Double non-taxation - CIOT comments

The Commission is looking at mis-matches using loopholes and argues that double non-taxation may distort the internal market by giving a competitive advantage over companies who are subject to ordinary taxation. The Commission has identified nine specific issues. These are:

1. Mismatches of entities
2. Mismatches of financial instruments
   
3. Application of double tax conventions leading to double non-taxation
   
4. Transfer pricing and unilateral advance pricing arrangements
   
5. Transactions with associated enterprises in countries with no or extremely low taxation
   
6. Debt financing of tax exempt income
   
7. Different treatment of passive and active income
   
8. Double tax conventions with third countries
   
9. Disclosure

Links:

• Consultation website: EN
• Consultation paper : (en)

The CIOT's submission, the consultation document and subsequent responses are available here in Adobe (pdf) format.

Technical Team

28 May 2012