2017
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India struggles to agree one nation, one tax, one rate
When he came to power three years ago, Narendra Modi pledged to unlock India's untapped economic potential ÔøΩ and ensure an acceleration of the country's then sluggish growth.
Indiawill take its biggest leap yet in that questwithinweeks,when a long-awaited tax reform is supposed to turn a highly fragmented marketwith an unwieldywelter of taxes into a true single market for manufactured goods,with a single, unified value added tax regime.
Indiawill take its biggest leap yet in that questwithinweeks,when a long-awaited tax reform is supposed to turn a highly fragmented marketwith an unwieldywelter of taxes into a true single market for manufactured goods,with a single, unified value added tax regime.
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China Extends Preferential Tax Treatment of Advertising Expenses
China's Ministry of Finance and State Administration of Taxation on June 2 issued Caishui [2017] 41 (Circular 41),which extends a preferential tax deduction for advertising and business promotion expenses to the manufacturing and sales sector, the pharmaceutical manufacturing sector, and the beverage manufacturing sector (excluding alcoholic beverages).
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Europe inches closer to a plan for fixing its financial flaws
Donald Trump and Theresa May may have done more to push Europeans together, and open up an opportunity for reform of its institutions, than any pro-European American president or British prime minister could ever have dreamt. The Commission's "Reflection paper on the deepening of the Economic and Monetary Union", issued on May 31st, points theway towards a package deal that could be acceptable to Northern and Southern euro area countries. But some key elements are still missing.
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New VAT Threshold for Shipments to Swiss Customers to Start January 1
A previously approved amendment to a Swiss law extending the country's VAT to all services provided by foreign companies and abolishing the de minimis threshold belowwhich imports of goods are exempt from VATwill go into effect January 1, 2018, the Swiss Federal Council said June 2.
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Spain's Lower House Approves Protocol to Tax Treaty With Mexico
Spain's Congress of Deputies (lower house of parliament) on May 11 approved the pending protocol to the Mexico-Spain income and capital tax treaty, according to information published on itswebsite.
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The 1000 richest families in Scandinavia evade a third of their taxes, finds a new bombshell study
A new study indicates that Scandinavia'swealthiest families are moving their money abroad to avoid paying taxes.
The study estimates that the 1000 richest families in Scandinavia havewithheld as much as 32 procent of the taxes theywould otherwise be required to pay.
The study estimates that the 1000 richest families in Scandinavia havewithheld as much as 32 procent of the taxes theywould otherwise be required to pay.
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Juncker survives Parliaments tax hot seat
A relaxed European Commission President Jean-Claude Juncker calmly dismissed allegations that he helped foster corporate tax avoidance in Luxembourg, during a hearing before MEPs in Brussels on Tuesday.
He instead proclaimed his ignorance over the Grand Duchy's suspect tax dealingswith corporations as he deflected critical questioning in the European Parliament's committee of inquiry into money laundering, tax avoidance and tax evasion (PANA).
He instead proclaimed his ignorance over the Grand Duchy's suspect tax dealingswith corporations as he deflected critical questioning in the European Parliament's committee of inquiry into money laundering, tax avoidance and tax evasion (PANA).
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Kosovo, Switzerland Sign Tax Treaty
Officials from Kosovo and Switzerland signed a tax treaty and accompanying protocol in Pristina on May 26, according to information published on the Swiss government'swebsite.
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OECD releases peer review document for assessment of the BEPS Action 6 minimum standard
Today the OECD released the key document, approved by the Inclusive Framework on BEPS,whichwill form the basis of the peer review of the Action 6 minimum standard on preventing the granting of treaty benefits in inappropriate circumstances.
The Action 6 minimum standard is one of the four BEPS minimum standards. Each of the four BEPS minimum standards is subject to peer review in order to ensure timely and accurate implementation and thus safeguard the level playing field. All members of the Inclusive Framework on BEPS commit to implementing the minimum standards and participating in the peer reviews.
The Action 6 minimum standard is one of the four BEPS minimum standards. Each of the four BEPS minimum standards is subject to peer review in order to ensure timely and accurate implementation and thus safeguard the level playing field. All members of the Inclusive Framework on BEPS commit to implementing the minimum standards and participating in the peer reviews.
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Italy offers multinationals voluntary "webtax" to avoid wrangles
Italy sought to boost revenue from multinational internet companies on Monday by offering them the chance to agree on their future tax bills rather than risk disputes.
For years, Italy has argued that companies such as Amazon, Apple and Google avoid taxes by maintaining that they do not have a "stable presence" in Italy, even though they generate huge revenues there.
For years, Italy has argued that companies such as Amazon, Apple and Google avoid taxes by maintaining that they do not have a "stable presence" in Italy, even though they generate huge revenues there.
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U.S. Company Seeks Treasury's Help in Tax Brawl With Georgia
A private company based in Miami is seeking the Department of Treasury's support for a disputewith the country of Georgia involving tax assessments of more than $82.45 million and a review process it said is unjust.
Georgian American Alloys Inc. (GAA) urged the U.S. competent authority, in a May 4 letter released under the Freedom of Information Act, to acknowledge the possibility of its claim that Georgia's tax measures have expropriated the company's investments in Georgia.
Georgian American Alloys Inc. (GAA) urged the U.S. competent authority, in a May 4 letter released under the Freedom of Information Act, to acknowledge the possibility of its claim that Georgia's tax measures have expropriated the company's investments in Georgia.
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The U.S. Border Tax and Its Implications for the EU
In summer 2016 the Republican majority of the U.S. House of Representatives unveiled its plan to launch the biggest tax reform effort in more than 30 years. The blueprint's core elements are income tax cuts; a low, nonrecurring tax on undistributed foreign earnings; and a fundamental reform of business taxation. The plans for the last item are revolutionary in that House Republicans do not seek only to reduce the corporate tax rate to 20 percent; they alsowant to convert the classical system of business taxation to a destination-based cash flow tax (DBCFT)with a border tax adjustment.
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A 'Tax Revolution' Set to Sweep India's $2 Trillion Economy
Prime Minister Narendra Modi's government is set to dramatically reshape Asia's third-largest economywith the biggest tax reform since independence in 1947.
After finding common ground among India's 29 states, the finance ministry on Friday released detailed rates for the incoming goods and services tax, slotting more than 1,200 items -- from sugar to steel pipes and motorcycles -- into five tax brackets between zero and 28 percent.with that done, India is almost ready to implement a tax code that unifies more than a dozen separate levies, effectively creating a single marketwith a population greater than the U.S., Europe, Brazil, Mexico and Japan combined.
After finding common ground among India's 29 states, the finance ministry on Friday released detailed rates for the incoming goods and services tax, slotting more than 1,200 items -- from sugar to steel pipes and motorcycles -- into five tax brackets between zero and 28 percent.with that done, India is almost ready to implement a tax code that unifies more than a dozen separate levies, effectively creating a single marketwith a population greater than the U.S., Europe, Brazil, Mexico and Japan combined.
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News Analysis: Will International Tax Regulations Survive Executive Orders?
Since taking office, President Trump has issued three executive orders directing Treasury to review existing tax regulations. The stated purpose of the orders is to ensure that tax rules promulgated by the government aren't unduly burdensome to the public. Evaluating regulations under the vague standards of the executive orders ÔøΩ particularly the regs affecting cross-border taxation ÔøΩwill require Treasury to make judgment calls that involve balancing the goals of regulations and the tax code against the burdens they impose.
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German Central Bank Warns Trumps Tax Reform Would Hurt U.S. Economy
Germany's central bank Monday said President Donald Trump's tax planswould likely hurt the U.S. economy and lead to a 30 percentage-point increase U.S. debt-to-gross domestic product ratiowithin a decade.
The comments, published in the Bundesbank's monthly report, represent a rare critique by the central bank of US economic policy, but come amid tensions between Berlin and the new administration inwashington,which has attacked Germany's persistent trade surpluses.
The comments, published in the Bundesbank's monthly report, represent a rare critique by the central bank of US economic policy, but come amid tensions between Berlin and the new administration inwashington,which has attacked Germany's persistent trade surpluses.
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The impact of Swiss corporate tax reform III on your company
The abolishing of preferential tax regimes and the implementation of the expected corporate tax reform IIIwill challenge many Swiss operations of multinational enterprises. Holdings should not be affected on a large scale. However, IP and financing activities require review and amendment to the future Swiss tax landscape. This how your companywill be impacted by Swiss corporate tax reform.
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Irelands biggest growth risks are Brexit and U.S. tax reform
Irelandwill likely continue to enjoy robust growth thanks to a flexible, competitive and open economy,while efforts by the government to get its public finances in order have generated a significant reduction of the budget deficit.
That's the verdict of Moody's Investors Service,which on Tuesday published its annual credit analysis of the country, finding plenty of evidence to support Ireland's A3 rating and stable outlook.
That's the verdict of Moody's Investors Service,which on Tuesday published its annual credit analysis of the country, finding plenty of evidence to support Ireland's A3 rating and stable outlook.
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EU Pushing European Investment Bank to Avoid Tax Havens
The European Parliament (EP) is pushing hard to make sure the European Investment Bank (EIB) doesn't use public money in tax havens. Last year, the European Commission vetoed projectsworth up to ÔøΩ1 billion because it thought the financing arrangements linked to those projectswere dubious.
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U.K.s Labour Party Pledges Broad Tax Increases to Pay for New Benefits
Its election manifesto already leaked, Britain's opposition Labour Party sought on Tuesday to explain how its pledgeswould be financed and in the process slew another sacred cow of the party's recent, centrist past: low taxes for the moderatelywealthy, aswell as for the rich.
Tuesday's official release of Labour's manifestowas dominated by the cost implications of the party's most left-wing program in three decades,which includes plans to scrap university tuition fees, build more homes and increase spending on health and social care.
Tuesday's official release of Labour's manifestowas dominated by the cost implications of the party's most left-wing program in three decades,which includes plans to scrap university tuition fees, build more homes and increase spending on health and social care.
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U.S. Negotiating New Tax Treaty With Ireland: Official
The U.S. is negotiating a new tax treatywith Ireland, according to a Treasury official.
The U.S. is "at the table"with Luxembourg, Ireland, the Netherlands, Argentina and Colombia, using a new model tax treaty Treasury released in 2016 as a basis for negotiations, said Elena Virgadamo, attorney-adviser in Treasury's Office of International Tax Counsel.
The U.S. is "at the table"with Luxembourg, Ireland, the Netherlands, Argentina and Colombia, using a new model tax treaty Treasury released in 2016 as a basis for negotiations, said Elena Virgadamo, attorney-adviser in Treasury's Office of International Tax Counsel.
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Mnuchin Weaves in Tax Reform, With Trade Talk at G7 Italy
A Group of Seven communique issued on Saturday said officialswere "working to strengthen the contribution of trade to our economies" – aweaker pledge than the statement from the Group of 20 leaders a year ago to avoid protectionism in all its forms.
Finance ministers meeting in the Italian port of Bari, including Germany'swolfgang Schaeuble, sought to draw in the US Treasury Secretary toward the previous consensus on free trade, despite a formal agenda that avoided pursuing that too explicitly by focusing on "inclusive growth".
Finance ministers meeting in the Italian port of Bari, including Germany'swolfgang Schaeuble, sought to draw in the US Treasury Secretary toward the previous consensus on free trade, despite a formal agenda that avoided pursuing that too explicitly by focusing on "inclusive growth".
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OECD Chief Champions Multilateral Instrument
OECD Secretary-General Angel Gurria, speaking May 12 on the sidelines of a meeting of G-7 finance ministers in Bari, Italy, said the OECD's new multilateral instrument (MLI)will prevent large multinational companies from shifting profits to low-tax countries, according to an Associated Press report.
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Panama Must Do More to Combat Tax Evasion: UN Expert
The "Panama Papers" have shown how corporations,wealthy individuals and politicians have systematically hidden assets in more than 21 offshore jurisdictions.
Last year's bombastic financial record leak of a Panama-based law firm, known as the "Panama Papers," has resulted in calls for the country's lawmakers to impose greater monitoring of financial and banking institutions.
Last year's bombastic financial record leak of a Panama-based law firm, known as the "Panama Papers," has resulted in calls for the country's lawmakers to impose greater monitoring of financial and banking institutions.
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EU Set to Water Down Public CbC Reporting Proposal
The EU Council and European Parliament are set towater down the European Commission's proposal for public country-by-country reporting, the latest negotiation documents show.
A new round of technical negotiations is expected in the Council on May 17. The compromise second proposal, prepared by the Maltese presidency and seen by Tax Analysts, introduces a number of exemptions and nuances thatwould limit the scope of the proposal.
A new round of technical negotiations is expected in the Council on May 17. The compromise second proposal, prepared by the Maltese presidency and seen by Tax Analysts, introduces a number of exemptions and nuances thatwould limit the scope of the proposal.
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Row Ignites After Germany Slams 'Tax Haven' Malta
Norbertwalter-Borjans has been busy turning himself into the public scourge of German tax cheats and foreign tax havens. Having already riled Switzerland by buying CDswith stolen bank account data - and then accusing the Alpine state of spying on his tax offices - North Rhine-Westphalia's finance minister criticized Malta as a haven for tax-evading offshore companies.
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Moons economic plan: more jobs, higher taxes
After Korean voters delivered a landslide victory to Democratic Party candidate Moon Jae-in in Tuesday's presidential election, the question on many of their minds iswhat economic policies his liberal administrationwill pursue.
Onwednesday, Moon, in one of his first orders as president, asked the finance minister to assess the country's job situation and report on improvements that could be made.
Onwednesday, Moon, in one of his first orders as president, asked the finance minister to assess the country's job situation and report on improvements that could be made.
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How will the UK respond to US tax reform?
Under recent American presidents, the deadlock between Republicans and Democrats prevented any significant progress in reforming the US tax system.
The high rate of business taxwas felt by some to stifle growth in the US domestic economy.without a doubt, it also had the effect of discouraging US-headquartered multinational corporations from repatriating overseas profits.
The high rate of business taxwas felt by some to stifle growth in the US domestic economy.without a doubt, it also had the effect of discouraging US-headquartered multinational corporations from repatriating overseas profits.
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Corporate tax safe in spite of Emmanuel Macrons victory in France
Ahead of the elections, the French president-elect said the gap in tax rates across the EUwould have to be tackled and explicitly mentioned Ireland.
"As for Ireland,we do know today that that's the bias for a lot of corporations, that it's bias for a lot of sectors and especially the digital sectors," Mr Macron told RTÉ news recently.
"As for Ireland,we do know today that that's the bias for a lot of corporations, that it's bias for a lot of sectors and especially the digital sectors," Mr Macron told RTÉ news recently.
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India's historic tax reform -- opportunity and confusion
India's biggest tax overhaul since its independence, set to take effect on July 1, is aimed at ushering in a new era of efficiency, but it also carries the risk of creating corporate confusion and pushing up prices.
At a news conference in New Delhi on April 25, a Finance Ministry official said the goods and services tax,whichwill unify taxation across the states,will greatly benefit businesses by ending double taxation and boosting the price competitiveness of exporters, among other things.
At a news conference in New Delhi on April 25, a Finance Ministry official said the goods and services tax,whichwill unify taxation across the states,will greatly benefit businesses by ending double taxation and boosting the price competitiveness of exporters, among other things.
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Macron to take time reforming economy in divided France
After a decade of slow growth, rising unemployment and dwindling competitiveness, France elected a president on Sundaywho says he has a plan to pull the country out of its economic malaise.
Emmanuel Macron, a former investment bankerwho quit the government of Francois Hollande twice out of frustrationwith the slow pace of reforms, is promising to overhaul the labor market, simplify the tax and pension systems,while paring back regulations he says hamper innovation.
Emmanuel Macron, a former investment bankerwho quit the government of Francois Hollande twice out of frustrationwith the slow pace of reforms, is promising to overhaul the labor market, simplify the tax and pension systems,while paring back regulations he says hamper innovation.
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Jack Mintz: We need a Canadian tax-reform crusade, because saving NAFTA wont be enough
Lastweek, Canadianswere confronted by several U.S. policy disruptions. The Trump administration proposed countervailing duties on Canadian lumber exports to the United States. The president also challenged unfair Canadian practices that discriminate against U.S. dairies. Trump even raised the possibility of cancelling NAFTA altogether if Canada and Mexico do not negotiate a better deal.
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Donald Trumps tax war could force Beijing to ease corporate burden
The erosion of Chinese manufacturing might accelerate if Beijing fails to keep upwith business tax cuts in the United States and other developed countries, analysts say.
But observers also cautioned that the central government's scope to reduce the corporate tax burdenwould be limited given the need to keep up public spending on infrastructure to make sure growth stayed on track.
But observers also cautioned that the central government's scope to reduce the corporate tax burdenwould be limited given the need to keep up public spending on infrastructure to make sure growth stayed on track.
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EU Politicians Step Up Pressure for U.S. FATCA Reciprocity
European politicians are looking to force U.S. banks to exchange tax datawith governmentswithin the 28-nation bloc.
With frustration mounting because the U.S. hasn't adopted the OECD's common reporting standard, members of the European Parliament asked the European Commission to propose a mandate to negotiate an accordwith the U.S. to make the Foreign Account Tax Compliance Act reciprocal to ensure a two-way data exchange.
With frustration mounting because the U.S. hasn't adopted the OECD's common reporting standard, members of the European Parliament asked the European Commission to propose a mandate to negotiate an accordwith the U.S. to make the Foreign Account Tax Compliance Act reciprocal to ensure a two-way data exchange.
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U.S. Making Progress on CbC Reporting Agreement Negotiations, Treasury Official Says
The U.S. Treasury Department has made significant progress in negotiating competent authority agreements for exchanging country-by-country reports,with two agreements signed and several others in the signatory process, according to Elena Virgadamo, attorney-adviser, Treasury Office of International Tax Counsel.
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EU Brexit Guidelines Set Taxation Safeguards
Leaders from 27 European Union member states adopted guidelines for the upcoming Brexit negotiations that include measures to safeguard the EU in the event the U.K. decides to dramatically lower the corporate tax rate or provide special tax rulings to multinational companies to attract investment.
The guidelinesÔøΩapproved at a special April 29 EU summit and due to be formalized in a May 3 European Commission proposalÔøΩstate that any future trade EU-U.K. relationship must "ensure a level playing field." According to the guidelines, this includes "safeguards against unfair competitive advantages"when it comes to tax and other sectors such as social, environmental and regulatory practices.
The guidelinesÔøΩapproved at a special April 29 EU summit and due to be formalized in a May 3 European Commission proposalÔøΩstate that any future trade EU-U.K. relationship must "ensure a level playing field." According to the guidelines, this includes "safeguards against unfair competitive advantages"when it comes to tax and other sectors such as social, environmental and regulatory practices.
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U.K. Prime Minister Rules Out VAT Rise for Conservative Party Manifesto
The Conservative Party does not plan on including any increases in VAT rates in its forthcoming election manifesto, said U.K. Prime Minister Theresa May,who did not commit to renewing the "triple tax lock" pledge thatwas contained in the party's previous platform.
Speaking on ITV's Peston on Sunday program April 30, May emphasized that her partywill not propose raising the level of tax. "In relation to specific taxes,wewon't be increasing VAT, butwhat Iwant to do is ensure thatwhenwe do look morewidely at the tax system, thatwhatwe say on the tax system,we're absolutely clearwe can deliver on it for people," she told host Robert Peston,who had askedwhether the Torieswould scrap the triple tax lock.
Speaking on ITV's Peston on Sunday program April 30, May emphasized that her partywill not propose raising the level of tax. "In relation to specific taxes,wewon't be increasing VAT, butwhat Iwant to do is ensure thatwhenwe do look morewidely at the tax system, thatwhatwe say on the tax system,we're absolutely clearwe can deliver on it for people," she told host Robert Peston,who had askedwhether the Torieswould scrap the triple tax lock.
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Inversions, Related Party Expenditures, and Source Taxation: Changing the Paradigm for the Taxation of Foreign and Foreign-Owned Businesses
The disconnect between the rules for the taxation of domestic businesses and foreign and foreign-owned businesses operating in the United States both diminishes the federal treasury and distorts taxpayer and business behavior. Yet bringing the sets of rules into closer coordination is no simple task. This Article examines many of the solutions proffered in the academic literature and details the difficulties and trade-offs that each entails.
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Developing Countries in an Age of Transparency and Disclosure
Two important topics have been the subject of continuing debate in contemporary international tax policy circles. The first is the recent trend towards increased transparency and disclosure in tax enforcement and the prevention of tax base erosion. The second is the question of how developing countries should be treated in the design and implementation of international tax policy.
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The Other Eighty Percent: Private Investment Funds, International Tax Avoidance, and Tax-Exempt Investors
The taxation of private equity managers' share of funds' profitsÔøΩthe twenty percent "carried interest"ÔøΩreceived much attention in academic literature and popular discourse. Much has been said andwritten about the fact that fund managers' profits are taxed at preferred rates. Butwhat about the other eighty percent of funds' profits? This Article theorizes that the bulk of such profits are never taxed.
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Defending Worldwide Taxation With A Shareholder-Based Definition Of Corporate Residence
This Article argues that a principled, efficient, and practical definition of corporate residence is necessary even if some form of corporate integration is adopted, and that such a definition is a key element in designing either a realworldwide or a territorial income tax system aswell as a potential restraint on the inversion phenomenon.
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Competitiveness, Tax Base Erosion, and the Essential Dilemma of Corporate Tax Reform
Label contradicts reality for the U.S. international corporate tax system. The U.S. system is typically labeled as aworldwide tax systemwith a statutory rate of 35%, both uncommon features among our trading partners. Yet these markers of the U.S. tax system do not accurately describe reality,where multinational firms routinely face far lower effective tax rates and little, if any, tax is collected on foreign income. Understanding this discrepancy between label and reality is essential to evaluate recent policy debates surrounding corporate inversions and the competitiveness of the U.S. international tax system.
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The House GOP Blueprint Can Be Drafted to Comply with WTO Rules
Would a destination-based cash flow tax, or "DBCFT," as proposed in the House Republican Blueprint, violateworld Trade Organization (WTO) rules? The EU and other US trading partners have reportedly already begun putting together a legal challenge against the DBCFT for use at thewTO.2 This development is premature, to say the least. No one can seriously opine onwTO-compatibility, let alone develop awTO challenge, until legislative language for the Blueprint is released.
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The Foreign Tax Credit War
The government has been involved in a sustainedwar against objectionable foreign tax credit transactions. Thiswar has caused the U.S. foreign tax credit regime to be riddledwith complexity that spawns incoherent outcomes. The complexity contained in section 901was created due to a legitimate concern: the threats posed by objectionable transactions that artificially generate excess foreign tax credits represent real policy problems.
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Corporate tax rate may be lowered to 25% for bigger Indian companies
The finance ministry is considering a plan to extend the benefit of a lower 25% corporate tax rate to relatively bigger companies in 2018-19, a person privy to early discussions in the government said.
The tax rate for companieswith annual revenue of less than Rs50 crore a yearwas reduced to 25% from 30% in the Union Budget for the current fiscal.
The tax rate for companieswith annual revenue of less than Rs50 crore a yearwas reduced to 25% from 30% in the Union Budget for the current fiscal.
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U.S. Signs First Two Pacts to Exchange Global Tax Reports
The IRS has signed its first competent authority agreement to exchange companies' global tax and profit reportswith the Netherlands, as the Service races to negotiate approximately 100 competent authority agreements.
Negotiating "qualified competent authority agreements"ÔøΩthe government-to-government agreements underwhich the country-by-country reporting data is exchangedÔøΩis a top priority for the Internal Revenue Service. A comprehensive network of bilateral agreementswould permit U.S. multinationals to file their reports of global taxes and profits for 2016with the IRS rather thanwith foreign jurisdictions.
Negotiating "qualified competent authority agreements"ÔøΩthe government-to-government agreements underwhich the country-by-country reporting data is exchangedÔøΩis a top priority for the Internal Revenue Service. A comprehensive network of bilateral agreementswould permit U.S. multinationals to file their reports of global taxes and profits for 2016with the IRS rather thanwith foreign jurisdictions.
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Corporate Tax Cut as Growth Elixir? Foreign Experience Suggests Caution
Lastweek President Donald Trump proposed slashing the corporate tax rate to 15% as the centerpiece of a tax plan designed to boost economic growth.
He is in good company. Between 2000 and 2016, most of the U.S.' largest trading partners cut their corporate rates. But their experience offers a reality check. There is little compelling evidence any enjoyed substantially faster growth as a result, and certainly not on the scale of Mr. Trump's ambitions; hewants to push the U.S. long-term growth rate from its current 2% to 3%.
He is in good company. Between 2000 and 2016, most of the U.S.' largest trading partners cut their corporate rates. But their experience offers a reality check. There is little compelling evidence any enjoyed substantially faster growth as a result, and certainly not on the scale of Mr. Trump's ambitions; hewants to push the U.S. long-term growth rate from its current 2% to 3%.
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EU Lawmakers Label Trump Tax Plan a Race to the Bottom
U.S. President Donald Trump's plans to slash corporate taxes by more than halfwill accelerate a "race to the bottom" and undermine global efforts to combat corporate tax evasion by multinationals, according to a second political group in the European Parliament.
The Socialists and Democrats, made up of 190 European Parliament lawmakers, insisted the Trump tax reform, announced April 26, threatens the currentwork in the Organization for Economic Cooperation and Development and the Group of Twenty to establish a fair and efficient tax system that puts an end to base erosion and profit shifting by companies.
The Socialists and Democrats, made up of 190 European Parliament lawmakers, insisted the Trump tax reform, announced April 26, threatens the currentwork in the Organization for Economic Cooperation and Development and the Group of Twenty to establish a fair and efficient tax system that puts an end to base erosion and profit shifting by companies.
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CCCTB Deadlock May Require Fresh Political Guidance
The EU might need fresh political guidance on the proposal for a common consolidated corporate tax base (CCCTB) now that technicalwork has ended in a deadlock.
After a failed attempt in 2011, the European Commission tried to make the pill easier to swallow for member states reluctant to embrace tax harmonization. The new draft plans provide for generous tax incentives. The most controversial aspect, the consolidation of losses and profits in the EU, has been reserved for a second phase of implementation.
After a failed attempt in 2011, the European Commission tried to make the pill easier to swallow for member states reluctant to embrace tax harmonization. The new draft plans provide for generous tax incentives. The most controversial aspect, the consolidation of losses and profits in the EU, has been reserved for a second phase of implementation.
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Should Modi follow Trump's strategy on tax rate cuts?
Trump's radical tax plan that seeks to reduce tax rates across the board has many parallels to India. In post 1970s India fraughtwith droughts, malnutrition and grinding poverty itwas a sin to be rich. Americans meanwhile have alwaysworshipped money and idolised thosewho make money. Both nations seem to have followed similar trajectories in the manner inwhich tax rates have moved since the 1970s.
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International Reactions to Trump Tax Plan Range from Concern to Resignation
While the proposals made by President Trump to lower U.S. corporate tax rates to 15 percent are as ambitious in scope as they are vague in detail, they hae the potential to force profound changes in the tax regimes of developed countries theworld over if carried through to fruition.
Foreign economists, academics, and practitioners contacted by Tax Analysts for their reactions about the international impact of a dramatic lowering of U.S. companies' tax burden, as outlined by the Trump administration on April 26, gave responses that ranged from deep concern about the ability of their home countries to retain and attract foreign direct investment to resignation that therewould be little that could be done to offset the resulting economic impact.
Foreign economists, academics, and practitioners contacted by Tax Analysts for their reactions about the international impact of a dramatic lowering of U.S. companies' tax burden, as outlined by the Trump administration on April 26, gave responses that ranged from deep concern about the ability of their home countries to retain and attract foreign direct investment to resignation that therewould be little that could be done to offset the resulting economic impact.
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