Int'l Tax News

Robert Goulder questions the linkage between the European Commission's state aid case against Apple and the OECD's project on the digital economy.

Multinational enterprises (MNEs) that are struggling to decipher Kenya's vague digital services tax (DST) legislation may decide to exit the country instead of risking non-compliance

The core of the EUGeneral Court's recentAppledecision may be state aid, but it could raise stakes as countries aim for agreement on global corporate tax reform for the digital age.

PhilippinePresident Rodrigo Dutertehas called onCongressto pass legislation cutting the corporate income tax rate from 30 percent to 25 percent and extending the loss carryover period for most taxpayers to five years.

In this article, the author discusses theGeneral Court of the European Union's judgment in theApplestate aid case and its potential impact on how theEUaddresses state aid and tax abuse.

In this article, the author argues that theOECD's two-pillar approach to digital taxationwould prove harmful to the Swedish economy and therefore the country should build support for an OECD-approved digital services tax thatwould sunset once an appropriate multilateral solution is developed.

Members of theEuropean Parliamentare threatening to reject the 2021-2027 EU budget if member states don't make a clear commitment to introducing new EU-wide taxes to finance it.

The Tax Cuts and Jobs Act's amendments to the definition of intangible property and codification of the aggregation and realistic alternative principles may discourage taxpayers' use of cost-sharing arrangements in the future.

The U.K digital services tax has become law, setting the stage for escalating tradewar tensions between the United Kingdom and the United States,which is investigatingwhether the tax discriminates against American business interests.

TheOECDhas made good progress on designing a global tax reform plan, but stakeholders may need to be realistic about the prospect of countries agreeing on that plan by year-end, officials said.

In this article, the author discusses theOECD's two-pillar approach to taxing the digital economy. He focuses on the narrative of "pillar-building" in international tax policy and the difference between building consensus and manufacturing consent.

Treasury's decision to base its substantiation requirements for some foreign-derived intangible income transactions on those of two other tax code provisions may lead to taxpayers questioning the authority uponwhich it rests.

In this two-part article, the author updates his examination of the initialOECDbase erosion and profit-shifting project, and he considers the process and potential success of BEPS 2.0. This first installment examines the origin of the BEPS project, its objectives, and how it may proceed in the future. The second installmentwill focus on BEPS 2.0.

The European Commission recommended Tuesday that financial support for companies in the future be contingent on their not making use of countries on the European Union's so-called tax haven blacklist.

The OECD's two-pillar proposal to address the tax challenges of the digitalized economy are technically different, but it is unlikely that one pillarwould be adoptedwithout the other, according to the OECD's Pascal Saint-Amans.

By: Joshwhite & Mattias Cruz Cano

Businesses are finding it difficult to dealwith transfer pricing (TP) data and how to apply an arm's length analysis in a global economy that looked completely different just six months ago.

The European Union (EU) has released a three-pillar approach for fair and simple taxation that includes a 25-point action plan, a seventh iteration of the Directive on Administrative Cooperation (DAC7), and a good tax governance initiative.

Mindy Herzfeld describes the varying opinions onwhat constitutes fair digital taxation, saying most observers agree that current international tax rules don't properly reflect the realities of today's economy and modes of doing business.

TheOECD's base erosion and profit-shifting initiatives and international tax changes may affect Irish corporate tax revenue over the medium term by more than the ÔøΩ2 billion previously estimated by Ireland'sDepartment of Finance.

TheIndonesian governmentintends to implement an electronic transaction tax thatwould take into account consensus on a global approach to modernize corporate tax rules, and remains "open to dialogue" about its plans.

Work on global tax reform has advanced to the point that blueprints may be ready by October, setting the stage for agreement after the U.S. election, possibly in 2021, theOECD's tax chief said.

The U.S.will slap extra 25 percent tariffs on $1.3 billionworth of French goods, including handbags and cosmetics, in retaliation against France's digital services taxÔøΩ but those dutieswill be suspended until January 2021.

Treasuryand theIRShave significantly altered the documentation rules for the foreign-derived intangible income provision in their final regs, relaxing them in some circumstances.

In this article, the authors examine the key elements of theOECD's proposed two-pillar approach to taxing the digital economy from the perspective of African countries.

The EU is committed toworkingwith theOECDto address the issue of digital taxation, according to theEU Council's draft terms of reference for the July 18G-20meeting.

Aggregated data collected by the OECD that cover almost 4,000 multinationals' country-by-country report filings suggest that the base erosion and profit-shifting project hasn't yet achieved its goal of aligning profitwith value creation.

NewOECDmodel rules for requiring platform operators likeUberandAirbnbto report data on their sellers to tax administrations contemplate automatic information exchange and implications for indirect and other taxes.

Companies that have been exempt under the digital services tax models of theEUand France could find themselves liable under expanded DST regimes being considered by other countries in response to the COVID-19 pandemic.

The House of Commons, the lower house ofthe U.K. Parliament, has passed legislation for a controversial digital services tax, bringing it one step closer to becoming law.

Mindy Herzfeld looks at potential problemswith OECD pillar 2 arising from differences between financial account and tax system goals in building a global minimum tax base and the separate problem that arises in trying to reconcile these differences.

The cost of the coronavirus crisis means governmentswant to reduce tax avoidance by business.

Paschal Donohoe, Ireland's finance minister, haswarned the EU against giving up on a global initiative to extract more tax from digital companies as he makes his pitch to lead the group of eurozone finance ministers.

The OECD should be able to unveil a solution in October on new digital taxation rules, showing that jurisdictions are close to an agreement despite recent hiccups.

Some cash-strapped tax administrations are choosing to close audits and settle disputes instead of pursuing court battles, suggesting that collaborationwill trump confrontation post-pandemic.

India's decision to expand the scope of the equalisation levy risks chasing away multinational enterprises (MNEs) at a timewhen the country is trying to revive the crisis-stricken economy.

The economic fallout from the novel coronavirus pandemic is likely to reverberate for years, shifting the international tax landscape as U.S. companies grapplewith losses, legislation and other factors that could complicate planning, including intellectual property placement.

The finance ministers of four European countries havewritten to the U.S. Treasury secretary, saying that threats by the U.S. to impose tariffs in response to national tax policies of other countries may affect future relationshipwith European countries.

As countries provide incentives to attract foreign investment, the OECD may have to readdress the BEPS framework in the post-COVID future.

Transitioning from the arm's-length principle (ALP) to formulary apportionment could mean fewer risks for taxpayers, but businesses should consider insuring transfer pricing (TP) risks during the transition.

Countries should build on the multilateral cooperation that made automatic information exchange possible in order to reach agreement on global corporate tax reform, theOECD's secretary-general told delegates at a key meeting.

U.K. lawmakers have proposed several measures to ensure more digital services tax transparency, such as requiring in-scope companies to publish group tax strategies containing country-by-country data.

If countries can't agree on a common approach to taxing the digital economy, then don't count on theworld to return to the status quo, EU andOECDofficials said.

Countriesworking on an international solution to taxing the digital economy may bewilling towait for the outcome of the U.S. election as they continue talks on a global tax deal, theOECD's tax chief said.

Robert Goulder examines the U.S.withdrawal from the OECD inclusive framework and possible next steps for the European digital services tax.

Major business groups again voiced support for OECD-led talks on a global corporate tax reform deal, calling on governments, including the United States, to stay at the negotiating table and quickly reach an agreement.

The Organization for Economic Cooperation and Development (OECD) has asked companies and trade associations to comment on the transfer pricing issues they've experienced because of COVID-19.

James Karanja, head of the Tax Inspectorswithout Borders (TIWB) Secretariat, tells ITR how multinational enterprises (MNEs) need to adapt as tax administrations gain auditing skills through TIWB initiatives.

International Commission for the Reform of International Corporate Taxation's (ICRICT) Joseph Stiglitz has reemphasized the need for global tax reforms after the US pulled out of digital tax negotiationswith the OECD.

In this article, the authors address the implications of the coronavirus pandemic for the arm's-length principle in the context of theOECD's inclusive framework.

The United States' decision to pull out of international negotiations on taxation of the digital economy has been metwith dismay fromEuropeanfinance ministers.