European Direct Tax

The European Direct Tax Committee covers income-based tax aspects of European operations, including tax treaty matters, and develops the Institute’s positions and submissions to taxing authorities in European countries, as well as the European Union and OECD.

TEI Comments on OECD BEPS Action 6: Prevent Treaty Abuse

On April 8, 2014, TEI submitted comments to the OECD regarding its Public Discussion Draft on BEPS Action 6: Preventing the Granting of Treaty Benefits in Inappropriate Circumstances. The Institute’s comments generally focused on the need for objective rules if the OECD is to combat inappropriate “treaty shopping.” TEI recommended that such rules should be in the form of clearly defined “limitation-on-benefits” provisions in the OECD’s Model Tax Convention, and not in the form of a general anti-abuse rule.

TEI Comments on UN Transfer Pricing Manual

On March 7, 2014, TEI submitted comments to the United Nations regarding the United Nations Practical Manual on Transfer Pricing for Developing Countries.

TEI Comments on OECD Transfer Pricing Documentation and CbC Reporting Draft

On February 22, 2014, TEI submitted comments to the OECD recommending substantial changes to the OECD’s revisions to Chapter V of its Transfer Pricing Guidelines included in its Discussion Draft on Transfer Pricing Documentation and CbC Reporting. TEI’s recommendations included, among other things, delaying and substantially revising the proposed Country-by-Country reporting template, balancing tax authorities need for information against the compliance burden on taxpayers, and keeping taxpayer information confidential.

TEI Submits Further Comments on OECD BEPS Action Plan

On October 16, 2013, TEI submitted a second letter to the OECD commenting on the OECD’s Action Plan on Base Erosion and Profit Shifting. TEI’s comments addressed issues under the 15 individual items of the Action Plan, including transfer pricing aspects of intangible assets, changes to the OECD model treaty, and improvements to the mutual agreement procedure.

TEI Comments on OECD Transfer Pricing Documentation White Paper

On September 30, 2013, TEI submitted a letter to the OECD commenting on its White Paper on Transfer Pricing Documentation. TEI’s comments focused on the need to reduce the transfer pricing documentation and compliance burden on taxpayers by standardizing requests for such documentation across tax authorities.

The comments were prepared under the aegis of TEI’s European Direct Tax Committee, whose chair is Alexander Kölbl of General Dynamics. Benjamin R. Shreck, TEI Tax Counsel, coordinated the preparation of TEI’s letter.

TEI Comments on OECD BEPS Action Plan

On September 18, 2013, TEI submitted a letter to the OECD commenting on its Action Plan on Base Erosion and Profit Shifting. TEI's comments focused on the general principles of the current international tax system and the need for the OECD maintain those principles as it advances its Action Plan to combat perceived base erosion and profit shifting by multi-national enterprises.