Working in different EU countries can create pension entitlement in multiple states
Germany on January 4th, 2011
Those working and making social security contributions in multiple EU states should take advantage of additional pension entitlements created in the home and host states. For many employees working in different EU countries for certain periods has become quite common; either for the same company on secondment or for different employers. In all cases social […]
New OECD Model Tax Convention – examining the new definition of “employer” in Article 15
on January 4th, 2011
The revised version of the condensed OECD Model brings welcome clarity to the meaning of employer for Article 15 (short term assignment) purposes. The OECD (Organisation for Economic Co-operation and Development) Council approved the 2010 Update to the Model Tax Convention in July 2010. Changes One of the most important parts of the 2010 update […]
UK Budget 2011
on January 4th, 2011
The UK Budget was presented on 23 March 2011. Summary of the Budget’s major changes The main points arising from this Budget are set out below: Revised legislation on “disguised remuneration” is included in the Finance Bill 2011 published on 31 March 2011. This extremely broad anti-avoidance legislation should be reviewed by all those delivering […]
Supreme Court rules on tax exemption for multiple payments for termination of multiple Group positions
France on January 4th, 2011
The Supreme Court clarifies anti-avoidance provisions. Sums paid to an employee or an executive on the termination of his duties may be tax exempt under certain limitations. A termination payment is tax exempt in whole when it does not exceed the minimum amount provided by the law or the applicable collective agreement. When the payment […]
Major consequences for French tax residents who fail to disclose foreign bank accounts
France on January 4th, 2011
Supreme Court confirms swingeing tax consequences of dealing with undisclosed accounts complies with EU law. French tax residents are subject to a general obligation to declare the details of their foreign bank accounts to the French tax administration. Failure to comply with this obligation results in a financial penalty of 1,500 EUR. When the bank […]
French Tax Residency Test
France on January 4th, 2011
Supreme Court emphasise importance of source income and non-marital family connections in maintenance of French residence. In a series of recent decisions, the Conseil d’Etat, the French Supreme Court clarified certain aspects of French tax residency test rules, which may be of interest for individuals who, while on short or long-term international assignment, keep certain […]
Dutch “Heineken case” extending transfer of undertakings legislation to posted workers has EU-wide impact
Netherlands on January 4th, 2011
On October 21, 2010 the European Court of Justice held that employees need not have an employment contract with the transferor in order for transfer of undertakings legislation to apply to them. Facts and circumstances Within Heineken the staff who are working within the group are hired via one staff corporation that acts as a […]
EU social security regulations expanded to cover non-EU nationals – UK and Danish opt-outs raise possibility of double liability
European Union on January 4th, 2011
Since January 1, 2011, the application of the European Social Security Regulation no. 883/2004 also applies to citizens of countries that do not belong to the European Union. In practice, this means that the regulations have also become applicable to: – persons who did not qualify for this regulation before, exclusively due to their nationality;– […]
HMRC to fine small and medium sized businesses up to £3,000 for failing to keep proper records
on January 4th, 2011
HMRC has announced that it is to target 40% of the UK’s 4.9 million small and medium sized businesses which engage in poor record keeping and where HMRC expect that unpaid tax is likely to be due. HMRC intend to investigate 50,000 businesses a year, starting in the second half of 2011, and to impose […]