Author:Bukhari, H.; Haq, I.

Published online:15 July 2013

2013 (Volume 19), No. 4

Asia-Pacific Tax Bulletin

This article presents a detailed and critical analysis of taxation of passive income in the hands of non-residents. While elaborating the scope and application of relevant provisions and case law, the article specifically highlights the areas of conflict in taxing such receipts, specifically characterization of income, implications in the presence or absence of a permanent establishment, taxation on net or gross basis, applicable tax rates, etc.

Author:Coronado, L.; McCarthy, J.

Published online:13 May 2013

2013 (Volume 19), No. 3

Asia-Pacific Tax Bulletin

Complex multi-jurisdictional value chains, offshore structures and intercompany transactions in the highly specialized oil and gas industry give rise to specific transfer pricing considerations, as discussed by the authors in this article. Recent developments in this area of tax in Asia and the approach of tax authorities are also briefly covered.

Author:Sim, S.T.Y.

Published online:16 May 2013

2013 (Volume 19), No. 3

Asia-Pacific Tax Bulletin

A typical piece on financial services transfer pricing issues may cover audit challenges in head-office services cost recharges, investment management fees, guarantee fees and so on. Whilst all these audit risks are real, the author examines some of the more fundamental structural reasons why financial services transfer pricing differ from transfer pricing in other industries including the challenges confronting an in-house financial services transfer pricing manager

Author:Hearder, D.

Published online:28 March 2013

2013 (Volume 19), No. 2

Asia-Pacific Tax Bulletin

Australia proposed amendments to its transfer pricing legislation in 2012 in relation to the interaction between the domestic rules and tax treaties. The author, who covered the proposed amendments in an earlier article, now analyses the new law and its impact on the future direction of Australia’s transfer pricing regime.

Author:Ponniah, A.

Published online:8 April 2013

2013 (Volume 19), No. 2

Asia-Pacific Tax Bulletin

Author:Llanes Navarro, C.; Dorson, D.; Tewari, S.

Published online:22 July 2013

2013 (Volume 19), No. 4

Asia-Pacific Tax Bulletin

The Indonesian tax authorities recently issued guidelines for transfer pricing audits, by way of PER 22/PJ/2013, Guidelines for Audits of Taxpayers with Special Relationships on 30 May 2013. The salient points of these guidelines are discussed in this article.

Author:Kumar, M.; Simhan, R.

Published online:23 July 2013

2013 (Volume 19), No. 4

Asia-Pacific Tax Bulletin

The Indian tax authorities have recently taken steps to apply transfer pricing rules to tax companies on the issue of shares to foreign related parties on the basis that the shares have been undervalued. The authors critically analyse the steps taken by the tax authorities and their impact.

Author:Boonsongprasert, S.

Published online:16 July 2013

2013 (Volume 19), No. 4

Asia-Pacific Tax Bulletin

Thailand issued transfer pricing guidelines in 2002 and subsequently in 2010, issued guidance on a bilateral advance pricing agreement programme. The author provides a description of the programme as well as look at the impact it has had on the Thai tax system.

Author:Norwood, B.A.

Published online:17 September 2013

2013 (Volume 19), No. 5

Asia-Pacific Tax Bulletin

This article describes China’s State Administration of Taxation’s views on the subject of location savings and other location-specific advantages.

Author:Pawar, B.; Udeshi, S.

Published online:16 September 2013

2013 (Volume 19), No. 5

Asia-Pacific Tax Bulletin

In this article, the authors describe the international concept of location savings, the positions taken by the Indian tax administration, as well as a relevant Indian court ruling on this subject.

Author:Carado II, C.

Published online:12 September 2013

2013 (Volume 19), No. 5

Asia-Pacific Tax Bulletin

For the first time, formal transfer pricing guidelines were issued by the Bureau of Internal Revenue on 23 January 2013, via Revenue Regulations No. 2-2013. These guidelines have been long awaited and mark an important milestone in the country’s tax arena. In this article, the author describes the salient points of the recent guidance and their impact on taxpayers.

Author:Siregar, N.; Tambunan, E.U.

Published online:21 August 2013

2013 (Volume 19), No. 5

Asia-Pacific Tax Bulletin

This article discusses the issues of thin capitalization and secondary adjustments in relation to the transfer pricing of intra-group lending transactions. The article focuses on the Director General of Taxation’s guidelines for handling transfer pricing cases, known as Circular Letter SE-04/PJ.7/1993 and its application in recent tax court cases.

Author:Bhatnagar, V.

Published online:23 October 2013

2013 (Volume 19), No. 6

Asia-Pacific Tax Bulletin

Transfer pricing legislation was introduced in the Bangladesh tax scene via the 2012 Finance Bill. The author points out the salient features of the new legislation and its implications for taxpayers.

Author:Qiu, T.; Ng, J. (Janice)

Published online:23 October 2013

2013 (Volume 19), No. 6

Asia-Pacific Tax Bulletin

In this article, the authors discuss the issues arising from the inconsistencies in valuations for transfer

Author:Hoang, T.D.; Tran, D.B.

Published online:30 October 2013

2013 (Volume 19), No. 6

Asia-Pacific Tax Bulletin

This article discusses the salient points of the draft circular issued by the Ministry of Finance on the proposed advance pricing agreement regime in Vietnam. Insight is also provided into the rational and imperative need for the regime.

Author:Chakravarty, A.; Ray, S.

Published online:23 October 2013

2013 (Volume 19), No. 6

Asia-Pacific Tax Bulletin

In this article, the authors outline the pertinent transfer pricing issues of supply chain management, in the context of a business restructuring contemplated by a multinational company.

Author:Soan, A.; Ganju, S.

Published online:13 January 2014

2014 (Volume 20), No. 1

Asia-Pacific Tax Bulletin

This article is the winning entry to the 9th Nani A. Palkhivala Research Paper Competition which was conducted by the All India Federation of Tax Practitioners. The authors comprehensively discuss the advance pricing agreement (APA) regime in India.

Author:Lennard, M.

Published online:20 January 2014

2014 (Volume 20), No. 1

Asia-Pacific Tax Bulletin

This article outlines the main issues discussed during the ninth annual session of the United Nations Committee of Experts on International Cooperation in Tax Matters, held in Geneva from 21 to 25 October 2013.

Author:Walker, J. (John)

Published online:19 February 2014

2014 (Volume 20), No. 2

Asia-Pacific Tax Bulletin

The comparative survey articles are based on selected papers presented at the Baker & McKenzie 29th Annual Asia-Pacific Tax Conference held in Singapore on 29 and 30 October 2013. The 30th Annual Asia-Pacific Tax Conference is to be held in Hong Kong in November 2014. For more information, please contact Liane Tsang of Baker & McKenzie, Hong Kong by tel.: +852 2846 2358 or by e-mail: liane.tsang@bakermckenzie.com.

Author:Jain, N.; Nguyen, P.T.

Published online:7 January 2014

2014 (Volume 20), No. 1

Asia-Pacific Tax Bulletin

This article discusses the regulatory and practical aspects of customs and transfer pricing rules governing related-party transactions, including the conflicts that arise as a result of the different rules.

Author:Masui, Y.

Published online:19 February 2014

2014 (Volume 20), No. 2

Asia-Pacific Tax Bulletin

This article is based on the author’s keynote lecture at the IBFD Asian Tax Lecture, which was held in Jakarta on 26 November 2013. The issue discussed was the availability of interest deductions for multinational enterprises, a pertinent issue as highlighted by the OECD in their current project on base erosion and profit shifting.

Author:Zobalia, H.; Devani, J.

Published online:7 January 2014

2014 (Volume 20), No. 1

Asia-Pacific Tax Bulletin

This article describes the OECD’s recent study on base erosion and profit shifting, including the specific actions to be taken to address this challenge. The significance of this issue for India is also discussed.

Author:Waidyasekera, D.D.M.

Published online:7 January 2014

2014 (Volume 20), No. 1

Asia-Pacific Tax Bulletin

This article examines the taxation changes that have taken place in Sri Lanka during the year 2013.

Author:Thomas, E.

Published online:4 March 2014

2014 (Volume 20), No. 2

Asia-Pacific Tax Bulletin

The comparative survey articles are based on selected papers presented at the Baker & McKenzie 29th Annual Asia-Pacific Tax Conference held in Singapore on 29 and 30 October 2013. The 30th Annual Asia-Pacific Tax Conference is to be held in Hong Kong in November 2014. For more information, please contact Liane Tsang of Baker & McKenzie, Hong Kong by tel.: +852 2846 2358 or by e-mail: liane.tsang@bakermckenzie.com.

Author:Kang, G.W.

Published online:28 April 2014

2014 (Volume 20), No. 3

Asia-Pacific Tax Bulletin

This article analyses the regulatory and practical aspects of the conflict arising as a result of different customs and transfer pricing rules governing related-party transactions.

Author:Phan, A.T.; Gupta, R.

Published online:14 May 2014

2014 (Volume 20), No. 3

Asia-Pacific Tax Bulletin

The authors examine the issues faced by taxpayers arising from the mismatch in transfer pricing and customs valuation in Indonesia.

Author:Chakravarty, A.; Gupta, R.; Chaudhuri, R.

Published online:30 June 2014

2014 (Volume 20), No. 4

Asia-Pacific Tax Bulletin

This article analyses the impact of the OECD’s Base Erosion and Profit Shifting initiative on transfer pricing with particular reference to the Indian scenario.

Author:Vaidya, K.; Supekar, D.

Published online:8 July 2014

2014 (Volume 20), No. 4

Asia-Pacific Tax Bulletin

The mismatch between transfer pricing and customs valuation rules in intercompany transaction is of growing concern. This article looks at the situation in India while explaining how taxpayers may align the two issues.

Author:Sanghvi, S.; Sagar, S.

Published online:1 July 2014

2014 (Volume 20), No. 4

Asia-Pacific Tax Bulletin

India is seen as a complex jurisdiction from a tax perspective and this gives rise to a large number of tax disputes. In this article, the authors look at the dispute resolution mechanisms in India and explain how strategies may be developed in order to manage tax disputes.

Author:Hou, J.

Published online:16 September 2014

2014 (Volume 20), No. 5

Asia-Pacific Tax Bulletin

The author provides an overview of the taxation of general and limited partnerships in China.

Author:Ostwal, T.P.; Vijayaraghavan, V.

Published online:10 July 2014

2014 (Volume 20), No. 4

Asia-Pacific Tax Bulletin

The authors provide a succinct overview of the development of transfer pricing in India along with the current issues faced when navigating the regime.

Author:Coronado, L.; Syrett, H.; Klein, M. (Martina)

Published online:17 November 2014

2014 (Volume 20), No. 6

Asia-Pacific Tax Bulletin

The Inland Revenue Authority of Singapore recently issued a public consultation paper on transfer pricing documentation, which aims to provide a better general understanding of Singapore taxpayers’ obligations in respect of transfer pricing documentation, most notably introducing contemporaneous transfer pricing documentation requirements. This article makes a comparison between the current Transfer Pricing Guidelines, the consultation paper and the recent guidance provided by the OECD, and addresses some concerns raised by taxpayers as well as possible next steps.

Author:McCarthy, J.; Hanif, A.

Published online:5 September 2014

2014 (Volume 20), No. 5

Asia-Pacific Tax Bulletin

In this article, the authors describe the concept of location savings and the position taken by the Indonesian tax authorities.

Author:Gupta, P.

Published online:28 August 2014

2014 (Volume 20), No. 5

Asia-Pacific Tax Bulletin

This article explores the concept of Cloud computing, its benefits and the challenges it throws on the current international tax laws (international tax and transfer pricing).

Author:Joseph, A.

Published online:1 December 2014

2014 (Volume 20), No. 6

Asia-Pacific Tax Bulletin

This article discusses the different valuation techniques employed by the Australian Customs and the Australian Tax Office. Although both Customs and the ATO subscribe to the same principle of “arm’s length”, the reality is that the two authorities apply differing tests when determining whether the price at which a transaction was entered into was at arm’s length.

2015 (Volume 21), No. 1

Published online:11 March 2015

Asia-Pacific Tax Bulletin

Author:Coronado, L.; Syrett, H.; Danabalan, V.

Published online:13 April 2015

2015 (Volume 21), No. 2

Asia-Pacific Tax Bulletin

This article is a continuation of the previous article in IBFD’s Asia-Pacific Tax Bulletin dated November/ December 2014 (Volume 20, – Number 6, – 2014), wherein the authors provided comments with regard to the key differences between the IRAS consultation paper on the transfer pricing guidelines and the final OECD report on Action 13. The revised guidelines were released by IRAS on 6 January 2015, and this article summarizses again the main similarities and differences between the key compliance issues in Section D of the final OECD report on Action 13 and the 2015 Singapore Transfer Pricing Guidelines.

Author:Kalra, V.; Dadhwal, K.; Butani, M.

Published online:22 June 2015

2015 (Volume 21), No. 3

Asia-Pacific Tax Bulletin

The authors discuss the recent Vodafone and Shell cases and the significance of these two transfer pricing cases for India’s taxpayers, government and investment climate.

Author:Sheehan, J.; O’Connell, C.; Cobarrubias, B.; Chiarapurk, E.

Published online:30 March 2016

2016 (Volume 22), No. 2

Asia-Pacific Tax Bulletin

The five countries of the Mekong region, namely Cambodia, Laos, Myanmar, Thailand and Vietnam, are part of an important growth area in ASEAN. While tax administrations in other parts of the world are grappling with issues of tax avoidance amid increasing scrutiny of international tax structures, the tax policies of the Mekong region countries are geared towards more effective tax management while at the same time keeping tax rates competitive to attract foreign investment. Mekong region tax authorities are also continuously enhancing tax collection measures, and there is an increased focus on transfer pricing in some countries. This article presents a brief analysis of some recent and significant tax changes in the Mekong region countries.

Author:Kim, B.J.

Published online:24 August 2016

2016 (Volume 22), No. 4

Asia-Pacific Tax Bulletin

In this article, the author considers how BEPS Actions 8, 9, 10 and 13 impact upon Korea’s transfer pricing law and practice. The article examines existing Korean transfer pricing legislation and case law, and focuses on the arm’s length principle and risks, intangibles, low value-adding intra-group services and cost contribution arrangements, from a Korean perspective.

Author:Nethercott, L.; Gonzaga, L.

Published online:26 September 2016

2016 (Volume 22), No. 5

Asia-Pacific Tax Bulletin

In this article, the authors consider the Country-by-Country reporting requirements of Action 13 of the BEPS Action Plan and the Australian legislation in respect of it. The article gives an overview of the practical aspects of the reporting requirements in relation to the reporting period, availability of information, reporting responsibility, the role of advisers, materiality, consistency and corporate strategy.

Author:Sim, S.T.Y.

Published online:26 August 2016

2016 (Volume 22), No. 4

Asia-Pacific Tax Bulletin

In this article, the author hopes to foster critical thinking by setting out the contrarian view that the OECD’s BEPS project must adapt to adequately address the needs and challenges of international tax administration in developing countries in Asia. He examines the BEPS proposals in terms of fine-tuning the “traditional architecture for international taxation”, especially with regard to the arm’s length approach to transfer pricing, and considers the difficulties of implementing OECD norms across the Asian continent, which is largely non-OECD and embraces a culturally different business environment.

Author:Chakravarty, A.; Ray, S.

Published online:3 October 2016

2016 (Volume 22), No. 5

Asia-Pacific Tax Bulletin

This article examines the AMP expenditure, location savings and guarantee fee elements of the transfer pricing debate. In particular, the authors discuss the three components in the context of United States and Indian jurisprudence, various government pronouncements, recent BEPS developments and changes to the OECD transfer pricing guidelines.

Author:Tavares, R.J.S.; Owens, J.P.

Published online:7 November 2016

2016 (Volume 22), No. 6

Asia-Pacific Tax Bulletin

This article addresses the implications of the OECD’s BEPS proposals for investment in, and the growth of, Asian economies. The authors argue that, in the post-BEPS world, Asian countries should adopt international coordination and cooperation, expand their permanent establishment rules and broaden their interpretations of the arm’s length principle to their best economic advantage, rather than unilaterally and incoherently over-implementing the new anti-BEPS weapons.

Author:Dugar, A.

Published online:30 November 2016

2016 (Volume 22), No. 6

Asia-Pacific Tax Bulletin

This article discusses the means by which multinational enterprises structure international transactions using associated enterprises to avoid India’s transfer pricing rules. The author examines the development of the deeming provisions in India’s income tax law, which are intended to counter the legal form of the arrangements, and considers how amendments to the law in 2014 have failed to address some types of transfer pricing arrangements which use foreign associated enterprises.

Author:Dugar, A.

Published online:22 February 2017

2017 (Volume 23), No. 2

Asia-Pacific Tax Bulletin

This article discusses the requirement under India’s domestic transfer pricing rules that a transaction must be entered into between associated enterprises. The author examines the components of the definition of “associated enterprise” in the Income Tax Act, and their inter-relationship. The competing contentions of taxpayers and the Income Tax Department are addressed, together with the decisions in three recent cases adjudicated by the Income Tax Appellate Authority.

Author:Astuti, M.D.

Published online:5 April 2017

2017 (Volume 23), No. 3

Asia-Pacific Tax Bulletin

In this article, the author examines Indonesia’s newly implemented regulation on transfer pricing documentation requirements. The article explains that the regulation largely conforms with the recommendations in the OECD’s final report on BEPS Action 13, but also addresses the absence of a de minimis rule, differences with respect to the ultimate parent company filing concept and the obligation to file transfer pricing documentation placed on Indonesian parent companies in a multinational group, application of the secondary filing mechanism to Indonesian subsidiary companies, submission of transfer pricing documentation, Indonesia’s adoption of ex ante transfer pricing methodology, the compliance cost burden imposed on Indonesian businesses and challenges facing the Indonesian tax authority.

Author:Sheehan, J.; Blaine, J.

Published online:7 June 2017

2017 (Volume 23), No. 3

Asia-Pacific Tax Bulletin

In this article, the authors explain the provisions in Thailand’s tax law that are designed to encourage foreign investment and economic development in the country. These include the participation exemption applicable to the taxation of foreign sourced dividends and capital gains under the holding company regime, and the international headquarters regime. The article addresses tax planning structures, which benefit from Thailand’s domestic law and tax treaties. The authors also discuss the current state of transfer pricing, adoption of BEPS initiatives and anti-avoidance rules in Thailand’s legislation.

Author:Arshad, A.; Nagappan, M.

Published online:19 June 2017

2017 (Volume 23), No. 3

Asia-Pacific Tax Bulletin

In this article, the authors canvass and critique measures announced in the 2017 Budget, which are designed to bring aspects of Indian domestic tax law into line with the OECD BEPS initiatives. These include the introduction of thin capitalization rules and transfer pricing secondary adjustments. The article also examines the government’s new place of effective management test of corporate residence and modifications to the rules on the taxation of gains from the indirect transfer of assets situated in India.

Author:Triginelli Miraglia, R.; Wang, M. (Mimi); Chi, C.

Published online:24 July 2017

2017 (Volume 23), No. 4

Asia-Pacific Tax Bulletin

In this article, the authors critically analyse the China Country Practice Chapter inserted into the United Nations Practical Manual on Transfer Pricing for Developing Countries in 2016. They present a critique of the major transfer pricing challenges facing China and the purported solutions to them. In this context, the article gives an overview of the strategies and practice developments of China’s State Administration of Taxation, addressing conceptual gaps and linking the tax administration’s policy statements to its enforcement practice.

Author:Dugar, A.; Bhandari, L.

Published online:25 July 2017

2017 (Volume 23), No. 4

Asia-Pacific Tax Bulletin

This article discusses the recent amendments to India’s Income Tax Act, which incorporate secondary adjustments into the country’s transfer pricing regime. The authors critique the language of the new statutory provisions and examine a variety of challenges to their application, which are likely to result in further transfer pricing litigation.

Author:Dugar, A.; Bhandari, L.

Published online:21 September 2017

2017 (Volume 23), No. 5

Asia-Pacific Tax Bulletin

In this article, the authors examine the 2012 amendment to the Income-tax Act, which brought receivables and debts arising during the course of business with foreign associated enterprises within the definition of international transactions, which are subject to the transfer pricing rules. The article considers whether outstanding receivables constitute separate international transactions and whether interest on the receivables should be separately charged to tax. The authors canvass the variety of High Court and Appellate Tribunal decisions on these questions and caution Indian taxpayers with their reporting on outstanding receivables and the need to properly benchmark them.

Author:Dugar, A.; Bhandari, L.

Published online:5 October 2017

2017 (Volume 23), No. 5

Asia-Pacific Tax Bulletin

This case note explains the Bombay High Court’s decision in Commissioner of Income Tax v. The Great Eastern Shipping Co. Ltd., which held that, where an Indian company advances a loan to a foreign associated enterprise, the arm’s length interest rate is to be ascertained by reference to the relevant rate of interest in the borrower’s country, and not that in India.

Author:Dugar, A.; Bhandari, L.

Published online:5 December 2017

2017 (Volume 23), No. 6

Asia-Pacific Tax Bulletin

The authors outline the decisions in five recent international tax cases delivered by the Delhi, Bombay and Gujarat High Courts.

Author:Timbadia, B.; Suneja, S.

Published online:21 November 2017

2017 (Volume 23), No. 6

Asia-Pacific Tax Bulletin

In this article, the authors highlight the increasing move by the Indian tax authorities towards adoption of the profit split method of allocating profits of multinational enterprises which undertake operations in India, particularly in relation to marketing intangibles, permanent establishments and contract research and development centres. The article canvasses recent Income Tax Appellate Tribunal decisions and highlights the need for multinational enterprises to protect themselves from the tax authority’s newfound thirst for the profit split method by carrying out detailed functional analyses, which are comprehensively documented.

Author:Gupta, G.

Published online:2 August 2017

2017 (Volume 23), No. 4

Asia-Pacific Tax Bulletin

This case note explains the recent Full Federal Court of Australia judgment in Chevron Australia Holdings Pty Ltd v. Commissioner of Taxation, in which the Court upheld on appeal the Commissioner’s transfer pricing adjustments in respect of the interest rate charged on intra-group loans.

Author:Bilaney, S.K.

Published online:5 December 2017

2017 (Volume 23), No. 6

Asia-Pacific Tax Bulletin

In this contribution, the author reviews the recent transfer pricing ruling, in relation to the characterization of the taxpayer as a manufacturer, issued by the Mumbai Income Tax Appellate Tribunal in UPM-Kymmene India Pvt. Ltd v. DCIT. The author raises some important aspects, which should have been considered by the tax authority and Tribunal in arriving at their decisions, and also provides his view on why the taxpayer should have been characterized as a value added distributor.