Dbriefs Bytes

1. Motorola case • Delhi Income Tax Appellate Tribunal • "Excessive" advertising, marketing, and promotional (AMP) expenditure • "Transaction-by-transaction" approach vs. "Combined" approach • For information: Anis Chakravarty (Mumbai): anchakravarty@deloitte.com Rakesh Alshi (Mumbai): ralshi@deloitte.com 2. Japanese cases • Honda Motor Company: transfer pricing • Denso Corporation: CFC rules • For information: Jun Takahara (Tokyo): jun.takahara@tohmatsu.co.jp 3. China • Bulletin 49: VAT exemption on exported services • Bulletin 50: business tax treatment of bond trading by financial institutions • Bulletin 54: tax authorities to notify taxpayers of "special tax adjustment" risks • To obtain a copy of Bulletins 49, 50, and 54 (Chinese language) - Bulletin 49: visit www.deloitte.com/ap/dbriefs/bytes - Bulletin 50: visit www.deloitte.com/ap/dbriefs/bytes - Bulletin 54: visit www.deloitte.com/ap/dbriefs/bytes • SAT investigation of dividend withholding tax avoidance • Shanghai Pilot Free Trade Zone: customs non-compliance voluntary disclosure. To obtain a copy of our Tax Newsflash: visit www.deloitte.com/ap/dbriefs/bytes • For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoyeqinli@qinlilawfirm.com 4. In brief • Malaysia: rulings on non-resident fund management company. To obtain a copy of the two rulings - Public Ruling No. 2/2014: visit www.deloitte.com/ap/dbriefs/bytes - Public Ruling No. 6/2014: visit www.deloitte.com/ap/dbriefs/bytes - For information: Tan Hooi Beng (Kuala Lumpur): hooitan@deloitte.com • India: new guidelines for selection of cases for transfer pricing audit. To obtain a copy of the new guidelines, visit www.deloitte.com/ap/dbriefs/bytes • Australia: repeal of tax loss carryback rules - For information: David Watkins (Sydney): dwatkins@deloitte.com.au • Inversions: Standard & Poor's report on credit ratings of inverted companies. To obtain a copy of the report, visit www.deloitte.com/ap/dbriefs/bytes; and to obtain a copy of the press release, visit www.deloitte.com/ap/dbriefs/bytes • BEPS: 7 OECD reports, press briefing, and technical webcast: all on 16 September 2014; U.S. Dbriefs webcast on 17 September 2014. For details, visit www.deloitte.com/ap/dbriefs/bepscentral

1. Cases • China: indirect share transfer case (Qidong) - For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoyeqinli@qinlilawfirm.com • India: Copal revisited - Contrast between indirect share transfer rules of China and India 2. India • New committee on retrospective indirect share transfer cases • For information: N.C. Hegde (Mumbai): nhegde@deloitte.com K.R. Sekar (Bangalore): krsekar@deloitte.com • To obtain a copy of the order which established the committee, visit www.deloitte.com/ap/dbriefs/bytes 3. BEPS • G20 International Tax Symposium (May 2014): report • "Dutch banks and tax avoidance": research paper (Profunda) • "Global tax avoidance and its effects on Australia's economic prosperity": Mark Konza (Australian Taxation Office) • Draft guidance on transfer pricing documentation: Singapore tax authorities • To obtain a copy of the above 4 documents, visit http://www.deloitte.com/ap/dbriefs/bepscentral 4. In brief • Treaties: India / Colombia and Indonesia / Papua New Guinea treaties enter into force • Shanghai Pilot Free Trade Zone - For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoyeqinli@qinlilawfirm.com • Japan: second stage increase in consumption tax rate - For information: Jun Takahara (Tokyo): jun.takahara@tohmatsu.co.jp • Australia: repeal of minerals resource rent tax - For information: David Watkins (Sydney): dwatkins@deloitte.com.au • New Zealand: updated guidance on transfer pricing aspects of loans - For information: Teresa Farac (Auckland): tfarac@deloitte.co.nz - To obtain a copy of the guidance, visit www.deloitte.com/ap/dbriefs/bytes • OECD: 2014 edition of model treaty and commentary

1. Cases • China: indirect share transfer case (Qidong) - For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoyeqinli@qinlilawfirm.com • India: Copal revisited - Contrast between indirect share transfer rules of China and India 2. India • New committee on retrospective indirect share transfer cases • For information: N.C. Hegde (Mumbai): nhegde@deloitte.com K.R. Sekar (Bangalore): krsekar@deloitte.com • To obtain a copy of the order which established the committee, visit www.deloitte.com/ap/dbriefs/bytes 3. BEPS • G20 International Tax Symposium (May 2014): report • "Dutch banks and tax avoidance": research paper (Profunda) • "Global tax avoidance and its effects on Australia's economic prosperity": Mark Konza (Australian Taxation Office) • Draft guidance on transfer pricing documentation: Singapore tax authorities • To obtain a copy of the above 4 documents, visit http://www.deloitte.com/ap/dbriefs/bepscentral 4. In brief • Treaties: India / Colombia and Indonesia / Papua New Guinea treaties enter into force • Shanghai Pilot Free Trade Zone - For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoyeqinli@qinlilawfirm.com • Japan: second stage increase in consumption tax rate - For information: Jun Takahara (Tokyo): jun.takahara@tohmatsu.co.jp • Australia: repeal of minerals resource rent tax - For information: David Watkins (Sydney): dwatkins@deloitte.com.au • New Zealand: updated guidance on transfer pricing aspects of loans - For information: Teresa Farac (Auckland): tfarac@deloitte.co.nz - To obtain a copy of the guidance, visit www.deloitte.com/ap/dbriefs/bytes • OECD: 2014 edition of model treaty and commentary

1. Indian case: Copal • Delhi High Court • Indirect share transfer: meaning of "substantially" in section 9(1)(i) Explanation 5 • For information: Rajesh Gandhi (Mumbai): rajegandhi@deloitte.com N.C. Hegde (Mumbai): nhegde@deloitte.com K.R. Sekar (Bangalore): krsekar@deloitte.com 2. Hong Kong case: Director’s fees • Board of Review • Source of director’s fees depends on residence (central management and control) of company • Foreign-incorporated company, with shares listed on Hong Kong stock exchange, held to be resident in Hong Kong • For information: Anthony Lau (Hong Kong): antlau@deloitte.com.hk 3. China • Circular 146 • Focus on outbound payments of service fees and royalties • To access Dbriefs Bytes 6 June (6 tests for deduction of outbound service fees), visit www.deloitte.com/ap/dbriefs/bytes • To access Dbriefs Bytes 11 July (Chengdu royalties case), visit www.deloitte.com/ap/dbriefs/bytes • For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoyeqinli@qinlilawfirm.com 4. In brief • Singapore / Rwanda treaty signed • Inversions i. Burger King / Tim Hortons ii. What's Chinese for inversions?

1. Cases • Korean Supreme Court (26 June 2014) - Application of Korea / U.S. treaty to U.S. LLC • Korean Supreme Court (10 July 2014) - Interposed Dutch holding company held to be beneficial owner, for Korean purposes • Korean National Tax Tribunal (29 May 2014) - "Substantial shareholder" dividend tax rate: do the shares need to be directly owned? • For information: Gyung Ho Kim (Seoul): gykim@deloitte.com 2. BEPS • C20 paper • Unilateral changes: France and the Netherlands • OECD's part 1 report: tax incentives and indirect share transfers • For a copy of the C20 paper and the OECD part 1 report, visit www.deloitte.com/ap/dbriefs/bepscentral 3. Australia • Dividend washing compliance program • Bitcoin transactions: draft public rulings • For information: David Watkins (Sydney): dwatkins@deloitte.com.au 4. In brief • India / Fiji and Japan / Oman treaties enter into force • Vietnam: Circular 103 - For information: Tom McClelland (Ho Chi Minh): tmcclelland@deloitte.com - For a copy of our Tax Alert: visit www.deloitte.com/ap/dbriefs/bytes • Thailand: inheritance tax and property tax

1. Korea • Tax rate increase to encourage large Korean companies to reduce their cash balances by spending on investment, increased wages, dividends, etc. • Two calculation methods • For a copy of 6 August 2014 government press release, visit www.deloitte.com/ap/dbriefs/bytes • For a copy of July 2014 government document on economic policies, visit www.deloitte.com/ap/dbriefs/bytes • For information: Gyung Ho Kim (Seoul): gykim@deloitte.com 2. Cases • India - Zaheer: characterization of profit made on the sale of debentures: “interest” or “capital gain”? - LG: does Korean parent have a PE in India (at the premises of Indian subsidiary)? - Reuters: definition of “royalties” in India / UK treaty - For information: N.C. Hegde (Mumbai): nhegde@deloitte.com K.R. Sekar (Bangalore): krsekar@deloitte.com • Finland - Hybrid loan case - For information: Tomi Pitkanen (Helsinki): tomi.pitkanen@deloitte.fi 3. Inversions • Biggest international tax story of 2014? • Why are there many more inversions now? 4. China • Circular 318: enforcement of capital gains tax on share transfers • Draft GAAR guidelines: comments from Tax Executive Institute (TEI) - For a copy of TEI’s comments, visit www.deloitte.com/ap/dbriefs/bytes • For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoyeqinli@qinlilawfirm.com 5. In brief • Treaties: Korea / Colombia and China / Netherlands treaties enter into force • OECD - Request for public comments on BEPS Action 11: for a copy, visit www.deloitte.com/ap/dbriefs/bepscentral - Part 1 of report on the impact of BEPS on low-income countries: for a copy, visit www.deloitte.com/ap/dbriefs/bepscentral - Global Forum’s latest batch of peer reviews and compliance ratings, in regard to transparency and exchange of information • For a copy of Indonesia’s report, visit www.deloitte.com/ap/dbriefs/bytes • New Zealand: tax authority’s description of recent changes to thin cap rules - For a copy, visit www.deloitte.com/ap/dbriefs/bytes - For information: Teresa Farac (Auckland): tfarac@deloitte.co.nz • Whistleblowers

1. Korea • Tax rate increase to encourage large Korean companies to reduce their cash balances by spending on investment, increased wages, dividends, etc. • Two calculation methods • For a copy of 6 August 2014 government press release, visit www.deloitte.com/ap/dbriefs/bytes • For a copy of July 2014 government document on economic policies, visit www.deloitte.com/ap/dbriefs/bytes • For information: Gyung Ho Kim (Seoul): gykim@deloitte.com 2. Cases • India - Zaheer: characterization of profit made on the sale of debentures: “interest” or “capital gain”? - LG: does Korean parent have a PE in India (at the premises of Indian subsidiary)? - Reuters: definition of “royalties” in India / UK treaty - For information: N.C. Hegde (Mumbai): nhegde@deloitte.com K.R. Sekar (Bangalore): krsekar@deloitte.com • Finland - Hybrid loan case - For information: Tomi Pitkanen (Helsinki): tomi.pitkanen@deloitte.fi 3. Inversions • Biggest international tax story of 2014? • Why are there many more inversions now? 4. China • Circular 318: enforcement of capital gains tax on share transfers • Draft GAAR guidelines: comments from Tax Executive Institute (TEI) - For a copy of TEI’s comments, visit www.deloitte.com/ap/dbriefs/bytes • For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoyeqinli@qinlilawfirm.com 5. In brief • Treaties: Korea / Colombia and China / Netherlands treaties enter into force • OECD - Request for public comments on BEPS Action 11: for a copy, visit www.deloitte.com/ap/dbriefs/bepscentral - Part 1 of report on the impact of BEPS on low-income countries: for a copy, visit www.deloitte.com/ap/dbriefs/bepscentral - Global Forum’s latest batch of peer reviews and compliance ratings, in regard to transparency and exchange of information • For a copy of Indonesia’s report, visit www.deloitte.com/ap/dbriefs/bytes • New Zealand: tax authority’s description of recent changes to thin cap rules - For a copy, visit www.deloitte.com/ap/dbriefs/bytes - For information: Teresa Farac (Auckland): tfarac@deloitte.co.nz • Whistleblowers

1. OECD Model Treaty and Commentary: 2014 Update: Share redemptions • Source country treatment as "income from shares" requires that Article 10, not 13, applies • Residence country must accept that treatment, for purposes of Articles 23A and 23B 2. OECD Model Treaty and Commentary: 2014 Update: Accrued interest • Definition of "interest" in Article 11 • Amended Commentary: sale of security for price which reflects accrued interest, redemption premium, or original issue discount 3. OECD Model Treaty and Commentary: 2014 Update: "Look through" rule for conduit companies? • Amendments to Model Treaty and Commentary in regard to "beneficial ownership" do not provide for an express "look through" rule for conduit companies 4. Cases • India: MISC case • Article 8 of India / Malaysia treaty • Slot-chartering arrangement • For information: N.C. Hegde (Mumbai): nhegde@deloitte.com K.R. Sekar (Bangalore): krsekar@deloitte.com 5. In brief • Treaties - Singapore / Liechtenstein enters into force • Taiwan - R&D tax credits and other incentives: now require compliance with environmental, labor, and food safety laws - For information: Cheli Liaw (Taipei): cheliliaw@deloitte.com.tw • India - Cairn: moves its "indirect share transfer" case to new committee - For information: N.C. Hegde (Mumbai): nhegde@deloitte.com K.R. Sekar (Bangalore): krsekar@deloitte.com

1. OECD Model Treaty and Commentary: 2014 Update: Share redemptions • Source country treatment as "income from shares" requires that Article 10, not 13, applies • Residence country must accept that treatment, for purposes of Articles 23A and 23B 2. OECD Model Treaty and Commentary: 2014 Update: Accrued interest • Definition of "interest" in Article 11 • Amended Commentary: sale of security for price which reflects accrued interest, redemption premium, or original issue discount 3. OECD Model Treaty and Commentary: 2014 Update: "Look through" rule for conduit companies? • Amendments to Model Treaty and Commentary in regard to "beneficial ownership" do not provide for an express "look through" rule for conduit companies 4. Cases • India: MISC case • Article 8 of India / Malaysia treaty • Slot-chartering arrangement • For information: N.C. Hegde (Mumbai): nhegde@deloitte.com K.R. Sekar (Bangalore): krsekar@deloitte.com 5. In brief • Treaties - Singapore / Liechtenstein enters into force • Taiwan - R&D tax credits and other incentives: now require compliance with environmental, labor, and food safety laws - For information: Cheli Liaw (Taipei): cheliliaw@deloitte.com.tw • India - Cairn: moves its "indirect share transfer" case to new committee - For information: N.C. Hegde (Mumbai): nhegde@deloitte.com K.R. Sekar (Bangalore): krsekar@deloitte.com

1. OECD Model Treaty and Commentary: 2014 Update • Omitted: amendments to Commentary on Article 5 • Amendments to Commentary on meaning of “beneficial owner” - “Dependent” test vs. “related” test • For a copy of the 2014 Update, visit www.deloitte.com/ap/dbriefs/bytes 2. Cases • Allcargo Global Logistics (India) - Re-characterize transaction for transfer pricing purposes - Tribunal: delayed allotment of shares cannot be re-characterized as a loan - For information: K.R. Sekar (Bangalore): krsekar@deloitte.com 3. Australia • Carbon tax repealed • Amendment bill: thin capitalization and participation exemption for non-portfolio foreign dividends • Internal ATO report • For information: David Watkins (Sydney): dwatkins@deloitte.com.au 4. BEPS • Pascal Saint-Amans: testimony to U.S. Senate Committee on Finance - For a copy of the testimony, visit www.deloitte.com/ap/dbriefs/bytes • Michelle Levac: interesting comments on “special measures” 5. In brief • Treaties - Signed: Taiwan / Austria - In force: India / Poland protocol • OECD: new global standard for automatic exchange of information - For a copy of the global standard, visit www.deloitte.com/ap/dbriefs/bytes • Vietnam: Circular 78 - For information: Tom McClelland (Ho Chi Minh): tmcclelland@deloitte.com • Indonesia: new President

1. OECD Model Treaty and Commentary: 2014 Update • Omitted: amendments to Commentary on Article 5 • Amendments to Commentary on meaning of “beneficial owner” - “Dependent” test vs. “related” test • For a copy of the 2014 Update, visit www.deloitte.com/ap/dbriefs/bytes 2. Cases • Allcargo Global Logistics (India) - Re-characterize transaction for transfer pricing purposes - Tribunal: delayed allotment of shares cannot be re-characterized as a loan - For information: K.R. Sekar (Bangalore): krsekar@deloitte.com 3. Australia • Carbon tax repealed • Amendment bill: thin capitalization and participation exemption for non-portfolio foreign dividends • Internal ATO report • For information: David Watkins (Sydney): dwatkins@deloitte.com.au 4. BEPS • Pascal Saint-Amans: testimony to U.S. Senate Committee on Finance - For a copy of the testimony, visit www.deloitte.com/ap/dbriefs/bytes • Michelle Levac: interesting comments on “special measures” 5. In brief • Treaties - Signed: Taiwan / Austria - In force: India / Poland protocol • OECD: new global standard for automatic exchange of information - For a copy of the global standard, visit www.deloitte.com/ap/dbriefs/bytes • Vietnam: Circular 78 - For information: Tom McClelland (Ho Chi Minh): tmcclelland@deloitte.com • Indonesia: new President

1. India’s Budget • Retrospective operation of section 9(1)(i) - No repeal of retrospectivity - Special committee • Transfer pricing: favorable changes • Real Estate Investment Trusts and Infrastructure Investment Trusts • GST • For information: K. R. Sekar (Bangalore): krsekar@deloitte.com • For our India Budget Highlights: visit www.deloitte.com/ap/dbriefs/bytes 2. China • Royalties case (Chengdu) • GAAR public consultation - For a copy of draft guidance (Chinese language): visit www.deloitte.com/ap/dbriefs/bytes • Bulletin 38 (CFC rules) - For a copy of Bulletin 38 (Chinese language): visit www.deloitte.com/ap/dbriefs/bytes • For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoyeqinli@qinlilawfirm.com 3. Cases • Three PE cases from India - Nortel (disregard separation of legal entities) - GFA Anlagenbau (“at the disposal” test and supervisory activities) - GE Energy Parts (LinkedIn profiles of employees) 4. Treaties • Signed: Korea / Hong Kong, Vietnam / Turkey, Korea / Kenya, Singapore / Seychelles • Entry into force: Sri Lanka / Bahrain 5. In brief • IRS resignations • Japan: consumption tax on inbound digital supplies - For information: Jun Takahara (Tokyo): jun.takahara@tohmatsu.co.jp

1. Cases • Kerala Vision - Retrospective amendments to definition of "royalties" - Impact on tax deduction for relevant payments - For information: K.R. Sekar (Bangalore): krsekar@deloitte.com • Antwerp Diamond Bank - Retrospective amendments to definition of "royalties" - Application to treaty definition? - For information: Rajesh Gandhi (Mumbai): rajegandhi@deloitte.com • IATA BSP - Application of "most favored nation" clause in treaty - For information: K.R. Sekar (Bangalore): krsekar@deloitte.com 2. Shanghai Pilot Free Trade Zone • 2014 "negative list" for foreign investors • Overall, a relaxation • For a copy of the 2014 "negative list" (Chinese language), visit www.deloitte.com/ap/dbriefs/bytes • For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoye@deloitte.com.cn 3. Transfer pricing: Malaysia and Vietnam • Malaysia - Questions on income tax return form - Questionnaire (called "transfer pricing awareness survey") - For a copy of the questionnaire, visit www.deloitte.com/ap/dbriefs/bytes - For information: Tan Hooi Beng (Kuala Lumpur): hooitan@deloitte.com • Vietnam - Revised transfer pricing information form - For a copy of revised form, visit www.deloitte.com/ap/dbriefs/bytes - For information: Tom McClelland (Ho Chi Minh): tmcclelland@deloitte.com 4. FATCA and CRS • FATCA (Foreign Account Tax Compliance Act) starts! - For FATCA article in World Tax Advisor, visit www.deloitte.com/ap/dbriefs/bytes • CRS (Common Reporting Standard) - Australia issues discussion paper, for comment - For a copy of discussion paper, visit www.deloitte.com/ap/dbriefs/bytes 5. In brief • Japan: Shiseido - Transfer pricing assessment • BEPS: Spain’s unilateral actions - For a copy of our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes - For information: Brian Leonard (Madrid): bleonard@deloitte.es • U.S. officials resign • Brazil: change of treaty interpretation - For a copy of our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes - For information: Marcelo Natale (Sao Paulo): mnatale@deloitte.com • China - Bulletin 38: CFC rules - Draft guidance on GAAR (comments requested by 1 August 2014) - For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoye@deloitte.com.cn • India: corporate social responsibility - For a copy of government circular, visit www.deloitte.com/ap/dbriefs/bytes - For information: K.R. Sekar (Bangalore): krsekar@deloitte.com • Indonesia: Presidential election

1. BEPS • OECD’s Committee on Fiscal Affairs • Unilateral changes: Sweden (interest) - For information: Thomas Andersson (Stockholm): thandersson@deloitte.se - To obtain a copy of our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes • EU investigations of Apple, Starbucks, and Fiat • IMF: “Spillovers in international corporate taxation” - To obtain a copy of the paper, visit BEPS Central at www.deloitte.com/ap/dbriefs/bepscentral#5 • U.S. State taxation: formulary apportionment 2. Japan • Abenomics: “third arrow” plan • Proposed corporate income tax rate cuts • For information: Jun Takahara (Tokyo): jun.takahara@tohmatsu.co.jp 3. Cases • India: Shaan Marine Services • Pune Income Tax Appellate Tribunal • Article 8 of India / Cyprus treaty • For information: K.R. Sekar (Bangalore): krsekar@deloitte.com 4. India • Budget scheduled for 10 July • Tax Administration Reform Commission (TARC) report: significant criticism - To obtain a copy of the report, visit www.deloitte.com/ap/dbriefs/bytes • Switzerland: list of Indian tax evaders • For information: K.R. Sekar (Bangalore): krsekar@deloitte.com 5. China • Guangdong: two related “indirect share transfer” cases • Circular 56: VAT incentives for film industry • For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoye@deloitte.com.cn 6. In brief • Inversions • Singapore: new liquidity requirements for banks - For information: Frederic Bertholon-Lampiris (Singapore): flampiris@deloitte.com - To obtain a copy of the consultation paper, visit www.deloitte.com/ap/dbriefs/bytes • UN: questionnaire on Article 13(4) - To obtain a copy of the questionnaire, visit www.deloitte.com/ap/dbriefs/bytes • Netherlands fiscal unity - For information: Hans van den Hurk (Eindhoven): HvandenHurk@deloitte.nl - To obtain a copy of our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes • So long, Mike Danilack • Maldives

1. BEPS • OECD Washington conference - Multilateral instrument - Intangibles - Hybrid mismatch arrangements - Digital economy - CbC reporting - Post-implementation monitoring - Timing • Criticism of BEPS project by senior U.S. Republicans • Ireland: BEPS consultation - To obtain a copy of the consultation document and our Tax Alert, visit www.deloitte.com/ap/dbriefs/bepscentral#5 - For information: Declan Butler (Dublin): debutler@deloitte.ie • UN: BEPS consultation - To obtain a copy of the responses, visit www.deloitte.com/ap/dbriefs/bepscentral#5 2. China • Jiangsu provincial SAT - To obtain a copy of the English language document, visit www.deloitte.com/ap/dbriefs/bepscentral#5 • Director Liao: deductibility of cross-border service fees - 6 tests • China / Hong Kong double tax arrangement - Use of GAAR to defeat fragmentation strategy • For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoye@deloitte.com.cn 3. Australia • Draft legislation to correct technical error: retrospective • Three rulings on double tax treaties • For information: David Watkins (Sydney): dwatkins@deloitte.com.au 4. In brief • Singapore: 10% tax rate for fund managers - For information: Rohit Shah (Singapore): roshah@deloitte.com • U.S. ratification of protocol to Japan / U.S. treaty • New Zealand consultation on 4 tax avoidance scenarios - For information: Teresa Farac (Auckland): tfarac@deloitte.co.nz - To obtain a copy of the consultation document, visit www.deloitte.com/ap/dbriefs/bytes