What is substantial economic activity for tax purposes in the context of the European Union and the OECD initiatives against harmful tax competition?

Resource Information

The work What is substantial economic activity for tax purposes in the context of the European Union and the OECD initiatives against harmful tax competition? represents a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation. This resource is a combination of several types including: Work, Language Material, Continuing Resources.

Label

What is substantial economic activity for tax purposes in the context of the European Union and the OECD initiatives against harmful tax competition?

Creator

• Santos, A.C. dos

Subject

• Code of Conduct
• State aid
• economic activity
• harmful tax competition
• BEPS Project (OECD)
• patent box
• substance over form
• transfer pricing
• nexus approach

Language

eng

Summary

This article deals with the substantial economic activity criterion as defined in the Code of Conduct for Business Taxation, in the OECD Report Harmful Tax Competition - An Emerging Global Issue and, more recently, in item 5 of the base erosion and profit shifting (BEPS) Action Plan, namely regarding, at this phase, its application to patent box tax regimes. The author analyses the juridical and political controversy on the various approaches to determine what substantial economic activity actually means, specifically the value added approach, the transfer pricing approach and the nexus approach, this last criterion being the one preferred by the majority of the Member States of the OECD and the European Union. Finally the author raises some questions about the application of the recent agreement between UK and Germany concerning the British patent box regime. Is it compatible with the EU law, especially with the EU State Aid rules?

Citation source

In: EC tax review. - Alphen aan den Rijn. - Vol. 24 (2015),

Geographic coverage

• European Union
• Europe

Language note

English