2023

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.

The OECD will soon begin working on broader guidance tackling hybrid arbitrage arrangements involving the pillar 2 global anti-base-erosion rules, and it could release that guidance this year, an OECD adviser said.

Ryan Finley explains why it’s wrong to read special exclusions for items like goodwill into the cost-sharing regulations’ definition of a platform contribution.

The global anti-base-erosion rules could raise as much as $192 billion annually in extra corporate tax revenue and reduce low-taxed profits worldwide by more than two-thirds, according to an OECD working paper.

Treasury Secretary Janet Yellen says new requirements for beneficial ownership information reporting implemented by the department’s Financial Crimes Enforcement Network are leading to a noticeable improvement in tax transparency efforts.

Martin A. Sullivan uses several data sets to explore how the substance-based income exclusion affects pillar 2 tax on the profits of U.S. multinationals in various industries and jurisdictions.

South Korea’s tax authority has created an international tax response team to administer new global minimum tax and digital taxation rules and participate in international talks under the OECD’s two-pillar global tax reform plan.

Vietnam’s proposed investment support fund created in response to its adoption of global minimum tax rules is necessary to ensure the country’s continued competitiveness and attractiveness to business, according to a top Vietnamese official.

Lucas de Lima Carvalho explains the importance of control in the taxation of controlled foreign corporations and reviews the ordinary meaning of the word and how it relates to its use in tax legislation.

Gary Clyde Hufbauer argues that low taxation of intellectual property sourced abroad provides a major, if hidden, tax incentive, and that taxing such income at a higher rate is a bad policy choice that will hinder future U.S. innovation.

Nana Ama Sarfo discusses some expected tax transparency activity in 2024.

Martin A. Sullivan examines how the pillar 2 anti-base-erosion rules may affect incentives and how some of those detrimental effects could be mitigated.

Belgium is inheriting a heavy tax agenda as it takes over the EU Council presidency from Spain in the new year.

Colombian President Gustavo Petro calls for a tax reform proposal to lower the country’s high corporate tax rate, remove the VAT on tourism-related activities and create tax exemptions for clean energy. 

The missions given to EU Tax Commissioner Paolo Gentiloni when he took office have been fulfilled, but the European Commission still has some tax initiatives in the drawer for the closing months of its mandate.

Bulgaria, Croatia, and the Netherlands recently published laws implementing an EU directive providing for global minimum tax rules in line with an OECD-brokered, two-pillar plan to revamp the international corporate tax system.

 European Commissioner for the Economy, Paolo Gentiloni, discusses the application of the OECD’s minimum tax rules in jurisdiction around the world. According to Gentiloni, the global minimum tax will put an end to the downward spiral of corporate tax rates over the last four decades. 

Belgium's Chamber of Representatives has adopted a draft law transposing the EU directive on public country-by-country reporting, with some changes aimed at making it stronger.

The U.N. General Assembly has adopted a resolution that aims to move negotiations on international tax matters from the OECD to the U.N.

A Swiss qualified domestic minimum top-up tax will go into effect January 1, 2024, as part of an OECD/G-20-led two-pillar plan to modernize global corporate tax rules.

The European Commission has posted a lengthy FAQ in response to a wide range of technical questions from member states and other stakeholders about the application of the EU’s global minimum tax directive.

Corporate tax advisers are gearing up clients for 2024 tax code changes to research and development expenses, an election year that could determine the fate of some high-profile laws, and corporate minimum taxes, among other regulatory actions from the IRS and Treasury Department. 

The IRS updated its clean vehicle tax credits FAQs sheet, emphasizing that vehicles and dealers must follow the rules to be eligible for credits. Vehicles with battery components manufactured or assembled by a foreign entity of concern aren’t eligible for any amount of new clean vehicle credit, even if the vehicle meets the critical mineral applicable percentage requirements for 2024. In addition, qualified manufacturers are required to make an attestation demonstrating compliance with the foreign entity of concern requirements. 

Jeffrey Tebbs and Caroline Reaves of Miller & Chevalier Chartered analyze recent guidance addressing the interaction of the US foreign tax credit system with Pillar Two top-up taxes coming into effect in 2024. According to Tebbs and Reaves, it isn’t clear that Pillar Two taxes can (or should) be excluded from the US exceptions for high-taxed income. Nor is it clear how a Pillar Two tax could be ineligible for the US foreign tax credit but nevertheless result in a deemed dividend inclusion.