| Tittel: | Tax treaty exemption from Norwegian CFC rules | | Ansvar: | Blazej Kuzniacki | | Forfatter: | Kuzniacki, Blazej  | | Materialtype: | Artikkel - elektronisk | | Signatur: | Skatterett | | Utgitt: | Oslo : Universitetsforlaget, 2014 | | Omfang: | s. 141-172 | | Serie: | Skatterett ; 2/2014 | | Innhold: | The Norwegian CFC rules allow taxing income of the controlled foreign companies on ongoing basis in the hands of their Norwegian participants – unlike the ordinary taxation of interests in companies. This constitutes a disadvantage for companies resident in Norway which have a controlled company located in a low tax jurisdiction within or outside the EEA area. Such disadvantage hinders the exercise of freedom of establishment by the Norwegian resident companies, dissuading them from establishing, acquiring or maintaining a subsidiary in a Member State in which the latter is subject to a lower level of taxation. It may also leads to infringement of other fundamental freedoms, such as the freedom to provide services and the free movement of capital. Furthermore, one of fundamental principles in tax treaties based on the OECD MTC, as these signed by Norway, is that each taxable company according to the tax laws of the Contracting State is treated as a separate taxpayer. The application of the CFC rules may intrigue this principle. In order to avoid that the CFC rules becomes inconsistent with the EEA law and tax treaties, the Norwegian legislator has introduced two exemptions from the application of the CFC rules in a tax treaty and EEA law situation. This article analyses the tax treaty exemption. | | Del av verk: | Skatterett 2/2014 |
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