New OECD Guidance on Financial Transactions

On 11 February 2020, the OECD published the “Transfer Pricing Guidance on Financial Transactions” document (hereinafter “Report”). 
The Report, which will constitute the new chapter 10 of the OECD Transfer Pricing Guidelines, provides specific guidelines on how to apply the arm’s length principle for financial transactions. 
The publication of the Report is of greater relevance in view of the period of crisis triggered by Covid-19. 
As such, one of the main impacts for multinational groups concerns liquidity management. 
In order to ensure full operability, companies need to manage their financial resources in the best possible way. This is performed by: 

• taking actions by increasing the management efficiency of the receivable and payable accounts

• the utilisation of public support such as:

  • tax measures (i.e. suspension of tax obligations, suspension of the terms of the activities of collection offices, tax credit) 

  • financial support measures (i.e. wage compensation funds, access to public sector subsidies to businesses)

• taking actions aimed at finding additional resources of private financing.

Published in: Crowe TP Wednesday - 03 June 2020

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Mobility Monday’s - Transfer Pricing, How Costs of Employees is Born and Cross Charged

Tax issues and global mobility go hand in hand. There can be tax matters for the employee and for the employer. The corporate tax implications (tax matters that relate to the employer entities) are generally less well understood in the world of Mobility/HR, than the payroll and employee and employer issues.

Within the corporate tax area is transfer pricing. In the context of employee mobility, this is an area that concerns itself with how the cost of employees is borne and cross charged within a group. Mobility often has to work in partnership with finance and tax departments around this issue.

Published on: Mobility Mondays - Crowe UK

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International Tax Dispute Resolution: New EU Rules

lnternational tax disputes arise, in principle, where

1. there is a bilateral or multilateral treaty for the avoidance of double taxation (hereinafter "Double Tax Convention" or "DTC") or an equivalent instrument and

2. the contracting jurisdictions exercise their taxing power in a manner resulting in violation of its provisions.

In addition, such disputes can also arise without violation of the DTC (including equivalent instruments), if there  is disagreement or uncertainty in relation to the correct application of its provisions. In a nutshell, international tax disputes can arise, if there is a framework agreed between two or more jurisdictions regarding the exercise of their taxing power in cases involving both of them (in principle in a DTC).

In their vast majority, existing DTCs previde for the resolution of the above disputes through the so-called mutuai agreement procedure or MAP, following the respective provisions of the OECD Model Tax Convention (hereinafter the "OECD Model"). MAP aims at dispute resolution through agreement between  the national tax authorities involved, on the basis of dialogue and cooperation, following request by the taxpayer affected.

Published in: IAFEI Quarterly (43rd Issue) - 11 April 2019

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Mandatory Electronic Invoicing: Are You Ready?

The Italian Revenue Agency has provided clarifications and practical guidance on the issuance, receipt and preservation of electronic invoices through various rulings.

The Italian Budget Law 2018 provided that both companies and individuals liable to VAT must issue and receive electronic invoices when they supply goods or services to Italian tax residents. The obligation enters into force on January 1 2019. However, it already applies to the supply of gas and petrol as motor fuel as of July 1 2018.

Published in: TP Week - 2 August 2018

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Country-by-Country Reporting Finally Arrives in Italy

Published in: TPWeek

In February 2017, the Italian Ministry for Finance issued the long-awaited ministerial decree for the implementation of country-by-country reporting (CbCR) in Italy – Ministerial Decree No. 23 of February 23 2017. Antonella Della Rovere and Filipa Correia of Valente Associati GEB Partners discuss the implications.

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Automatic Information Exchange Comes to Italy

Published in: TP Week

In December 2016, the Italian Council of Ministers presented to Parliament the Draft Legislative Decree for the implementation of Directive 2015/2376/EU.
The decree sets out automatic exchange of information in the field of taxation, in particular with respect to advance cross-border rulings and advance pricing agreements (APAs).

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Italy’s Anti-BEPS Struggles

Published in: TP Week

The OECD-recommended measures to counter tax evasion have been integrated in the language routinely used by tax advisers, businessmen and by other interested parties as well.
Without implementation however, it would be much ado about nothing.

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A Experiência Da Multidisciplinaridade Em Itália

Published in “Advocatus Magazine” (June 2016 Edition)

É portuguesa, nascida e licenciada no Porto, mas é em Itália que a carreira de Filipa Correia na advocacia está a ser construída.
Um mercado muito competitivo, que se diferencia do português desde logo pela existência de multidisciplinaridade. Assim é na Valente Associati GEB Partners, de que é sócia e responsável pela área de prática de Fiscal.

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Transfer Pricing Audits: Approach by Italian Tax Authorities

Within Europe, policies have been developed to enable the free circulation of people, goods and services. Alongside this, steps have been made towards greater interconnection between the tax systems of different countries.

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Competition and Base Erosion and Profit Shifting (BEPS)

Competition is rather harsh and has increased and countries are suffering from a significant decrease in their tax revenues, while experiencing severe competition between developed and developing countries (especially the BRICs).

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BEPS - What Are We Headed For?

With the BEPS (Base Erosion and Profit Shifting) project nearing its completion, it is time for the private sector and Stakeholders in general to get ready for the expected changes, whatever they will be.
We have entered into an era grounded on tax transparency, multilateral cooperation and information exchange.
In this scenario, Multinationals need not only warrant their “global consistency”, but should also understand their business environment, and be aware of any international tax development (at domestic/international level); they should also be able to have a good grasp of global trends (multilateral cooperation), while anticipating and assessing potential risk areas (and such transactions that tax authorities may be targeting), so as to avoid or limit tax audits and tax disputes, especially because tax disputes and tax audits are most likely to increase, after BEPS’ measures implementation.

Published in IAFEI e-Journal August 2015 Transition Issue No. 2

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Change of Climate in Taxation: Are You Prepared for Extended Responsibilities?

Author: Filipa Correia and Rudolf Reibel

Against the background of recent international and EU action against “harmful tax practices”, the 6th Professional Affairs Conference of the CFE (Confédération Fiscale Européenne, the European federation of tax advisers) on 22 November 2013 in Milan...

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56th UIA Congress Dresden - International Negotiation for Lawyers Commission

Author: Filipa Correia

“In Business and in Life, you don’t get What you Deserve, you Only get What you Negotiate”, and the more preparation we take to the table, the better will we “design” the final outcome.

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