Summary: 1. BEPS • Country-by-country reporting - No interest, royalties, and service fees - No entity-by-entity reporting – instead, country reporting - Flexibility regarding sources of financial data • TP master file: flexibility regarding group-wide basis vs. by business line • IMF request: include indirect transfers in BEPS Project • Discussion draft on Action 1 (digital economy) - “Wait and see” approach in regard to section VII options 2. Cases • Huawei (India) - Sale of equipment with embedded software: “royalty”? - PE under India / China treaty: another Rolls Royce / Convergys case? • Bamford (India) - Secondment of employees: “furnishing of services” PE under India / UK treaty? - Individuals held to be employees of UK company (“legal form” approach) - But does the UK company “furnish services”? • RCF (Australia) and Antwerp Diamond Bank (India) 3. India • DTC - Indirect share transfers: (i) “substantially” = 20%; (ii) de minimis exception - CFC rules - GAAR rules • APAs: 5 down, 391 to go 4. In brief • China / Germany treaty - Dividends: 5% / 10% - Interest: 10% / 0% (sale of equipment on credit) / no limit (profit-participating debt) - Royalties: 10% / 6% (equipment rentals) • Australia: tax amnesty • Malaysia: GST bill • Singapore: GST guidance regarding fund management services • Greece: non-cooperative jurisdictions • Japan: not joking
