Martin Zetter reviews relevant Danish and Dutch cases, plus interesting guidance issued by the US IRS
With so much talk of BEPS there is a danger of losing touch with what is happening around the world. So this month I am pausing from comments on the digital economy and preventing treaty abuse to look at some country level developments.
I would like to begin with a case from Denmark (Landsskatteretten SKM2014.53.LSR). The Danish subsidiary of the Bombardier group paid a spread of 1.15% on loans it received in a cash pool arrangement to a Swiss affiliate that administered the pool. It received a spread of 0.5% below the overnight reference rate on the funds it deposited. Bombardier Denmark tended to deposit surplus cash rather than borrow from...
