Summary: 1. Treaties – U.S. / Japan: protocol • Interest: 0% (currently, 10%) • Dividends: Conditions for 0% rate relaxed • Capital gains on sale of shares in land-rich company • Arbitration – Australia: meaning of “employer” in Article 15(2) of Australia’s treaties • Substance approach 2. Cases – India: LG Electronics • Transfer pricing in regard to marketing intangibles • “Excessive” advertising, marketing & promotion expenses versus two comparables • Characterized as a service for Korean parent – thus, deemed reimbursement plus mark-up – India: Sumitomo Mitsui Banking Corporation • Gross-up for foreign withholding tax incurred by Indian PE of Japanese bank • No deduction and no foreign tax credit for foreign withholding tax • Can foreign tax credit be claimed via non-discrimination article in India / Japan treaty? 3. Philippines – Transfer pricing rules 4. Korea: characterization of offshore entities – Corporation vs. Partnership – Effective 1 January 2013 5. Japan: 2013 Tax Reform – Tax benefits for companies operating in Japan – Tax rate increases for individuals 6. Westminster Grill – www.parliamentlive.tv
