Summary: 1. BEPS • OECD issues discussion draft on Action 1 (digital economy) • No specific proposals • First key point: BEPS planning, in the digital economy, will be significantly impacted by all the other Actions in the BEPS Project • Second key point: but that will not be sufficient – something more fundamental would need to be done • Potential options for "fundamental change" - Article 5(4): trim or delete - "Significant digital presence" / "fully dematerialized digital activity" (FU-DDA) - "Virtual PE" - Withholding tax on digital transactions - VAT: exemptions on imports of low valued goods, and inbound B2C transactions • To obtain a copy of the discussion draft, visit www.deloitte.com/ap/dbriefs/bepscentral 2. Australia • Carbon tax and mining tax • Protective legislation regarding abandoned measures • ISAPS: 86 multinationals • Debt vs. equity paper • David Bradbury • For information: David Watkins (Sydney): dwatkins@deloitte.com.au 3. India • Bharti Airtel case: TP legislation does not apply to corporate guarantee without a fee • APAs: first batch • Nokia: US$394 million tax assessment for State VAT • For information: K.R. Sekar (Bangalore): krsekar@deloitte.com 4. Philippines • CS Garment case • Taxpayer takes advantage of amnesty program in regard to tax assessment under litigation • For information: Fredieric Landicho (Manila): flandicho@deloitte.com 5. In brief • Treaty developments: China / Ecuador enters into force, and Hong Kong / U.S. sign tax information exchange agreement • New Zealand: Interpretation Statement on tax residency - For information: Teresa Farac (Auckland): tfarac@deloitte.co.nz
