Stanley Obidiegwu

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𝗧𝗵𝗲 𝗜𝗻𝘃𝗶𝘀𝗶𝗯𝗹𝗲 𝗧𝗮𝘅 𝗧𝗿𝗮𝗽 𝗶𝗻 𝗖𝗿𝗼𝘀𝘀-𝗕𝗼𝗿𝗱𝗲𝗿 𝗦𝗲𝗰𝗼𝗻𝗱𝗺𝗲𝗻𝘁

You bring in an expert from your global headquarters.

They have the skills. They have the experience. They have the vision to scale your local operations.

You handle the visa. You pay the salary. You reimburse the parent company for the costs. Everything seems compliant.

Then the tax authorities knock on your door.

They don't see an 'employee.' They see a 'service.'

This is the core of the ongoing battle in International Taxation: The characterization of seconded employees.

👉 𝗧𝗵𝗲 𝗖𝗼𝗻𝗳𝗹𝗶𝗰𝘁: 𝗘𝗺𝗽𝗹𝗼𝘆𝗺𝗲𝗻𝘁 𝘃𝘀. 𝗦𝗲𝗿𝘃𝗶𝗰𝗲

The Revenue's argument is simple: If the overseas entity retains the right to terminate or the 'lien' on employment, they are providing a service to the local entity.

Reimbursements are suddenly viewed as 'Fees for Technical Services' (FTS).

Withholding tax (TDS) obligations are triggered on the gross amount.

Potential 'Service PE' (Permanent Establishment) risks emerge.

GST/VAT exposures on the import of services.

👉 𝗪𝗵𝗮𝘁 𝘁𝗵𝗲 𝗖𝗼𝘂𝗿𝘁𝘀 𝗮𝗿𝗲 𝗦𝗮𝘆𝗶𝗻𝗴

Recent rulings, including the Delhi High Court's stance in the EY case, suggest that 'substance over form' is the new gold standard.