Summary: 1. India: GAAR – Deferred for 2 years 2. Treaties – Singapore / Vietnam • Protocol: sale of shares in “land-rich” companies – Hong Kong / Italy • Hong Kong now has 27 treaties – Germany / Mauritius • Note the provisions to protect against treaty shopping – Thailand / Taiwan • Treaty signed in 1999, finally effective • 5% dividend rate (a first for Thailand) • Impact on Thailand / Mauritius treaty (MFN provision) 3. Cases – Singapore: AQQ case • First case on GAAR (section 33) • Section 33 applies, but tax authorities make wrong adjustment! – India: Booz Allen case • When does liability arise for withholding tax on fees for technical services? • Payment required Reserve Bank approval: unless and until approval given, no withholding tax liability 4. Korea: Pension Fund investors in Korea Private Equity Funds – Effective 1 January 2013: “look through” to the underlying income, then apply relevant treaty to the underlying income – In many cases, this change should lead to nil Korean tax 5. China: Qualified Foreign Institutional Investors (QFIIs) – 10% tax on capital gains expected to be confirmed – Exemption under a relevant treaty? 6. Westminster Grill – Big 4 firms invited to a discussion with UK Parliamentary Committee on “tax avoidance”
