2023

The EU Council approved the removal of four small, tropical nations from its blacklist for noncooperative jurisdictions in tax matters, two of which had been recently added to the list.

The EU Council was unable to get enough votes from member states to approve a watered-down second deal on the reclassification of digital platform workers.

The Singaporean government has announced it is moving forward with plans to partially adopt parts of the global minimum tax regime under pillar 2 of the OECD’s two-pillar global tax reform plan in 2025.

Reuven S. Avi-Yonah considers which provisions of the 2017 Tax Cuts and Jobs Act should be retained and which should be allowed to expire at the end of 2025.

As EU countries’ parliamentary scrutiny period for the European Commission’s Business in Europe: Framework for Income Taxation (BEFIT) proposal came to an end, Ireland and Poland, among other member states, voiced serious concerns.

EU member states’ permanent representatives have agreed to remove the Bahamas, Belize, the Seychelles, and Turks and Caicos from the EU list of noncooperative jurisdictions for tax purposes.

The United States has extended a “unilateral measures compromise” with five countries that will deal with their digital services taxes in the period before pillar 1 rules are enacted and sidestep retaliatory U.S. trade actions.

Under the European Parliament’s provisional opinion on a new transfer pricing directive, the U.N. could set guidelines in the future, but agreement on a proposal to harmonize aspects of the corporate tax rules remains elusive.

The European Commission's proposal to harmonize aspects of corporate tax rules would make it harder for multinational enterprises to shift profits to tax havens, a researcher said.

U.S. trade groups are urging Treasury not to apply dual consolidated loss rules to the jurisdictional tax blending rules under pillar 2 and the corresponding safe harbors of the OECD’s global minimum tax deal.

Robert Goulder critiques a proposal for renewed tariffs.

Mindy Herzfeld explains how the U.S. trade representative’s withdrawal of U.S. opposition to global data localization may have negative revenue consequences for the United States.

Executives at several multinational pharmaceutical companies are making projections about the effects of pillar 2 on their companies’ financial outlooks and discussing other tax developments as they report their 2023 financial results.

The OECD’s assumptions underpinning its global minimum tax revenue projections are still uncertain, so it should keep refining those estimates to get a more accurate picture of pillar 2’s effects, Business at OECD said.

The Japanese government has published a tax reform bill containing draft changes to its pillar 2 regime, but the absence of a proposal to adopt the global minimum tax backstop rule was unexpected, a practitioner said.

Business groups, accounting firms, and corporations lauded Ireland’s proposal to exempt foreign-source income from corporation tax, but some said that the move could complicate pillar 2 implementation.

The European Commission will establish a task force to design a global carbon pricing approach and support jurisdictions seeking to introduce or bolster carbon pricing systems outside the EU, according to a newly released communication.

Reuven S. Avi-Yonah argues that research and experimentation expensing is the wrong way to subsidize research.

B. Anthony Billings and Kyungjin “KJ” Kim examine recent guidelines on advance pricing agreements from the IRS and the OECD as well as the implications of Eaton for multinationals.

Sharon Katz-Pearlman explores the possible effects of the U.N. resolution passed November 2023 to create a framework convention for international tax cooperation.

The European Commission’s Business in Europe: Framework for Income Taxation proposal to harmonize aspects of the corporate tax rules disproportionately encroaches on the competences of EU member states, the Swedish Riksdag (parliament) said.

The 15% global minimum tax is here, and it is raising corporate tax payments—just not in the U.S., where Congress hasn’t changed tax law to conform with an international deal.

Lucas de Lima Carvalho considers that maybe the income inclusion rule isn’t so bad when it’s compared with the undertaxed payments rule.

Leopoldo Parada examines the Court of Justice of the European Union’s rejection of the European Commission’s use of an autonomous EU arm’s-length standard and the Court’s move to set limits on the use of the OECD transfer pricing guidelines to identify a selective advantage under EU state aid law in the Court’s recent Amazon decision.

Ryan Finley explains why the cost-sharing regulations’ definition of “platform contribution” shouldn't be interpreted as a restriction on specified methods other than the income method.

Some members of the European Parliament want the Business in Europe: Framework for Income Taxation proposal to include a formula for dividing the tax pie among EU member states.

Reuven S. Avi-Yonah examines what’s next for the United States and U.S. multinationals as pillar 2 becomes a reality.

Mindy Herzfeld examines whether Treasury’s recent efforts to clarify when U.S. taxpayers may claim a foreign tax credit contradicts U.S. law and congressional mandates.

While transfer pricing revenues reverted to pre-pandemic figures at £1.6 billion, results from the diverted profits tax appear to be highly cyclical, yielding only £40 million in tax year 2022–2023, HM Revenue & Customs said.

An Australian mining advocacy group has urged the commonwealth to adopt tax credits to contend with the movement of critical minerals investments to the United States as a result of the Inflation Reduction Act.

Michelle Markham examines the methods different countries are using to enhance tax certainty by exploring recent developments in multilateral avenues for improving international tax dispute resolution.

Nine EU member states face infringement proceedings after missing a key deadline to communicate to the European Commission about measures transposing the pillar 2 global minimum tax directive into their national laws.

The adoption of a proposed common EU corporate tax system should be delayed until pillar 2 rules are comprehensively implemented and pillar 1 talks are finalized, business groups told the European Commission.

Reuven S. Avi-Yonah explores the history of the corporate tax as an excise versus income tax and explains potential effects from the Moore and Altria cases.

Allison Christians examines a recent Tax Court of Canada decision that took an unusual approach to treaty shopping.

Carrie Brandon Elliot reviews prop. reg. section 1.987-1(b), which addresses foreign currency gains and losses of foreign branches using functional currencies that differ from that of their owners.

An OECD official told the European Parliament’s subcommittee on tax matters that the way capital gains are taxed in OECD countries could lead to tax minimization strategies, inequities, and the loss of revenues.

Sweden’s interest limitation rule that denies an interest deduction for a cross-border intercompany loan to finance an intragroup reorganization violates the freedom of establishment guaranteed by the EU treaty, a Swedish court has held.

Paul W. Oosterhuis offers proposals for determining which taxes the multinational tax community can agree are properly imposed as income taxes and proposals for determining what taxes other countries should defer to, either through foreign tax credits or income exemptions.

Belgian Finance Minister Vincent Van Peteghem told members of the European Parliament that the EU needs to take the lead in the discussion regarding pillar 1 of the OECD’s global corporate tax plan.

Extractives industry groups and other stakeholders have voiced concerns over a recent OECD proposal to amend the model tax convention commentary by including a 30-day permanent establishment threshold for natural resource extraction.

More than 100 tax academics from 17 EU member states are calling for the creation of an EU agency for tax cooperation to facilitate the exchange of information, particularly regarding VAT and excise taxes.

Lee A. Sheppard examines the foreign tax credit recapture and Schedule UTP aspects of Liberty Global and details why the Tax Court rejected Liberty Global’s argument that its capital gain in excess of its overall foreign loss should be exempt from U.S. tax.

Treasury is considering issuing proposed regs on sourcing rules for cloud transactions as companion regulations to finalized rules regarding characterization.