Chief Counsel Advisory 201501013 Warns Foreign Fund Manager Activity In The U.S. May Constitute Trading In Stock And Securities For The Fund And Its Foreign Investors

In CCA 201501013 (1/2/2015) the Office of Chief Counsel of the IRS ruled that the lending and underwriting (stock distribution) activities of a foreign partnership (Fund) were considerable, continuous and regularly carried on, and therefore that such activities, conducted on its behalf through its U.S. agent (Fund Manager) under the particular facts before it, constituted the carrying on of a U.S. trade or business and the activities. The Fund did not, in its view, […]

By |February 9th, 2015|

UK: VAT Recovery On Pension Fund Expenses By The Employer

Following the judgment of the Court of Justice of the European Union (CJEU) in Fiscale Eenheid PPG Holdings BV (PPG), HMRC issued three policy announcements during 2014. The latest of these clarifies its change in policy on the recovery by employers of VAT on the costs of administration and management of pension schemes. HMRC has invited businesses to make retrospective claims where appropriate.

The CJEU held that PPG, an employer which had set up a […]

By |February 7th, 2015|

UK: The Statutory Residence Test

Residence is a hugely important concept for the taxation of individuals, as it has a profound effect on whether, and to what extent, they are subject to tax. In this note we introduce the very complex rules which now apply to determine residence for UK tax purposes.

Background

Prior to 6 April 2013, the rules for determining whether an individual was resident in the UK for tax purposes were largely based on cases decided around a […]

By |February 6th, 2015|