International Taxation of Banking

Banking is an increasingly global business, with a complex network of international transactions within multinational groups and with international customers. This book provides a thorough, practical analysis of international taxation issues as they affect the banking industry.

Thoroughly explaining banking’s significant benefits and risks and its taxable activities, the book’s broad scope examines such issues as the following:

• taxation of dividends and branch profits derived from other countries;
• transfer pricing and branch profit attribution;
• taxation of global trading activities;
• tax risk management;
• provision of services and intangible property within multinational groups;
• taxation treatment of research and development expenses;
• availability of tax incentives such as patent box tax regimes;
• swaps and other derivatives;
• loan provisions and debt restructuring;
• financial technology (FinTech);
• group treasury, interest flows, and thin capitalisation;
• tax havens and controlled foreign companies; and
• taxation policy developments and trends.

Case studies show how international tax analysis can be applied to specific examples. The Organisation for Economic Co-operation and Development Base Erosion and Profit Shifting (OECD BEPS) measures and how they apply to banking taxation are discussed. The related provisions of the OECD Model Tax Convention are analysed in detail.
    
The banking industry is characterised by rapid change, including increased diversification with new banking products and services, and the increasing significance of activities such as shadow banking outside current regulatory regimes. For all these reasons and more, this book will prove to be an invaluable springboard for problem solving and mastering international taxation issues arising from banking. The book will be welcomed by corporate counsel, banking law practitioners, and all professionals, officials, and academics concerned with finance and its tax ramifications.