Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Recent Tax Developments in India - DTC 2013 & APA updates

This presentation is based upon two recent tax developments in India i.e. The Direct Taxes Code (DTC) 2013 and Advance Pricing Agreement (APA) updates.

Direct Taxes Code 2013 : DTC was introduced in the Indian Parliament in August 2010. Since then, there have been recommendations from various stakeholders, as well as, from the Parliamentary Standing Committee on Finance. As a follow-up on this initiative and as stated by the Finance Minister in his interim budget speech on 17 February 2014 a “revised" version of DTC 2013, has been released.

Advance Pricing Agreement : Another tax development that was closely followed and tracked by all stakeholders was APA, which was the launch in 2012 to provide a voluntary process, whereby, the Tax Authority and the taxpayer can resolve TP issues in a principled and cooperative manner on a prospective basis. Since the launch of the APA program, there has been an enthusiastic response from taxpayers and recent reports indicate that the Indian Tax Administration has concluded a few unilateral APAs.

For more information on EY India's tax services visit:

  • Login to see the comments

Recent Tax Developments in India - DTC 2013 & APA updates

  1. 1. Recent Tax Developments in India - DTC 2013 & APA updates EY Webcast 11 April 2014 EY refers to the global organization, and/or one or more of the independent member firms of Ernst & Young Global Limited
  2. 2. Contents Recent Tax Developments in India - DTC 2013 & APA Updates ► Direct taxes code (DTC) 2013 ► Background ► Key provisions of DTC 2013 ► Concluding thoughts ► Advanced Pricing Agreements (APA) ► Background ► Process, updates ► Concluding thoughts
  3. 3. Direct Taxes Code (DTC) 2013 Recent Tax Developments in India - DTC 2013 & APA Updates
  4. 4. DTC 2013, background ► Government of India’s (GOI’s) attempt to revise, consolidate and simplify direct tax laws ► 12 Aug 2009: Draft DTC Bill, 2009 and Discussion paper released ► 15 Jun 2010: Revised discussion paper released ► Addressed 11 issues arising from the draft DTC Bill, 2009 ► 30 Aug 2010: DTC 2010 placed before the Indian Parliament ► 9 Sep 2010: Referred to Standing Committee on Finance (SCF) for examination ► 9 Mar 2012: SCF submits its report after having broad based consultations with various stakeholders ► 17 Feb 2014: Finance Minister in his Interim Budget speech states his intent to place the DTC on the website for public discussion ► 31 Mar 2014: Revised version of “DTC 2013” released for public comments ► 153 out of 190 recommendations of SCF proposed to be accepted Recent Tax Developments in India - DTC 2013 & APA Updates
  5. 5. DTC 2013, background ► Single code for all direct taxes ► 325 sections plus 23 schedules ► DTC 2010 had 319 sections and 22 schedules ► Attempt to simplify language when compared to Income Tax Act (ITA) ► Complete elimination of “provisos” ► “Explanation” used at only 3 occasions ► Consolidation of provisions ► Extensive use of tables & formulae ► Powers delegated to GOI/tax administrative authority ► Possibly to avoid protracted litigation on procedural issues ► Tax rates provided in the DTC 2013 itself ► Concept of annual Finance Acts (FA) to provide for tax rates done away with Recent Tax Developments in India - DTC 2013 & APA Updates
  6. 6. Corporate tax rates at a glance Recent Tax Developments in India - DTC 2013 & APA Updates Particulars ITA tax rates (excluding surcharge and cess) DTC 2013 tax rates Domestic Company 30% 30% Foreign Company 40% 30% Branch Profit Tax (BPT) Not Applicable 15% Dividend distribution tax (DDT) 15% 15% Additional dividend tax on resident shareholder Not applicable 10% if dividend income exceeds INR 10 mn (Introduced for the first time) Minimum Alternate Tax (MAT) 18.5% of adjusted book profits 18.5% of adjusted book profits (It was 20% under DTC 2010) Alternate Minimum Tax (AMT) 18.5% of adjusted total income (Applies to non-corporate taxpayers) 18.5% of adjusted total income (Not present in DTC 2010) (Applies to firms and Limited Liability Partnerships)
  7. 7. Residence rule for corporates ► ITA: Foreign company (FC) resident if control & management situated wholly in India ► DTC 2010: FC resident if place of effective management (POEM) in India “at any time in the year” ► POEM defined to mean place where executive directors or officers the company make their decisions or perform their functions ► SCF recommends to base POEM definition on internationally accepted standards ► DTC 2013: Continues to contain the POEM rule ► FC resident if its POEM in the concerned Financial year (FY) “at any time” is in India ► Accepts SCF recommendation to align POEM definition with internationally accepted standards ► POEM defined to mean the place where key management and commercial decisions that are necessary for the conduct of the business of an entity as a whole are, in substance made Recent Tax Developments in India - DTC 2013 & APA Updates
  8. 8. Income computation ► Concept of ‘previous year’ and ‘assessment year’ replaced by a uniform concept of FY ► Classification of income as either ‘special source’ or ‘ordinary source’ ► Separate computation of ordinary source and special source income ► Special source income specified in the First Schedule ► Total income determined by aggregating ► Gross total income from ordinary sources less permissible deductions and ► Total income from special sources ► Largely in line with DTC 2010 proposals Recent Tax Developments in India - DTC 2013 & APA Updates
  9. 9. Income computation Recent Tax Developments in India - DTC 2013 & APA Updates Ordinary source Special Source Income from • Employment2. • House property3. • Business3. • Residuary 1 • Capital gain [for residents as also Non-residents (NRs)]3 Resident Resident and NR NR DDT subjected dividends received > INR10 million: levy of additional tax4 ► Card game, lottery winning, horse race ► Unexplained investments / expenditure / income, etc.4 Dividend (excluding dividend on which DDT is paid) Royalty, Fees for Technical Services (FTS), interest, sportsman, etc. Excludes income attributable to PE in India 1 Controlled Foreign Company (CFC) income is part of residuary source 2 Computation cannot result in loss 3 Computation can result in loss 4 Inserted for the first time in DTC 2013
  10. 10. Additional tax on dividends for resident shareholder ► Under ITA, dividend distributed by domestic company is subject to DDT at the rate of 15% ► Not taxed again in the hands of shareholder ► DTC 2013 proposes an additional tax levy of 10% if the total dividend income received (subject to DDT) exceeds INR 10 mn in a FY ► Tax is to be paid by the resident shareholder over and above DDT of 15% paid by the distributing company. ► Dividend regarded as special source income, no expenditure is allowed to be set off against this. ► Likelihood of cascading effect in multi-tier structures ► No provision to set this off against further distributions as in case of DDT ► Significant impact on investing companies which collect dividend income on their investments Recent Tax Developments in India - DTC 2013 & APA Updates
  11. 11. Indirect transfer of capital asset ► ITA: Income accruing directly or indirectly from transfer of capital asset situated in India ► FA 2012 amended ITA to tax indirect transfer of assets where the share or interest derives its value substantially from Indian assets ► “Substantially” not defined ► DTC 2013: Largely includes the FA 2012 amended ITA rule: ► The threshold of “substantially” is stated at 20% ► PCo not taxable if Fair Market Value (FMV) of “Indian assets” is < 20% FCo1’s total assets ► DTC 2010 had proposed a higher threshold limit of 50% for non-taxation Recent Tax Developments in India - DTC 2013 & APA Updates FCo2PCo FCo1 Ind Co India Overseas Transfer of Shares in FCo1 to FCo2
  12. 12. Indirect transfer of capital asset ► DTC 2013 provisions ► “Specified date” for determining FMV defined ► The date on which the accounting period of FCo1 ends and which immediately precedes the date of transfer of shares in FCo1 ► Contains relief for small shareholders ► Where PCo’s holding <5% of voting power/share capital of FCo1; and ► PCo, along with its Associated Enterprises, does not hold the right of management or control in relation to FCo1, either directly or through intermediate entities Recent Tax Developments in India - DTC 2013 & APA Updates FCo2PCo FCo1 Ind Co India Overseas Transfer of Shares in FCo1 to FCo2
  13. 13. Expanded source rule ► Transportation charges for carriage by aircraft or ship to or from India ► Insurance/re-insurance premium for covering risk in India ► Expanded definition of royalty & FTS ► Development and transfer of a design, drawing, plan or software ► Transmission by satellite, cable, optic fiber, transfer of rights in cinematograph films & live coverage of events ► FA 2012 amendments of ITA provisions on royalty also included in DTC 2013 ► Explanation introduced to clarify that use of computer software (including granting of a license) irrespective of the medium through which such right is transferred is included in the royalty definition ► Clarification that royalty includes consideration in respect of any right, property or information, regardless of it being: ► In the possession of the payer; used directly by the payer or located in India ► Expression, “process” includes transmission by satellite, cable optic fibre, etc whether or not such process is secret Recent Tax Developments in India - DTC 2013 & APA Updates
  14. 14. Expanded source rule, interest ► FCo acquires debt for investing in/ granting loan to Ind Co ► Taxability of interest paid by FCo to Fin Co? ► ITA: Not taxable as long as FCo does not carry on business in India ► DTC 2013: Taxable on gross basis as FCo uses debt for earning India source income ► Interest paid and not claimed as deduction in India still taxable ► DTC 2010 exempted such interest Recent Tax Developments in India - DTC 2013 & APA Updates F Co Ind Co India Overseas Fin Co Loan Loan/Shares
  15. 15. Branch profit tax (BPT) ► BPT levied on PE of FC at 15% ► On income attributable (directly or indirectly) to PE ► After reducing corporate tax Recent Tax Developments in India - DTC 2013 & APA Updates Particulars on income computation of FC Amount Total Income (includes royalty income of 400 not attributable to PE in India) 500 Income attributable directly or indirectly to PE in India 100 (Less) Corporate Tax @ 30% (30) Taxable amount for BPT (A) 70 BPT @15% on (A) 10.50 ► Liability not dependent on remittance of profits ► BPT overrides tax treaty provisions
  16. 16. Withholding tax (WHT) provisions ► Applies to “any person” on “specified payments” at the time of payment or credit; WHT needs to be at “appropriate rates” ► “Specified payments” and “appropriate rates” defined in the Schedule ► Payments in kind subject to WHT ► “Appropriate rate” would be higher of prescribed rate or 20% if recipient does not have Permanent Account Number ► Exemption to specified interest paid to NR on long term infrastructure bonds ► Provisions exist to obtain “nil” and “lower” tax WHT certificates ► Tax authority to consider ‘total income’ while issuing such certificate, applies only to residents ► SCF recommendation that such condition should not apply to NRs accepted ► GOI may require filing of WHT returns in cases of payment made without withholding tax Recent Tax Developments in India - DTC 2013 & APA Updates
  17. 17. WHT provisions ► WHT on residents ► Transactions covered include interest, commission, rent, fees for professional & technical services, non compete fee, royalty, payment to contractors, consideration for transfer of immovable property etc ► WHT on NRs ► Certain specific payments like interest, royalty, FTS, insurance payments, dividends, payments to sportsmen etc ► Ambiguity as to whether such amounts needs to be “chargeable to tax” ► Residuary category covers “any other sum chargeable to tax” ► Payment to Foreign Institutional Investor on sale consideration of listed securities on a recognized stock exchange not subject to WHT ► WHT at 30% or applicable rate, whichever is higher, if recipient is situated in Notified Jurisdictional Area (NJA) ► Treaty rates apply if such rates are more beneficial compared to DTC 2013 ► Deductor obliged to furnish information on specified payments to NR Recent Tax Developments in India - DTC 2013 & APA Updates
  18. 18. Relationship between tax treaty and domestic law ► Aligned with status under the ITA ► Preferential treatment for treaty law over domestic tax law ► In case of conflict, taxpayer can choose the more beneficial law ► Limited treaty override same as proposed in DTC 2010 ► General anti-avoidance rule (GAAR) ► BPT ► CFC rules ► Treaty benefits not available until a tax residency certificate is furnished, along with prescribed information/documents ► Levy of BPT not considered as discriminatory against foreign company ► Comparable rule for differential tax rate exists in ITA as well as in DTC 2013 Recent Tax Developments in India - DTC 2013 & APA Updates
  19. 19. Approach to tax avoidance, GAAR ► First proposed in DTC 2009; ► Adopted in ITA by FA 2012; subsequently amended by FA 2013, based on SCF recommendations ► GAAR provisions of DTC 2013 aligned with ITA provisions, except: ► Definition of “connected person” now extends to co-subsidiaries ► Tax consequences if GAAR is invoked: ► Disregard, combine, re-characterize steps or parts of the arrangement ► Disregard any accommodating party ► Deem connected persons/ accommodating party to be one and the same person ► Re-characterize or re-allocate income/expense/deduction/relief etc. ► Re-characterize multi-party financing transaction ► Re-characterize debt financing as equity or vice versa Recent Tax Developments in India - DTC 2013 & APA Updates
  20. 20. Controlled foreign company (CFC) rules ► Introduced for the first time in DTC 2010; part of “Second Schedule” in DTC 2013 ► Aims to end tax deferral ► Undistributed income earned by a CFC is included as income of the resident shareholder under certain circumstances ► CFC’s income computed as per defined formula ► Proportionate share of CFC income (only if positive) based on extent of control and number of days attributed to resident and taxed as “income from residuary sources” ► Dividends from previously taxed CFC income allowed as deduction ► Certain territories not regarded as “territory with a lower rate of taxation” ► Empowers GOI to notify “white-list” of countries, new feature in DTC 2013 ► Active trade or business test, passive income threshold lowered ► DTC 2013: specified (passive) income <25% of total income ► DTC 2010 contained a higher threshold of passive income <50% of total income Recent Tax Developments in India - DTC 2013 & APA Updates
  21. 21. Transfer pricing (TP) ► Definition of “international transaction” and “intangible property (IP)” ► International transaction definition aligned with ITA definition, post FA 2012 amendment ► IP definition of DTC 2010 retained – “trained & organized work force”, “employment contracts” not regarded as IP? ► Domestic TP was introduced for the first time by FA 2012 ► SC decision in the case Glaxo Smithkline [236 CTR 113 (2010)] ► Domestic TP provisions have been incorporated in DTC 2013 ► Under DTC 2013 “any expenditure” includes capital expenditure ► Does not include transaction inter se units claiming profit-linked tax holiday Recent Tax Developments in India - DTC 2013 & APA Updates
  22. 22. Tax on net wealth ► Residents - The levy is on value of all assets irrespective of their location ► NRs / foreign citizens – Value of assets situated outside in India is outside the purview of wealth tax ► Asset based is widened to include all financial assets (including listed and unlisted shares) and many business assets Recent Tax Developments in India - DTC 2013 & APA Updates Particulars Existing provisions DTC 2013 provisions Scope of Wealth Tax ► Applicable to individuals, Hindu Undivided Family (HUF) and companies ► Applicable to individual, HUF and private discretionary trust Threshold Limit ► Wealth tax payable on net wealth in excess of INR 3 mn ► Applies to all taxpayers ► Wealth tax payable on net wealth in excess of INR 500 mn (INR 10 mn under DTC 2010) as on valuation date ► Threshold applies to individuals & HUF Rate of tax ► 1% of net wealth in excess of INR 3 mn ► 0.25% of net wealth in excess of INR 500 mn (for Individuals and HUF) ► 0.25% of entire net wealth for private discretionary trust ► DTC 2010 proposed levy of 1%
  23. 23. Concluding thoughts ► The revised provisions of DTC 2013 are largely aligned with current provisions of ITA or are a response to the recommendations of SCF ► Some changes are positive ► POEM definition reworded to align with internationally accepted standards ► Exclusion of small shareholders from indirect transfer tax levy ► Some changes are novel ► Additional dividend tax levy on resident shareholders ► Greater emphasis on “source country tax” continues ► Expanded ‘source rules’ ► Lowering the threshold to 20% for trigger of indirect transfer ► Uncertainty on fate of DTC 2013? Recent Tax Developments in India - DTC 2013 & APA Updates
  24. 24. Advance Pricing Agreement (APA) Recent Tax Developments in India - DTC 2013 & APA Updates
  25. 25. Background: Evolution of APAs in India ► 2009: Proposal to introduce APA included in draft DTC Bill ► August 2010: DTC Bill placed before Parliament; Referred to the SCF for examination ► February 2012: Ministry of Finance appoints director of APA program ► March 2012: SCF submits recommendations ► Mechanism of framing APA to be entrusted to independent agency ► Procedural safeguards to be introduced ► Conclusion of APA in a time bound manner ► Tax treaties to be suitably amended to include APA ► March 2012: APA introduced by Finance Bill (FB) 2012 ► May 2012: FB 2012 enacted introducing APA ► New sections - 92CC and 92CD inserted in the ITA ► June 2012: APA team constituted in Delhi, Mumbai, Bangalore ► August 2012: APA rules notified Major suggestions provided by the coalition on International taxation spearheaded by EY have been accepted and implemented in the APA Rules (2012) Recent Tax Developments in India - DTC 2013 & APA Updates
  26. 26. Indian APA rules: Overview of the process ► Industry overview ► Supply chain overview ► FAR analysis ► Proposed economic analysis ► Proposed term ► Field work (functional interviews, review financial statements) ► Government-to- government process ► Position papers – face to face meetings ► Critical assumptions ► Drafting and concluding APAs ► Unilateral vs bilateral ► Pre-filing meeting (anonymous) ► Pricing study and strategy ► Annual report, record-keeping ► Audit ► Revocation, cancellation or revision ► Renewal Execution and monitoring Evaluation and negotiation – Agreement APA requestPre-filing ► Pre-filing consultation is mandatory (also permitted on an anonymous basis) and is the first step before filing formal application to – (a) Determine scope of APA; (b) Identify TP issues; (c) Determine suitability of transaction for APA; (d) Discuss broad terms of the APA. ► Post pre-filing consultation, taxpayers may file an application for either a UAPA or BAPA; Withdrawal and amendments to application permitted under Rules. Recent Tax Developments in India - DTC 2013 & APA Updates
  27. 27. Clarifications from CBDT: APA guide and FAQs released in May 2013 ► Pre-filing consultation being a preliminary process is non-binding ► No compulsion for taxpayer to enter into an APA for all transactions entered into. However, if transactions are intrinsically linked to one another, APA authorities would inform taxpayers that all such transactions would need to be covered ► The extent of details needed to be furnished in the formal application may be discussed during pre-filing consultation meetings ► APA Authorities not bound by past audit history of the taxpayer ► Provisions exist for amendment of an APA application. Post filing, UAPA can be converted into a BAPA, subject to conditions ► If an applicant admits to having a PE in India, he can also file a request for determining profit attribution to the PE in India ► Annual compliance audit post an APA would not be broad based regular TP audit but would be focused on ascertaining compliance with terms of the APA ► No firewalls against sharing of information between tax authorities ► No benefit of tolerance range to be allowed to applicants entering into an APA Recent Tax Developments in India - DTC 2013 & APA Updates
  28. 28. APA process: Negotiation stage; typical steps Typicalstepsinvolvedduringthenegotiation stage Conducting site visits Joint. Secy FTD approves the position paper Position paper with tentative ALP sent to CBDT Chairperson Data gathering post application Economic Analysis Chairperson CBDT sends the position paper to Joint Secretary Foreign tax & Tax research Division (Joint. Secy FTD) CBDT Chairperson approves position paper APA team then offers a price in the approved range to the taxpayer Final agreement will be signed by the CBDT and the taxpayer If taxpayer agrees, then draft APA agreement will be sent to the CBDT Final draft approved by the CBDT sent to Ministry of Law for consent Recent Tax Developments in India - DTC 2013 & APA Updates
  29. 29. Negotiating APAs: Key issues for consideration ► Selection and application of the Transfer Pricing Method ► Deciding on the years over which the comparable results are to be analyzed ► Adjustment to comparable results ► Testing results during APA period ► Compensating adjustments ► Critical assumptions Recent Tax Developments in India - DTC 2013 & APA Updates
  30. 30. APAs in India: Numbers speak !! ► 146 APA filings in “first wave” relevant to FY 2013-14 and onwards ► 80% of the applications are for UAPA ► EY handling close to 30% of applications ► 232 APA filings in the “second wave” relevant to FY 2014-15 and onwards ► 206 applications for UAPA and 26 applications are for BAPA . ► 40% relates to subsidiaries of US multinationals ► EY handling close to 35% of applications ► Applications filed in the second wave is almost 58% higher than the first wave of applications. This reflects the confidence of taxpayers in the APA program ► 5 UAPAs signed already ► Conclusion of five APAs within a period of 12 months is commendable and does show the Indian APA program favourable in terms of timelines ► U.S. IRS APA report for 2013 (recently released) mentions that the US has taken an average of 34 months for concluding a new UAPA and 41 months for a new BAPA ► Cumulative 400 applications is a record not achieved by any country in the initial 2 years of the APA program Recent Tax Developments in India - DTC 2013 & APA Updates
  31. 31. APAs in India: Current status ► 5 UAPAs signed covers ► Transactions such as interest on loan, corporate guarantee, investment advisory services, contract manufacturing ► Across industries such as Pharmaceutical, Telecom and Financial Services ► APA team is also understood to have reached an understanding with a taxpayer on a proposed share issue transaction which has been a subject matter of litigation ► Inter-play between Safe harbour rules and APAs ► Special emphasis on site visits in India APA Program ► Basically performed to understand business model of the applicant ► Clarified by APA Authorities that site visits will not be like searches/surveys conducted by Tax authorities ► Review of position of Article 9(2) and BAPAs ► Currently BAPA not accepted for countries such Germany, Singapore, France, Korea ► “Synthetic Bilateral APA” could be explored as an alternative ► Need to address issues relating to staffing/ resources Recent Tax Developments in India - DTC 2013 & APA Updates
  32. 32. EY Experience so far… a snapshot… The EY APA experience Countries Involved Countries involved in the BAPA are: ► UK, Sweden and Japan Applicants for UAPA cover transactions with: ► Netherlands, Singapore, Germany, Austria, Germany, Korea, France, Australia, USA 11 Bilateral Applications out of the total 26 applications And 70 Unilateral Applications out of the total 206 applications filed in the second wave… Major Industries include: ► Telecom, Oil and Gas, Apparel, Information Technology, Shipping, Pharmaceutical, Chemicals, Rubber, Banking, Private Equity and several other manufacturing, trading and service industries Major transactions include: ► Payment of royalty ► Provision of software, ITeS, engineering & design, contract manufacturing, business support services etc. ► Availing intra group services ► Payment of interest/ provision of corporate guarantee ► Share issue transactions Recent Tax Developments in India - DTC 2013 & APA Updates
  33. 33. APAs, when to consider? When to consider ? Nature of international transactions – whether a “red flag” for tax authorities (contentious/ complex/ recurring issues) Size and complexity of international transactions Known opposition of tax authorities to the TP approach Extent to which pricing outcome is sensitive to external factors and whether APA mechanism is flexible to provide for changes Audit fatigue and time taken to conclude an APA Pros and cons of other dispute resolution channels vis-à-vis the APA mechanism Unilateral v bilateral/ multilateral and cost benefit analysis considering all of the above Recent Tax Developments in India - DTC 2013 & APA Updates
  34. 34. APAs: benefits & risks ► Addresses concerns around domestic tax law process ► Provides certainty and enhances predictability ► Proactively avoids TP controversy - A BAPA and MAPA are the only way to exclude TP controversy risk as it binds the tax authorities of both the countries ► Discussion at the “right level” ► Eliminates/reduces risk of economic double taxation ► Can reduce compliance cost ► EY 2013 Global TP survey on use of APAs ► Preferred means of controversy management after Mutual Agreement Procedure ► 26% of parent respondents use APAs as controversy management tools; 90% of those who have used APAs would do so again Benefits Risks ► Time consuming exercise especially with BAPA and MAPAs ► Strain on resources for taxpayers and tax authorities – personnel and expenses ► May not provide certainty in case of a UAPA or if an APA involves unreliable prediction on market conditions without adequate critical assumptions ► Taxpayers may be asked to provide detailed information on transactions that is normally not required in a routine audit ► Information provided can be used against taxpayers ► May not always result in the desired outcome Recent Tax Developments in India - DTC 2013 & APA Updates
  35. 35. Concluding remarks Prudent preparation required for designing a winning APA strategy Consider using APAs for implementing TP planning/ re-design opportunities Aggressive revenue enforcement and punitive interest and penalty provisions will present a formidable challenge APAs offers a window of opportunity for controversy management 1 2 3 4 Concluding remarks Recent Tax Developments in India - DTC 2013 & APA Updates
  36. 36. Questions? Recent Tax Developments in India - DTC 2013 & APA Updates
  37. 37. This presentation contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither Ernst & Young LLP nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor. Ernst & Young LLP © 2014 Ernst & Young. All Rights Reserved. EY is a registered trademark.