The Role of Taxonomy and Ontology in Semantic Layers - Heather Hedden.pdf
tax-rulings-in-belgium
1. Treasury Hot TopicTax rulings in Belgium - Secure the tax position of your treasury center www.pwc.com Philippe Dedobbeleer, Belgian Ruling Commission David Ledure, PwC
2. Agenda PART I: Functioning of the Ruling Commission PART II: Flavour of treasury centre rulings www.pwc.com
3. PART I: Functioning of the Ruling Commission 1. Introduction 2. History (in short) 3. Legal provisions 4. Pre filing 5. Formal Demand 6. Figures 7. Guidelines www.pwc.com
8. 2005: Installation of the Autonomous Office (law: 21 of June 2004) entitled to issue all advance decisions in tax matters (direct and indirect taxation)February 2011 7
10. 3. Legal Provisions Advance decision: a legal act whereby the Office for Advance Decisions determines, in accordance with the provisions in force, how the legal provisions will apply to a particular situation or transaction that has not yet produced any fiscal effect. February 2011 9
38. the fact that there is a formal demand going on in an other country or not (duplicate of the formal demand or decision to enclose)February 2011 18
39. 5. Formal Demand It is preferable that the client adds as much as information (documentation, explanations, motivation, …) as possible with the formal demand or with the request of pre filing. That gives the team a clear and clean preview of the operation or transaction. February 2011 19
51. The Office can request an opinion from the central tax administrationFebruary 2011 23
52.
53. Team leader: responsible for the drawing up of the proposition (every team member is responsible for his own part)
54. Coordinator: supervises the team and explains/defends the teams position to the responsible member of the boardFebruary 2011 24
55. 5. Formal Demand The responsible member of the board validates the proposition and defends the proposition at the meeting of the board Target period decision within 3 months February 2011 25
63. modification of the applicable legislation The decision is valid for 5 years (exceptions are possible) February 2011 27
64.
65. The local tax inspector receives a copy for verification of the correct implementation of the decision
66. Publication of the decisions on a no-name base (except: justified requests for non-publication) February 2011 28
67. 5. Formal Demand Areport is presented to theParliamentevery year (anonymity of applicants and parties concerned – statistics - the report is not made public) February 2011 29
76. Until 30.09.2009: public consultation concerning guide line – drafts on specific topics. February 2011 34
77. Conclusion Collaboration is absolutely necessaryMISSION : To be at service in a quick and flexible way to our clients February 2011 35
78. PART II: Flavour of treasury centre rulings 1. WHT exemption for intra-group financing companies 2. Waiver of NID 3. Waiver of debt 4. Transfer Pricing The subsequent slides represent PWC’s interpretation of some published rulings www.pwc.com
115. However, if it can be supported by factual elements, such individual credit profile can be influenced by implicit group support.
116. Various pricing sources can be taken into account to determine the credit spread / interest rate (group’s funding transactions, quoted bonds, etc.)Long term financing February 2011 48
130. The financial analysis will be based on US GAAP (for US group entities) and IFRS figures (non-US group entities)
131. Scope of the ruling does not cover the decision on the maturity of the credit line (this decision has to be motivated to the local tax inspector).Long term financing Decision 900.185 February 2011 50
132.
133. There are no internal comparables, except the “master account”. Therefore, the spreads are based on the master account conditions.Cash pool activitiesDecision 900.185 cash shortfall: Euribor 1 month + y Bps Participant CPL excess cash : Euribor 1 month - y Bps February 2011 51
138. Factoring servicesDecision 900.406 Factoring fee is updated on a yearly basis: [ Reference interest rate + pre-financing margin + Insolvency risk fee ] * (Average Days Outstanding /360) + administration fee of 20Bps February 2011 53
139.
140. Ruling for the payment of a guarantee fee for the formal guarantee provided by XX Other group members of the group Guarantee fee loan Interest payments Formal guarantee For loans or credit lines Bank (L) February 2011 54
141.
142.
143. The various entities are draw from this credit line. All these entities are jointly liable (cross guarantee)
144. A commitment fee is due by the parent company on the total undrawn amount