Summary: 1. Cases • India: Credit Lyonnais - Calculation of profit attributable to Indian branch (PE) - Indian branch performs credit analysis of prospective borrowers - A core function – not mere “facilitation” - 20% of fees allocated to Indian branch, but no interest - For information: K.R. Sekar (Bangalore): krsekar@deloitte.com • India: A.P. Moller - Danish general partnership (transparent in Denmark, taxable entity in India) - Tribunal applies OECD Commentary to allow treaty claim to be made - Under “arising” definition, fees for technical services (FTS) held to “arise” in Denmark: FTS article thus does not apply - Exemption under business profits article - For information: K.R. Sekar (Bangalore): krsekar@deloitte.com • Hong Kong: Nice Cheer - Accounting treatment: unrealized profit on unsold securities recognized in financial statements - Tax treatment: such unrealized profit not recognized - For information: Anthony Lau (Hong Kong): antlau@deloitte.com.hk 2. Hong Kong • Change in Hong Kong tax authority’s position in regard to issuing tax residency certificates to foreign banks with branches in Hong Kong • Hong Kong tax authority agrees with OECD’s viewpoint on treaty claims by foreign transparent partnerships • For information: Anthony Lau (Hong Kong): antlau@deloitte.com.hk 3. BEPS • OECD’s public consultation on transfer pricing topics - Country-by-country reporting - July white paper on transfer pricing documentation - July revised discussion draft on transfer pricing aspects of intangibles - Other transfer pricing aspects of the BEPS Action Plan • For information: John Henshall (London): jhenshall@deloitte.co.uk 4. In brief • New Zealand - Government announces major tax policy work program for 2014, including several BEPS items - Report on “black-hole R&D expenditure” - For information: Teresa Farac (Auckland): tfarac@deloitte.co.nz • Singapore - Changes to conditions for 10% tax rate for fund managers - For information: Rohit Shah (Singapore): roshah@deloitte.com
