Brazil: Tax Exemption In Exports Intermediated By “Trading Companies”

In August 30, Justice Luís Roberto Barroso from the Brazilian Supreme Court (STF) issued a decision according to which the controversy regarding the application of the exemption provided in article 149, § 2, I, of the Constitution to indirect exports – i.e., those made through the so-called “trading companies” – is a matter subject to “General Repercussion”1.

The trial of the subject will occur in Extraordinary Appeal n. 759,244, filed by a company in the […]

By |September 15th, 2013|

Romania: Managing The Tax Pitfalls Of Contractual Partnerships Structures

Contractual partnerships (such as joint ventures, consortia, etc.) are a viable structuring alternative for large scale projects in most market sectors, and in particular for infrastructure projects. Despite the encumbrance of having to deal with many and at times, inconsistent, compliance requirements, contractual partnerships can also bring certain tax benefits if they are rigorously and correctly planned from the beginning of the project.

Given the complex tax matters that contractual partnerships often pose in practice, […]

By |September 12th, 2013|

Massachusetts Rules Against Taxpayer On Treatment Of Intercompany Debt—Again

In what is becoming a trend, the Massachusetts Appellate Tax Board (the “ATB”) has issued yet another decision denying true debt treatment for an intercompany obligation. In National Grid Holdings, the ATB upheld assessments denying the taxpayer’s interest deductions for payments under deferred subscription arrangements (“DSAs”) on the basis that the DSAs did not qualify as true debt.1 The ATB also upheld the department’s decision to add-back the DSAs in computing National Grid’s2 net worth, which resulted […]

By |September 8th, 2013|