2019

Spain's acting government has called on the European Union to assess a potential carbon tax on power imports to protect the bloc's interests and help it to pursue its environmental targets amid growing public concern over climate change.

HM Revenue & Customs has opened a consultation on amendments to rules regarding taxation of the digital economy that aim to keep large multinationals from taking advantage of low-tax jurisdictions to stow their intellectual property.

In economic analysis, Martin A. Sullivan argues that Congress should pay for a lower effective tax rate on global intangible low-taxed income by increasing the 20 percent haircut on foreign creditable taxes, increase the haircut on foreign tax credits in 2026 instead of reducing the section 250 deduction, and reduce foreign tax creditability instead of raising the rate.

Carrie Brandon Elliot reviews how the section 163(j) proposed regulations intersectwith section 882 and impose two limits on interest expense deductions that reduce effectively connected income.

In news analysis Mindy Herzfeld looks at the turbulent relationship among tariffs, taxes, and trade and its influence on multinational business decision-making.

Complaints against the U.S. foreign-derived intangible income regime may become moot depending on the outcome of the OECD's project addressing the tax challenges of the digital economy.

Minimum taxation proposals under pillar 2 of the OECD-ledwork on taxing digitalization are problematic for Ireland, but discussions on taxing intangibles and intellectual property under pillar 1 hold promise, Ireland's finance minister said.

The OECD inclusive framework could soon sanction a roadmap for cultivating a potential global consensus on reshaping the international tax system, according to an OECD official.

Ireland must be open to considering a broader concept of how companies are taxed in the modern digitalizedworld, Finance Minister Paschal Donohoe said on Thursday, setting out his country's stall in a debate that is key to its economy.

The Mexican government said it has reached agreementwith several online ride-hailing and food delivery companies over thewithholding of VAT and corporate income tax (ISR) on their services.

Taxation of large companies in the United Kingdom is now comprehensive and "more robust than it has ever been," Glyn Fullelove said in his inaugural speech as president of the Chartered Institute of Taxation.

France's proposed 3 percent digital services taxwill not be challenged by the European Commission as state aid because it closely follows the commission's recent proposal, Finance Minister Bruno Le Maire told French legislators.

In this article, the authors discuss recent changes to South Korea's tax laws, including several amendments that took effect January 1,with a focus on changes that may affect foreign companies doing business in Korea.

The U.K. governmentwill seek to find alternative options to a backstop plan to avoid a hard customs border between Northern Ireland and Ireland by December 2020 as part of a 10-point "new Brexit deal."

Australia's newly reelected government said Tuesday that its promise to slash income taxes might be delivered late butwould not be broken as it seeks to stimulate consumer spending, revive a flagging economy and repair relationswith China, its most important trading partner.

The Removing Incentives for Outsourcing Actwould institute a country-by-country minimum tax for controlled foreign corporations,while the Disclosure of Tax Havens and Offshoring Actwould expand CFC financial reporting, Sens. Chris Van Hollen, D-Md., Amy Klobuchar, D-Minn., and Tammy Duckworth, D-Ill., said in a May 22 release announcing the bills.

With the German government's approval of a bill thatwould offer a 25 percent allowance for qualifying research expenses, Germany has taken another step toward enacting its first tax incentive for research and development.

Smaller U.K. companies should be able to opt for a levy on turnover to replace corporation tax, business rates, VAT, and the employer's National Insurance contribution, according to the Centre for Policy Studies (CPS).

In this article, the authors discuss the annual IRS report on advance pricing agreements, the IRS's new unit on competent authority, comments from the Silicon Valley Tax Directors Group on the base erosion and antiabuse tax, and the New York State Bar Association's comments on the proposed partnership nonrecognition transaction regulations and antiabuse rules.

In this article, the author discusses the extensive global input received in response to the OECD's recent consultation document on the digital economy.

A global solution is necessary for the fair taxation of multinationals in the digital economy, and the EU is having positive discussionswith the United States on the subject, the EU's tax chief said.

EU member stateswillwork together to assess the impact of OECD plans for taxing the digital economy, Romanian Finance Minister Eugen Teodorovici told reporters after a meeting of EU finance ministers in Brussels May 17.

In this article, the author considers the upcoming elections for the European Parliament and their potential impact on EU tax policy.

Treasury and the IRS have proposed regulations restricting the scope of downward attribution of stock in controlled foreign corporationswithout addressing one of the Tax Cuts and Jobs Act's controversial and seemingly unintended consequences.

Carrie Brandon Elliot describes how the proposed regs related to section 163(j) seek to help taxpayers avoid mismatches and double-counting.

Lee Sheppard looks at the state ofwithholding on payments to hybrid entities and payments on hybrid instruments after the recent release of guidance by the U.S. Treasury.

Smaller U.K. companies should be able to opt for a levy on turnover to replace corporation tax, business rates, VAT, and the employer's National Insurance contribution, according to the Centre for Policy Studies (CPS).

In this article, the authors discuss the annual IRS report on advance pricing agreements, the IRS's new unit on competent authority, comments from the Silicon Valley Tax Directors Group on the base erosion and antiabuse tax, and the New York State Bar Association's comments on the proposed partnership nonrecognition transaction regulations and antiabuse rules.

In this article, the author discusses the extensive global input received in response to the OECD's recent consultation document on the digital economy.

Itwould be more effective for there to be a deal among members of the Organization for Economic Cooperation and Development on a minimum corporate tax before the European Union tries to establish one, a European Commission official said Thursday.

German Finance Minister Olaf Scholz said on Friday he expected the Organisation for Economic Cooperation and Development (OECD)will agree a minimum level of taxation for digital companies such as Amazon, Google and Facebook by mid-2020. He also said he expected progress by the third quarter of 2019 on introducing a financial transaction tax in at least nine EU countries.

You may not like paying taxes, but your burdenwill be even higher if others don't pay their fair share. That, in a nutshell, goes a longway toward explainingwhy a value-added tax, or VAT, is used by just about every major country in theworld except the United States.

Presidential hopeful Pete Buttigieg (D)wants to tax carbon emissions as part of his climate action agenda. The South Bend, Ind., mayor listed pricing carbon from polluters as one of his campaign policy initiatives on hiswebsite. Speaking to theSkimm on Thursday, he said the plan to tax carbon polluters and distribute the profits as dividends back to Americanswould allow the public to "actually see more money in our pockets."

In a televised debate, six candidates for the European Commission presidency found common ground on opposing aggressive tax avoidance, using carbon taxes to combat climate change, and taxing the digital economy.

The IRS has started applying data analytics to streamline its compliancework in connectionwith large, complex corporate taxpayers.

Eric Solomon of the American Bar Association Section of Taxation has submitted comments on proposed base erosion and antiabuse tax regulations (REG-104259-18), identifying provisions that it suggests should be reconsidered and other areas that need further clarification.

Global intangible low-taxed income is more than tax avoidance income and should not be taxed at the state level, according to some tax experts.

Ottawa plans to close the gap created by the repeal of Alberta's provincial carbon tax by implementing a replacement.

In this article, the author analyzes the scope and mechanics of Luxembourg's new controlled foreign company rules and considers problems such as overlapwith transfer pricing rules and the risk of double taxation.

The National Foreign Trade Council has commented on proposed foreign-derived intangible income regulations (REG-104464-18), suggesting changes regarding the documentation requirements, the foreign derived ratio, the ordering rules, the treatment of some loss transactions, foreign branch income, and some other issues.

Switzerland is trying to hold on to its appeal as an attractive place for companies. In a May 19 referendum, voterswill decidewhether to accept or reject a new corporate tax regime to replace the special tax breaks that multinational companies now enjoy.

European Union finance ministers are set to remove thisweek the British overseas territory of Bermuda, the Dutch Caribbean island of Aruba and Barbados from the bloc's blacklist of tax havens, an EU official said on Monday.

If you've ever been to a public swimming pool, you're familiarwith the "pool rules" posted near thewater: No diving, no running and no horseplay. These rules exist to keep everyone safe. In the sameway, international tax treaties set ground rules among countries ÔøΩ protecting taxpayers from double taxation and giving companies confidence to invest. But for nearly a decade, the Senate has been blocked from approving any of these routine and vitally important treaties.

Companies such as the Daily Mail Group, Diageo and the London Stock Exchange are expecting the UK to appeal the EU's state aid decision against the country's CFC group financing regulation, but there is very little time to file a challenge.

E.ON Chief Executive Johannes Teyssen on Tuesday proposed a carbon dioxide tax of 35 euros ($39.34) a tonne thatwouldwiden the burden-sharing for climate protection to big emitters such as transport and heat provision.

The consultation period for feedback on India's proposed changes to its profit-attribution rules has not yet ended, but the debate around the potential costs and benefits of any change is already hotting up.