC between Chile and Spain, Chile had no right to tax when a Spanish resident made an indirect transfer to a Chilean company. According to the Court, Article 13(4) of the DTC applies only to direct transfers. Indirect transfers are covered by Article 13(5) and can only be taxed in the State of residence – Spain. Excerpt “(…) The first conclusion that can be drawn is ... Read more

In 2012, Flir Commercial Systems AB sold intangible assets from a branch in Belgium and subsequently claimed a tax relief of more than SEK 2 billion in fictitious Belgian tax due to the sale. The Swedish Tax Agency decided not to allow relief for the Belgian “tax”, and issued a tax assessment where the relief of approximately SEK 2 billion was denied and a surcharge of approximately SEK 800 million was added. An appeal was filed with the Administrative Court, In March 2020 the Administrative Court concluded that the Swedish Tax Agency was correct in not allowing relief for the fictitious Belgian tax. In the opinion of the Administrative Court, the Double tax agreement prevents Belgium from taxing increases in the value of the assets from the time where the assets were owned in Sweden. Consequently, any fictitious tax cannot be credited in the Swedish taxation of the transfer. The Court also considers that the Swedish Tax Agency was correct ... Read more