The Multilateral Tax Treaty of 23 July 1990 concluded between the countries of the European Community has taken effect as of 1 January 1995.
This Treaty aims to suppress any double taxation in the event of an adjustment of the profits of an enterprise of a Contracting State associated with another enterprise of another Contracting State ; if conditions in financial or commercial relations between these two enterprises differ from those which would be made between independent enterprises, then profit which would have accrued to one of the enterprises may be included in the profits of that enterprise and taxed accordingly : such an adjustment may create a double taxation of the same profit in the two Contracting States. The Treaty also applies to relations between an enterprise and its permanent establishment which is treated as a distinct and separate enterprise.
If such double taxation arises, the Tax Authorities of the Contracting States concerned must try to reach a mutual agreement. If they fail, the competent authorities shall set up an advisory commission charged with delivering its opinion on the elimination of the double taxation in question. They may then take a decision which deviates from the advisory commission's opinion but, if they fail to reach agreement, they shall be obliged to act in accordance with the commission's opinion .
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. For additional information contact Claire Acard on +33 (1) 55 61 10 10. The members of ARCHIBALD ANDERSEN Association d'Avocats (S.G. Archibald and Arthur Andersen International) are registered with the Hauts-de-Seine Bar.
Copyright Mondaq Ltd 1995 Tel +44 171 820 7733.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
By 27 December 2016, the Croatian Parliament needs to implement the Directive 2014/104/EU on antitrust damages actions, which is expected to streamline the procedure for private individuals and businesses to sue for damages...
The European Commission recently published its preliminary report on the E-commerce Sector Inquiry, identifying potential competition concerns in cross-border e-commerce of digital content and consumer goods.
The German government has recently published a bill that would significantly amend the criteria for determining whether an M&A transaction is subject to German merger control.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).