Avocado Roundup is a quick review of top tax, legal, and climate news stories. It’s written by humans.
- The coming into force early next year of the 15% global minimum tax, Pillar 2 of the OECD-brokered global tax reform, puts new light on an “urgent” need to also reform investment agreements, the United Nations Conference on Trade and Development says in a new report. Geneva-based UNCTAD said its research shows that in one-third of tax jurisdictions, profit-based fiscal incentives allow multinational affiliates to often pay less than a 15% rate. (UNCTAD.org)
- The Organization for Economic Cooperation and Development this week said new data show that multinational groups continue to pay low tax rates, even in jurisdictions that claim to have high corporate rates. The organization said the data are new evidence that global tax reform is needed. (OECD.org)
- The Paris-based OECD may be losing its grip on how that reform gets done. The UN General Assembly voted overwhelmingly Wednesday to adopt an African-led proposal that would start a process for the world body to claim a greater role in setting international tax policy. The vote came after years of complaints by developing countries that OECD-led tax policy negotiations is biased for wealthy countries and does not adequately take their interests or voices into account. (ICIJ) (Reuters)
France, Malaysia Update Transfer Pricing Rules
- France’s tax authority updated its official documentation to take into account a recent update of its transfer pricing guide aimed at small and medium-size enterprises. The update in particular adds new information on methods for pricing according to the arm’s length principal, and how those methods are verified. It addresses particularities of pricing intragroup services, disposals of intangible assets, and hard-to-value intangibles. (Impots.gouv.fr) (Bofip.impots.gouv.fr)
- Malaysia’s Ministry of Finance published updated transfer pricing rules on advanced pricing arrangements and income tax. The documents are in Malay and English. (ASEAN Briefing)
- French Economy Minister Bruno Le Maire blamed an “administrative bug” for the tax authority’s accidental mailing of residence tax assessments to thousands of children, giving them a Dec. 15 deadline to pay the bills, some of which are for thousands of euros. (Huffpost)
Laterals, Moves
- Kirkland & Ellis expanded its tax practice in London, getting partner Ceinwen Rees from Macfarlanes LLP. He was earlier at Debevoise & Plimpton. (Kirkland.com)
