Summary: 1. BEPS • Digital economy - Task force - Request for input • BEPS calendar (For more information: www.deloitte.com/ap/dbriefs/bytes) • Global Forum on Transparency and Exchange of Information for Tax Purposes - Yellow cards: Luxembourg, Cyprus, BVI, and Seychelles • Mike Danilack regarding MAP - Competant authorities should increase their MAP resources - India / U.S. discussions • EU actions - Parent / subsidiary directive: hybrid loan arrangements - EU task force on digital economy 2. Cases • Verizon - Bandwidth and telecom services provided by non-resident telecom company - Retrospective amendments to Indian domestic law definition of "royalties": equipment and process - Madras High Court: such retrospective amendments also apply for the purposes of the definition of "royalties" under the India / Singapore treaty - Many commentators have criticized the decision • Intrasoft - Licence of computer software, with no right to copy - Retrospective amendments to Indian domestic law definition of "royalties": software - Delhi High Court: such retrospective amendments do not apply for the purposes of the definition of "royalties" under the India / U.S. treaty + Instead, OECD Commentary applied • Vodafone - TP dispute regarding assertion that Vodafone India issued new shares to 100% Mauritius parent at an undervalue - Bombay High Court sent the matter to the Dispute Resolution Panel - For information: K.R. Sekar (Bangalore): krsekar@deloitte.com 3. Treaties • China / France: new treaty and protocol signed • Singapore / Guernsey treated: entered into force 4. China • Bulletin 66 - Scope of VAT exemption for "asset reorganizations" • Bulletin 91 - Capital gains deferral for companies in the China (Shanghai) Pilot Free Trade Zone • For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoye@deloitte.com.cn 5. In brief • Japan - Decision to repeal special reconstruction surtax - For information: Jun Takahara (Tokyo): jun.takahara@tohmatsu.co.jp Mark Brandon (Tokyo): mark.brandon@tohmatsu.co.jp • New Zealand - Omnibus Bill released (changes include thin cap and "black hole" expenditure) - For information: Teresa Farac (Auckland): tfarac@deloitte.co.nz
