In a globalized world, the finance and tax departments of corporations need to be kept informed about current international tax matters. You will find below a brief summary of various developments in international taxation.
- The Summit of the European Council held in May 2003 concluded that measures should be swiftly adopted to avoid fraud in value added tax as well as to adopt measures to avoid aggressive tax planning strategies, and to revise the legislation of member countries concerning money laundering in order to increase transparency in economic ownership.
- Australia: The Australian tax department intends to conduct selective audits focused on transactions with tax havens, financial transactions, and corporate restructuring.
- Japan intends to abolish the hierarchy among transfer pricing methods and to introduce arm’s length ranges as well as restrictions on the use of secret comparables.
- India: The tax department will implement a new program for advance pricing agreements to attempt to solve various issues concerning related party transactions.
- Korea intends to harmonize transfer pricing adjustments for income tax purposes with those used for customs purposes.
- Thailand intends to consider introducing reporting obligations with regard to intercompany transactions.