Course Description
Course 1: Interpretation and Application of Tax Treaties in Emerging Economies
The purpose of this seminar is to explore Double Tax Treaties´ (DTT) interpretation and practice in Latin America. The conventions in force continue to grow in importance as more countries enter into bilateral treaties, in particular non-OECD countries. Latin America has not escaped this trend; however the pace is slower than in other regions of the world. Even the treaty network of an OECD member such as Mexico has been quite modest as compared with other OECD members and relevant non members. DTT are interpreted and applied by domestic courts, without an international court or authority granting a uniform and consistent interpretation. This affords local authorities the ability to construe treaty provisions with a local perspective even if the text is a literal transcription of the OECD Model Convention (“MC”). Finally, Latin American countries have a long tradition of exclusive source taxation, which creates some tension with the principles underpinning the OECD MC, explains the preference for United Nation’s MC´s provisions, and resulted in the drafting of an unsuccessful Latin American MC (the Andean Pact Model). Through a review of case law, the course will seek to identify the extent to which the treaties in the region are applied in a manner that differs from international practice (evidenced by the Commentary to the OECD MC), and whether it is possible to view the region as a conceptual unity for this purpose. The analysis will start with a review of the text of various treaties in force to identify significant deviations from the OECD MC.
Panel on the views from Tax Administrators:
(These views do not necessary represent the positions of the relevant Tax Administrations)
- The Argentine case: Cecilia Ventura, Head of the Argentine international tax authority.
- The Brazilian case: Marcos Valadao, Receita Federal.
- The Chilean case: Ricardo Escobar, Director del Servicio de Impuestos Internos
- The Mexican case: Carlos Garza Cantú, Administrador Central Jurídico Internacional de Grandes Contribuyentes
Views from the taxpayer’s community:
- The Argentine case: Gabriel Gotlib
- The Brazilian case: Joao Dacio Rolim
- The Chilean case: Eduardo Lagos
- The Mexican case: Eduardo Michan
- The Uruguayan case: Patricio Martinelli
Instructors: Eduardo Baistrocchi (UTDT), David Cameron (Northwestern) and Tom O´Shea (Queen Mary University of London).
Course 2: Transfer Pricing in Emerging Economies: Controversial Issues
Transfer Pricing (“TP”) has emerged as one of the most controversial tax issues throughout the globe. It has enormous revenue raising potential from the tax administration standpoint and attractive planning opportunities for Multinational Enterprises (“MNEs”).
Since 2000, Latin American countries have followed the international trend by implementing transfer pricing regulations through domestic legislation. Some countries follow the OECD guidelines, although others do not.
Using Argentina, Brazil, Chile, Mexico and the US as case studies, the purpose of this seminar is to explore the manner in which major Latin American countries, their domestic legislation and tax treaties have approached this hot topic and the resulting particularities and practicalities in terms of planning and litigation, with particular reference to intangible property. US TP regulations and major cases--such as Glaxo– will also be analyzed and conclusions will be drawn from the viewpoint of emerging countries.
The seminar will also explore the effectiveness of a common TP planning approach for purposes of operations run in Latin America by a given MNE located outside Latin America. We will identify trends related to applicable penalty regimes, the use of the mutual agreement procedure provided by tax treaties, and the use of Advance Pricing Agreements, either unilateral or bilateral.
Instructors: Eduardo Baistrocchi (UTDT), David Cameron (Northwestern) and Tom O´Shea (Queen Mary University of London).
Panel on the views from prominent Tax Administrators:
(These views do not necessary represent the positions of the relevant Tax Administrations)
- The Argentine case: Cecilia Ventura, Head of the Argentine international tax authority.
- The Brazilian case: Marcos Valadao, Receita Federal.
- The Chilean case: Ricardo Escobar, Director del Servicio de Impuestos Internos
- The Mexican case: Carlos Garza Cantú, Administrador Central Jurídico Internacional de Grandes Contribuyentes
Views from the taxpayer’s community:
- The Argentine case: Violeta Maresca
- The Brazilian case: Joao Dacio Rolim
- The Chilean case: Eduardo Lagos
- The Mexican case: Eduardo Michan
- The Peruvian Case: Manuel del Río
- The Uruguayan case: Patricio Martinelli
Course 3: Taxation of Financing Structures in Emerging Economies
The purpose of this seminar is to analyze the main principles that govern the taxation of important equity and debt financing products. First, the analysis will focus on the distinction between debt and equity. Second, basic equity and debt structures will be studied, such as ordinary shares, preferred shares, irrevocable contributions, loans (including cases in which double taxation treaties apply), and negotiable obligations (either publicly or privately offered). The analysis will also focus on "hybrid" instruments (such as convertible negotiable obligations) and typical financing and securitization structures, such as private or public financial trusts, foreign trusts, mutual funds, leasing, etc. Finally, derivatives (options, swaps, forwards, etc) will be covered. The analysis of each financial structure or product will also address tax policy issues.
Instructors: Matias Olivero (Bruchou, Fernández Madero, Lombardi & Mitrani.)
Views from the taxpayer’s community:
- The Argentine case: Leandro Passarela
- The Brazilian case: Gilberto Ayres Moreira
- The Chilean case: Eduardo Lagos
- The Mexican case: Eduardo Michan
- The Peruvian Case: Sol Campos de Parry
- The Uruguayan case: Patricio Martinelli
Course 4: Tax Planning in Latin America: Implications in Asia, Europe, and the US
Tax efficient structuring of international transactions provides a unique opportunity to review systematically the interaction of United States and Latin American domestic and international tax systems. The purpose of this seminar is to address the major issues faced by tax practitioners when designing comprehensive tax planning solutions for multinational companies doing business in both the United States and Latin America. Case studies will be utilized to underscore the effect of treaties, domestic laws, and court decisions in several jurisdictions. The seminar explores principles applicable to the domestic taxation and international taxation of the United States and Latin America, in particular, permanent establishment/trade or business situations, double tax treaties, transfer pricing policies, foreign tax credit regulations, thin capitalization and CFC rules, worldwide harmonization, reorganizations and restructuring, and financing and debt restructuring. The seminar will also consider the role that European and Asian structures may play in the interaction of the United States and Latin America.
Instructors: Eduardo Meloni (Tenaris) y Horacio Dinice (Deloitte Argentina)
Views from the taxpayer’s community:
- The Argentine case: Martin Jovanovich
- The Brazilian case: Joao Dacio Rolim
- The Chilean case: Eduardo Lagos
- The Mexican case: Eduardo Michan
- The Peruvian Case: Manuel del Rio
- The Uruguayan case: Patricio Martinelli
