Tag: Nycomed

Denmark vs Takeda A/S and NTC Parent S.a.r.l., November 2021, High Court, Cases B-2942-12 and B-171-13
/ Anti-avoidance provisions, Apax, Beneficial Owner, Beneficial owner, Blackstone, British Virgin Islands, Conduit company, Conduit jurisdictions, Decision in favor of tax authority, Denmark, EU Parent Subsidiary Directive, Financial Transactions, General Anti-Avoidance Rules (GAAR), High Court, Inter-company loan, Interest, Interest and royalty directive, Limitation On Benefits Provision, Local anti avoidance, Luxembourg, No commercial purpose or rationale, Nycomed, Providence, Substance over form, Tax avoidance, Tax Avoidance Schemes, Tax Treaty Interpretation, Tax treaty interpretation, Treaty shopping, Withholding tax
The issue in these two cases is whether withholding tax was payable on interest paid to foreign group companies considered “beneficial owners” via conduit companies covered by the EU Interest/Royalties Directive and DTA’s exempting the payments from withholding taxes. The first case concerned interest accruals totalling approximately DKK 1,476 million made by a Danish company in the period 2007-2009 in favour of its parent company in Sweden in connection with an intra-group loan. The Danish Tax Authorities (SKAT) subsequently ruled that the recipients of the interest were subject to the tax liability in Section 2(1)(d) of the Corporation Tax Act and that the Danish company was therefore obliged to withhold and pay withholding tax on a total of approximately DKK 369 million. The Danish company brought the case before the courts, claiming principally that it was not obliged to withhold the amount collected by SKAT, as it disputed the tax liability of the recipients of the interest attributions. The second ... Read more