Adverse effects of the PPT rule

Adverse effects of the PPT rule In the EU context, the ECJ case law cannot be ignored to interpret anti-abuse provisions such as the PPT rule. Apart from settle case law, I considered the recent decisions on French and German anti-abuse rules confirming the ECJ’s adherence to the familiar wholly artificial arrangement test. Abuse is considered to exist if the setting up of an intermediate or other holding company qualifies as wholly artificial arrangements. This is the case if the facts show that setting up or maintaining the holding company does not correspond to the freedom of establishment’s intended aim of promoting economic integration. For this to exist, a company must pursue genuine activities for an indefinite period through a fixed establishment in another Member State. This in turns requires the existence of premises, staff and equipment to carry out economic activities. The question of what facilities can be considered to constitute a sufficient physical presence depends on the nature of th e activities pursued. These facilities must in any event be proportionate for the activities that are to be carried out. Instead, passive activities, such as certain holding company activities, generally require few facilities. The further requirement is for the entity to perform genuine economic activities. Passive activities can in principle satisfy this requirement, unless the activities are so marginal that they can no longer be regarded as bearing any relationship to economic reality. It could potentially be concluded from the ECJ case law that pursuing passive activities without any accompanying provision of services does not constitute a genuine economic activity. The absence, therefore, of any services provided by the intermediate or other holding company to a group company or third party could suggest the lack of a link to economic reality. If arrangements are to qualify as abuse – and, therefore, as lacking an establishment – it also has to be determined whether the parent company was objectively seeking to obtain a tax advantage by setting up the secondary establishment. This will be the case if the facts demonstrate that the arrangements could not have any purpose other than a wish to escape tax. An aspect of critical importance is the link that a company has with the host Member State through its pursuit of genuine economic activities, whereby the term ‘genuine economic activities’ has to be interpreted widely. Even activities of a more passive nature, such as certain holding company activities, can in principle be covered by this term, providing the intermediate or other holding company has sufficient physical presence to perform the activities and the arrangements have not been put in place solely for the purposes of avoiding tax. Finally, I tried to exemplify the adverse effects that the PPT may generate in practice by simulating the application of the rule to an equity wall structure. I showed the reasons why the PPT rule may represent a stronger weapon in the hands of tax authorities.

Discussion 10 Essay Example | Topics and Well Written Essays - 250 words

Discussion 10 - Essay Example With time "junk DNA" or the "non coding DNA" has been considered to play significant regulatory roles in modulating the performances or actions of the "coding DNA". Knowledge about this relationship is highly imperative as it depicts the behavior of gene in artificial insertion of unknown genes. Only a few studies could understand the role of this relationship in structural formation, but an understanding about the regulation is yet to interpret. Since non-coding genes were not assigned any function but they are present in the cell carries a deep meaning. If they do not play any role, the sequence of syllables should be random, which is not. This is a great subject of research as the "junk DNA" possess some kind of coded information which scientists are trying to decode. Potentially, some of these genes are thought to possess repetitive patterns which may be associated with cancer. Role played by Junk DNA- Harvard Medical School has reported that "junk DNA" in yeast has some regulatory role in controlling nearby genes. They may play important role in controlling gene expression during developmental process. They may act as enhancers or silencers for transcription of proximal genes. They may regulate translation process. Thus, "junk DNA" is not actual garbage but it is a way to conserve cellular energy. As these genes play vital role in modulating coding sequences, they are no more considered as junk

The essence of Made in Canada Case Study Example | Topics and Well Written Essays - 2750 words

The essence of Made in Canada - Case Study Example From these reasons, it is clear that quality plays a huge role in making people buy Canadian made products, including buying Paderno’s products. â€Å"Made in Canada† More than ever, the social consciousness of consumers is pushing organizations to promote strategies aimed at corporate social responsibility (Henein & Morissette 49). In the case of Paderno, this should push them to showcase their products as having local characteristics. Even if their products are not made locally, such as the cheaper products they import, they can impress the consumers by laying emphasis on the local features that their value chain possesses, such as product assembly and design, as well as development and research. Companies should also highlight their impact on the local economy in a creative manner, such as with regards to creation of jobs, impact of product purchase on the local economy, or the local partners that they involve in various processes (Henein & Morissette 49). Consumers in Canada, as well as other developed countries, are increasingly searching for products that are made in Canada. These reasons are because of various consumer trends. One of these trends has to do with the buy local movement with most consumers now shopping closer to home (Henein & Morissette 50). They are also looking for goods that are locally made because they are aware that buying goods made in the country are a better choice both environmentally and ethically. Rising awareness on health may also impact Paderno’s Made in Canada brand as a population that is gradually ageing becomes more aware of their cookware choices and how they are ergonomically designed. Most Canadians now consider the impact that products will have on their health, especially food and, more recently, cookware, and are more willing to pay higher prices for products they trust, which are mostly Canadian made products. Canadian consumers are also increasingly frugal with their money as incomes stagnate , which means that they are more cautious about spending. As more Canadians live on fixed incomes, they will begin to turn to the best value for their money, which is Canadian made. Consumers are also showing an increased desire for goods that are customized, which means they are searching for what exactly they want. This, in most cases, is Canadian made. Finally, the internet culture has seen many Canadian consumers doing their shopping online, which, coupled with blogs that are increasingly talking about buying Canadian made products, has made it essential for companies to insist on the â€Å"made in Canada† brand (Henein & Morissette 50). The internet factor is especially important in perpetuating the Made in Canada brand since most people will first go to the internet when researching on a particular product (Henein & Morissette 51). At least 70% of consumers in Canada have reported that internet reviews of products, particularly those made in Canada,