CORIT staff member Peter Koerver Schmidt has authored a new working paper discussing why and how multinational enterprises should prepare and apply a responsible tax policy. In the first part of the paper, it is argued that multinational enterprises (MNEs) may benefit from including considerations of corporate responsibility when determining their tax planning behavior. The conclusion mainly rests on the fact that increased awareness of responsible tax behavior may shed useful light on the damaging effects aggressive tax planning may have on an MNE’s reputation. In addition, an increased focus on responsible tax behavior may assist the MNE’s management in maximizing shareholder welfare – and not only shareholder value. Against this background, the second part of the paper is devoted to an analysis of how MNEs actually can implement and design their own tax policy/strategy in a responsible manner. Finally, in the third part of the paper, the author tries to take stock of the current endeavors of Danish-based MNEs with respect to implementation of responsible tax policies. In this context, and based on a review of publicly available information gathered from MNEs forming part of the OMX Copenhagen 25 Index, it is concluded that the largest Danish-based MNEs currently show solid appetite for implementing policies on responsible tax and that some of these policies actually make up good examples of how to design public tax policies/strategies. Read the article here.
CORIT members Jakob Bundgaard and Louise Fjord Kjærsgaard have published an article in Tax Notes International titled: Taxable Presence and Highly Digitalized Business Models. In the Article, the authors discuss how the digitalization of the economy is affecting nexus rules and analyze international tax treaty law on permanent establishment and the taxable presence of digital businesses.
Read the artcle here.
We are pleased and proud to announce that Jakob Bundgaard has accepted the appointment as Tribute Expert under the Tribute Foundation where he shall work with distinguished colleagues from all over the world to solve international tax disputes. See the announcement here
Tribute is an expertise center for international tax dispute resolution. Tribute aims to promote and support effective approaches for alternative, out-of-court resolution of international tax disputes. These approaches include the use of binding arbitration as well as non-binding supplementary forms of dispute resolution: conciliation, mediation, facilitation, or technical advice. Tribute has a global coverage, it is neutral and independent, and not for profit. Tribute is supported by leading international tax experts, professionals, academics, and government officials, from all parts of the world. Tribute offers a platform to all parties, in whatever capacity or of whatever background, that are involved with or take an interest in international tax dispute resolution. Just as much as disputes are a shared concern, effective dispute resolution is a shared concern, and a shared benefit, as well. Tribute offers a wide range of individually tailored services for all parties involved in processes of dispute resolution: authorities, courts, tribunals, arbitration institutes, or practitioners. These services include, for example, advice on the right choice of type of dispute resolution for a particular dispute, and its proper use; advice on the design of required legal instruments, like clauses, regulations, agreements, or procedures; assistance with facilities necessary for putting processes of dispute resolution in practice, in particular selection of arbitrators, mediators or facilitators, or technical advisers, and case administration; and, finally, practical training in how to effectively participate in resolution processes. You can read more about Tribute and its activities here
Last week the OECD released its first official Transfer Pricing Guidelines on Financial Transactions. This presentation highlights, what we consider to be, the most important contributions of the guidelines.
Read the presentation here
CORIT member professor Peter Koerver Schmidt presented his view at the public hearing on CFC taxation in the Danish Parliament together with representatives from industry and the European Commission. Please find his slides here.
We are pleased to present this year’s issue of the CORIT Point of View.
CORIT members Louise Fjord Kjærsgaard, Michael Tell and Henrik Guldhammer Nielsen have published an article providing a status on the risk of discretionary assessment in transfer pricing disputes from a Danish tax perspective.
The article is available here
In the 2020 edition of World Tax by International Tax Review, CORIT is ranked as a Tier 1 firm. CORIT is ranked Tier 1 as the only boutique firm and above all (but one) of the big full service law firms. Being a newcomer in the market and a tax only firm for us this is an important milestone and significant achievement.
We are thankful and honored that to be recognized as one of the elite tax firms in Denmark and will allow ourselves to celebrate and be proud of this milestone.
We would also like to express our gratitude to our clients and business partners. We promise to keep up the efforts and strive to improve.
The full ranking can be seen here
The Danish Association on EU Tax Law has organized a membership meeting focusing on the new draft Bill (i) implementing new Danish CFC rules (ATAD), (ii) adjusting the definition of a permanent establishment (OECD BEPS), (iii) allowing deductions for final losses (ECJ case law) and (iv) amending the rules for discretionary assessments in transfer pricing cases.
Peter Koerver Schmidt and Michael Tell will both present and provide their thoughts in relation to the proposed CFC rules and the implementation of the final loss doctrine into Danish tax law. The meeting is Wednesday, October 9, 2019 at 16.00 – 18.00.
Michael Tell was the Danish national reporter for the 2018 EATLP Congress in Zürich on the topic Tax Transparency.
Read the Danish national report here