TEI European chapter meets in Brussels to discuss intangible property issues.

• Position: Tax Executives Institute

TEI's European Chapter kicked off its first meeting of the 2004-2005 year with a two-day program held at the Toyota Conference Center in Brussels on October 7 and 8, 2004. The meeting was hosted by Daniel Broekhuizen and Ilonka Burmann of Toyota Motor Marketing Europe. The meeting venue included an impressive display of the car-maker's products, including an original Formula 1 race car.

Chapter President Fabio DeAngelis, then of Nestle Foods Corporation, welcomed the participants and explained the format for the program, noting that the first day usually included a sharing of members' experiences with tax issues throughout the European community. The second day focused on the "practitioner's view" of selected topics. The Chapter has added indirect taxes as an integral part of the all-day technical sessions.

Feedback from the EU Commission

During the first day, Werner Blockmans of the European Commission's Directorate General--Taxation & Customs Policy provided valuable insight on the Commission's work in respect of VAT issues. Discussing the complex process for enacting VAT legislation, Mr. Blockmans walked participants through the draft directive on the simplification of VAT obligations, including a "one-stop system" for 8th Directive refunds, the "clean-up" of the limitations to the right of deduction, and the extension of the reverse-charge mechanism. (TEI filed comments on the one-stop system on July 31, 2004.)

Mr. Blockmans also noted that December 2003 proposal on B2B services will be discussed by the Finance Ministers later this year and that several matters are currently on hold (e.g., VAT rates, Tour Operator Regimes, and Postal Services). He added that the Commission is working on a recast of the 6th Directive.

Member Presentations

The first day also included several presentations by Chapter members. Juan Carlos Tena of General Motors Europe A.G. teamed with Tony McClenaghan of Deloitte & Touche to discuss GM's outsourcing of its VAT compliance to the accounting firm. Mr. Broekhuizen added to his hosting duties by discussing transfer pricing issues and a transfer pricing survey he has initiated among Chapter members. The results of the survey will be posted on the Chapter's website.

Other topics discussed the first day were the introduction to the Chapter's new website and a proposed TEI submission on the OECD's discussion draft on the attribution of profits to a permanent establishment. (The Institute's submission was filed on...