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Amazon’s Win in $303 Million Tax Fight With EU

By Hamza Ali and Isabel Gottlieb

Amazon.com Inc. has won the latest stage in a legal battle with the EU over whether it was given 250 million euros ($303 million) of illegal subsidies by the Luxembourg authorities through a tax ruling. Wednesday’s judgment—issued by the European Union’s second-highest court—is another loss for the European Commission’s years-long effort to clamp down on past transfer pricing practices—how companies value intercompany transfers— multinational companies have used in Europe.

The Robotic Revolution: A Tax Policy Collision Course

By Kathryn Kisska-Schulze and Rodney P. Mock 

Media projections depict that robotics, process automation, and artificial intelligence threaten human workforce sustainability. Two oft cited studies forecast that technological innovation could jeopardize more than one third of the U.S. workforce. Nevertheless, the author concludes that Congress should not impose a robot tax. This Article is the first to conduct a significant literature review of the current proposals to tax robots, ultimately taking a contrarian view. It examines mankind’s historical connection to labor amid fears of automation substitution and proposes that implementing fear based tax policy based on job displacement projections is unsound 

Foreign Tax Credit ‘Haircut’ Maintained Under Biden GILTI Reforms

By: Wesley Elmore

The Biden administration’s proposed reforms of the global intangible low-taxed income provisions retain the 20 percent foreign tax credit “haircut” that exists under current law, according to a top Treasury official. The administration’s GILTI proposals build on the current structure, including that haircut, Kimberly Clausing, Treasury deputy assistant secretary for tax analysis, said May 13.