2015

European Union finance ministers failed to approve a compromise plan designed to take a two-stage approach toward amending the EU's interest and royalty payments tax legislation.
The failurewas due to insistence by Germany and France that the phase-in approachwould backtrack on commitments to stop base erosion and profit shifting by the Group of 20 countries.
For the BNA DTR story, go here. (subscription required)

European efforts to design a financial transactions tax for 11willing nations may come together soon, European Union Economic and Tax Commissioner Pierre Moscovici said.
"The number of options on the table has been significantly reduced and I expect that therewill be a political choice made in the comingweeks to lead us to a successful conclusion," Moscovici said in a June 19 statement to Bloomberg.
For the BNA DTR story, go here. (subscription required)

The National Foreign Trade Council, representing 250 major U.S. multinational companies, haswelcomed Treasury's decision not to join the focus group of 86 countries taskedwith developing a multilateral instrument under Action 15 of the international project to combat base erosion and profit shifting.

For the BNA DTR story, go here. (subscription required)

In news analysis, Marie Sapirie discusses the recent OECD release on country-by-country reporting and how it fitswith the trend toward more global transparency of tax information.
For the Tax Notes article, go here. (subscription required)

This edition of VAT News highlights the Advocate General's opinion on input tax deductibility for 'active' holding companies, the European Commission's proposed strategy for a digital single market in Europe, the introduction of VAT rules regarding the supply of digital/online services in Australia, the potential delay in the implementation of a GST system in India, and the upcoming key indirect tax changes in Puerto Rico.
For this issue of VAT News, go here.

In this interviewwith the Tax Foundation, Pam Olson discusses tax competition, the importance of a consensus on taxing jurisdiction in the international trading regime, multilateral cooperation and the BEPS project, challenges in determining value added on a geographic basis, andwhy the focus on profit shifting is misdirected.
For the interview, go here.

In this interviewwith the Tax Foundation, Tom Neubig shares his insights into the forefront ofwhat is known, in a quantitative sense, about profit shifting. Specifically, Mr. Neubig examines the current limitations to estimating the magnitude of profit shifting, the status quo of existing data sources used to measure profit shifting, key issues in determiningwhere value added occurs on a geographic basis, andwhy using descriptive statistics to infer profit shifting is problematic.
For the interview, go here.

Bermuda has attacked a tax haven list drawn up by Brussels as "unjustified and baseless", adding to criticism of the measure that forms part of the commission's latest effort to crack down on avoidance.

The commission published a list of the 30 countries most often dubbed uncooperative by member states lastweek. The list swiftly came under fire as arbitrary and unfair from tax campaigners and the Paris-based OECD, in charge of a global push to make countries exchange tax informationwith each other.

For the Financial Times story, go here.

Robert Robillard provides some observations on the key components of the public discussion draft "BEPS Action 8: Revisions to Chapter VIII of the Transfer Pricing Guidelines on Cost Contributions Agreements (CCAs),"whichwas released on April 29, 2015.
For the Tax Notes International viewpoint, go here. (subscription required)

Tim Davies and David Sayers note thatwhile the OECD'swork on county-by-country reporting is the third pillar in the standardized approach to transfer pricing documentation (after the master file and local file), it may pose compliance challenges for multinational businesses.
For the Tax Notes International article, go here. (subscription required)

Patrick Driessen identifies potential tax effects from the Trans-Pacific Partnership to highlight the link between aggressive upstream transfer pricing and downstream earnings stripping.
For the Tax Notes viewpoint, go here. (subscription required)

Philipwagman analyzes several technical questions concerning the U.K. diverted profits tax, aswell as some broader tax policy considerations.
For the Tax Notes special report, go here. (subscription required)

Whether a tax on deferred foreign earnings is mandatory or voluntary, or is a stand-alone measure or part of larger tax reform alters its revenue and incentive effects, the Joint Committee on Taxation said June 22.
For the TNT story, go here. (subscription required)

A one-time tax on repatriated, historic earnings is a more efficient revenue raiser than increasing the tax burden on future earnings, the Joint Committee on Taxation said.
"Reducing the tax burden on future earnings generally promotes economic efficiency since future earnings (in contrast to historic earnings) reflect decisions the taxpayer can still make, and a tax on those earnings may distort investment decisions," the JCT said in a report (JCX-96-15) released June 22.
For the JCT report, go here.

Taxpayers expressedwariness about a new proposal from the OECD to allow tax administrations to use ex post evidence to re-price transactions involving "hard-to-value" intangibles.
The comments from 42 stakeholders on the June 4 discussion draft covering hard-to-value intangibles, published by the Organization for Economic Cooperation and Development on June 19, included several proposals to limit the scope of ex post evidence re-evaluations.
For the BNA DTR story, go here. (subscription required)

Mylan NV,which moved its corporate address overseas this year to lower its U.S. taxes, is now asking the U.S. government for help fending off a hostile takeover.
So far, it's not getting an answer.

For the BNA DTR story, go here. (subscription required)

Mylan NV,which moved its corporate address overseas this year to lower its U.S. taxes, is now asking the U.S. government for help fending off a hostile takeover.
So far, it's not getting an answer.

For the BNA DTR story, go here. (subscription required)

The European Commission launched its much-anticipated Action Plan on Corporate Taxation yesterday, basing it on the idea of the Common Consolidated Corporate Tax Base as a 'holistic solution to corporate tax reform' and the principles of ensuring effective taxation and increasing transparency.
For the International Tax Review story, go here.

The European Commission on June 17, 2015, presented the Tax Transparency Package 2.0 (the Package),which sets out a new approach to business taxation. The Package's overall goals are to provide fairer and more efficient taxation and to effectively tackle corporate tax avoidance.
For the PwC Insight, go here.

The European Commission is taking aim at corporate tax avoidancein the EUwith a politically ambitious set of proposals it sayswould makeit tougher for multinational companies to take advantage oflegal loopholes.
For the Politico story, go here.

A report issued on June 17 by an organization critical ofwal-Mart Stores Inc. for setting up low-profile subsidiaries in tax havens to lower its global tax bill has some observers askingwhy the retailer should be attackedwhen it is doing nothing illegal.
For the TNT story, go here. (subscription required)

A European Parliament committee asked member state lawmakers June 17 to help get multinational enterprises to respond to questions about tax practices, saying that MNEswere lying if they refused to appearwhile publically agreeing to the need for tax policieswith greater transparency.
For theworldwide Tax Daily story, go here. (subscription required)

The European Commission has launched a public consultation onwhether companies' mandatory disclosure of more tax information could help combat tax avoidance and aggressive tax practices in the EU; responses are due September 9.
For theworldwide Tax Daily story, go here. (subscription required)

The European Commission on June 17 presented a comprehensive action plan to reform corporate taxation in the EU, including a second attempt at the controversial common consolidated corporate tax base proposal, in a move to address tax avoidance and promote fairness and efficiency.
For theworldwide Tax Daily story, go here. (subscription required)

Wal-Mart Stores Inc. owns more than $76 billion of assets through aweb of units in offshore tax havens around theworld, though youwouldn't know it from reading the giant retailer's annual report.

For the BNA DTR story, go here. (subscription required)

The European Commission has accused 30 countries from around theworld, including a host of European independent territories and Caribbean nations, of being "non-cooperative" tax havenswhere multinational companies can funnel money by using aggressive tax avoidance tactics.
At the same time, the European Commission launched a plan that could lead to legislation forcing multinational companies in all sectors to report how much tax they pay andwhere they pay it.
For the BNA DTR story, go here. (subscription required)

The European Commission unveiled a comprehensive plan to overhaul corporate tax legislation and ensure companies pay an appropriate level of tax in countrieswhere they make profits.

For the BNA DTR story, go here. (subscription required)

The 11 European nations seeking a financial transactions taxwill meet June 18 in Luxembourg in a bid to decide how to design the measure, according to European Union officials.

For the BNA DTR story, go here. (subscription required)

Reducing the debt bias in corporate taxation, combinedwith other tax reforms, could help restore the financial sector's health and promote long-term economic growthwhile also reducing inequality in OECD countries, according to a June 17 OECD report.
For the TNT story, go here. (subscription required)

Douglasw. O'Donnell, the IRS officialwho soonwill take the helm of the agency's Large Business & International Division, said a new, risk-based approach to auditing big companies is part of the division's increasing efforts to put multinational companies under the microscope.

For the BNA DTR story, go here. (subscription required)

Douglasw. O'Donnell, deputy commissioner (International)with the Large Business and International division of the Internal Revenue Service,will step up to lead the division effective July 10.
Hewill replace outgoing division commissioner Heather C. Maloy,who is leaving the IRS after six years of service, the agency said June 17. During her tenure, Maloy oversaw massive and sometimes contentious changeswithin the division.
O'Donnell comes to the job at an equally tumultuous time, as the IRS struggles to keep pacewith rapidly unfolding developments in the international tax arena driven by the Organization for Economic Cooperation and Development's project to combat base erosion and profit shifting (BEPS). FATCA and BEPS have cranked up theworkload at a timewhen Congress has repeatedly cut the agency's budget.
For the BNA DTR story, go here. (subscription required)

The European Commission presented today an Action Plan to fundamentally reform corporate taxation in the EU. The Action Plan sets out a series of initiatives to tackle tax avoidance, secure sustainable revenues and strengthen the Single Market for businesses.

For the OECD release, go here.

In a further move to make tax systems fairer, more efficient, growth-friendly and transparent, the Commission presented an Action Plan to fundamentally reform corporate taxation in the EU and published a "Top 30" list of tax havens across theworld.
For the European Commission release, go here.

A group of US-listed companies have become the first multinationals towarn investors they could be hit by the UK's new "diverted profits tax".

The technology, luxury goods and insurance groups are the first ofwhat are likely to be dozens of companies to report on their potential exposure to the new levy ÔøΩ dubbed the "Google tax" ÔøΩwhich came into force in April.

For the Financial Times story, go here.

One of Europe's largest companies haswarned that tensions over a planned crackdown on corporate tax avoidance pose a threat to global trade.

Simon Henry, finance chief of Royal Dutch Shell, called for urgent action by political leaders to avoid the fragmentation of global tax rules thatwould lead to uncertainty and double taxation for business.

For the Financial Times story, go here.

Guidance on corporate inversions should be among the IRS's top priorities, the American Bar Association Section of Taxation said.
The section urged the Internal Revenue Service to include regulations on inversions under tax code Section 7874 on its 2015-2016 priority guidance plan. In a letter covering a range of recommendations, the tax section said regulations should address Notice 2014-52,which the IRS issued to curb the cross-border deals in September.
For the BNA DTR story, go here. (subscription required)

Sometimes the news isn'twhat you see - it'swhat you don't see. In this case, the news is two companies that you don't see in the newest iteration of the Fortune 500: Medtronic and Mylan. That's because to its credit, Fortune kicked Medtronic and Mylan off its prestigious list for deserting our country by moving their domicile out of the United States for tax purposeswhile continuing to be run from here.
For thewashington Post story, go here.

Kathryn Horton O'Brien, Nick Raby, Elizabeth A. Sweigart, and Pete Calleja identify the challenges that oil and gas companies soon may face as a result of the OECD's base erosion and profit-shifting project.
For theworldwide Tax Daily story, go here. (subscription required)

Daniel Halperin suggests a new approach to fairness to passthroughs based on his analysis in 2010 that described the actual benefit of reducing corporate rates.
For the Tax Notes viewpoint, go here.

Houseways and Means Chair Paul Ryan, R-Wis., said June 16 that tax issues that Congresswill likely be spending time on for the rest of the year are international tax reform and extenders.
For the TNT story, go here. (subscription required)

The European Commissionwill unveil its latest effort to tackle corporate tax evasionwhen it relaunches legislation for a common, consolidated, corporate tax base (CCCTB).
For the BNA DTR story, go here. (subscription required)

A corporate tax rate cut is looking less and less likely to be on House Republicans' agenda this year. Instead, they're focusing on reviving lapsed breaks and making changes to the international tax system.

For the BNA DTR story, go here. (subscription required)

A report released today by Americans for Tax Fairness (ATF) unveils thatwalmart has built a vast, undisclosedweb of 78 subsidiaries and branches
in 15 offshore tax havens,which may be used to minimize foreign taxeswhere it has retail operations and to avoid U.S. taxes on those foreign earnings.
For the ATF press release and report, go here.

Amanda Athanasiou examines how tax policy and corporate governance drive companies' decisions to invert.

For the Tax Notes International article, go here. (subscription required)

Mindy Herzfeld discusses the OECD's recent release on country-by-country reporting and notes that its implementation might be more difficult than it seems, particularly in the United States.
For the Tax Notes International article, go here. (subscription required)

Tom O'Shea reviews Commission v. United Kingdom (Attribution of Gains) (C-112/14), inwhich the European Commission successfully challenged U.K. tax rules that attributed gains made by nonresident close companies to their U.K. resident shareholders on the grounds that such ruleswere incompatiblewith the free movement of capital.
For the Tax Notes International article, go here. (subscription required)

Arturo Tiburcio examines the OECD's VAT/goods and services tax guidelines and concludes thatwhile they are a valuable resource, Mexican tax authorities are not entitled to determine a taxpayer's situation based on the guidelines, and Mexican federal courtswill not take them into account to resolve tax disputes.
For the Tax Notes International article, go here. (subscription required)

Global companies increasingly areworried that the international action plan to fight base erosion and profit shifting isn't taking their concerns seriously, according to a major business association's report.
The Organization for Economic Cooperation and Development currently iswrapping up its 15-item action plan to combat BEPS,which it has beenworking on for two years under a mandate from the Group of 20 countries.
For the BNA DTR story, go here. (subscription required)

The renegotiated tax treaty between South Africa and Mauritius is expected to enter into force and take effect on January 1, 2016. The changes from the current treaty reflected in the new treaty are not significant for South African companies using Mauritius as a gateway for foreign investments.

The changes, however, make Mauritius less attractive as a portal for investment into South Africa, because the new treaty no longerwill provide complete protection against South African interest and royaltywithholding taxes and against capital gains tax (CGT) on the disposal of shares in a company owning South African immovable property.

For the PwC Insight, go here.

US companies have regained their appetite for controversial foreign takeovers that allow them to move overseas and escape US taxes, in spite of awhite House crackdown to restrict so-called tax inversions last year.
For the Financial Times story, go here.