Tag: OECD Model Tax Treaty  

See: Model tax treaty

Luxembourg vs "Lux Service SA", December 2020, Higher Administrative Court, Case No 45072

Luxembourg vs “Lux Service SA”, December 2020, Higher Administrative Court, Case No 45072

/ Administrative Tribunal, Decision in favor of tax authority, Double tax treaty, Exchange of information, Information injunction, Legal formality, Luxembourg, OECD Model Tax Treaty  , Tax Treaty Interpretation, Tax treaty interpretation, Transfer Pricing Documentation
In August 2020, the competent authority of the Belgian tax administration sent a request for information to the Luxembourg tax administration concerning “Lux Service SA” under the tax convention between Luxembourg and Belgium. The requested information regarding “Lux Service SA” was documentation related to the basis for service payments from a related party in Belgium. The tax administration in Luxembourg contacted “Lux Service SA” and requested submission of the information and documents. Lux Service SA did not want to accommodate the request and brought the case to the High Administrative court for an annulment. The tax authorities argued that the appeal should be dismissed as unfounded. The Court dismissed the appeal of “Lux Services SA” and upheld the information injunction issued by the tax administration. The argument that the tax administration had failed to state the reasons for the information injunction was rejected by the Court as unfounded. According to the Court, the information injunction was based on a sufficiently ... Read more
Canada vs Knights of Columbus, May 2008, Tax Court, Case No. 2008TCC307

Canada vs Knights of Columbus, May 2008, Tax Court, Case No. 2008TCC307

/ Article 5, Canada, Decision in favor of taxpayer, Decision on interpretation of rule, Field agents, Fixed place of business, Independent agents, Insurance, OECD Model Tax Treaty  , Permanent Establishments, Tax Court, Tax treaty interpretation, Tax Treaty Interpretation
The Knights of Columbus, a resident United States corporation, provides life insurance to its Canadian members and relies upon Canadian agents to do so. The issue before the court was whether the Knights of Columbus is liable for tax in Canada on business profits from its insurance business. This hinges on the application of the Convention between the United States of America and Canada with respect to Taxes on Income and Capital (the Canada-U.S. Treaty), specifically a determination of whether the Knights of Columbus has a permanent establishment in Canada as a result of either: (1) carrying on its business through a fixed place of business in Canada (Article V(1) of the Canada-U.S. Treaty). (2) using agents, other than independent agents acting in the ordinary course of their business, who habitually exercise in Canada authority to conclude contracts in the name of the Knights of Columbus (Article V(5) and (7) of the Canada-U.S. Treaty). The Tax Court’s decision The Tax ... Read more