Summary: 1. Myanmar − 2% advance income tax on imports and exports of goods − Creditable against income tax liability − Exemptions include • Construction materials and raw materials imported, during initial construction period, by an Myanmar Investment Commission (MIC) permit-holder • Temporary imports and imports intended for duty drawback For information: - Aye Cho (Singapore / Myanmar) aycho@deloitte.com 2. Cases − India: Bhoruka Engineering • Karnataka High Court • India’s judicial anti-avoidance doctrine • Avoidance of capital gains tax on sale of land, by selling shares in land-rich company • As the transaction was not a “colorable or artificial device”, form was respected • Thus, taxpayer wins For information: - K.R. Sekar (Bangalore) krsekar@deloitte.com − Korea: Dividend case • Supreme Court of Korea • Correct rate of dividend withholding tax under Korea / Japan treaty • Interposed Labuan company ignored • Does the Japanese company “own at least 25% of the voting shares” in the Korean company? • Supreme Court: Yes For information: - Gyung Ho Kim (Seoul) gykim@deloitte.com 3. G8 Summit − Endorsed BEPS initiative − Called on OECD to develop template for country-by-country tax reporting by multinational corporations − G8 supports OECD’s report (“A step change in tax transparency”) on bilateral automatic information exchange − Asks OECD to assist developing countries to find comparables for Transfer Pricing purposes 4. In brief − Indonesia: Transfer Pricing regulation issued − China: Value added tax (VAT) announcement issued − Australia: needs to replace “LIBOR cap” in tax legislation − Japan: ratification of protocol to Japan / U.S. treaty − India’s aspiration: best tax regime in the world
