Summary: 1. BEPS: Action 6 (prevent treaty abuse) • 11 April 2014: OECD publishes all of the public comments received on the Action 6 discussion draft • 14 and 15 April 2014: Public consultation meeting • Review of private sector comments in regard to - Need for the "main purpose" provision - Detailed design of "limitation on benefits" (LOB) article + Intermediary entities + Derivative benefits + Base erosion test + Headquarter companies + Publicly listed companies + Collective investment vehicles (CIVs) + Dual-listed company structures + Discretionary benefits + Active conduct of a trade or business + Reconciliation with laws of trading blocs 2. BEPS: Action 1 (the digital economy) • 16 April 2014: OECD publishes all of the public comments received on the Action 1 discussion draft • 23 April 2014: Public consultation meeting • Review of private sector comments in regard to - Ring-fencing of digital economy - Source vs. residence taxation - Likely impact of all other BEPS Actions - "Wait and see" approach - Draft list of options in Chapter VII 3. Cases • Japan: Yahoo - Anti-avoidance provision regarding carryover of losses in merger - For information: Jun Takahara (Tokyo): jun.takahara@tohmatsu.co.jp • India: Viacom - Changes to domestic law definition of "process" - Changes also impact treaty definition of "royalties" - Thus, fees for satellite services are subject to royalty withholding tax - For information: Rajesh Gandhi (Mumbai): rajegandhi@deloitte.com 4. China • Three cases on beneficial ownership • SAT's submission to UN on transfer pricing aspects of intra-group services • For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoye@deloitte.com.cn 5. In brief • Treaties - Sri Lanka / Singapore - Sri Lanka / Luxembourg • OECD: International VAT guidelines • Australia: Reconstruction of transactions for TP purposes - For information: Cam Smith (Melbourne): camsmith@deloitte.com.au • Japan: possible cut in corporate income tax rate - For information: Jun Takahara (Tokyo): jun.takahara@tohmatsu.co.jp
