In this episode of Taxed Out, Vanja Podinic and Colin Little explore why data centre arrangements are attracting intensive and coordinated scrutiny across jurisdictions. They discuss the rise of whole-of-code reviews blending permenant establishment (PE), transfer pricing, intangible licensing and anti-avoidance, and how digitalised business models challenge traditional concepts like “fixed place of business”.

The conversation highlights the pressure points and divergent international approaches and practical takeaways. To hear future episodes of Taxed Out, subscribe via your preferred podcast platform or visit ashurst.com/podcasts.

The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to. Listeners should take legal advice before applying it to specific issues or transactions.

In this episode of Taxed Out, <a href="https://www.ashurst.com/en/people/vanja-podinic/">Vanja Podinic</a> and <a href="https://www.ashurst.com/en/people/colin-little/">Colin Little</a> explore why data centre arrangements are attracting intensive and coordinated scrutiny across jurisdictions. They discuss the rise of whole-of-code reviews blending permenant establishment (PE), transfer pricing, intangible licensing and anti-avoidance, and how digitalised business models challenge traditional concepts like &ldquo;fixed place of business&rdquo;.
The conversation highlights the pressure points and divergent international approaches and practical takeaways. To hear future episodes of Taxed Out, subscribe via your preferred podcast platform or visit ashurst.com/podcasts.
The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to. Listeners should take legal advice before applying it to specific issues or transactions.

The commercial world is always changing and the legal landscape never stands still. Keeping pace with all those changes, and knowing how they affect your organisation, is a big responsibility and a challenging task. Ashurst Legal Outlook will keep you at the forefront of the most pressing legal issues, offering insights from legal experts across our international network.

The commercial world is always changing and the legal landscape never stands still. Keeping pace with all those changes, and knowing how they affect your organisation, is a big responsibility and a challenging task. Ashurst Legal Outlook will keep you at the forefront of the most pressing legal issues, offering insights from legal experts across our international network.

A podcast series that will keep you across the global trends and local issues that are shaping the legal landscape and impacting organisations.

Ashurst Legal Outlook Podcast

Ashurst Legal Outlook

Data centres sit at the intersection of permanent establishment risk, transfer pricing, DEMPE, intangibles and withholding tax. 

Taxed Out: How and why data centres are becoming a global tax flashpoint 

Our continuing series takes an unflinching look at a vexed issue: how much water is required to keep the world’s data centres running. To illustrate this, we put the UK in the spotlight to consider the nation’s rules, regulations, and innovations designed to minimise water consumption in future.

In this episode, finance partner Ruth Harris tackles data centres’ water usage with real estate partners Alex Peace (in Australia) and Charlie Reid (in the UK). Together, the Ashurst colleagues reflect on current and forecast demands for water – and the responses from government, communities, investors, water companies and the industry itself.

In this revealing discussion, Charlie outlines the planning framework in the UK, where data centres have been designated critical national infrastructure which – on the surface – appears to create tension between the nation’s economic and environmental ambitions. He explains how environmental impact assessments are increasingly at the frontier of data centre development and notes a recent legal challenge centred on an inadequate water and energy consumption assessment.

However, the trio also discuss how modern facilities using circular water systems can consume dramatically less water than older data centres. They consider the need for standardised metrics to measure and report on facilities’ water usage effectiveness. And they consider how water companies could be part of the solution.

To listen to this and subscribe to future episodes about data centres, search for “Ashurst Legal Outlook” on Apple Podcasts, Spotify or your favourite podcast player. To listen to a recent episode dedicated to water usage in Australian data centres visit this web page. To read Ashurst’s regular article series on data centres, visit this web page. To find out more about the full range of Ashurst podcasts, visit ashurst.com/podcasts.

The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to. Listeners should take legal advice before applying it to specific issues or transactions.

Our continuing series takes an unflinching look at a vexed issue: how much water is required to keep the world&rsquo;s data centres running. To illustrate this, we put the UK in the spotlight to consider the nation&rsquo;s rules, regulations, and innovations designed to minimise water consumption in future.
In this episode, finance partner <a href="https://www.ashurst.com/en/people/ruth-harris/">Ruth Harris</a> tackles data centres&rsquo; water usage with real estate partners <a href="https://www.ashurst.com/en/people/alexandra-peace/">Alex Peace</a> (in Australia) and <a href="https://www.ashurst.com/en/people/charles-reid/">Charlie Reid</a> (in the UK). Together, the Ashurst colleagues reflect on current and forecast demands for water &ndash; and the responses from government, communities, investors, water companies and the industry itself.
In this revealing discussion, Charlie outlines the planning framework in the UK, where data centres have been designated critical national infrastructure which &ndash; on the surface &ndash; appears to create tension between the nation&rsquo;s economic and environmental ambitions. He explains how environmental impact assessments are increasingly at the frontier of data centre development and notes a recent legal challenge centred on an inadequate water and energy consumption assessment.
However, the trio also discuss how modern facilities using circular water systems can consume dramatically less water than older data centres. They consider the need for standardised metrics to measure and report on facilities&rsquo; water usage effectiveness. And they consider how water companies could be part of the solution.
To listen to this and subscribe to future episodes about data centres, search for &ldquo;Ashurst Legal Outlook&rdquo; on Apple Podcasts, Spotify or your favourite podcast player. To listen to a recent episode dedicated to water usage in Australian data centres <a href="https://www.ashurst.com/en/podcasts/legal-outlook-podcasts/legal-outlook-data-centres-here-today-here-tomorrow-waters-evolving-role-in-australias-data-centre/">visit this web page</a>. To read Ashurst&rsquo;s regular article series on data centres, <a href="https://www.ashurst.com/en/insights/data-centres-article-series/">visit this web page</a>. To find out more about the full range of Ashurst podcasts, visit <a href="https://www.ashurst.com/podcasts">ashurst.com/podcasts</a>.
The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to. Listeners should take legal advice before applying it to specific issues or transactions.

Our continuing series takes an unflinching look at a vexed issue: how much water is required to keep the world’s data centres running. To illustrate this, we put the UK in the spotlight to consider the nation’s rules, regulations, and innovations designed to minimise water consumption in future.

Data centres – here today, here tomorrow: Water consumption

Chapter 1: Introduction to Art Capital

Chapter 2: Evolution of Back Leverage 

Beyond Back Leverage – Structured Leverage 

Chapter 3: What is Back Leverage? 

Chapter 5: Is it Back Leverage?  

Chapter 6: Underlying credit types and assets

 Why use or provide Structured Leverage? 

Chapter 8: Format – who decides? 

Chapter 9: What if it is a securitisation? 

Some key features of Structured Leverage 

Chapter 11: Coming up next time 

Europe’s back leverage market has swelled recently. In this episode we consider the limitations of the label “back leverage”, explain what it covers, why it matters, and where it’s headed. We also offer several practical pointers for structuring transactions effectively.

Back leverage in European real estate finance has grown rapidly. It attracts serious capital – but remains notoriously difficult to define. It goes by pseudonyms such as debt-to-debt or loan-on-loan but nothing quite captures what this market has become.

In this episode, Ashurst partner Ruth Harris is joined by special guest AJ Storton, a partner at Art Capital, to get into the nitty gritty and the bigger picture. They explain exactly what back leverage is and explain why “structured leverage” might be a more useful term.

They also discuss the motivations on each side of the trade (users and providers) and the documentation questions that determine how a transaction is actually structured. There’s also a handy summary of securitisation compliance obligations, and  crucially – the “top 10” structural features that any party to these transactions needs to nail.

To listen to this search for “Ashurst Legal Outlook” on Apple Podcasts, Spotify or your favourite podcast player. You can also find out more about the full range of Ashurst podcasts at ashurst.com/podcasts.

The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to. Listeners should take legal advice before applying it to specific issues or transactions.

Europe&rsquo;s back leverage market has swelled recently. In this episode we consider the limitations of the label &ldquo;back leverage&rdquo;, explain what it covers, why it matters, and where it&rsquo;s headed. We also offer several practical pointers for structuring transactions effectively.
Back leverage in European real estate finance has grown rapidly. It attracts serious capital &ndash; but remains notoriously difficult to define. It goes by pseudonyms such as debt-to-debt or loan-on-loan but nothing quite captures what this market has become.
In this episode, <a href="https://www.ashurst.com/en/people/ruth-harris/">Ashurst partner Ruth Harris</a> is joined by special guest <a href="https://art-capital.co.uk/who-we-are/">AJ Storton, a partner at Art Capital</a>, to get into the nitty gritty and the bigger picture. They explain exactly what back leverage is and explain why &ldquo;structured leverage&rdquo; might be a more useful term.
They also discuss the motivations on each side of the trade (users and providers) and the documentation questions that determine how a transaction is actually structured. There&rsquo;s also a handy summary of securitisation compliance obligations, and&nbsp; crucially &ndash; the &ldquo;top 10&rdquo; structural features that any party to these transactions needs to nail.
To listen to this search for &ldquo;Ashurst Legal Outlook&rdquo; on Apple Podcasts, Spotify or your favourite podcast player. You can also find out more about the full range of Ashurst podcasts at <a href="https://www.ashurst.com/podcasts">ashurst.com/podcasts</a>.
The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to. Listeners should take legal advice before applying it to specific issues or transactions.

Europe’s back leverage market has swelled recently. In this episode we consider the limitations of the label “back leverage”, explain what it covers, why it matters, and where it’s headed. We also offer several practical pointers for structuring transactions effectively.

Inside Structured Leverage: The Artist formerly known as Back Leverage

In this episode of Taxed Out, Tax Controversy Partners Vanja Podinic and Colin Little examine YTL and Newmont, the first major Federal Court tests of Division 855 and the principal asset test. Both cases reject the Commissioner’s push for an expansive, physical reading of “real property”, confirming instead that the definition turns on technical legal estates, statutory severance rules and the underlying rights actually held.

Vanja and Colin walk through the implications for investors disposing of infrastructure and mining interests, explaining why leases, transmission assets, plant and equipment, and mining tenements must all be analysed through a property-law lens rather than a physical-asset one. They also outline the Courts’ guidance on valuing synergistic asset bundles and allocating value between TARP and non-TARP assets.

The decisions highlight the need for meticulous evidence gathering, careful classification of rights, and interdisciplinary support from property, planning and infrastructure specialists. For investors, the message is clear: understanding the legal character of land-related rights is now essential to navigating Australian CGT rules.

The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to. Listeners should take legal advice before applying it to specific issues or transactions.

In this episode of Taxed Out, Tax Controversy Partners <a href="https://www.ashurst.com/en/people/vanja-podinic/">Vanja Podinic</a> and <a href="https://www.ashurst.com/en/people/colin-little/">Colin Little</a> examine YTL and Newmont, the first major Federal Court tests of Division 855 and the principal asset test. Both cases reject the Commissioner&rsquo;s push for an expansive, physical reading of &ldquo;real property&rdquo;, confirming instead that the definition turns on technical legal estates, statutory severance rules and the underlying rights actually held.
Vanja and Colin walk through the implications for investors disposing of infrastructure and mining interests, explaining why leases, transmission assets, plant and equipment, and mining tenements must all be analysed through a property-law lens rather than a physical-asset one. They also outline the Courts&rsquo; guidance on valuing synergistic asset bundles and allocating value between TARP and non-TARP assets.
The decisions highlight the need for meticulous evidence gathering, careful classification of rights, and interdisciplinary support from property, planning and infrastructure specialists. For investors, the message is clear: understanding the legal character of land-related rights is now essential to navigating Australian CGT rules.
The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to. Listeners should take legal advice before applying it to specific issues or transactions.

Last year, two Division 855 decisions reshaped the meaning of “real property” for CGT purposes, narrowing the Commissioner’s reach and raising the stakes for infrastructure and resources deals. 

Taxed Out: How and why data centres are becoming a global tax flashpoint

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