Dbriefs Bytes

1. BEPS Actions 8-10: chapter I of the Transfer Pricing Guidelines Discussion draft (DD) issued on 19 December 2014 1.1 Identification of the actual transaction: the "commercial or financial relations" • The "supremacy of conduct" 1.2 Allocation of risk between the parties 1.3 Recharacterization or non-recognition of the actual transaction 1.4 Possible "special measures" To obtain a copy of the DD, visit www.deloitte.com/bepscentral 2. Other BEPS stories 2.1 South African report on BEPS • For information: Louise Vosloo (Johannesburg): lvosloo@deloitte.co.za • To obtain a copy of the report, visit www.deloitte.com/bepscentral 2.2 Luxembourg's ruling procedures • For information: Yves Knel (Luxembourg): yknel@deloitte.lu • To obtain a copy of our Tax Alert, visit www.deloitte.com/bepscentral 2.3 VAT on inbound digital supplies 3. India 3.1 GST • To obtain a copy of the Finance Minister's press release, visit www.deloitte.com/ap/dbriefs/bytes 3.2 APAs 3.3 Dispute Resolution Panels For information: N.C. Hegde (Mumbai): nhegde@DELOITTE.com 4. Japan: proposals for 2015 Tax Reform • For information: Jun Takahara (Tokyo): jun.takahara@tohmatsu.co.jp • To obtain a copy of our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes 5. Cases • India: Morgan Stanley • India: Mediterranean Shipping Company • India: Sandvik • Australia: Hua Wang Bank Berhad • China: indirect share transfer case 6. In brief 6.1 Singapore: transfer pricing guidelines • For information: See Jee Chang (Singapore): jcsee@deloitte.com • To obtain a copy of the updated guidelines, visit www.deloitte.com/ap/dbriefs/bytes 6.2 Australia: public ruling on transfer pricing documentation • For information: Cam Smith (Melbourne): camsmith@deloitte.com.au • To obtain a copy of the public ruling, visit www.deloitte.com/ap/dbriefs/bytes 6.3 New Zealand: consultation on deductibility of guarantee payments • For information: Teresa Farac (Auckland): tfarac@deloitte.co.nz • To obtain a copy of the consultation document, visit www.deloitte.com/ap/dbriefs/bytes 6.4 Treaties • China / France treaty enters into force

1. BEPS: discussion drafts (DDs) 1.1 Action 10: transfer pricing: commodity transactions • DD issued on 16 December 2014 (7 pages) 1.2 Action 10: transfer pricing: profit splits • DD issued on 16 December 2014 (32 pages) 1.3 Action 14: dispute resolution • DD issued on 18 December 2014 (27 pages) 1.4 Action 4: interest deductions • DD issued on 18 December 2014 (93 pages) 1.5 VAT / GST • Two DDs issued on 18 December 2014 (22 pages) To obtain a copy of all of the 6 DDs, visit www.deloitte.com/bepscentral 2. BEPS: other stories 2.1 EU: tax rulings • To obtain a copy of the European Commission's press release, visit www.deloitte.com/bepscentral 2.2 CbC reporting • Minimum threshold 2.3 OECD webcast • To watch a recording of the webcast and to obtain a copy of the slides, visit www.deloitte.com/bepscentral 3. Cases 3.1 India: Vodafone • Transfer pricing rules apply to a transaction between two resident companies • For information: N.C. Hegde (Mumbai): nhegde@deloitte.com 3.2 Netherlands: 3 "fiscal unity" cases • To obtain a copy of our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes • For information: Peter Kavelaars (Rotterdam): pkavelaars@deloitte.nl 4. China 4.1 GAAR • To obtain a copy of the administrative guidance (in original Chinese and in our unofficial English translation), visit www.deloitte.com/ap/dbriefs/bytes 4.2 Three more free trade zones • To obtain a copy of our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes 4.3 Reform of local and regional incentives • To obtain a copy of the State Council's notice (in Chinese), visit www.deloitte.com/ap/dbriefs/bytes For information on all of the Chinese stories: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoyeqinli@qinlilawfirm.com 5. In brief 5.1 Treaties • HK / UAE treaty signed 5.2 Japan: corporate income tax rate cut • For information: Jun Takahara (Tokyo): jun.takahara@tohmatsu.co.jp

1. BEPS: UK's diverted profits tax • Avoid PE status • Base erosion by using transactions which lack economic substance • To obtain a copy of the UK government's documents, and our Tax Alert on this topic: visit www.deloitte.com/bepscentral • For information: Bill Dodwell (London): bdodwell@deloitte.co.uk • If you are interested in finding out more about the UK’s diverted profits tax, we will be holding a Dbriefs EMEA webcast on 18 December. To register: visit www.deloitte.com/bepscentral 2. BEPS: other stories 2.1 UK PAC hearing • To obtain a copy of the transcript: visit www.deloitte.com/bepscentral 2.2 Lux leaks • To obtain a copy of the Luxembourg government's position paper: visit www.deloitte.com/bepscentral 2.3 EU developments • Anti-abuse clause for parent / subsidiary directive • Automatic exchange of tax rulings • For information: John Henshall (London): jhenshall@deloitte.co.uk 2.4 OECD • BEPS webcast: 15 December, 3pm (Paris time) • To register: visit www.deloitte.com/bepscentral 3. Cases • Korean Supreme Court case • Korea / U.S. treaty: "source" of royalties • U.S. patent, not Korean patent • For information: Gyung Ho Kim (Seoul): gykim@deloitte.com 4. China • SAT's 2013 APA statistics report • To obtain a copy of the report: visit www.deloitte.com/ap/dbriefs/bytes • For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoyeqinli@qinlilawfirm.com 5. In brief 5.1 India • New trade and industry tax committee • For information: N.C. Hegde (Mumbai): nhegde@deloitte.com 5.2 Indonesia • Foreign investors to acquire a minimum of two banks • For information: Nazly Siregar (Jakarta): nsiregar@deloitte.com 5.3 Treaties • Korea / Brunei treaty signed 5.4 Japan • Election on 14 December

1. BEPS 1.1 UK Autumn Statement: Diverted Profits Tax • 25% rate • Details: 10 December 2014 • Australia? • For information: Bill Dodwell (London): bdodwell@deloitte.co.uk 1.2 UK Autumn Statement: Hybrid Mismatch Arrangements and Country-by-Country Reporting (CbCR) • For a copy of the consultation paper on hybrid mismatch arrangements and a copy of our Tax Alert on all BEPS measures in the Autumn Statement, visit www.deloitte.com/bepscentral • For information: Bill Dodwell (London): bdodwell@deloitte.co.uk 1.3 Actions 8-10 • Mayra Lucas: briefing on what to expect in the three transfer pricing discussion drafts in December 1.4 Action 13 • Mayra Lucas: briefing on the implementation issues with CbCR 1.5 Other BEPS stories 2. Taiwan • Local government election: President’s party well beaten • Impact on China / Taiwan double tax arrangement? • For information: Cheli Liaw (Taipei): cheliliaw@deloitte.com.tw 3. Vietnam • Cap on deduction of advertising and promotion expenses: removed • Tax incentives • For a copy of our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes • For information: Tuan Bui (Hanoi): tbui@deloitte.com Tom McClelland (Ho Chi Minh): tmcclelland@deloitte.com 4. In brief 4.1 Korea: tax reform legislation passed • For information: Gyung Ho Kim (Seoul): gykim@DELOITTE.com 4.2 Spain: tax reform legislation passed • For a copy of our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes • For information: Brian Leonard (Madrid): bleonard@deloitte.es 4.3 Norway: tax reform proposals • For a copy of our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes • For information: Petter Gruner (Oslo): pgruner@deloitte.no Rolf Saastad (Oslo): rsaastad@DELOITTE.no

1. BEPS • Action 6 discussion draft - List of 20 issues - LOB provision, PPT rule, other issues - To obtain a copy of the discussion draft and our Tax Alert, visit www.deloitte.com/bepscentral • December discussion drafts - To obtain a copy of the latest version of the BEPS calendar, visit www.deloitte.com/bepscentral • New Zealand reports - To obtain a copy of the two reports, visit www.deloitte.com/bepscentral - For information: Teresa Farac (Auckland): tfarac@deloitte.co.nz • Netherlands and Starbucks - To obtain a copy of the European Commission's preliminary opinion and the response of the Netherlands government, visit www.deloitte.com/bepscentral 2. APAs and MAP • Luxembourg and Netherlands APA programs - To obtain a copy of the report, www.deloitte.com/ap/dbriefs/bytes • OECD 2013 MAP statistics - To obtain a copy of the report, www.deloitte.com/ap/dbriefs/bytes 3. UN • Michael Lennard: summary of recent meeting of UN committee of tax experts 4. Cases • P&O Nedlloyd: partnership • Brown and Sharpe: liaison office • Centrica: secondment (deputation) • Vodafone: subscription for shares at undervalue 5. In brief • Japan / UAE treaty • China: M Corporation - For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoyeqinli@qinlilawfirm.com • Indonesia: treaty review? - For information: Nazly Siregar (Jakarta): nsiregar@deloitte.com • Malaysia: fuel subsidies • Russia: new "offshore" rules - For information: Elena Solovyova (Moscow): esolovyova@deloitte.ru • Boris Johnson

1. Shell case • Transfer pricing adjustments in regard to the subscription for shares at an undervalue: assertions of taxable income resulting from such adjustments • Bombay High Court decided in favor of taxpayer, in line with October’s decision in Vodafone case • For information: N.C. Hegde (Mumbai): nhegde@deloitte.com Anis Chakravarty (Mumbai): anchakravarty@deloitte.com 2. Japan • Next increase in consumption tax rate (from 8% to 10%) deferred to 1 April 2017 • Snap election on 14 December 2014 • For information: Jun Takahara (Tokyo): jun.takahara@tohmatsu.co.jp 3. BEPS • G20 Leaders’ Summit - For a copy of the G20 communiqué and the OECD report to the G20, visit www.deloitte.com/bepscentral • UK report - For a copy of report of Public Accounts Committee on HMRC, visit www.deloitte.com/bepscentral 4. China • China / Taiwan double tax arrangement: negotiations have been completed! • Circular 81: tax issues regarding Shanghai - Hong Kong Stock Connect • Circular 79: capital gains tax exemption for QFIIs and RQFIIs • For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoyeqinli@qinlilawfirm.com 5. In brief • Treaties - China / Switzerland: entry into force • India - GST “in the works” - “Non-adversarial tax regime”: for a copy of the internal guidelines, visit www.deloitte.com/ap/dbriefs/bytes - For information: N.C. Hegde (Mumbai): nhegde@deloitte.com • Australia - For a copy of our Tax Alert on TR 2014/6, visit www.deloitte.com/ap/dbriefs/bytes • Indonesia - Bold move to reduce government subsidies on fuel • Malaysia - GST registration is required by 31 December 2014 - For information: Tan Eng Yew (Kuala Lumpur): etan@deloitte.com

1. BEPS: Action 10 discussion draft on low value-adding intra-group services • Simplified transfer pricing model, by election • To obtain a copy of the discussion draft and our Tax Alert, visit www.deloitte.com/bepscentral 2. BEPS: Other news 2.1 U.S. views • Actions 4, 5, and 8 2.2 OECD: Strategy for deepening developing country engagement in the BEPS project • To obtain a copy of the strategy document, visit www.deloitte.com/bepscentral 2.3 UK / Germany agreement • Preferential IP regimes • To obtain a copy of the joint statement, visit www.deloitte.com/bepscentral 2.4 Germany's anti-hybrid legislation • To obtain a copy of our Tax Alert, visit www.deloitte.com/bepscentral 2.5 Netherlands report on tax rules • To obtain a copy of the report, visit www.deloitte.com/bepscentral 3. China 3.1 Shanghai – Hong Kong Stock Connect • For information: Davy Yun (Hong Kong): dyun@deloitte.com.hk Kevin Zhu (Shanghai): kzhu@deloitte.com.cn 3.2 Indirect share transfer case, involving U.S. companies • For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoyeqinli@qinlilawfirm.com 4. In brief 4.1 Treaties • Singapore / UAE: protocol signed • Mauritius / Congo: treaty in force • Japan / UK: protocol will enter into force on 12 December 2014 4.2 Japan • Speculation concerning election 4.3 Australia • TR 2014 / 6 • To obtain a copy of the ruling, www.deloitte.com/ap/dbriefs/bytes • For information: Cam Smith (Melbourne): camsmith@deloitte.com.au 4.4 Old curiousity shop • East Timor expels foreign judges who decided against government • Skandia case: lost in translation

1. BEPS Action 7 (PE status) • Discussion draft 2. BEPS Action 7 – first topic: “artificial avoidance of PE status through commissionaire arrangements and similar strategies” • Paragraphs 5 and 6 of Article 5 • Options A - D 3. BEPS Action 7 – second topic: “artificial avoidance of PE status through the specific activity exemptions” • Paragraph 4 of Article 5 • Options E – J 4. BEPS Action 7 – third topic: “splitting-up of contracts” • Paragraph 3 of Article 5 • Options K and L 5. BEPS Action 7 – fourth topic: “insurance” • Options M and N 6. BEPS Action 7 – other issues • Paragraph 1 of Article 5 • Attribution of profits • For a copy of the Action 7 discussion draft and our Tax Alert, visit www.deloitte.com/bepscentral 7. BEPS: other news • Discussion draft on Action 10: low value-adding services - For a copy of the discussion draft, visit www.deloitte.com/bepscentral • Germany: anti-hybrid mismatch rules - For information: Ralf Ellsel (Berlin): rellsel@deloitte.de • Ireland: “double Irish structure” - For a copy of the Finance Bill, visit www.deloitte.com/bepscentral - For information: Joan O'Connor (Dublin): joconnor@deloitte.ie • Luxembourg: leaking of confidential documents 8. In brief • Hong Kong: dialogue session with tax authorities - For a copy of the minutes, www.deloitte.com/ap/dbriefs/bytes - For information: Davy Yun (Hong Kong): dyun@deloitte.com.hk - Australia / Switzerland in force • Australia: non-final withholding tax on certain disposals of taxable Australian property by non-residents - For a copy of the discussion paper, www.deloitte.com/ap/dbriefs/bytes - For information: David Watkins (Sydney): dwatkins@deloitte.com.au

1. IFA Congress: Seminar G • Location savings and other local market features • Allocation of location rent within a multinational group • OECD approach vs. India / China approach • For information: Anis Chakravarty (Mumbai): anchakravarty@deloitte.com Eunice Kuo (Shanghai): eunicekuo@deloitte.com.cn 2. UN Committee of Tax Experts • Payments for services - Payments for technical services: visit www.deloitte.com/ap/dbriefs/bytes - Payments for cyber-based services: visit www.deloitte.com/ap/dbriefs/bytes • Amended Commentary on "furnishing of services" PE: visit www.deloitte.com/ap/dbriefs/bytes • Status of OECD TP Guidelines: visit www.deloitte.com/ap/dbriefs/bytes • Article 13(4): land-rich companies: visit www.deloitte.com/ap/dbriefs/bytes • Extractive industries - Report: visit www.deloitte.com/ap/dbriefs/bytes - Attachment A (overview): visit www.deloitte.com/ap/dbriefs/bytes - Attachment B (capital gains taxation and indirect sales): visit www.deloitte.com/ap/dbriefs/bytes - Attachment C (VAT): visit www.deloitte.com/ap/dbriefs/bytes - Attachment D (worldwide decommissioning): visit www.deloitte.com/ap/dbriefs/bytes - Attachment E: (selected treaty issues): visit www.deloitte.com/ap/dbriefs/bytes 3. BEPS • Ireland: BEPS report - To obtain a copy of the report, visit www.deloitte.com/bepscentral - For information: Joan O'Connor (Dublin): joconnor@deloitte.ie Lorraine Griffin (Dublin): lorgriffin@DELOITTE.IE • Hungary: internet tax - For information: Attila Kovesdy (Budapest): akovesdy@deloitteCE.com 4. In brief • Treaties - Vietnam / Macedonia signed - Hong Kong / South Africa signed - Australia / Switzerland in force • Australia - Interpretative Decision on Article 5(3) of Australia / Japan treaty - To obtain a copy, visit www.deloitte.com/ap/dbriefs/bytes - For information: David Watkins (Sydney): dwatkins@deloitte.com.au • India - Cyprus and Switzerland - For information: N.C. Hegde (Mumbai): nhegde@deloitte.com • New Zealand: guidance on GAAR - To obtain a copy, visit www.deloitte.com/ap/dbriefs/bytes - For information: Teresa Farac (Auckland): tfarac@deloitte.co.nz • Malaysia: GST - List of zero-rated and tax-exempt supplies + GST (Exempt Supply) order 2014: visit www.deloitte.com/ap/dbriefs/bytes + GST (Zero-Rated Supply) order 2014: visit www.deloitte.com/ap/dbriefs/bytes + GST (Relief) order 2014: visit www.deloitte.com/ap/dbriefs/bytes - To obtain a copy of the list and our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes - For information: Tan Hooi Beng (Kuala Lumpur): hooitan@deloitte.com

1. BEPS • Ireland: Budget changes - “Double Irish structures” - Knowledge development box - For a copy of our Tax Alert and the government’s Budget statement, visit http://www.deloitte.com/bepscentral - For information: Joan O'Connor (Dublin): joconnor@deloitte.ie Lorraine Griffin (Dublin): lorgriffin@DELOITTE.IE • China: People's Daily attack on MNCs - For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoyeqinli@qinlilawfirm.com • Netherlands / Ethiopia protocol: LOB article - For information: Aart Nolten (Amsterdam): ANolten@deloitte.nl 2. Cases: Vodafone (India) • Subscription for shares at an undervalue • Two transfer pricing adjustments • Taxpayer wins • For information: N.C. Hegde (Mumbai): nhegde@DELOITTE.com Rakesh Alshi (Mumbai): ralshi@DELOITTE.com 3. Malaysia Budget • GST • Tax rates • “Principal hub” tax incentive • For a copy of our Tax Alert, www.deloitte.com/ap/dbriefs/bytes • For information: Tan Hooi Beng (Kuala Lumpur): hooitan@deloitte.com 4. In brief • Vietnam: advertising and marketing expenses cap - For information: Tom McClelland (Ho Chi Minh): tmcclelland@deloitte.com Tuan Bui (Hanoi): tbui@deloitte.com • Australia: consultation on draft minerals exploration legislation - For a copy of the draft legislation, www.deloitte.com/ap/dbriefs/bytes - For a copy of the related documents, www.deloitte.com/ap/dbriefs/bytes - For information: David Watkins (Sydney): dwatkins@deloitte.com.au • India: Nokia suspends plant operations • Treaties - China / Russia treaty signed - Vietnam / Iran treaty signed

1. BEPS: CFC rules, special measures, and Action 11 • How to deal with the residual returns of Bermudan cash box: CFC rules vs. transfer pricing special measures • Action 11: to obtain a copy of all the public comments, visit www.deloitte.com/ap/dbriefs/bepscentral • Australian Senate review of "tax avoidance and multinational corporations operating in Australia" - For information: David Watkins (Sydney): dwatkins@deloitte.com.au 2. BEPS: Action 5 • UK patent box: for a copy of David Gauke's speech, visit www.deloitte.com/ap/dbriefs/bepscentral • EU investigations of Amazon (Luxembourg) and 165 rulings issued by Gibraltar • Compulsory, spontaneous exchange of rulings 3. BEPS: unilateral actions • UK: "hybrid mismatch arrangements" - For a copy of the government's announcement, visit www.deloitte.com/ap/dbriefs/bepscentral - For information: Bill Dodwell (London): bdodwell@deloitte.co.uk • Poland: tightens thin cap rules - For information: Ewa Grzejszczyk (Warsaw): egrzejszczyk@deloitteCE.com • Kenya: Finance Act 2014 introduces domestic law LOB rule and taxation of indirect share transfers - For a copy of Finance Act 2014, visit www.deloitte.com/ap/dbriefs/bytes - For information: Fredrick Omondi (Nairobi): fomondi@deloitte.co.ke 4. Cases • India: Panalfa - Commission paid to agent: "fees for technical services"? - For information: N.C. Hegde (Mumbai): nhegde@DELOITTE.com K.R. Sekar (Bangalore): krsekar@DELOITTE.com • Philippines: Egis Projects - Application for withholding tax treaty limitation filed "too late" - For information: Fredieric Landicho (Manila): flandicho@deloitte.com • European Court of Justice: Skandia - Notional transaction between head office and branch: recognised for VAT purposes? - Major potential impact on financial services industry - For information: Gary Campbell (London): gdcampbell@deloitte.co.uk Richard Mackender (Singapore): rimackender@deloitte.com 5. In brief • India - Definition of "wholesale trading", for the purposes of transfer pricing tolerance band - For a copy of our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes - For information: Anis Chakravarty (Mumbai): anchakravarty@deloitte.com Rajesh Gandhi (Mumbai): rajegandhi@deloitte.com • Malaysia - Budget will be presented today - For information: Tan Hooi Beng (Kuala Lumpur): hooitan@deloitte.com

1. BEPS: New timetable • To obtain a copy of the timetable, visit www.deloitte.com/bepscentral 2. BEPS: UN questionnaire • Notably: responses from China and India • To obtain a copy of all responses, visit www.deloitte.com/bepscentral 3. BEPS: Special measures and country-by-country reporting • Comments by Bob Stack (U.S. Treasury) 4. BEPS: Other developments • Australian report - To obtain a copy of the report, visit www.deloitte.com/ap/dbriefs/bytes • Apple (Ireland) and Fiat (Luxembourg) - To obtain a copy of the EU documents, visit www.deloitte.com/bepscentral 5. Cases • AFP case (India) - Provision of news material: use of copyright? • Antrax case (India) - Sale of instruction manual: use of copyright? • For information: N.C. Hegde (Mumbai): nhegde@DELOITTE.com K.R. Sekar (Bangalore): krsekar@DELOITTE.com 6. In brief • Japan: tax incentives - To obtain a copy of our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes - For information: Jun Takahara (Tokyo): jun.takahara@tohmatsu.co.jp • Review of economies in Cambodia, China, Japan, and Taiwan - To obtain a copy of our Asia Pacific Economic Outlook report, visit www.deloitte.com/ap/dbriefs/bytes

1. OECD / G20: BEPS and other tax projects • G20 Finance Ministers meeting - "Welcome the significant progress" - To access all of the tax documents from the G20 meeting: visit www.deloitte.com/ap/dbriefs/bytes • Tension points • Secondary BEPS agenda • Next steps 2. UN • Conference: "Tax Base Protection for Developing Countries" - To obtain copies of the conference papers: visit www.deloitte.com/ap/dbriefs/bytes • Tax Experts Committee meeting - To obtain a copy of the draft agenda: visit www.deloitte.com/ap/dbriefs/bytes 3. Cases • India: CGI - Karnataka High Court - "Royalty" definition - "Cost sharing agreement" in regard to intranet portal • India: Kothari Food and Fragrances - Lucknow Income Tax Appellate Tribunal - Exporter gives discounts for advance and early payments - Subject to interest withholding tax? • For information: N.C. Hegde (Mumbai): nhegde@deloitte.com K.R. Sekar (Bangalore): krsekar@deloitte.com 4. China's views on BEPS • SAT conference on 24 September 2014 • For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoyeqinli@qinlilawfirm.com Julie Zhang (Beijing): juliezhang@deloitte.com.cn 5. In brief • Treaties - Japan / Sweden protocol: entry into force - Singapore / Czech Republic protocol: entry into force - India / Bhutan treaty: entry into force - New Zealand / Canada: protocol signed • Philippines: bill for corporate tax rate changes • Thailand: corporate tax rate • New Zealand: election promise • Inversions - To obtain a copy of Notice 2014-52: visit www.deloitte.com/ap/dbriefs/bytes - To obtain a copy of our Tax Alert: visit www.deloitte.com/ap/dbriefs/bytes • Switzerland: tax reform - To obtain a copy of our Tax Alert: visit www.deloitte.com/ap/dbriefs/bytes

1. OECD / G20: BEPS and other tax projects • G20 Finance Ministers meeting - "Welcome the significant progress" - To access all of the tax documents from the G20 meeting: visit www.deloitte.com/ap/dbriefs/bytes • Tension points • Secondary BEPS agenda • Next steps 2. UN • Conference: "Tax Base Protection for Developing Countries" - To obtain copies of the conference papers: visit www.deloitte.com/ap/dbriefs/bytes • Tax Experts Committee meeting - To obtain a copy of the draft agenda: visit www.deloitte.com/ap/dbriefs/bytes 3. Cases • India: CGI - Karnataka High Court - "Royalty" definition - "Cost sharing agreement" in regard to intranet portal • India: Kothari Food and Fragrances - Lucknow Income Tax Appellate Tribunal - Exporter gives discounts for advance and early payments - Subject to interest withholding tax? • For information: N.C. Hegde (Mumbai): nhegde@deloitte.com K.R. Sekar (Bangalore): krsekar@deloitte.com 4. China's views on BEPS • SAT conference on 24 September 2014 • For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoyeqinli@qinlilawfirm.com Julie Zhang (Beijing): juliezhang@deloitte.com.cn 5. In brief • Treaties - Japan / Sweden protocol: entry into force - Singapore / Czech Republic protocol: entry into force - India / Bhutan treaty: entry into force - New Zealand / Canada: protocol signed • Philippines: bill for corporate tax rate changes • Thailand: corporate tax rate • New Zealand: election promise • Inversions - To obtain a copy of Notice 2014-52: visit www.deloitte.com/ap/dbriefs/bytes - To obtain a copy of our Tax Alert: visit www.deloitte.com/ap/dbriefs/bytes • Switzerland: tax reform - To obtain a copy of our Tax Alert: visit www.deloitte.com/ap/dbriefs/bytes

1. BEPS 2014 deliverables and related documents • 780 pages issued by OECD on 16 September 2014 • To access all of the documents, visit www.deloiite.com/ap/dbriefs/bepscentral 2. Action 6: Prevent Treaty Abuse • LOB and PPT: three options • Draft Commentary • Further work 3. Action 15: Developing a Multilateral Instrument • Feasible • January 2015: mandate for international conference 4. Action 13: Transfer Pricing Documentation • Three-tier approach • Template for country-by-country reports • Filing process • To access our Global TP Alert, visit www.deloiite.com/ap/dbriefs/bepscentral 5. Action 8: Transfer Pricing Aspects of Intangibles • Large parts are draft text • Examples of "special measures" • To access our Global TP Alert, visit www.deloiite.com/ap/dbriefs/bepscentral 6. Action 2: Hybrid Mismatch Arrangements • 12 recommendations for domestic tax law changes • Further work 7. Action 5: Harmful Tax Practices • Interim report • Substantial activity: "nexus approach"? • Compulsory, spontaneous exchange of information on rulings 8. Action 1: Digital Economy • Source vs. residence country • Plan to evaluate potential tax options