KPMG’s Week in Tax: 11-15 January 2016

KPMG’s Week in Tax: 11-15 January 2016

Many countries intend to enact, or have already enacted, laws implementing country-by-country (CbC) reporting and other transfer pricing disclosure requirements based on Action 13 of the OECD’s base erosion and profit shifting (BEPS) action plan.

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KPMG has prepared a report (in table format) listing these countries and summarizing the developments. Read TaxNewsFlash-BEPS


Other developments in the BEPS or CbC arenas include:

  • Belgium: The European Commission (EC) concluded that selective tax advantages granted by Belgium under its "excess profit" tax regime are illegal under EU state aid rules.
  • Australia: Entities headquartered in Australia with a December year-end are subject to new CbC reporting rules.
  • EU: The EC’s working programme for 2016 in the corporate tax area includes proposals on anti-corporate tax avoidance.
  • Finland: A proposal was released to revise the transfer pricing documentation rules and introduce CbC reporting.
  • EU: The EC plans to launch on 27 January 2016, an additional package of initiatives to address corporate tax avoidance within the EU and throughout the world.


  • Brazil: New criteria were announced with respect to identifying taxpayers that are subject to Brazil’s “differentiated tax monitoring” procedure. 
  • Brazil: In São Paulo, a “simplified” method with respect to ICMS-ST reimbursement has been provided for taxpayers
  • Dominican Republic: Tax rates for 2016 have been provided, including the corporate income tax and value added tax (VAT) rates.
  • Canada: An agreement was signed with the UK that clearly outlines procedures for the application of the arbitration provisions of the Canada-UK income tax treaty. 
  • Canada: Certain reporting requirements imposed on labour organizations and labour trusts will be waived.

Asia Pacific

  • Australia: Guidelines were issued offering reduced penalties, to encourage taxpayers to engage with the tax authority (ATO) concerning the “multinational anti-avoidance” provisions (MAAL). 
  • China: Guidance was issued to adjust the import customs duty policies for “major technical equipment,” effective 1 January 2016.
  • China: Guidance was issued concerning VAT issues of finance leasing activities.
  • Thailand and the Philippines: KPMG member firms provided “tax calendars” for 2016, listing tax return filing due dates and tax payment dates.


  • Poland: A program is launched to make grants available to fund research and development (R&D) projects in the chemical sector.
  • Italy: The budget law for 2016 enacted new VAT measures and revised existing VAT law.


  • Australia: The common reporting standard (CRS) will be implemented, effective from 1 July 2017.
  • OECD: A list of jurisdictions that have committed to an automatic exchange of information (AEOI) pursuant to implementation of the CRS is available.
  • Mauritius: The implementation date for CRS, originally set for 1 January 2016, has been deferred.
  • Cyprus: A decree transposes into Cypriot domestic law the CRS requirements, effective 1 January 2016.

United States

  • Notice 2016-6 provides guidance to employers about a retroactive increase in the exclusion amount of the monthly transit benefit provided employees.
  • Notice 2016-5 explains how claimants can make a one-time claim for the 2015 biodiesel mixture and alternative fuel excise tax credits that were retroactively extended by tax legislation enacted 18 December 2015.
  • The U.S. Court of Appeals for the Fourth Circuit found that a capital contribution to a limited liability company (LLC) in exchange for the LLC’s state tax credits was actually gross income to the LLC under the “disguised sale” rules.


Read these and other items reported this week at the TaxNewsFlash United States and Global websites

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