Summary

This 3-day advanced-level course provides participants who deal with double tax treaties on a regular basis an in-depth understanding of the important international developments including recent OECD updates and case law, and how these developments impact the application of double tax treaties.

Overview and Learning Objectives

The course covers important international developments in tax treaties including recent OECD updates and case law, focussing in particular on case law since 2006. The focus of this course is on how these recent developments impact the application of double tax treaties with respect to corporate income taxation. It deals with relevant OECD updates and tax cases on the scope of treaty application and residence, treaty entitlement and the relationship between domestic anti-avoidance rules and tax treaties (including the beneficial ownerships concept), the concept of permanent establishments and PE profit attribution, the application of treaty non-discrimination principles and various treaty characterization problems.

This is an interactive course with a maximum of 30 participants. Prior to the course, participants will be given access to a documentation platform which provides them with additional pre-reading material and supplementary material (e.g. legal documentation, case law and related articles/literature). During the course, participants will be provided with a course binder containing documents relevant to the course.

Who should attend?

The course is suitable for practitioners in tax advisory firms, tax specialists in commerce and industry, and government officials.

Course Level and Prerequisites

This is an advanced-level course. Participants taking this course will be expected to have a good understanding of at least one national tax system and the fundamentals of double tax treaties. The course will proceed on the assumption that participants already know the basic rules in tax treaties and have experience in applying them.

Day 1


08.30 - 09.00 Registration

09.00 - 09.20 Welcome and IBFD Overview

09.20 - 10.20 Introduction

•Which countries have tax treaty case law
•What you can expect of the case law in these countries: number of cases, main issues dealt with, quality etc.
•The influence of procedures on case law
•The use of foreign case law by courts
•The structure and wording of decisions
•IBFD tax treaty case law database

10.20 - 11.00 Scope of Tax Treaties and Residence

•Importance of treaty residence
•Recent OECD developments – 2008 and 2010 updates

Entities Covered
•Case 4600 – Italy 2009
•Case KVL 72/2009 – Finland 2009
•Case I R 34/08 – Germany 2008
•Case I R 39/07 – Germany 2008
•Case RÅ 2008 ref 30 (6639-06) – Sweden 2008
•Case 2 K 2100/03 – Germany 2006
•Case 04/01184 and 04/01177 – Netherlands 2006
•Frate Line, Dubai – India 2010
•Hongkong & Shanghai Banking Corporation Limited – India 2010
•South Africa – Grundlingh 2008
•Swift – United Kingdom 2010
•TD Securities – Canada 2010
•Re A Partnership – Germany 2007
•M/S Chiron Behring Gmbh – India 2008
•Green Emirate Shipping and Travels – India 2005
•General Electric Pension Trust – India 2005
•Wood – United Kingdom 2006
•UASC/CSL Ltd – India 2006
•United Kingdom - Laerstate BV 2009
•Netherlands – Case 43.128 2009

Trusts
•UK – Smallwood 2010
•Canada – Garrons 2009

Taxes/Tax Reliefs Covered
•Proctor and Gamble Company and Subsidiaries – US 2010
•Case 08/00315 – Netherlands 2009
•Kinsella – Ireland 2007
•Re XXX SA – Luxembourg 2006
•NEC Semi Conductor Ltd – United Kingdom 2006
•Patni Computer Systems – India 2007


11.00 - 11.20 Break - Refreshments

11.20 - 12.45 Scope of Tax Treaties and Residence (continued)

12.45 - 14.00 Lunch

14.00 - 14.30 Scope of Tax Treaties and Residence (continued)

14.30 - 15.30 Anti-avoidance Rules and Tax Treaties

•Relationship between tax treaties and anti-avoidance rules
•Relevant OECD Commentaries

General
•Case I R 21/07 – Germany 2007
•E Trade Mauritius – India 2010
•Bayfine – United Kingdom 2010
•Antle – Canada 2009
•Mil Investments – Canada 2006 and 2007
•Yanko-Weiss Holdings – Israel 2007
•A Holding ApS – Switzerland 2005

CFC rules and Tax Treaties
•Case RÅ 2008 ref 24 (2697-05) – Sweden 2008
•Glaxo Kabushiki Kaisha – Japan 2009
•CanWest Mediaworks Inc. – Canada 2008
•Eagle Distribuidora de Bebidas SA – Brazil 2006
•Case 108-08765 – Brazil 2006
•Case 20.03.02/596 – Finland 2002

Beneficial Ownership
•Case 09-01478 – Denmark 2010
•Case 09-01483 / SKM No. 2010.729 – Denmark 2009
•Case 2003/13/0052 – Austria 2006
•Re PT Transportas Gas Indonesia – Indonesia 2008
•PT Indah Kiat Pulp and Paper Tbk – Indonesia 2006
•Indofood – United Kingdom 2006
•Case 28.638 – Netherlands 1994
•Societe Bank of Scotland – France 2006
•Prévost – Canada 2008 and 2009

15.30 - 15.50 Break - Refreshments

15.50 - 17.00 Anti-avoidance Rules and Tax Treaty (continued)




Day 2

09.00 - 10.40 Permanent Establishments

•Various PE concepts in tax treaties
•Examples in the OECD Commentary and relevant case law
•Recent OECD developments – 2008 and 2010 updates

Permanent Establishments
•Case 2009 ref 91, (7569-08) – Sweden 2009
•Case 8488 – Italy 2010
•Case BK 07/00604 – Netherlands 2008
•Case I R 30/07 – Germany 2008
•Case No. G1 08/0446 – Belgium 2008
•Case 2005/AR/477 – Belgium 2007
•Case 01979/2003 – Spain 2006
•Case 0657/2003 – Spain 2006
•Dell Products (NUF) – Norway 2009
•J Ray McDermott Eastern Hemisphere Ltd – India 2010
•Fugro Engineers BV – India 2008
•UAE Exchange Centre Ltd – India 2009
•Jebon Corp – India 2009
•KT Corporation – India 2009
•Cal Dive Marine Construction Ltd – India 2009
•Pintsch Bamag – India 2008
•Knights of Columbus – Canada 2008
•American Income Life Insurance Company – Canada 2008
•Galileo International – India 2007
•X Ltd – Hungary 2008
•UGE SA – Italy 2006
•Morgan Stanley – India 2007
•Gulf Offshore NS Ltd – Canada 2006
•Western Union – India 2006
•Zimmer UK – France 2007 and 2010

10.40 - 11.00 Break - Refreshments

11.00 - 12.45 Permanent Establishments (continued)

12.45 - 14.00 Lunch

14.00 - 15.30 Attribution of Profits to Permanent Establishments

•Debate in the attribution of profits to PEs
•Nat West I case – US 1999
•Nat West II case – US 2003
•Nat West III case – US 2005
•Recent OECD developments – 2008 and 2010 updates

Attribution of Profits to PEs
•Besix Kier Dabhol – India 2010
•Technip Italy Spa. – India 2010
•Case 270/2006 – Spain 2007
•Case 3167/2004 – Spain 2006
•Case 03099/2004 – Spain 2006
•Case 03852/2004 – Spain 2006
•Case II R 59/05 – Germany 2006
•Case 7 K 189/04 – Germany 2006
•Case 82 – Italy 2006
•Gulf Offshore N.S. Limited – Canada 2006
•Case 04408/2002 – Spain 2006
•Cray Research India Ltd – India 2010
•Rolls Royce PLC – India 2009
•Deutsche Bank AG – Thailand 2008
•Nat West IV – US 2008
•Hyundai Heavy Industries – India 2007
•SET Satellite (Singapore) Pte Ltd – India 2008
•Roxon OY – India 2006
•Mashreqbank PSC – India 2007
•Morgan Stanley – India 2007
•ABN Amro – India 2005

15.30 - 15.50 Break - Refreshments

15.50 - 17.00 Attribution of Profits to Permanent Establishments (continued)


Day 3

09.00 - 10.40 Treaty Non-Discrimination Principles

•Importance of treaty non-discrimination principles
•Recent OECD developments – 2008 updates
•Non-discrimination principles under EU law

General
•Case 07PA01366 – France 2008
•FCE Bank Plc – United Kingdom 2010
•Case 5ème chambre, Formation A, No. 06PA03370 – France 2007
•Case 07PA01717 and Case 06PA03371– France 2007
•Case No. 06PA01257 – France 2007
•Boake Allen et. al. – United Kingdom 2007
•Daimler Chrysler India Private Ltd – India 2009
•Case 2007/14/0048 – Austria 2007
•Metchem Canada Inc. – India 2005
•Square D Company – US 2006
•NEC Semi-Conductor Ltd – United Kingdom 2006
•Pirelli – United Kingdom 2006

Permanent Establishments
•Case 2007/14/0048 – Austria 2007
•Case 21979 C – Luxembourg 2007
•Case 2007/63 – Belgium 2006
•Case 2005/14/0036 – Austria 2006
•Automated Securities Clearance Inc. – India 2008
•UBS AG – United Kingdom 2006 and 2007
•SAIPEM UK – Canada 2011

Thin Capitalization Rules
•Case KA40/9453-09-2 and Case A26-6967/2008 – Russia 2009
•Case A56-19578/2006 – Russia 2007
•Case 2007-12-20- Spain 2007
•Case 109/2006 – Spain 2006
•Case 2335/2002 – Spain 2006

10.40 - 11.00 Break - Refreshments

11.00 - 12.45 Treaty Non-Discrimination Principles (continued)

12.45 - 14.00 Lunch

14.00 - 15.30 Characterization under Tax Treaties

•Importance of treaty characterization
•Definitions of immovable property, business profits, royalties, interest, dividends and capital gains
•Recent OECD developments – 2008 and 2010 updates

General
•Case F.08.0100.F – Belgium 2010
•Bharati AXA General Insurance Co.Ltd – India 2010
•Case I R 81/09 – Germany 2010
•Case I R 77/06 – Germany 2008
•Case (Gyou-Hi) 300 of 2007 – Japan 2008
•Case I R 66/06 – Germany 2007
•Case I R 5/06 – Germany 2007
•Case 2443/2001 – Spain 2006
•Case 1056/2549 (2006) – Thailand 2006
•Federal Union v Copesul – Brazil 2009
•Invensys Systems – India 2009
•Samsung Engineering Corporation – India 2010

Income from Immovable Property
•Case 22499 C – Luxembourg 2007
•Case 5 K 291/04 – Germany 2006
•Lamesa Holdings BV – Australia 1997

Royalties/IP
•Reliance Industries Ltd. – India 2010
•Microsoft Corporation – India 2010
•Karl Storz Endoscopy India (P) Ltd – India 2010
•Joint Accreditation System of Australia and New Zealand – India 2010
•GeoQuest Systems B.V. – India 2010
•Gartner Ireland Limited – India 2010
•Case 177/2008 – Spain 2010
•Case 1069/2004 – Spain 2008
•Case 3604/2006 – Spain 2008
•Case 4085/2005 – Spain 2008
•Case 174/2002 – Spain 2007
•Case 3730/2004 – Spain 2007
•Case 1804/2006 – Spain 2006
•Case 440/2008 – Spain 2010
•Case 21220 – Italy 2006
•Case 1110/2003 (Real Madrid FC) – Spain 2006
•Case 2003/13/0015 – Austria 2006
•McDermott – Australia 2005
•PanAmSat – China 2001
•Kotak Mahindra Primus – India 2006
•Dell International Services – India 2006
•New Skies Satellite – India 2008
•Foster's Australia Ltd – India 2008
•West Asia Maritime Ltd – India 2008
•Re ABC Ltd UK and Re XYZ Ltd UK – India 2005

Interest/Dividends
•New York Guangdong Finance Inc – US 2008 and 2009
•Case No. 06-1048 – France 2009
•Case No. 2 Afs 42/2008-62 – Czech Republic 2009
•Case I R 62/06 – Germany 2008
•Case 2 K 4034/05 – Germany 2007
•Case 5 K 3795/03 – Germany 2006
•GE Capital Finance Pty Ltd. – Australia 2007
•Volkswagen of South Africa (Pty) Ltd – South Africa 2008
•LMN India Ltd – India 2008
•Deutsche Asia Pacific Finance Ltd – Australia 2008

Capital Gains
•Case I R 63/06 – Germany 2008
•Case 7 K 228/02 – Germany 2006
•Virgin Holdings SA – Australia 2008
•Undershafts (No 1) Ltd – Australia 2010

15.30 - 15.50 Break - Refreshments

15.50 - 17.00 Characterization under Tax Treaties (continued)

Wim Wijnen, IBFD, the Netherlands, Joana Wheeler, IBFD, the Netherlands,
Belema Obuoforibo, IBFD, the Netherlands,
Jan de Goede, IBFD, the Netherlands,
Shee Boon Law, IBFD, the Netherlands,
Tigran Mkrtchyan, IBFD, the Netherlands,
Andreas Perdelwitz, IBFD, the Netherlands