Tax News

Tax News Highlights: December 2023

In this podcast, Zoe Andrews, Tanja Velling and Nele Dhondt discuss the CJEU decision in the Engie State aid case, the Advocate General's opinion in the Apple State aid case, the UK Supreme Court's decisions in Skatteforvaltningen and in Fisher on the transfer of assets abroad regime.

The podcast also covers the UN Resolution on a framework convention on international tax cooperation and the OECD’s Tax Certainty Day and MAP statistics.

Tax News Highlights: November 2023

In this podcast, Emma Game and Tanja Velling discuss the Supreme Court’s decision in Vermilion considering whether a particular securities option was employment-related, the Court of Appeal’s decision in Delinian (formerly Euromoney) on the purpose test in the capital gains tax reorganisation rules, and the Upper Tribunal’s decision in Refinitiv, a judicial review case where the taxpayers argued that a diverted profits tax notice was inconsistent with an advance pricing agreement.

Tax News Highlights: October 2023

In this podcast, Zoe Andrews and Tanja Velling discuss the Upper Tribunal’s decision in ScottishPower on the deductibility of payments made pursuant to an agreement with the regulator at the end of an investigation and the Supreme Court’s decision in Target Group on the scope of the VAT exemption for financial services.

The podcast also covers draft legislation for Finance Bill 2023-24 in respect of the removal of the 1.5% stamp duty and SDRT charge on issues and transfers integral to capital raisings and further changes to the UK’s implementation of the Pillar Two GloBE Rules. Zoe and Tanja discuss the draft legislation for the transitional UTPR safe harbour and the QDMTT safe harbour, and how tax imposed under the Subject-to-Tax Rule fits within the GloBE rules.

They further touch on developments in respect of the Multilateral Convention to Implement Amount A of Pillar One and the European Commission’s proposals for two new corporate tax directives concerning, respectively, the harmonisation of the corporate income tax base under the Business in Europe: Framework for Income Taxation (BEFIT) and the incorporation of the arm’s length principle and OECD Transfer Pricing Guidelines into EU law.

Tax News Highlights: September 2023

In this podcast, Zoe Andrews and Tanja Velling discuss the Upper Tribunal’s decisions in JTI Acquisitions Company on the loan relationships unallowable purpose rule, Hotel La Tour on input tax recovery in respect of advisers’ fees on a share sale to raise funds for downstream economic activity, and M Group Holdings on the substantial shareholding exemption. They also discuss the First-tier Tribunal’s decision in Wilkinson on the unallowable purpose rule in the capital gains tax reorganisation rules.

The podcast further covers certain draft legislation for Finance Bill 2023-24 published on 18 July 2023, including the proposal for a single merged regime for tax reliefs for research and development, and provides an update on international tax reform, focussing the UK’s proposed implementation of the UTPR, and the QDMTT safe harbour and transitional UTPR safe harbour in the second tranche of Administrative Guidance published on 17 July 2023 by the Inclusive Framework.

Tax News Highlights: June 2023

In this podcast, Zoe Andrews and Tanja Velling are joined by Nele Dhondt to discuss the EU’s Foreign Subsidies Regulation, how it could apply in the tax context and what steps can be taken to prepare for its coming into force. They also discuss the Advocate General’s opinion in the Amazon State aid case, recommending that the Court of Justice upholds the General Court’s decision that had annulled the European Commission’s finding of State aid.

In relation to the UK, the podcast considers HMRC’s draft guidance on the multinational top-up tax (the first tranche of which has been published for consultation until 12 September) and HMRC’s updated guidance on the loan relationships unallowable purpose test.

Zoe and Tanja also discuss the consultation on the reform of the UK’s transfer pricing, permanent establishment and Diverted Profits Tax legislation, the announcement of the “Energy Security Investment Mechanism” which should effectively bring forward the end date of the Energy (Oil and Gas) Profits Levy if oil and gas prices fall below certain thresholds, and the Upper Tribunal’s decision in Hargreaves Property Holdings on interest withholding tax.

Tax News Highlights - May 2023

In this podcast, Zoe Andrews and Tanja Velling discuss the Court of Appeal’s decision in McClean v Thornhill KC on duty of care in the context of tax advice, the First-tier Tribunal’s decision in Buckingham on the tax treatment of a US dividend, the Upper Tribunal’s decision in Spring Capital on whether questions of Scots law are questions of fact or law, and the Advocate General’s opinion in the Engie State aid case.

They further discuss the consultations on the modernisation of stamp taxes on shares and the introduction of a new fund structure, the Reserved Investor Fund (Contractual Scheme), which were published as part of the Tax Administration and Maintenance Day on 27 April 2023. The podcast also covers the potential QDMTT safe harbour, the status of Pillar Two implementation across different jurisdictions, and a Brexit-related change to HMRC’s practice on late payment interest as well as an update on the Retained EU Law (Revocation and Reform) Bill.

Tax News Highlights: March 2023

In this podcast, Zoe Andrews and Tanja Velling discuss a few highlights from the Spring Budget, including certain pensions tax changes, the temporary introduction of full expensing for expenditure that would otherwise attract capital allowances at the main rate of 18%, an update on tax reliefs for research and development and changes to the application of certain administrative provisions in respect of the assessment of capital gains tax (or corporation tax on chargeable gains) on the completion of unconditional contracts. 

Tax News Highlights: February 2023

In this podcast, Zoe Andrews and Tanja Velling discuss the Upper Tribunal’s decisions in Harrison, confirming the demise of the doctrine of “staleness” in relation to discovery assessments, and Morrisons on the standard to be applied when reviewing the First-tier Tribunal’s assessment of a multi-factorial test. 

They also discuss HMRC’s Transfer Pricing and Diverted Profits Tax statistics for 2021-2022, showing inter alia a significant reduction in the number of Advance Thin Capitalisation Agreements, and the report on HMRC’s Financial Institution Notice powers, confirming that HMRC will not use the powers to request taxpayer location data, but may use them to request information on a financial institution’s employees and contractors. 

The podcast further provides an update on international tax reform, looking in particular at the impact assessment and administrative guidance recently published by the OECD, discusses the OECD’s new Manual on the Handling of Multilateral Mutual Agreement Procedures and Advance Pricing Arrangements and notes HM Treasury’s more detailed response to its online sales tax consultation, following the announcement at the Autumn Statement that no such tax would be introduced.