The Indian Government has announced that it will be walking back the unpopular retroactive tax provisions introduced to the tax code as part of a tax dispute with telecoms giant, Vodafone.
The dispute involving Vodafone related to the UK firm’s acquisition of Hutchison Essar and the Indian Government’s claims that the transaction should be subject to capital gains tax. Vodafone has consistently maintained that it is not liable for a USD2.2bn bill in back taxes and penalties relating to the deal.
In January 2012, the Indian Supreme Court ruled in favor of Vodafone stating that transfers of non-resident companies made by non-residents should not attract Indian capital gains tax. The Government at the time, however, defied the ruling by amending Section 9 of the Income Tax Act 1961 with retroactive effect from 1961, the year in which India’s current income tax legislation … Read More »
On August 4, 2021, the European Commission released a proposal for a Council Implementing Decision to allow Germany to introduce a reverse charge for emissions allowances.
In March, Germany requested authorization to derogate from Article 193 of the VAT Directive regarding the person liable for payment of VAT in case of transfer of emission allowances traded in the national system under the Fuel Emission Allowance Trading Act (BEHG).
Under the BEHG, Germany has created a legal framework for a national emissions trading scheme for the pricing of greenhouse gas emissions from fossil fuels, which do not fall under the EU Emissions Trading Scheme, from 2021 onwards. The Act is intended to help Germany achieve its national climate targets, including the long-term target of net-zero greenhouse gas emissions by 2050, and the reduction targets under the EU Climate Regulation, as well as improving … Read More »
In the UK, the tax authorities have been trying to get a handle on the taxation of the so-called “gig economy”, with HMRC having launched a new consultation on the implementation of the Organisation for Economic Co-operation and Development (OECD) Model Reporting Rules for Digital Platforms, which will require digital platforms to newly report a wide array of transaction data relevant for tax purposes.
The Model Rules for Reporting by Platform Operators with respect to Sellers in the Sharing and Gig Economy (MRDP) would require digital platforms to collect information on the income realized by those offering accommodation, transport, and personal services through platforms and to report that information to tax authorities. The platforms will also be required to provide a copy of the information to the seller, which will help the seller declare the correct amounts for tax purposes.
Countries are … Read More »