Summary: 1. BEPS • OECD webcast - Update on the 6 actions which will be finalized by September 2014 - Little new information - However, no reference to this week's newspaper story that task force has decided that specific rules for "pure play digital companies" will not work - Interesting Q&A session - To obtain a copy of the recorded webcast, www.deloitte.com/ap/dbriefs/bytes • Submission on PE avoidance schemes - Only one submission made - To obtain a copy of the submission, click here • Canada: OTIP - Canadian tax authorities launch Offshore Tax Informant Program (OTIP) - Under OTIP, Canadian tax authorities will pay rewards to informants who provide information on international tax non-compliance, both tax evasion and offshore tax avoidance 2. Cases • India: Uttam Galva Steel - Mumbai Income Tax Appellate Tribunal - Offshore procurement company - Tribunal: TP position must be determined on aggregate basis, not by looking at each type of transaction separately - For information: Anis Chakravarty (Mumbai): anchakravarty@deloitte.com • U.S.: Rent-A-Center - U.S. Tax Court - U.S. group sets up captive insurance company in Bermuda - Insurance company provides insurance to its U.S. sister subsidiaries only - Court held that the insurance arrangements were bona fide and should be respected for tax purposes 3. Hong Kong • Tax audits regarding offshore funds - Hong Kong tax authorities have commenced a tax audit initiative in regard to offshore fund structures • Company law change: amalgamations - Hong Kong company law will be changed, effective 3 March 2014, to permit the amalgamation of Hong Kong incorporated companies within a group, without the need for court approval • For information: Anthony Lau (Hong Kong): antlau@deloitte.com.hk 4. Australia • Australian tax authorities consider proposal to outsource parts of tax audits to external auditors, which would generally be the Big 4 accounting firms • For information: David Watkins (Sydney): dwatkins@deloitte.com.au 5. China • SAT reports single largest transfer pricing adjustment in regard to cross-border service charges: taxes and interest of US$132 million • Two "bad facts": (a) switch of allocation methodology, (b) Chinese companies had no legal, or economic, rights to IP which results from recharged R&D • For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoye@deloitte.com.cn 6. In brief • UN: invitation for submissions regarding UN TP Manual • India / Albania treaty entered into force • Japan: still focused on tax rates
