New Board of Directors at CORIT

CORIT has a new board of directors comprised of very capable and experienced profiles. The primary role of the board is to challenge and support the daily management in achieving the strategy of the firm. We are extremely proud that such distinguished professionals and nice people are willing to engage themselves in the future development of CORIT as a tax powerhouse.
 
Recently we got to take a joint photography after a board meeting on a sunny day in August.
Please meet our board of directors:

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Invitation to CORIT’s Celebrational International Tax Conference

“Past and future international tax developments”

Copenhagen 10 March 2022

CORIT Advisory cordially invites the tax community to an international tax conference.

As CORIT has existed for 10 years in 2022, we wish to share the celebration with friends, colleagues and clients by hosting a big celebration conference. What better way to mark this event than through a celebration of our great passion: international tax law.

The overall theme of the conference is two-fold. Firstly, we wish to address the major and unprecedented developments that have taken place within international taxation during the past decade. Secondly, the conference will address the important developments of the future.

We proudly present renowned international experts as speakers and panelists from in-house tax functions, consultancy and academia.

Registration

Everybody is welcome but limited seats are available. Accordingly, please express your interest in participating by sending an e-mail to conference@corit.dk

A participation fee of DKK 2,500 is required to prevent no show.

Venue

Charlottehaven

Hjørringgade 12C, 2100 København Ø

See the full programme here

CORIT to strengthen the transfer pricing offering with a senior hire with broad industry background


 We are very pleased to announce that David Schjelde, will join CORIT as Senior director, Transfer pricing as of 1. October 2021.
 
David will contribute with a broad experience combined with the technical skills needed to excel in transfer pricing.
 
In his past David has extensive experience in management and business strategy. From the role as CFO he has helped set up and implement corporate structures, transfer pricing strategies and procedures and IPR strategies and procedures.
 
The diverse background has given David the ability to analyse different organisations and understand their transfer pricing challenges from a practical perspective to the benefit of clients. He knows many of the issues that relate to implementation of transfer pricing procedures in accounting and elsewhere in a multinational organisation.
 
Please do not hesitate to reach out to David or any other CORIT member if you want to learn more.

We are pleased to welcome Thomas Svane Jensen to our team

We are pleased to announce that we will expand our services into the area of VAT. Our strategic emphasis has been not to offer VAT advice before we could ensure the same level of technical abilities as within other service areas. We have been able to attract leading VAT advisor Thomas Svane Jensen to the team as an associate partner. Thomas brings with him more than 20 years of experience, including as a tax partner and head of Deloittes service line and as co-founder of tax boutique firm. In his practice Thomas Svane Jensen focuses on complex VAT issues and is often engaged by leading MNEs and financial institutions as a trusted advisor with strategic impact.

Please do not hesitate to reach out to your CORIT contact in case you wish to hear more about the VAT service offering.

Høringssvar vedrørende udkast til lovforslag

CORIT Advisory har netop indsendt høringssvar vedrørende udkast til et lovforslag, der umiddelbart har til formål at lempe de administrative byrder for erhvervslivet. Det er vores vurdering, at der er brug for præciseringer førend dette formål kan realiseres. Endvidere er vi kritiske overfor skatteministeriets tolkning af Højesterets afgørelse i Tetra Pak-sagen, der tilsyneladende tages til indtægt for en udvidet fortolkning af kravet om benchmark-studier i den årlige transfer pricing dokumentation – for såvel tidligere som fremtidige indkomstår.

Du kan læse CORITs høringssvar her

The Danish Tax Tribunal rules in favour of the taxpayer in highly principled matter

The tax controversy team at CORIT Advisory has successfully represented an international company before the Danish Tax Tribunal. The case concerned the question of whether a construction permanent establishment existed or not during the construction of the Copenhagen Metro.

The case concerned several highly principled legal topics. The case was won with reference to interpretation of the applicable tax treaty, including to what extent the revised version of the commentaries to the OECD’s Model Tax Convention has legal value.

The foreign company had been a subcontractor on the building of the Copenhagen Metro and had in turn subcontracted the services performed in Denmark to sub-subcontractors. From time to time, the foreign company had two individuals who were physically in Denmark to supervise – without the actual power to instruct or sanction – the sub-subcontractors.

Based on the presence of these two employees the Danish Tax Authorities claimed that the foreign company was deemed to have a permanent establishment in Denmark due to the “Construction PE”-rule in domestic tax law and the applicable treaty.

In addition, the Danish Tax Authorities claimed that the entire contract sum should be allocated to the Danish permanent establishment.

The Danish Tax Tribunal amended the decision made the Danish Tax Authorities in accordance with our main arguments. Accordingly, the concrete double tax treaty should be interpreted in accordance with para 17 of the commentaries to the OECD’s model tax convention prepared before 2003 (where the guidelines were revised). The Danish Tax Tribunal emphasized that the interpretation of Article 5(2)(g) was amended by the revised version of the commentaries to the OECD’s model tax convention from 2003 and considered the revised commentaries – in accordance with the claim made by CORIT – as material amendments and not mere clarifications.

The Danish Tax Tribunal held that the foreign company did not have a Danish permanent establishment neither due to the company’s supervision of the construction and installation activities performed by sub-subcontractors, nor due to basic PE-rules as the company did not have office facilities at its disposal at the construction sites for the use of the supervision assignment. Based on this clear dismissal of the arguments of the Danish Tax Authorities, there was no reason to rule on the second issue of the possible profit allocation to a PE.

The case shows that unlawful claims made by the Tax Authorities can be overturned using the right arguments. In this case, the legal foundation of the Danish Tax Authorities was severely flawed and directly in contradiction with international doctrine. We are therefore, pleased to see that the Danish Tax Tribunal rules in favor of the foreign company.

New Book on Taxation and Value Creation

CORIT members Katja, Louise and Henrik have contributed with the chapter on Danish taxation in the latest book in the European Association of Tax Law Professors International Book Series. The title is “Taxation and Value Creation” and as indicated in the title, the topic is the highly debated subject on determining value creation for domestic and international tax purposes. Read more about the book here.