Starting from November 1st 2019, Poland has implemented new rules for making payments to VAT taxpayers under which in particular cases the amount of VAT must be paid to the separate bank account of the supplier (so called split-payment). The implementation came as a continuation of the sealing process of VAT system in Poland and replaced reverse charge method of settling VAT in the domestic transactions.
In this month’s newsletter we look at Arbitration Award Default Insurance (AADI) and round up the main international arbitration news by geographic area. In institutional news the headline item is that the three main Spanish arbitral institutions have merged to form 'Centro Internacional de Arbitraje de Madrid' (CIAM).
On September 10, the Advocate General (AG) issued his opinion on a preliminary ruling to be rendered by the Court of Justice of the European Union (CJEU) regarding a lawsuit in Spain over the validity, under the European directive on unfair terms in consumer contracts (Directive 93/13), of a contractual clause referencing a local interest rate benchmark in floating rate residential mortgage loans. The press has regarded the opinion as unfavorable to the banks. If upheld by the CJEU, it could mark a turning point in the underlying lawsuits. A final negative outcome could provoke massive losses for a number of Spanish banks with the possibility to accelerate a wave of domestic and European bank mergers.
A no deal Brexit could prompt legal action by the European Union against the UK to claim payment of the financial obligations it assumed before its exit. This massive lawsuit, over a sum possibly in the region of 50 billion euros, could have extremely serious implications for the UK as a sovereign state.
The Libra Association, founded by Facebook and 27 other organizations, intends to promote the construction of a global financial infrastructure and issue from it a new cryptocurrency called Libra, enabling operators to carry out payment transactions and other financial solutions for consumers and businesses throughout the world.
As of 1 July 2019, additional requirements will take effect for an exemption or preferential rate for withholding tax. The newly introduced formal requirements could mean an increase in costs of services purchased in cross-border transactions, which in turn could affect liquidity. In special cases, it might also be unclear whether measures to continue to make use of preferential tax schemes might trigger an MDR obligation (i.e. obligation to report tax planning arrangements).
On Thursday, June 6, 2019, the European Commission decided to refer Spain to the Court of Justice of the European Union for “imposing disproportionate penalties on Spanish taxpayers for the failure to report assets held in other EU and EEA States (Modelo 720)”, according to a press release just published.
The Ministry of Economy and Business has announced commencement of the comment period for the Preliminary Bill amending the revised Capital Companies Law, approved by Legislative Royal Decree 1/2010, of July 2, 2010 and other financial legislation, to adapt them to Directive (EU) 2017/828 of the European Parliament and of the Council of 17 May 2017 amending Directive 2007/36/EC as regards the encouragement of long-term shareholder engagement.