Summary: 1. Cases i. India: Micro Inks • Ahmedabad Income Tax Appellate Tribunal • Zero-interest loan to U.S. subsidiary was held to satisfy the arm's length principle, because - The loan was quasi-equity - There was a significant trading relationship between the Indian parent and the U.S. subsidiary, which needed financial support ii. India: General Motors • Ahmedabad Income Tax Appellate Tribunal • Korean related party can and should be the tested party for Indian transfer pricing purposes iii. India: Maruti Suzuki • Delhi Income Tax Appellate Tribunal • Another "L.G. Electronics" case • Complicated by the aggregate trade mark: "Maruti Suzuki" iv. Australia: Fortescue • High Court of Australia • Court rejected Constitutional challenge to minerals resource rent tax 2. OECD: intangibles • Profit split method will become more important in the future, due to - Situations where related parties perform "more important functions" and must be compensated by the legal owner under the "transactional approach" (OECD discussion draft on intangibles, issued on 30 July 2013) - Country-by-country reporting, as described in Action 13 of the BEPS Action Plan 3. China • Bulletin 41/2013: tax treatment of hybrid (debt-equity) financing investments • Bulletin 43/2013: tax incentives for software companies 4. Vietnam • Decree 83/2013: APAs 5. India • Draft transfer pricing "safe harbor" rules • Circular 7/2013: tax treatment of losses incurred by tax holiday units • New Companies Act • Tax residency certificates: amendment of information
