Summary: 1. Base Erosion and Profit Shifting (BEPS) – 12 February: OECD released BEPS report – Follows significant public criticism of multinationals’ tax practices – Interesting things in the report: • OECD wants to be in the driving seat • OECD wants broad global collaboration (both OECD members and non-members) • Hints of revolutionary thinking – Focus areas: the same 6 “pressure areas” identified in OECD’s 2012 BEPS briefing paper – OECD’s “initial comprehensive action plan” to be completed by June 2013: (i) Identify actions (ii) Set implementation deadlines (iii) Identify resources needed and implementation methodology – June 2013 action plan could be a very significant document – No “naming and shaming” (yet) 2. Australia – Mineral Resources Rent Tax (MRRT): where’s the revenue? – Bill introduced into Parliament: GAAR and TP – Managed Investment Trust (MIT) withholding tax regime: foreign pension funds 3. Cases – India: Qualcomm • U.S. company received royalties from manufacturers (outside India) which sold goods to Indian customers • No deemed Indian source 4. Singapore – “Rights-based approach” to taxation of outbound software payments – Broadly consistent with OECD Commentary on Art.12 5. China – VAT pilot program 6. India – Vodafone: transfer pricing adjustment in regard to issue of new shares! – Similar to Shell
