Accordingly, this guidance is not intended to prevent countries from implementing approaches to address the balance of debt and equity funding of an entity and interest deductibility under domestic legislation, nor does it seek to mandate accurate delineation under Chapter I as the only approach for determining whether purported debt should be respected as debt ... Read more

Accordingly, this guidance is not intended to prevent countries from implementing approaches to address the balance of debt and equity funding of an entity and interest deductibility under domestic legislation, nor does it seek to mandate accurate delineation under Chapter I as the only approach for determining whether purported debt should be respected as debt ... Read more

In this case a complaint was filed requesting that Legislative Decrees Nos. 762, 763 and 764, approved at the Plenary Session of the Legislative Assembly on 30-VIII-2014, which ended on 31-VII-2014, be declared unconstitutional on procedural grounds, for the alleged violation of art. 135 inc. 1 of the Constitution of the Republic. The fundamental reason for the declaration of unconstitutionality is that there was no real possibility for parliamentary deliberation and discussion. Decision of the Supreme Court The court declared certain legislative decrees relating to the income tax law and the tax on financial transactions to be unconstitutional with effect as of December 2018. Among the tax measures affected by the decision were Alignment of El Salvador’s transfer pricing rules with the OECD guidelines; Ability of the El Salvador tax authorities to exchange information with other tax jurisdictions; In its reasoning the court refers to procedural flaw in the legislative process, because the decrees were not deliberated or debated by ... Read more

The Swedish Supreme Administrative Court makes it clear that OECD guidelines can be used for interpreting Swedish domestic legislation in cases where the domestic legislation is based on OECD guidance and principles. It is also concluded, that the fact that an agreement is given a certain legal term does not mean that the Court is bound by that classification. It is the substance of the agreement – based on the facts and circumstances – that matters. Click here for translation Sweden-vs-Corp-HFD-2016-ref.-23 ... Read more

A request for a preliminary ruling concerning the interpretation of Article 49 EC was filed by the Belgian Courts in a case between the Belgian tax autorities and Société d’investissement pour l’agriculture tropicale SA (SIAT) where the company had been denied tax deductions for service costs in an amount of BEF 28 402 251 paid to a related party in a low tax jurisdiction. Judgement of the Court The answer from the court was in favour of Société d’investissement pour l’agriculture tropicale SA. According to the Court “Article 49 EC must be interpreted as precluding legislation of a Member State, such as the legislation at issue in the main proceedings, under which payments made by a resident taxpayer to a non-resident company for supplies or services are not to be regarded as deductible business expenses where the non-resident company is not subject, in the Member State of establishment, to tax on income or is subject, as regards the relevant income, ... Read more