Any #taxtwitter know the answer? e. g. UK local filing requirement is only for a 'UK CBCR' (UK entity & looking down its subsidiaries). Is there a mechanism to enforce local reporting looking upwards to group?https://twitter.com/MForstater/status/1027836413889458176 …
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Replying to @MForstater
I'm not sure about the specific Vietnamese context, but the core problem of extraterritorial enforcement (when the local sub can't coerce the HQ) was a key struggle in BEPS exactly because there's no established enforcement mechanism (https://phdskat.org/2016/08/03/beps-moving-away-from-separate-entity/ …)
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Replying to @phdskat
Right... So that's why I'm wondering what the 'yay Vietnam has done *this*' story really means if *this*' isn't really possible?!
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Replying to @MForstater
I'm not sure - I don't know the specific local context. There could be something to it, I just know it was a problem they identified but couldn't really solve in BEPS
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Replying to @phdskat @MForstater
On first principles can't see how country A can oblige a firm resident outside that country, and not carrying on business directly, to comply with local laws. Analogous to recovery of tax debt in foreign country? I think
@AislingTax has the reference, was it an Indian case?1 reply 0 retweets 1 like -
Govt of India is UK case. Buchanan v McVeigh is Irish one. Very tricky if parent says no.
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@maxlawsontin do we know if the regulations are really working like this, or are companies just complying by explaining they don't have access to the information?pic.twitter.com/8YTU6BmvCF
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Replying to @MForstater @AislingTax and
Given the express confidentiality we may never know who, if anyone, has filed.... Think this the Reg may be more aspirational, with already compliant complying and others not.
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Its not unknowable though. The Vietnamese authorities, the OECD, possibly the WB etc... would be able to know (and say) the general trend in practice (and a case study might at least enquire...)
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