ROLE OF LAWYER IN POST BEPS ERA www
ROLE OF LAWYER IN POST BEPS ERA www. carpathianag. com
BEPS –technical challenges ssdd 6 Interest deduction CFC rules (effective profit shifting to lower tax jurisdiction) (technically avoid Fixed Ratio Rule) Harmful tax practices (falling within IP regime) Broader approach to Permanent Establishment (how to avoid creation of PE) Treaty abuse (solutions for effective use of treaty benefits) Transfer pricing regulation (effective distribution of group profits compliant to regulation)
Role of lawyer in post BEPS era Practical advice – Bank account – Administration – CRS Reporting Legal advice Technical advice – Taxation of interests, dividends, . . . – Tax residency – Invoicing – Substance requirements – Risk evaluation – Legal qualification
Basic dilemma Tax planning I DO NOT WANT TO PAY SO MUCH TAXES Tax avoidance Tax evasion
Tax planning is legitimate ! Legal form A (e. g. legal entity) Legal form B (e. g. self-employed)
Legal challenges EU law Justice vs certainity Deliminate the borders
Case law - deliminate the borders Fin. Co (e. g. Cyprus) loan UBO interests SPV
Case law - deliminate the borders UBO Trust Business 1 Business 2
Case law - EU freedoms EU country Hold. Co Cyprus 15 % Target. Co e. g. Germany
Case law – Justice vs certainty 100% A B. V. B B. V. 47, 5% C N. V. Netherlands 100% C Lux S. A. R. L. 99, 5% Op. Co A 99, 9% Op. Co B Luxembourg 100% Op. Co C EU country
Case law – Justice vs certainty 100% A B. V. B B. V. 47, 5% C N. V. 47, 5% Netherlands 100% C Lux S. A. R. L. Luxembourg 100% Op. Co A Op. Co B Op. Co C EU country
Case law – Justice vs certainty Shareholder 1 Shareholder 2 France Germany Slovakia Op. Co
Case law – Justice vs certainty Shareholder 1 Shareholder 2 France Germany Hold. Co Netherlands 100% Slovakia Op. Co
Case law – all in one Google/UBER/Apple/ Facebook services/goods e. g. Ireland Marketing. Co Purchaser EU country
CARPATHIAN Advisory Group, s. r. o. Seat: Jasovská 17, 851 07 Bratislava, Slovenská republika Office: Ružinovská 42, 821 03 Bratislava, Slovenská republika IČO: 44 138 148, Registrácia: Obchodný register Okresného súdu Bratislava I, oddiel: Sro, vložka č. : 52352/B Peter Varga (CEO) T: +421 918 953 897 E: p. varga@carpathianag. com Lukáš Steiniger (Legal) T: +421 910 979 919 E: l. steiniger@carpathianag. com Táto prezentácia a jej obsah sú dôverné a podliehajú právu duševného vlastníctva a obchodnému tajomstvu CARPATHIAN Advisory Group, s. r. o.
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