Summary: 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
