VAT and financial servies comparative law and economics perspectives

Robert F. van Brederode
Richard Krever Editors

VAT and Financial
Services
Comparative Law and Economic
Perspectives


VAT and Financial Services


Robert F. van Brederode
Richard Krever
Editors

VAT and Financial Services
Comparative Law and Economic Perspectives

123


Editors
Robert F. van Brederode
Crowe Horwath LLP
Atlanta, GA
USA

ISBN 978-981-10-3463-3
DOI 10.1007/978-981-10-3465-7

Richard Krever
Monash Business School
Monash University
Melbourne, VIC
Australia

ISBN 978-981-10-3465-7

(eBook)

Library of Congress Control Number: 2016963325
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Preface

For over half a century, countries have struggled to reconcile the principles and
design of a VAT or GST system and the unique features of financial supplies.
A VAT taxes the value of transactions, which is relatively straightforward where
explicit fees are charged, but intriguingly difficult where implicit fees are charged as
is the case with some types of financial services. At the same time, the VAT has
mechanisms to remove tax from business-to-business transactions involving no
final consumption but these, too, are difficult to apply to some types of financial
services. The fundamental design features of the tax also appear problematic in
terms of the goal of removing tax from pure savings in the form of financial
instruments. Relieving financial services from the tax altogether runs counter to the
character of the VAT as a broad-based tax levied on all final consumption. Equally
at odds with the design principle of the VAT is imposing a limited tax on
business-to-business transactions along the supply chain or imposing a limited tax
on pure savings. No VAT or GST systems have yet achieved these objectives
consistently.
Financial services constitute an important and large economic sector and the
application of VAT to financial services is particularly complex and has given rise
to a multitude of problems and selective solutions. At the same time, financial
services are becoming increasingly globalized. The growth of cross-border trade
and investment has led to financial service providers providing global services to
entire company groups. Consumers, too, have access to cross-border services from
internet gambling to investment and personal banking facilities. With the increasing
number of free trade agreements, there is pressure on governments to simplify
oversight regulation to allow foreign financial service providers such as banks and
insurance companies access to their markets. This will exacerbate difficulties arising
from inconsistent treatment of financial services across different VAT regimes.
The difficulties of taxing financial services are well known among specialist

academics and policy-makers; absent is an overview of the problems and possible
solutions in a single, comparative study. Missing, too, is a study combining theory
and practice that financial institutions and their advisors can use to plan global
operations and develop advocacy positions for reform in their home and operational
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Preface

jurisdictions. This volume seeks to fill these gaps, acting as a helpful reference for
policy-makers tasked with (re)designing VAT rules for financial services, and for
academics and practitioners when providing insight and counsel on how VAT is
applied to different types of financial services.
The volume provides an overview of the VAT treatment of financial supplies in
the European Union, covering 27 jurisdictions that apply variations of the traditional VAT under a common EU-mandated umbrella, as well as a selection of
countries applying modern VATs with remarkably divergent approaches to the
treatment of financial supplies
This volume is divided into four parts. Part I provides the general introduction to
this study. It first lays out the scope of and defines the purpose of the collaborative
research. It then demonstrates the consequences of, and problems associated with,
partial taxation of financial services, as is the practice in most jurisdictions.
Since VAT is aimed at taxing personal consumption, it is essential to determine the
nature of consumption and define this concept, and the second chapter offers two
theoretical approaches, which yield different tax bases. Parts II–IV deal with the
application of VAT to different types of financial services. Part II focuses on loan
intermediary services, starting with a theoretical chapter, followed by treatises on
how VAT is applied to such services in nine jurisdictions: Argentina, Australia,
Brazil, Canada, China, the European Union, Israel, New Zealand, and South Africa.

Part III deals with financial investments, again starting with a theoretical chapter,
followed by two jurisdictional chapters, covering the European Union, and South
Africa. In addition, there are chapters explaining the intricacies of VAT as it relates
to cost-sharing arrangements and crowdfunding. Part IV focuses on financial
pooling services: one chapter is dedicated to gambling and three jurisdictional
chapters cover the VAT treatment of insurance services in Australia, the European
Union and Singapore.
To facilitate comparisons between the approaches of the selected jurisdictions,
all authors followed guidelines as to the topics to be covered in each chapter. The
chapters do not mirror one another in terms of structure, however, which reflects the
very different taxation approaches used in different jurisdictions.
The bibliography is organized separately for each chapter and found directly
following each individual chapter. A register of case law is also organized by
chapter and found in consolidated form after Part IV.
This volume is current with literature and case law through September 2016.
The editors are grateful to Peter Mellor for his invaluable assistance with the
preparation of this manuscript for the publisher. We would also like to extend our
gratitude to Crowe Horwath LLP for sponsoring the conference which gave rise to
this volume, held at the Monash University Centre in Prato, Italy, allowing the
authors to present and discuss the first versions of their respective contributions.
Atlanta, GA, USA
Melbourne, VIC, Australia

Robert F. van Brederode
Richard Krever


Contents

Part I

1

Theories of Consumption and the Consequences of Partial
Taxation of Financial Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Robert F. van Brederode and Richard Krever
1.1 The Concept of Consumption . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.2 The Consequences of Partial Taxation of Financial Services . . .
1.2.1 Mixed and Composite Supplies . . . . . . . . . . . . . . . . . . .
1.2.2 Change of Use. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.2.3 Sale of Used Business Assets . . . . . . . . . . . . . . . . . . . .
1.2.4 Input Tax Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.3 The Challenge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part II
2

Establishing the VAT and Financial Supplies Benchmarks
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Loans and Intermediary Services

Taxing Loan Intermediary Services: Theory and Design
Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Robert F. van Brederode and Richard Krever
2.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2 Characterizing Loan Principal, Interest and Loan
Intermediary Services for VAT Purposes . . . . . . . . . . . . . .
2.2.1 Loan Principal . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2.2 Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2.3 Loan Intermediary Services . . . . . . . . . . . . . . . . . .
2.3 Alternative Methods of Taxing Financial Services . . . . . . .
2.3.1 Treating Financial Services as Exempt Supplies . .
2.3.2 Recharacterizing Loans as Ordinary Business
Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.3.3 Limited Input Tax Credits for Financial Loan
Service Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . .

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2.3.4 Zero-Rating . . . . . . . . . . . . . . . . . . . . .
2.3.5 Addition Method . . . . . . . . . . . . . . . . .
2.3.6 Subtraction Method . . . . . . . . . . . . . . .
2.3.7 Cash Flow Method . . . . . . . . . . . . . . .
2.3.8 Modified Reverse Charge . . . . . . . . . .
2.4 Summary, Conclusions, and Policy Objectives .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Loan Intermediary Services: Argentina . . . . . . . . . . . . . . . . . . . . . . .
Guillermo Teijeiro
3.1 General Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.1.1 Legal Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.1.2 VAT Scope: Financial Supplies—Loan Intermediary
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.1.3 Tax Point . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.1.4 Place of Supply or Equivalent . . . . . . . . . . . . . . . . . . . .
3.1.5 Chargeable Amount: Valuation . . . . . . . . . . . . . . . . . . .
3.1.6 Tax Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.1.7 Exempt Supplies or Equivalent . . . . . . . . . . . . . . . . . . .
3.1.8 Deduction and Recovery of Input Tax. . . . . . . . . . . . . .
3.1.9 State, Provincial or Local Indirect Taxes . . . . . . . . . . . .
3.2 Account Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.3 ATM Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.4 Credit Card Purchase Surcharges . . . . . . . . . . . . . . . . . . . . . . . .
3.5 Facilitators of Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.6 Finance Leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.6.1 Tax Point . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.6.2 Special Exemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.6.3 Leasing of Motor Vehicles . . . . . . . . . . . . . . . . . . . . . .

3.6.4 VAT Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.6.5 Optional Regime to Offset Output VAT
in Advance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.6.6 Leasing Contracts on Real Estate . . . . . . . . . . . . . . . . .
3.6.7 Leaseback Transactions . . . . . . . . . . . . . . . . . . . . . . . . .
3.7 Non-financial Services that Might Be Deemed
to be Financial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.7.1 Safe Deposit Boxes . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.7.2 Implicit and Explicit Loans in the Course
of Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.8 Gross Income Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Loan Intermediary Services: Australia . . . . . . . . . . . . . . . . . . .
Richard Krever and Jonathan Teoh
4.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.2 What Are Financial Supplies?. . . . . . . . . . . . . . . . . . . . . . .
4.2.1 The Definition of Financial Supplies . . . . . . . . . . .
4.2.2 Credit Card Surcharges . . . . . . . . . . . . . . . . . . . . .
4.3 Recovery of Input Tax by Financial Suppliers . . . . . . . . . .
4.3.1 The General Apportionment Rule . . . . . . . . . . . . .
4.3.2 The de Minimis Exception to Apportionment . . . .
4.3.3 The ‘Acquisition Supply’ . . . . . . . . . . . . . . . . . . .
4.3.4 Borrowing-Related Costs . . . . . . . . . . . . . . . . . . . .
4.4 Reduced Input Tax Credits . . . . . . . . . . . . . . . . . . . . . . . . .
4.5 Imported Services Provided to Enterprises Making
Financial Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.6 Exported Financial Supplies . . . . . . . . . . . . . . . . . . . . . . . .
4.7 Reform Recommendations . . . . . . . . . . . . . . . . . . . . . . . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loan Intermediary Services: Brazil . . . . . . . . . . . . . . . . . . . . . .
Flavio Rubinstein
5.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.2 Federal VAT Taxation of Financial Services . . . . . . . . . . .
5.2.1 Federal Taxation of Gross Revenues:
PIS and COFINS . . . . . . . . . . . . . . . . . . . . . . . . . .
5.2.2 PIS and COFINS Levies on Financial Institutions .
5.2.3 PIS and COFINS Levies for Non-financial

Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.2.4 Inbound and Outbound Financial Services . . . . . .
5.3 Sub-national VAT Taxation of Financial Services . . . . . . .
5.3.1 National Framework . . . . . . . . . . . . . . . . . . . . . . .
5.3.2 National Rules for the Taxation
of Financial Services . . . . . . . . . . . . . . . . . . . . . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loan Intermediary Services: Canada. . . . . . . . . . . .
Simon Thang
6.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.2 Lending in General . . . . . . . . . . . . . . . . . . . . . .
6.2.1 Introduction . . . . . . . . . . . . . . . . . . . . .
6.2.2 Exclusions from ‘Financial Service’ . .
6.2.3 ‘Arranging For’ Financial Services . . .
6.2.4 Credit Card Surcharges . . . . . . . . . . . .
6.2.5 Loans in the Course of Business . . . . .
6.2.6 De Minimis Financial Institutions . . . .

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Contents

6.2.7 Input Tax Credits . . . . . . . . . . . . . . . .
6.3 Self-assessment Requirements . . . . . . . . . . . . . .
6.4 Special Attribution Method for Provincial Tax .
Reference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Loan Intermediary Services: China . . . . . . . . . . . . .
Na Li and Richard Krever
7.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.2 Scope of Loan Intermediary Services in China .
7.3 The Former Business Tax Regime . . . . . . . . . .
7.4 The Current VAT Regime . . . . . . . . . . . . . . . .
7.4.1 Explicit Loans . . . . . . . . . . . . . . . . . . .
7.4.2 Implicit Loans . . . . . . . . . . . . . . . . . . .
7.4.3 Timing Issues . . . . . . . . . . . . . . . . . . .
7.4.4 A Lost Opportunity . . . . . . . . . . . . . . .
7.5 Exported Loan Intermediary Services . . . . . . . .
7.6 Tax Administration . . . . . . . . . . . . . . . . . . . . . .
7.7 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Loan Intermediary Services: European Union . . . . . . . . . . . . .
Joachim Englisch
8.1 Legal Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.2 Treatment of Financial Sector Loan Intermediary Services .

8.2.1 General Approach: Exemption Without Credit . . .
8.2.2 Scope of the Exemption in the Case of Core
Lending Activities . . . . . . . . . . . . . . . . . . . . . . . . .
8.2.3 Exemption of Ancillary Activities . . . . . . . . . . . . .
8.2.4 Services Related to Credit Cards . . . . . . . . . . . . . .
8.2.5 Exemption of Outsourced Activities . . . . . . . . . . .
8.2.6 Apportionment Formula for Input Tax Credits . . .
8.3 Direct Loans in the Course of Business . . . . . . . . . . . . . . .
8.3.1 Treatment as a Separate or Merely Ancillary
Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.3.2 Apportionment Formula for Input Tax Credits . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loan Intermediary Services: Israel . . . . . . . . . . . . . . . . . . . . . .
David Goldman
9.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.2 The Case for Imposing Wage and Profit Tax on Financial
Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.3 The Financial Institution Classification . . . . . . . . . . . . . . . .
9.3.1 The Legal Definition . . . . . . . . . . . . . . . . . . . . . . .
9.3.2 Commercial Banks . . . . . . . . . . . . . . . . . . . . . . . .

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xi

9.3.3
9.3.4

Insurer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A Category of Persons Designated by the Minister
of Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.3.5 Classification According to Section 58 . . . . . . . . . . . . .
9.3.6 In Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.4 The Application of VAT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.5 The Application of Wage and Profit Tax . . . . . . . . . . . . . . . . . .
9.5.1 Wage Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.5.2 Profit Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.5.3 Cross-Border Distortions . . . . . . . . . . . . . . . . . . . . . . . .
9.6 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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10 Loan Intermediary Services: New Zealand . . . . . . . . . . . . . . . .
Marie Pallot and Thomas Allen
10.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10.2 History of New Zealand’s GST Treatment of Financial
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10.3 GST Treatment of Loan Intermediary Services Under
New Zealand’s Goods and Services Tax Act . . . . . . . . . . .

10.4 The Scope of the Exempt Treatment of Loan Intermediary
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10.5 Business-to-Business Zero-Rating of Loan Intermediary
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10.6 Imported Services and the Reverse Charge . . . . . . . . . . . . .
11 Loan Intermediary Services: South Africa . . . . . . . . . . .
Alwyn de Koker and Gerhard Badenhorst
11.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11.2 The Legal Framework. . . . . . . . . . . . . . . . . . . . . . . .
11.2.1 Loan Intermediation. . . . . . . . . . . . . . . . . . .
11.2.2 Finance Leases and Rentals . . . . . . . . . . . . .
11.2.3 Fees and Charges . . . . . . . . . . . . . . . . . . . .
11.2.4 Ancillary Activities . . . . . . . . . . . . . . . . . . .
11.2.5 Outsourced Activities . . . . . . . . . . . . . . . . .
11.2.6 Apportionment for Loan Intermediaries . . . .
11.2.7 Reverse Charges . . . . . . . . . . . . . . . . . . . . .
11.2.8 Direct Loan Services . . . . . . . . . . . . . . . . . .
11.2.9 Apportionment for Input Tax—Direct
Loan Services . . . . . . . . . . . . . . . . . . . . . . .

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xii

Part III

Contents

Financial Investments

12 VAT and Financial Investments . . . . . . . . . . . .
Richard Krever
12.1 Introduction . . . . . . . . . . . . . . . . . . . . . . .
12.2 Acquiring and Issuing Investments . . . . . .
12.3 Investments by Unregistered Individuals . .
12.4 Enterprises and Investments . . . . . . . . . . .
12.5 Establishing a Benchmark . . . . . . . . . . . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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13 VAT and Cost Sharing in the EU . . . . . . . . . . . . . . . . . . . . . . .
Ine Lejeune, Joost Vermeer and Simon Cornielje
13.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13.2 Impact of VAT in the Financial Services Industry . . . . . . .
13.3 Cost Sharing or Cost Allocation as a Taxable Supply . . . .
13.3.1 Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13.3.2 For Consideration . . . . . . . . . . . . . . . . . . . . . . . . .
13.3.3 Reciprocal Performance and Cost Allocation . . . . .
13.3.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13.4 Cost Sharing Provisions in the VAT Directive . . . . . . . . . .
13.4.1 VAT Grouping . . . . . . . . . . . . . . . . . . . . . . . . . . .
13.4.2 Cost Sharing Exemption . . . . . . . . . . . . . . . . . . . .
13.4.3 Cost Sharing Exemption Implemented
in the Various Countries . . . . . . . . . . . . . . . . . . . .
13.5 Specific Examples of Cost Sharing Out of Scope
of VAT in Certain Member States . . . . . . . . . . . . . . . . . . .
13.5.1 The Netherlands . . . . . . . . . . . . . . . . . . . . . . . . . .
13.5.2 Belgium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13.6 Conclusions and Policy Recommendations . . . . . . . . . . . . .
13.6.1 Clear and Definitive Guidance Required
on Cost Sharing Exemption . . . . . . . . . . . . . . . . . .
13.6.2 Cross-Border VAT Grouping. . . . . . . . . . . . . . . . .
13.6.3 Review of the Treatment of Financial Services . . .

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14 A VAT/GST Perspective on Crowdfunding . . .
Sebastian Pfeiffer
14.1 Introduction . . . . . . . . . . . . . . . . . . . . . . .
14.2 Non-financial Return Models . . . . . . . . . .
14.2.1 General Remarks . . . . . . . . . . . . .
14.2.2 Donation-Based Crowdfunding . .
14.2.3 Reward-Based Crowdfunding . . .
14.3 Financial Return Models . . . . . . . . . . . . . .
14.3.1 General Remarks . . . . . . . . . . . . .

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Contents

14.3.2 Equity Models . . . . . . . . . . .
14.3.3 Lending Models . . . . . . . . .
14.4 Jurisdictional Examples . . . . . . . . . .
14.4.1 EU Perspective . . . . . . . . . .
14.4.2 South African Perspective . .
14.4.3 Australian Perspective . . . . .
14.4.4 Canadian Perspective . . . . . .
14.4.5 New Zealand Perspective. . .
14.5 Summary and Conclusions . . . . . . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . .

xiii

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15 Financial Investments: European Union . . . . . . . . . . . . . . . . . . . . . .
Joachim Englisch
15.1 Legal Framework and Overview . . . . . . . . . . . . . . . . . . . . . . . . .
15.2 Equity Instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15.2.1 Instruments Covered by the Exemption . . . . . . . . . . . . .
15.2.2 Equity Instruments: Exempt Supplies v. Out-of-Scope
Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15.2.3 Derogations from the Exemption . . . . . . . . . . . . . . . . . .
15.2.4 Input VAT Deduction . . . . . . . . . . . . . . . . . . . . . . . . . .
15.2.5 Other Transactions ‘in’ Equity Interests. . . . . . . . . . . . .
15.3 Debt and Hybrid Instruments . . . . . . . . . . . . . . . . . . . . . . . . . . .
15.3.1 Investments Covered by Exemptions . . . . . . . . . . . . . . .
15.3.2 Debt and Hybrid Instruments: Exempt Supplies
v. Out-of-Scope Activities . . . . . . . . . . . . . . . . . . . . . . .
15.4 Derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15.4.1 Scope of Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15.4.2 Lack of Guidance at EU Level . . . . . . . . . . . . . . . . . . .
15.4.3 Creation of the Derivatives Contract: A Taxable
Event? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15.4.4 Terminating or Settling a Derivatives Position:

A Taxable Event? . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15.4.5 Scope of Relevant Exemptions . . . . . . . . . . . . . . . . . . .
15.4.6 Input VAT Deduction . . . . . . . . . . . . . . . . . . . . . . . . . .
15.5 Collective Investment Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . .
15.5.1 Exempt Supplies v. Out-of-Scope Investments . . . . . . .
15.5.2 Scope of the Exemption for Trade in CIV Units . . . . . .
15.5.3 Exemption of the Management of Special
Investment Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15.5.4 Input VAT Deduction . . . . . . . . . . . . . . . . . . . . . . . . . .
15.6 Portfolio Management and Other Ancillary Services . . . . . . . . .
15.7 Input VAT Deduction of the Investor . . . . . . . . . . . . . . . . . . . . .
15.7.1 Overview and Summary . . . . . . . . . . . . . . . . . . . . . . . .
15.7.2 Incidental Financial Transactions and Deductible
Pro Rata . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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293
296
296
297


xiv

Contents

15.7.3 Pro Rata Calculation in Case of Out-of-Scope

Investment Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . 297
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298
16 Financial Investments: South Africa . . . .
Alwyn de Koker and Gerhard Badenhorst
16.1 Shares . . . . . . . . . . . . . . . . . . . . . . . .
16.2 Securities Lending . . . . . . . . . . . . . .
16.3 Debentures and Debts . . . . . . . . . . . .
16.4 Collective Investment Schemes . . . . .
16.5 Derivatives . . . . . . . . . . . . . . . . . . . .
16.6 Long-Term Insurance Policies . . . . .
16.7 Ancillary Services . . . . . . . . . . . . . . .
16.8 Input Tax . . . . . . . . . . . . . . . . . . . . .
Part IV

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Financial Pooling Services: Insurance and Gambling

17 GST and Insurance: Australia . . . . . . . . . . . . . . . . . . . . . . . . . .
Richard Krever and Jonathan Teoh

17.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17.2 Unregistered Persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17.2.1 In-Kind Settlements . . . . . . . . . . . . . . . . . . . . . . . .
17.2.2 Cash Settlements . . . . . . . . . . . . . . . . . . . . . . . . . .
17.2.3 Subrogation, Excess (or ‘Deductible’)
Amounts and Ex Gratia Payments . . . . . . . . . . . . .
17.3 Registered Persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17.3.1 Registered Persons: The Initial System . . . . . . . . .
17.3.2 Registered Persons: The Current System . . . . . . . .
17.3.3 Insurance Provided Through Independent Agents .
17.4 Reinsurance (Domestic Reinsurer) . . . . . . . . . . . . . . . . . . .
17.5 Compulsory Third-Party Insurance . . . . . . . . . . . . . . . . . . .
17.6 Cross-Border Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17.6.1 Offshore Insurers . . . . . . . . . . . . . . . . . . . . . . . . . .
17.6.2 Registered Suppliers Providing Insurance
for Offshore Risks . . . . . . . . . . . . . . . . . . . . . . . . .
17.7 Life Insurance and Health Insurance . . . . . . . . . . . . . . . . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18 VAT and Insurance: The European Union . . . . . . . . . . . . . . . .
Marta Papis-Almansa
18.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18.2 EU Exemption Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18.3 Purpose of the Exemption for Insurance . . . . . . . . . . . . . . .
18.4 The Scope of the Exemption: Interpretative Difficulties . . .
18.5 The ‘Essentials of an Insurance Transaction’: The CPP
Decision and a Block Insurance Policy . . . . . . . . . . . . . . . .

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Contents

xv

18.6 The Nature of a Service Is Decisive: Commission v. Greece
and Road Assistance Services . . . . . . . . . . . . . . . . . . . . . . . . . . .
18.7 A Contractual Relationship: Skandia and Administrative
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18.8 Agents and Brokers Being ‘No More Than Intermediaries’:
Taksatorringen and Damage Assessment . . . . . . . . . . . . . . . . . .
18.9 Outsourced Activities with No Risk Assumption Are Outside
the Scope of Exemption: Arthur Andersen and Back-Office
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18.10 Indirect Contractual Relationship: Beheer and Services
of Sub-agents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18.11 (Re)strict(ive) Interpretation: Swiss Re and Transfer
of a Portfolio of Reinsurance Contracts . . . . . . . . . . . . . . . . . . .
18.12 ‘Re-invoicing’ of the Exact Cost of Insurance Is Exempt: BGŻ
Leasing and Insurance Provided Together with Leasing . . . . . . .
18.13 Substance Over Form: Mapfre and Extended Warranties . . . . . .
18.14 An Impact of the Commission’s Proposal on the Existing
Case Law: Aspiro and Claim Settlement Activities . . . . . . . . . . .

18.15 Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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365
366
368
368
369
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370
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375

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377
377
381

19 GST and Insurance: Singapore . . . . . . . . . . . . . . . . . . . . . . . . .
Soo How Koh and Rushan Lee
19.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19.2 Life Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19.3 General Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19.4 Agents, Broking and Intermediary Services . . . . . . . . . . . .
19.5 Reinsurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19.6 Deemed Input Tax on Cash Payments . . . . . . . . . . . . . . . .
19.6.1 Recovery of Part or Whole of Cash Payment . . . .
19.6.2 Ex Gratia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19.7 Input Tax on Motor Vehicle Expenses . . . . . . . . . . . . . . . .
19.8 Input Tax Recovery Formula . . . . . . . . . . . . . . . . . . . . . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20 VAT and Gambling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fabiola Annacondia and Laura Mattes Alonso
20.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20.2 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20.3 How to Impose VAT on Gambling Transactions:
Exemption v. Taxation . . . . . . . . . . . . . . . . . . . . . . .
20.3.1 EU VAT System . . . . . . . . . . . . . . . . . . . . .
20.3.2 Modern VAT Systems . . . . . . . . . . . . . . . . .

347

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xvi

Contents

20.4 Gambling Services Provided Through the Internet . . . . . . .
20.4.1 The Rise of Online Gambling . . . . . . . . . . . . . . . .
20.4.2 How Should VAT Be Imposed on e-Gambling
Transactions? . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20.5 Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

....
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386
386

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389
394
397

Table of Case Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 399

Editors and Contributors

About the Editors
Robert F. van Brederode (LL.B., Utrecht University, 1982; LL.M., Utrecht
University, 1985; Ph.D. Tax law, Amsterdam University, 1993) is the national
practice leader global VAT/GST of Crowe Horwath LLP, USA; and chair of Crowe
Horwath International’s Indirect Tax Steering Committee. Previously, he was, inter
alia, a partner at PwC, leading the Netherlands VAT & Customs practice; adjunct
professor at New York University, School of Law, Graduate Tax Program; professor of tax law at the Erasmus University, School of Economics; and assistant
professor at Maastricht University, School of Law. Robert is the author of dozens of
journal articles and book chapters on tax law, and the author/editor of eight books,
amongst others Systems of General Sales Taxation: Theory, Policy, and Practice
(2009), Immovable Property under VAT: A Comparative Global Analysis (2011),
Science, Technology and Taxation (2012), and (with Richard Krever) Legal
Interpretation of Tax Law (2014). He is a frequent speaker at international conferences and seminars. Under the pen name Robert Fredericks he also published a
novel, The Enemy Within.
Richard Krever is Professor and Director of the Taxation Law and Policy Group
in the Monash Business School, Monash University and an International Fellow at
Oxford University. Richard has provided technical assistance with the design and
drafting of VAT laws for countries in Africa, the Caribbean, Asia and Oceania
under the auspices of international organizations such as the IMF, World Bank and
Asian Development Bank, as well as national aid agencies. His appointments
include secondments to the IMF, Australian Treasury and Australian Taxation
Office, with teaching appointments at universities in Australia, the United States,
Canada, the Netherlands, Italy and Austria as well as two chairs in Australia.
Richard is the author of more than 100 articles in academic and professional
journals and an author, contributor or editor to many books on VAT and GST.

xvii

xviii

Editors and Contributors

Contributors
Thomas Allen is a Senior Policy Analyst at Inland Revenue, New Zealand. He
holds a Bachelor of Laws and a Bachelor of Management Studies majoring in
economics (with Honours) from the University of Waikato. He has worked at
Inland Revenue’s policy division for 5 years and has specialized in Goods and
Services Tax (GST) for 3 years. He has worked on a range of tax policy issues,
including the application of GST on cross-border services and intangibles.
Fabiola Annacondia is Manager of the VAT & Topicals Knowledge Group at
IBFD and Editor of IBFD’s International VAT Monitor (Journal) and EU VAT
Compass (Book).
She has a postgraduate degree in International Tax Law from Barcelona
University and a postgraduate degree in Tax Law from the Argentine Social
Museum University, Argentina. She worked as a fiscal auditor (tax inspector) for 11
years with the Argentine tax authorities and taught Indirect Taxation at Buenos
Aires University, Argentina.
Fabiola joined IBFD as a country specialist for Latin America in 2000. Since
2001, she has worked for IBFD’s VAT Knowledge Group. She lectures, presents
and publishes regularly on a wide variety of VAT-related topics. In recent years she
has presented, as OECD expert, at various OECD events around the world.
Gerhard Badenhorst (B.Com., University of Johannesburg; B.Com. Hons,
University of Johannesburg; M.Com., University of Johannesburg; CA(SA) H Dip
Tax (cum laude), University of Johannesburg) is a Tax Executive at the law firm
ENSafrica where he heads up the indirect tax department. He is a member of the
South African Institute of Chartered Accountants and of the South African Institute
of Tax Professionals. He is also a member of the VAT sub-committee of the South

African Institute of Chartered Accountants and an ad hoc member of the VAT
sub-committee of the Davis Tax Committee.
Gerhard has been specializing in VAT since it was implemented in South Africa
in 1991, and he assisted various industries with the implementation of VAT in
Namibia and Botswana when VAT was implemented in those countries. He advises
national and multinational corporations in a wide range of industries including
financial services, mining, manufacturing, construction as well as nonprofit organizations.
Gerhard is a guest lecturer on the VAT modules of the Masters Tax courses at
Pretoria University and the University of the Witwatersrand.
Simon Cornielje graduated from Maastricht University Law School in 2006 and
then joined the Indirect Taxes/VAT practice at PwC in Amsterdam. Currently,
Simon serves on the senior management team of the Financial Services VAT team.
He advises a broad range of (inter)national clients in the Financial Services industry


Editors and Contributors

xix

with a focus on clients in Banking, Capital Markets and Insurance. In addition,
Simon is a Ph.D. candidate and lecturer in Indirect Taxes at Tilburg University.
His Ph.D. thesis is on mergers and acquisitions in European VAT. Simon is a
regular contributor to national and international specialist tax journals.
Joachim Englisch has studied law at the universities of Saarbruecken, Salamanca,
and Cologne. In 2007, he was granted a tenured position as Professor for Tax Law
and Public Law at the University of Augsburg. In 2010, he moved to Muenster
University to become the Managing Director of the institute for tax law there.
Joachim serves as a visiting professor for LL.M. courses on international and
European tax law at several European universities. He regularly supervises Ph.D.
candidates and he is also a member of several international doctoral committees.

His main research interests are European and international tax law covering both,
direct and indirect taxation, as well as constitutional aspects of tax law. Joachim has
published and lectured extensively on a broad range of topics related to European
taxation, including the harmonized system of VAT and excise taxation. He serves
as appointed member of VAT expert groups with the OECD and with the EU
Commission, and advises national governments.
David Goldman is senior partner at D. Potchebutzky Law Offices in Tel Aviv,
Israel. David specializes in handling the multitude implications of the various Tax
Laws (including income tax, international taxation, customs, value added tax,
purchase tax, and betterment taxation) and supports his clients in various stages
of their business activities. His clients include multinational corporations, trusts and
families. He advises his clients on all facets of business and tax issues, including tax
planning and legal opinions, drafting legal and commercial documents, representation before governmental authorities, achieving pre-rulings and settlements with
the various tax authorities, litigation, and other legal matters.
Prior to joining D. Potchebutzky, David served as an Assistant District Attorney
in the State’s Advocate in Tel Aviv, representing the various Tax Authorities in the
Israeli courts.
Over the past 20 years, David has lectured on varied and complex tax issues at
different academic institutions, including the Law Faculty at the Hebrew University
and the School of Business Administration at the College of Management. David
also lectured at the Israel Bar Association and the Institute of CPAs.
David authors a recurring column (‘Comments on Fiscal Judicial Decisions’) in
the ‘Accounting’ magazine, which was awarded by the Institute of CPAs in Israel,
and comments on various tax issues for a daily financial newspaper.
David is a member of various Tax Committees of the Israel Bar Association and
has served as the Chair of the Indirect Tax Committee.
David is a graduate of Hebrew University from which he received a Bachelor of
Arts in Accounting and Economics (1994), a Bachelor of Laws (1995) and Master
of Laws (1999).

xx

Editors and Contributors

Soo How Koh is a partner with PricewaterhouseCoopers, specializing in Goods and
Services Tax (GST) and he leads the PwC Indirect Taxes network in Asia Pacific.
Soo How spent a number of years working overseas on corporate income tax and
GST matters. In Singapore, Soo How has over 20 years of experience in GST, and
was a member of the team in the Inland Revenue Authority of Singapore that was
responsible for the implementation of the GST system in 1994. He was an Assistant
Comptroller of GST with the primary responsibility to set up the GST audit
function and develop policy as well as operational rules. His policy and implementation experience has led him to be involved in discussions with policy-makers
on indirect tax reforms in countries such as China, Malaysia, and India.
As an advisor, Soo How has wide GST advisory experience in the areas of
business restructuring, supply chain transformation, cross-border transactions and
processes review and controls.
Known for his pragmatic approach and sound advice, Soo How has been named
as one of the leading indirect tax advisers by International Tax Review since 2011.
He was recently re-appointed for a second term as a member of the GST Board of
Review by the Minister of Finance.
Soo How lectures at the Tax Academy of Singapore and is a regular contributor
to media and journals and speaker at indirect tax conferences in Singapore and
overseas.
Soo How is an Accredited Tax Advisor (GST) with the Singapore Institute of
Accredited Tax Professionals.
Alwyn de Koker (B.Com., University of Cape Town; M.Com., University of
Witwatersrand; CA (SA) H Dip Tax Law, University of Witwatersrand) is
Professor Emeritus of Tax Law in the School of Accountancy at the University
of the Witwatersrand, Johannesburg. He is a member of the Public Accountants’

and Auditors’ Board in South Africa and a member of the South African Institute of
Chartered Accountants.
Alwyn is also Adjunct Professor in the LL.M. International Tax Programme
presented by the Thomas Jefferson School of Law at Thomas Jefferson University
in San Diego, United States of America, and serves as a member of the Board of
Academic Advisors to the School of Law. He was formerly an Honorary Professor
in the School of Law at St Thomas University, Miami, USA.
He is an Executive Board member of the Royal Society of Fellows and an
Advisory Board member of the Royal Society of Fellows Law Review.
Alwyn is the Programme Co-ordinator of the M.Com. (Taxation) presented by
the School of Accountancy at the University of the Witwatersrand and has delivered
papers on international tax at various conferences worldwide. He has also published
extensively and is the author, amongst others, of the definitive works Silke on
International Tax, Silke on South African Income Tax, the Silke Tax Yearbook, as
well as co-author of Value-Added Tax in South Africa published by LexisNexis.
Alwyn is also a director of GenTrust SA in Switzerland.


Editors and Contributors

xxi

Rushan Lee is Senior Manager in PwC Singapore specializing in Goods and
Services Tax. She has over 10 years of experience in GST which involves providing
GST compliance and advisory services to clients across different industries. Her
experience and diverse client portfolio, including businesses in the financial services sector, enables her to provide practical guidance to businesses on how to
manage their GST risks and comply with GST rules. Apart from advising on
Singapore GST, she also assisted clients directly with Malaysian GST implementation projects.
Rushan is an Accredited Tax Advisor (GST) with the Singapore Institute of
Accredited Tax Professionals. She was seconded to PwC Netherlands in 2013 and

has a working knowledge of European VAT.
Ine Lejeune is responsible for building and leading the tax policy, dispute resolution
and tax litigation practice at Law Square, an independent law firm in Belgium. She is a
member of the EU Commission’s VAT Expert Group since 2012, was ‘Belgian Taxman
2009’ and was elected ‘5th Global Most Influential Tax Expert’ by Tax Business in
2006, while also being recognized as ‘1st Indirect Tax Expert’.
Ine has extensive experience in advising clients in the financial services sector,
and also acted as project leader of the ‘Study to increase the understanding of the
economic effects of the VAT exemption for financial and insurance services’,
prepared for the European Commission.
Apart from providing tax advice, Ine’s practice is focused on litigation and
dispute resolution services. She has assisted with tax disputes and procedures before
national courts (Belgium, Italy, Poland, Spain, the Netherlands, Croatia, Romania,
the UK, Ireland, and Lithuania) and the Court of Justice of the European Union. In
this context, Ine assists clients with tax audits and settlements negotiations, as well
as with developing a litigation strategy on the basis of national legislation, EU law
and the case law of the Court of Justice of the European Union and of the European
Court of Human Rights. She has successfully filed complaints with the European
Commission resulting in infraction procedures and changes in national legislation
resolving litigation cases.
Over a period of 30 years, Ine has gained extensive experience in the area of tax
policy, serving both private sector and public sector clients. She served as the
Global Relationship Partner at PwC for the EU Institutions and is responsible for
more than 36 studies on VAT/customs and excise provided to the EU, individual
EU Member States, the UAE, the Gulf Cooperation Council, China and India.
Ine is a frequent speaker with the OECD, the Tax Executive Institute (TEI),
PwC, universities, industry associations and conference organizers. From 1996 to
2004 she lectured at Antwerp University (UFSIA) and since 2010 she is lecturer
and member of the Faculty of the Vienna University of Economics and Business
(Wirtschaftsuniversität Wien) in the LLM International Tax Law on Global Trends

in VAT/GST; and guest lecturer and voluntary scientific collaborator at Vrije
Universiteit Brussel (VUB).


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Editors and Contributors

Na Li is Post-doctoral Researcher and Lecturer at East China University of Political
Science and Law (Shanghai). In addition, she is an attorney, licensed to practise in
China and the US (New York State), focusing on cross-border investment and
international taxation. Na obtained an LL.B. from Fudan University (Shanghai) in
2001, an LL.M. in taxation from Boston University in 2009, and a Ph.D. from
Vienna University of Economics and Business (WU) in 2015.
Laura Mattes Alonso is working as a VAT specialist at the IBFD, Amsterdam.
Educated in ESADE Law School (Spain), Cornell Law School (USA) and Queen
Mary, University of London (UK), she has always shown a pronounced interest in
Spanish and International taxation courses, which she has complemented with a
deep knowledge in regulation and working of financial markets. After joining the
Barcelona Bar Association in 2011, she worked for 2 years as a tax advisor for the
law firm Gómez-Acebo & Pombo running her own stand-alone files.
In 2014, and after finishing her LLM in Banking and Finance in the UK (with
Distinction), she joined the VAT Knowledge Group at the IBFD where she is
combining her functions as a VAT specialist and co-editor of the publication VAT
in Europe with client research and publications of articles and white papers.
Marie Pallot is a lawyer and policy manager with the New Zealand Inland Revenue
Department where she advises the government on a range of tax issues with a
predominant focus on GST policy. Over many years she has overseen GST policy
change in relation to some key areas including the treatment of financial services,
questions of fraud or avoidance and the area of cross-border trade in goods, services

and other intangibles. She is the current chair of the OECD’s Working Party 9 on
Consumption Taxes which has been responsible for producing the international
guidelines relating to VAT/GST and cross-border services and intangibles as part
of the OECD’s wider Base Erosion and Profit Shifting work.
Marta Papis-Almansa is a lawyer, teacher, and researcher at Lund University,
Sweden whose interests include European Union law, European and international
tax law and comparative tax law. Currently her research is focused on
European VAT. In 2016 she defended her doctoral thesis, a comparative study
of the treatment of insurance in European VAT and the treatment of insurance in the
GST systems of New Zealand and Australia.
Marta holds a master degree in law from Łódź University in Poland, an LL.M. in
European and International Tax Law from Lund University in Sweden, and a
Doctors of Law from Lund University, Sweden. She actively participates in
national and international tax law conferences and seminars and is an author of
publications in international tax law journals.


Editors and Contributors

xxiii

Sebastian Pfeiffer (LL.M., WU; Ph.D., WU) works at the VAT unit of the Austrian
Federal Ministry of Finance. Previously, he was a research and teaching associate at
the Vienna University of Business and Economics (WU) where he still lectures
externally. He holds the Maurice Lauré Prize 2014, the Wolfgang Gassner Science
Prize 2014 and the Austrian Award of Excellence 2014 for his doctoral thesis ‘VAT
Grouping from a European perspective’.
Flavio Rubinstein Rubinstein is Professor of Tax Law and Fiscal Policy at
Fundação Getúlio Vargas–FGV School of Law (São Paulo, Brazil). In 2014 he was
a visiting professor at University of Melbourne Law School. Flavio holds an LL.M.

from Harvard Law School and both a Ph.D. and a Master of Laws from University
of Sao Paulo. He has authored or co-authored several papers and books, and is a
member of the Writing Committee of the European international tax law journal
Rivista Diritto e Pratica Tributaria Internazionale, as well as the Brazilian editor of
IBFD’s Derivatives and Financial Instruments journal. Flavio is a partner at Vettori,
Rubinstein and Foz Advogados, a law firm based in Sao Paulo.
Guillermo Teijeiro (LL.B. University of La Plata, LL.M. Harvard Law School),
was previously an associate with Caplin & Drysdale, Washington DC and a
Visiting Scholar at Harvard Law School under the auspices of the Harvard Tax
Fund and the International Tax Program.
A founding partner of Teijeiro & Ballone, Guillermo has been a Plenary Member
of IFA Permanent Scientific Committee for the period 2006–2014, and is currently
a member of IFA General Council, IFA Latin American Regional Committee, and
AAEF (IFA Argentine Branch) Board and Executive Committee.
A Tax Law professor, Guillermo currently teaches International Taxation at the
Master in Taxation, UCA, and CIDTI, Universidad Austral; he is a member of the
Academic Committee of the Master Program in International Taxation, UTDT, and
member of the Tax law Institute of the Argentine Academy of Law.
Guillermo has authored and co-authored tax articles and books published in
Argentina, Brazil, Bolivia, India, Italy, the Netherlands, Spain, the UK, and the US.
Guillermo has lectured extensively on corporate and international tax matters at
several fora, including IBA, IFA ABA, FORUM, STEP, Institute for International
Research, Insight Information Co., UCM, UNAM, ICDT, IBDF (IFA Brazilian
Branch), IBET, UPSC, AAEF (Argentine IFA Branch), and Buenos Aires-based
public and private law, economics and business graduate schools.
Jonathan Teoh is a Senior Lecturer in Taxation in the Monash Business School at
Monash University. He is the recipient of multiple awards and citations for outstanding teaching from two universities and the Australian government. He has


xxiv

Editors and Contributors

taught at leading universities in Australia and Asia. Prior to his academic
appointment, Jonathan had extensive experience as a tax practitioner specializing in
indirect and state taxes.
Simon Thang is a lawyer at the tax law firm Thang Tax Law Professional
Corporation in Toronto, Canada. Simon’s practice focuses on Goods and Services
Tax, Harmonized Sales Tax, Provincial Sales Tax, customs law, and all other
Canadian indirect taxes. In addition to advising on indirect tax matters, Simon
represents clients in appeals and litigation. Simon teaches the consumption taxation
course at Osgoode Hall Law School and frequently writes and presents on related
topics. Simon graduated from Osgoode Hall Law School and from the London
School of Economics and Political Science, where he received an LL.M. in taxation.
Joost Vermeer started his career with PwC Amsterdam in 2004 in the Indirect
Taxes/VAT practice after graduating from Tilburg University in Tax Law. In 2006,
Joost participated in a post-master Study Programme in Indirect Tax at the Erasmus
University in Rotterdam on ‘X-border VAT grouping’. As from 2006, he has a
full-time focus on advising multinationals in the Financial Services sector on VAT.
During 2008 and 2009, he joined the Financial Services VAT team of PwC
London. Since then, he has worked on multiple global/pan-European client and
policy projects around VAT and Financial Services, the latest on the pan-European
impact on the Financial Services Sector of the ECJ Skandia-case. Joost is
co-leading the Financial Services VAT Team of PwC in Amsterdam and
co-heading PwC’s EU Financial Services VAT practice.


Abbreviations

AATA

AD
ADCT
AFIP
AG
All ER
All SA
ANZSIC
ARS
Art.
ATM
ATO
AUD
B2B
B2C
B2V
BNB
BStBl.
CA
CAD
CCP
CDO
CDS
Cf.
CFC
CFD
Ch.
CIV
CJEU
CMN

Administrative Appeals Tribunal of Australia
Reports of Appellate Division of the Supreme Court of South Africa
Ato das Disposições Constitucionais Transitórias (Brazil)
Federal Administration of Public Revenues (Argentina)
Advocate General (EU)
All England Law Reports
All South African Law Reports
Australian and New Zealand Standard Industrial Classification
Argentina Peso
Article
Automated Teller Machine
Australian Taxation Office
Australian Dollar
Business-to-business
Business-to-consumer
Business Tax to VAT (China)
Beslissingen in Belastingzaken (Decisions in Taxation-Netherlands)
Bundesstaatsblatt
Civil Appeals (Israel)
Canadian Dollar
Central Counterparty
Collateralized Debt Obligations
Credit Default Swap
Conferre (Latin); compare
Controlled Foreign Company
Contract for Difference
Chapter
Collective Investment Vehicle
Court of Justice of the European Union
Conselho Monetário Nacional (National Monetary Council-Brazil)

xxv