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Vanessa Arruda Ferreira
Intertax
Volume 42, Issue 6/7 (2014) pp. 427 – 432
https://doi.org/10.54648/taxi2014041
Abstract
In this article the author presents the internal review by the Brazilian tax authorities of its position concerning the treatment of technical service income under tax treaties against the background of recent court decisions and the manifested intention of the Finnish government to denounce the Brazil-Finland tax treaty. It reveals that, although the Article 7 v. Article 21 battle may be close to an end, some elements in the internal review process suggest that taxpayers may face an old and thought-to-be-over battle again .
Extract
Debt and equity can be structured to resemble one another through hybrid financial instruments. In this contribution the emphasis is on the tax issues related to debt-flavoured equity instruments in international tax law. This most important example of such instruments is preference shares. The article introduces the financial construction of preference shares and presents the rationale behind the existence hereof. As the main contribution the article presents an analysis of the international tax law aspects of preference shares, which includes a comparative overview, emphasizing the domestic tax classification and treatment in the United States, Germany, and Denmark. Moreover, the classification and treatment according to EU tax directives and double tax treaties is presented.
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