SYLLABUS

2025
CONTENTS

INTRODUCTION............................................................................................. 3

SYLLABUS GUIDE.......................................................................................... 4

MODULE 1 - PRINCIPLES OF INTERNATIONAL TAXATION............................. 6

RECOMMENDED READING LIST............................................................ 10

MODULE 2.01 - AUSTRALIA OPTION........................................................... 13

RECOMMENDED READING LIST............................................................ 15
MODULE 2.02 - CHINA OPTION................................................................... 16
RECOMMENDED READING LIST............................................................ 17
MODULE 2.03 - CYPRUS OPTION................................................................ 18
RECOMMENDED READING LIST............................................................ 22
MODULE 2.04 - HONG KONG OPTION.......................................................... 25
RECOMMENDED READING LIST............................................................ 27
MODULE 2.05 - INDIA OPTION.................................................................... 28
RECOMMENDED READING LIST............................................................ 30
MODULE 2.06 - IRELAND OPTION............................................................... 32
RECOMMENDED READING LIST............................................................ 34
MODULE 2.07 - MALTA OPTION................................................................... 36
RECOMMENDED READING LIST............................................................ 38
MODULE 2.08 - SINGAPORE OPTION........................................................... 39
RECOMMENDED READING LIST............................................................ 41
MODULE 2.09 - UNITED KINGDOM OPTION................................................. 42
RECOMMENDED READING LIST............................................................ 44
MODULE 2.10 - UNITED STATES OPTION..................................................... 46
RECOMMENDED READING LIST............................................................ 48
MODULE 2.12 - SOUTH AFRICA OPTION...................................................... 49
RECOMMENDED READING LIST............................................................ 51

2 ADIT
MODULE 3.01 - EU DIRECT TAX OPTION..................................................... 52
RECOMMENDED READING LIST............................................................ 54
MODULE 3.02 - EU VAT OPTION.................................................................. 55
RECOMMENDED READING LIST............................................................ 58
MODULE 3.03 - TRANSFER PRICING OPTION.............................................. 59
RECOMMENDED READING LIST............................................................ 62
MODULE 3.04 - ENERGY RESOURCES OPTION............................................ 65
RECOMMENDED READING LIST............................................................ 68
MODULE 3.05 - BANKING OPTION............................................................... 71
RECOMMENDED READING LIST............................................................ 73

EXTENDED ESSAY OPTION RULES............................................................... 76

GUIDANCE NOTES.................................................................................. 78

ADIT 3
INTRODUCTION

In order to achieve this qualification, candidates will need to possess a broad knowledge
right across the spectrum of international taxation, preferably informed by experience.

This document contains the detailed syllabus for each available module, together
with recommended reading lists. Permitted texts for each exam are indicated in the
recommended reading lists, and can be found on our website at
www.tax.org.uk/adit/permitted-books.

Questions will not be set which require knowledge of any law or regulation, or any
Statutory Instrument, EU Directive or similar legal provision announced less than six
months before the date of an exam, or on any tax or legal court case reported less than
six months before the exam date. Nonetheless, all ADIT exam candidates are expected to
maintain a general understanding of recent, significant legislative changes relevant to their
exam subjects.

Each syllabus contains a list of topics included, together with an indication of the level of
knowledge that a candidate may be required to demonstrate.

4 ADIT
 SYLLABUS GUIDE

Each syllabus includes guides which are intended to give candidates broad guidance on the
approximate proportion of marks available for the major areas within the syllabus for each
module.

The levels specified are:

Level 1
Candidates will be expected to have a broad understanding and awareness of the topic,
but will not be required to provide answers in detail on these topics.

Level 2
Candidates will be expected to have a detailed knowledge of the topic and be able to apply
this knowledge in both written and computational situations (where appropriate), showing
an understanding of the issues involved.

Level 3
Candidates may be required to demonstrate an advanced knowledge, involving
interpretive exposition and analysis, with the ability to comment upon problems arising
and to suggest possible solutions in novel situations.

Candidates are expected to have an awareness of current accounting issues relevant to

tax.

ADIT 5
MODULE 1 - PRINCIPLES OF
INTERNATIONAL TAXATION
I Basic principles of international taxation 20%
II Double taxation conventions (DTCs), focusing on the current version of the OECD Model Tax Convention
(OECD MTC) and the United Nations Model Double Taxation Convention (UN MDTC) 30%
III BEPS 2.0: Pillar One and Pillar Two
IV Transfer pricing and restrictions on interest deductibility 20%
V International tax avoidance 25%
VI Miscellaneous topics 5%

I Basic principles of international taxation

A J urisdiction to tax, including limits to tax jurisdiction arising from public international law, and cross-
border enforcement of taxes 1
B Taxes and tax systems
1. Definition and classification of taxes 1
2. Federal systems and local-level taxes 1
C State practice in exercising tax jurisdiction
1. Concepts of source and situs; use of residence, domicile and citizenship as connecting factors 2
2. State practice in determining residence of individuals and corporations 2
3. Implications of the use of citizenship as a connecting factor (especially particular issues for US
citizens) 1
4. State practice in determining the source of income and gains 2
5. Tax issues arising from a change of residence/citizenship 2
D Causes of international double taxation
1. Conflicts of residence and source 2
2. Conflicting definitions of connecting factors 2
3. Other causes of international double taxation (including particular issues for using citizenship as a
connecting factor for taxation) 1
E Methods of relief from international double taxation
1. Relief by credit – including indirect/underlying credit and tax sparing credit 3
2. Relief by exemption – including participation exemption 3
3. Practical difficulties in applying relief by credit and relief by exemption 3
4. Relief by exemption and relief by credit compared – capital import neutrality vs.capital export
neutrality 2
5. Other methods of relief from international double taxation – relief by deduction of foreign tax;
relief by deferral 2
F Private international law and tax
1. Recognition of foreign legal entities 2
2. Characterisation of entities as transparent or opaque – state practice 2
3. The issue of qualification and international tax 2
G The history of international tax law
1. Work under the League of Nations 1
2. Work of the G20 and OECD 2
3. Work of the UN Group of Experts 2
H Tax and international human rights instruments
1. The European Convention on Human Rights 2
2. The International Covenant on Civil and Political Rights 2
I State responsibility in international tax – the development of the concept of harmful tax competition 2

6 ADIT
II Double taxation conventions (DTCs), focusing on the current versions of the OECD Model Tax Convention (OECD
MTC) and the United Nations Model Double Taxation Convention (UN MTDC)

Candidates should understand the operation of the provisions of the OECD MTC and UN MTDC; show awareness of
the major points in the Commentaries to the relevant Articles of the OECD MTC and UN MTDC; and be aware of key
reports of the OECD Committee on Fiscal Affairs and major international cases on the topic.
A Types of DTCs (limited, multilateral etc.) and negotiation of DTCs 3
B DTCs and domestic law
1. Incorporation of DTCs into domestic law 3
2. Treaty override 3
C Format and structure of a DTC
1. The OECD Model Tax Convention (OECD MTC) and the Commentaries to the OECD MTC – the work of
the OECD Committee on Fiscal Affairs 3
2. The UN Model Double Taxation Convention 2021 (UN MDTC) 3
3. Specific states’ models: the US MTC; the Dutch MTC 1
4. The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI) 3
D Approach to the application of a DTC – applying a DTC to a concrete scenario 3
E Interpretation of DTCs
1. General approach to interpretation 3
2. Vienna Convention on the Law of Treaties 3
3. Use of external aids for interpretation – the status and use of the OECD Commentaries 3
4. Application of Article 3(2), OECD MTC and UN MDTC 3
5. Resolving interpretation issues by competent authority proceedings 3
F Provisions relating to the scope of a DTC – Articles 1, 2, 29, 30, 31 and 32, OECD MTC and UN MDTC
1. Article 1: Persons covered 3
2. Article 2: Taxes covered 3
3. Article 29: Entitlement to benefits 3
4. Article 30, OECD MTC: Territorial extension; Articles 30 and 31, OECD MTC and UN MDTC: Entry into
force; Article 32, OECD MTC and Article 31, UN MDTC: Termination 2
G Key definitional provisions of the OECD MTC and UN MDTC
1. Meaning of “resident” and resolution of cases of dual residence – Article 4, OECD MTC and UN MDTC 3
2. Permanent establishment concept: determining the existence of a permanent establishment –
Article 5, OECD MTC and UN MDTC 3
3. BEPS Action 7 – Preventing the artificial avoidance of a permanent establishment 3
H DTC provisions relating to businesses
1. Business profits (with or without a permanent establishment) – Article 7, OECD MTC and UN MDTC 3
2. Shipping and air transport profits – Article 8, OECD MTC and UN MDTC 3
3. Associated enterprises – Article 9, OECD MTC and UN MDTC – status of Article 9 and link to transfer
pricing legislation 3
I DTC provisions relating to independent personal services – Article 14, UN MDTC 3
J DTC provisions relating to individuals
1. Employment income – Article 15, OECD MTC and UN MDTC 3
2. Directors’ fees – Article 16, OECD MTC and UN MDTC 3
3. Entertainers and sportspersons – Article 17, OECD MTC and UN MDTC 3
4. Pensions – Article 18, OECD MTC and UN MDTC 2
5. Government service – Article 19, OECD MTC and UN MDTC 3
6. Students – Article 20, OECD MTC and UN MDTC 3
K DTC provisions relating to investment income and gains
1. Income from immovable property – Article 6, OECD MTC 3
2. Dividends – Article 10, OECD MTC and UN MDTC (including some consideration of the forms of dividend
article used by key states, e.g. US, UK, France, Germany) 3
3. Interest – Article 11, OECD MTC and UN MDTC 3
4. Royalties – Article 12, OECD MTC and UN MDTC 3
5. Fees for Technical Services – Article 12A, UN MDTC 3

ADIT 7
 6. Income from Automated Digital Services – Article 12B, UN MDTC 3
7. Capital gains – Article 13, OECD MTC and UN MDTC 3
L Taxation of capital – Article 22, OECD MTC and UN MDTC 3
M Relevance of the “other income” Article – Article 21, OECD MTC and UN MDTC 3
N Limitation of benefit provisions
1. Approaches to the misuse of DTCs 3
2. Abuse of law doctrines and DTCs 3
3. State practice with respect to limitation of benefit provisions 3
4. BEPS Action 6 – treaty abuse 3
5. Persons covered and entitlement to benefits – Articles 1 and 29, OECD MTC and UN MDTC 3
O Methods of elimination of double taxation – Articles 23A and 23B, OECD MTC and UN MDTC 3
P The impact of the non-discrimination article – Article 24, OECD MTC and UN MDTC 3
Q The resolution of disputes under DTCs
1. Competent authority/mutual agreement procedures – Article 25, OECD MTC and UN MDTC 2
2. Alternative means of resolving international tax disputes 2
3. BEPS Action 14 – Making dispute resolution mechanisms more effective 2
4. BEPS Action 15 – Developing a multilateral instrument to modify bilateral tax treaties 2
R The OECD BEPS Multilateral Instrument
1. Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI) – all
provisions 3
2. Explanatory Statement 3
S The digital economy
1. BEPS Action 1 – Tax challenges of the digital economy 3
2. VAT/GST issues 2
3. Nexus issues 2
4. Definition of permanent establishments 3
T The work of the Platform for Collaboration on Tax 2
U The work of the UN Committee of Experts on International Cooperation in Tax Matters 2
V Work towards a draft UN Framework Tax Convention and Protocols 3

III BEPS 2.0: Pillar One and Pillar Two

A Two Pillar solution – Statement and Implementation Plan

1. Pillar One – Amount A, Amount B and the Multilateral Convention to Implement Amount A of Pillar
One 3
2. Pillar Two – Income inclusion rule; under taxed profit rule, the subject to tax rule and the Multilateral
Convention to Facilitate the Implementation of the Pillar Two Subject to Tax Rule 3

IV Transfer pricing and restrictions on interest deductibility

AVarious approaches to the determination of profits of branches and associated enterprises

1. Unitary taxation/global formulary apportionment 2
2. Arm’s length approaches 3
BState practice with respect to transfer pricing
1. Consideration of examples of domestic transfer pricing legislation (US, UK, Germany, Australia) 2
CTransfer pricing and DTCs – Article 9, OECD MTC 3
DAdvanced pricing agreements 3
EOECD Transfer Pricing Guidelines
1. Background to the introduction of the 2022 Guidelines 3
2. Amendments to the 1995 and 2017 Guidelines 3
3. Transfer pricing methodologies 3
4. Special topics – hard to value intangibles; low value adding intra-group services; cost contribution/
sharing agreements; revised safe harbour guidance; documentation; Annex to Chapter IV 3
5. Resolution of transfer pricing disputes and advance pricing agreements (APAs) 3
6. Attribution of profits to permanent establishments 3
8 ADIT
 F Transfer pricing and BEPS
1. Awareness of the impact of BEPS on transfer pricing 3
2. BEPS Actions 8-10 – Aligning transfer pricing outcomes with value creation 3
3. BEPS Action 13 – Documentation and country-by-country reporting 3
G Transfer pricing and developing countries
1. The UN Practical Manual on Transfer Pricing for Developing Countries 2021 3
H State practice with respect to restrictions on interest deductibility (including thin capitalisation rules) 3
I DTCs and restrictions on interest deductibility
1. BEPS Action 4 – Interest Deductions 3

V International tax avoidance

A Harmful tax practices

1. Work of the OECD Forum on Harmful Tax Practices 3
2. Approaches to identification of harmful tax practices, including preferential regimes and substantial
activity requirements 3
B Domestic law approaches to international tax avoidance
1. CFC and other controlled foreign entity legislation – examples from state practice 2
2. Foreign personal holding company legislation – examples from state practice 2
3. CFC and equivalent legislation and DTCs 2
C Money-laundering legislation and international tax avoidance
1. Application of money-laundering legislation to foreign fiscal offences 1
D Co-operation between revenue authorities
1. Exchange of information – Article 26, OECD MTC and UN MDTC 3
2. Tax information exchange agreements 3
3. The Global Forum on Transparency and the Exchange of Information for Tax Purposes 3
4. Country by Country Reporting 2
5. Common Reporting Standard 2
6. Assistance in Collection Article 27, OECD MTC and UN MDTC 2
7. Developments in transparency e.g. beneficial ownership, digital currencies and environmental, social
and governance policies 3
E Conventions for administrative assistance in tax administration
1. The OECD/Council of Europe Convention 1
2. Regional arrangements for cooperation in tax administration 1
F Base Erosion and Profit Shifting (BEPS)
1. Awareness of the scope and details of the OECD BEPS Project 3
2. Overview of all BEPS Actions (1-15) 2
3. BEPS Action 2 – Hybrid mismatches 3
4. BEPS Action 3 – CFC rules 3
5. BEPS Action 5 – Harmful tax practices 3
6. BEPS Action 11 – Measuring and monitoring BEPS 3
7. BEPS Action 12 – Mandatory disclosure rules 3
8. BEPS Action 15 – Multilateral convention to implement tax treaty-related measures to prevent BEPS 3

VI Miscellaneous topics

A Indirect taxes and international taxation

1. The origin and destination bases for indirect taxes 2
2. GATT and GATS rules and the limitation on border tax adjustment 2
3. WTO rules and taxes – the WTO dispute resolution regime and taxation 2
B Cross-border mergers – examination of some of the issues and solutions 2
C OECD Secretariat analysis of tax treaties and the impact of the COVID-19 pandemic 1
D Emerging technologies in international taxation
1. Digital currencies and blockchain 2
2. Artificial intelligence and taxation 2
ADIT 9
RECOMMENDED
READING LIST
Permitted Texts OECD. Multilateral Convention to Implement Amount A
of Pillar One and Explanatory Statement (Paris: OECD,
Candidates may take a copy of the following texts only 2023)
into the examination: Available from the OECD:
www.oecd.org/en/topics/sub-issues/reallocation-
OECD. Additional Guidance on the Attribution of Profits of-taxing-rights-to-market-jurisdictions/multilateral-
to a Permanent Establishment under BEPS Action 7 convention-to-implement-amount-a-of-pillar-one.html
(Paris: OECD, 2018)
Available from the OECD: OECD. Multilateral Convention to Implement Tax Treaty
www.oecd.org/en/publications.html Related Measures to Prevent Base Erosion and Profit
Shifting and Explanatory Statement (Paris: OECD, 2016)
OECD. Agreement on Exchange of Information in Tax Available from the OECD:
Matters (Paris: OECD, 2002) www.oecd.org/en/topics/beps-multilateral-instrument.
Available from the OECD: html
www.oecd.org/content/dam/oecd/en/publications/
reports/2002/05/agreement-on-exchange-of- OECD. Report on the Attribution of Profits to Permanent
information-in-tax-matters_g1gh2b36/9789264034853- Establishments (Paris: OECD, 2010)
en.pdf Available from the OECD:
https://web-archive.oecd.org/2012-06-14/104309-
OECD. Base Erosion and Profit Shifting Project: 2015 45689524.pdf
Final Reports. Executive Summaries (Paris: OECD, 2015)
Available from the OECD: OECD. Standard for Automatic Exchange of Financial
https://web-archive.oecd.org/2019-06-27/373991- Account Information in Tax Matters (Paris: OECD, 2017)
beps-reports-2015-executive-summaries.pdf Available from the OECD:
www.oecd.org/en/publications.html
OECD. Convention on Mutual Administrative Assistance
in Tax Matters, as amended by 2010 Protocol (Paris: OECD. Transfer Pricing Guidelines for Multinational
OECD, 1988) Enterprises and Tax Administrations (Paris: OECD, 2022)
Available from the OECD: [ISBN: 9789264526914]
https://legalinstruments.oecd.org/en/instruments/ Available from the OECD: www.oecd-ilibrary.org
OECD-LEGAL-0235
United Nations. UN Model Double Taxation Convention
OECD. Model Tax Convention on Income and on Capital between Developed and Developing Countries 2021
(Paris: OECD, 2017) [ISBN: 9789264287945] and Commentary (New York: UN, 2021) [ISBN:
Available from the OECD: www.oecd-ilibrary.org 9789212591841]
Available from the United Nations: www.un.org
OECD. Multilateral Convention to Facilitate the
Implementation of the Pillar Two Subject to Tax Rule United Nations. Vienna Convention on the Law of
and Explanatory Statement (Paris: OECD, 2023) Treaties (New York: UN, 1969)
Available from the OECD: Available from the United Nations:
www.oecd.org/en/topics/sub-issues/subject-to- https://treaties.un.org/doc/Publication/MTDSG/
tax-rule/multilateral-convention-to-facilitate-the- Volume%20II/Chapter%20XXIII/XXIII-1.en.pdf
implementation-of-the-pillar-two-subject-to-tax-rule.
html

10 ADIT
Van Raad, K. Materials on International, TP and EU Tax Candidates should read the following books during their
Law 2020-2021. Volume A (Leiden: International Tax studies:
Centre, 2020) [ISBN: 9789082585452]
Available from the Leiden International Tax Centre: Arnold, B. International Tax Primer (Kluwer
www.itc-leiden.nl or [email protected] Law International, 5th edition, 2023) [ISBN:
Or available from Wildy & Sons: www.wildy.com 9789403542669]
Available from Wolters Kluwer:
No other texts may be taken into the examination. https://law-store.wolterskluwer.com

Baker, P. Double Taxation Conventions (London: Sweet

Essential Reading & Maxwell, looseleaf edition) [ISBN: 9780421673601]
Available from Sweet & Maxwell:
OECD. Action Plan on Base Erosion and Profit Shifting www.sweetandmaxwell.co.uk
(Paris: OECD, 2013) [ISBN: 9789264202702]
Available from the OECD: www.oecd-ilibrary.org Harris, P. International Commercial Tax (Cambridge
University Press, 2nd edition, 2020) [ISBN:
OECD. Tax Challenges Arising from Digitalisation. Report 9781108477819]
on Pillar One Blueprint: Inclusive Framework on BEPS Available from Cambridge University Press:
(Paris: OECD, 2020) www.cambridge.org/gb/academic
Available from the OECD: www.oecd-ilibrary.org
Lang, M. Introduction to the Law of Double Taxation
OECD. Tax Challenges Arising from Digitalisation. Report Conventions (IBFD, 3rd edition, 2021) [ISBN:
on Pillar Two Blueprint: Inclusive Framework on BEPS 9789087226848]
(Paris: OECD, 2020) Available from IBFD: www.ibfd.org
Available from the OECD: www.oecd-ilibrary.org
Oats, L. Principles of International Taxation
OECD. Tax Challenges Arising from Digitalisation of (Bloomsbury Professional, 9th edition, 2023) [ISBN:
the Economy. Consolidated Commentary to the Global 9781526526175]
Anti-Base Erosion Model Rules (Paris: OECD, 2023) Contents catered to ADIT syllabus.
Available from the OECD: www.oecd-ilibrary.org Available from Bloomsbury Professional:
www.bloomsburyprofessional.com
OECD. Tax Challenges Arising from Digitalisation of the
Economy. Global Anti-Base Erosion Model Rules (Pillar Qureshi, A. The Public International Law of Taxation
Two) (Paris: OECD, 2021) (Kluwer Law International, 2nd edition, 2019) [ISBN:
Available from the OECD: www.oecd-ilibrary.org 9789041184764]
Available from Wildy & Sons: www.wildy.com
United Nations. UN Practical Manual on Transfer Pricing
for Developing Countries 2021 (New York: UN, 2021) Reimer, E. and Rust, A. Klaus Vogel on Double Taxation
[ISBN: 9789212591858] Conventions (Kluwer Law International, 5th edition,
Available from the United Nations: www.un.org 2022) [ISBN: 9789403513003]
Available from Wolters Kluwer:
https://law-store.wolterskluwer.com
Books
Rohatgi, R. Roy Rohatgi on International Taxation.
Unfortunately, there is no single textbook or casebook Volume 1 (IBFD, 2018) [ISBN: 9789087224943]
for the entire syllabus. There are books which Available from IBFD: www.ibfd.org
cover parts of the syllabus, but these need to be
supplemented by references to articles in periodicals
(see below).

ADIT 11
Schwarz, J. Schwarz on Tax Treaties (Kluwer EC Tax Review (New York: Kluwer Law International)
Law International, 6th edition, 2021) [ISBN: [ISBN: 9789880007408]
9789403526300] Available from Kluwer Law International:
Available from Wolters Kluwer: www.kluwerlawonline.com
https://law-store.wolterskluwer.com
(Discount available for registered ADIT students) European Taxation (Amsterdam: IBFD) [ISSN: 00143138]
Available from IBFD: www.ibfd.org
Schwarz, J. Booth and Schwarz: Residence, Domicile and
UK Taxation (Bloomsbury Professional, 21st edition, Intertax (Deventer: Kluwer Law International)
2022) [ISBN: 9781526522634] Available from Kluwer Law International:
Available from Bloomsbury Professional: www.kluwerlawonline.com
www.bloomsburyprofessional.com
Or available from Amazon: www.amazon.com Tax Notes International (Tax Analysts) [ISSN: 10483306]
Available from LexisNexis: www.lexisnexis.co.uk
Shome, P. et al. Reimagining International Taxation: Also available from Tax Analysts: www.taxanalysts.com
Navigating Through the Crises of Pandemic, Lack of
Consensus and Retrospective Taxation (Oakbridge,
2021) [ISBN: 9788194991175] Case Law
Available from M&J Services: https://mandjservice.com
The syllabus does not examine the rules of any one
state. Decisions of the courts of many
Periodicals countries are therefore relevant to this subject. Leading
cases are drawn from as far afield as New Zealand,
Because international taxation is a rapidly developing South Africa, Canada, France and Germany.
subject, and because of the lack of a single textbook,
candidates will have to follow much of the course Cases from the non-English speaking world are
through articles in periodicals. Several periodicals generally from the Bundesfinanzhof (German Federal
are devoted to the subject of international taxation. Tax Court), the Conseil d’Etat (French Supreme
Unfortunately, only a very good tax library is likely to Administrative Court) or the Hoge Raad (Netherlands
have all these periodicals. A number of the journals are Supreme Court). The more important cases are
available electronically from various websites. summarised in European Taxation or the Bulletin for
International Taxation.
The principal periodicals are:
British Tax Review (London: Sweet & Maxwell) [ISSN: International Tax Law Reports, also known as ITLR,
00071870] contains the texts of important international tax cases
Also known as BTR. (including English translations of some cases).
Available from Sweet & Maxwell: Available from LexisNexis: www.lexisnexis.co.uk
www.sweetandmaxwell.co.uk
These law reports are available online as part of the
Bulletin for International Taxation (Amsterdam: IBFD) LexisNexis online service. CCH’s British Tax Cases are
[ISSN: 00074624] also useful.
Available from IBFD: www.ibfd.org
The IBFD also offers a useful Tax Treaty Database.
Cahiers de Droit Fiscal International (Studies on Available at:
International Fiscal Law) (Deventer: Kluwer Law www.ibfd.org/IBFD-Products/Tax-Treaties-Database
International)
Also known as Cahiers DFI.
Available from IFA:
www.ifa.nl/publications/cahiers/pages/default.aspx

12 ADIT
 MODULE 2.01 -
AUSTRALIA OPTION
I Core Income Tax rules 35%
II Cross-border Income Tax rules 30%
III Income Tax administration 5%
IV Fringe Benefits Tax (FBT) 10%
V Goods and Services Tax (GST) 20%

I Core Income Tax rules

A Jurisdiction to tax – Australian residents

1. Residency: distinguishing between residents, temporary residents and foreign residents 3
2. Source: classes of oncome and statutory/common law source rules 3
B Concepts of income
1. Ordinary income 2
2. Statutory income 2
3. Non-assessable non-exempt (NANE) income 2
C Deductions
1. General deductions and special deductions 2
2. Capital allowances 2
D Taxing capital gains
1. CGT event, assets and exemptions 2
2. CGT concessions and rollovers 2
E Companies, Partnerships and Trust 2
F Dividends and imputation 2
G Losses 2
H Consolidation regime 2
I Domestic anti-avoidance measures
1. General anti-avoidance rule (GAAR) 3
2. Multinational anti-avoidance law (MAAL) 2
3. Diverted Profits Tax (DPT) 2
5. DTA methods to avoid double taxation 3

II Cross-border Income Tax rules

A Taxing residents on foreign income

1. Exemption/exemption with progression methods 3
2. Foreign tax credit (known as “foreign income tax offset”) methods 3
3. Deduction methods 1
4. Attribution of income CFC; transferor trust; FIFs 2
B Debt rules
1. Thin capitalisation earnings based tests 2
C Hybrid mismatch rules 2
D Taxing foreign residents
1. Withholding taxes on certain dividends, on interest and on royalties 3
2. Taxes on capital gains 3
3. Other income 3
E Taxing temporary residents
1. Australian sourced and foreign employment income 2

ADIT 13
 F Double tax agreements (DTAs)
1. Operation for Taxes and Taxpayers covered 3
2. Business profits, specific provisions and Allocation rules 3
3. DTA approaches to avoid double taxation 3

III Income Tax administration

A Penalties (Schedule 1, Taxation Administration Act 1953) 2

B Tax scheme promoters (Taxation Administration Act 1953) 2

IV Fringe Benefits Tax (FBT)

A General principles 3
B Exemptions 2
C Valuation of fringe benefits
1. Cars 1
2. Loans and debt waiver 1
3. Expense payment 1
4. Housing 1
5. Property 1
6. Residual 1
7. Exemptions, reductions and concessions 1
D International aspects 3

V Goods and Services Tax (GST)

A General principles 3
B Registration 2
C Grouping 2
D Non-taxable supplies 2
E GST-free supplies 2
F Input taxed supplies 2
G International aspects
1. Exports 3
2. Imports 3
3. Concept of “connected with Australia” 3

14 ADIT
 RECOMMENDED
READING LIST
Permitted Texts Case Law
Candidates may take a copy of the following text only The following court decisions:
into the examination: • Associated Newspapers Ltd v Federal Commissioner
of Taxation (FCT); Sun Newspapers Ltd v FCT (1938)
Deutsch, R. et al. Australian Tax Handbook 2024 61 CLR 337
(Thomson Reuters Australia, 2024) • B&F Investments Pty Ltd as trustee for the Illuka
[ISBN: 9780864600868] Park Trust v Commissioner of Taxation [2023] FCAFC
Available from Thomson Reuters: 89
https://store.thomsonreuters.com.au/the-australian- • Blank v Commissioner of Taxation (CT) (2016) 258
tax-handbook-2024/productdetail/131505 CLR 439
• Chevron Australia Holdings Pty Ltd v CT [2017
No other texts may be taken into the examination. FCAFC 62]
• CT v Hart (2004) 217
• CT v McNeil (2007) 229 CLR 656
Essential Reading • FCT v BHP Billiton Ltd [2020] HCA 5
• FCT v Bogiatto & Ors (No 2) [2021] FCA 98
Income Tax Assessment Acts • FCT v French (1957) 98 CLR 398
Available from ComLaw: www.comlaw.gov.au • FCT v Myer Emporium (1987) 163 CLR 199
• FCT v Payne (2001) 202 CLR 93
• FCT v Robert Mitchum (1965) 113 CLR 401
Additional Reading • FCT v Spotless Services Ltd (1996) 186 CLR 404
• FCT v Thomas [2018 HCA 31]
Deutsch, R. et al. Principles and Practice of Double • London Australia Investment Co Ltd v FCT (1977)
Taxation Agreements (BNA International, 2008) 138 CLR 106
[ISBN: 9780906524152] • Lunney v FCT; Hayley v FCT (1958) 100 CLR 478
Available from BNA International: • McLaurin v FCT (1961) 104 CLR 381
www.bnai.com/shop • Peter Greensill Family Co Pty Ltd (trustee) v CT
[2021] FCAFC 99
Taylor, J. et al. Understanding Taxation Law 2022 • Ronpibon Tin NL v FCT; Tongkah Compound NL v
(LexisNexis, 2022) FCT (1949) 78 CLR 47
[ISBN: 9780409355185] • Uber BV v CT [2017] 1 FCA 110
Available from LexisNexis: www.lexisnexis.com.au

Wolters Kluwer. Australian Master Tax Guide: Tax Year

End Edition (Wolters Kluwer, 75th edition, 2024) [ISBN:
9781923130319]
Available from Wolters Kluwer:
www.wolterskluwer.com.au

ADIT 15
MODULE 2.02 -
CHINA OPTION
I The structure of the Chinese tax system 5%
II Individual Income Tax (IIT) 15%
III Enterprise Income Tax (EIT) 80%

I The structure of the Chinese tax system

A Sources of tax law 1

B Structure of tax administration 1

II Individual Income Tax (IIT)

A Jurisdiction to tax 2
B Schedular system 2
C Wages and salaries 2
D Business income 2
E Services 2
F Income from property and investment 2
G Capital gains 2
H The effects of tax treaties 3
I Tax administration 1

III Enterprise Income Tax (EIT)

A Legislative framework 1
B Jurisdiction to tax 1
C Inbound rules: Foreign investment enterprises
1. Residence 2
2. Taxable income 2
3. Tax rates 2
4. Tax incentives 2
5. Reorganisations 3
6. Thin capitalisation rule 3
D Inbound rules: foreign corporations operating in China
1. “Establishment”, “place of business” and “agent” 3
2. Effectively connected income 3
3. Treaty considerations 3
E Inbound withholding taxes on investment income
1. Chinese source of income 2
2. Dividends 2
3. Interest 2
4. Rents and royalties 2
5. Capital gains 2
6. Treaty consideration 3
F Outbound rules
1. Foreign tax credit 3
2. Controlled Foreign Corporations (CFCs) 3
G Transfer pricing 3
H General anti-abuse rule (GAAR) 3

16 ADIT
 RECOMMENDED
READING LIST
Permitted Texts Li, J. and Huang, H. “Transformation of the Enterprise
Income Tax in China: Internationalization and Chinese
Candidates may take a copy of the following text only Innovations” (2008)
into the examination: Available from Social Science Research Network:
http://papers.ssrn.com/sol3/papers.cfm?abstract_
King & Wood Mallesons. China Master Tax Guide id=1313727
2021 (Wolters Kluwer, 14th edition, 2021) [ISBN:
9789887935759] State Administration of Taxation. Circular (Guoshuifa) of
Available from Professional Bookshop: the State Administration of Taxation on the Issue of the
www.pbookshop.com Implementation Measures of Special Tax Adjustments
(Provisional) (SAT, 2009, No. 2)
No other texts may be taken into the examination. Available from KPMG:
www.kpmg.com/CN/en/services/Tax/Global-Transfer-
Pricing-Services/Documents/Circular-20090108-0002-
Essential Reading 1e.pdf

Cao, F. Corporate Income Tax Law and Practice in the State Administration of Taxation. SAT Bulletin (Gonggao)
People’s Republic of China (Oxford University Press, [2016] No. 64: Bulletin on Issues Related to Improving
2011) [ISBN: 9780195393392] the Administration of Advance Pricing Agreements (SAT,
Available from Amazon: www.amazon.com 2016)
Available from State Administration of Taxation:
Li, J. International Taxation in China: A Contextualized www.chinatax.gov.cn/2013/n2925
Analysis (IBFD, 2016) [ISBN: 9789087223809]
Available from IBFD: www.ibfd.org United Nations. UN Practical Manual on Transfer Pricing
for Developing Countries (2021) (New York: UN, 2021)
Li, J. “Fundamental Enterprise Income Tax Reform in Available from the United Nations: www.un.org
China: Motivations and Major Changes” (2007)
Available from Social Science Research Network: Zhang, X. The Law and Practice of International Tax
http://papers.ssrn.com/sol3/papers.cfm?abstract_ Treaties in China (Wildy, Simmonds and Hill Publishing,
id=1030656 2003) [ISBN: 9781898029625]
Available from Amazon: www.amazon.com
Li, J. “Tax Transplants and Local Culture: A Comparative
Study of the Chinese and Canadian GAAR” (2010) 2011 UK/China Double Taxation Convention, together
Available from Social Science Research Network: with 2013 Protocol
http://papers.ssrn.com/sol3/papers.cfm?abstract_
id=1645336

Li, J. “The Great Fiscal Wall of China: Tax Treaties and

Their Role in Defining and Defending China’s Tax Base”
(2012)
Available from Social Science Research Network:
http://papers.ssrn.com/sol3/papers.cfm?abstract_
id=2159405

ADIT 17
MODULE 2.03 -
CYPRUS OPTION
I Income Tax
A Basic concepts 5%
B Sources of income 10%
C Deductions, exemptions and personal allowances 10%
D Special modes of taxation 5%
E Reorganisations 5%
F Base Erosion and Profit Shifting (BEPS) and relevant EU initiatives 15%
G Double taxation relief and the Cyprus double tax treaty network 15%
II Special Defence Contribution (SDC) 5%
III Capital Gains Tax 8%
IV General Healthcare System
V Collection and assessment of tax
VI Trusts 10%
VII Land Transfer Fees
VIII Stamp Duty
IX Value Added Tax (VAT) 10%
X Organisation of the Tax Department 2%

I Income tax

A Basic concepts
1. Meaning of residence for individuals and relevance of the term 3
2. Meaning of residence for legal entities and relevance of the term 3
3. Explanation of transparency of partnerships 1
4. Meaning of tax year 2
5. Explanation of the implications of statute law, case law and tax circulars 1
6. Meaning of arm’s length transactions and implications of Article 33 2
B Sources of income
1. Explanation of income of residents vs. non-residents 2
2. Income from business including from isolated transactions (badges of trade) 3
3. Income from employment including benefits in kind and 90-day rule 2
4. Income from dividends 2
5. Income from interest, including explanation of interest income treated as business income 2
6. Income from pensions and annuities 2
7. Income from immovable property, including value of owner’s benefit 2
8. Income from intellectual property 3
9. Income from trading goodwill 2
10. Income from benefit on debit balances 3
C Deductions, exemptions and personal allowances
1. The concept of chargeable income 3

18 ADIT
 2. Deductible and non-deductible expenditure 3
3. Exemptions available including overseas permanent establishments 2
4. Deemed interest expense on ‘fresh capital’ injection from 1 January 2015 3
5. Tax treatment of losses 3
6. Capital allowances 3
7. Personal allowances 3
8. Social insurance and social cohesion fund contributions 2
D Special modes of taxation
1. Shipping and aircraft businesses 1
2. Insurance companies 1
3. Royalties 2
4. Film rentals 2
5. Income of professionals, artists and other public entertainers 2
6. Income of companies providing services to the upstream energy sector 2
E Debt restructuring
1. Definition of restructuring, lender, restructuring price 2
2. Exemption from taxation of amounts written off restructured loans 2
3. Provisions to which exemptions do not apply 2
F Reorganisations
1. Types of reorganisations 1
2. Tax implications of reorganisation schemes 1
3. Exemptions do not apply in cases of artificial arrangements for the purposes of avoidance or
deferral of taxes 2
G Base Erosion and Profit Shifting (BEPS) and relevant EU initiatives
1. Understanding of the concept of BEPS, and BEPS as a tax avoidance issue 1
2. BEPS by trading, royalty and financing companies 2
3. Provisions in Cyprus legislation to combat BEPS 3
4. Double taxation avoidance where related companies are caught in BEPS, the European code of
conduct (EC2006/C176/02) and the relevant provisions of Article 9, OECD MTC 1
5. DAC6 reporting of cross-border transactions 2
H Anti Tax Avoidance Directive (ATAD)
1. Interest limitation rule 2
2. Controlled foreign company (CFC) rule 2
3. General anti-abuse rule (GAAR) 2
4. Exit taxation 2
5. Hybrid mismatch rules 2
6. Interest Limitation circular 5/2023, 05/07/2023 2
I New transfer pricing regime, including Advance Pricing Arrangements (APAs), transfer pricing
documentation and sanctions (Article 33C and KDP314/2022, 29/07/2022; KDP273/2022, 08/07/2022) 2
J Double taxation relief and the Cyprus double tax treaty network
1. Double tax treaty relief 3
2. Unilateral relief and relief for underlying tax 3
3. Outline of the OECD MTC 3
4. Cyprus’s double taxation treaty network, including knowledge of the most popular treaties for
inward and outward investment 3
5. Restriction of Foreign Dividend income exemption if it erodes the taxable base of the remitter
company 2
6. Restriction of unilateral double taxation relief on foreign dividends received in cases of artificial
arrangements for the purposes of avoidance or deferral of taxes 2
7. Multilateral automatic exchange of information – application of the OECD Common Reporting
Standard (CRS) 1

ADIT 19
II Special Defence Contribution (SDC)

A Application of SDC
1. Residents and domiciled vs. non-domiciled residents and non-residents (including when the
beneficial owner of a structure is non-domiciled or non-resident) 1
B Taxation of dividends
1. SDC on dividends and deemed dividend distribution rules 1
2. Exemption of SDC on dividends between resident companies and the four year exception rule 1
3. Clawback of deemed distribution exemption on reorganisation, on the future disposal of previously
exempt asset transfer 2
4. Definition of restructuring, lender, restructuring price 1
5. Exemption from deemed distribution of amounts written off restructured loans 2
6. Provisions whereby exemption from deemed distribution of amounts written off from restructured
loans does not apply, and general anti-avoidance provisions 2
C Taxation of interests
1. SDC on interest including explanation of application when interest is considered business income 1
2. Application of the reduced rate 1
D Taxation of rental income
1. SDC on rental income 1

III Capital Gains Tax

A Chargeable gain 1
B Rollover relief 1
C Application to sale of shares 1
D Exemptions and losses 1
E Exemption from scope of tax of disposals of taxable property acquired up to 31 December 2016 1
F Definitions of restructuring, lender, restructuring price 2
G Capital Gains Tax exemption for amounts written off from restructured loans 2
H Provisions under which exemptions do not apply 2
I Tax is the obligation of the borrower, but the lender has the obligation to withhold in cases where
exemptions do not apply 2
J Definitions of sale and leaseback, finance lease, simple finance lease, lessor, leasehold premium,
lessee, connected person and company 2
K Transfer of leasehold premiums between connected parties; tax obligation on the lessee, the lessor has
the obligation to withhold the tax 2

IV General Healthcare System

A Contribution base 2
B Contribution rates per type of income 2
C Administration 2

V Collection and assessment of tax

A Method and dates of payment of tax, including temporary taxation provisions 2

B Penalties for late or non-payment 2
C Powers of the Commissioner 1
D Definitions for debt restructuring, lender, restructuring price 1
E Memo on immovable property transferred to the lender when the property is transferred under a debt
restructuring scheme 1

20 ADIT
 F Commissioner discretion to transfer the memo to another property, to negotiate a settlement to free it
from the memo or to grant relief for insolvent individuals of illiquid companies 1
G Objections, assessments and appeals 1
H Sanctions for the new Transfer Pricing Regime (Article 50(g)) 1

VI Trusts

A The Cyprus International Trust vs. the Cyprus Trust 3

B Administration of a trust for tax purposes 3

VII Land Transfer Fees

A Rates of fees 1
B Definitions for restructuring, lender, restructuring price 1
C Anti-avoidance; false declaration of the restructuring price 1

VIII Stamp Duty

A Basic rules regarding instruments liable to duty 1

B Definitions for restructuring, lender, restructuring price 1
C Stamp duty exemption for documents within a debt restructuring scheme 1
D General anti-avoidance provision regarding artificial arrangements for tax avoidance 1

IX Value Added Tax (VAT)

A Meaning of taxable person and taxable supply 2

B Place of supply rules for goods and services, including triangulation and reverse charge principle 2
C The application of VAT to cross-border acquisitions and supplies 2
D The application of VAT to imports and exports 2
E VAT mixed transactions 2
F Optional cash accounting scheme 2
G Application of harmonised time limits for issuing invoices for intra-Community trade 2
H Electronic invoices: content, storage, transmission, integrity and authenticity 2
I Tax point changes for lawyers’ services and services in the building industry 2
J Definitions for debt restructuring, lender, restructuring price 1
K Memo on immovable property transferred to the lender when the property is transferred under a debt
restructuring scheme 1
L Commissioner discretion to transfer the memo to another property, to negotiate a settlement to free it
from the memo or to grant relief for insolvent individuals of illiquid companies 1

X Organisation of the Tax Department

A Organisation of the Tax Department 3

ADIT 21
RECOMMENDED
READING LIST
Permitted Texts Savvides, S. Cyprus Tax Laws loose-leaf books in Greek
(CTR Publications) [ISBN: 99635950104]
Candidates may take a copy of the following texts only Available from CTR Publications:
into the examination: www.ctrpublications.com

OECD. Model Tax Convention on Income and on Capital Terra, B. and Kajus, J. A Guide to the European VAT
(Paris: OECD, 2017) [ISBN: 9789264287945] Directives 2024 (IBFD, 2024) [ISBN: 9789087228729]
Available from the OECD: www.oecd-ilibrary.org Available from IBFD: www.ibfd.org

Van Raad, K. Materials on International, TP and EU Tax

Law 2020-2021. Volume A (Leiden: International Tax Case Law
Centre, 2020) [ISBN: 9789082585452]
Available from the Leiden International Tax Centre: Particular attention should be given to the following
www.itc-leiden.nl or [email protected] court decisions:
Or available from Wildy & Sons: www.wildy.com
• Canada: Prévost Car Inc vs. The Queen, 2008 D.T.C.
3080, on the definition of the term ‘beneficial
No other texts may be taken into the examination.
ownership’ in the context of a double tax treaty
• CY: Hagop Matossian, Case 1102 [14.9.1992], on
tax of notional profit, enforcing the principle laid
Publications down in the UK case of Sharkey vs. Wernher [1956]
CTR. A Practical Application of Income Tax in Businesses • CY: Faunus Investment Company Ltd, Case 423/85
(CTR Publications) [30.12.1986], on rule that double tax treaty
This manual covers all tax legislation in Cyprus in detail, provisions override local tax law provision
giving an article-by-article explanation of the law, and • CY: Serafino Shoe Industry and Trading Limited,
including important court decisions and tax circulars. Case 757 [16.05.1991], on rules on interpreting
Looseleaf binder with subscription required for provisions of tax law
updates. Available only in Greek. • CY: Canon Assurance Limited, Case 1203,
Available from CTR Publications: [26.01.1996], on existence of permanent
www.ctrpublications.com establishment
• ECJ: Marks and Spencer plc vs. David Halsey
CTR. A Practical Application of VAT in Businesses (CTR
(Her Majety’s Inspector of Taxes), Case C-446/03
Publications)
[13.12.2005], on use of losses from foreign
This manual covers all VAT legislation in Cyprus in detail,
subsidiary as group relief
giving an article-by-article explanation of the law, and
including important court decisions and tax circulars. • UK: Wood vs. Holden [26.01.2006], on place of
Looseleaf binder with subscription required for management and control
updates. Available only in Greek.
Available from CTR Publications: The following court decisions are also of interest:
www.ctrpublications.com
• CY: Amani Enterprises (Houses) Ltd, Case 438
[27.3.1990], on badges of trade
OECD. Transfer Pricing Guidelines for Multinational
Enterprises and Tax Administrations (Paris: OECD, 2022) • CY: Lavar Shipping Co. Ltd, Case 1109 [15.7.1994],
[ISBN: 9789264526914] on general principle regarding deduction of losses
Available from the OECD: www.oecd-ilibrary.org • CY: Ktimatiki Etaireia A X”Savva Ltd [Κτηματική
Εταιρεία Α. Χ”Σάββα Λτδ], Case 2090, [18.12.1997],
on badges of trade

22 ADIT
 • CY: Theodosis Karaolis Holdings Ltd and A On the deductibility of interest expense:
Kapetanios Holdings Ltd, Case 138/05 [11.02.2009],
• Circular 2010/8 – Interest that is not deductible for
on computation of taxable gain for capital gains tax
the purposes of calculating taxable income (Article
purposes when selling shares in a company that
11 of the Income Tax Law)
owns immovable property in Cyprus

On deduction of losses and distribution of expenses at

International court cases can be found through a simple
arriving at taxable income:
internet search.
Cyprus court cases are available free of charge from the • Circular 2008/14 – Deduction of losses and
Cyprus Bar Association’s website: distribution of expenses and deductions for the
www.cylaw.com purposes of determining taxable income

On when interest income constitutes business income:

Tax Laws and Treaties
• Circular 2003/8 – Article 8(19) of the Income Tax
Particular attention should be given to the following: Law and Article 3(2)(b)(i) of the special contribution
for the defence of the Republic Law
• The Income Tax Law, Law 118(I)/2002
• The Special Defense Contribution, Law 117(I)/2002 On debt restructuring:
• The Capital Gains Tax, Law 52/1980
• Circular 2016/2 – Debt restructuring
• The General Healthcare System, Law 89(I)/2001

On BEPS:
All are available from the Ministry of Finance website:
www.mof.gov.cy • Double taxation relief for related companies, Law
11(III)/2006 (90/436/EEC)
• Circular 2007/5 – Acknowledgement of Law
Other Tax and VAT Laws and Circulars 11(III)/2006 and application of EU code 2006/
C176/02
Particular attention should be given to the following • Letter of Director of Taxes dated 4 July 2011 to
circulars issued by the Department of Inland Revenue of ICPAC on acceptable profit margins (within the
Cyprus: frame of s.33 of Law 118(I)/2002 on triangular loan
On exchange differences: relationships between connected companies)
• ACTL Ministerial Order 161/2016 dated 20 May
• Circular 1990/23 – Tax treatment of exchange
2016 on Multilateral Automatic Exchange of
differences
Information (Adoption of the OECD Common
• Circular 2008/4 – Tax treatment of exchange Reporting Standard)
differences arising directly or indirectly from the
On double tax relief:
sale and purchase of shares
• Circular 2011/14 – Providing tax relief with regards
On the income/profit tax exemption on sale of titles: to overseas tax that was paid on income arising
outside of the Republic and which is taxable in the
• Circular 2008/13 – List of investment products that Republic (Articles 35 and 36 of the Income Tax Law)
constitute ‘titles’
• Circular 2009/6 – Amendment to circular 2008/13 On double tax treaties:
• Circular 2012/11 – Protocol that amends the
Double Tax Treaty between Cyprus and Russia

ADIT 23
On benefits in kind: • Interpretative Circular 166 – Obligation to register
under Article 11B
• EE37 Income Tax, 15 April 2019

VAT circulars exist only in Greek and are available from

On non-returnable capital contributions:
the Ministry of Finance website:
• EE25 Income Tax, 3 September 2018 www.mof.gov.cy/mof/vat/vat.nsf/All/EB4F13A5B66030
53C225723C002A8DDF?OpenDocument
On back-to-back financing arrangements:
• EE03 Income Tax, 30 June 2017 European Union Directives
On the Notional Interest Deduction (NID): The following EU Directives are of interest:
• Circular 2016/10 – Interpretation and Tax Practice • Council Directive 2003/49/EC of 3 June 2003 on a
for New Article 9B of the Income Tax Law 116 (I) / common system of taxation applicable to interest
2015 for Notional Interest Deduction (NID) on new and royalty payments made between associated
capital injected into the enterprise companies of different Member States [Interest
and Royalties Payments Directive]
On non-domiciles: • Council Directive 2003/123/EC of 22 December
• Circular 2017/03 – Exemption from special 2003 on the common system of taxation applicable
contribution to the defense of the Republic for in the case of parent companies and subsidiaries
non-residents in Cyprus of different Member States [Parents – Subsidiary
Directive]
Tax circulars are available only in Greek, and are • Council Directive 2005/19/EC of 17 February 2005
available from the Ministry of Finance website: on the common system of taxation applicable
www.mof.gov.cy/mof/ird/ird.nsf/dmlcirculars_gr/ to mergers, divisions, transfers of assets and
dmlcirculars_gr?OpenDocument exchanges of shares concerning companies of
different Member States [Mergers Directive]
Particular attention should be given to the following • Council Directive 2016/1164 of 12 July2016 laying
VAT circulars, issued by the authorities: rules against tax avoidance practices directly
affecting the internal market, and Council Directive
• Interpretative Circular 86 – Place of supply of 2017/952 of 29 May 2017 on hybrid mismatches
services – changes after 1 May 2004 with third countries amending the 2016/1164
• Interpretative Circular 139 – Change in the place of Directive
supply rules for services as of 1 January 2010 • Council Directive 2018/822 of 25 June 2018 (DAC6)
• Interpretative Circular 145 – Change in the place on mandatory automatic exchange of information
of supply rules for certain services as of 1 January of reportable cross-border transactions (refer
2011 also to the FAQ on application of DAC6 of the Tax
Department’s website)
The following VAT circulars are also of interest:
• Interpretative Circular 101 – Sale of buildings with
the land
• Interpretative Circular 105 – Barter transactions in
the construction industry
• Interpretative Circular 127 – Deduction of input
VAT when applying the reverse charge

24 ADIT
 MODULE 2.04 -
HONG KONG OPTION
I Income Tax
A Taxation of individuals 25%
B Taxation of corporate business 35%
C Tax administration 10%
D Tax planning and tax audit 10%
E Double taxation relief, transfer pricing, the Hong Kong double tax treaty network and the impact of
international tax rules 15%
II Stamp Duty 5%

I Income Tax

A Taxation of individuals
1. Salaries tax on income from employment 3
2. Profits tax on income from self-employment 2
3. Property tax on income from property 1
4. Personal assessment 1
Within each of the above headings:
i. Scope of charge: meaning of source of income and residence issues 3
ii. Deduction, relief, and allowances 2
iii. Calculation of tax liability 1
B Taxation of corporate business
1. Profits tax on income of Hong Kong companies trading in Hong Kong, mainland China and overseas 3
2. Profits tax on income of non-Hong Kong resident companies trading in Hong Kong 2
3. Special categories of taxpayer
i. Insurance corporations 2
ii. Financial institutions 2
iii. Shipping and airline companies 2
iv. Clubs and associations 2
v. Funds 2
Within each of the above headings:
i. Scope of charge: meaning of source of income and residence issues 3
ii. Deduction, relief, allowances 2
iii. Calculation of tax liability 1
4. Tax concessions on certain types of business or income, including ship leasing, aircraft leasing,
intellectual property income (patent box regime) and family-owned investment holding vehicles 2
C Tax administration
1. Assessment procedures and tax compliance 1
2. Objections and appeals 2
3. Penalties 2
D Tax planning, and tax audit
1. Tax deferral and mitigation – principles and strategies 3
2. Anti-tax avoidance rules – specific rules, general rules and transfer pricing rules 3
3. Advance ruling 1
4. Tax investigation – process, methods of quantification of under-statement, offences and penalties 2

ADIT 25
 E Double taxation relief, transfer pricing, the Hong Kong double tax treaty network and the impact of
international tax rules
1. The basis of double taxation relief: unilateral and bilateral 2
2. The rules for determining double taxation relief: tax deduction, tax exemption, tax credit, etc. 1
3. The Hong Kong treaty network, and operation of major tax treaties and arrangements (the relevant
treaties and arrangements will be provided in the examination paper) 1
4. Principle and operation of transfer pricing 2
5. Transfer pricing methodologies and documentation, including advance pricing agreements (APAs) 1
6. Foreign-sourced income exemption 2

II Stamp Duty

A Scope of charge 2
B Voluntary disposition 2
C Relief and exemption 2
D Calculation of Stamp Duty 1
E Stamp Duty planning 1

26 ADIT
 RECOMMENDED
READING LIST
Permitted Texts Ho, P. K. W. and Mak, K. P. Hong Kong Taxation and Tax
Planning (Pilot Publishing, 21st edition, 2023) [ISBN:
Candidates may take a copy of the following texts only 9789888652792]
into the examination: Available from Bloomsbury Books:
www.bloomsbury.com.hk
Wolters Kluwer. Hong Kong Master Tax Guide Or available from Professional Bookshop:
2024-2025 (Wolters Kluwer, 32nd edition, 2024) [ISBN: www.pbookshop.com
9789887617235]
Available from Wolters Kluwer: Wolters Kluwer. Hong Kong Revenue Legislation
www.wolterskluwer.com.hk (Wolters Kluwer (HK), 1989-)
Or available from Professional Bookshop: Available from Wolters Kluwer:
www.pbookshop.com www.wolterskluwer.com.hk

No other texts may be taken into the examination. Wong, J. and Wong, P. Taxation in Hong Kong: a
Practical Guide 2023-2024 (Wolters Kluwer (HK), 2023)
[ISBN: 9789887617181]
Additional Reading Available from Professional Bookshop:
www.pbookshop.com
Chang, J. et al. Butterworths Hong Kong Stamp Duty
Handbook (London: LexisNexis, 3rd edition, 2023)
[ISBN: 9789888815739] Online Resources
Available from LexisNexis: www.lexisnexis.com.hk
Bilingual Laws Information System (for Inland Revenue
Chow, W. W. S. and Mariani, S. Hong Kong Tax Law: Ordinance): www.legislation.gov.hk
Cases and Materials (LexisNexis, 7th edition, 2021)
[ISBN: 9789888764259] Hong Kong Board of Review (for Board of Review’s
Available from LexisNexis: www.lexisnexis.com.hk decisions): www.info.gov.hk/bor

Halkyard, A. and Willoughby, P. Encyclopaedia of Hong Hong Kong Inland Revenue Department:
Kong Taxation (LexisNexis, three-volume looseleaf www.info.gov.hk/ird
edition, 2011) [ISBN: 9780409996340]
Available from LexisNexis: www.lexisnexis.com.hk

ADIT 27
MODULE 2.05 -
INDIA OPTION
I Tax jurisdiction (including territoriality) 10%
II Taxation of individuals 15%
III Taxation of companies 20%
IV Tax planning 20%
V Use of tax treaties 10%
VI Tax procedures 10%
VII Withholding taxes 10%
VIII Tax administration 5%

I Tax jurisdiction (including territoriality)

A Charge to tax, including deemed income under Section 9 3

B Residence, ordinary residence and non-residence 3

II Taxation of individuals

A Employment income 3
B Reliefs 1
C Investment income 2
D Capital gains 3

III Taxation of companies

A Business profits 3
B Capital gains 3
C Withholding taxes 3
D Computations 3
E Transfer pricing 2
F Funding costs 3
G Dividends and income from other sources 3
H Equalisation Levy 3

IV Tax planning

A Judicial anti-avoidance doctrine 3

B General anti-abuse rule (GAAR) 2
C Vodafone changes 3
D Specific anti-avoidance legislation 1
E Implications of the OECD BEPS Project for the Indian taxation of cross-border activities 2
F India’s positions under the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent
BEPS (MLI) 2
G Residence of partnerships 2
H Availability of treaty benefits 2

28 ADIT
V Use of tax treaties

A Knowledge of most popular treaty locations for inward and outward investment 2
B Use of treaty residence certificates 2
C Interaction with GAAR 2
D The courts’ approach to treaties 3
E India’s Tax Information Exchange Agreement (TIEA) network 1

VI Tax procedures

A Advance rulings 3
B Transfer pricing 2
C Advance pricing agreements 2
D Section 195 procedures 3

VII Withholding taxes

A What does withholding apply to? 2

B Payment machinery 1
C Withholding tax rates 2

VIII Tax administration

A Assessment and compliance 2

B Appellate procedure 2
C Other judicial remedies 2
D The Taxpayers’ Charter and faceless assessment 2
E Interest and penalties 1
F Collection and enforcement 1

ADIT 29
RECOMMENDED
READING LIST
Permitted Texts Books
Candidates may take a copy of the following texts only Butani, M. Transfer Pricing: the Indian Landscape
into the examination: (LexisNexis, 3rd edition, 2021) [ISBN: 9788195294534]
Available from LexisNexis: www.lexisnexis.in
Taxmann. Direct Taxes Manual (Taxmann, three-volume
edition, 54th edition, 2024) [ISBN: 9789357789332] Chaturvedi, K. and Pithisaria, M. Chaturvedi and
Available from Taxmann: www.taxmann.com/bookstore Pithisaria’s Income Tax Law (LexisNexis, 8th edition,
2023) [ISBN: 9789389991376]
Taxmann. Income Tax Act (Taxmann, 69th edition, 2024) Available from LexisNexis: www.lexisnexis.in
[ISBN: 9789364559881]
Available from Taxmann: www.taxmann.com/bookstore Datar, A. Kanga and Palkhivala’s The Law and Practice
of Income Tax (LexisNexis, 11th edition, 2020) [ISBN:
UK/India Double Taxation Treaty 9789389991178]
Available from the Income Tax Department: Available from LexisNexis: www.lexisnexis.in
https://incometaxindia.gov.in/
dtaa/108690000000000096.htm Mittal, D. Indian Double Taxation Agreements and Tax
Laws (Taxmann, three-volume edition with free CD, 7th
No other texts may be taken into the examination. edition, 2014) [ISBN: 9789350715321]
Available from Taxmann: www.taxmann.com/bookstore

Tax Legislation Mittal, D. Law and Practice Relating to General Anti

Avoidance Rules (GAAR) (Taxmann, 2012) [ISBN:
Draft Report on Retrospective Amendments Relating to 9789350710685]
Indirect Transfer (New Delhi: Ministry of Finance Expert Available from Taxmann: www.taxmann.com/bookstore
Committee, 2012)
Available from the Ministry of Finance: Shome, P. Taxation Principles and Applications: a
www.finmin.nic.in Compendium (LexisNexis, 2014) [ISBN: 9789351431244]
Available from LexisNexis:
Final Report on General Anti Avoidance Rules (GAAR) in www.lexisnexis.in/taxation-principles-and-applications-
Income Tax Act 1961 (New Delhi: Ministry of Finance a-compendium.htm
Expert Committee, 2012)
Available from the Ministry of Finance: Taxmann. Equalisation Levy Commodities Transaction
www.finmin.nic.in Tax & Securities Transaction Tax with Rules: as
Amended by Finance Act 2021 (Taxmann, 2021) [ISBN:
Reports of the Tax Administration Reform Commission 9789390831616]
(New Delhi: Tax Administration Reform Commission, Available from Taxmann: www.taxmann.com/bookstore
2014-2015)
Available from the Ministry of Finance: Taxmann. International Taxation Digest (Taxmann,
www.finmin.nic.in 2019) [ISBN: 9789388750677]
Available from Taxmann: www.taxmann.com/bookstore

Taxmann. Transfer Pricing Digest (Taxmann, 2019)

[ISBN: 9789388750660]
Available from Taxmann: www.taxmann.com/bookstore

30 ADIT
Additional Reading
Shome, P. “Addressing tax avoidance: cross-country
experience and an Indian case study” (February 2019)
Available from SSRN:
https://papers.ssrn.com/sol3/papers.cfm?abstract_
id=3337909

Online Resources
Income Tax Department of India:
www.incometaxindia.gov.in

ITAT Online (for cases): www.itatonline.org

Ministry of Finance: www.finmin.nic.in

OECD (for BEPS): www.oecd.org/ctp/beps.htm

Taxmann: www.taxmann.com

Taxsutra: www.taxsutra.com (20% discount available for

registered ADIT students)

Taxsutra Transfer Pricing portal:

www.tp.taxsutra.com (20% discount available for
registered ADIT students)

ADIT 31
MODULE 2.06 -
IRELAND OPTION
I Income Tax, Universal Social Charge (USC), Corporation Tax and Capital Gains Tax (CGT)
A Basic jurisdictional rules 15%
B The application of taxes on income and capital gains to cross-border situations 20%
C Double taxation relief
20%
D The Irish double tax treaty network
E Transfer pricing
10%
F Anti-avoidance
II Capital Acquisitions Tax (CAT)
III Stamp Duty 5%
IV Pay-Related Social Insurance (PRSI)
V Value Added Tax (VAT) and customs 15%
VI The impact of EU law 5%
VII The impact of OECD policy: anti-Base Erosion and Profit Shifting (BEPS) measures 10%

I Income Tax, Universal Social Charge (USC), Corporation Tax and Capital Gains Tax (CGT)

A Basic jurisdictional rules

1. Jurisdictional rules applying to the various categories of income and to capital gains tax 3
2. Meaning of residence and ordinary residence for individuals, corporations, and other bodies 3
3. Determination of Irish source or situs for various categories of income and property: trading in
Ireland; Irish permanent establishment 3
4. The imposition of tax on non-resident persons: Irish tax representatives of non-resident persons;
withholding at source; domicile levy 2
5. Domicile 3
6. Remittance basis 3
7. Administrative and compliance requirements 1
B The application of taxes on income and capital gains to cross-border situations
1. The taxation of foreign income and gains of Irish resident individuals and corporations 3
2. The determination and taxation of Irish source income of non-resident corporations 3
3. Entity characterisation: the characterisation of foreign entities for various purposes 3
4. Cross-border payments of dividends, interest, and royalties out of Ireland 3
5. Cross-border payments of dividends, interest and royalties into Ireland 3
6. Restriction of relief for interest paid (the distribution provisions) 3
7. Taxation of foreign exchange transactions for trading and non-trading companies and individuals 2
8. Cross-border re-organisations 3
9. Tax consequences of change of individual and corporate residence (outward and inward) 3
10. Tax issues of employees: stock options, PRSI, tax equalisation arrangements, special assignee relief,
foreign earnings deduction 2
11. Irish partnerships trading abroad; non-resident partners in Irish partnerships 1
C Double tax relief
1. The basis for double tax relief: unilateral and treaty relief 3
2. The rules for determining double tax relief: the credit code and other provisions 3
3. Practical administration of double taxation conventions (DTCs) and foreign tax credit relief 2
D The Irish double tax treaty network

32 ADIT
 1. The legal basis for negotiating and implementing DTCs in Ireland 2
2. The approach to interpreting DTCs in Ireland 3
3. An overview of the Irish treaty network (candidates are not expected to know the details of the
entire network, but are expected to know where Irish treaty practice departs regularly from the
OECD Model. Some understanding of the major Irish treaties, with the US, UK and Netherlands in
particular, is expected) 2
E Transfer pricing
1. Transfer pricing in Irish law 3
F Anti-avoidance
1. Transfers of assets abroad 2
2. Offshore funds 2
3. Capital Gains Tax 3
4. Arbitrage – Section 247 and related anti-avoidance provisions 2
5. General anti-avoidance provision (Section 811) 2
6. The implications of the OECD BEPS Project on Irish investment, both inbound and outbound 2
G Non-Irish trusts
1. The rules relating to non-Irish resident trusts, their settlors and beneficiaries 1

II Capital Acquisitions Tax (CAT)

A Basic jurisdictional rules

1. Domiciled individuals, non-domiciled individuals, deemed domicile 2
2. Situs of assets 2
B Double taxation and unilateral relief 1

III Stamp Duty

A Basic jurisdictional rules 1

IV Pay-Related Social Insurance (PRSI)

A Application of PRSI rules in cross-border situations 2

B Ireland’s network of social security agreements 1

V Value Added Tax (VAT) and customs

A The application of VAT to cross-border acquisitions, importations and supplies 2

B The application of VAT to non-Irish resident entities 2
C The post-Brexit settlement from an ROI perspective 3

VI The impact of EU law

A The implementation of the Directives relating to direct taxation: Parent-Subsidiary Directive, Mergers
Directives, Interest and Royalties Directive, Savings Income Directive 2
B The impact on Irish tax law of the jurisprudence of the CJEU 3

VII The impact of OECD policy: anti-Base Erosion and Profit Shifting (BEPS) measures

A The implementation of the OECD’s Pillar 2 rules in Ireland 2

B Anti-hybrid rules (BEPS Action 2) 1
C Controlled foreign company (CFC) rules (BEPS Action 3) 2
D Interest Limitation Rule (IRL) (BEPS Action 4) 2
E Exit tax provisions 2

ADIT 33
RECOMMENDED
READING LIST
Permitted Texts Byrne, K. et al. Taxing Financial Transactions, Finance
Act 2010 (Irish Tax Institute, 3rd edition, 2012) [ISBN:
Candidates may take a copy of the following texts only 9781842601471]
into the examination: Available from Irish Tax Institute via TaxFind:
www.taxinstitute.ie/TaxFind/Taxfind.aspx
Fennell, D. Direct Tax Acts, Finance (No. 2) Act 2023
(Irish Tax Institute, 2024) Conroy, S. Cross-border Compliance Masterclass: Ireland
Available from Irish Tax Institute: www.taxinstitute.ie and UK 2016 (Irish Tax Institute, 2016)
Available from Irish Tax Institute: www.taxinstitute.ie
Keogan, A. and Scully, E. Law of Capital Acquisitions Tax,
Stamp Duty and Local Property Tax, Finance (No. 2) Act Doherty, B. Corporate Transactions: Tax and Legal
2023 (Irish Tax Institute, 2024) Issues, Finance Act 2014 (Irish Tax Institute, 2015)
Available from Irish Tax Institute: www.taxinstitute.ie Available from Irish Tax Institute: www.taxinstitute.ie

OECD. Base Erosion and Profit Shifting Project: 2015 Haccius, C. Ireland in International Tax Planning (2nd
Final Reports. Executive Summaries (Paris: OECD, 2015) edition, 2004) [ISBN: 9789076078748]
Available from the OECD: Available from IBFD: www.ibfd.org
https://web-archive.oecd.org/2019-06-27/373991-
beps-reports-2015-executive-summaries.pdf Healy-Rae, R., Barry, F. and Buitleir, D. Who’s Afraid of
the ECJ? Implications of the European Court of Justice
OECD. Model Tax Convention on Income and on Capital Decisions on Ireland’s Corporate Tax Regime (Irish Tax
(Paris: OECD, 2017) [ISBN: 9789264287945] Institute, 2007) [ISBN: 9781842601655]
Available from the OECD: www.oecd-ilibrary.org Available from Irish Tax Institute: www.taxinstitute.ie

Reade, M. Law of Value-Added Tax, Finance (No. 2) Act Herlihy, J., Moore, P. and O’Sullivan, H. Corporation
2023 (Irish Tax Institute, 2024) Tax, Finance Act 2010 (Irish Tax Institute, 2010) [ISBN:
Available from Irish Tax Institute: www.taxinstitute.ie 9781842602201]
Available from Irish Tax Institute: www.taxinstitute.ie
Van Raad, K. Materials on International, TP and EU
Tax Law 2020-2021. Volumes A, C1 and C2 (Leiden: Maguire, T. The Taxation of Companies 2024
International Tax Centre, 2020) (Bloomsbury Professional, 2024) [ISBN:
Available from the Leiden International Tax Centre: 9781526530172]
www.itc-leiden.nl or [email protected] Available from Bloomsbury Professional:
Or available from Wildy & Sons: www.wildy.com www.bloomsburyprofessional.com

No other texts may be taken into the examination. McQuillan, P. Irish Income Tax 2015 (Bloomsbury
Professional, 2015) [ISBN: 9781780436999]
Available from Bloomsbury Professional:
Books www.bloomsburyprofessional.com

Bradley, J. PRSI, Levies and the Universal Social Charge, O’Brien, C. Double Taxation Agreements (Irish Tax
Finance Act 2012 (Irish Tax Institute, 2012) [ISBN: Institute, 2014) [ISBN: 9781842603628]
9781842602928] Available from Irish Tax Institute: www.taxinstitute.ie
Available from Irish Tax Institute: www.taxinstitute.ie
Power, T., Scully, E. and Devlin, C. The Law and Practice
Brodie, S. et al. Value Added Tax and VAT on Property, of Irish Stamp Duty, Finance Act 2013 (Irish Tax
Finance (No. 2) Act 2023 (Irish Tax Institute, 2024) Institute, 2013) [ISBN: 9781842602935]
Available from Irish Tax Institute: www.taxinstitute.ie Available from Irish Tax Institute: www.taxinstitute.ie

34 ADIT
Riordan, D. The Taxation of Capital Gains, Finance Act • Florides, J. “Offshore funds: a quick guide to
2019 (Irish Tax Institute, 2020) Finance Act 2007 changes” (May 2007)
Available from Irish Tax Institute: www.taxinstitute.ie • Gill and Porter. “CAT and double taxation: credit
where it’s due” (September 2009)
Schwarz, J. Schwarz on Tax Treaties (Kluwer
Law International, 6th edition, 2021) [ISBN: • Keogh, N. and Sexton, L. “Taxation of fund
9789403526300] investments – where are we at?” (March 2014)
Available from Wolters Kluwer: • Maguire, T. “Corporate Tax deductions for interest
https://law-store.wolterskluwer.com after Finance Act 2011” (May 2011)
(Discount available for registered ADIT students) • Maguire, T. “Tax treatment of foreign dividends and
EU law – are we there yet?” (May 2013)
Whelan, J. and Williams, A. Taxation of Gifts and
Inheritances, Finance Act 2019 (Irish Tax Institute, 2020) • Quirke, J. “Dual residents: Interpreting the
Available from Irish Tax Institute: www.taxinstitute.ie “tie-breaker” rules in a globalised world”
(September 2014)
• Raine, M. “Sections 247 and 249 TCA 1997: interest
Periodicals relief on loans” (January 2013)

Cahiers de Droit Fiscal International (Studies on • Vale, P. and Meredith, S. “Foreign tax revisited:
International Fiscal Law) (Deventer: Kluwer Law recap and update on recent changes” (June 2010)
International) • Walsh, F. and Smyth, P. “Offshore Funds: a little
Also known as Cahiers DFI. Despite its title, most done, lots more to do” (March 2009)
reports in the Cahiers are published in English. • Watson, D. “Foreign direct investment: the people
Relevant articles include: agenda” (September 2014)
• “Foreign exchange issues and international Available from Irish Tax Institute via TaxFind:
taxation” (Volume 94b, page 345) www.taxinstitute.ie/TaxFind/Taxfind.aspx
• “Is there a permanent establishment?” (Volume
95a, p.367)
• “Tax treaties and anti-avoidance” (Volume 95a,
Online Resources
p.389)
International Corporate Tax Reform and Taxing
• “Cross-border business restructuring” (Volume 96a, Innovation in Ireland (Irish Tax Institute, February 2020)
p.383) Available from Irish Tax Institue:
Available from IFA: www.taxinstitute.ie/event/international-corporate-tax-
www.ifa.nl/publications/cahiers/pages/default.aspx and-taxing-innovation-in-ireland

Irish Tax Review (Irish Tax Institute) Transfer Pricing in Ireland 2020 and Beyond (Irish Tax
Relevant articles include: Institute, November 2020)
Available from Irish Tax Institue:
• Berry, M. “Key provisions for companies – Finance
www.taxinstitute.ie/event/transfer-pricing-in-ireland-
No 2 Act 2013” (March 2014)
2020-and-beyond
• Farrell, F. and Brady, K. “EU Social Security changes:
significant changes – could they affect your
clients?” (September 2010)
• Farrell, F. “International mobile directors: the final
frontier” (March 2015)

ADIT 35
MODULE 2.07 -
MALTA OPTION
I Income Tax
A Jurisdiction to tax 5%
B Ascertainment of chargeable income 10%
C Taxation of individuals 10%
D Taxation of companies 15%
E Taxation of partnerships 5%
F Special cases 5%
G Relief from international double taxation and Malta’s double tax treaty network 10%
H Tax administration 5%
I Anti Tax Avoidance Directive (ATAD) 5%
II Income Tax on capital gains 10%
III Property Transfers Tax (PTT) 5%
IV Duty on Documents and Transfers (DDT) 5%
V Value Added Tax (VAT) 10%

I Income Tax

A Jurisdiction to tax
1. General jurisdiction rules (income arising, foreign source income, the remittance basis) 3
2. The meaning of ordinary residence for individuals 2
3. The meaning of ordinary residence for companies 3
4. The meaning of domicile for individuals 2
5. The meaning of domicile for companies 3
6. The meaning of ‘residence’ for companies and individuals and relevance of the term 2
B Ascertainment of chargeable income
1. The concept of chargeable income 2
2. Deductions of a non-capital allowances nature 2
3. Capital allowances 3
4. ‘Personal’ deductions (Article 14A-14G) 2
5. Surrendering of losses 2
6. Relevant exemptions (Including the Participation Exemption) 3
C Taxation of individuals
1. The taxation of employment income 3
2. The Fringe Benefit rules 2
3. Article 56(17), Article 56(21), Article 56(23), Article 56(25), Article 56(26), Article 56(27) 2
4. The part-time and overtime rules 2
5. Computational issues 2
D Taxation of companies
1. The meaning of the term ‘company’ 3
2. General tax treatment of companies 3
3. Tax accounting 3
4. The refundable tax credit system and the full imputation system 3
5. Deemed distributions and the investment income provisions 2
E Taxation of partnerships
1. Transparent entities for the purposes of Maltese law 2

36 ADIT
 2. The taxation of partners and partnerships, including treatment as companies 2
F Special cases
1. Shipping companies 3
2. Collective investment schemes 3
3. Non-resident entertainers 1
4. Trusts and foundations 3
5. Aviation companies 3
6. Insurance companies 2
7. Banking companies 2
8. Petroleum profits 3
9. Rental income 3
10. Notional interest deduction 3
11. Fiscal consolidation 3
G Relief from international double taxation and Malta’s double tax treaty network
1. Double taxation treaty relief 1
2. Unilateral relief and relief for underlying tax 3
3. The Flat Rate Foreign Tax Credit 3
4. Malta’s double tax treaty network 3
H Tax administration
1. Tax compliance obligations 1
2. Penalties 1
3. Objections, assessments and appeals 3
4. Taxation and human rights 3
I Anti Tax Avoidance Directive (ATAD)
1. Domestic implementation of ATAD measures, including CFC, interest limitation and anti-hybrid rules 3

II Income Tax on capital gains

1. Chargeable gains 3
2. Relevant definitions 2
3. Transfers of immovable property 2
4. Transfers of securities (including capital gains rules) 2
5. Transfer of interests in partnerships 2
6. Value-shifting 2
7. De-grouping 2
8. Exemptions 2

III Property Transfers Tax (PTT)

1. Scope of Article 5A, Income Tax Act 2

2. Special rules 2

IV Duty on Documents and Transfers (DDT)

1. Documents subject to duty 3

2. Transfers of shares 3
3. Transfers of immovable property 2

V Value Added Tax (VAT)

1. Concept of ‘Turnover Tax’ 1

2. The application of VAT to cross-border acquisitions, importations and supplies 2
3. Compliance obligations 2
4. VAT grouping 2

ADIT 37
RECOMMENDED
READING LIST
Permitted Texts Essential Reading
Candidates may take a copy of the following texts only Attard, R. An Introduction to Income Tax Theory
into the examination: (Agenda Books, 2005) [ISBN: 9789993267270]
Available from Professional Bookshops:
Laws of Malta, Cap 123, Income Tax Act www.professionalbooks.co.uk
Available from Legislation Malta:
https://legislation.mt/eli/cap/123/eng Attard, R. Principles of Maltese Income Tax Law (Malta
Institute of Management, 2019) [ISBN: 9789995715625]
Laws of Malta, Cap 364, Duty on Documents and Available from Malta Institute of Management:
Transfers Act www.maltamanagement.com
Available from Legislation Malta: Or available from Malta Online Bookshop:
https://legislation.mt/eli/cap/364/eng https://maltaonlinebookshop.com

Laws of Malta, Cap 372, Income Tax Management Act Attard, R. Principles of Maltese VAT Law (Malta Institute
Available from Legislation Malta: of Management, 2009) [ISBN: 9789995780210]
https://legislation.mt/eli/cap/372/eng Available from Malta Institute of Management:
www.maltamanagement.com
Laws of Malta, Cap 406, Value Added Tax Act
Available from Legislation Malta:
https://legislation.mt/eli/cap/406/eng

No other texts may be taken into the examination.

38 ADIT
 MODULE 2.08 -
SINGAPORE OPTION
I Income Tax
A Jurisdiction to tax 10%
B Taxation of individuals 10%
C Taxation of companies and other vehicles 15%
D Taxation implications of debt and equity 10%
E Ascertainment of chargeable income 10%
F Tax planning 10%
G Tax administration 5%
H Relief from international double taxation 15%
II Goods and Services Tax (GST) 15%

I Income Tax

A Jurisdiction to tax
1. Charge to tax: source; remittance 3
2. Deemed and exempt income 2
3. Tax residence and its implications 3
B Taxation of individuals
1. Employment income 3
2. Perquisites: stock options 2
3. Deductions and personal reliefs 1
4. Non-resident reliefs 2
C Taxation of companies and other vehicles
1. Taxation of corporate profits: trade or business 3
2. Corporate residence and tax implication 2
D Taxation implications of debt and equity
1. Deductibility of interest and other costs of debt financing 3
2. Taxation of corporate distributions 3
E Ascertainment of chargeable income
1. Deductions 3
2. Capital allowances 3
3. Loss relief 2
F Tax planning
1. Anti-avoidance 3
2. Advance rulings 1
3. Transfer pricing 2
G Tax administration
1. Assessment and compliance 1
2. Objections and appellate process 2
3. Penalties for non-compliance and violations 2
H Relief from international double taxation
1. Unilateral and bilateral reliefs 3
2. Tax credits under double tax agreements 2

ADIT 39
II Goods and Services Tax (GST)

A The charge to tax 3

B Scope of charge: supply; consideration; taxable person; in the course of furtherance
of business 3
C Value of supply and time of supply 2
D International services and taxation of the digital economy
1. Business-to-business supplies of imported sevices under the reverse charge mechanism regime 2
2. Business-to-consumer supplies made to non GST registered persons under the new overseas
vendor registration (OVR) regime 2
E Anti-avoidance 2

40 ADIT
 RECOMMENDED
READING LIST
Permitted Texts LexisNexis. Halsbury’s Laws of Singapore: Revenue
and Taxation (Income Tax). Volume 16 (Singapore:
Candidates may take a copy of the following texts only LexisNexis, 2020) [ISBN: 9789814892209]
into the examination: Available from LexisNexis: www.lexisnexis.com.sg

Goods and Services Tax Act, Cap 117A, Rev Ed 2005 with
all subsequent amendments Additional Reading
Available from the Singapore Attorney-General’s
Chambers: https://sso.agc.gov.sg CCH. Tax Issues: Articles and Case Notes (Singapore:
CCH Asia Pte Ltd, 2001) [ISBN: 9789810442125]
Income Tax Act, Cap 134, Rev Ed 2014 with all
subsequent amendments
Available from the Singapore Attorney-General’s Online Resources
Chambers: https://sso.agc.gov.sg
Also available in the following publication: Singapore IRAS: www.iras.gov.sg
Wolters Kluwer. Singapore Income Tax Act (Cap
134) (Wolters Kluwer, 13th edition, 2020) [ISBN: Singapore Law Watch: www.singaporelawwatch.sg
9789814838078]
Available from Wolters Kluwer: Singapore Ministry of Finance/Taxation:
https://shop.wolterskluwer.com.sg www.mof.gov.sg

Wolters Kluwer. Singapore Master Tax Guide Singapore statutes and judicial authorities:
2024-2025 (CCH Singapore, 43rd edition, 2024) [ISBN: www.lawnet.com.sg and https://sso.agc.gov.sg
9789814838832]
Available from Wolters Kluwer:
https://shop.wolterskluwer.com.sg
Or available from Professional Bookshop:
www.pbookshop.com

No other texts may be taken into the examination.

Textbooks
How, K. S. et al. Goods and Services Tax: Law and
Practice (Singapore: LexisNexis, 2nd edition, 2015)
[ISBN: 9789814608398]
Available from Professional Bookshop:
www.pbookshop.com

Hin, P., Koh, D. and Yan, T. The Law and Practice of

Singapore Income Tax (Singapore: LexisNexis, 3rd
edition, 2021) [ISBN: 9789814892414]
Available from LexisNexis: www.lexisnexis.com.sg

ADIT 41
MODULE 2.09 -
UNITED KINGDOM OPTION
I Income Tax, Corporation Tax and Capital Gains Tax
A Basic jurisdictional rules 10%
B The application of corporation tax to cross-border situations 25%
C The UK double tax treaty network (including double tax relief) 15%
D Transfer pricing (to include thin capitalisation) 15%
E Anti-avoidance 20%
II Inheritance Tax
III Stamp Taxes
IV National Insurance Contributions (NICs) 15%
V Value Added Tax (VAT) and customs duties

I Income Tax, Corporation Tax and Capital Gains Tax

A Basic jurisdictional rules

1. Jurisdictional rules applying to the various categories of income and to Capital Gains Tax 3
2. Meaning of residence for individuals, corporations and other bodies 3
3. Determination of UK source or situs for various categories of income and property: trading
in the UK; UK permanent establishment 3
4. The imposition of tax on non-resident persons: UK tax representatives of non-resident
persons; withholding at source 3
5. Domicile 3
6. Remittance basis 3
7. Administrative and compliance requirements 1
B The application of Corporation Tax, etc. to cross-border situations
1. The taxation of the foreign income of UK-resident corporations 3
2. The determination and taxation of the UK-source income of non-resident corporations 3
3. Entity characterisation: the characterisation of foreign entities for various purposes 3
4. Cross-border payments of dividends, interest and royalties out of the UK 3
5. Cross-border payments of dividends, interest and royalties into the UK 3
6. Restrictions on the deductibility of interest 3
7. Forex rules 2
8. Cross-border reorganisations 3
9. Tax consequences of change of corporate residence 3
10. Tax issues of employees: stock options, NICs, tax equalisation arrangements 2
11. UK partnerships trading abroad; non-resident partners in UK partnerships 2
C The UK double tax treaty network (including double tax relief)
1. The approach to interpreting the application of the OECD Model Tax Convention in the UK 3
2. An overview of the UK treaty network (candidates are not expected to know the details of specific
treaties, but are expected to know where UK treaty practice departs regularly from the OECD Model) 2
3. Double tax relief
i. The basis for double tax relief: unilateral and treaty relief 2
ii. The rules for determining double tax relief: the credit code 3
iii. Practical administration of DTCs and foreign tax credit relief 2
D Transfer pricing (to include thin capitalisation)
1. The legal basis for transfer pricing adjustments in the UK 3
2. The UK approach to transfer pricing 3

42 ADIT
 3. Other transfer pricing provisions 2
4. Thin capitalisation provisions 3
5. The UK approach to thin capitalisation 3
E Anti-avoidance
1. Transfers of assets abroad 2
2. Controlled Foreign Companies (CFCs) 3
3. Offshore funds 1
4. International movement of capital: reporting requirements 3
5. Treaty abuse 2
6. Capital Gains Tax 3
7. Hybrid mismatch rules 3
8. Corporate Interest Restriction (CIR) 3
9. Diverted Profits Tax (DPT) 3
10. Unallowable purpose rule 3
11. General Anti-Abuse Rule (GAAR) 2
12. Profit fragmentation rules 2
13. Digital Services Tax (DST) 3
14. The OECD’s Global Anti-Base Erosion (GloBE) rules 1
15. UK implementation of GloBE: Multinational Top-up Tax (MTT) and Domestic Top-up Tax (DTT) 2

II Inheritance Tax

A Basic jurisdictional rules

1. Domiciled individuals, non-domiciled individuals, deemed domicile 2
2. Situs of assets 2
B Measures for relieving double taxation 1

III Stamp Duty, Stamp Duty Reserve Tax, Stamp Duty Land Tax

A Basic jurisdictional rules 2

B Extension of stamp duty reliefs to cross-border situations 2

IV National Insurance Contributions (NICs)

A Application of NIC rules in cross-border situations 2

B The UK’s network of social security agreements 1

V Value Added Tax (VAT) and customs duties

A The application of VAT to cross-border acquisitions, importations and supplies 2

B The application of VAT to non-UK resident entities 2
C The liability to and collection of customs duties in the UK and available reliefs 1
D The post-Brexit settlement, including the new UK VAT rules 3

ADIT 43
RECOMMENDED
READING LIST
For exams taking place in 2025, the Finance (No. 2) Van Raad, K. Materials on International, TP and EU Tax
Act 2024, introduced on 12 March 2024, is considered Law 2020-2021. Volume A (Leiden: International Tax
examinable. Any subsequent Finance Act is not Centre, 2020) [ISBN: 9789082585452]
considered examinable. Available from the Leiden International Tax Centre:
www.itc-leiden.nl or [email protected]
Nonetheless, all ADIT exam candidates are expected to Or available from Wildy & Sons: www.wildy.com
maintain a general understanding of recent, significant
legislative changes relevant to each exam subject. No other texts may be taken into the examination.

What is essential is a thorough understanding of the

relevant parts of the UK tax legislation and cases, to Tax Legislation
which candidates should maintain direct access.
CCH. British International Tax Agreements (CCH,
updated weekly)
Permitted Texts Online version available from CCH: www.cch.co.uk

Candidates may take a copy of the following texts only Croner-i Green VAT Legislation
into the examination: Available from Croner-i:
https://library.croneri.co.uk/green
Cordara, R. Tolley’s Orange Tax Handbook 2024-2025
(LexisNexis, 2024) [ISBN: 9781474327343] Croner-i Red Tax Legislation
Available from LexisNexis: www.lexisnexis.co.uk Available from Croner-i:
(Discount available for registered ADIT students at https://library.croneri.co.uk/red
www.tolley.co.uk/purchase?id=2&pc=ADIT_ET&step=2)
The Stationary Office Ltd. Finance Act 2024 (TSO, 2021)
OECD. Model Tax Convention on Income and on Capital Available from legislation.gov.uk:
(Paris: OECD, 2017) [ISBN: 9789264287945] www.legislation.gov.uk/ukpga/2024/3/contents
Available from the OECD: www.oecd-ilibrary.org
The Stationary Office Ltd. Finance Act 2024 (TSO, 2021)
OECD. Transfer Pricing Guidelines for Multinational Available from legislation.gov.uk:
Enterprises and Tax Administrations (Paris: OECD, 2022) www.legislation.gov.uk/ukpga/2024/12/contents
[ISBN: 9789264526914]
Available from the OECD: www.oecd-ilibrary.org
Books
Redston, A. Tolley’s Yellow Tax Handbook 2024-2025
(LexisNexis, 2024) [ISBN: 9781474329934] Baker, P. Double Taxation Conventions (London: Sweet
Available from LexisNexis: www.lexisnexis.co.uk & Maxwell, looseleaf edition) [ISBN: 9780421673601]
(Discount available for registered ADIT students at Available from Sweet & Maxwell:
www.tolley.co.uk/purchase?id=2&pc=ADIT_ET&step=2) www.sweetandmaxwell.co.uk

United Nations. UN Model Double Taxation Convention Dixon, J. and Finney, M. Tolley’s International Corporate
between Developed and Developing Countries 2021 Tax Planning (LexisNexis, 5th edition, 2002)
(New York: UN, 2021) [ISBN: 9789212591841] [ISBN: 9780754513391]
Available from the United Nations: www.un.org Available from Amazon: www.amazon.co.uk

44 ADIT
Kessler, J. Taxation of Non-Residents and Foreign
Domiciliaries 2024-2025 (Key Haven Publications, 23rd
edition, 2024) [ISBN: 9781901614930]
Available from Wildy & Sons: www.wildy.com

Fairpo, A. and Salter, D. Revenue Law: Principles and

Practice (Bloomsbury Professional, 2024)
Available from Bloomsbury Professional:
www.bloomsburyprofessional.com

Oats, L. Principles of International Taxation (Bloomsbury

Professional, 9th edition, 2023) [ISBN: 9781526526175]
Contents catered to ADIT syllabus.
Available from Bloomsbury Professional:
www.bloomsburyprofessional.com

Saunders, R. International Tax Systems and Planning

Techniques 2011-2012 (London: Sweet & Maxwell,
2011) [ISBN: 9780414022683]
Available from Sweet & Maxwell:
www.sweetandmaxwell.co.uk
Or available from Wildy & Sons: www.wildy.com

Schwarz, J. Booth and Schwarz: Residence, Domicile and

UK Taxation (Bloomsbury Professional, 21st edition,
2022) [ISBN: 9781526522634]
Available from Bloomsbury Professional:
www.bloomsburyprofessional.com
Or available from Amazon: www.amazon.com

Schwarz, J. Schwarz on Tax Treaties (Kluwer Law

International, 6th edition, 2021) [ISBN:
9789403526300]
Available from Wolters Kluwer:
https://law-store.wolterskluwer.com
(Discount available for registered ADIT students)

ADIT 45
MODULE 2.10 -
UNITED STATES OPTION
I Federal Income Tax
A Basic rules and concepts 20%
B Cross-border situations: outbound 17.5%
C Cross-border situations: inbound 17.5%
D US tax treaties 10%
E Transfer pricing 10%
F Cross-border mergers and acquisitions 5%
G Foreign trusts 5%
H Information reporting and information exchange 5%
II Federal Estate Tax
A Basic rules and concepts
B Cross-border issues 10%
III Federal Gift Tax
A Basic rules and concepts
B Cross-border tax issues

I Federal Income Tax

A Basic rules and concepts

1. US taxpayers: individuals, corporations and others 3
2. Entity classification 3
3. Residency tests for individuals 3
4. Source of income and deductions 3
5. Withholding tax principles 3
6. Bilateral tax treaties 3
7. Corporate groups and consolidated returns 2
8. General anti-avoidance: substance over form 3
B Cross-border situations: outbound
1. Participation exemption, Global Intangible Low-taxed Income (GILTI) and Foreign-Derived Intangible
Income (FDII) 3
2. Foreign tax credit 3
2. Corporate transfers to foreign subsidiaries 3
3. Distributions from foreign subsidiaries 3
4. Foreign currency rules 2
5. Controlled foreign corporations 3
6. Passive foreign investment companies 3
7. Investment in foreign partnerships, funds 2
8. Foreign branches 3
C Cross-border situations: inbound
1. US trade or business of a foreign person 3
2. Effectively connected income 3
3. Branch profits tax 3

46 ADIT
 4. Related party financing of US subsidiary:
i. debt vs. equity 3
ii. earnings stripping rules 3
5. Distributions from US subsidiary 3
6. US-source payments where no US trade or business 2
7. Safe harbours for US investment activity 2
8. Anti-conduit rules 3
9. Foreign investment in US real property interests 3
D US tax treaties
1. The OECD Model and the US Model 3
2. Limitation on benefits provisions 3
3. Provisions relating to hybrid entities 2
E Transfer pricing
1. The US approach to transfer pricing 3
2. Cost-sharing for research and development 2
3. Global trading of securities 2
4. Transfer pricing of services and intangibles 2
F Cross-border mergers and acquisitions
1. Tax-free reorganisations 2
2. Outbound reorganisations 2
3. Inbound reorganisations 2
4. Carryover of tax attributes, losses 2
G Foreign trusts
1. Grantor trust rules 2
2. Non-grantor trusts and accumulated income 2
H Information reporting and information exchange
1. Foreign Account Tax Compliance Act (FATCA) 2
2. Foreign bank account reporting and entity information returns 2
3. Exchange of information and cooperation between revenue authorities 1

II Federal Estate Tax

A Basic rules and concepts

1. Domicile of individuals 2
2. Situs of assets 2
B Cross-border issues
1. Transfers to non-resident alien beneficiaries 2
2. Relief of double taxation: estate tax treaties 2

III Federal Gift Tax

A Basic rules and concepts

1. US persons and non-resident aliens 2
2. Situs of property for gift tax purposes 2
B Cross-border issues
1. Transfers to non-resident aliens 2

ADIT 47
RECOMMENDED
READING LIST
Permitted Texts Herzfeld, M. International Taxation in a Nutshell (St
Paul: West Publishing, 12th edition, 2019)
Candidates may take a copy of the following texts only [ISBN: 9781684673469]
into the examination: Available from Amazon: www.amazon.com

Any unannotated, bound hardcopy edition of the Postlewaite, P., Sheffield, J., Tokic, G. and Weiss, M.
Internal Revenue Code and Treasury Regulations may United States International Taxation (Carolina Academic
be used. Press, 5th edition, 2023) [ISBN: 9781531024734]
Available from Carolina Academic Press:
CCH. Income Tax Regulations (Chicago: CCH, latest www.cap-press.com
edition)
Available from CCH: www.cchgroup.com Postlewaite, P. and Weiss, M. Tax Cuts and Jobs Act
Impact - Guide to International Tax: Corporations (CCH,
CCH. Internal Revenue Code (Chicago: CCH, latest 2018) [ISBN: 9780808049968]
edition) Available from CCH: www.cchcpelink.com
Available from CCH: www.cchgroup.com
Streng, W. US International Estate Planning (Boston:
Both available in the following publication: Warren, Gorham & Lamont, 1996)
Peroni, R. International Income Taxation: Code and [ISBN: 9780791326015]
Regulations (Chicago: CCH, latest edition) Online version available from Thomson Reuters:
Available from CCH: www.cchgroup.com http://ria.thomson.com/Estore/detail.asp?ID=WUEPE

No other texts may be taken into the examination.

Periodicals
Essential Reading Tax Notes International (Tax Analysts) [ISSN: 10483306]
Available from LexisNexis: www.lexisnexis.co.uk
Repetti, J., Ring, D. and Shay, S. Introduction to Also available from Tax Analysts: www.taxanalysts.com
United States International Taxation (Alphen:
Kluwer Law International, 7th edition, 2021) [ISBN: Tax Notes International Special Supplement - The
9789403523859] Tax Cuts and Jobs Act: A Practitioner’s Resource (Tax
Available from Wildy & Sons: www.wildy.com Analysts)
Available from Tax Analysts (subscription required):
Schadewald, M. and Misey, R. Practical Guide to US www.taxanalysts.com
Taxation of International Transactions (Chicago: CCH,
13th edition, 2022) [ISBN 9780808058441]
Available from Amazon: www.amazon.com

Additional Reading
Christensen III, H. International Estate Planning (New
York: Matthew Bender, 2nd edition, 1999-, updated
annually) [ISBN: 9780820514826]
Available from LexisNexis: www.lexisnexis.com

48 ADIT
 MODULE 2.12 -
SOUTH AFRICA OPTION
I Jurisdiction to tax 20%
II Foreign residents operating within South Africa 30%
III South African residents operating outside South Africa 30%
IV Specific direct tax considerations 10%
V Other tax considerations 10%

I Jurisdiction to tax

A Fiscal jurisdiction and double tax treaties

1. The South African double tax treaty network 3
2. The impact of model tax conventions and the Multilateral Instrument (MLI) 3
B Tax residence (with double tax treaty relief, exemptions and adjustments)
1. Individuals 3
2. Entities 3
C Source of income
1. Active income (trade and services) 3
2. Passive income (e.g. dividends, interest, royalties and capital gains) 3
D Personal Income Tax: jurisdictional rules, case law and concepts 3
E Corporate Income Tax: jurisdictional rules, case law and concepts 3
F Blocked foreign funds 1

II Foreign residents operating within South Africa

A Domestic law and treaty analysis 3

B Active income
1. Trade and services (including employees and employers) 3
2. Special categories of foreign resident (e.g. foreign entertainers and sportspersons) 3
3. Permanent Establishments 3
C Passive income (withholding and treaties)
1. Cross-border financial flows (e.g. dividends and interest) 3
2. Cross-border royalties 3
3. Cross-border capital gains (including deemed Capital Gains Tax on emigration and rules for
immigration) 3
D Allocable deductions 3

III South African residents operating outside South Africa

A Concept of worldwide taxation

1. Individuals (with exclusion) 3
2. Companies (domestic versus foreign subsidiaries) 3
B Double tax relief
1. Domestic rebates 3
2. Treaty credits 3
C Foreign subsidiary income
1. Taxation of Controlled Foreign Companies (CFCs) vs. other foreign subsidiaries 3
2. CFC definition 3
3. Basic CFC deemed income calculation 3
4. Exclusions from deemed CFC income 3

ADIT 49
 D Foreign dividends and sales
1. Dividends from CFCs 3
2. The participation exemption 3
3. The sale of CFC and other subsidiary shares 3

IV Specific direct tax considerations

A Transfer pricing rules and anti-avoidance provisions

1. General principles (including the GAAR) 3
2. Hybrid debt and cross-border debt limitations 2
3. Limitation of interest deductions 3
4. Interest on hybrid debt instruments 2
B Non-resident trusts 3
C Special relief measures for foreign investors (e.g. headquarter companies) 3
D Foreign currency gains, losses and translation 2

V Other tax considerations

A Exchange control: basic considerations 1

B Value Added Tax: imports and exports
1. Time of supply and place of supply rules 3
2. Supply of imported services (reverse charge mechanism) 3
3. Export of goods and services from South Africa 3
4. Digital services provided by non-residents 3
C Customs duties: origin, classification and valuation
1. Harmonised system and tariff classification 1
2. Valuation and customs value of goods 1
3. Regional integration 1
D International shipping 1
E Estate Duty and Donations Tax: basic considerations 1
F Tax administration
1. Legislation regulating the activities of the South African Revenue Service
i. Powers to issue assessments 2
ii. Operation of fines and interest charges in an international context 2
iii. Opportunities to challenge assessments and other administrative decisions 2
iv. Objections, reviews and appeals 2
v. The South African general anti-avoidance rule 2
2. Withholding taxes 2
3. Advance Pricing Agreements 2

50 ADIT
 RECOMMENDED
READING LIST
Permitted Texts LexisNexis. Silke on International Tax (LexisNexis, 2024)
Available online as an add-on to the LexisNexis Tax
Candidates may take a copy of the following text only Essentials package: www.lexisnexis.com/en-za
into the examination:
Reimer, E. and Rust, A. Klaus Vogel on Double Taxation
Income Tax Act 1962 with all subsequent amendments Conventions (Kluwer Law International, 5th edition,
Available from South African Government: 2022) [ISBN: 9789403513003]
www.gov.za/documents/income-tax-act-29- Available from Wolters Kluwer:
may-1962-0000 https://law-store.wolterskluwer.com
Also available in the following publication:
LexisNexis. Income Tax Legislation 2024 (LexisNexis Relevant sections of the following text, dealing with
South Africa, 2024) [ISBN: 9781776179220] international tax law, may be useful to candidates:
Available from LexisNexis: https://store.lexisnexis.co.za Haupt, P. and Haupt, E. Notes on South African Income
Tax 2024 (Hedron, 2024) [ISBN: 9798892692830]
Value-Added Tax Act 1991 with all subsequent Available from Sherwood Books:
amendments www.sherwoodbooks.co.za
Available from South African Government:
www.gov.za/documents/value-added-tax-act-12-
may-2015-0846 Online Resources
Also available in the following publication:
LexisNexis. Value-Added Tax in South Africa: Legislation The OECD BEPS literature is extensive, but candidates
(LexisNexis South Africa, 2024) [ISBN: 060VATLEGESYS] should seek to obtain a board understanding of the
Available from LexisNexis: https://store.lexisnexis.co.za concepts and how they impact the various topics that
form part of the syllabus. An overview of the literature
OECD. Model Tax Convention on Income and on Capital can be found at:
(Paris: OECD, 2017) [ISBN: 9789264287945] www.oecd.org/en/topics/policy-issues/base-erosion-
Available from the OECD: www.oecd-ilibrary.org and-profit-shifting-beps.html

United Nations. UN Model Double Taxation Convention South African Reserve Bank. Currency and Exchanges
between Developed and Developing Countries 2021 Manual for Authorised Dealers (South African Reserve
(New York: UN, 2021) [ISBN: 9789212591841] Bank, 2024)
Available from the United Nations: www.un.org Available from SARB:
www.resbank.co.za/en/home/what-we-do/financial-
No other texts may be taken into the examination. surveillance/authorised-dealers

Case law relevant to tax in South Africa can be found via

Additional Reading the South African Revenue Service website:
www.sars.gov.za/legal-counsel/dispute-resolution-
Arnold, B. International Tax Primer (Kluwer judgments
Law International, 5th edition, 2023) [ISBN:
9789403542669] Interpretation notes regarding the application of tax
Available from Wolters Kluwer: legislation in South Africa can be found via the South
https://law-store.wolterskluwer.com African Revenue Service website:
www.sars.gov.za/legal-counsel/interpretation-rulings/
Baker, P. Double Taxation Conventions (London: Sweet interpretation-notes
& Maxwell, looseleaf edition) [ISBN: 9780421673601]
Available from Sweet & Maxwell:
www.sweetandmaxwell.co.uk

ADIT 51
MODULE 3.01 -
EU DIRECT TAX OPTION
I The legal background 10%
II The harmonisation of direct taxes 20%
III The tax jurisprudence of the ECJ relating to direct taxation 35%
IV Administrative co-operation between revenue authorities in Europe 5%
V The EU and international tax law 15%
VI The state aid rules and taxation 10%
VII The future direction of EU tax law 5%

I The legal background

A The provisions of the TEU and the TFEU which are relevant to taxation 1
B The EU institutions relevant to taxation 1
C The hierarchy of EU and national tax regimes: possible approaches and implications for taxation 1
D The Charter of Fundamental Rights and its application to taxpayers 1

II The harmonisation of direct taxes

A Important direct tax Directives (Parent-Subsidiary Directive, Merger Directive, Interest and Royalties
Directive, Anti-Tax Avoidance Directive, Double Taxation Dispute Resolution Mechanisms Directive, GloBE
Directive) 3
B Pending and proposed Directives, including the Unshell Directive and the BEFIT proposal 1

III The jurisprudence of the ECJ relevant to direct taxation

A The concept of ‘restriction’ 3

B Comparability and discrimination 3
C The concept of proportionality 3
D Derogations, justifications and the exercise of sovereignty 3
E Abuse of law 3
F The relationship with non-member countries 2

IV Administrative co-operation between revenue authorities in Europe

A The Mutual Assistance Directive for the Recovery of Taxes 1

B The Directive on Administrative Cooperation 3

V The EU and international tax law

A The EU and double taxation conventions, including the relevant jurisprudence of the Court of Justice 1
B The EU and international tax avoidance and evasion 1
C The EU and the OECD/G20’s BEPS project 2
D The EU and Good Tax Governance 2

VI The state aid rules and taxation

A The application of the State Aid rules to taxation, with particular reference to the decisions of the Court of
Justice 2

52 ADIT
VII The future directions of EU tax law

A Current developments 2
B Future policy directions 1

ADIT 53
RECOMMENDED
READING LIST
Permitted Texts EC Tax Journal (Key Haven Publications) [ISSN:
13501089]
Candidates may take a copy of the following text only Available from Key Haven Publications:
into the examination: www.khpplc.co.uk

Van Raad, K. Materials on International, TP and EU EC Tax Review (New York: Kluwer Law International)
Tax Law 2018-2019. Volumes C1 and C2 (Leiden: [ISBN: 9789880007408]
International Tax Centre, 2018) Published together with Intertax.
Available from the Leiden International Tax Centre: Available from Kluwer Law International:
www.itc-leiden.nl or [email protected] www.kluwerlawonline.com
Or available from Wildy & Sons: www.wildy.com
European Taxation (Amsterdam: IBFD) [ISSN:
Candidates with a 2016-2017 edition may instead take 00143138]. Also known as ET.
Volume C of the earlier edition into the examination. Available from IFBD: www.ibfd.org

No other texts may be taken into the examination. Highlights and Insights on European Taxation (Deventer:
Kluwer Law International) [ISSN: 10134764]
Available from Kluwer Law International:
Books http://shop.kluwer.nl

There are several good books that cover the subject Tax Notes International (Tax Analysts) [ISSN: 10483306]
matter of this module: Available from LexisNexis: www.lexisnexis.co.uk
Also available from Tax Analysts: www.taxanalysts.com
Helminen, M. EU Tax Law: Direct Taxation 2021
(Amsterdam: IBFD, 2021) [ISBN: 9789087227241]
Available from IFBD: www.ibfd.org Case Law
HJI Panayi, C. European Union Corporate Tax Law Candidates should regularly check the European Court
(Cambridge: Cambridge University Press, 2nd edition, of Justice database for new tax cases:
2021) [ISBN: 9781108839020] http://curia.europa.eu/juris/recherche.jsf?language=en
Available from Cambridge University Press:
www.cambridge.org/gb/academic The following list of cases from the database will be of
interest to candidates:
O’Shea, T. Understanding EU Tax 2020 (London: Avoir https://ec.europa.eu/taxation_customs/sites/taxation/
Fiscal, 2020) [ISBN: 9780955916465] files/20191212_court_cases_direct_taxation_en.pdf
Available from Amazon: www.amazon.com
European Commission Taxation and Customs Union:
Terra, B. and Wattel, P. European Tax Law. Volume 1 http://ec.europa.eu/taxation_customs/index_en.htm
(Kluwer, 7th edition, 2018) [ISBN: 9789013133592].
Available from Amazon: www.amazon.com

Additional Reading
Periodicals
Treaty on the Functioning of the European Union
Bulletin of the International Bureau of Fiscal Available from EUR-Lex:
Documentation (Amsterdam: IBFD) [ISSN: 00074624] https://eur-lex.europa.eu/legal-content/EN/
Available from IBFD: www.ibfd.org TXT/?uri=celex%3A12012E%2FTXT

54 ADIT
 MODULE 3.02 -
EU VAT OPTION
I Fundamental concepts 15%
II The scope of EU VAT 10%
III Place of taxable transactions 20%
IV The charge to VAT: time of supply, valuation and rates 15%
V Exemptions 10%
VI The right to deduct input tax 15%
VII Administration of VAT 15%

I Fundamental concepts

A Sources of law
1. Treaty on the Functioning of the European Union (articles relating to VAT and indirect taxes) 1
2. Development of VAT law from First Directive to 2006 1
3. Principal VAT Directive 2006/112 as amended 3
4. Implementing Regulation 282/2011/EU as amended 3
5. Other Directives relevant to VAT 1
6. Other Regulations relevant to VAT, e.g. Regulation 904/2010/EU relating to Administrative
Cooperation 1
7. The role of Commission and Council in relation to VAT 1
B EU law principles
1. Fundamental freedoms 1
2. Fiscal neutrality, equal treatment 3
3. Equivalence, effectiveness 3
4. Legal certainty, legitimate expectations 3
5. Proportionality, fundamental human rights 3
6. Abuse of rights, abusive practices 3
7. Acquis communautaire (body of statute and case law of the EU) 1
8. Direct effect of Directives 3
9. Conforming construction of national law 3
C Judicial remedies
1. Role of the Court of Justice of the European Union in relation to VAT 3
2. Infringement proceedings against member states 2
3. Referrals under Article 267, TFEU 2
4. Claims for damages 1
5. Methods of interpretation: purposive construction 2
6. Acte clair (Cilfit) and Acte éclairé (Da Costa) 1

II The scope of EU VAT

A Chargeable events
1. Supply, importation and intra-Community acquisition 3
2. Origin and destination system 1
3. Relevance of legality of transactions or fraudulent intent 2
B Territorial scope
1. VAT territory, customs territory, special territories 1

ADIT 55
 C Taxable person
1. Economic activity 3
2. Passive or private activities 2
3. Public authorities 1
4. Occasional transactions 1
5. VAT grouping (single taxable person) 2
D Taxable transaction
1. “Supply of goods” and “supply of services” 3
2. Supply for consideration 3
3. Classification of supplies as goods or services 3
4. Compound/single and multiple/mixed supplies 3
5. Deemed supplies, including intra-Community transfers 3
6. Deemed non-supplies (transfer of going concern) 3
7. Self-supplies 1
8. Acting as an agent 2

III Place of taxable transactions

A Place of supply of goods: general rules and exceptions 3

B Place of intra-Community acquisitions 3
C Place of importations 3
D Place of supply of services: business to business: general rule and exceptions 3
E Place of supply of services: business to consumer: general rule and exceptions 3
F Place of establishment and ‘other fixed establishment’ 3

IV The charge to VAT

A Chargeable event
1. Timing of charge on supplies 3
2. Alternative rules: continuous supplies, link to payment 2
3. Timing of intra-Community acquisitions 2
4. Timing of importations 2
5. Timing of charge on intra-Community supplies of services 2
B Taxable amount
1. Valuation rules: consideration 3
2. Specific items to be included or excluded from taxable amount 2
3. Barter transactions 2
4. Use of open market value: anti-avoidance provisions 2
5. Valuation of intra-Community acquisitions 3
6. Valuation of importations 3
7. Adjustment for non-receipt 3
C VAT rates
1. Structure and level of rates 2
2. Lower rates 2
3. Transitional provisions for rates retained by member states 1

V Exemptions

1. General principles of exemption: strict construction, mandatory where applicable, conditions and
scope for member states to vary rules 3
2. Exemptions within the territory: in the public interest 3

56 ADIT
 3. Exemptions within the territory: other exemptions 3
4. Option to tax certain exempt transactions 2
5. Exemptions for despatches of goods within the EU 3
6. Exemptions for intra-Community acquisitions of goods 2
7. Triangular transactions 3
8. Exemptions for exports of goods 3
9. Exemptions on importation 2
10. Other exemptions related to international trade 1

VI The right to deduct input tax

1. The basic right to deduct 3

2. Partial exemption: standard and ‘special’ or alternative methods 3
3. Irrecoverable input tax 2
4. Transitional provisions retaining ‘blocking’ of input tax 1
5. Adjustment of recovery: change of circumstances 3
6. Adjustment of recovery: capital goods 3
7. Exercise of the right to deduct, including requirements for evidence 2

VII Administration of VAT

A Obligations on taxable persons

1. Identification and registration 1
2. Invoicing, accounting, returns and recapitulative statements 1
3. Special schemes for small enterprises 1
4. Margin schemes for tour operators, second hand goods 1
5. The One Stop Shop (OSS) for taxation of services 2
6. Other special schemes 1
B Derogations
1. Transitional derogations allowed until definitive arrangements agreed 1
2. General scheme of derogations subject to authorisations 1
C Miscellaneous VAT provisions
1. Role of the VAT Committee and VAT Expert Group (VEG) 1
2. Prohibition of other turnover taxes 1
3. Transitional arrangements regarding intra-Community trade 1
4. Proposals for a definitive VAT regime 1
D Cross-Border VAT claims: claimant established in the EU
1. Rules and procedures of Directive 2008/9/EC 1
E Cross-Border VAT claims: claimant established outside the EU
1. Rules and procedures of Directive 86/560/EEC (The 13th VAT Directive) 1
F Trading of goods
1. Community statistics relating to the trading of goods (Regulation 638/2004/EC) 1
2. The One-Stop-Shop (OSS) and Import One-Stop-Shop (IOSS) 2

ADIT 57
RECOMMENDED
READING LIST
Permitted Texts European Parliament & Council Regulation 638/2004/EC
Available from EUR-Lex:
Candidates may take a copy of the following texts only http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?u
into the examination: ri=CELEX:32004R0638&from=EN

Annacondia, F. EU VAT Compass 2024-2025 (IBFD, 2024) The materials listed above are also included in the
[ISBN: 9789087228910] following permitted book:
Available from IBFD: www.ibfd.org Cordara, R. Tolley’s Orange Tax Handbook 2024-2025.
Part 1 (LexisNexis, 2024) [ISBN: 9781474327343]
Cordara, R. Tolley’s Orange Tax Handbook 2024-2025
(LexisNexis, 2024) [ISBN: 9781474327343] Lang, M. et al. ECJ - Recent Developments in Value
Available from LexisNexis: www.lexisnexis.co.uk Added Tax: the Evolution of European VAT Jurisprudence
(Discount available for registered ADIT students at and its Role in the EU Common VAT System (Linde
www.tolley.co.uk/purchase?id=2&pc=ADIT_ET&step=2) Verlag, 2014) [ISBN: 9783707327533]
Available from Booklooker: www.booklooker.de
Terra, B. and Kajus, J. A Guide to the European VAT
Directives 2024 (IBFD, 2024) [ISBN: 9789087228729]
Available from IBFD: www.ibfd.org Additional Reading
No other texts may be taken into the examination. Accountancy Europe. Modernising VAT: EU Policy
Developments (Accountancy Europe, 2019) [ISBN:
9789041122421]
Essential Reading Available from Accountancy Europe:
www.accountancyeurope.eu/publications/
Council Directive 2006/112/EC: the Principal VAT modernising-vat
Directive
Available from EUR-Lex:
https://eur-lex.europa.eu/legal-content/en/ALL/?uri=C Online Resources
ELEX%3A02006L0112-20201212
EU law, including case law, can be found at EUR-Lex:
Council Directive 86/560/EEC: the 13th VAT Directive http://eur-lex.europa.eu/browse/summaries.html
Available from EUR-Lex:
http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?u Croner-i Green VAT Legislation
ri=CELEX:31986L0560&from=EN Available from Croner-i:
https://library.croneri.co.uk/green
Council Directive 2008/9/EC: Electronic System of VAT
Refunds
Available from EUR-Lex:
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri
=OJ:L:2008:044:0023:0028:EN:PDF

Council Implementing Regulation 282/2011/EU

Available from EUR-Lex:
http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?u
ri=OJ:L:2011:077:FULL&from=EN

58 ADIT
 MODULE 3.03 -
TRANSFER PRICING OPTION
I Fundamental sources 15%
II The arm’s length principle (ALP) 5%
III Functional analysis 10%
IV Transfer pricing methods 10%
V Comparability 10%
VI Specific transactions 15%
VII Permanent establishments (PEs) 10%
VIII Compliance issues 5%
IX Avoiding Double Taxation and dispute resolution 10%
X Other issues 10%

I Fundamental sources

A Tax treaties, based on the OECD Model Tax Convention (OECD MTC) and UN Model Double Taxation
Convention (UN MDTC), specifically Article 9 and “special relationship” in Articles 10-12 3
B OECD Transfer Pricing Guidelines 3
C OECD BEPS 2015 Final Reports (Actions 8-10): Aligning transfer pricing outcomes with value creation 2
D UN Practical Manual on Transfer Pricing for Developing Countries 2021 2
E Transfer pricing litigation cases (refer to the reading list) 3
F EUJTPF Codes of Conduct guidelines and reports 2

II The arm’s length principle (ALP)

A Interpretation of the arm’s length principle and current dialogue 3

B Associated enterprises 3
C Global Formulary Apportionment 1
D Recognition of the actual transactions undertaken 2
E Losses and the effect of government policy 2

III Functional analysis

A The goal of functional analysis 1

B Analysis of functions, assets and risks (FAR) 3
C Relating functional analysis to selection of transfer pricing method 3
D Entity characterisation (e.g. characterisation as “entrepreneur”, stripped risk manufacturer,
commissionaire, etc.) 2
E The practical approach to undertaking functional analysis 3

IV Transfer pricing methods

A Description of methods 2
B Selection and application of the method(s) (including by reference to FAR analysis, entity
characterisation and availability of comparables); the party to be tested 3

ADIT 59
V Comparability

A The significance of comparability and factors determining comparability 3

B Performing a comparability analysis 3
C Dealing with the lack of comparable data 2
D Sources of information: internal/external comparables; “secret comparables”, foreign comparables 2
E Timing and compliance issues in comparability 2

VI Specific transactions

A Intra-group services
1. Different types of intra-group services 3
2. Transfer pricing methods 3
3. Direct/indirect charging and allocation keys 3
4. International guidelines on reviewing services 2
B Intra-group financial transactions
1. Intragroup loans, credit guarantee fees, factoring or receivables, cash pooling, and other forms
of financing and credit risk transfer arrangements 3
2. Loan pricing including creditworthiness, interest rates and credit margins 2
3. Thin capitalisation rules and the nexus with transfer pricing 3
4. Debt pricing and/or debt amounts that result in ongoing losses or low levels of profitability 2
C Intangible property
1. The life cycle of intangibles (development, exploitation, exit strategy) 1
2. Different types of intangibles 2
3. Models to structure the development of intangibles (e.g. contract research and development vs.
cost contribution/cost sharing arrangements) 3
4. Models for exploiting intangibles: for example principal structure vs. licensing out 3
5. Valuation of intangible assets 3
6. Current developments on transfer pricing aspects of intangibles 2
D Business restructurings
1. The nature of business restructuring 1
2. Guidance on transfer pricing aspects of business restructurings including Chapter IX of the OECD
TPG) 3
E Cost contribution arrangements (CCAs)
1. Concept of a CCA including entry, withdrawal or termination 3
2. Applying the ALP in a CCA 3
3. Tax consequences if a CCA is not arm’s length 1
4. Structuring and documenting a CCA 2

VII Permanent establishments (PEs)

A Article 5: Permanent establishments (OECD MTC and UN MDTC) 2

B Article 7: Business profits (OECD MTC and UN MDTC) 2
C Understanding the importance of PEs when dealing with transfer pricing 3

VIII Compliance issues

A Documentation 3
1. OECD BEPS 2015 Final Reports (Action 13) 3
2. Country by country reporting, master and local file documentation formats 3
B Examination practices, burden of proof and penalties 2
C Risk assessment and risk management 3
D Audits 1

60 ADIT
IX Avoiding Double Taxation and dispute resolution

A Adjustments 3
B Mutual agreement procedure, including OECD BEPS 2015 Final Reports (Action 14) 3
C Arbitration: Article 25(5) 2
D EU Arbitration Convention 1
E Advance pricing agreements (APAs) 3

X Other issues

A OECD/G20 Base Erosion and Profit Shifting (BEPS) Project 3

B Interaction between customs valuation and transfer pricing 2
C Safe harbours and tax incentives 2
D E-commerce and transfer pricing 2
E Worldwide recent developments in transfer pricing 2

ADIT 61
RECOMMENDED
READING LIST
Permitted Texts United Nations. UN Practical Manual on Transfer Pricing
for Developing Countries 2021 (New York: UN, 2021)
Candidates may take a copy of the following texts only [ISBN: 9789212591858]
into the examination: Available from the United Nations: www.un.org

OECD. Base Erosion and Profit Shifting Project: 2015 Van Raad, K. Materials on International, TP and EU Tax
Final Reports. Executive Summaries (Paris: OECD, 2015) Law 2020-2021. Volume A (Leiden: International Tax
Available from the OECD: Centre, 2020) [ISBN: 9789082585452]
https://web-archive.oecd.org/2019-06-27/373991- Available from the Leiden International Tax Centre:
beps-reports-2015-executive-summaries.pdf www.itc-leiden.nl or [email protected]
Or available from Wildy & Sons: www.wildy.com
OECD. Model Tax Convention on Income and on Capital
(Paris: OECD, 2017) [ISBN: 9789264287945] and No other texts may be taken into the examination.
accompanying Commentary: Article 5, Article 7, Article
9, and “special relationship” in Articles 10-12
Available from the OECD: www.oecd-ilibrary.org Additional Reading
OECD. OECD/G20 Base Erosion and Profit Shifting Andrus, J.L. and Collier, R. Transfer Pricing and the Arm’s
Project: 2015 Final Reports. Actions 8-10 (Paris: OECD, Length Principle After BEPS (Oxford University Press,
2015) [ISBN: 9789264241237] 2017) [ISBN: 9780198802914]
Available from the OECD: Available from Oxford University Press: global.oup.com
www.oecd.org/en/publications.html
Donegan, R. and Henshall, J. Global Transfer Pricing:
OECD. OECD/G20 Base Erosion and Profit Shifting Principles and Practice (Bloomsbury Professional, 5th
Project: 2015 Final Reports. Action 13 (Paris: OECD, edition, 2023) [ISBN: 9781526525024]
2015) [ISBN: 9789264241466] Available from Bloomsbury Professional:
Available from the OECD: www.bloomsburyprofessional.com
www.oecd.org/en/publications.html
EY. EY Worldwide Transfer Pricing Reference Guide
OECD. Report on the Attribution of Profits to Permanent 2022-2023 (EY, 2024)
Establishments (Paris: OECD, 2010) Available from EY:
Available from the OECD: www.ey.com/en_gl/tax-guides/worldwide-transfer-
https://web-archive.oecd.org/2012-06-14/104309- pricing-reference-guide
45689524.pdf
Konrad, K. A. and Schön, W. Fundamentals of
OECD. Transfer Pricing Guidelines for Multinational International Transfer Pricing in Law and Economics
Enterprises and Tax Administrations (Paris: OECD, 2022) (Springer, 2nd edition, 2014) [ISBN: 9783642434280]
[ISBN: 9789264526914] Available from Blackwells:
Available from the OECD: www.oecd-ilibrary.org https://blackwells.co.uk/bookshop

United Nations. UN Model Double Taxation Convention Lang, M. et al. Fundamentals of Transfer Pricing: A
between Developed and Developing Countries 2021 Practical Guide (Kluwer Law International, 2nd edition,
(New York: UN, 2021) [ISBN: 9789212591841] 2019) [ISBN: 9789041189943]
Available from the United Nations: www.un.org Available from Wolters Kluwer:
https://law-store.wolterskluwer.com

62 ADIT
Monsenego, J. Introduction to Transfer Pricing (Wolters Case Law
Kluwer, 2nd edition, 2022) [ISBN: 9789403514833]
Available from Wolters Kluwer: The following court decisions are of interest:
https://law-store.wolterskluwer.com • Apple Sales International and Apple Operations
Europe v Commission [T-892/16] and Ireland v
Van Raad, K. Materials on International, TP and EU Tax Commission [T-778/16]
Law 2020-2021. Volume B (Leiden: International Tax • Cameco Corporation [2020 FCA 112]
Centre, 2020) • Chevron Australia Holdings Pty Ltd [2017 FCAFC 62]
Available from the Leiden International Tax Centre:
• DSG [2009 UKFTT 31 (TC)]
www.itc-leiden.nl or [email protected]
Or available from Wildy & Sons: www.wildy.com • GE Capital [2010 FCA 344]
• GSK Canada [2010 FCA 201]
The following texts may also be considered useful • Glencore [2020 FCAFC 187]
for candidates in understanding the post-BEPS
• LG Electronics India Pvt Ltd v ACIT [2013 29
environment. However, familiarity with these texts is
taxmann.com 300]
not required to sit and pass the exam:
• Roche Products Property [2008 AATA 261]
Lang, M. and Petruzzi, R. Transfer Pricing Developments • SNF (Australia) Pty Ltd [Single Federal Court
Around the World 2022 (Kluwer Law International, Decision, 2010 FCA 635]
2022) [ISBN: 9789403546230] • SNF (Australia) Pty Ltd [Full Federal Court Decision,
Available from Wolters Kluwer: 2011 FCAFC 74]
https://law-store.wolterskluwer.com • Unilever Kenya [Income Tax Appeal 753 of 2003]

Lang, M., Petruzzi, R. and Storck, A. Transfer Pricing in

a Post-BEPS World (Kluwer Law International, 2016)
[ISBN: 9789041167101]
Online Resources
Available from Wolters Kluwer: EU Joint Transfer Pricing Forum:
https://law-store.wolterskluwer.com https://ec.europa.eu/taxation_customs/business/
company-tax/transfer-pricing-eu-context/joint-transfer-
Lolliri, F. Transfer Pricing Risks Post-BEPS: a Practical pricing-forum_en
Guide (LexisNexis, 2017) [ISBN: 9780754554639]
Available from LexisNexis: Candidates should read the following sections:
https://store.lexisnexis.co.uk (Discount available for
registered ADIT students) 1. Background, achievements
2. Code of conduct on transfer pricing documentation
OECD. Additional Guidance on the Attribution of Profits for associated enterprises in the EU
to a Permanent Establishment (Paris: OECD, 2018) 3. Guidelines for advance pricing agreements (APAs) in
Available from the OECD: www.oecd-ilibrary.org the EU
4. Guidelines on low-value-adding intra-group services
OECD. Guidance on the Implementation of Country-by- 5. Potential approaches to non-EU triangular cases
Country Reporting (Paris: OECD, 2018) 6. Report on small and medium enterprises (SMEs)
Available from the OECD: www.oecd-ilibrary.org and transfer pricing
7. Report on cost contribution arrangements on
OECD. Guidance on the Appropriate Use of Information services not creating intangible property
Contained in CbC Reports (Paris: OECD, 2018) 8. Report on secondary adjustments
Available from the OECD: www.oecd-ilibrary.org 9. Report on transfer pricing risk management
10. Report on compensating adjustments

ADIT 63
11. Report on the application of the profit split method
within the EU

OECD BEPS page:

www.oecd.org/ctp/beps.htm

OECD Transfer Pricing page:

www.oecd.org/ctp/tp
Candidates should read documents relevant to the
syllabus within the “What’s New” and “Transfer Pricing
Projects” sections.

Pacific Association of Tax Administrators (PATA) Transfer

Pricing Documentation Package:
www.ustransferpricing.com/PATA_
transferpricingpackage.pdf

United Nations: www.un.org/esa/ffd

Candidates should read documents relevant to the
syllabus within the “Transfer Pricing” and “BEPS”
thematic areas.

64 ADIT
 MODULE 3.04 -
ENERGY RESOURCES OPTION
I Fundamental tax issues 5%
II Tax and fiscal regimes 15%
III Country tax examples 5%
IV Permanent establishments 10%
V Technical services 10%
VI Mergers and acquisitions 5%
VII Intellectual Property (IP) 5%
VIII Leasing 5%
IX Financing 5%
X Profit repatriation 5%
XI Trading 2.5%
XII Transfer pricing 5%
XIII Governance of natural energy resources 5%
XIV Arbitration of disputes 2.5%
XV Tax policy considerations of climate change 15%

I Fundamental tax issues

A International investment 1
B International income flows 1
C Tax treaties 2
D Transfer pricing 2

II Tax and fiscal regimes

A Licence and concession regimes 3

B Production sharing contracts (PSCs) 3
C Service contracts 3
D Royalties 3
E Indirect taxes, including VAT and qualifying for exemptions 2
F Deferred tax accounting issues 1

III Country tax examples

A Angola 1
B Brazil 1
C Indonesia 1
D Iraq, technical service contracts (TSCs), and development and production service contracts (DPSCs) 1
E Nigeria 1
F Norway 1
G United Kingdom 1
H United States (federal taxation) 1
I United States (state taxation generally, includes focus on Texas and Alaska) 1

ADIT 65
IV Permanent establishments

A Permanent establishments and tax treaties 2

B Operating companies 2
C Service companies 2

V Technical services

A Technical services background 2

B Structuring technical service operations 2
C Interaction with PSCs and joint operating agreements 3
D Withholding tax and related planning 3

VI Mergers and acquisitions

A Acquire target assets or target company shares 2

B Interest deductions and debt push down 2
C Depreciation and asset step up 2
D Carry-forward tax losses 2
E Sale and purchase agreements 3
F Cost carry deals 3
G Tax due diligence 3

VII Intellectual Property (IP)

A IP in natural energy resources 2

B Royalties 2
C Transfers of IP 2
D Group IP companies 2

VIII Leasing

A Operating leasing 2
B Leasing and tax treaties 1
C Sale and leaseback 1
D Group leasing companies 1

IX Financing

A Group treasury companies and in-house banking 2

B Thin capitalisation 1
C Controlled foreign corporations 1
D Hybrid entities and hybrid securities 1

X Profit repatriation

A Subsidiaries and dividends 2

B Subsidiaries and deductible expenses 1
C Branches and profit repatriation 1
D Branches and allocation of related company expenses 2

66 ADIT
XI Trading

A Group trading company 2

B Planning structures 1
C Derivatives, including options, forwards and swaps 1

XII Transfer pricing

A Transfer pricing methods and advance pricing agreements (APAs) 2

B Commodity pricing 2
C Exploration services and drilling 1
D Financial and environmental guarantees 2
E Transfer pricing and procurement 2
F Transfer pricing and trading 3
G Intellectual property 2
H Services and administration 2
I Group financing 2

XIII Governance of natural energy resources

A Definition and characteristics of the types of natural energy resource governance

1. Proprietorial regime 1
2. Non-proprietorial regime 1
B The link between international agreements and different types of natural resource governance 2
C The effects of using certain types of governance on government tax receipts 2

XIV Arbitration of disputes

A The use of arbitration by natural energy resource companies 2

B Bilateral investment treaties and the Energy Charter Treaty 2
C Arbitration clauses in contracts 1

XV Tax policy considerations of climate change

A The importance of carbon pricing and carbon capture, use and storage (CCUS) 3
B Design and implementation of carbon taxation 3
C Design and implementation of emissions trading schemes (ETS) 3
D Tax aspects of CCUS 2

ADIT 67
RECOMMENDED
READING LIST
Permitted Texts Calder, J. Administering Fiscal Regimes for Extractive
Industries: A Handbook (IMF, 2014) [ISBN:
Candidates may take a copy of the following texts only 9781475575170]
into the examination: Available from the IMF eLibrary: www.elibrary.imf.org

Abdo, H. Taxation of UK Oil and Gas Production: a Daniel, P., Keen, M., Świstak, A. and Thuronyi, V.
Non-Proprietorial Regime? (Oxford: Lambert Academic International Taxation and the Extractive Industries
Publishing, 2010) [ISBN: 9783843375917] (Routledge, 2019) [ISBN: 9780367875077]
Available from Amazon: www.amazon.com Available from Routledge: www.routledge.com

OECD. Base Erosion and Profit Shifting Project: 2015 Daniel, P., Keen, M. and McPherson, C. The Taxation
Final Reports. Executive Summaries (Paris: OECD, 2015) of Petroleum and Minerals (Routledge, 2010) [ISBN:
Available from the OECD: 9780415781381]
https://web-archive.oecd.org/2019-06-27/373991- Available from Routledge: www.routledge.com
beps-reports-2015-executive-summaries.pdf
European Union. EU Emissions Trading System (EU ETS)
OECD. Model Tax Convention on Income and on Capital and related publications on the website
(Paris: OECD, 2017) [ISBN: 9789264287945] and Available from the EU:
accompanying Commentary https://climate.ec.europa.eu/eu-action/eu-emissions-
Available from the OECD: www.oecd-ilibrary.org trading-system-eu-ets_en

OECD. Transfer Pricing Guidelines for Multinational EY. 2019 Global Oil and Gas Tax Guide (London: EY,
Enterprises and Tax Administrations (Paris: OECD, 2022) 2019)
[ISBN: 9789264526914] Available from EY:
Available from the OECD: www.oecd-ilibrary.org www.ey.com/en_gl/tax-guides/global-oil-and-gas-tax-
guide-2019
Van Raad, K. Materials on International, TP and EU Tax
Law 2020-2021. Volume A (Leiden: International Tax Mommer, B. Global Oil and the Nation State (Oxford:
Centre, 2020) [ISBN: 9789082585452] Oxford University Press, 2002) [ISBN: 9780197300282]
Available from the Leiden International Tax Centre: Available from Amazon: www.amazon.com
www.itc-leiden.nl or [email protected]
Or available from Wildy & Sons: www.wildy.com Nakhle, C. Petroleum Taxation: Sharing the Oil Wealth
(London: Routledge, 2012) [ISBN: 9780415541909]
No other texts may be taken into the examination. Available from Routledge: www.routledge.com

United Nations. United Nations Handbook on Carbon

Essential Reading Taxation for Developing Countries (UN, 2021) and
related publications on the website
Abrahamson, J. Tolley’s International Taxation of Available from the UN:
Upstream Oil and Gas (LexisNexis, 3rd edition, 2021) www.un.org/development/desa/financing/
[ISBN: 9780754558118] what-we-do/ECOSOC/tax-committee/thematic-areas/
Available from LexisNexis: www.lexisnexis.co.uk environmental-taxation
(Discount available for registered ADIT students; to
access the discount, please click here.) World Bank. Carbon Pricing Dashboard (World Bank,
2021) and related publications on the website
Available from the World Bank:
https://carbonpricingdashboard.worldbank.org

68 ADIT
Other Relevant Reading EY. EY Worldwide Transfer Pricing Reference Guide
2022-2023 (EY, 2024)
Abdo, H. “Investigating the effectiveness of different Available from EY:
forms of mineral resources governance in meeting the www.ey.com/en_gl/tax-guides/worldwide-transfer-
objectives of the UK petroleum fiscal regime”, in Energy pricing-reference-guide
Policy (2014, Volume 65, p.48)
Available at ScienceDirect: EY. US GAAP vs. IFRS – The Basics: Oil and Gas (London:
www.sciencedirect.com/science/journal/03014215/65 EY, 2016)
Available from EY:
Andah, E. and Ike, C. “Nigeria - Value Added Tax and the www.ey.com.au/ul/en/accountinglink/publications-
Oil and Gas Industry in Nigeria”, in International VAT library-us-gaap-vs--ifrs--the-basics
Monitor (2017, Volume 28:1)
Available from IBFD: HMRC. Oil and Gas Companies: Tax Relief for
www.ibfd.org/IBFD-Products/Journal-Articles/ Decommissioning Expenditure (London: HMRC, 2016)
International-VAT-Monitor/collections/ivm/html/ Available from HMRC:
ivm_2017_01_ng_1.html www.gov.uk/government/publications/oil-and-
gas-companies-tax-relief-for-decommissioning-
Angola. Model Production Sharing Agreement (1969) expenditure/oil-and-gas-companies-tax-relief-for-
Available from EI Source Book: decommissioning-expenditure
www.eisourcebook.org/cms/Angolan%20
Production%20Sharing%20Agreement.pdf IMF. Fiscal Regimes for Extractive Industries: Design and
Implementation (IMF, 2012)
Blyschak, P. “Arbitrating overseas oil and gas disputes: Available from the IMF:
breaches of contract versus breaches of treaty”, in www.imf.org/external/np/pp/eng/2012/081512.pdf
Journal of International Arbitration (2010, Volume 27:6)
Available from Kluwer Law Online: Indonesian Ministry of Energy and Mineral Resources
www.kluwerlawonline.com (MEMR). Regulation No. 8 of 2017 regarding the
Gross Split for Production Sharing Contracts (MEMR
Daniel, P., Keen, M. and McPherson, C. (eds). The Regulation 8/2017)
Taxation of Petroleum and Minerals: Principles, Available from the Indonesian Petroleum Association:
Problems and Practice (Routledge, 2010) [ISBN: www.ipa.or.id/assets/images/news/20170119%20
9780415569217] ipa%20-%20permen%2008%202017%20original_
Available from Routledge: www.routledge.com eng%20final.pdf

Deloitte. Oil and Gas Taxation in the UK: Deloitte Iraq. Model Producing Oil Field Technical Service
Taxation and Investment Guides (London: Deloitte, Contract (2009)
2013), pp. 3-6 Available from Platform:
Available from Deloitte: http://platformlondon.org/documents/pftsc-23-apr-09.
www2.deloitte.com/content/dam/deloitte/global/ pdf
documents/energy-and-resources/dttl-er-uk-oilandgas-
guide.pdf Johnston, D. and Johnston, D. “Fundamental petroleum
fiscal considerations”, in Oxford Energy Comment
Dushime, A. Addressing climate change through carbon (February 2015)
taxes (World Economic Forum, 2021) Available from the Oxford Institute for Energy Studies:
Available from Word Economic Forum: www.oxfordenergy.org/wpcms/wp-content/
www.weforum.org/agenda/2021/06/addressing- uploads/2015/02/Fundamental-Petroleum-Fiscal-
climate-change-through-carbon-taxes Considerations.pdf

ADIT 69
Kobetsky, M. International Taxation of Permanent United Nations. United Nations Handbook on
Establishments: Principles and Policy (Cambridge Selected Issues for Taxation of the Extractive
University Press, 2011) [ISBN: 9780511977855] Industries by Developing Countries (UN, 2017) [ISBN:
Available from Cambridge University Press: 9789210478472]
www.cambridge.org/gb/academic Available from the UN:
www.un.org/esa/ffd/wp-content/uploads/2018/05/
Mazeel, M. Petroleum Fiscal Systems and Contracts Extractives-Handbook_2017.pdf
(Diplomica Verlag, 2010) [ISBN: 9783836688529]
Available from AbeBooks: www.abebooks.co.uk Wälde, T. “Arbitration in the oil, gas and energy
field: emerging energy charter treaty practice”, in
OECD. Multilateral Convention to Implement Tax Treaty Transnational Dispute Management (2004, Volume 1:2)
Related Measures to Prevent Base Erosion and Profit Available from Transnational Dispute Management:
Shifting (OECD, 2016) www.transnational-dispute-management.com
Available from the OECD: www.oecd-ilibrary.org
Wälde, T. “Oil and gas arbitration: some historical
OECD. OECD/G20 Base Erosion and Profit Shifting background and current significance”, in Transnational
Project: 2015 Final Reports. Action 13 (Paris: OECD, Dispute Management (2006, Volume 3:5)
2015) [ISBN: 9789264241466] Available from Transnational Dispute Management:
Available from the OECD: www.transnational-dispute-management.com
www.oecd.org/en/publications.html

Otto, M. “The Taxation of Extractive Industries: Mining”,

in Addison, T., Roe, A. et al. Extractive Industries: The
Management of Resources as a Driver of Sustainable
Development (Oxford University Press, 2018) [ISBN:
9780198817369]
Available from Oxford Academic:
https://academic.oup.com/book/27405

PwC. Financial Reporting in the Oil and Gas Industry:

International Financial Reporting Standards (London:
PwC, 2017)
Available from PwC:
www.pwc.com/gx/en/services/audit-assurance/
assets/pwc-financial-reporting-in-the-oil-and-gas-
industry-2017.pdf

Samuelsen, J. A Guide to Norwegian Petroleum Taxation

(Oslo: KPMG, 2011) [ISBN: 9788292222096]
Available from KPMG:
www.kpmglaw.no/artikkel/a-guide-to-norwegian-
petroleum-taxation

70 ADIT
 MODULE 3.05 -
BANKING OPTION
I Fundamental international tax issues 10%
II Banking regulation and tax implications of bank operating models and capital/funding allocations 20%
III Tax implications of banking activities 20%
IV Transaction taxes and withholding taxes 15%
V Special topics 20%
VI The OECD and EU context 15%

I Fundamental international tax issues

A Residence 1
B Permanent establishments 1
C Double tax relief 1
D Transfer Pricing and thin capitalisation 1
E Anti-avoidance legislation in the context of banks, financial instruments and cryptoassets 2

II Banking regulation and tax implications of bank operating models and capital/funding allocations

A Banking regulators 3
B OECD guidelines for attribution of profits to branches (with specific reference to the guidelines for
banking and financial trading business, and related bank internal derivatives) 3
C Attribution of capital to banking branches 2
D Capital instruments 2
E Tax treatment of capital instruments 2
F Calculation of capital ratios 2

III Tax implications of banking activities

A Global developments in banking taxation code of conduct and tax transparency, and UK Code of Conduct
for Banks 3
B Debt restructuring 2
C LMA documentation and tax clauses, sub-participation and risk sharing 2
D Securitisation of assets 1
E Tax representations in ISDA Master Agreement 2

IV Transaction taxes and withholding taxes

A Application of Stamp Duty and Stamp Duty Reserve Tax 2

B Withholding taxes 3
C Beneficial ownership questions at tax treaty level 2
D VAT/GST on financial services, including partial exemption 2

V Special topics

A UK bank levy 2
B Derivatives 2
C Cryptoassets 2
D Client tax reporting (FATCA, CRS, DAC2, DAC6 and DAC8 proposal) 3

ADIT 71
VI The OECD and EU context

A The OECD Base Erosion and Profit Shifting (BEPS) Project 2

B BEPS Action 4 - Limiting Base Erosion Involving Interest Deductions and Other Financial Payments 3
C OECD Pillar 1 2
D OECD Pillar 2 2
E EU ATAD I and II (and ATAD III proposal) 2

72 ADIT
 RECOMMENDED
READING LIST
Permitted Texts Essential Reading
Candidates may take a copy of the following texts only HMRC. Bank Levy Manual (HMRC, 2016)
into the examination: Available from GOV.UK:
www.gov.uk/hmrc-internal-manuals/bank-levy-manual
Council Directive 2014/107/EU: mandatory automatic
exchange of information in the field of taxation HMRC. Governance Protocol on a Bank’s Compliance
Available from the European Commission: with the Code of Practice on Taxation for Banks (HMRC,
https://eur-lex.europa.eu/legal-content/EN/ 2013)
TXT/?uri=CELEX:32014L0107 Available from GOV.UK:
https://assets.publishing.service.gov.uk/government/
GOV.UK. The Code of Practice on Taxation for Banks uploads/system/uploads/attachment_data/
(GOV.UK, December 2013) file/566837/Code_of_Practice_on_Taxation_for_Banks-
Available from GOV.UK: Governance_Protocol.pdf
www.gov.uk/government/collections/the-code-of-
practice-on-taxation-for-banks ISDA. 2002 Master Agreement (ISDA, 2002)
Available from ISDA:
HMRC. Stamp Taxes on Shares Manual (HMRC, 2016) www.isda.org/book/2002-isda-master-agreement-
Available from HMRC: english
www.gov.uk/hmrc-internal-manuals/stamp-taxes-
shares-manual ISDA. 2012 FATCA Protocol (ISDA, 2012)
Available from ISDA:
OECD. Base Erosion and Profit Shifting Project: 2015 www.isda.org/protocol/isda-2012-fatca-protocol
Final Reports. Executive Summaries (Paris: OECD, 2015)
Available from the OECD: OECD. Action Plan on Base Erosion and Profit Shifting.
https://web-archive.oecd.org/2019-06-27/373991- Actions 1, 2, 3, 4, 7 and 8-10 (Paris: OECD, 2013) [ISBN:
beps-reports-2015-executive-summaries.pdf 9789264202702]
Available from the OECD: www.oecd-ilibrary.org
OECD. Model Tax Convention on Income and on Capital
(Paris: OECD, 2017) [ISBN: 9789264287945] OECD. Addressing Tax Risks Involving Bank Losses (Paris:
Available from the OECD: www.oecd-ilibrary.org OECD, 2010) [ISBN 9789264088672]
Available from the OECD: www.oecd-ilibrary.org
OECD. Transfer Pricing Guidelines for Multinational
Enterprises and Tax Administrations (Paris: OECD, 2022) OECD. Co-operative Tax Compliance: Building Better Tax
[ISBN: 9789264526914] Control Frameworks (Paris: OECD, 2016)
Available from the OECD: www.oecd-ilibrary.org Available from the OECD:
www.oecd.org/publications/co-operative-tax-
Van Raad, K. Materials on International, TP and EU Tax compliance-9789264253384-en.htm
Law 2020-2021. Volume A (Leiden: International Tax
Centre, 2020) [ISBN: 9789082585452] OECD. Crypto-Asset Reporting Framework and
Available from the Leiden International Tax Centre: Amendments to the Common Reporting Standard (Paris:
www.itc-leiden.nl or [email protected] OECD, 2022)
Or available from Wildy & Sons: www.wildy.com Available from the OECD:
www.oecd.org/tax/exchange-of-tax-information/
No other texts may be taken into the examination. crypto-asset-reporting-framework-and-amendments-
to-the-common-reporting-standard.htm

ADIT 73
OECD. Standard for Automatic Exchange of Financial OECD. Tax Challenges Arising from the Digitalisation
Account Information in Tax Matters (Paris: OECD, 2nd of the Economy. Global Anti-Base Erosion Model Rules
edition, 2017) (Pillar Two). Inclusive Framework on BEPS (Paris: OECD,
Available from the OECD: 2021)
www.oecd.org/tax/exchange-of-tax-information/ Available from the OECD:
standard-for-automatic-exchange-of-financial- www.oecd-ilibrary.org/docserver/782bac33-en.pdf
account-information-in-tax-matters-second-edition-
9789264267992-en.htm OECD. Tax Challenges Arising from the Digitalisation of
the Economy. Commentary to the Global Anti-Base
OECD. The Conditions for Establishment of Subsidiaries Erosion Model Rules (Pillar Two). Inclusive Framework
and Branches in the Provision of Banking Services by on BEPS (Paris: OECD, 2022)
Non-Resident Institutions (Paris: OECD, 2017) Available from the OECD:
Available from the OECD: www.oecd-ilibrary.org/docserver/1e0e9cd8-en.pdf
www.oecd.org/daf/fin/financial-markets/conditions-
for-establishment-in-the-provision-of-banking-services. OECD. Transfer Pricing Guidelines for Multinational
pdf Enterprises and Tax Administrations (Paris: OECD, 2022
[ISBN: 9789264526914]
US Treasury. Foreign Account Tax Compliance Act Available from the OECD: www.oecd-ilibrary.org
(FATCA), Model Intergovernmental Agreements (US
Treasury) US IRS. Revenue Procedure 2017-15 on Qualified
Available from the US Treasury: Intermediary Agreements (US IRS, 2017)
www.treasury.gov/resource-center/tax-policy/treaties/ Available from the IRS:
Pages/FATCA.aspx www.irs.gov/pub/irs-drop/rp-17-15.pdf

Recommended Reading Textbooks

ISDA. 2015 Section 871m Protocol (ISDA, 2015) Abrahamson, J. International Taxation of Banking
Available from ISDA: (Wolters Kluwer, 2020) [ISBN: 9789403510941]
www.isda.org/protocol/isda-2015-section-871m- Available from Wolters Kluwer:
protocol https://law-store.wolterskluwer.com

OECD. Report on the Attribution of Profits to Permanent Southern, D. Taxation of Loan Relationships and
Establishments (Paris: OECD, 2010) Derivative Contracts (Bloomsbury Professional, 11th
Available from the OECD: edition, 2024) [ISBN: 9781526528667]
https://web-archive.oecd.org/2012-06-14/104309- Available from Bloomsbury Professional
45689524.pdf www.bloomsburyprofessional.com

OECD. Standard for Automatic Exchange of Financial Weidmann, O. Taxation of Derivatives and
Information in Tax Matters. Implementation Handbook Cryptoassets (Wolters Kluwer, 2nd edition, 2024) [ISBN:
(Paris: OECD, 2nd edition, 2018) 9789403523835]
Available from the OECD: Available from Wolters Kluwer:
www.oecd.org/tax/transfer-pricing/45689524.pdf https://law-store.wolterskluwer.com

74 ADIT
Articles • Swiss Federal Supreme Court, 2C_880/2018,
decision of 19 May 2020, A Plc v Swiss Tax
Southern, D. and Weidmann, O. ‘Cryptotaxation: A Administration in 23 ITLR, 864
Guide to a Brave New World’, in British Tax Review
• T Danmark and others, CJEU decision of 26
(2023, Issue 1, pp. 68-96)
February 2019 – C-116/16, ECLI:EU:C:2019:135
‘Beneficial Ownership and Derivatives: An Analysis
of the Decision of the Swiss Federal Supreme Court
Concerning Total Return Swaps’, in 44 Intertax 8 & 9 Other Relevant Reading
(2016, pp. 620-641)
Heckemeyer, J. and De Mooij, R. Taxes and Corporate
Debt: Are Banks any Different? (Washington DC, 2013)
Cases Available from the IMF:
www.imf.org/external/pubs/ft/wp/2013/wp13221.pdf
• Abbey National Treasury Services plc v R&C
Commissioners [2015] SFTD 929 IFA. ‘Withholding tax in the era of BEPS, CIVs and digital
economy’, in Cahiers De Droit (2018, Volume 103b)
• Barclays Mercantile Business Finance Ltd v.
Available from SDU:
Mawson (Inspector of Taxes) [2004] UKHL 51 www.sdu.nl/juridisch/producten-diensten/ifa/103b
• Bristol & West plc v R&C Commissioners [2016] STC
1491 IRS. FATCA FAQs (IRS, 2017)
• Canada) v The Queen, Tax Court of Canada, 2009 Available from the IRS:
www.irs.gov/businesses/corporations/frequently-
• ConocoPhillips AS v Ojeskattekontoret, 2010
asked-questions-faqs-fatca-compliance-legal
• ConocoPhillips Skandinavia AS and Norske
• Greene King plc v R7C Commissioners [2016] EWCA Miller, E. and Usher, G. Commentary on the ISDA Master
Civ 782 Agreements (Field Fisher, 2008)
Available from Field Fisher:
• Griffin (Inspector of Taxes) v Citibank Investments
www.fieldfisher.com/en/insights/commentary-on-the-
Ltd [2000] STC 1010
isda-master-agreements
• HBOS Treasury Services plc v. HMRC [2009] UKFTT
261 (TC), [2010] SFTD 134 OECD. CRS-related FAQs (Paris: OECD, 2018)
• HSBC Life (UK) Ltd v Stubbs [2002] STC (SCD) 9 Available from the OECD:
www.oecd.org/tax/automatic-exchange/common-
• Indofood v. JPMorgan Chase Bank N.A. [2006]
reporting-standard/CRS-related-FAQs.pdf
EWCA Civ 158
• IRC v Scottish Provident Institution [2002] STC 252 Sung, H. and Weidmann, O., IFA. ‘Investment funds’, in
• Morgan Grenfell Ltd v. Welwyn Hatfield District Cahiers De Droit (2019, Volume 104b)
Council [1995] 1 All ER 1, Ch. 6
Wright, S. The Handbook of International Loan
• N Luxembourg and others, CJEU decision of 26
Documentation: Global Financial Markets (Palgrave
February 2019, - C115/16, ECLI:EU:C:2019:134
Macmillan, 2nd edition, 2014) [ISBN: 9781137467584]
• Prudential plc v. HMRC [2007] UKSPC SPC00636 Available from Amazon: www.amazon.co.uk
• Prudential plc v. HMRC [2009] EWCA Civ 622
• Swiss Federal Supreme Court (Bundesgericht)
decision of 5th May 2015, 2C_364/2012 and
2C_377/2012 (Swiss Swaps Case), Re Swiss Swaps
Case I/A in 18 ITLR, 138

ADIT 75
EXTENDED ESSAY OPTION
RULES
ADIT candidates may submit a 15,000-20,000 word extended essay, instead of sitting either a Module 2 or Module
3 exam.
1. Candidates must first submit a proposal using the extended essay proposal form, available at
www.tax.org.uk/adit/extended-essay. The proposal must include:
• a working title; and
• a brief synopsis of your topic, approximately 250 words in length and outlining the scope and planned
objectives of your proposed extended essay.
2. Approval of the extended essay proposal is at the sole discretion of the ADIT Academic Board.
3. The proposal must be accompanied by a registration fee, currently £222, which will be collected only if the
proposal is approved. ADIT fees are subject to annual review and may change over time.
4. Registration is valid for three years from the date of notification of approval by the Academic Board. Subject to
the approval of the Academic Board, an extended essay proposal may be changed within the three-year period
without a further fee being charged. However, candidates are recommended to submit their extended essay
within two years of approval in order to maintain the momentum of attaining the qualification.
5. If the candidate has chosen to submit an extended essay instead of sitting a Module 2 examination, the subject
matter of the extended essay must be related to international tax from the perspective of a particular tax
jurisdiction. Extended essays dealing with matters of international or supranational tax policy are acceptable,
so long as the effects on and/or relationship with the chosen jurisdiction are included. Likewise, extended
essays which carry out comparative studies of the chosen jurisdiction with those of other jurisdictions are
acceptable.
6. If the candidate has chosen to submit an extended essay instead of sitting a Module 3 examination, the subject
matter of the extended essay must be related to some aspect of international tax as it affects a specific sector,
area of taxation or transnational grouping or supranational entity such as the World Trade Organisation or the
European Union.
7. The tax jurisdiction or subject area covered by the extended essay must differ from that of the Module 2 or
Module 3 exam selected by the candidate for the remaining option module. For example, if you plan to sit
the Module 3.03 Transfer Pricing exam, your extended essay should cover a subject area other than transfer
pricing, and if you plan to sit the Module 2.10 United States exam, your extended essay should cover a
jurisdiction other than the United States. If you plan to sit a Module 2 exam and complete a comparative study
in your extended essay, then your extended essay may include the jurisdiction addressed by your Module 2
exam but will also need to focus on at least one other jurisdiction.
8. Further guidance regarding the subject matter of the extended essay is given in the Extended Essay Guidance
Notes on the following pages. Where appropriate (e.g. in an extended essay which takes an aspect of a tax
system as its subject and which draws on the author’s practical experience), adequate consideration should
be given to the commercial and legal background to the topic so that such matters as company law, trust law,
contract law and generally accepted accounting principles are discussed where relevant.
9. The extended essay must be personal to the candidate. This means that it must contain the candidate’s
original analysis of the issues under consideration.
10. The extended essay must be fully referenced. This means that all books, articles and other sources (including
in-house technical materials) used must be cited in the text by way of footnote. Where quotations are used,
these should be clearly identified as such and properly referenced. A full bibliography should be provided.

76 ADIT
11. The extended essay should normally be between 15,000 and 20,000 words and must be submitted in English.
12. The extended essay should be presented in accordance with the instructions in the Extended Essay Guidance
Notes regarding page layout, margins and spacing. The candidate’s extended essay reference number should
be clearly marked on the outer cover, but there should be no mention of the candidate’s name or ADIT
student number either on the cover or elsewhere in the work.
13. One electronic softcopy must be submitted to the CIOT. The essay must be accompanied by a completed
Extended Essay Declaration Form, confirming that the extended essay has been completed in accordance with
the Extended Essay Rules, and that the extended essay is the candidate’s own work.
14. Extended essays will be reviewed as quickly as possible, normally within four months, but the Academic Board
reserves the right to take such time as may be needed to complete its review.
15. In cases of failure to reach the required standard, the Academic Board will provide a short report to the
candidate outlining the principal areas of deficiency. The report will indicate whether a revised submission
making good the deficiencies identified will be permitted. The decision of the Academic Board is final.
16. By submitting an extended essay to the Academic Board, candidates grant the CIOT a non-exclusive, royalty
free licence to publish it in whole or in part in Tax Adviser (the CIOT’s monthly and online journal), on the
CIOT website, and/or otherwise, if the extended essay is approved. The CIOT also reserves the right to make
available any extended essay which has been approved for reading or photocopying. Any application for the
CIOT to waive these rights must be made at the time of submission and will be judged on its own merits, with
the decision of the CIOT being final. Copyright will remain vested in the authoring candidate.
17. The John Avery Jones Extended Essay Prize may, at the discretion of the Academic Board, be awarded to the
candidate who, in the sole opinion of the Academic Board, achieves the highest standard in any calendar year.
18. The Academic Board reserves the right to amend the rules regarding extended essays at any time, but the
rules applying at the date of the application for extended essay approval will remain valid throughout the
period of registration.
19. Any candidate submitting an ADIT extended essay must hold a valid ADIT student registration at the time of
submission.
20. ADIT extended essay passes are valid for five years from the date on which the pass is awarded.

ADIT 77
EXTENDED ESSAY OPTION
GUIDANCE NOTES
Introduction
These guidance notes are intended to clarify the requirements for the presentation of your ADIT extended essay,
which are laid down in the Extended Essay Rules. They aim to indicate those matters for which extended essay
reviewers will be searching, to summarise the main faults commonly found in extended essays, and to list the steps
in approaching the preparation of an extended essay which the ADIT Academic Board considers will increase the
likelihood of your success.

Choosing a topic
The primary questions to address are:
“What aspect of international taxation really interests me, and does it provide sufficient scope for a 15,000-20,000
word extended essay?”
Extended essays may address an area of taxation in which you have considerable practical experience, be based
purely on academic research or be a mixture of the two.

Originality
A key requirement for success is that your extended essay contains a high degree of originality. The nature of
originality means that it is impossible to specify what constitutes it but, by way of illustration, originality may be
achieved in one or more of the following ways:
• By drawing on your own professional experience;
• By drawing together for the first time diverse sources of information on a particular topic, to present a
coherent and novel treatment of the subject; and
• By relating an aspect of taxation to wider legal, political, economic or ethical considerations in a way that has
not previously been done.
The key test that will be applied is whether or not the extended essay treats the chosen topic in a way not
previously published.
There is no bar to choosing topics on which ADIT extended essays have previously been submitted, provided the
foregoing guidelines are following.

The required extended essay standard

The extended essay should be of publishable quality, i.e. broadly equivalent to a dissertation for a master’s degree
at a UK university.

Plagiarism and academic bad practice

As an ADIT extended essay candidate, you are expected and required to adhere to a high standard of academic
practice. The CIOT takes offences such as plagiarism very seriously and, if judged to have engaged in academic bad
practice in the conduct of your extended essay, you may, in addition to receiving an automatic fail grade for the
ADIT extended essay, be subject to penalties including disqualification from the ADIT extended essay option and/or
ADIT and related CIOT examinations.

78 ADIT
While a distinction will always be made between accidental instances of misattribution (such as resulting from a
typing error or use of an unrecognised citing convention in a footnote), and deliberate attempts to pass someone
else’s work off as your own, you are strongly advised to double check that all uses of external sources are properly
and correctly referenced, with the author and text indicated in the footnotes and bibliography.
The CIOT reserves the right to use plagiarism checking software to screen extended essays for unattributed use
of the work of others. By submitting an extended essay, you consent to the submission of the text to plagiarism
checking software. Processing by such software may involve inclusion of the text in the software’s database. This
does not affect ownership of or copyright in the extended essay, which remains with the author.
Examples of external sources which need to be referenced include:
• Direct quotations;
• Arguments or conclusions from other authors which you have summarised or paraphrased;
• Extracts from external sources which you have reproduced or adapted anywhere in the extended essay (in
appendices as well as the main body of the work);
• Images or graphical depictions which you have reproduced or adapted anywhere in the extended essay (in
appendices as well as the main body of the work);
• Ideas which you have previously presented in an earlier work (however, this does not include an earlier
submission of the same extended essay, if the submission was in fulfilment of a university assessment or other
academic requirement); and
• Any external source which is in a language other than English. Many essays on international tax topics will
use foreign language primary and secondary source materials, and indeed your ability to review and analyse
foreign language materials may be a major advantage in researching a topic. However, the usual research and
citation standards apply. In particular, all citations to foreign language materials should include full citation
information in both English and the original language.
As a general rule of thumb, if you have depicted or referred to an idea, conclusion, quote or piece of data which
is not original to your extended essay, even if it is your own idea, conclusion, quote or piece of data from another
work, it should be referenced.
The Academic Board reserves the right to request copies of any cited material which it cannot easily obtain.

The importance of analytical content

It necessarily follows from the requirement for originality that a successful ADIT extended essay will contain a high
degree of analytical content. This must be distinguished from descriptive content. Whilst some descriptive content
will be necessary, for example to explain the current or previous legal position or practice, the analytical content
should provide, inter alia, commentary on (and critique of) the current or previous legal position or practice,
together with your own opinions (and recommendations, if appropriate). Extended essays consisting mainly of
descriptive content are less likely to succeed than ones with a high degree of analytical content. However, the
analytical content must not be achieved at the expense of thorough research into your subject matter.

Breadth versus depth

The requirement for a high degree of analytical content means that your extended essay is more likely to succeed if
it covers a narrow area in depth, rather than a broad area superficially. In other words, you are advised to limit the
scope of your extended essay to a few specific sections of tax law. For instance, if you wish to write on taxation in

ADIT 79
eastern European countries, you are advised to limit your extended essay either to one particular country or tax, or
both (e.g. VAT in Romania) or even to a particular aspect of a tax (e.g. VAT on e-commerce in eastern Europe).
Your extended essay should involve a comprehensive treatment of your topic, meaning that all relevant aspects
need to be analysed, unless the extended essay topic has been carefully defined to exclude them. Where
appropriate, consideration of the relevant aspects of other areas of law or of accountancy should be included.

Technical accuracy
The Academic Board realises that some extended essays will be written about contentious areas or provisions. The
Academic Board believes that there should always be room for a divergence of views as to the interpretation of
statutes and case law,, and it wishes to encourage discussion of the meaning of the law. You should therefore not
hesitate to discuss contentious points, but you will be expected to support any position you may take. Provided
your position is well reasoned, you will not be penalised if the reviewer happens to hold an opposing view.

Extended essays on tax planning issues

If your extended essay takes as its topic international issues in tax planning then it is important that the commercial
aspects of the planning points and practical considerations in their implementation are considered. Relevant
examples and illustrations would be expected, together with due consideration of the legal and, where relevant,
accounting considerations of the planning strategies being put forward.

Changes in the law during preparation of the extended essay

Your extended essay should state at the outset the date through which the relevant law is covered. In general,
if your extended essay deals with specific points of law that have changed since notification of approval of your
extended essay proposal, then the following guidelines apply:
• Changes should generally be fully dealt with in the body of the extended essay unless they are announced less
than three months prior to submission.
• Changes announced more than three months but less than one year before the submission date may either be
fully dealt with throughout the extended essay or acknowledged via the addition of a short chapter discussing
the impact of the changes on the subject matter of the extended essay.

Steps in researching and writing the extended essay

A good extended essay poses an interesting, focussed question and provides a reasoned answer to that question or
identifies a problem and proposes a solution to that problem.
Keeping in mind that researching and writing a law essay is a dialectical process, not a linear one, these are the
basic steps:
1. Choose a topic of interest both to yourself and potential readers. Know your target audience.
2. Narrow the scope of the topic down to a discrete issue that can be dealt with well in 15,000-20,000 words. You
should avoid being too broad and descriptive while at the same time avoid being so narrowly focussed as to be
unlikely to interest potential readers.
3. Know and cite the existing literature relevant to your issue.

80 ADIT
4. Make sure the structure of the extended essay follows the logic of the argument, and maintains the focus of
that argument throughout the essay.
5. Include your analysis and, where relevant, recommendations.

Collecting source materials

An ADIT extended essay is intended to be a work of scholarship and will require painstaking research into your
chosen area, encompassing some or all of legislation, case law, books, journal articles, professional publications,
websites, professional correspondence and files, and unpublished work such as university theses or dissertations,
and other ADIT extended essays. In any extended essay which addresses a more academic topic, it will usually be
appropriate to include a formal literature review so that the reader is aware of the volume and nature of materials
available which are relevant to the topic.
You may find that noting the specific source of an idea, argument or quotation when taking notes will save you
considerable time when writing up your essay.

Planning the structure of the extended essay

Whatever the topic of your extended essay you should write down, and keep in mind, the primary objective of your
extended essay. Perhaps there is a question on which you wish to reach a conclusion. Perhaps you are seeking to
perform a comparative study of an aspect of the tax system. Perhaps there is an assertion which you wish to try
and prove. Making a list of criteria to be used in answering the question, making the comparison or proving the
assertion will greatly assist in providing the extended essay with a logical and rational structure. For instance, if
making a comparative study between property taxes in two jurisdictions, what will be the points of comparison for
the analysis? Fairness? Simplicity? Effect on the housing market? Effect on business expansion?
Having done this, you should be in a position to outline your extended essay with chapter headings and
approximate word allocations, taking care to allocate sufficient time and space to descriptive and analytical
material and discussion. You should remember that it may be more appropriate to locate larger tracts of descriptive
material in appendices if they are relevant to the extended essay but do not contribute directly to the analysis.

Writing up
You may find it difficult to begin writing your extended essay. However, rest assured that, once started, candidates
often find it even more difficult to finish! This is a personal choice, but you may find it easier to start with
descriptive sections or by preparing practical or numerical examples rather than plunging straight into analysis.
You are strongly advised to discuss your extended essay with colleagues or other contacts with appropriate
knowledge of the subject matter, to have one or more of them read and critically review it and to arrange for a
colleague or contact to proofread your extended essay prior to submission.

Conclusions
A successful ADIT extended essay will contain well-argued conclusions which are supported by preceding analysis
and descriptive materials. The conclusions should form a substantial part of the extended essay, rather than being
confined to a few sentences at the end.

ADIT 81
Presentation
The title of your extended essay and the extended essay reference number, assigned on approval of the extended
essay, must be on the front cover. Your name and ADIT student number should not appear anywhere on the
extended essay, and you should ensure that you have deleted any personal information associated with the file.
The extended essay must be typed using Times Roman, Arial, Calibri or similar easily readable typeface, in 12 point
font size.
The text should be double spaced. Page margins should be as follows:
• Left (binding edge): 40 mm
• Other margins: 25 mm

Page numbering and table of contents

Pages must be numbered in a single sequence throughout your extended essay. Page numbers should be located
within the page footer, at least 15 mm from the edge of the page.
A table of contents should appear at the front of the extended essay, immediately following the title page. It should
list, in sequence and with page numbers, all chapters, sections and relevant subsections of the extended essay; the
bibliography; and any additional items included, such as appendices and any list of abbreviations.

Acknowledgements
Any acknowledgements should be given on the page immediately following the table of contents.

Referencing
A recognised referencing system should be used. In keeping with generally accepted practice in legal writing,
this should be a full footnote citation system such as the Oxford Standard for the Citation of Legal Authorities
(OSCOLA). Guides to and examples of OSCOLA and other full footnote citation systems are widely available, online
and in print. Suitable modifications may be made for foreign language material and other material not sufficiently
addressed by the citation system, as long as any such citations are consistent with the citation system.
In the context of the ADIT extended essay, the purpose of citation is two-fold: to acknowledge the source of an
idea, an argument a quotation or other material and to make it easy for the reader to check the source, either
for accuracy or to read further. For these reasons, regardless of the referencing system used, a number of pieces
of information should be included in each reference, to ensure that the reference can be traced and avoid the
possibility of accidental misattribution or academic bad practice.

When citing a book, you should include:

• the full name(s) of the author(s);
• the title and edition of the work;
• the publisher and year of publication; and
• the page(s) from which the information is drawn.

82 ADIT
When citing a journal, you should include:
• the full name(s) of the author(s);
• the title of the article;
• the title, publication year, volume and issue number of the journal; and
• the page(s) from which the information is drawn.

When citing a legal case, piece of legislation or report, you should include:
• the full title (including the parties’ names in the case of legal cases);
• the year of judgment, effective date and/or publication date;
• the volume, law or report number (if there is one);
• the judge or author, where relevant; and
• the page(s) or section(s) from which the information is drawn.

When citing a webpage, you should include:

• the name of the authoring individual(s) or organisation;
• the title of the website and article;
• the full web address (URL); and
• the date on which the information was published (if available) and the date on which the webpage was
viewed.

Bibliography
ADIT extended essays should contain a full bibliography. Your bibliography should list references in alphabetical
order by authors’ last names. Where more than one publication by the same author has been used, the
publications should be listed in chronological order with the oldest item first. The bibliography may be divided into
sections (e.g. books, journal articles, websites, etc).

Submitting your essay

As detailed in the Rules (Rule 13), you must submit one electronic softcopy of your extended essay. The essay
should be sent to [email protected] in either MS Word (.doc or .docx) or PDF format.
Your essay must be accompanied by a completed Extended Essay Declaration Form, confirming that your essay
has been completed in accordance with the Extended Essay Rules, and that all sections of your essay are your own
work.

Find out more at

www.tax.org.uk/adit/extended-essay
ADIT 83
84 ADIT
 GLOBAL
CHALLENGING
PRACTICAL
VALUED
RECOGNISED
ADVANCED
UP-TO-DATE
STRUCTURED
FLEXIBLE
EMPOWERING
SPECIALIST
THOROUGH
CURRENT
INTERNATIONAL
ROBUST
MODERN
UNIQUE
ADIT 85
www.tax.org.uk/adit

For further information, or if you have

a question you would like to discuss,
please contact us:

+44 (0)20 7340 0550

[email protected]
www.tax.org.uk/adit

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Institute of Taxation. For more
information about the CIOT, please
visit www.tax.org.uk

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