Thursday , April 2, 2026 |   22:42:38 IST
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI
About Us Contact Us Newsletters
 
NEWS FLASH
 
I-T-Interest income earned on deposits maintained due to business or statutory requirements where inextricably linked to business activity, is eligible for deduction: ITAT (See Breaking News) I-T - Section 163(1)(c), a person can be treated as agent of non-resident only if non-resident receives income directly or indirectly from or through such person or if there exists a business connection: ITAT (See Breaking News) DTAA - Virtual Service Permanent Establishment (VSPE) cannot be read into provisions of DTAA, as Article 5 of India-UK Treaty makes no provision for VSPE: ITAT (See Breaking News) I-T - Assessment order passed after expiry of time limit stipulated in section 153 is barred by limitation and is invalid in law, even if it adheres to one-month timeline within section 144C(13): ITAT (See Breaking News) I-T - If assessee possesses sufficient own interest-free funds that exceed interest-free advances, it is presumed that advances were made from these own funds, and no disallowance of interest on borrowed funds can be made: ITAT (See Breaking News) Residency of Binny Bansal of Flipkart-fame - ‘Meaning of Being outside India'! (See TII Edit) TP - Section 92BA(i), governing specified domestic transactions, stands omitted without any saving clause & therefore, is to be treated as non-existent in statute - additions based on Section 92BA quashed: ITAT (See Breaking News) TP - Transfer pricing adjustment on international transaction involving payment of interest to AE is not warranted if assessee has already suo motu disallowed entire interest amount u/s 94B: ITAT (See Breaking News) TPO - In case involving reference to Transfer Pricing Officer, time limit for completing assessment is extended by 12 months as per Section 153(4): ITAT (See Breaking News) I-T - Appeal against a final assessment order lies before the Commissioner Appeals, and not directly before the Tribunal: ITAT (See Breaking News) I-T - Pure error of law based on plausible understanding of law, if income was fully disclosed in accounts and neither concealed nor inaccurately reported, does not attract Sec 271(1)(c): HC (See Breaking News) I-T - Period of limitation for passing final assessment order u/s 144C(13) must be determined by combined and harmonious reading of Section 144C and Section 153: ITAT (See Breaking News) TP - As is trite law, ALP of royalty payments to AEs should be determined using the TNMM method: ITAT (See Breaking News) DTAA - In absence of statutory time stipulation, delayed filing of Form 10F cannot be treated as fatal defect so as to deny treaty benefits, particularly when tax residency & eligibility under DTAA are not in dispute: ITAT (See Breaking News) I-T - Competent Authority shall issue Nil Tax Withholding Certificate within stipulated time, if delay will practically render assessee's case infructuous and will be of no avail as F.Y will be over: HC (See Breaking News) I-T - Final assessment order passed beyond time limit prescribed u/s 153 is barred by limitation and is invalid, even if internal timelines within Sec 144C procedure were adhered to: ITAT (See Breaking News) DTAA - Since payment for standard transponder services does not involve any secret process, it is not taxable as royalty in India under Treaty: ITAT (See Breaking News) INTL - Expenditure incurred wholly & exclusively for business purpose cannot be disallowed merely because it was not necessary or profitable: ITAT (See Breaking News) I-T - Section 144C and Section 153 are not mutually exclusive but are mutually inclusive and must be read harmoniously: ITAT (See Breaking News) TP - Mere reclassification of Compulsorily Convertible Debentures into equity & debt components under Ind-AS does not alter their intrinsic nature as debt instruments until actual conversion: ITAT (See Breaking News) TP - Addition framed TPO invalid where transaction in question is covered by binding Advance Pricing Agreement between assessee & CBDT as per Section 92CC: ITAT (See Breaking News)
 
TII SEARCH
 
 
   
Home >> News Brief
 

IMF moots tax neutrality ahead of amendment to Chinese bankruptcy law
By TII News Service
Aug 28, 2019 , Washington DC

    
THE International Monetary Fund recently released a research paper calling for tax neutral treatment in China's Enterprise Bankruptcy Law (EBL). Enacted in 2007, EBL is expected to be amended with the Government forming a committee in June 2019 to draft the amendments to EBL. The Paper is titled Selected Issues paper on the People’s Republic of China and urged that a tax neutral treatment for insolvency and debt restructuring in the law would contribute to a more efficient restructuring process.

It also mentions that along with reforming the law, enhancing the capacity of the judiciary to handle insolvency cases is needed. An effective application of the amended law will also help prevent unwarranted interventions in bankruptcy proceedings that could prevent the start of eligible cases. As per the paper, released on August 23, 2019, EBL generally follows best international practices but is “very concise with many gaps, leaving it subject to uneven interpretation and implementation”. As a result, EBL does not provide adequate guidelines for many complex problems in insolvency, a growing problem given China’s deadline to resolve “zombies” by 2020. Hence the paper suggests that the amendments to law should focus on providing greater clarity and details on the scope of the law’s application; the conditions for bankruptcy and bankruptcy procedures.

The paper focused on China’s shrinking current account surplus due to multiple reasons. It noted that China’s current account surplus has declined significantly from its peak in 2008. While part of the sharp decline in 2018 is cyclical, the trend over the past decade is largely structural, driven by a widening of the services deficit and a moderation of the surplus in goods trade. Even at the bilateral level, the trend has been towards a greater balance, with declining goods trade surpluses with the US and the EU; and declining deficits with Japan, Korea and Taiwan, Province of China. With China’s growth model moving from exports towards consumption, the trend toward a smaller surplus or even a small deficit is likely to stay, with far reaching implications for China and the rest of the world, it adds.

 
 
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI TII
  • DTAA
  • Circulars (I-T Act, 1922)
  • Limited Treaties
  • Other Treaties
  • TIEAs
  • Notifications
  • Circulars
  • Relevant Sections of I-T Rules,1962
  • Instructions
  • Administrative Orders
  • DRP Panel
  • I-T Act, 1961
  • MLI
  • Relevant Portion of I-T Act,1922
  • GAAR
  • MAP
  • OECD Conventions
  • Draft Guidelines
  • DTC Bill
  • Committee Reports
  • FATCA
  • Intl-Taxation
  • Finance Acts
  • Manual on EoI
  • UN Model Taxation
  • Miscellaneous
  • Cost Inflation Index
  • Union Budget
  • Information Security Guidelines
  • APA Annual Report
  • APA Rules
  • Miscellaneous
  • Relevant Sections of Act
  • Instructions
  • Circulars
  • Notifications
  • Draft Notifications
  • Forms
  • TP Rules
  • APA FAQ
  • UN Manual on TP
  • Safe Harbour Rules
  • US Transfer Pricing
  • FEMA Act
  • Exchange Manual
  • Fema Notifications
  • Master Circulars
  • Press Notes
  • Rules
  • FDI Circulars
  • RBI Circulars
  • Reports
  • FDI Approved
  • RBI Other Notifications
  • FIPB Review
  • FEO Act
  • INTELLECTUAL PROPERTY
  • CBR Act
  • NBFC Report
  • Black Money Act
  • PMLA Instruction
  • PMLA Bill
  • FM Budget Speeches
  • Multimodal Transportation
  • Vienna Convention
  • EXIM Bank LoC
  • Manufacturing Policy
  • FTDR Act, 1992
  • White Paper on Black Money
  • Posting Policy
  • PMLA Cases
  • Transfer of Property
  • MCA Circular
  • Limitation Act
  • Type of Visa
  • SSAs
  • EPFO
  • Acts
  • FAQs
  • Rules
  • Guidelines
  • Tourist Visa
  • Notifications
  • Arbitration
  • Model Text
  • Agreements
  • Relevant Portion of I-T Act
  • I-T Rules, 1962
  • Circulars
  • MISC
  • Notification
  • About Us
  • Contact Us
  •  
     
    A Taxindiaonline Website. Copyright © 2010-2025 | Privacy Policy | Taxindiainternational.com Pvt. Ltd. OPC All rights reserved.