In a recent ruling, the Mumbai Income Tax Appellate Tribunal (ITAT) concluded that the hotel rooms used by Renoir Consulting for its staff in India constituted a permanent establishment (PE), despite the fact management headquarters are based outside of India. The Tribunal’s decision raises questions over the characteristics of a PE and signals the emergence of tighter regulations.
New allegations have emerged from non-government agencies (NGO) such as Tax Justice Network Africa and Christian Aid that mining companies are hiding behind transfer pricing (TP) to dodge taxes in Ghana.
Countries with their own transfer pricing reporting forms, such as Canada and Australia, have a strong case to stick to their own standards rather than adopt the OECD’s universal approach because of their greater relevancy with regards to meeting specific country needs.
The release of draft taxation rulings by the Australian Tax Office (ATO) this month has left many tax professionals fearful of its extensive power and ever growing control over transfer pricing issues.
A number of key changes have been made to the Russian Tax Code, affecting transfer pricing (TP) documentation requirements as of 2014 onwards. While the extension of the scope and application of the legislation is positive, there is still some way to go in easing the burden of TP documentation in Russia.
As a non-OECD country, Brazil will not be overtly affected by the outcome of the Base Erosion and Profit Shifting (BEPS) project. However, recent discussions suggest that interest is increasing and support for the OECD is rising due to the fairness and uniformity of its guidelines.
