Dear reader,
We are pleased to present the first issue of “The CORIT Point of View”.
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Enjoy,
New article on CFC taxation
Peter Koerver Schmidt has published an article on additional protection rules’ implication for Danish CFC taxation.
The article analyses whether specific anti-avoidance provisions under Danish law are applicable when assessing the conditions for Danish taxation of controlled foreign companies (CFC-taxation) and when calculating the income to be attributed to the Danish parent company.
In this regard the decision made by the Danish Tax Assessment Council in SKM2014.577.SR is discussed.
Read the article here.
Review on recently published book
Peter Koerver Schmidt’s PhD thesis ”Dansk CFC-beskatning – i et internationalt og komparativt perspektiv” has been reviewed by Professor Jane Bolander in Nordic Tax Review.
The Professor finds the book “highly relevant with practical input”.
Read the review here.
New Article on tax losses from hydrocarbon activities
Katja Dyppel Weber has published an article on the Danish tax treatment of tax losses from hydrocarbon activities in the North Sea.
The article explains the tax treatment of losses subject to the transitional rules in the Danish hydrocarbon tax act § 27 C. Further, the interplay between the hydrocarbon tax loss rules and the general tax law is discussed.
Further, the interplay between the hydrocarbon tax act and the general corporate income tax rules concerning tax losses is discussed.
Read the article here.
New article on The Nordea Bank Denmark Case (C-48/13)
Anders Nørgaard Laursen has published an article on the Nordea Bank Denmark Case (C-48/13).
The article analyzes the implications of the case and finds that reincorporation of previously deducted losses from a permanent establishment situated in another member state is allowed when certain requirements are fulfilled.
The case also questions whether the Danish international group tax rules are consistent with EU law.
Read the article here.
New Article on Corporate Taxation
Peter Koerver Schmidt has published the article “Corporate Taxation and the International Challenge” discussing the Danish anti-avoidance rules.
The article concludes that the these anti-avoidance provisions often suffer from being quite complex, very broad in scope and open to criticism from an EU law perspective.
Read the article here.
New article on exit taxation and the deferment balance
Anders Nørgaard Laursen has written an article on exit taxation and the deferment balance analyzing whether interest expenses are deductible according to bill no. 170 of 26/2 2014. The author concludes that there is no legal authority to deduct interest expenses from a deferment balance.
Read the article here.
New article summing up regulatory changes
Anders Nørgaard Laursen has published an article on the most considerable regulatory changes in Danish international tax law from August 2013 to July 2014.
The article deals with exit taxation on companies, restricted withholding taxation, administrative guidelines on hiring-out of labour, taking up residence for individuals, and the calculation of personal income tax allowance relaxing taxation on foreign income.
Finally, the article deals with case C-48/13 Nordea Bank Danmark, and the 2014 update of the OECD model tax convention.
Read the article here.
New article on share loan agreements
Katja Dyppel Weber has published an article on Tax Treaty Treatment of Dividend Related Payments under Share Loan Agreements.
The article analyses the qualification and allocation challenges related to dividend payments under share loan agreements. The analysis includes a number of illustrating scenarios pointing out qualification and allocation conflicts for tax treaty purposes in cross-border situations.
Read the article here.
New article on tainted income under the Danish CFC-regime
Peter Koerver Schmidt has published an article on “The definition of tainted income under the Danish CFC-regime and the possibility of obtaining exemption – an analysis of two new administrative decisions”.
The article analyses two new administrative decisions concerning the Danish CFC rules applicable to companies. The first decision – issued by the Danish Tax Assessment Council – deals with the definition of tainted income under the CFC rules with respect to income originating from intellectual property rights. The second decision – issued by the Danish Tax Tribunal – concerns the conditions to be fulfilled in order to obtain exemption from the Danish CFC-rules. In this regard the article discusses the relatively controversial condition stating that the main part of the subsidiary’s income shall originate from business with clients in the country where the subsidiary is resident.
Read the article here.