[World Tax News] Luxembourg releases draft bill for Public CbC Reporting and more

Editorial Team – [2023] 148 taxmann.com 78 (Article)

World Tax News provides a weekly snippet of tax news from around the globe. Here is a glimpse of the tax happening in the world this week.

1. Luxembourg releases draft bill for Public CbC Reporting

Luxembourg government has presented a draft bill in parliament for introducing Public Country-by-Country (CbC) reporting.

The draft bill aligns with the Directive (EU) 2021/2101, specifying a reporting threshold of annual consolidated revenue of EUR 750 million in each of the past two consecutive financial years. The public CbC report must be made available to the public for free within 12 months after the relevant year’s close, either on the website of the ultimate parent, relevant subsidiary, or branch.

However, Luxembourg is also taking the option provided in the Directive that the public CbC report does not need to be published on the website of the parent/subsidiary/branch if the public CbC report has been submitted and published on the Trade and Companies Register website.

The current draft mandates Public CbC reporting for financial years starting on or after 22nd June 2024.

Source: Bill 8158

2. New Zealand has released new guidance on tax avoidance and the interpretation of GAAR

The New Zealand Inland Revenue has issued a new Interpretation Statement (IS) 23/01 that pertains to the interpretation of the General Anti-Avoidance Provisions (GAAR) contained under Sections BG 1 and GA 1 of the Income Tax Act 2007. This new guidance replaces a prior interpretation statement issued by the Govt. in the year 2013, namely IS 13/01.

The guidance explains the Commissioner’s view of the law on tax avoidance in Aotearoa, New Zealand and is grounded on the Supreme Court’s stance as expressed in Ben Nevis Forestry Ventures Ltd. v. Commissioner of Inland Revenue [2008] NZSC 115.

The guidelines outline the method that the Commissioner employs to implement Section BG 1, and it also details how the Commissioner can take action under Section GA 1 to neutralize any tax benefit that an individual derives from or via a tax avoidance scheme.

The statement is also relevant to the general anti-avoidance provision in the Goods and Services Tax Act 1985

Source: Interpretation Statement

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