Tax residence of foreign companies in light of Bywater

The Australian Taxation Office (ATO) has withdrawn its longstanding ruling TR 2004/15 dealing with the tax residence of foreign companies and issued a new draft ruling TR 2017/D2 following the High Court decision in Bywater Investments Limited & Ors v Commissioner of Taxation; Hua Wang Bank Berhad v Commissioner of Taxation [2016] HCA 45.

Section 6(1) of the Income Tax Assessment Act 1936 provides that a company is resident in Australia if it is incorporated […]

By |June 5th, 2017|

Mauritius: Alternative Tax Dispute Resolution

The Mauritius Revenue Authority (MRA) has set up an Alternative Tax Dispute Resolution (ATDR) Panel to resolve tax disputes through a streamlined process that is efficient and cost effective. The ATDR Panel will consider applications for review made by any person satisfying the conditions applicable for review who has been assessed to tax under section 129 of the Income Tax Act and/or section 37 of the VAT Act and has either objected to the […]

By |June 2nd, 2017|

Foreign Tax Credits: General Principles And Audit Risks

The foreign tax credit (“F.T.C.”) is a keystone of U.S. outbound tax legislation. Its purpose is to alleviate the burden of double taxation in the presence of income subject to both U.S. tax and foreign tax. The main provisions of the Internal Revenue Code of 1986 as currently in effect (the “Code”) addressing F.T.C. are found in Code §§901 to 909.

The I.R.S. Large Business and International Division (“LB&I”) has published several International Practice Units […]

By |June 1st, 2017|