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© Irish Tax Institute 2011 Advanced Business Taxes Lecture 3
© Irish Tax Institute 2011 ABT – Lecture Plan 27 NovemberChapters 8-9 inclusive Taxation Issues Inbound to Ireland Taxation Issues Outbound from Ireland
© Irish Tax Institute 2011 ABT – Lecture Goals Understand basis of Irish charge Identify Irish tax issues on repatriation of profits from Ireland including migration Understand and apply the Irish tax treatment on inbound interest/royalties, foreign branch profits and dividends from both Treaty and non-Treaty jurisdictions to include Irish taxation and credit for foreign taxes Understand and apply Irish participation exemption regime for chargeable gains Compare and contrast branches, subs and representative offices Understand key relief available for intra-group financing including associated anti-avoidance provisions
© Irish Tax Institute 2011 Recap on Last Week - Quiz Name three scenarios where Irish legislation, EU Directives and Double Tax Treaties may interact Give the specific legislative references Why would you rather go for EU Directive Relief as apposed to domestic or treaty relief? How do the conditions for domestic, treaty or EU directive relief vary? Name 4 ways a company can avoid withholding tax on interest?
© Irish Tax Institute 2011 Recap on Last Week - Quiz What is meant by transfer pricing? Name 5 methods for determining transfer price? What is a correlative adjustment Describe any transfer pricing provisions of a double tax treaty? Give 5 examples of a branch and 3 examples of a non-branch activity What is meant by “thin capitalisation” Name three ways a double tax treaty can relief income from double tax?
© Irish Tax Institute 2011 International Tax Chapter 8 Taxation Issues for companies setting up in Ireland (Inbound investment)
© Irish Tax Institute 2011 Companies coming to Ireland How is a company coming to Ireland taxed? –Is it opening a branch in Ireland, creating a new subsidiary in Ireland or migrating its residence to Ireland? –What type of income will it have? Trading, non trading (Noddy), receipt of interest, royalties, dividends, chargeable gains? –What is the taxation in Ireland but also what withholding tax will apply on the repatriation of this profit abroad? –In what way is the income relieved from DT?
© Irish Tax Institute 2011 Repatriation of Profits from Ireland Key tax issue prior to investment is tax efficiency of profit repatriation – what is the tax cost of bringing profits “home”? Profit repatriation encompasses interest, royalties, dividends, capital distributions – can also include arm’s length recharging for services rendered Marginal taxation can arise due to Higher rates of tax in home jurisdiction and/or non- availability of credit for Irish tax (including underlying tax in case of dividends) Un-creditable WHT suffered/ domestic exemption such that WHT final tax cost
© Irish Tax Institute 2011 International Taxation Recap – Basis of Charge S.26(1) – Irish Res Co chargeable to CT on worldwide profits - income and chargeable gains S.25(2) – Non-resident Co with Irish branch/agency chargeable to CT in respect of trading income from the branch/agency (non-trading branch income outside of scope of corporation tax) income from property of the branch/agency chargeable gains from disposal of branch/agency assets Non Irish resident Co with no Irish branch/agency chargeable to Irish income tax on Irish source income and chargeable to CGT on disposal of specified assets (S.29 )
© Irish Tax Institute 2011 Ireland as jurisdiction to repatriate profits from Consider a structure such that foreign company lends to Irish operation or licences IP to Irish operation Interest or royalties paid to foreign company – repatriation of profits before corporation tax! Is it caught by domestic Transfer Pricing rules – Sec 835C –Applies to trading transactions –Does not apply to “grandfathered transactions”
© Irish Tax Institute 2011 Repatriating Profits Abroad - Cont’d What about withholding tax? General rule – Income Tax withheld 20% –Interest paid S246 –Royalties S238 WHT due with Preliminary Tax
© Irish Tax Institute 2011 Interest and Royalties - Withholding Tax exemptions S.246(3)(h) - exemption from WHT on trading interest to Treaty residents No exemption on payments to domestic non-banking Irish Co unless covered by 51% group exemption S410 S.242A – FA10 amendment extends same treatment to patent royalties made to Treaty residents in the course of trade/business Extensive exemptions from DWT per S.172D In absence of domestic legislative exemption – DTA provides for lower/nil rate of WHT on dividends, interest and royalties Interest and Royalties Directive Legislative exemption preferred due to absence of Treaty clearance procedures – changes in this
© Irish Tax Institute 2011 Withholding Tax exemptions (cont’d) Form VC3 previously required certificate from the auditor of the non-resident company certifying that it is not controlled by Irish residents Finance Act 2010 has removed this requirement and instead DWT exemptions now apply in accordance with a self-assessment system. The declaration will endure and cover future dividends for a period of up to six years after which a new declaration Note WHT exemption in Interest and Royalties Directive
© Irish Tax Institute 2011 Repatriation of Profits by way of dividend No deduction for CT purposes in Ireland, hence interest and royalties more favourable Dividends are extremely widely defined DWT applies unless domestic exemptions, (see s172) EU Parent Sub or treaty exemption applies Are dividends treated as trading or non trading income for recipient in home country? Is credit given in home country for WHT applied in Ireland?
© Irish Tax Institute 2011 Repatriation of Profits from Ireland Repatriation also includes S.583 capital distribution – redemption, share buy-back, distribution in course of winding-up Capital distribution different from an income distribution S.130(1) => DWT n/a Capital distribution = a reduction in capital of the company – difficult from a legal perspective Capital distribution = CGT event, are the shareholders subject to CGT? Repatriation also achievable through migration of Irish sub out of charge to Irish tax – migration may be preferable in certain circumstances to distribution/liquidation
© Irish Tax Institute 2011 S.627 – 629 CGT Exit Charges on Migration S.627 CGT Exit Charge on Migration - Company ceases to be Irish resident – deemed sale & reacquisition of all assets subject to certain key exemptions Allowable loss offset against allowable gains – net gain chargeable Exit charge n/a to “Excluded Companies” – 90% controlled by company under control of EU/Treaty residents (not Ireland) Exit charge n/a where assets continue to constitute Irish branch assets (“specified assets”) See Task 8.2
© Irish Tax Institute 2011 S.627 – 629 CGT Exit Charges on Migration S.628 Election to postpone gain where Migrating Co 75% Sub of Irish resident Co – deferred gain crystallises to the Irish parent if within 10 years: MigratingCo sells any of the assets with deferred gain MigratingCo ceases to be a 75% sub of the Irish resident Parent or the Parent ceases to be Irish resident S.627/628 Tax unpaid within 6 months recoverable from Co which was 75% group member in 12 month period to migration, or Controlling Director (S.432) Tax recoverable within “specified period” – 3 years after end of relevant chargeable period
© Irish Tax Institute 2011 S.627 – 629 CGT Exit Charges on Migration Migration to non EU/EEA country will result in migrating company ceasing membership of Irish CGT group S.623 clawback of CGT group relief where migrating Co leaves CGT group with asset within 10 years of relieved transfer S.623 clawback should result in uplifted base-cost for purposes of S.627 charge S.627 exclusions not available for S.623 charge Migration should not affect association for stamp duty clawback purposes
© Irish Tax Institute 2011 International Tax Chapter 9 Taxation Issues Companies expanding outside of Ireland (Outbound from Ireland)
© Irish Tax Institute 2011 Company expanding from Ireland or using Ireland as HoldCo location What type of income will they receive Foreign trade Case III or Case I Repatriating profits from foreign operations –How? - Interest, Royalties, Dividends, Capital Distributions –Irish Domestic exemptions from WHT not applicable –What are foreign domestic WHT rules –Does Tax Treaty or EU Directives offer any relief? –Does our domestic unilateral credit relief apply?
© Irish Tax Institute 2011 Interest/Royalties Interest/royalties taxable at 12.5% trading income, 25% passive DTA usually provides that interest/royalties taxable in country of residence only unless connected with PE in other country Royalty payments may not fall within narrow definition in some Treaties such that WHT applies Where WHT correctly suffered under DTA credit relief available per Sch24 Non-Treaty – unilateral relief for trading interest/royalties per Sch24 9D, 9DB
© Irish Tax Institute 2011 Interest/Royalties – Credit Relief – trading income from DTA Country – Sch 24, para 4 If royalty/interest arising from DTA country and is trading income use – P X I/R turnover basis applies per Sch24, para. 4 See pg 147 manual Gross foreign income adjusted using “Turnover basis” to calculate “Irish measure of foreign income”
© Irish Tax Institute 2011 Interest/Royalties – Credit Relief Relevant income = P x I/R P= the amount of net profits of the trade before any deduction for foreign taxes not allowed as a credit (i.e. net taxable Case I profits pre deduction for uncredited tax) I = “that income” (the foreign income on which the foreign tax was suffered) before deducting any expenses (i.e. gross foreign income) R= the total amount receivable by the company in the period in the carrying on of its trade (i.e. Case I Turnover)
© Irish Tax Institute 2011 Interest/Royalties – Credit Relief Practical approach to foreign tax credit relief calc:- Gross up Net Foreign Income (Relevant Income Less Foreign Tax) at lower of Irish effective rates and Foreign effective rates Credit = Grossed up NFI X Lower Effective Rates Full Credit where FER < Irish effective rate (12.5%), FER > Irish effective rate – tax deduction for uncredited tax
© Irish Tax Institute 2011 Understanding Interest/Royalty Credit Relief Sch 24(4) See example 9.1 Say Royalty received = 40k Say tax withheld on Royalty= 4k Say total profits in IreCo = 100k Say total Turnover in IreCo= 800k Royalty is deemed to contribute 5k to profits of Irish Co. Royalty forms part of trading income – trade expenses would have occurred, hence reduction to deemed Irish Measure Income! Actual tax withheld was 4k. Effective tax rate 80%. Regross 1k at lower of Irish and Foreign ETR = 1.143k. Credit is given for 1.143k, Deduction for 3,857k
© Irish Tax Institute 2011 Interest – Credit Relief – trading interest from Non DTA Country – Sch 24, para 9D Calculate A – use normal method (sch 24 para 4) Calculation B - Foreign Tax x 87.5% Credit relief based on lower of A&B
© Irish Tax Institute 2011 Interest/Royalties – Credit Relief Onshore “pooling” for trading interest only per Sch24,9F subject to 25% relationship – no pooling for royalties Uncredited foreign tax on interest offset against Irish CT on similar Case I trading interest – no provision for carry forward (as distinct from pooled dividends) Part of Excess Credit relieved by deduction Excess credit for pooling = (100% – 12.5%) X Excess Credit (Sch 24, Paragraph 9 (3)(b)) Example 9.2
© Irish Tax Institute 2011 Interest/Royalties – Credit Relief Non-trading interest/royalties Treaty relief only – no unilateral relief Irish measure foreign income is the foreign interest/royalty – no adjustment required – its not Case 1 income! No pooling for un-credited foreign tax
© Irish Tax Institute 2011 Foreign Branch Profits Credit in Ireland for foreign branch profits under DTA per Sch24 Sch 24, 9DA – unilateral credit relief to IrishCo for foreign tax on foreign branch profits Sch24, 9FA - pooling of unrelieved foreign branch tax against other foreign branch income – FA10 amendment provides for carry forward unrelieved tax Irish Measure Foreign Income (IMI) – Irish taxable profits on basis profits were calculated under Irish tax principles => Sch24, 4.(2A) [P X I/R] Turnover Basis not used Use of Irish basis generally results in different FER to actual rate of foreign tax=> FER = foreign tax/IMI See examples Pg. 166
© Irish Tax Institute 2011 Inbound Dividends – Domestic Taxation Prior to FA08 inbound dividends taxable under Case III @ 25% FA08 introduced S.21B arising from UK FII GLO case => aim to ensure that EU source dividends not subject to higher rate of taxation than domestic dividends contrary to Freedom of Establishment principle Domestic effective rate may be lower than 12.5% on underlying profits – EU source dividends now at effective 12.5% => still contrary to EU law??? Election to tax inbound dividends from EU/DTA resident sub paid out of “trading profits” as defined NEW FA2010 extended 12.5% CT to dividends paid from trading profits of non DTA public co’s
© Irish Tax Institute 2011 Trading Profits profits from carrying on a trade (exclude “excepted trade”) dividends received out of trading profits (traced through EU/DTA) Mixture – pro-rating required subject to 75% test Dividends flowing through non-EU/DTA lose their trading character Dividend from <5% shareholding deemed paid out of trading profits – 12.5% where Case III, exempt where trading Case I Inbound Dividends – Domestic Taxation
© Irish Tax Institute 2011 All dividend deemed to be paid out of trading profits where 75%+ sub profits are trading profits, and 75%+ assets of group are trading assets Relevant trade charges offsettable against S.21B 12.5% dividends – S.243A(3)(c) Relevant trading losses offsettable against S.21B 12.5% dividends – S.396A(3)(c) Group relief relevant trading losses and excess relevant trade charges against S.21B 12.5% dividends – S.420A(3)(a)(iii) Inbound Dividends – Domestic Taxation
© Irish Tax Institute 2011 Dividends potentially suffer two layers of taxation Underlying tax – tax on the profits out of which dividend paid Dividend Withholding tax DTA usually limits level of DWT depending on % shareholding, e.g. UK DTA – max 15% WHT, reduced to 5% with 10% DTA imposes minimum shareholder requirement to avail of credit relief for underlying tax, e.g. Art.21(b) UK DTA imposes min. 10% voting power Inbound Dividends – Credit Relief under DTA
© Irish Tax Institute 2011 Limited no. of DTAs allow relief for underlying tax to “portfolio” investors (<10% issued share capital) Belgium, France, Germany, Italy, Japan, Lux, => Revenue provide sample effective tax rates for these jurisdictions (incl. WHT & underlying tax)– open to taxpayer to calculate actual instead (See TB67) Cyprus, Pakistan, Russia & Zambia – taxpayer must calculate actual effective tax rate Inbound Dividends – Credit Relief under DTA
© Irish Tax Institute 2011 Bowater principle => Irish measure of foreign income (IMI) (aka “relevant income”) in case of dividends is accounting profits before tax (not tax adjusted profits) Foreign Effective Rate = Actual ForeignTax (i.e. DWT + % Underlying Tax) % Accounting Profits before tax Need to pro-rate accordingly where not all profits distributed and/or not 100% shareholding See Task 11.4 (change to eg 9.6) Inbound Dividends – Credit Relief
© Irish Tax Institute 2011 Sch24, 9A – unilateral credit relief for WHT and underlying taxes on dividend income from 5% Sub – also applies to EU Co with Irish branch receiving dividend Unilateral relief applies where no DTA or requirements for credit relief under DTA not met (e.g. % shareholding) Sch 24, 9B – same relief as 9A for underlying tax borne by lower tier companies Relief is granted in same manner as per Treaty – Sch. 24 provisions apply Inbound Dividends – Unilateral Credit
© Irish Tax Institute 2011 Inbound Dividends – Onshore Pooling Sch24, 9E Relief for un-credited foreign tax on inbound dividends – available for offset against Irish tax arising on other inbound dividends - see example 9.7 Excess credits available for offset against other foreign dividends in AP, unutilised c/f for offset in future AP Part of Excess Credit relieved by deduction => Excess credit for pooling = (100% – Tax Rate%) X Excess Credit (Sch 24, Paragraph 9 (3)(b)) Restrict tax credit to 75% or 87.5% as appropriate
© Irish Tax Institute 2011 Inbound Dividends – Onshore Pooling Sch24, 9E Excess tax credit arising on 25% dividend received from 5% Sub (direct or indirect) may be claimed against CT arising on any other such inbound dividend (either 25% or 12.5%) See example 9.8 Excess tax credit arising on S.21B 12.5% “relevant dividend” offsettable only against CT arising on 12.5% “relevant dividend” Consider mix of foreign dividends before 12.5% election => may be preferable not to elect – see 9.3.4 pg 166 Unused credits available for carry forward indefinitely – 12.5% excess credits ring-fenced
© Irish Tax Institute 2011 Participation Exemption – S.626B “Participation Exemption” An exemption from CGT on disposal of shares in Qualifying Subs ParentCo - Min 5% of OSC, Profits & Assets for continuous 12 month period at any time during 2 years period up to date of disposal => no requirement for 5% at date of disposal SubCo – EU/DTA Resident, and business of SubCo consists wholly or mainly of the carrying on of one or more trades, or taken together, the businesses of HoldCo and all SubCos which meet resident/holding period test consist wholly or mainly of the carrying on of one or more trades.
© Irish Tax Institute 2011 Participation Exemption – S.626B “Wholly or mainly” – no guidance, >50% total profits, assets or turnover S.626B(3) – exemption N/A to disposals of shares deriving greater part of value from land/minerals in State, ng/nl transactions per S.617 Deemed disposals on migration per S.627 S.626C – extends S.626B to assets related to shares, e.g. options & other rights to acquire shares No loss relief where S.626B applies Dividends from SubCo not treated as investment income for CCS purposes where S.626B applies – excl FII
© Irish Tax Institute 2011 Chargeable Gains – Sch24, 9FB Many DTAs provide that disposal of shares taxable in country of residence only except where greater part of value derive from land/buildings in other jurisdiction Gain chargeable in both countries Credit relief under DTA – use Irish measure of gain to calculate FER Unilateral relief where CGT suffered in jurisdictions covered by DTAs which exclude CGT (pre 74 Treaties), e.g. France, Germany, Netherlands
© Irish Tax Institute 2011 Branch, Sub or Rep Office? Company and branch treated as same legal entity for Irish tax purposes (Irish co with foreign branch or foreign co with Irish branch) Other jurisdictions may treat Company and branch as separate entities for tax purposes, e.g. Luxembourg Irish branch of foreign co does not prepare own financial statements – Foreign Co required to file Form F7, P&L, BS, Directors and Audit report including consolidated accounts with CRO Foreign branch of IrishCo – financial statements include branch profits => full profits taxable in Ireland with credit for foreign tax. Domestic provisions of foreign jurisdiction may require separate branch accounts
© Irish Tax Institute 2011 Branch, Sub or Rep Office? Branch IrishCo liable to branch profits as earned – credit relief (DTA, unilateral relief) for foreign tax suffered Transactions between branch and IrishCo ignored (includes for TP purposes) – Treaty imposes arm’s length pricing Branch losses form part of IrishCo profits – immediate relief Foreign tax base and Irish tax base may differ – consider in context of FER
© Irish Tax Institute 2011 Branch, Sub or Rep Office? Subsidiary Ensure foreign tax residence Irish Parent liable to tax on sub profits when repatriated– credit for WHT and underlying tax (DTA, unilateral relief) No loss relief in Irish Parent for foreign sub unless S.420C applies Entitlement to S.626B relief on future sale Irish sub of foreign parent – consider foreign CFC rules
© Irish Tax Institute 2011 Branch, Sub or Rep Office? Representative office is merely an office in foreign jurisdiction with no authority to bind the company – should not constitute a PE (branch or agency) No taxable presence in local jurisdiction – may be requirement to apply PAYE where employees are carrying out duties in domestic jurisdiction Nature of representative office is that no profit attributable to it (even where foreign Revenue authority argues that it is a PE under
© Irish Tax Institute 2011 Relief on Intra-group Financing Qualifying interest per S.247 deductible as a charge on income per S.243(8) S.247 used to finance acquisitions, fund subsidiaries, restructure groups by way of debt/equity – including non Irish resident subs Detailed conditions to be met Detailed anti-avoidance provisions re interest on intra- group loans (not equity) Comprehensive recovery of capital rules – S.249 Remember general rules re interest deductibility on trading account, rental account
© Irish Tax Institute 2011 Relief on Intra-group Financing S.247(2) Interest on a loan used to:- Acquire shares in a Trading/Rental Co or a HoldCo of a Trading/Rental Co Lend to Trading/Rental Co or a HoldCo of a Trading/Rental Co where proceeds used wholly & exclusively for purposes of their trade/ trade of ConnectedCo Repay loan which was applied for either of these purposes Note: S.248 for individuals – no relief for interest on loan to RentalCo
© Irish Tax Institute 2011 Relief on Intra-group Financing – S.247(3) Conditions Investing Co must have Material Interest (>5% OSC) in Investee Co or a ConnectedCo Common Director throughout period from loan application to interest payment No recovery of capital in period – interest relief restricted pro-rata per S.249 Interest relief allowed on a paid basis Loan proceeds cannot have been applied for some other purpose prior to being used as per S.247(2)
© Irish Tax Institute 2011 Relief on Intra-group Financing – S.249 Recovery of Capital Interest deduction restricted pro-rata where Investing Co (borrower) recovered or deemed to have recovered capital from Investee Co or ConnectedCo Applies to capital recovered during the period from the application of the proceeds of the loan until interest paid or within the period beginning 2 years before the loan proceeds were invested, unless capital recovered used to acquire shares/lend money qualifying for relief per S.247(2), or repay another loan qualifying for S.247 relief
© Irish Tax Institute 2011 Relief on Intra-group Financing – S.249 Recovery of Capital Deemed recovery of capital per S.249(2) InvestorCo receives consideration for the sale/repayment of OSC of InvesteeCo or company connected with InvesteeCo Investee Co or ConnectedCo repays any loan from the InvestorCo InvestorCo receives consideration for the assumption of a debt due from InvesteeCo or a ConnectedCo
© Irish Tax Institute 2011 Relief on Intra-group Financing – S.249 Recovery of Capital InvestorCo acquires shares in Holdco which holds shares in TradeCo/RentalCo InvestorCo deemed to have recovered capital where Holdco itself recovers capital from a 51% TradeCo/ RentalCo Sub unless capital used to repay a loan made to it by InvestCo; redeem shares held by InvestorCo; OR acquire shares in TradeCo/CaseVCo or repay another S.247 loan More than one InvestorCo – apportion deemed recovery between InvestorCos pro-rata to amount subscribed/lent (S249(2)(a)(iii))
© Irish Tax Institute 2011 Relief on Intra-group Financing – Anti-avoidance S.247(4A) Internal Debt Targets “internal debt” transactions – related-party borrowings to acquire OSC in ConnectedCo creating deductible interest charge Applies to borrowings on/after 2 Feb 06 S247(4A)(a) – applies where loan advanced from connected party, and to acquire share capital or lend money ultimately used to acquire share capital of connected company
© Irish Tax Institute 2011 Relief on Intra-group Financing – Anti-avoidance S.247(4A) Internal Debt S247(4A)(b) –applies where third party borrowings financed back-to-back from related-party assets to circumvent S247(4A)(a) S.247(4A) related party interest restriction N/A to Third-party borrowings (for OSC/loan) – provided not back-to-back arrangement Interest on replacement pre 2 Feb 06 borrowings Interest on related party borrowings used to acquire share capital of Unconnected Co Interest on related party borrowings to lend to group company for trading purposes
© Irish Tax Institute 2011 Relief on Intra-group Financing – Anti-avoidance S.247(4A) Internal Debt S.247(4A)(c) – no restriction where related party borrowings used to acquire newly issued OSC where share capital used for trade/business S.247(4A)(d), (e) & (f) – no restriction on interest from related party borrowings to acquire OSC to extent investment generates taxable income See examples Pg. 190+
© Irish Tax Institute 2011 Anti-avoidance Outbound Investment S.590 Attribution of Gains – see Part 2 material S.129A – anti-avoidance provision which taxes dividends from Irish sub under Case IV where profits earned while sub non-Irish resident Applies only where sub controlled by Irish residents (at any time) before migration Applies to sub which becomes Irish resident after 3 April 2010 Applies to dividends paid in 10 year period post migration Schedule 24 DTA relief available
© Irish Tax Institute 2011 Recap Repatriation out of Ireland –Does WHT apply: domestic, EU and DTA relief –Repatriate by dividends, interest, royalties capital distribution –Caught by Transfer pricing Repatriation into Ireland –How is income taxed, what rate? –What relief is given, DTA or unilateral –How is relief calculated
© Irish Tax Institute 2011 Recap How is double tax relief calculated on –trading royalties –non trade interest –Branch profits What is Bowwater principle? When is interest incurred on borrowings for intra-group transactions tax deductible? What is meant by “participation exemption”
© Irish Tax Institute 2011 Legislative References S25 Non residents, S26 Charging section S29 CGT non residents S627 Deemed disposal of assets (exit charge) S628 Postponement of exit charge under S627 S629 Tax on non resident Co recoverable from resident member or director S626B Participation exemption Schedule 25A S247 Interest as a charge S249 Recovery of capital rules S129A post migration Divs
© Irish Tax Institute 2011 Legislative References Schedule 24 Credit relief Para 4 Basis for determining max amount of credit Interest Para 9 D unilateral credit relief (includes non DTA) for trading interest Para 9 F- onshore pooling of foreign credit (not for royalties) Para 7 deduction for foreign credit where not trading Royalties Para 9 DB unilateral credit relief (DTA only) for trading R Para 7 deduction for foreign credit where not trading
© Irish Tax Institute 2011 Legislative References Foreign branch profit Para 4 (2A) not to use t/o basis, use Irish calc of foreign tax Para 9 DA unilateral credit relief for foreign tax Para 9 FA- onshore pooling of foreign credit Dividends Para 9 A unilateral credit relief for WHT and underlying tax from 5% subs (includes non DTA) Para 9 B extends credit for WHT aand underlying tax for lower tier subs Para E onshore pooling of foreign credit
© Irish Tax Institute 2011 Past Questions Autumn 08, Q6, 6 marks (pg 328) format of structuring overseas, branch v sub Summer 2009, Q4(a), 8 marks S247, 4(c)div from foreign sub Summer 2009, Q5, 7markss, pg355, Dividends from foreign sub calculate credit Summer 09. Q6 Pg356 Summer 2010,Q1, full question, Pg 418, Branch v sub, overseas set up, CFC, TP, Thin Cap Autumn 2010, Q1, Full Question, P446, tax treatment of inbound and outbound divs, S247 Autumn 2010, Q3 (b), pg 449, WHT on payment of interest
© Irish Tax Institute 2011 Past Questions Autumn 2010, Q4, full question –P451 S21 and calculation of credit on inbound divs Summer 2011, Q4(b)(ii), 6 marks, Participation exemption & schedule 25A Summer 2011, Q6(a) WHT on royalty payment to China (theory) Autumn 2011, Q1(i)6 marks calculate credit on foreign divs, Autumn 2011, Q3(a)(i), 5marks, exit charge, 3(a)(ii), 3 marks, participation exemption
© Irish Tax Institute 2011 Preparation for Lecture 4 Read Chapters 10-12 inclusive Work through examples in chapters 8 & 9
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