IBFD Course Programme International Tax Planning after BEPS and the MLI

IBFD Course Programme International Tax Planning after BEPS and the MLI

Summary Recent developments such as the BEPS project and the Multilateral Instrument in international taxation, but also unilateral measures adopted by a number of states, are likely to have a major impact on existing tax planning structures as well as on advising on new tax planning structures. Also, transfer pricing has been affected by these recent developments. This course will give you the latest All You Need To Know about the impact of those recent developments in three days. Overview and Learning Objectives This three-day intermediate-level course focuses on international tax planning structures of multinational corporations following recent international developments such as the Base Erosion and Profit Shifting (BEPS) Project, the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) and the new OECD Transfer Pricing Guidelines. The course is designed to provide participants who deal with international tax planning with the latest updates on tax treaty and transfer pricing developments that are relevant to their day-to-day work. It covers, through a combination of formal presentations and case studies, the practical implications that these recent developments may have on existing structures that rely on tax treaties and highlights the risks associated with their use in the post-beps world. This is an interactive course with a maximum of 40 participants. Participants will receive access to online supplementary materials. Who Should Attend? The course is suitable for finance and tax personnel of multinational enterprises, tax accountants, economists and lawyers, in-house tax managers, tax and transfer pricing advisers, and government officials. Course Level and Prerequisites This is an intermediate-level course. Participants should be familiar with the underlying tax treaty principles. 2

Day 1 09.00-10.40 Setting the scene Update on the Final Reports of the BEPS Project Action 1 Action 15 summary: outcome areas on: coherence substance transparency Domestic law and treaty examples relevant to BEPS modifications Impact of BEPS on tax court decisions Risks and opportunities for taxpayers and tax administrations OECD developments post-beps peer reviews MLI CbCR 10.40-11.00 Break Refreshments 11.00 12.45 OECD Multilateral Instrument The role and legal status of the MLI The relationship between the MLI and double tax treaties Modus operandi of the MLI Summary of MLI provisions on: hybrid mismatches treaty abuse avoidance of permanent establishment status improving dispute resolution arbitration Reservations and alternative options Procedural rules, treaties covered, potential controversies, interpretation issues 12.45 14.00 Lunch 14.00 15.40 OECD Multilateral Instrument (continued) 15.40 16.00 Break Refreshments 16.00 17.00 The MLI in Practice An Example 3

Day 2 09.00 10.40 Substance Considerations in International Tax Planning Why is substance important in tax planning? Example of substance requirements in domestic law OECD: Action Plan on BEPS and substance EU: Anti Tax Avoidance Directive Other recent developments and the substance requirements Practical examples on how to manage substance requirements Residence and substance 10.40 11.00 Break Refreshments 11.00 12.45 Substance and Permanent Establishments When does substance create a permanent establishment? fixed place of business agency Practical examples and cases 12.45 14.00 Lunch 14.00 15.20 Substance in Global Value Chains Functions, assets and risks in supply chain structures Remuneration based on functions, assets and risks Notion of control Capacity to bear risks Contractual allocation of risks vs conduct Practical examples and cases 15.20 15.40 Break Refreshments 15.40 17.00 Substance in Global Value Chains (continued) 4

Day 3 09.00 10.40 Recent EU Anti-Tax Avoidance Developments BEPS from a European perspective OECD BEPS vs EU anti-avoidance agenda similarities and potential controversies impact on existing structures concerning EU Member States Implementation of: EU Anti-Avoidance Package Anti-Tax Avoidance Directive recommendation on tax treaties revised Administrative Cooperation Directive communication on external strategy for effective taxation VAT Action Plan transparency initiatives including CbCR and automatic exchange of tax rulings BEPS Actions 8-10 and the EU Joint Forum on Transfer Pricing EU Code of Conduct State aid decisions The relaunch of the common consolidated corporate tax base Proposed EU Directive on Double Taxation Dispute Resolution Mechanisms in the European Union 10.40 11.00 Break Refreshments 11.00 12.45 Unilateral BEPS-Motivated Domestic Law Measures Examples of unilateral post-beps measures (e.g. Australia, India, United Kingdom, United States) source country measures home country measures intermediate country measures Potential areas of controversy and dispute 12.45 14.00 Lunch 14.00 15.40 Transfer Pricing Post-BEPS Summary of BEPS Actions 8-10 application of the new OECD Guidelines on Chapter I, risk analysis and comparability factors 5

significant changes to the existing TP guidelines on intangibles application of profit split method Action 13 TP documentation and CbCR effects of post-beps TP methodology on supply chain analyses the role of funding and capital low-value-added intra-group services examples and cases The relevance and the impact of the OECD TP Guidelines on domestic law How countries look at and follow the OECD TP Guidelines 15.40 16.00 Break Refreshments 16.00 17.00 Case Study 6