Int'l Tax News

Natalie Olivio

U.S. companies seeking access to their offshore earnings during the coronavirus pandemic may not be able to grab the cash easily due to the inherent complexity of the repatriation process,whichwas nuanced even before the current economic uncertainty.

In this article, the author discusses how to reevaluate transfer prices based on market conditions caused by COVID-19 and mitigate complexities associatedwith year-end processes. He also examines how (re)structuring intercompany transactionswith high upfront payments can be effective in deploying cashwithin a multinational group.

In this article, the author examines the definition of a resident alien undersection 7701(b)in the context of the coronavirus pandemic.

Carrie Elliot reviews new proposed regs that allocate taxes to income categories in order to calculate the foreign tax credit limitation.

Mindy Herzfeld questionswhether the economic crisis caused by the coronavirus pandemic could lead to beneficial changes for the international tax system.

TheOECDshould take into account the coronaviruspandemic's effects on businesses as it continuestowork on updating the global corporate tax rules for the digital age, a major trade group said.

Twelve business groups have asked theOECDand theEuropean Commissionto remove obstacles towithholding tax relief on cross-border portfolio investments that have arisen as a result of the COVID-19 pandemic.

Financial associations are asking theEuropean Commissionto extend the deadline for implementation of requirements for intermediaries to report cross-border tax arrangements that promote avoidance until 2021 because of complications from thecoronavirus.

A nonresidentwho is temporarily present in the United States for up to 60 consecutive calendar days because of COVID-19 travel disruptionswill not be considered a U.S. resident under theIRS's substantial presence test.

Country-by-country reporting (CbCR) has pushed Indian taxpayers to seek out greater alignment between the local tax function and the global tax team.

Denmark and Poland are among the first countries to exclude companies located in tax havens from claiming coronavirus relief, and two advocacy groups arepushing the United Kingdom to follow suit.

The recession of 2008 precipitated a political crisis that motivated an unprecedented international project to curb corporate tax dodging. This Article argues, contrary to dominant scholarly views, that this effort transformed international tax ÔøΩ changing its participants, agenda and institutions, norms, and even its legal forms. Perhaps most important, efforts to close corporate tax loopholes opened a rift over the resulting revenues that threatens a hundred-year-old tax treaty framework. This Article identifies and critically evaluates these changes from the perspectives of revenue, inclusivity, legitimacy and accountability, innovation, and durability.

In this article, the author uses a Monte Carlo simulation approach to valuing hard-to-value intangibles, discusses the use of publicly available data in considering all known possibilities in performing a simulation, andwalks practitioners through the challenges of implementing that kind of model.

With the shift to e-commerce gaining momentum because of social distancing requirements, some U.S. companies are starting to focus on aworkaround that can eliminate some customs duties, including section 301 tariffs.

The Dutch government should lower limits on tax deductions for businesseswith profitable activities in the Netherlands and ensure that the country is at the forefront of international tax reform, an advisory committee recommended.

The option to capitalize interest payments under a loan agreement between a parent company and its subsidiary does not create a separate debt relationship subject to antiavoidance rules, according to Sweden'sSupreme Administrative Court.

TheG-20continues to push forward on anOECD-led solution to modernize the global tax system, since countries hit hard by COVID-19will soon need to think about economic recovery, a top Saudi minister said.

In this report, the authors trace the development of theIRS Large Business and International Division's new approach to transfer pricing enforcement, and they explain the practical implications for taxpayers and advisers.

The OECD inclusive framework is in the midst of something historic, assuming it can finish the job. The ensemble of 137 jurisdictions is trying to revise the international consensus,which for the past century has determined how corporate profits are divvied up among governmentswith rival tax claims. That's no small task. Thework is being done at the behest of the G-20 nations, and it's the type of globally coordinated mega-project that comes around only once in a generation.

In this article, the author examines the definition of a resident alien undersection 7701(b)in the context of the coronavirus pandemic.

Theworld needs to stand together, not only to fight the coronavirus pandemic, but also to agree on an OECD solution to update global tax rules for the digital age, Germany's finance minister said.

U.S. taxpayers looking to take advantage of net operating loss relief under the coronavirus stimulus bill may find themselves facing the difficult task of reconsidering previously taken return positions related to complicated transition tax calculations.

HM Treasuryhas proposed changing the rules to allow skilled nonresidents to come to the United Kingdom to helpwith its COVID-19 responsewithout affecting their tax residency status.

In this article, the author discusses the impact of the proposed abolishment of India's dividend distribution tax,with a particular focus on how the change may affect the overall investment climate.

In this article, the author considers the use of alternative forms of dispute resolution to resolve tax treaty disputes, focusing on the potential benefits of and obstacles to using mandatory binding arbitration to resolve transfer pricing disputes, including those that may arise under theOECD's unified approach for allocating profits in the digital economy.

New guidance on hybrid mismatches may include small measures of relief for taxpayers, but practitioners hoping for bigger changes from earlier guidance may be disappointed, if not surprised.

In this article, the authors consider the state of digital services taxation following theOECD's initiative to develop global digital tax rules.

While Switzerland has improved its exchange of information mechanisms, including adding more staff to handle data requests, it must do more to improve its beneficial ownership data availability, theOECD's transparency body said.

TheIrish Revenue Commissionersare calling the COVID-19 pandemic a case offorce majeure, saying that a taxpayerwill not suffer negative tax repercussions for being present in Ireland because of travel restrictions.

The Finnish tax administration cannot recharacterize an intragroup lender as a service provider because taxpayers' transactions must be respected as structured unless theywere undertaken for avoidance, according to Finland'shighest courtin tax disputes.

Robert Goulder examines how public country-by-country reporting almost made it into Congress's pandemic relief legislation.

TheOffice of the U.S. Trade Representative(USTR) said itwill continue towork toward the elimination of unilateral digital services taxes,which it says are key roadblocks to international digital trade.

The COVID-19 pandemic has raised tax residency concerns for individuals and businesseswith employeeswho have been forced to remain in foreign countries and could face unforeseen tax obligations because of government-mandated lockdowns.

In this article, the author considers the EU tax policy agenda outline laid out in the first tax policy speech ofPaolo Gentiloni, the new EU commissioner of the economy.