Tag: Statute of limitation
A statute limiting the period within which a specific legal action may be taken, such as the collection of tax, appeal from a decision of the tax authorities or lower court, etc.
The CÍTRICOS case is about the use of TNM-method in Spain prior to 2006. Article 16 of the pre-reform 2006 TRLIS, picked up the implementation of this method as a preferred respect to other methods. Following the amendment of the article, this preference has disappeared, invoking a new and more in line with the principles of the OECD. – Method net margin operations (TNMM) applied by the Administration. This method was not expressly admitted by the Spanish legislation prior to the 2006 reform. The tax administration justify their application of the method in the following notes: – Article 9 of the Hispano-Dutch Convention (Being market valuation of related-party transactions between an entity resident with a Dutch resident entity). In either case, when the two enterprises in their relations, joined by accepted conditions imposed, which differ from those which would be made between independent enterprises, the benefits of the companies would have obtained in the absence of these conditions and that ... Continue to full case
/ Allocation of benefit, Cash pool, Combined transactions, Conoco-Philips, Financial Transactions, General Anti-Avoidance Rules (GAAR), Gjennomskjæring, Non-Recognition and Recharacterisation, Oil, Series of Related Transactions, Statute of limitation, Synergies, Tax Avoidance Schemes, Tax schemes
A tax assessments based on anti-avoidance doctrine “gjennomskjæring” were set aside. The case dealt with the benefits of a multi-currency cash pool arrangement. The court held that the decisive question was whether the allocation of the benefits was done at arm’s length. The court dismissed the argument that the benefits should accure to the parent company as only common control between the parties which should be disregarded. The other circumstances regarding the actual transaction should be recognized when pricing the transaction. In order to achieve an arm’s length price, the comparison must take into account all characteristics of the controlled transaction except the parties’ association with each other. While the case was before the Supreme Court, the Oil Tax Board made a new amendment decision, which also included a tax assessment for 2002. This amendment, which was based on the same anti-avoidance considerations, was on its own to the company’s advantage. Following the Supreme Court judgment, a new amended decision was made in 2009, which reversed the anti-avoidance decision for all three years ... Continue to full case
This case concerned the Danish company, Swiss Re, Copenhagen Holding ApS, which was wholly owned by the US company, ERC Life Reinsurance Corporation. In 1999 the group considered transferring the German subsidiary, ERC Frankona Reinsurance Holding GmbH, from the US parent company to the Danish company. The value of the German company was determined to be DKK 7.8 billion. The purchase price was to be settled by the Danish Company issuing shares with a market value of DKK 4.2 billion and debt with a market value of DKK 3.6 billion. On 27 May 1999, the parent company and the Danish company considered to structure the debt as a subordinated, zero-coupon note. Compensation for the loan would be structured as a built-in capital gain in order to defer recognition of the compensation for the period 1 July 1999 to 30 June 2000. The Danish company would be unable to use a deduction in income year 1999. A built-in capital gain should ... Continue to full case