February/March 2017  
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European Taxation
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Issue No. 2/3 - 2017 of the European Taxation is now available online.

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9th Latin American Regional Congress
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5-8 September 2017
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Number 2/3 - 2017 contains the following:
European Union

BEPS Action 4: Policy Considerations and Implementation Status

René Offermanns, Steef Huibregtse, Louan Verdoner, and Avisha Sood

This article addresses BEPS Action 4. The authors provide a historical perspective of the relevant BEPS and EU measures, explain the highlights of BEPS Action 4, discuss the overlap between the different Actions, update readers on country-specific implementation of BEPS Action 4, summarize existing case law in the area, present practical examples dealing with the impact of Action 4 on certain structures and, finally, provide concluding remarks.


Corporate Tax Reform (CTR) III

Roland Suter

The author examines the basic features of the final bill on CTR III approved by the Swiss parliament on 17 June 2016, which will be subject to a public vote on 12 February 2017. The article further outlines plans of the cantons of Basel-Stadt, Geneva, Zug and Zurich for implementing the reform at the cantonal level. In addition, the tax implications for beneficial owners of corporate structures are shown, including an outlook on what will happen in the event the final bill is not approved.

Italy/European Union

Domestic Double Deduction of Costs and the ECJ Decision in Brisal and KBC Finance Ireland (Case C-18/15): Tax Collection in Respect of Cross-Border IP Investments

Mauro Manca

The author, in this article, considers the effects of the recent ECJ decision in Brisal (Case C-18/15) on the topic of the double deduction of costs in respect of non-resident IP (passive) income.

Laura Pakarinen
Laura Pakarinen

Tax Shelter Regime for Start-Ups: Finally up and Running

Thomas Goemaere and Frank Hoogendijk

This note discusses recent developments regarding the tax shelter for start-ups, which, although enacted more than a year ago, remained dead letter until the recent enactment of the Bill on Various Provisions of 5 October 2016.

European Union

Addressing Hybrid PE Mismatches: The Guidance of the Code of Conduct Group 

Elizabeth Gil García

This note addresses hybrid permanent establishment (PE) mismatches involving third countries. The author examines the McDonald’s case, an example of a hybrid PE scenario, in the context of recent guidance approved by the Code of Conduct Group. 

European Union

Proportional Granting of Personal and Family Allowances Following AG Opinion in X v. Staatssecretaris van Financiën (Case C-283/15)

Hannelore Niesten

The author discusses the case of X v. Staatssecretaris van Financiën (Case C-283/15), in respect of which the Advocate General opined that personal and family allowances should be allowed depending on the proportion of income falling within the taxing jurisdiction of each Member State.


Foreign Corporate Income Tax Credit - A Case of Treaty Override Caused by Domestic Case Law

Katerina Perrou

In this note, the author discusses the implications of Circular 1060/19-3-2015, which is based on case law on the order that certain tax credits should be deducted. The effect of the Circular is that foreign tax credits are not always fully taken into consideration. 


The Newly Implemented Interest Deduction Limitation Rule

Vigdis Sigurvaldadottir

The author, in this note, examines the new interest deduction limitation rule in article 57(b) of the Income Tax Act, comparing it with the recommended best practice approach of the OECD in BEPS Action 4 and commenting on its shortcomings.


New Italian Tax Regime to Attract High Net Worth Individuals

Paolo Arginelli and Francesco Avella

This note discusses the new special tax regime for high net worth individuals, pursuant to which non-resident individuals transferring their tax residence to Italy can opt to pay a lump-sum substitute tax of EUR 100,000 per year, in lieu of ordinary taxation, on all of their non-Italian-sourced income.


Recent Clarification of the Tax Authorities on the Italian CFC Regime

Stefano Morri and Stefano Guarino

In an attempt to align the Italian tax rules with international standards and attract more foreign investment, considerable amendments regarding the Italian CFC rules have been enacted, including new rules for identifying blacklisted countries and computing CFC income. In addition, new procedural rules have been introduced concerning tax assessments. This article focuses on a selection of clarifications provided by the Italian tax authorities in Circular No. 35/E of 4 August 2016.

United Kingdom
Finance Act 2016
Douglas Roxburgh

Following the introduction of the Budget on 16 March 2016, Finance Bill 2015-16 was published on 24 March 2016. Royal Assent as Finance Act 2016 was, however, delayed, following the Brexit vote, until 15 September 2016. This note deals with the provisions in the Act covering tax rates and allowances and those of particular significance for companies and businesses.