The August, 2015 issue of Direct Tax Amicus features an article titled ‘Jurisprudence of International Tax Law’. In this article the author discusses how the Inter-Nation Equity concept has played a pivotal role in the development of international tax law as it stands today. According to the author, development of international tax law has contributed to the free flow of international trade and commerce between States and helped in States achieving newer heights in mutual economic cooperation and relationship.
Notifications & Circulars section of this issue covers notification issued by Central Government on availing additional depreciation in certain backward areas as an incentive to taxpayers to set up new industrial undertaking besides Notification No 62/ 2015 requiring Foreign Financial Institutions in India to report information about US account holders to the Central Government which will, in turn, pass on the information to the US Government.
Ratio Decidendi in August 2015 issue of Direct Tax Amicus covers Supreme Court judgment upholding that the High Court, being a Court of Records under Article 215 of the Constitution, has inherent power to review its own order and Income Tax Act does not restrict applicability of Code of Civil Procedure to an appeal filed under Section 260A of the IT Act. Supreme Court in another ruling has held that landing and parking charges paid by airlines are not subject to withholding tax. Further, Kerala High Court decision holding that short deduction of tax would lead to disallowance of expenditure and ITAT, Bangalore decision that once the taxpayer obtains a certificate under Section 195(2) of the IT Act for not withholding tax on certain payment, he cannot be subsequently held to have ‘failed’ to withhold tax on such payment are also some of the caselaw covered under this section.
Australia to introduce Mandatory Financial Reporting; Brazil introduces BEPS initiatives; Amendments suggested to US Model Convention are the three interesting news covered under News Nuggets section of Direct Tax Amicus, August 2015.August, 2015/Issue-13