Tag: Tax planning
Arrangement of a person’s business and /or private affairs in order to minimize tax liability.
/ Commercial rationality, Commercially Irrational Transactions, General Anti-Avoidance Rules (GAAR), Low tax jurisdiction, Sales and Marketing Hubs, Tax avoidance, Tax planning, Trading companies
The case involved export transactions carried out by a company domiciled in Brazil, Marcopolo, manufacturing bus bodies (shells) which were sold to subsidiary trading companies domiciled in low tax jurisdictions (Jurisdição com Tributação Favorecida). The trading companies would then resell the bus bodies (shells) to unrelated companies in different countries. The tax authorities argued that the sale of the bus bodies to the intermediary trading companies carried out prior to the sale to the final customers lacked business purpose and economic substance and were therefore a form of abusive tax planning. The Court reached the decision that the transactions had a business purpose and were therefore legally acceptable. Click here for translation Brazil vs M 2014 ... Continue to full case
/ Colourable devices, Digital Economy, India, Netherlands, Tax Avoidance Schemes, Tax planning, Tax schemes
In the Vodafone case, the Supreme Court of India found that tax planning within the law will be valid as long as it does not amount to a colourable device. India Vodafone-International-Holding-BV-2012 ... Continue to full case
In this case the Court held that while a “colourable device” could result in the transaction being considered a sham, that did not mean that tax planning within the law will not be permitted. India vs Azadi-Bachao-Andolan ... Continue to full case