A spokesperson for US toy company Hasbro announced the company had agreed to pay the Mexican tax authorities (SAT) $65 million ($US 4.38 million) to settle tax avoidance claims. Hasbro is unlikely to be the only multinational to pay up.
Hong Kong’s Inland Revenue Department (IRD) has concluded its first bilateral advance pricing agreement (APA) with the Japanese tax authorities. The APA highlights the IRD’s willingness to cooperate with other countries to bring greater tax certainty to Hong Kong.
French oil company Total has announced plans to close subsidiaries in tax havens in a bid to prove it is making conscious efforts to clean up its tax policy. However, it remains to be seen whether Total’s intentions are genuine or simply a publicity stunt.
The Public Accounts Committee (PAC) released a report on tax avoidance, focusing primarily on tax arrangements between pharmaceutical company Shire and PwC. PAC’s insistence on making an example of PwC throughout the report shows the government has no qualms about publicly naming and shaming advisers.
The Spanish government recently changed its transfer pricing rules regarding documentation requirements and penalties. These amendments show Spain is aligning itself more closely to OECD guidelines.
The Central Board of Direct Taxes (CBDT) has requested that Income Tax Appellate Tribunals (ITAT) and dispute resolution panels (DRP) apply the principle behind the Bombay High Court’s Vodafone ruling for similar transfer pricing cases.
