2016

Posted on

Ethical Dimensions of International Tax Planning

Tax lawyers Rafael Bellaver and Pedro Henrique Chaves Araujo consider international efforts to curb base erosion and profit shifting by multinationals, alongwith the concept of a corporation paying its "fair share" of taxes.

To read more go here Subscription Required

Posted on

OECD Draft Guidance on Profit Splits Said to Still Need Work

The OECD should reinforce its guidance on profit splits to make clearer that a lack of comparables doesn't mandate use of the profit split method as the most appropriate transfer pricing method, a practitioner said.

To read more go here Subscription Required

Posted on

Vexation Over Draft Profit-Split Guidance on Risk, Integration

Although the restrictive approach set out in the OECD's recent discussion draft on profit splits has attenuated fears that the profit-split methodwill become the default transfer pricing method, practitioners remain concerned about the complicated interplay between the draft's guidance on risk sharing, functional integration, and the role of value chain analysis.

To read more go here Subscription Required

Posted on

Practitioners Comment on OECD's Revised Guidance on Profit Splits

Profit splits should be used onlywhen both parties to a transaction are making non-routine contributions, according to practitioners.

To read more go here Subscription Required

Posted on

Chamber of Commerce, IRS Face Off in Inversion Rule Challenge

Opposing motions have been filed in the case of Chamber of Commerce of the United States of America et al. v. IRS et al. (No. 1:16-cv-00944), inwhich the plaintiffs have challenged the validity of the so-called multiple domestic entity acquisition rule 2016wTD 65-28: IRS Temporary Regulations. The plaintiffs asked a U.S. district court to set aside the rulewhile the government moved to dismiss their complaint for lack of subject matter jurisdiction.

To read more go here Subscription Required

Posted on

New Hybrid Mismatch Rules Will Raise Issues for CJEU, Practitioner Says

The hybrid mismatch rules included in the anti-tax-avoidance directive adopted by the EU Council in Julywill present the Court of Justice of the European Unionwith novel issues that it has not previously addressed, according to Simonwhitehead of Joseph Hage Aaronson LLP.

To read more go here Subscription Required

Posted on

Multilateral instrument to implement BEPS treaty-related recommendations almost final

  • By PwC
The OECD has been developing a Multilateral Instrument (MLI) that could amend bilateral treaties to swiftly implement the tax treaty measures developed in the course of the G20/ OECD BEPS Action Plan (the BEPS Action Plan). Recently the OECD announced that in the past months it made significant progresswith respect to the MLI and that the main text of the MLI has been agreed in principle.

To read more go here

Posted on

Germany proposes amendments to NOL forfeiture rules

  • By PwC
The German government has published a draft bill (the Bill) thatwould amend the German net operating loss (NOL) forfeiture rules.
To read more go here

Posted on

More Permanent Establishments Expected Under OECD Draft

"Ambiguity" in the OECD's new standard for defining permanent establishments has created a risk that a company's profits could be taxed multiple times, as many jurisdictions target the same income stream, a top business tax official said.

To read more go here Subscription Required

Posted on

Commentators Spar Over OECD's PE Profit Attribution Rules

The OECD's recent discussion draft on attribution of profit to a permanent establishment has sparked renewed debate over the merits of the authorized OECD approach (AOA) and the role it should play in the ongoing base erosion and profit-shifting project implementation process.

To read more go here Subscription Required

Posted on

Practitioners Ask OECD for Guidance on Dependent Agent PEs

Some practitioners and country representatives at an OECDworking Party 6 public consultation on transfer pricing matters in Paris on October 11 said theywould like more guidance from the OECD on the role of model treaty articles 7 and 9 of the OECD model treaty on the attribution of profits to dependent agent permanent establishments (DAPEs).

To read more go here Subscription Required

Posted on

Partnerships and the Proposed Debt-Equity Regulations

In this article, Kaufman examines the treatment of partnerships under the proposed section 385 regulations and explores the regulations' application to funds and alternative investment vehicle structures.

To read more go here Subscription Required

Posted on

Treasury issues rules cracking down on offshore tax deals

by Naomi Jagoda
The Treasury Department on Thursday announced final regulations aimed at curbing offshore tax deals.
The final rules,whichwould treat certain interparty debt as equity, come after business groups and lawmakers from both sides of the aisle expressed concerns about the rules initially proposed in April.
The rules take aim at a tax-avoidance strategy known as "earnings stripping."
To read more go here

Posted on

Fact Sheet: Treasury Issues Final Earnings Stripping Regulations

  • By US Department of Treasury
by US Department of Treasury
On April 4, Treasury issued proposed regulations to address earnings stripping by strengthening the tax rules distinguishing between debt and equity. After extensive engagementwith businesses, tax experts, the public, and lawmakers, todaywe are announcing the final regulations.
To read more go here

Posted on

Unilateral 'anti-avoidance' action as a precursor to the BEPS recommendations - UK and Australian perspectives

  • By PwC
by PwC
The OECD's Base Erosion and Profit Shifting (BEPS) project has been an ambitious and near-unprecedented undertaking to examine the coherence, substance, and transparency of the international tax system. Since the projectwas initiated, the OECD has sought stakeholder consultation to garner support for a consensus-based series of recommendations to accomplish a consistent and coordinated implementation of the ultimate reform package proposed.
To read more go here

Posted on

Debt-Equity Reg Package Includes Broad Carveouts

by Amy S. Elliott & Lee A. Sheppard
The Treasury Department on October 13 issued final and temporary section 385 debt-equity regulations, removing the bifurcation rule thatwas in the proposed regs but largely preserving the remaining rules,with exemptions for cash pools, short-term loans, foreign-to-foreign transactions, regulated financial entities, and passthroughs, and providing documentation relief for debt issued by U.S. corporations.
To read more go here Subscription Required

Posted on

Earnings-Stripping Rules Ease Impact on Day-to-Day Business

by Alison Bennett
The Obama administration's long-awaited final earnings-stripping regulations offer exceptions for cash pooling and transactions between foreign subsidiaries of U.S. multinationalsÔøΩfeatures many taxpayers have eagerly sought.
To read more go here Subscription Required

Posted on

Administration Rushed to Finalize Rules, Republicans Charge

by Kaustuv Basu & Laura Davison
A number of Republican lawmakerswere unhappy about how quickly the Obama administration approved final earnings-stripping regulations, and said theywould review the rules carefully.
To read more go here Subscription Required

Posted on

IRS to Auditors: Use Outside Data for Intangibles Transfers

by Alex M. Parker
The IRS told its auditors to consider using outside information, including financial reporting, business plans and interviewswith key executives, to determinewhether there is foreign goodwillwhen evaluating a transfer of intellectual property.
To read more go here Subscription Required

Posted on

Treasury and IRS release Section 385 regulations

  • By PwC
by PwC
Today, the IRS and Treasury issued final and temporary regulations under Section 385,which addresswhether an interest in a related corporation is treated as stock or indebtedness (collectively the 'Regulations'). The Regulations,which replace the proposed regulations issued by the IRS and Treasury on April 4, 2016, are intended to limit the effectiveness of certain types of tax planning by characterizing related-party financings as equity, even if they are in form straight debt instruments.
To read more go here

Posted on

Treasury Announces Final Regulations on Earnings Stripping

by Richard Rubin
The Treasury Department on Thursday acceded to some corporate requests for leniency as it issued final rules to keep businesses from using intercompany debt to avoid U.S. taxes.
To read more go here

Posted on

UK finance chief hints at long-term plan on economy

by Anjana Haines
Theway tax policy is made in the UK needs to be reformed, say business organisations, but the UK's Chancellor of the Exchequer Philip Hammondwill not unveil his plans until the Autumn Statement next month.
To read more go here

Posted on

EU Commission to draft financial transaction tax legislation

  • By MNE Tax
The EU Commission has been asked to prepare draft legislation for a financial transaction tax (FTT) as the 10 EU ministers negotiating the terms of a FTT have achieved significant progress toward an agreement.
For the MNE Tax story, gohere.
To read more go here

Posted on

UN tax committee to consider major updates to transfer pricing manual, model tax treaty

The UN Committee of Experts on International Cooperation in Tax Matters (Committee) has released several reports in advance of its annual meeting, slated for October 11–14 in New York, revealing that significant changes to the UN's transfer pricing manual and model tax treaty are under consideration.

To read more go here

Posted on

Irelands Budget 2017 (again) affirms 12.5 percent corporate tax rate, addressessection 110 firms

Minister for Finance Michael Noonan, in his speech accompanying Budget 2017 released today, reiterated Ireland's firm stance on maintaining a low corporate tax rate and signaled changes to the taxation of financial intermediaries, known as section 110 firms. The budget is Ireland's first expansionary budget since the financial crisis began in 2008.

To read more go here

Posted on

Philippine Tax Reform

byRodrigo Duterte (Wall Street Journal)
Rodrigo Duterte has adopted some alarmingly populist policies in his first 100 days as Philippine President, including extrajudicial killings of suspected drug dealers. But his economic program is designed to promote fast growth rather than pander to the demands of the leftwing. In particular, he deserves praise for grasping the nettle of tax reform.
To read more go here

Posted on

Businesses rush to prepare for UAE VAT

The United Arab Emirates is on target to implement its VAT regime on January 1 2018, butwith the final VAT Law yet to be published businesses face a tight deadline to make sure they have the tools to complywith the new system.

To read more go here

Posted on

Ireland seeks to reassure US businesses after Apple tax ruling

Ireland is trying to reassure American businesses about its corporate stability after the European Union's executive body fined it $14.5 billion over its tax laws.

To read more go here

Posted on

UPDATE 1-Europe drafting transaction tax law but key details still missing

The European Commission has been given a mandate to draft a law on a financial transaction tax, butwork still needs to be done on the proposal by the 10 countries supporting it, EU officials said on Tuesday.

To read more go here

Posted on

Colombian finance minister says tax reform is 'number one priority'

Colombia's Finance Minister Mauricio Cardenas said on Saturday thatwinning congressional approval for a tax reform plan by year-end aimed at making up for revenue lost because of lower oil priceswas his "number one priority."

To read more go here

Posted on

Mexican FIBRA-E update

  • By ITR
As a follow-on of the energy reform, this sector has seen a new-found interest from participantswho seek to invest in publicly traded securities. Ricardo Rendón and Carlos Enrique Naime from Chévez, Ruiz, Zamarripa investigate.

To read more go here

Posted on

Video: Tax reform and the US election

The US's 2016 election has dredged up underlying issues in international taxation for US companies, butwhat areas of the nation's tax systemwill the new President focus on, andwhat should businesses expect to change?

To read more go here

Posted on

EU Explains Decision to Probe Gibraltar's Tax Ruling Practices

Gibraltar's tax authorities failed to effectively monitor companies' business to safeguard the national tax base, the European Commission said in its decision to expand its formal state aid investigation into the territory's corporate tax regime to include the jurisdiction's tax rulings practice under the Income Tax Act 2010.

To read more go here Subscription Required

Posted on

CCCTB Would Make Denmark Consider Leaving EU, Tax Minister Says

The Danish governmentwould consider its own Brexit should an EU common consolidated corporate tax base (CCCTB) be implemented, according to Danish Minister for Taxation Karsten Lauritzen.

To read more go here Subscription Required

Posted on

News Analysis: Lessons From Weatherford's Accounting Fraud

Mindy Herzfeld reviews the SEC's recent settlement of accounting fraud claims againstweatherford International PLC and two of its tax employees and explainswhy international tax policymakers should consider that tax planning is sometimes driven more by investor expectations than by the desire to pay the lowest amount of cash taxes.

To read more go here Subscription Required

Posted on

G-20 and OECD Transparency Efforts Focus on Access, Data Compatibility

The OECD'swork on tax transparencywill retain its emphasis on the collection and international exchange of beneficial ownership information butwill now focus on developing compatible information technology systems and ensuring access to information, according to a report to the G-20 by OECD Secretary-General Angel Gurría.

To read more go here Subscription Required

Posted on

Canada: Canada introduces debt-parking rules to prevent avoidance of foreign exchange gains

  • By ITR

Canada's Department of Finance has published proposals thatwould implement anti-avoidance measureswhen borrowers enter into "debt-parking" transactions that may result in a foreign exchange gainwhen the foreign currency is exchanged into Canadian dollars for tax reporting purposes.

To read more go here

Posted on

Lew: Europes Apple decision contrasts with global anti-tax avoidance effort

There is a major difference between Europe's latest decision against Apple and the Obama administration's efforts to limit multinational companies' tax avoidance practices, Treasury Secretary Jacob Lew said.

To read more go here

Posted on

New rules require businesses with large UK operations to publish tax strategy on internet

The UK Finance Act 2016 received royal assent on 15 September, bringing into force new rules requiring entitieswhich are, or are part of, a large business operating in the UK to publish a tax strategy on the internet for financial years beginning on or after that date.

To read more go here

Posted on

EU Financial-Transaction Tax Set for Showdown in Luxembourg

The 10 European Union countries pursuing a financial transaction tax meet in Luxembourg on Monday, trying to break a stalemate on the levy first proposed five years ago.

To read more go here

Posted on

Medtronic Suit Shows Tension in Inversion Tax Savings

Corporate inversions have gained popularity because of the tax savings they generate, but in order to complete the deal, some shareholders can be forced to pay taxes on only-on-paper capital gains.

To read more go here Subscription Required

Posted on

Lew Says EU State Aid Issue Could Lead to 'Perfect Storm' for Tax Reform

by Stephanie Soong Johnston (Tax Notes)

The combination of the European Commission moving aggressively on state aid issues and growing bipartisan support for a U.S. minimum tax on future foreign earnings might create the right conditions for fixing the "broken" business tax system in the U.S., according to U.S. Treasury Secretary Jacob Lew.

To read more go here Subscription Required

Posted on

S&P Global Says Repatriation Plan Could Jump-Start Overhaul

Multinational companieswould get a tax break on cash they bring home to the U.S. by investing some of the money in infrastructure, in a plan proposed by S&P Global Inc.
S&P said the plan, released Oct. 5, could be an effective springboard to a tax overhaul, although the proposal drew criticism from analysts.

To read more go here Subscription Required

Posted on

House Taxwriters Circulate Bipartisan Letter on Debt-Equity Regs

Two senior Houseways and Means Committee members are seeking bipartisan support for a letter asking Office of Management and Budget Director Shaun Donovan to make "common-sense" reforms to Treasury's proposed section 385 debt-equity regulations.

To read more go here Subscription Required

Posted on

EY Survey Reveals Increasing Tax Audit Presence Driven by BEPS

  • By EY
Forty-nine percent of respondents in an EY survey have seen tax authorities raise audit issues that reflect areas related to base erosion and profit shifting,with country-by-county reporting and transfer pricing selected as BEPS areas thatwill have the greatest impact on respondents' companies, according to an October 6 release.

To read more go here

Posted on

E-Commerce Between the U.S. and Europe: Apple, State Aid, and Beyond

In this article, the author discusses how the European Commission's state aid investigations and the stalled Transatlantic Trade and Investment Partnership are creating tax and trade barriers between the European Union and the United States, particularly in the e-commerce arena.

To read more go here Subscription Required

Posted on

U.S. Corporate Tax Rates Thwart Competitiveness: Report

The structure of the U.S. tax system and its 35 percent tax rate on corporate income hampers its ability to competewith other countries, according to a report from the right-leaning Tax Foundation.

To read more go here Subscription Required

Posted on

Ireland Still Determined to Appeal Apple Decision, Noonan Says

Ireland remains committed to appealing the European Commission's decision that Ireland provided illegal state aid to Apple Inc. byway of confidential tax rulings, according to Finance Minister Michael Noonan.

To read more go here Subscription Required

Posted on

Uzbekistan Adopts Rules on Tax Benefits for FIEs

The Uzbek ministries of finance and economy and the State Tax Committee recently approved, in orders 61, 121, and 2016-24, respectively, a new regulation on the application of tax benefits to foreign investment enterprises in Uzbekistan. The orders also eliminated all previous regulations on FIEs' tax benefits.

To read more go here Subscription Required

Posted on

Turkey: New law introduces transfer pricing amendments to the Corporate Income Tax Law

  • By PwC
The new law (Law No. 6728) introduces amendments in Article 13 of the Corporate Income Tax Law (the CITL) No. 5520. The new regulations aim to eliminate or reduce uncertainties or difficulties faced in the past and also to promote timely and proper compliancewith documentation requirements.

To read more go here

Member Companies

Back to top