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Hybrid Regulations: Overreach or Underdone?
By Carrie Brandon Elliot
Carrie Brandon Elliot reviews how the unintended consequences of hybrid regulations can reflect overreach as applied to notional interest deductions and group relief, and incompleteness as applied to inclusions under the global intangible low-taxed income and subpart F regimes.
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Tax heads: DSTs are not illegal or discriminatory
A panel of tax experts surveyed by International Tax Review say digital services taxes (DSTs) are distortive and must be temporary - but few thought theywere illegal or discriminatory.
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The negative aspects of ICAP
While feedback on the International Compliance Assurance Program (ICAP) has been overwhelmingly positive, unsurprisingly,the first pilot did encounter some teething problems.
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Senate Panel Approves 4 Bilateral Tax Treaties
The Senate Foreign Relations Committee on Tuesday approved four bilateral tax treaties, rejecting an effort by Sen. Rand Paul, R-Ky., to include more privacy protections for Americans in the agreements. The committee approved by voice vote tax treatieswith Spain, Switzerland, Japan and Luxembourg and voted down Paul's proposed amendment to the bilateral treatywith Spain thatwould have raised the standard the U.S. government must meet to request or share taxpayer information under the agreement.
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Companies Win - Somewhat - as Treasury Trims Reach of Minimum Tax
Businesses are getting helpÔøΩbut not everything theywantedÔøΩas the Treasury Department addresses one of the biggest corporate frustrationswith the 2017 tax law. Under a new rule proposed earlier this month, Treasurywould make it easier to escape a minimum U.S. tax thatwas supposed to hit only companieswith low foreign taxes but also ended up affecting those operating in high-tax countries. Once the rule is final, U.S.-based companies could choose to have subsidiarieswith tax rates of at least 18.9% excluded from that minimum tax.
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OECD won't rush ICAP expansion despite scheme's popularity
The OECD's Achim Pross says his ultimate aim is to expand the International Compliance Assurance Programme (ICAP), but companies may be disappointed to learn that it could be a relatively slow process.
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Americans Demand Climate Action (as Long as It Doesn't Cost Much): Reuters Poll
Nearly 70 percent of Americans, including a majority of Republicans,want the United States to take "aggressive" action to combat climate change - but only a thirdwould support an extra tax of $100 a year to help, according to a Reuters/Ipsos poll releasedwednesday.
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G20 Will Discuss Minimum Tax for IT Companies: Germany
A compromise position on minimum levels of corporate taxation for IT companieswill be discussed at thisweekend's G20 meeting of leading economies in Japan, a German government official said onwednesday, adding that their hopewas that final agreements could be reached by the end of 2020.
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Dutch Government Presents Measures to Cut Carbon Emissions
The Dutch government presented Friday awide-ranging raft of measures ÔøΩ from a carbon tax for business to more bicycle parking at railway stations ÔøΩ that aim to slash by a half by 2030 the Netherlands' emission of carbon.
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Few expect digital tax breakthrough by 2020
Tax experts have told ITR that they do not expect the OECD to achieve consensus on new tax rules by 2020, or maybe ever.
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Hungary Hooks European Court's Approval of Advertising Levy
By Jennifer Mcloughlin
The European Commission fell short in swaying support for its decision that Hungary's progressive advertising tax violated EU state aid rules.
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GILTI, Subpart F Regimes Warrant Legislative Consideration
By Emily L. Foster
Congress should contemplate legislation to address policy issues regarding the 2017 tax law's international tax regime, pending the release of tax return data and the OECD's proposal on minimum taxes, according to a congressional staffer.
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FTT Countries Could Receive at Least €20 Million Each
By Elodie Lamer
France and Germany have proposed a method for the "mutualization" of financial transaction tax revenues thatwould ensure that each of the 10 participating countrieswould get at least ÔøΩ20 million.
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U.K. Government Appeals Against EU State Aid Decision on CFCs
By Andrew Goodall
The United Kingdom government has appealed against the European Commission's decision that an exemption from the U.K. controlled foreign company rules for intragroup interest granted a selective advantage and constituted state aid.
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French Lawmakers Reach Compromise to Advance DST
By Stephanie Soong Johnston and Teri Sprackland
France's Senate and National Assembly have ironed out compromise legislation for a digital services tax,which includes a provision seeking clarification onwhether the European Commissionwould raise state aid issues.
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U.S. Congress Looks to Roll Back Executive Tariff Authority
By Annagabriella Colon
Congress may step in to reevaluate and limit the constitutional authority it has been sharingwith the executive branch regarding tariffs, and Rep. Earl Blumenauer, D-Ore., said he expects bipartisan support for a restriction.
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EU Divided Over Minimum Effective Taxation
By Elodie Lamer
Both the European Parliament and the EU Council cannot agree internallywhether to further discuss the need for minimum effective taxation.
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Treasury Releases P&G Presentation for OECD Working Group Discussion
By Tax Analyst
Treasury has released a draft slide presentation submitted by Procter & Gamble for discussion purposeswith an OECDworking group.
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Fix Needed for Treatment of NOL Taxpayers Under BEAT Regs
By Tax Analyst
Treasury has released an individual's alternative proposal for the treatment of pre-2018 net operating loss taxpayers, asserting that the current section 59A regulations place otherwise identically situated taxpayers in significantly different economic positions for base erosion antiabuse tax purposes solely through the presence or absence of a net operating loss.
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Individual Raises Issues With FDII, GILTI Regs
ByTax Analyst
Treasury has released an individual's comments that address issues under proposed foreign derived intangible income and global intangible low-taxed income regulations (REG-104464-18) regarding person and foreign use requirements in some situations and the foreign use exploitation rule.
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Taxpayers Encouraged to "Kick Tires" of GILTI High-Tax Exclusion
By Jennifer Mcloughlin
U.S. officials selected the prospective effective date for a proposed high-tax exclusion under the global intangible low-taxed income provision to allow time to test the exception.
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Taxpayers Encouraged to "Kick Tires" of GILTI High-Tax Exclusion (1)
By Jennifer Mcloughlin
U.S. officials selected the prospective effective date for a proposed high-tax exclusion under the global intangible low-taxed income provision to allow time to test the exception.
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IRS's GILTI Partnership Pivot Could Mean Big Changes
By H.David Rosenbloom
The IRS and Treasury's change of approach in newly proposed regs navigating partnerships under the global intangible low-taxed income provision could result in significantly less income inclusions for some taxpayers.
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GILTI Regs Make Room for High-Tax Exclusion
By H.David Rosenbloom
The proposed regulationswould allow domestic shareholders of a CFC to elect to exclude from gross tested income amounts that have been subject to foreign tax at an effective rate that exceeds 90 percent of the U.S. rate.
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EU FTT Is a "Political Laboratory," Moscovici Says
By H.David Rosenbloom
Reaching an agreement on a financial transaction tax (FTT)would serve as a "political and institutional laboratory," said EU Tax Commissioner Pierre Moscovici, noting itwould mark the first tax directive adopted through enhanced cooperation.
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T Danmark: A Milestone CJEU Decision on Abuse of the Parent-Subsidiary Directive
By H.David Rosenbloom
the author examines two cases regardingwithholding tax exemptions on dividend and interest payments recently resolved by the Court of Justice of the European Union.
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Can the U.K. Digital Services Tax Address the Digital Economy?
By H.David Rosenbloom
the author discusses the United Kingdom's proposed digital services tax in the context of OECD and EU efforts to address the perceived tax problems arising from digitalization.
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New Incentives for U.S. Companies to Bring Intangible Property Home (1)
By H.David Rosenbloom
B. Anthony Billings, Kyungjin Kim and Santanu Mitra Teaser: The authors examine the GILTI and FDII provisions of the Tax Cuts and Jobs Act, aswell as the proposed regulations on GILTI and FDII, and explain how taxpayers can maximize their FDII deductions.
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China's Surprising Silence on Digital Taxation
By H.David Rosenbloom
China has not announced any plan to join the DST club, and it has not released any opinion on the digital tax debate. This article looks at China's digital economy, its developing tax system, and the powers shaping the digital tax debate to answer the reasons behind.
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How Imported Mismatch Payment Rules Can Create Double Taxation
By H.David Rosenbloom
Carrie Brandon Elliot describes how imported mismatch payment rules in the section 267A proposed regulations can disallow deductions for payments that are included in the U.S. tax base under GILTI or subpart F, possibly creating double taxation.
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CFC Shareholder Issue Lurks in Participation Exemption Regs
By H.David Rosenbloom
New temporary regulations relating to the dividends received deduction might have consequences under recent guidance on income inclusions for some controlled foreign corporation shareholders.
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Locating Sales: FDII Regs Address Questions OECD Workplan Must Answer
By H.David Rosenbloom
Mindy Herzfeld examines attempts to allocate more multinational profits to market jurisdictions, pointing out thatwhile the recently proposed U.S. regulations on FDIIwill have to split the pie only between foreign- and U.S.-generated income, the OECD's taskwill be much harder.
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The Grim Reaper of Treaties?
By H.David Rosenbloom
Lee A. Sheppard discusses pending tax treaties and protocols in the U.S. Senate and how the chamber might finally be taking action to ratify agreementswith Hungary, Switzerland, Luxembourg, and others.
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U.S. Carbon Tax Could Fit with WTO Obligations, Report Says
By H.David Rosenbloom
Lee A. Sheppard discusses pending tax treaties and protocols in the U.S. Senate and how the chamber might finally be taking action to ratify agreementswith Hungary, Switzerland, Luxembourg, and others.
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Poland Accepts Foreign Market Data, Rules Out Secret Comparables
By H.David Rosenbloom
At least for purposes of enforcing pre-2019 law, Poland's tax administrationwill not refer to secret comparables or require that taxpayers use domestic transactions or companieswhen applying the selected transfer pricing method.
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In Search of Legislative History
By H.David Rosenbloom
H. David Rosenbloom notes that a proposed elective exclusion of high-tax non-subpart F income from tested income contained in recent proposed regs has no statutory basis.
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Poland Accepts Foreign Market Data, Rules Out Secret Comparables (1)
At least for purposes of enforcing pre-2019 law, Poland's tax administrationwill not refer to secret comparables or require that taxpayers use domestic transactions or companieswhen applying the selected transfer pricing method.
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Poland Accepts Foreign Market Data, Rules Out Secret Comparables (2)
At least for purposes of enforcing pre-2019 law, Poland's tax administrationwill not refer to secret comparables or require that taxpayers use domestic transactions or companieswhen applying the selected transfer pricing method.
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The Impossible Documentation Requirements of the Proposed FDII Regulations
On March 5 the U.S. Treasury and the IRS issued proposed regulations under section 250 (REG-104464-18) that provide guidance for determining the amount of the deduction for foreign-derived intangible income. Importantly, the proposed regulations also identify the required documentation that taxpayers must have by the FDII filing date to secure their FDII deductions. For each sale of property and provision of service, documentation is required both as to the recipient as a foreign person and as to the foreign use of that property or service.
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Taxes Are Key to Emissions Reductions, Irish Climate Plan Says
Ireland vowed to reform environmental taxes as part of a sweeping new plan to arrest the damaging effects of greenhouse gas emissions, but stopped short of a unilateral commitment to carbon neutrality by 2050.
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U.S. Senate Calls for Alternatives to Tariffs
While discussing President Trump's trade policy agenda, U.S. Trade Representative Robert Lighthizerwas confronted about the administration's liberal use of tariffs,which he said areworth some economic discomfort in the United States.
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UK Dependencies to Reveal Company Ownership Amid Tax Haven Crackdown
The three British Crown Dependencies - Jersey, Guernsey and the Isle of Man - said onwednesday theywould move to reveal publicly the true ownership of firms based in their jurisdictions, a changewelcomed by anti-corruption campaigners.
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Dutch Government May Reconsider Corporate Tax Cut, Says PM
The Dutch government may reconsider plans to cut the country's corporate tax rate to 20.5 percent, Prime Minister Mark Rutte said on Tuesday.
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Closing Gaps In GILTI Opens Up Authority Questions
Recent rules on the international provisions of 2017's tax law attempt to resolve gaps and contradictions in the legislation's framework for global intangible low-taxed income ÔøΩ and in doing so, raise questions aboutwhether they exceed regulatory authority.
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Case study: Repsol's participation in ICAP
Rocio Bermudez, tax global practices & transfer pricing senior manager at Repsol, spoke to ITR about her company's participation in the first pilot of the International Compliance Assurance Programme.
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ABA Members Look for Changes to Proposed FDII, GILTI Regs
Eric Solomon of the American Bar Association Section of Taxation has submitted comments on proposed regulations (REG-104464-18) on the deduction for foreign-derived intangible income and global intangible low-taxed income, requesting reconsideration and clarification of several issues that include the exclusion for financial services income and the application of section 250 to partnerships and their partners.
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EU Countries Focused on Applying Carbon Tax to Aviation Sector Author: Teri Sprackland and Annagabriella Colon
Representatives from France, the EU institutions, the IMF, and the OECD joined EU Tax Commissioner Pierre Moscovici in calling for taxes on the aviation sector to help lower greenhouse gas emissions.
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Calif. Passes Limited TCJA Conformity, Funds EITC Expansion
Californiawill conform to some parts of the 2017 federal tax law and use the additional revenue to pay to expand the state earned income tax credit, under a bill approved Thursday by the full Legislature.
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Tax heads encourage more companies to use ICAP
Tax leaders from Barilla, Repsol and Shell have encouraged their contemporaries to sign up for the International Compliance Assurance Programme (ICAP), before thewindow to get involved closes later this month.
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Senate Foreign Relations to Act on Tax Treaties, Chairman Says
The Senate Foreign Relations Committeewill likely hold a hearing nextweek on bilateral tax treaties and act on them the followingweek, Chairman Jim Risch said June 12.