2016

Posted on

Courts Likely to OK Debt-Equity Rules: IRS Attorney

Controversial earnings-stripping rules should survive the lawsuits that are almost certain to be filed under the Administrative Procedure Act, a top IRS official said.

To read more go here Subscription Required

Posted on

U.S. Will Continue Advocating in EU State Aid Cases

The Treasury Departmentwill continue to argue vigorously that the European Commission's state aid investigations, including the probe into Apple's tax structure, are a massive mistake.

To read more go here Subscription Required

Posted on

Flawed System Contributes to U.S. Multinationals' Tax Woes

Tax authorities around theworldwill continue targeting U.S. multinationals as long as the corporate tax system permits indefinite deferral of tax on their foreign earnings, according to Robert Stack, Treasury deputy assistant secretary (international tax affairs).

To read more go here Subscription Required

Posted on

News Analysis: The Backlash Against Tax Treaties and Free Trade

While bilateral tax treaties have long served as the building blocks of the international tax system, doubts are being raised about their value, particularly for developing countries. Some in academia and the nonprofitworld (aswell as organizations like the IMF and theworld Bank) are urging developing countries to reconsider the value of entering into bilateral tax agreements, arguing that they give away more than they getwhen they enter into a tax treatywith a developed country.

To read more go here Subscription Required

Posted on

U.N. to Revise Model Double Tax Convention Between Developing and Developed Countries

The United Nations has published a proposed version of revisions to its Model Double Tax Convention Between Developed and Developing Countries that are intended to bring it in linewith the OECD's base erosion and profit-shifting project's recommendations. The modelwas last revised in 2011.
For thewWTD story, gohere. (subscription required)
To read more go here Subscription Required

Posted on

Country-by-Country Data Under Microscope: IRS

The IRS has a message for taxpayers giving data to the U.S. and to other jurisdictions under the country-by-country reporting regime: Be consistent and be careful.

To read more go here Subscription Required

Posted on

Poland planning significant VAT changes in 2017

Serious amendments to Poland's VAT Law are likely to be implemented on January 1 2017. The modifications are mostly aimed at preventing tax fraud and increasing tax collection.

To read more go here

Posted on

VAT omitted from Finland's banking services to corporates

Posted on

EU Proposes Plans to Resolve 900 Double Tax Disputes

The European Commission has put forward binding measures using national courts and quicker time frames to finally resolve 900 outstanding cases of double taxationworth more than $10 billion in the European Union, alongwith changes targeting tax avoidance involving hybrid mismatches.

To read more go here

Posted on

Would a Territorial Tax System Squeeze IRS Coffers?

If U.S.-based multinational companies didn't have to pay any U.S. tax on profits earned in other countries ÔøΩ as some current proposals advocate ÔøΩ how much incomewould such firms shift outside the United States?
Not nearly as much as you might think, according to new research.
For the CFO story, gohere.
To read more go here

Posted on

Here's Why America Is Becoming a Worse Place to Do Business

In the past year, it's gotten easy to start and run a business in a record 137 countries.
The United States, however,wasn't one of them. Onwednesday, theworld Bank released its annual Ease of Doing Business report. This year America fell in the rankingsÔøΩone slotÔøΩagain.

To read more go here

Posted on

Tax Reform Could Lead to More Profit Shifting by Multinationals

Multinational corporations could end up shifting even more of their income to low-tax countries under some tax reform proposals, according to a new study.
To read more go here

Posted on

Some Banks Still at Risk Under Debt-Equity Rules

The financial industry isn't entirely free and clear under final earnings-stripping rules despitewelcome major exceptions, tax practitioners and others said.
Carve-outs in the final rules (T.D. 9790) for regulated financial companies and regulated groups are reasons for great relief compared to the controversial proposed regulations, they said, but closer examination is needed as the industry begins toworkwith the final rules in real life.

To read more go here Subscription Required

Posted on

Foreign-Owned U.S. Companies Continue to Increase: IRS Data

Foreign ownership of U.S.-based companies continues to rise despite higher-than-average corporate tax rates, indicating that international investors view the U.S. as a stable market.

To read more go here Subscription Required

Posted on

Swiss Federal Council Touts Corporate Tax Reforms Before Referendum

The Swiss Federal Council on October 27 laid out its reasons forwhy awide-ranging package of corporate tax reforms passed by the Federal Assembly in June should be approved in a referendum to be held early next year.

To read more go here Subscription Required

Posted on

EU's Moscovici Releases CCCTB Plan to Mixed Reviews

EU Tax Commissioner Pierre Moscovici on October 26 officially introduced to the European Parliament his two-step plan to implement a common consolidated corporate tax base (CCCTB) for the EU single market.

To read more go here Subscription Required

Posted on

France Can't Subject Cross-Border Mergers to More Conditions Than Domestic Mergers, AG Says

French legislation requiring a taxpayer to show that cross-border mergers aren't for the purposes of avoiding tax before it can use the common system of taxation should be found to violate EU lawwhen domestic mergers are not subject to the same requirement, Advocate General Melchiorwathelet recommended.

To read more go here Subscription Required

Posted on

AG Upholds Belgium's Withholding Tax on Profits Sent to Dutch Parent

by J.P. Finet (Tax Notes)
Belgium'swithholding tax on profits distributed to a parent company in the Netherlands,where the collective investment undertaking (CIU) pays zero corporation tax, isn't barred by EU law because the profits should be treated as exempt and therefore outside the scope of rules barring restrictive tax provisions, Advocate General Manuel Campos Sánchez-Bordona recommended.

To read more go here Subscription Required

Posted on

Hong Kong Proposes to Codify BEPS Standards, Enhance Double Tax Safeguards

To provide certainty and limit the risk of double taxation, codifying the OECD's minimum standards and transfer pricing guidance should be accompanied by an expanded foreign tax credit and statutory advance pricing agreement and dispute resolution procedures, according to new proposals issued by the government of Hong Kong.

To read more go here Subscription Required

Posted on

South Africa to hike taxes over next two years

South African Finance Minister Pravin Gordhan said the governmentwill raise an additional $3.1 million through tax measures over the next two years,with several changes thatwill have a significant impact on domestic and foreign businesses operating in the country.

To read more go here

Posted on

Malta: Release of the 2017 budget

The main theme of the Malta's 2017 budget, from a commercial perspective, is to incentivise the markets, boost business creation and attract foreign direct investment. At the core of the budget document are a number of tax measures and incentives.

To read more go here

Posted on

Chile: Tax treatment for cloud computing services provided without a license

In June 2016, the Chilean tax authority (IRS) issued a private ruling for the first time regarding payments for the provision of cloud computing services that are not offered by granting a license.

To read more go here

Posted on

IKEA Handel og Eiendom loses Supreme Court of Norway tax case

  • By ITR Correspondent

IKEA has lost an important tax battle that could have implications for other multinationals deducting interest on inter-company debt.

To read more go here

Posted on

Build, buy or outsource: Managing withholding tax reclamation

  • By Contributed

Some investors and advisers still believe that the globalwithholding tax reclamation process is so complex and labour-intensive that it outweighs the advantages, but this is simply not true. Bill Salva, global business development manager at Goal Group looks at the options for reclaimingwithholding tax.

To read more go here

Posted on

MEPs welcome Commissions corporate tax proposals

  • By European Parliament

MEPswelcomed the EU Commission proposal for a common consolidated corporate tax base (CCCTB) in a debatewith Commissioner Pierre Moscovici on Tuesday evening.

To read more go here

Posted on

U.S. Companies Still at Risk of Debt-Equity Loan Recasts

U.S. multinationals aren't home freewhen it comes to having loans recast as equity under final earnings-stripping rules (T.D. 9790), despite major rollbacks, practitioners said.

To read more go here Subscription Required

Posted on

European Commission's Proposed CCCTB Seeks Common Tax Base First

To prevent its proposals for a "one-stop shop" and formulary apportionment systemwithin the EU from delaying progress on tax base harmonization, the European Commission has issued its proposals for a common consolidated corporate tax base (CCCTB) in the form of two separate directives, according to a commission announcement.

To read more go here Subscription Required

Posted on

French National Assembly Approves Tax-Slashing Budget Measures

Companieswith turnover below ÔøΩ50 millionwould pay 15 percent corporate tax as of 2019, and other companieswould see their rate reduced to 28 percent by 2020 under budget proposals passed by the French National Assembly, according to local news sources. The budget also contains a 50 percent increase in the financial transaction tax (FTT) and about ÔøΩ1 billion in tax cuts for middle-income households.

To read more go here Subscription Required

Posted on

EU relaunches ambitious corporate tax reform

  • By Channel NewsAsia
The European Commission on Tuesday (Oct 25) relaunched an ambitious corporate tax reform package it sayswill boost the economy and reduce abuses after a series of high-profile tax cheating scandals sparked public uproar.

To read more go here

Posted on

Slashed Corporate Rate Could Push U.K. Onto EU Blacklist

The U.K. may end up on the European Union's blacklist of tax havens if it slashes its corporation tax by half the current rate to 10 percent, according to senior tax industry figures.

To read more go here

Posted on

Colombia: Proposal for major tax reform

  • By KPMG
The government of Colombia on 19 October 2016 presented to Congress a bill thatwould introduce tax reform changes that are intended to balance the budget and preserve the country´s BBB investment-grade credit rating.

To read more go here

Posted on

Apple Decision Seen as Highlighting Failures of Multiple Players

The real non-actor in the European Commission's state aid decisions is Congress, but judging from the Apple decision, none of the players seems to have done its job, according to H. David Rosenbloom of Caplin & Drysdale Chtd.

To read more go here Subscription Required

Posted on

Iceland Limits Interest Expense Deduction, Introduces CbC Reporting

The Icelandic Parliament has enacted legislation restricting the interest expense deduction and introducing country-by-country reporting requirements to bring domestic regulations in linewith actions 4 and 13 of the OECD's base erosion and profit-shifting project.

To read more go here Subscription Required

Posted on

Indian Tribunal Allows APA as Additional Evidence for Determining Arm's-Length Price

The Chennai Income Tax Appellate Tribunal allowed the admission of additional evidence in the form of an advance pricing agreement because it found that the APA has considerable bearing on the years under appeal and thus must be given due considerationwhen determining the arm's-length price of the intercompany transactions.
To read more go here Subscription Required

Posted on

The Interplay Between Subpart F and the Effectively Connected Income Rules

Lowell D. Yoder of McDermottwill & Emery examines an exclusion from Subpart F income that applies to U.S.-source income effectively connectedwith the conduct of a trade or business in the U.S. The author also describes an exception to the effectively connected income rules for foreign-source Subpart F income.

To read more go here Subscription Required

Posted on

Ireland's 2016 Finance Bill: Impact on real estate transactions

  • By ITR Correspondent

Ireland's ongoing process of budget reform has ensured the timely publishing of the Finance Bill 2016 (the bill),which includes noteworthy tax developments for international investors in real estate transactions.

To read more go here

Posted on

Questions and Answers on the package of corporate tax reforms

  • By European Commission

The European Commission today released Questions and Answers on its new package of corporate tax reforms.

To read more go here

Posted on

EU proposes common tax rules to close avoidance loopholes

Multinational companieswould have to calculate their tax liabilities according to one set of rules across the European Union under proposals on Tuesday aimed at stopping them shifting profits to avoid taxes.

To read more go here

Posted on

The holy grail of tax policy

Not unlike King Arthur's quest for the Holy Grail, Sen. Orrin Hatch (R-Utah) set his sights two years ago on a highly desirable and elusive objective: corporate integration.
What is corporate integration? It's the solution to the problem of double taxation.

To read more go here

Posted on

Global Tax Uncertainty a Top Issue for U.S. Tax Directors

In-house tax counsel for several U.S.-based technology companies, attending an October 21 international tax director roundtable, cited seemingly interminable and rapid change in the global tax environment as a key concern for their departments.

To read more go here Subscription Required

Posted on

Earnings-Stripping Foreign Issuer Exception: Not This Year

The Treasury Departmentwill leave further consideration of the foreign issuer exception under final earnings-stripping rules to the incoming administration, International Tax Counsel Danielle Rolfes said.

To read more go here Subscription Required

Posted on

Treasury Sets High Bar for Ability to Repay in Debt-Equity Regs

One of the four documentation requirements in the final section 385 debt-equity regs (T.D. 9790 2016 TNT 199-5: IRS Final Regulations) is that the documentation establish that the issuer's financial position supports a reasonable expectation of its ability to repay the debt. How much debt does a taxpayer need thewherewithal to repay? According to Treasury, possibly all of it.

To read more go here Subscription Required

Posted on

What Apple Teaches About How Not to Reform Corporate Taxes

In this article, Kalman uses the recent Apple tax ruling by the European Commission to identify problemswith proposals for a territorial tax system in the United States. He argues that policymakers should instead focus on ending deferral, requiring public country-by-country reporting, and adopting provisions of the Stop Tax Haven Abuse Act.

To read more go here Subscription Required

Posted on

News Analysis: U.S. Treasury Doubles Down on Inbound Planning

By carving out debt of foreign issuers from the final section 385 regulations, Treasury effectively mooted a lot of the criticism of its proposed regulations. However, by keeping the funding rulewithout relaxing it in any meaningfulway, the government made sure the final rules strongly targeted inbound planning activities of foreign multinationals.

To read more go here Subscription Required

Posted on

Luxembourg Government proposes to formalize transfer pricing legislation

  • By PwC
The Luxembourg Government on October 12, 2016, presented a Bill (no.7050) to the Luxembourg Parliament outlining the Government's 2017 budgetary measures. One article in the Bill sets out new transfer pricing provisions, augmenting the basic arm's-length rule in force since January 1, 2015 that ÔøΩ formally adopted the OECD standard into Luxembourg law. T

To read more go here

Posted on

Thailand offers generous incentives for headquarters, foreign trading companies, and treasury centers

  • By PwC
Thailand has long offered tax and other incentives to companieswith a regional operating headquarters in Thailand, but it has been difficult to meet ROH regime requirements, making the incentives uncompetitivewith those offered by other Southeast Asian countries.
Thailand therefore recently revamped its incentive regimes, creating a new international headquarters company regime,with add-on benefits for treasury centers (TCs), and an international trading center (ITC) regime.

To read more go here

Posted on

Intel Court Boost Gives Hope to U.S. Tech Giants Battling EU

Intel Corp.'s fight to overturn a record 1.06 billion-euro ($1.17 billion) European Union antitrust fine received a boost from an adviser to the bloc's top court in a case that could have ramifications for a growing list of tax disputes and other cases involving U.S. tech giants from Google to Apple Inc.

To read more go here Subscription Required

Posted on

Some Practitioners Want More Rationale for Debt-Equity Regs

While the final section 385 debt-equity regs (T.D. 9790 2016 TNT 199-5: IRS Final Regulations)were significantly limited in scope from the proposed, the architecture of the recast ruleswas largely preserved,which has angered some tax practitionerswho are dissatisfied by the offered policy rationale for the second and third prongs of the general and funding rules.

To read more go here Subscription Required

Posted on

Oct '16Funds Escape Debt-Equity Regulation NetFor Now

Treasury's package of final and temporary regulations (T.D. 9790) under section 385 does not currently apply to debt issued by investment partnership funds, but best practices indicate that investment funds should complywith the new documentation rules as much as possible, according to an October 20 release by Akin Gump Strauss Hauer & Feld LLP.

To read more go here

Posted on

CCCTB Proposal Already Gathering Reactions Ahead of Official Release

The European Commission is scheduled to release its new draft proposal for a common consolidated corporate tax base (CCCTB) on October 26, but an unauthorized version of the proposal,whichwould provide one mandatory set of rules for calculating taxes owed by companieswith more than ÔøΩ750 million in annual turnover, is already making the rounds.

To read more go here

Member Companies

Back to top