Following the judgment of the CJEU on Emerging Markets Series of DFA Investment Trust Company case, C-190/12, regarding the WHT claim made by a non-EU investment fund, the KPMG member firm in Luxemburg produced a report describing the new opportunities provided by the CJEU for refunds of withholding tax by certain non-EU investment funds. For more information, please read an April 2014 report prepared by the KPMG member firm in Luxembourg: CJEU opens the door to withholding tax refunds to non-EU investment funds.
On April 30, 2014, the CJEU rejected a legal action filed by the United Kingdom government for the annulment of the EU Council’s decision to authorize enhanced cooperation in the area of financial transaction tax (C-209/13). For more information see the Euro Tax Flash, Issue 225, prepared by KPMG’s EU Tax Centre.
On April 15, 2014, the European Parliament approved an EU Directive designed to improve the acquisition and preservation of supplementary pension rights. Current rules only ensured the portability of statutory pension rights (state or social security benefits) and were considered inadequate to safeguard supplementary pension rights (usually accrued during employment with a pension fund) thus, constituting a barrier to worker mobility between EU Member States. For more information, see the Euro Tax Flash, Issue 224, prepared by KPMG’s EU Tax Centre.
On May 6, 2014, the Council of the EU (ECOFIN) addressed the proposal for a Directive on a Financial Transaction Tax in 11 EU Member States, which was proposed by the EU Commission in February 2014. Although the details of the proposal are still under discussion, it appears that the participating Member States would like to implement a scaled down version of the original proposal as from 2016. For more information see the European Council's press release and the Euro Tax Flash, Issue 227, prepared by KPMG’s EU Tax Centre.
On May 6, 2014, the Council of the EU (ECOFIN) had intended to adopt part of the European Commission’s proposed amendments to the EU Parent-Subsidiary Directive, i.e. the proposals to combat the use of hybrid loans, but, this was blocked by Sweden. As anticipated, agreement was not reached on the proposed general anti-avoidance rule. For more information see the European Council's press release and the Euro Tax Flash, Issue 226, prepared by KPMG’s EU Tax Centre.
Following the invitation of the OECD for comments on the discussion draft on Action 1 (Tax Challenges of the Digital Economy) of the BEPS Action Plan, the results, which were published on April 16, 2014, will be discussed by delegates to the Task Force on the Digital Economy at the OECD’s meeting in April 2014.
On April 24, 2014, the Global Forum on Transparency and Exchange of Information for Tax Purposes released the results of 12 countries which were reviewed to assess their implementation of the international standard of exchange of information on request.
For more information, see the OECD website.