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William Byrnes (Texas A&M) tax & compliance articles

Archive for October, 2019

William Byrnes joins SDG project for taxation supported by the UN’s International Tax Committee

Posted by William Byrnes on October 29, 2019

William Byrnes of Texas A&M University’s Law School was invited to participate in the October 2019 4-day session of the United Nations’ International Tax Committee of Experts at its Geneva HQ2 followed by the day-long session of the international tax committee of the International Chamber of Commerce (the “ICC”), as well as the April 2019 UN international tax committee meeting in New York.

“150 plus countries, led by China, India, and Brazil, that are not members of the Organization of Economic Cooperation and Development (the “OECD”) which is led by the G7, have found their voice and are shaking up the international system for taxing business income,” said William Byrnes.

William Byrnes UN credentials

“At the United Nations Committee meetings, the future sharing of corporate profits among trading nations is being decided, from old industries such as Oil & Gas, to new ones such as digital advertising, big data, and cloud storage,” continued Byrnes. “Texas A&M Law, through my work with Dr. Lorraine Eden, is one of a very few public research institutions with a seat at the proverbial table, which I think is a testament to the impact of our research and mutual reputation.”

“Last October Dr. Lorraine Eden and I were invited to present our research on government tax agreements to the UN’s UNCTAD World Investment Forum, attended by over 4,000 national and industry leaders.  That event started a conversation that led to an invitation to the sustainable development goals for taxation conference sponsored by the University of Barcelona in collaboration with the UN, the OECD, the Spain and Netherlands Tax Authority, the Inter-American Center of Tax Administrations, and the Conféderation Fiscale Européenne.”

“I learned at this meeting that I have been appointed as a research scholar to the project of the 2030 Addis Ababa Sustainable Development Goals for the area of taxation, which is supported by the UN International Tax Committee and led by Prof. Eva Andrés Aucejo of the University of Barcelona,” shared William Byrnes.  “The team members will begin our research for an international tax cooperation convention that may be discussed among countries seeking a sustainable balance among capital exporter and importer countries, natural resource rich countries, entrepreneur countries, and market countries.”

Posted in international taxation, OECD | Leave a Comment »

State Aid: What is the Arm’s Length Return for Starbucks Netherlands?

Posted by William Byrnes on October 28, 2019

For the complete paper see https://ssrn.com/abstract=3464990

The crux of the legal issue is the EU Commission’s contention, required as the third Starbucks_Coffee_Logo.svgcondition for a finding of State aid, that the Netherlands-Starbucks APA conferred a selective advantage on Starbucks’ Netherlands manufacturing subsidiary (SMBV, aka the “roasting operation”) that resulted in a lowering of SMBV’s tax liability in the Netherlands as compared with what SMBV would have paid under the Netherlands’ general corporate income tax system dealing with third parties.

And the crux of the dispute that determines the legal issue outcome is whose choice of transfer pricing method (the Commission or The Netherlands/Starbucks) is the most reliable.

However, the most interesting aspect of the controversy is how to allocate the residual between SMBV and Starbucks intermediary IP management limited partnership? In a broader framework, not part of the analysis contemplated by the applicable 1995 OECD Transfer Pricing Guidelines, is how to allocate the residual among Starbucks’ global value chain. For the complete paper see https://ssrn.com/abstract=3464990

Posted in Transfer Pricing, Uncategorized | Leave a Comment »

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