Dbriefs Bytes

1. BEPS: Action 6 (Preventing Treaty Abuse) 1.1 “Variable” LOB article 1.2 Special tax regimes 1.3 Future changes in a country’s domestic tax laws 1.4 PPT: 9 new examples 1.5 Other issues 1.6 Public comments • For a copy of the revised discussion draft, visit www.deloitte.com/ap/dbriefs/bytes 2. BEPS: other developments 2.1 Amazon • Change to local branch structure 2.2 Discussion Draft on TP issues 2.3 Crunch time 2.4 Multilateral instrument • For a copy of the OECD’s statement, visit www.deloitte.com/ap/dbriefs/bytes 3. Cases 3.1 India: Delta Airlines • India / U.S. treaty: Article 8 exemption 3.2 India: B4U • Contract concluding agency PE 3.3 ECJ: Verder Labtec • “Exit tax” on transfer of assets to foreign PE 3.4 U.S.: Validus Reinsurance • Presumption against extraterritoriality 4. India 4.1 Jaitley Statement 4.2 MAT / FII committee • For a copy of the public comment request, visit www.deloitte.com/ap/dbriefs/bytes 4.3 Suspension of collection of taxes during MAP under the India / UK treaty • For a copy of the Ministry of Finance’s statement, visit www.deloitte.com/ap/dbriefs/bytes For information: N.C. Hegde (Mumbai): nhegde@deloitte.com 5. China 5.1 Reduction in tariff rates • For information: Sarah Chin (Hong Kong): sachin@deloitte.com.hk 5.2 Suspension of clean-up of preferential policies • For a copy of Notice 25 (in Chinese) and our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes • For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn, and Ye Hong (Shanghai): hoye@deloitte.com.cn 6. In brief 6.1 Treaties 6.2 Taiwan: treatment of non-cash capital reductions • For a copy of our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes • For information: Cheli Liaw (Taipei): cheliliaw@deloitte.com.tw 6.3 Indonesia: thin capitalization • For information: Nazly Siregar (Jakarta): nsiregar@deloitte.com 6.4 Brazil: social contributions (CSLL, PIS & COFINS) • For a copy of our Tax Alerts, visit www.deloitte.com/ap/dbriefs/bytes • For information: Marcelo Natale (Sao Paulo): mnatale@deloitte.com

1. BEPS: Action 7 (PE Status) 1.1 Agency PE: Article 5(5) • Option B 1.2 Agency PE: Article 5(6) 1.3 Exceptions in Article 5(4): preparatory or auxiliary character • Option E • "At the disposal" test under Article 5(1) 1.4 Exceptions in Article 5(4): anti-fragmentation • Option J 1.5 Article 5(3): splitting-up of contracts • Option L 1.6 Insurance • Option N 1.7 Attribution of profits • For a copy of the revised discussion draft and our Tax Alert on this topic, visit www.deloitte.com/ap/dbriefs/bytes 2. BEPS: other developments • Bob Stack (U.S. Treasury): Action 3 • Indian case: Baker Hughes • Revised discussion draft on Action 6: scheduled today 3. China: Bulletin 16 • Possible conflict between Bulletin 16 and BEPS Action 8 • For a copy of our Tax Alert on Bulletin 16, visit www.deloitte.com/ap/dbriefs/bytes • For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn, and Ye Hong (Shanghai): hoye@deloitte.com.cn 4. In brief 4.1 Treaties • For a copy of the five draft provisions for the U.S. model treaty, and the accompanying technical explanation, visit www.deloitte.com/ap/dbriefs/bytes 4.2 New Zealand Budget • For a copy of our Budget Alert, visit www.deloitte.com/ap/dbriefs/bytes • For information: Teresa Farac (Auckland):tfarac@deloitte.co.nz 4.3 Korea • For a copy of the two documents (concerning VAT and APAs), visit www.deloitte.com/ap/dbriefs/bytes • For information: Gyung Ho Kim (Seoul): gykim@deloitte.com or Sunny Kim (Seoul): sunnykim@deloitte.com 4.4 India • For a copy of the draft rules (concerning the use of a range of comparables and multiple year data), visit www.deloitte.com/ap/dbriefs/bytes • For information: Anis Chakravarty (Mumbai)

1. BEPS: Australia: diverted profits • Multinational Anti-Avoidance Law (MAAL) • 7 conditions • For a copy of the draft legislation and explanatory material, visit www.deloitte.com/ap/dbriefs/bytes • For information: David Watkins (Sydney): dwatkins@deloitte.com.au 2. BEPS: other Australian developments • Action 1: GST on inbound digital supplies • Action 2 • Action 5 • Action 6 • Action 13 • For a copy of our Tax Alert on the Australian Budget, visit www.deloitte.com/ap/dbriefs/bytes • For information: David Watkins (Sydney): dwatkins@deloitte.com.au 3. Other BEPS developments 3.1 Actions 3 and 12: public consultation meetings 3.2 Action 11: public comments • To access the videos of the two public consultation meetings, and to obtain a copy of the Action 11 public comments, visit www.deloitte.com/ap/dbriefs/bytes 4. Cases 4.1 Swiss “total return swap” case on beneficial ownership • For information: Jacqueline Hess (Zurich): jahess@deloitte.ch 4.2 China: CFC rules case • For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn, and Ye Hong (Shanghai): hoye@deloitte.com.cn 5. India: MAT on FIIs • For a copy of the Indian tax authorities’ press release, visit www.deloitte.com/ap/dbriefs/bytes • For information: N.C. Hegde (Mumbai): nhegde@deloitte.com 6. In brief 6.1 Treaties 6.2 Thailand: IHQ regime • For a copy of our summary of the new IHQ regime, visit www.deloitte.com/ap/dbriefs/bytes • For information: Anthony Loh (Bangkok): aloh@deloitte.com 6.3 China: free trade zones • For a copy of our Tax Alerts, visit www.deloitte.com/ap/dbriefs/bytes • For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn, and Ye Hong (Shanghai): hoye@deloitte.com.cn 6.4 New Zealand: withholding tax • For a copy of the issues paper, and our Tax Alert on this topic, visit www.deloitte.com/ap/dbriefs/bytes • For information: Teresa Farac (Auckland): tfarac@deloitte.co.nz 6.5 Australia: draft legislation on earn-out rights • For a copy of our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes • For information: David Watkins (Sydney): dwatkins@deloitte.com.au

1. BEPS 1.1 Discussion draft (DD) on cost contribution arrangements (CCAs) (Action 8) • For a copy of the DD (20 pages), visit www.deloitte.com/ap/dbriefs/bytes 1.2 Actions 3, 11, & 12 • For a copy of the public comments on the Action 3 DD (912 pages), for a copy of the public comments on the Action 12 DD (275 pages), and for a copy of the Action 11 DD (82 pages), visit www.deloitte.com/ap/dbriefs/bytes 1.3 Activities scheduled for this month 1.4 UN Committee 1.5 Australia • For a copy of the discussion of the "effective tax rate" formula, visit www.deloitte.com/ap/dbriefs/bytes • For information: David Watkins (Sydney): dwatkins@deloitte.com.au 1.6 Glass houses 1.7 Italy • Taxation on virtual presence? • For information: Luca Bosco (Turin):lubosco@sts.deloitte.it 2. India 2.1 MAT on FIIs • For a copy of our Tax Alerts on this topic, visit www.deloitte.com/ap/dbriefs/bytes • For information: N.C. Hegde (Mumbai): nhegde@deloitte.com 2.2 POEM • For information: N.C. Hegde (Mumbai): nhegde@deloitte.com 3. Cases 3.1 India: Serum Institute • PANs and treaties • For information: N.C. Hegde (Mumbai): nhegde@deloitte.com 3.2 Korea: Customs duty case • For information: Jin Kon Jung (Seoul): jinkjung@deloitte.com, and Bob Fletcher (Singapore): bobfletcher@deloitte.com 3.3 Norway: Total • Secret comparables • For information: Rolf Saastad (Oslo): rsaastad@deloitte.no 4. In Brief 4.1 Treaties 4.2 Australia • For a copy of our Tax Alerts on the two batches of draft legislation, and for a copy of our Tax Alert on the Tax Commissioner's new power, visit www.deloitte.com/ap/dbriefs/bytes • For information: David Watkins (Sydney): dwatkins@deloitte.com.au 4.3 Indonesia: tax incentives • For information: Nazly Siregar (Jakarta): nsiregar@deloitte.com 4.4 Canadian Budget • For a copy of our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes • For information: Albert Baker (Toronto): abaker@deloitte.ca 4.5 European tax law changes • For information: Lars Franck (Stockholm): lfranck@deloitte.se, Luca Bosco (Turin): lubosco@sts.deloitte.it, and Soeren Reinhold Andersen (Copenhagen): soeandersen@deloitte.dk 4.6 Switzerland: foreign tax credits for PEs • For information: Jacqueline Hess (Zurich): jahess@deloitte.ch 4.7 HSBC and Standard Chartered 4.8 Finnish line • Slow down, Bill Gates

1. BEPS Action 12: Mandatory Disclosure Rules 1.1 First objective: recommendations for design of mandatory disclosure rules for each country 1.2 Second objective: adjustments for international tax schemes • For a copy of the discussion draft (82 pages), visit www.deloitte.com/bepscentral 2. BEPS: other developments 2.1 Australia: Senate inquiry • For information: David Watkins (Sydney): dwatkins@deloitte.com.au 2.2 Israel: taxation of digital services: draft guidelines • For a copy of the draft guidance (in Hebrew), visit www.deloitte.com/bepscentral • For information: Yitzchak Chikorel (Tel Aviv): Ychikorel@deloitte.co.il 2.3 Turkey: notional interest deduction • For information: Zeki Kurtcu (Istanbul): zkurtcu@deloitte.com 3. India: Minimum Alternate Tax (MAT) demands on foreign institutional investors (FIIs) • For information: N.C. Hegde (Mumbai): nhegde@DELOITTE.com 4. South Africa: Place of Effective Management (POEM) • For a copy of the draft guidance, www.deloitte.com/ap/dbriefs/bytes • For information: Louise Vosloo (Johannesburg): lvosloo@deloitte.co.za • For information on India: N.C. Hegde (Mumbai): nhegde@DELOITTE.com 5. VAT • For a copy of the updated Singapore GST guidance on funds, www.deloitte.com/ap/dbriefs/bytes • For information on: – The UK: Donna Huggard (London): dohuggard@deloitte.co.uk – The Netherlands: Rogier Vanhorick (Rotterdam): RVanhorick@deloitte.nl – Belgium: Piet Vandendriessche (Brussels): pvandendriessche@deloitte.com – Luxembourg: Cedric Tussiot (Luxembourg): ctussiot@deloitte.lu – The EU MOSS: Rogier Vanhorick (Rotterdam): RVanhorick@deloitte.nl – Singapore: Richard Mackender (Singapore): rimackender@deloitte.com 6. In brief 6.1 Australia: Managed Investment Trusts • For a copy of our Tax Alert, www.deloitte.com/ap/dbriefs/bytes • For information: David Watkins (Sydney): dwatkins@deloitte.com.au 6.2 India: Income Computation and Disclosure Standards • For a copy of our Tax Alert, www.deloitte.com/ap/dbriefs/bytes • For information: N. C. Hegde (Mumbai): nhegde@DELOITTE.com 6.3 Budgets: Mauritius and Namibia • For a copy of our Tax Alerts on the two Budgets, www.deloitte.com/ap/dbriefs/bytes for Mauritius, and www.deloitte.com/ap/dbriefs/bytes for Namibia • For information on Mauritius: Twaleb Butonkee (Ebène): tbutonkee@DELOITTE.COM , and on Namibia: Gerda Brand (Windhoek): gbrand@deloitte.co.za 6.4 Denmark: crowd funding • For a copy of the guidance (in Danish), www.deloitte.com/ap/dbriefs/bytes • For information: Soeren Reinhold Andersen (Copenhagen): soeandersen@deloitte.dk

1. BEPS Action 12: Mandatory Disclosure Rules - For a copy of the Action 12 discussion draft, visit www.deloitte.com/bepscentral 2. BEPS Action 3: Strengthening CFC Rules - Interaction with EU law - Definition of CFCs: non-corporate entities - Hybrid mismatch arrangements: U.S. check the box rules - Low-tax threshold - Tax rate to apply to CFC income - "Primary rule" / "secondary rule" framework - For a copy of the Action 3 discussion draft, visit www.deloitte.com/bepscentral 3. BEPS: other developments 3.1 BEPS Action 5: harmful tax practices 3.2 EU and OECD: in love 3.3 BEPS Actions 8-10: transfer pricing 3.4 BEPS Action 14: dispute resolution 3.5 UK - For a copy of the two reports from the Public Accounts Committee, the press release from the UK tax authorities in regard to the E6 project, and the update guidance on the diverted profits tax, visit www.deloitte.com/bepscentral - For information: Bill Dodwell (London): bdodwell@deloitte.co.uk 3.6 Australia - To follow the proceedings of the Senate inquiry, visit www.deloitte.com/bepscentral - For information: David Watkins (Sydney): dwatkins@deloitte.com.au 3.7 China - For a copy of the SAT's Q&A, visit www.deloitte.com/bepscentral - For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoyeqinli@qinlilawfirm.com 4. India 4.1 APA rollbacks - For a copy of the government announcement, visit www.deloitte.com/ap/dbriefs/bytes - For information: Anis Chakravarty (Mumbai): anchakravarty@deloitte.com 4.2 Section 9(1)(i): dividends - For a copy of the statement issued by the Central Board of Direct Taxes, visit www.deloitte.com/ap/dbriefs/bytes - For information: N.C. Hegde (Mumbai): nhegde@DELOITTE.com 4.3 Cairn 5. In brief 5.1 Treaties - China / Hong Kong protocol signed - China / Indonesia protocol signed - Korea / Nigeria treaty enters into force - India / Czechoslovakia treaty continues to apply to India and Slovakia 5.2 Australia - For a copy of the Treasury's discussion paper on possible tax reforms, or a copy of the Board of Taxation's report on debt and equity tax rules, visit www.deloitte.com/ap/dbriefs/bytes - For information: David Watkins (Sydney): dwatkins@deloitte.com.au 5.3 Malaysia - For a copy of the guidelines on the new incentives, visit www.deloitte.com/ap/dbriefs/bytes - For information: Tan Hooi Beng (Kuala Lumpur): hooitan@deloitte.com

1. BEPS: VAT on inbound digital supplies • Change to “destination principle” by three countries – South Africa (effective 1 June 2014) – Korea (effective 1 July 2015) – Japan (effective 1 October 2015) • For information: Suzanne Van der Merwe (Johannesburg): suzvandermerwe@deloitte.co.za Young Pil Kim (Seoul): youngpkim@deloitte.com Jun Takahara (Tokyo): jun.takahara@tohmatsu.co.jp 2. BEPS: Transfer Pricing public consultation 2.1 Revisions to chapter I of the Transfer Pricing Guidelines • Identification of the actual transaction • Risk • Non-recognition • Special measures 2.2 Profit splits in the context of global value chains 2.3 Low value-adding intra-group services 2.4 Cross-border commodity transactions For information: John Henshall (London): jhenshall@deloitte.co.uk Alan Shapiro (Tokyo): alan.shapiro@tohmatsu.co.jp Philippe Penelle (Los Angeles): ppenelle@deloitte.com 3. Other BEPS developments 3.1 UK: diverted profits tax • For a copy of the diverted profits tax legislation, and our Tax Alert on the same topic, visit www.deloitte.com/bepscentral • For information: Bill Dodwell (London): bdodwell@deloitte.co.uk Ben Pickford (Singapore): bpickford@DELOITTE.com David Fallon (Hong Kong): dafallon@deloitte.com 3.2 UK PAC: Westminster grilling • For a copy of the transcript of the hearing, visit www.deloitte.com/bepscentral 3.3 BEPS-compliant tax incentives • For information: Carlo Hassan (Milan): cahassan@sts.deloitte.it Zeki Kurtcu (Istanbul): zkurtcu@deloitte.com 3.4 Action 5: EU State Aid • For information: Maria Trakadi (Athens): mtrakadi@deloitte.gr 4. China: Bulletin 16 • For a copy of Bulletin 16 (in Chinese language), 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 5.1 Hong Kong: offshore funds • For a copy of the bill, visit www.deloitte.com/ap/dbriefs/bytes, and our Tax Alert on the same topic, visit www.deloitte.com/ap/dbriefs/bytes • For information: Anthony Lau (Hong Kong): antlau@deloitte.com.hk 5.2 South Africa: “reportable transactions” • For a copy of the new rules, visit www.deloitte.com/ap/dbriefs/bytes • For information: Louise Vosloo (Johannesburg): lvosloo@deloitte.co.za

1. India: Sony case ("excessive" AMP expenses) • Delhi High Court • Rejection of "bright line test" • For a copy of the case (142 pages), visit www.deloitte.com/ap/dbriefs/bytes • For information: Anis Chakravarty (Mumbai): anchakravarty@deloitte.com 2. Canada: Skechers case (customs duty) • Federal Court of Appeal • Inclusion of R&D expenses in "value for customs" • For a copy of the case, visit www.deloitte.com/ap/dbriefs/bytes • For information: Daniel Kiselbach (Vancouver): dkiselbach@deloittetaxlaw.ca 3. India 3.1 APA rollbacks • Detailed rules and procedures • Filing deadline: 31 March 2015! • For a copy of the new rules, visit www.deloitte.com/ap/dbriefs/bytes, and our Tax Alert on this topic, visit www.deloitte.com/ap/dbriefs/bytes • For information: Anis Chakravarty (Mumbai): anchakravarty@deloitte.com 3.2 Cairn • U.S.$3.2 billion assessment issued to Cairn India, for retrospective failure to deduct withholding tax in regard to an indirect share transfer • For information: N.C. Hegde (Mumbai): nhegde@DELOITTE.com 4. BEPS 4.1 Action 14: dispute resolution 4.2 Action 5: harmful tax practices • For a copy of the European Commission's "tax transparency package" (numerous documents), visit visit www.deloitte.com/bepscentral 4.3 BEPS: other developments • OECD public consultation meeting on transfer pricing discussion drafts • Australia: public disclosure of tax information – For information: David Watkins (Sydney): dwatkins@deloitte.com.au • New Zealand: tax policy work program • For a copy of the work program, visit www.deloitte.com/ap/dbriefs/bytes, and our Tax Alert on this topic, visit www.deloitte.com/ap/dbriefs/bytes – For information: Teresa Farac (Auckland): tfarac@deloitte.co.nz 5. In brief 5.1 UK Budget • For a copy of our Tax Alert (3 pages), visit www.deloitte.com/ap/dbriefs/bytes, and our detailed analysis (49 pages), visit www.deloitte.com/ap/dbriefs/bytes • For information: Bill Dodwell (London): bdodwell@deloitte.co.uk Ben Pickford (Singapore): bpickford@deloitte.com David Fallon (Hong Kong): dafallon@deloitte.com 5.2 Russia: thin cap and interest rates • For information: Elena Solovyova (Moscow): esolovyova@Deloitte.ru 5.3 Australia: investment manager regime • For a copy of our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes • For information: David Watkins (Sydney): dwatkins@deloitte.com.au 5.4 China: SAT guidance in regard to western region 15% tax rate • For a copy of the guidance (Chinese language), visit www.deloitte.com/ap/dbriefs/bytes • For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoyeqinli@qinlilawfirm.com

1. India Budget • GAAR deferred • Amendments to section 9(1)(i) • Definition of tax residence for companies • Other important changes • For information: N.C. Hegde (Mumbai): nhegde@DELOITTE.com • For a copy of our detailed analysis of the Budget and for a copy of Cairn Energy’s press release, visit www.deloitte.com/ap/dbriefs/bytes 2.BEPS 2.1 Comments by U.S. officials • Actions 3, 4, 8-10, and 13 2.2 EU tax rulings committee • For a copy of the press releases issued by the committee, visit www.deloitte.com/bepscentral 2.3 UK PAC: HSBC • For a copy of the transcript of the hearing, visit www.deloitte.com/bepscentral 3. India • India / U.S. MAP process • TARC reports – For a copy of the reports (1,526 pages), visit www.deloitte.com/ap/dbriefs/bytes • Justices Sikri and Nariman appointed to specialist tax bench of Supreme Court • For information: N. C. Hegde (Mumbai): nhegde@DELOITTE.com 4. China 4.1 QFIIs and RQFIIs: tax on share sales before 17 November 2014 4.2 Shanghai FTZ: two changes • For a copy of our Tax Alerts, visit www.deloitte.com/ap/dbriefs/bytes For information on 4.1 and 4.2: Vicky Wang (Shanghai): vicwang@deloitte.com.cn or Ye Hong (Shanghai): hoyeqinli@qinlilawfirm.com 5. Transfer Pricing 5.1 South Africa: secondary adjustments • For information: Louise Vosloo (Johannesburg): lvosloo@deloitte.co.za 5.2 Australia: practice statement on reconstructions • For a copy of the practice statement, and our Tax Alert on this topic, visit www.deloitte.com/ap/dbriefs/bytes • For information: David Watkins (Sydney): dwatkins@deloitte.com.au 6. In brief 6.1 Treaties: U.S. model treaty 6.2 Ecuador: limits deductions for related party transactions 6.3 New Zealand: amendment bill • For a copy of our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes • For information: Teresa Farac (Auckland): tfarac@deloitte.co.nz 6.4 Hong Kong: IRD statement on Nice Cheer case • For a copy of the IRD statement, visit www.deloitte.com/ap/dbriefs/bytes • For information: Anthony Lau (Hong Kong): antlau@deloitte.com.hk

1. BEPS 1.1 Action 1: digital economy • 18 December 2014 discussion drafts (DDs) on VAT: for a copy of the public comments, visit www.deloitte.com/bepscentral • Proposed changes to Japan’s consumption tax: for a copy of the proposed changes and explanatory material (Japanese language), visit www.deloitte.com/bepscentral • For information: Jun Takahara (Tokyo): jun.takahara@tohmatsu.co.jp 1.2 Action 4: interest deductions • To access the video of the public consultation meeting, visit www.deloitte.com/bepscentral 1.3 Action 5: harmful tax practices • For a copy of the European Commission’s press release on the “tax transparency package”, visit www.deloitte.com/bepscentral 1.4 Actions 8-10: transfer pricing 1.5 Action 13: transfer pricing documentation • For a copy of the “Aloe Vera of America” case, visit www.deloitte.com/bepscentral 1.6 Action 14: dispute resolution mechanisms 2. Cases 2.1 India: Flag Telecom • Sale of telecom capacity • For information: N.C. Hegde (Mumbai): nhegde@DELOITTE.com 2.2 India: GVK • Success fee for consulting services related to debt finance • For information: Enwright Desales (Bangalore): ejdesales@deloitte.com 3. Budgets 3.1 Singapore • For a copy of our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes • For information: Daniel Ho (Singapore): danho@deloitte.com 3.2 Hong Kong • For a copy of our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes • For information: Anthony Lau (Hong Kong): antlau@deloitte.com.hk 3.3 South Africa • For a copy of our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes • For information: Nazrien Kader (Johannesburg): nkader@deloitte.co.za 3.4 India • Budget to be presented on 28 February 2015 • For information: N. C. Hegde (Mumbai): nhegde@DELOITTE.com 4. In brief 4.1 Treaties • India / Croatia • Japan / Qatar 4.2 Canada: TP guidance • For a copy of TPM-15, visit www.deloitte.com/ap/dbriefs/bytes, and TPM-16, visit www.deloitte.com/ap/dbriefs/bytes • For information: Markus Navikenas (Alberta): mnavikenas@deloitte.ca 4.3 U.S. • For a copy of the IRS memorandum, visit www.deloitte.com/ap/dbriefs/bytes • For information: Tom Driscoll (Chicago): thosdriscoll@DELOITTE.com 4.4 UN Committee report • For a copy of the report, visit www.deloitte.com/ap/dbriefs/bytes 4.5 South Africa • For a copy of the draft guidance, visit www.deloitte.com/ap/dbriefs/bytes • For information: Nazrien Kader (Johannesburg): nkader@deloitte.co.za 4.6 New Zealand • For a copy of the “issues paper”, visit www.deloitte.com/ap/dbriefs/bytes, and our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes • For information: Teresa Farac (Auckland): tfarac@deloitte.co.nz 4.7 China • “Top 10 tax events in 2014” 4.8 Boris Johnson

1. BEPS Action 5: harmful tax practices - OECD issues "Action 5: Agreement on Modified Nexus Approach for IP Regimes" and explanatory paper - 30% up-lift and progressive close-down of existing regimes - Qualifying IP assets - For a copy of the two OECD documents, visit www.deloitte.com/bepscentral 2. BEPS Action 13: CbC reporting - OECD issues "Action 13: Guidance on the Implementation of Transfer Pricing Documentation and Country-by-Country Reporting" - Timing - Which MNE groups will be covered - Confidentiality, consistency, and "appropriate use" conditions - Transmission methods - For a copy of the OECD document, and our Tax Alert on this topic, visit www.deloitte.com/bepscentral 3. BEPS Action 15: multilateral instrument - OECD issues agreed mandate for negotiation of the multilateral instrument - For a copy of the mandate and the explanatory notes, visit www.deloitte.com/bepscentral 4. Other BEPS stories 4.1 Public comments - OECD releases public comments on four discussion drafts issued in December 2014 - 2,630 pages! - To read the comments, visit www.deloitte.com/bepscentral 4.2 OECD webcast - To watch a replay of the webcast, visit www.deloitte.com/bepscentral 4.3 G20 meeting - 62 countries participating directly in the BEPS project, 12 from Asia Pacific - For a copy of the OECD report, visit www.deloitte.com/bepscentral 4.4 UK PAC - For a copy of the latest report from the Public Accounts Committee, visit www.deloitte.com/bepscentral 4.5 EU: Amazon and Luxembourg - Public comments requested 5. China: indirect transfers - Bulletin 7 is issued - Major changes to China's taxation of indirect transfers - Broadening of scope - Safe harbors, including qualifying group reorganizations - For a copy of Bulletin 7 (in original Chinese language, and in our unofficial English translation), or a copy of our Tax Alert on this topic, visit www.deloitte.com/ap/dbriefs/bytes - For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn or Ye Hong (Shanghai): hoyeqinli@qinlilawfirm.com 6. Indonesia 6.1 APAs - Regulation 7 on Indonesia's APA program - For a copy of Regulation 7 (in original Bahasa Indonesia language), or a copy of our Tax Alert on this topic, visit www.deloitte.com/ap/dbriefs/bytes - For information: Carlo Navarro (Jakarta): canavarro@deloitte.com 6.2 VAT on inbound digital supplies - For information: Turmanto (Jakarta): tturmanto@deloitte.com 6.3 Tax appeals - For information: Nazly Siregar (Jakarta): nsiregar@deloitte.com 7. In brief 7.1 Malaysia - For a copy of the guidance on Malaysia's MAP procedures, visit www.deloitte.com/ap/dbriefs/bytes - For information: Tan Hooi Beng (Kuala Lumpur): hooitan@deloitte.com

1. Netherlands case: fiscal unity / non-discrimination article • Held that provision equivalent to Article 24(5) of OECD model treaty does not allow formation of fiscal unity • For a copy of our Tax Newsflash on this case, visit www.deloitte.com/ap/dbriefs/bytes • For information: Willem Blom (Rotterdam): WBlom@deloitte.nl 2. India case: interaction between Article 7 and Article 12 • Despite the fact that there was no PE, tribunal applied Article 7 (and thus, exemption), instead of Article 12 (and thus, gross basis taxation) • For information: N.C. Hegde (Mumbai): nhegde@DELOITTE.com 3. Russia case: disregarding separate legal status of subsidiary • Russian company treated as PE of Luxembourg group parent company • For information: Elena Solovyova (Moscow): esolovyova@Deloitte.ru 4. BEPS 4.1 OECD • Arm twisting (CbC reporting and Bermudan cash box) and hand wringing (mandatory binding arbitration) 4.2 U.S. comments • Allocation of risk in 19 December 2014 discussion draft 4.3 EU: Belgium’s “excess profits” tax rulings • For a copy of the European Commission’s press release, statement by Commissioner Vestager, and our Tax Newsflash, visit www.deloitte.com/bepscentral • For information: Pascal Van Hove (Brussels): pvanhove@deloitte.com 4.4 Australia: Senate enquiry • To obtain a copy of the public submissions, visit www.deloitte.com/bepscentral • For information: David Watkins (Sydney): dwatkins@deloitte.com.au 4.5 Denmark: unilateral change • Domestic law “principal purpose test” • For information: Soeren Reinhold Andersen (Copenhagen): soeandersen@deloitte.dk or Niels Josephsen (Copenhagen): njosephsen@deloitte.dk 5. Hong Kong 5.1 Certificates of residence • To obtain a copy of the revised application forms: visit www.deloitte.com/ap/dbriefs/bytes and here, guidance notes from Hong Kong tax authorities: visit www.deloitte.com/ap/dbriefs/bytes, and our Tax Newsflash: visit www.deloitte.com/ap/dbriefs/bytes • For information: Davy Yun (Hong Kong): dyun@deloitte.com.hk 5.2 Freest economy for 21 years 6. In brief 6.1 Taiwan: interest deductions • For information: Cheli Liaw (Taipei): cheliliaw@deloitte.com.tw 6.2 India: Vodafone case (subscription for shares at undervalue) • For information: Anis Chakravarty (Mumbai): anchakravarty@deloitte.com 6.3 Indonesia • Multilateral Convention on Mutual Administrative Assistance in Tax Matters: ratified by Indonesia • Regulation on APAs • For information: Nazly Siregar (Jakarta): nsiregar@deloitte.com 6.4 EU: financial transactions tax • Back on the agenda 6.5 U.S.: President Obama’s Budget • To obtain a copy of our Tax Newsletter, visit www.deloitte.com/ap/dbriefs/bytes

1. BEPS: OECD 1.1 Action 7: prevent the artificial avoidance of PE status • Public consultation meeting: 21 January 2015 • To watch the video of the meeting, visit www.deloitte.com/bepscentral 1.2 Action 6: prevent treaty abuse • Public consultation meeting: 22 January 2015 • To watch the video of the meeting, visit www.deloitte.com/bepscentral 1.3 Action 14: make dispute resolution mechanisms more effective • Public consultation meeting: 23 January 2015 • To watch the video of the meeting, visit www.deloitte.com/bepscentral 1.4 Actions 8-10: discussion draft on "low value-adding intra-group services" • To obtain a copy of all the public comments, visit www.deloitte.com/bepscentral 2. Other BEPS stories 2.1 EU: Amazon ruling • To obtain a copy of the European Commission's letter to the Luxembourg government, visit www.deloitte.com/bepscentral 2.2 Spain: CbC reporting • For information: Brian Leonard (Madrid): bleonard@deloitte.es 2.3 Australia: ATO review of 200 MNCs • For information: David Watkins (Sydney): dwatkins@deloitte.com.au 3. China 3.1 GAAR • For a copy of the administrative guidance on GAAR (original Chinese language and our unofficial English translation): visit www.deloitte.com/ap/dbriefs/bytes, our Tax Alert (English language): visit www.deloitte.com/ap/dbriefs/bytes, and the transcript of interview of SAT's Ms Wang Xiao Yue (Chinese language): visit www.deloitte.com/ap/dbriefs/bytes 3.2 Advance tax rulings 3.3 Shanghai Pilot FTZ 3.4 Draft Foreign Investment Law • For a copy of our summary of the draft Law: visit www.deloitte.com/ap/dbriefs/bytes • For information: Nora Fu (Shanghai): nfu@qinlilawfirm.com 3.5 Indirect share transfers For information on 3.1, 3.2, 3.3, and 3.5: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoyeqinli@qinlilawfirm.com 4. Cases 4.1 India: ITC Infotech • Transfer pricing: contractual allocation of risk vs. conduct 4.2 India: Goldstar Jewellery • Transfer pricing: accounts receivable outstanding for long period 4.3 India: Vodafone • Transfer pricing: subscription for shares at undervalue • Government announces it will not appeal 5. In brief 5.1 Treaties • Singapore / France and Singapore / Uruguay signed 5.2 India • Break-through on India / U.S. MAP dispute • For a copy of our Tax Alert: visit www.deloitte.com/ap/dbriefs/bytes • For information: Anis Chakravarty (Mumbai): anchakravarty@deloitte.com 5.3 Taiwan • Draft amendment to transfer pricing rules (including business restructures) - For a copy of the draft amendment: visit www.deloitte.com/ap/dbriefs/bytes • For information: Mike Chang (Taipei): mikechang@deloitte.com.tw 5.4 Hong Kong • Bill to extend profits tax exemption to private equity funds • For information: Patrick Yip (Hong Kong): patyip@deloitte.com.hk

Countdown of the top 10 international tax stories of 2014: 10: "Behavior influencing" taxes • Korea: 10% tax on companies which fail to spend cash • UK: diverted profits tax 9: OECD • 2014 Model Treaty and Commentary • Global Forum on Transparency and Exchange of Information • Common Reporting Standard • Plus BEPS! 8: India • Year in two halves (pre and post-election) • Committees, tax authorities, legislation 7: China • Outbound payments • Tax audits • BEPS • SAT guidance • Other developments 6: FATCA / CRS • FATCA starts • CRS is agreed 5: Treaties • China / Germany • China / Russia • Korea / Hong Kong • Entry into force • China / Taiwan? 4: VAT • OECD guidelines • Inbound digital supplies • Malaysia • Japan 3: Cases • Permanent establishment • Treaties and hybrid entities • Use of domestic law to prevent treaty shopping • Other cases 2: Inversions • Pre and post Notice 2014-52 1: BEPS • 15 Actions: status at year-end • Developing countries • Unilateral actions • EU • BEPS movement, not BEPS project

1. Cases 1.1 Watson Pharma • Mumbai Income Tax Appellate Tribunal • Location savings • For information: Anis Chakravarty (Mumbai): anchakravarty@deloitte.com • For a copy of the case, visit www.deloitte.com/ap/dbriefs/bytes 1.2 Two cases on “broadcasting rights” and “royalties” • Delhi Race Club: Delhi High Court • Seven Network Limited: Federal Court of Australia • For information: N.C. Hegde (Mumbai): nhegde@deloitte.com David Watkins (Sydney): dwatkins@deloitte.com.au • For a copy of the Delhi Race Club case, visit www.deloitte.com/ap/dbriefs/bytes • For a copy of the Seven Network Limited case, visit www.deloitte.com/ap/dbriefs/bytes 1.3 Aviation Fuel Supply Company • Hong Kong Court of Final Appeal • Capital receipt on termination of contract • For information: Davy Yun (Hong Kong): dyun@deloitte.com.hk • For a copy of the case, visit www.deloitte.com/ap/dbriefs/bytes • For a copy of our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes 2. BEPS 2.1 Public comments on Actions 6 and 7 • 1,589 pages! • For a copy of the comments, visit www.deloitte.com/bepscentral 2.2 UK diverted profits tax • For information: Bill Dodwell (London): bdodwell@deloitte.co.uk • Westminster Hall debate transcript • Slides used by tax authorities at Open Day meeting • Slides used by Philip Baker, QC • For a copy of the above materials, visit www.deloitte.com/bepscentral 3. In brief 3.1 Korea • Large customs duty settlement • For information: Gyung Ho Kim (Seoul): gykim@deloitte.com 3.2 China • Circulars 109 and 116 • For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoye@deloitte.com.cn • For a copy of our Tax Alert, visit www.deloitte.com/ap/dbriefs/bytes 3.3 Indonesia • Minister’s statements regarding tax holidays • For information: Nazly Siregar (Jakarta): nsiregar@deloitte.com 3.4 Thailand • Approval of international headquarters (IHQ) and international trading center (ITC) incentives • For information: Wanna Suteerapornchai (Bangkok): wsuteerapornchai@deloitte.com • For a copy of our World Tax Advisor, visit www.deloitte.com/ap/dbriefs/bytes