Int'l Tax News

A new tax penalty for corporations intended to curb overseas manufacturing has been added to the campaign platform of Democratic presidential candidateJoe Biden.

The United States is obstructingOECD-led negotiations on a global corporate tax overhaul proposal, so theEUshould prepare its own digital taxation plan now in case talks fail, a top French minister reportedly said.

Multinational companieswarn that the proposed consolidated net operating loss regulationswould undermine the policies for limiting the use of losses incurred by corporations that are residents in the United States and a foreign jurisdiction.

Mindy Herzfeld sheds light on Treasury's interpretation of the international tax provisions of the Tax Cuts and Jobs Act, often inways not supported by legislative history or other proposals that led to the act's creation and passage.

Social media giant Facebook does not intend to pass along the costs of the U.K. digital services tax to its U.K advertising customers, at least for now, a company spokesperson said.

If a new draft article to tax digital services is added to the U.N. model tax convention, it's likely itwill then be included in several existing and future tax treaties, an Indian official said.

Facebook's French subsidiary has agreed to pay over ÔøΩ100 million in back taxes to French tax authorities after an audit found the company had not paid the correct amount of taxes for nearly a decade.

HM Treasuryhas denied a U.K. media report that the U.K. government is considering abolishing the digital services tax, partly because of U.K.-U.S. trade concerns as both countries continue negotiating a deal.

In economic analysis, Martin A. Sullivan says that new data show little change in profit shifting by multinational corporations since enactment of the Tax Cuts and Jobs Act, but that it's still early.

TheIRSandTreasuryhave released final regs on thedividends received deduction(DRD), refusing to blink in the face of charges from taxpayers and practitioners that the rules go beyond their authority.

Mindy Herzfeld examineswhether, in finalizing regulations implementing the subpart F high-tax exception to items of income thatwould otherwise be tested income taxable as global intangible low-taxed income, Treasury exceeded its statutory authority, subverted congressional intent, and provided a giveaway to corporate taxpayers.

Nana Ama Sarfo looks at the U.N.'s new digital services treaty proposal, how it serves the interests of developing countries, and how it diverges from the OECD's approach.

A Dutch bill thatwould impose a conditional exit tax on reorganizations like company transfers and mergers may face legal troubles and have unintended consequences for the business climate.

MasterCardwon't have to pay an equalization levy in India because it already has a permanent establishment there, but its liability may change depending on the outcome of its appeal in a separate court case.

The speaker of Brazil'sChamber of Deputiesvoiced opposition to the government's plans for a "digital" tax on financial transactions because of its potential similarity to a lapsed financial transactions tax thatwaswidely criticized.

AnOECDdraft report on its global anti-base-erosion (GLOBE) proposal charts out significant design progress but has yet to address how itwill coexistwith the U.S. global intangible low-taxed income provision.

In this article, the authors consider four options for taxing the digital economy ÔøΩ tariffs on electronic commerce, VAT, the corporate income tax, and digital services taxes. They examine the potential effects of trade laws on each and propose a solution thatwould allow countries to select a tax that is suited to their needs.

In this article, the author argues for the development of a new corporate tax thatwould limit the power and regulate the behavior of our largest corporations,which are monopolies or quasi-monopolies that dominate their fields and drive competitors out of business.

Robert Goulder examines Brazil's efforts to replace their fragmented consumption tax structurewith a simplified federal VAT.

A proposed Dutch exit tax on expatriating entities is throwing awrench in the latest attempt byAnglo-Dutch consumer products companyUnileverto simplify its dual-entity structure.

Vendors onAmazon'sU.K. sitewill have to pay an extra 2 percent in seller fees because of the controversial U.K. digital services tax, following similar increases in France and Italy.

Mindy Herzfeld discusses digital economy taxation reformwithin the context of antitrust, trade, and class tensions.

Agroup ofU.N.Tax Committee members from developing countries have proposed an approach to taxing digital services income that differs significantly from theOECD's pillar 1 proposal, including in its scope and allocation methods.

Workwill proceed on the development of a new multilateral convention thatwould implement pillar 1 of a proposed global tax overhaul, according to a draft report from theOECD.

TheOECD's draft blueprint report on pillar 1 of its international corporate tax reform project reflects significant technical progress on revised nexus and profit allocation rules, but also acknowledges that important questions remain unresolved.

Vendors onAmazon'sU.K. sitewill have to pay an extra 2 percent in seller fees because of the controversial U.K. digital services tax, following similar increases in France and Italy.

An international consortium of tax officials negotiating a new global taxing systemwill considerwhether to remove prescription drugs from the scope of taxation, aswell as an expanded list of exemptions.

The Netherlands is expanding its dividendwithholding tax (WHT) regime by adding an exit tax on companies such as Unilever that reorganize and move profit reserves to countries that do not impose Dutch dividendwHT.

TheOECDand Brazilian tax administration have opened a consultation on the adoption of safe harbors in Brazil's transfer pricing regime, part of an effort to gradually align the country's unorthodox systemwith international norms.

In news analysis, Lee A. Sheppard analyzes the recently released final regulations on global intangible low-taxed income, pointing out that they could pave theway for a per-country foreign tax credit limit for GILTI.

Mindy Herzfeld outlines new rules released by the U.S. Treasury as part of the final section 250 regulations.

Spain's Chamber of Deputieshas approved and sent to theSenatelegislation to enact a digital services tax and a financial transactions tax.

The COVID-19 pandemic may have dimmed the prospects of full global tax reform by the end of 2020, but governmentswill miss a historic opportunity if talks break down, a former tax chief said.

Robert Goulder questions the linkage between the European Commission's state aid case against Apple and the OECD's project on the digital economy.

Multinational enterprises (MNEs) that are struggling to decipher Kenya's vague digital services tax (DST) legislation may decide to exit the country instead of risking non-compliance

The core of the EUGeneral Court's recentAppledecision may be state aid, but it could raise stakes as countries aim for agreement on global corporate tax reform for the digital age.

PhilippinePresident Rodrigo Dutertehas called onCongressto pass legislation cutting the corporate income tax rate from 30 percent to 25 percent and extending the loss carryover period for most taxpayers to five years.

In this article, the author discusses theGeneral Court of the European Union's judgment in theApplestate aid case and its potential impact on how theEUaddresses state aid and tax abuse.

In this article, the author argues that theOECD's two-pillar approach to digital taxationwould prove harmful to the Swedish economy and therefore the country should build support for an OECD-approved digital services tax thatwould sunset once an appropriate multilateral solution is developed.

Members of theEuropean Parliamentare threatening to reject the 2021-2027 EU budget if member states don't make a clear commitment to introducing new EU-wide taxes to finance it.

The Tax Cuts and Jobs Act's amendments to the definition of intangible property and codification of the aggregation and realistic alternative principles may discourage taxpayers' use of cost-sharing arrangements in the future.

The U.K digital services tax has become law, setting the stage for escalating tradewar tensions between the United Kingdom and the United States,which is investigatingwhether the tax discriminates against American business interests.

TheOECDhas made good progress on designing a global tax reform plan, but stakeholders may need to be realistic about the prospect of countries agreeing on that plan by year-end, officials said.

In this article, the author discusses theOECD's two-pillar approach to taxing the digital economy. He focuses on the narrative of "pillar-building" in international tax policy and the difference between building consensus and manufacturing consent.

Treasury's decision to base its substantiation requirements for some foreign-derived intangible income transactions on those of two other tax code provisions may lead to taxpayers questioning the authority uponwhich it rests.

In this two-part article, the author updates his examination of the initialOECDbase erosion and profit-shifting project, and he considers the process and potential success of BEPS 2.0. This first installment examines the origin of the BEPS project, its objectives, and how it may proceed in the future. The second installmentwill focus on BEPS 2.0.

The European Commission recommended Tuesday that financial support for companies in the future be contingent on their not making use of countries on the European Union's so-called tax haven blacklist.

The OECD's two-pillar proposal to address the tax challenges of the digitalized economy are technically different, but it is unlikely that one pillarwould be adoptedwithout the other, according to the OECD's Pascal Saint-Amans.

By: Joshwhite & Mattias Cruz Cano

Businesses are finding it difficult to dealwith transfer pricing (TP) data and how to apply an arm's length analysis in a global economy that looked completely different just six months ago.

The European Union (EU) has released a three-pillar approach for fair and simple taxation that includes a 25-point action plan, a seventh iteration of the Directive on Administrative Cooperation (DAC7), and a good tax governance initiative.