July/August 2016  
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International Transfer Pricing Journal
This free e-mail service informs you about the contents of the forthcoming edition of International Transfer Pricing Journal.

Issue No. 4 - 2016 of the International Transfer Pricing Journal is now available online.

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Other publications and courses available on Transfer Pricing:

International Taxation Conference 2016
1-3 December 2016

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[Online course]

NEW! ITA109 Fundamentals of Transfer Pricing
The course provides an overview of transfer pricing, It looks at the legal framework for transfer pricing and the role of tax treaties and introduces the OECD Transfer Pricing Guidelines.

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Number 4 - 2016 contains the following:
BEPS, EU State Aid Investigations and LuxLeaks: And What about Luxembourg?

Jean Schaffner and Sophie Balliet

The authors consider both new and already existing rules and practices in Luxembourg in light of international efforts to combat BEPS, EU state aid investigations and LuxLeaks.

JTPF Discussion Paper on Comparables in the European Union
Roman Dawid

This article considers the Discussion Paper issued by the Joint Transfer Pricing Forum in February 2016 as a reaction to the Actions 8-10 Final Reports under the OECD BEPS Project. In particular, it will look into the application of the OECD risk framework and various practical aspects of comparables search studies.

When Could the Berry Ratio Be Used in Transfer Pricing Analyses?

Ron Dorward

The author considers the Berry ratio in tax literature and jurisprudence, and discusses circumstances in which its application might be appropriate in a transfer pricing context.


New Developments Regarding Transfer Pricing Documentation Requirements

under the 2016 Finance Act
Pierre-Jean Douvier and Juliana Benamran

The authors consider the country-by-country reporting requirement that has been introduced by the French 2016 Finance Act; they also present the draft law that could introduce a public country-by-country reporting requirement in France and the resulting concerns for taxpayers regarding confidentiality.

Courts Hold That Notional Interest Deduction Does Not Require Substance
Frank Mortier

The Courts of Appeal of Antwerp and Liège are of the opinion that interposing a Belgian finance company is, as such, not abnormal even if the company holds one single loan. The receiving and granting of a loan, and the management thereof, is clearly an economic activity, and – given the magnitude of the loan – not of an abnormal nature. The notional interest deduction is not conditional upon a certain level of economic substance.

Reporting Rules on Payments to Tax Havens Deemed Constitutional
Frank Mortier

According to the Belgian Constitutional Court, the failure to report a payment to a person established in a non-cooperative jurisdiction or a tax haven is, in principle, a sufficient reason to deny the deduction of the payment for tax purposes. The reporting obligation imposed upon (non-resident) corporate taxpayers exists irrespective of whether the payment concerns an actual transaction or a sham. No fraudulent intent is required.

Federal Court of Appeal Upholds Lower Court Decision in Marzen: Key Lessons for Canadian Taxpayers
Muris Dujsic, Simon Gurr and Alex Evans

On 29 January 2016, Canada’s Federal Court of Appeal (FCA) released its decision in the Marzen Artistic Aluminum case, which concerned the transfer pricing treatment of marketing fees paid to a taxpayer’s wholly owned foreign subsidiary. The FCA judgment reinforced certain issues decided by the Tax Court of Canada, including the importance of respecting contracts between separate legal entities and not inappropriately amalgamating separate and distinct entities.

BEPS Initiative in Colombia: Transfer Pricing for the Modern World
María Isabel Espinel Coral

In light of the OECD BEPS initiative and the Transfer Pricing Manual published in 2013 by the UN, this article focuses on transfer pricing in Colombia. It describes the general background and what the implementation of the transfer pricing regime so far has meant for Colombia. The current framework and its upgrade after the BEPS initiative and publication of the manual will also be compared.

India at the Forefront in Implementing BEPS-Related Measures: Equalization Levy in Line with Action 1
Mansi Agrawal

The author explains the new amendment to Indian law relating to the equalization levy, which is in line with Action 1 of the BEPS initiative, regarding payments for online advertising by an Indian entity to a non-resident, along with the impact of the amendment on Indian entities.

Yet Another Vodafone India Judgment
Vatika Bhatnagar

Vodafone emerged victorious in its recent challenge before the Bombay High Court of a proposed transfer pricing adjustment. The case concerned the sale of the taxpayer’s call centre business and the proper treatment of an assignment of call options.

New Rules on International Tax Rulings for Enterprises with International Business Operations
Federico Di Cesare

Recently, a number of changes were made to Italian tax law concerning international tax rulings. The new regime formally broadens the scope of the international tax ruling procedure, which – in addition to transfer pricing – may be actually used for different queries of international relevance, including the opportunity to conclude (under certain conditions, also retroactive) agreements on the effective existence in Italy of a permanent establishment of a non-resident entity.

Transfer Pricing Documentation Changes
Marcin Jamroży

As a response to the BEPS Action Plan, new transfer pricing documentation and reporting requirements will be applicable in Poland, generally with effect from 1 January 2017. These changes are expected to bring a significant increase to the compliance burden for multinational businesses.