Achromic Point

Session 1: Introduction to International Tax:

 When are the principles of International Tax Attracted?

 Does International Tax apply to you if you do not have an office offshore?

• International Tax Planning:

 International tax structuring for global businesses

 Case study of India - Mauritius DTAA

 How Foreign Tax Credit Works

 International Tax Structuring and Tax Havens

 Why the amended Mauritius India DTAA will not impact foreign investment

 Do Commissionaire arrangements constitute a PE?

Session 2: International Tax Treaties:

• Double Taxation Avoidance Agreements:

 Article 1 – Person

 Article 2 - Taxes Covered

 Article 3 - General Definition

 Article 4- Resident

 Article 5 - Permanent Establishment

 Article 6 - Income from Immovable Property

 Article 7 - Business Profit

 Article 8 - Shipping, Inland Waterways Transport and Air Transport

 Article 10 – Dividend

 Article 11 – Interest

Session 3: International Tax Treaties:

 Article 12 - Royalty and Fees for Technical Services

 Article 13 - Capital Gains

 Article 21 - Other Income

 Article 23 - Methods of Elimination of Double Taxation

 Article 24 - Non-Discrimination

 Article 25 - Mutual Agreement Procedure 

 Article 26 - Exchange of Information

Session 4: BEPS and MLI:

• Transparent Entities, Dual Resident Entities and application of methods of elimination of double taxation because of such mismatch [Action Plan 2 of BEPS] [Article 3, 4, and 5 of MLI]

• Prevention of Treaty abuse - Preamble to the DTA, Principal Purpose Test (PPT), Limitation of Benefit [Action Plan 6 of BEPS] (Articles 6 and 7 of MLI) 

• Interplay between GAAR and PPT

• Other anti-avoidance measures [Dividend and Capital Gain on immovable property [Action Plan 6 of BEPS] (Articles 8 and 9 of MLI) 

• [Action Plan 7 of BEPS] [Article 12,13 of MLI]

• Artificial avoidance of PE status through specific activity exemptions and anti-fragmentation rules, Preparatory and Auxiliary activity Exemption [Articles 13 and 15 of MLI] 

• Splitting of contracts [Construction PE – Articles 14 and 15 of MLI

Session 5: Guiding Concepts of Transfer Pricing:

• Applicability of TP provisions

• Scheme of TP provisions in India:

 Associated enterprise

 International transaction

 Relevance of function, asset and risk (FAR) 

 Selection of most appropriate methods 

o Comparable uncontrolled price method (CUP)

o Resale Price Method (RSM)

o Cost-Plus Method (CPM)

o Profit Split Method (PSM)

o Transactional net Margin method (TNMM)

 Selection of Tested party

 How to choose an appropriate Profit Level indicator (PLI)

 Base Erosion and Profit Shifting (BEPS) Compliances

• Accountant’s report 

• Dispute resolution mechanism 

• Secondary adjustment

• Limitation of interest deduction- Section 94B

Session 6: Penalties and Dispute Resolution:

• Penalties under Indian domestic law

• Tax avoidance and tax evasion

• General Anti-Avoidance Rule (GAAR) and Special Anti-Avoidance Rule FATCA

• Information exchange provisions

• International cooperation under DTAAs

• Tax Information Exchange Agreements (TIEAAs)

• How to safeguard against future regulatory risks - Authority for Advanced Rulings (AAR)

• Settlement of disputes with tax authorities

• Transfer pricing disputes in offshore jurisdictions