Global Tax Adviser

The latest tax news and analysis from KPMG’s international tax practice in Canada

February 2010

• U.S. Customs Information Requests — Best Chance to Avoid Penalties?
• WHT Applies to Non-Cash Remuneration Paid to Non-Resident Employees
• FMC Technologies — Non-Resident WHT Catch-22 Upheld
• More CRA Guidance on Canada-U.S. Treaty's Hybrid Entity and LOB Rules
• IRS To Require Detailed Reporting of Uncertain Tax Positions

January 2010

• RCI Trust — FCA Rules that CRA Not Required to Issue Section 116 Certificate
• Unpaid Amounts Election to be Filed by Original Debtor and Creditor
• Pechet — FCA Agrees Interest Owed on Unremitted WHT Despite Nil Tax Liability
• Stay Up-to-Date with KPMG Webcasts

December 2009

• Increased IRS Scrutiny on U.S. Loan Activities Causes Concern for Foreign Lenders
• Canada Signs First TIEA with Netherlands Antilles and Announces Others
• Canco May Be Caught By Surprise New York License Fee and Penalties
• 1143132 Ontario Limited — Barbados Transfer Pricing Appeal Struck Down
• Netherlands Extends R&D Tax Benefits

September 2009

• Taxpayers May Get a Break from Filing Duplicate Foreign Affiliate Information Returns
• CRA Clarifies TIEA Requirements for Income to be Exempt Surplus
• Hungary — New Taxes May Adversely Affect Existing Structures
• Exida.com and Tonoga Inc.— Court Upholds Non-Resident's Late-Filing Penalties
• Customs Duty Surprise for Importers of Goods from Related Companies
• CRA Says Non-Resident Shareholder's Use of Car in Canada is Taxable Benefit

July 2009

• Partnership Does Not Disqualify U.S. Corporation From Treaty Benefits
• Ireland's 2009 Budget Features New Rules for Intangible Assets
• Barbados' 2009 Budget Announces International Tax Changes
• Michigan Erroneously Rejects Tax Filing Extension Requests

June 2009

• Finance Offers Update on International Tax Legislation
• Canada's Tax Treaties — What's New?
• Get Pre-Filing Clearance on U.S. PE Issues
• States Announce Amnesty Programs

May 2009

• CRA Clarifies its View of "Permanent Establishment" in Canada-U.S. Treaty
• Prévost Car Inc. — FCA Confirms Holdco is "Beneficial Owner" of Canco Dividends
• Transfer Pricing Aspects of Business Restructurings — OECD Releases Public Comments
• Wisconsin Extends the Arm of State Taxation
• Transfer Pricing — CRA Administrative Round-Up

March 2009

• Quebec Unveils its Response to Fight "Aggressive Tax Planning"
• U.K. VAT Refund Opportunity — File Claims by March 31, 2009
• Obtain Refunds For Withholding Tax on 2008 Contingent Interest Payments
• Goar, Allison & Associates — Court Waives Non-Resident's Late Filing Penalties For Nil Return
• CRA to Assess SR&ED Proposed Measures as Law

February 2009

• 2009 Federal Budget — International Tax Highlights
• New PE Tests For Canadian Companies in the U.S.
• CRA Round Table Addresses Technical and Administrative Issues
• New U.S. Deferred Compensation Rules Now in Effect

Global Tax Adviser

December 2008

• eBay Canada Confirms CRA's Broad Powers to Obtain Third-Party Information
• CRA Clarifies — No Rollback for Unilateral APAs
• GST Refund Opportunity on IPP Exports

November 2008

• New Canada-U.S. Treaty Protocol Not Yet Substantively Enacted
• IRS Gets Stricter on Late-Filing Penalty for Foreign Information Returns
• CRA Says Barbados Qualifying Insurance Company is Eligible for Treaty Benefits
• CRA Says Conversion of Delaware LLC Results in a Taxable Disposition
• Luxembourg to Eliminate Withholding Tax on Dividends

September 2008

• Canada’s GST System Ranks in Top 10 for Global Businesses — KPMG Survey
• FMC Technologies — Court Confirms Only Non-resident Entitled to WHT Refund
• Transportation Costs to Test Prototype Not Eligible for R&D Tax Credit
• CRA Rules Luxembourg Entity is a Co-Ownership Vehicle and not a Trust
• Iceland Abolishes Capital Gains Tax

August 2008

• Competitive Alternatives — 2008 Special Report: Focus on Tax
• OECD Releases New Model Treaty Article on PE Profit Allocation
• KPMG Recommends International Tax Reform
• CRA Rules on Settlement of FX Debt on Amalgamation
• U.K. to Reform Taxation of Foreign Profits

July 2008

• Finance Offers Last minute Reprieve for FA Elections and Functional Currency Reporting
• Treaty-Exempt Business May Have Surprise T106 Filing Obligation
• New U.S. Departure Tax Now Law
• New Rules for Prescribing Foreign Stock Exchanges Released
• CRA Clarifies Canada-UAE Treaty Residence Rules
• Competition Policy Review Panel Calls for Tax Changes

June 2008

• GlaxoSmithKline — CRA Wins Landmark Transfer Pricing Case
• Prévost Car Inc. — Intermediary Dutch Holdco is "Beneficial Owner" of Canco Dividends
• Foreign Entity Round-Up
• Sentinel Hill — WHT Gross-Up Clause Traps Taxpayer
• Luxembourg to Eliminate Capital Duty on January 1, 2009
• U.S. State Add-Back Laws May Affect Canadian Multinationals

May 2008

• Foreign Affiliate Elections Must Be Filed Soon
• 2008 U.K. Budget — Tax Changes for Multinationals
• New U.S. Law Provides Tax Relief to Businesses and Individuals
• VAT Refund — The Cookie Crumbles for U.K. Revenue
• OECD Updates Model Tax Convention for 2008
• Canada-U.S. Tax Treaty Protocol Inches Towards Ratification

March 2008

• Finance Offers Relief for Non-Residents' Section 116 Certificates
• CRA Says WHT Applies on Interest Payment by Guarantor
• WHT at 10% Still Applies to Non-arm's Length Canada-U.S. Interest Payments
• New Parliamentary Process to Allow More Debate on New Tax Treaties
• Barbados Enacts New Tax Exemption for Dividends
• Ireland Reduces Tax on Dividends Received from Non-residents

January 2008

• Senate Delays FIE and NRT Bill due to Pension Industry Concerns
• IRS Issues Views on Taxation of Biotech and Pharmaceutical Industries
• California Annual LLC Fee Found Unconstitutional
• Luxembourg Enacts 80% Tax Exemption for IP Income
• Brazil Changes Financial Services Tax Regime
• KPMG Tax Partner Joins Advisory Panel on International Taxation Issues

December 2007

• Tax Advisory Panel to Recommend Improvements to Canada's International Tax System
• New Bill to Accelerate WHT Exemption for Arm's-Length Interest Payments
• China Provides Details on Tax Reform for Foreign Companies
• U.S.-Hungary Treaty Negotiations Stalled
• eBay Canada — Court Upholds CRA's Demand for Information on Foreign Server
• U.S. Releases Study on Earnings Stripping, Tax Treaties and Transfer Pricing

September 2007

• Tax Executives Institute Calls for 2008 Federal Budget Changes
• CRA Views on Foreign Entity Classification
• IRS Pre-Filing Clearance Program May Pre-empt Tax Disputes
• Transfer Pricing Report Wins the Day in U.S. Court
• Islamic Law-Compliant Financial Products May Raise GST Issues
• More US States to Tax Corporations with No Physical Presence

August 2007

• Act Before 2008 to Avoid Adverse Impact of New U.S. Deferred Compensation Rules
• CRA Rules No FX Gain or Loss on Foreign Currency Capital Contribution
• CRA Introduces New Section 116 Clearance Certificate Procedures
• China Cuts VAT Export Refund Rates
• Joint International Tax Shelter Project Revs Up its Profile
• KPMG Releases Updated Transfer Pricing Compliance Review for Multinationals

July 2007

• KPMG Survey Shows Tax Departments Under Rising Pressure
• Canada’s Corporate Tax Rate Among World’s Highest but GST Rate Relatively Low
• CRA Introduces New Section 116 Clearance Certificate Procedures
• IRS Clarifies Treatment of Interest Paid to Non-residents
• Chinese Tax Authorities Target Low-Profit Contract Manufacturers
• OECD Report Commends Canada for Embracing Tax Information Exchange

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