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Companies Face Revenue Untangling Burden With U.K.'s Digital Tax


Internet-based companiesÔøΩranging from Amazon and Facebook, to Tinder and Alphabet Inc.'s GoogleÔøΩwill have to unravel the geographic origins of their revenue streams and customers to check if the U.K.'s digital taxwould apply to their businesses.

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Analyzing the Macroeconomic Impacts of the Tax Cuts and Jobs Act on the States


Robert Carroll and Brandon Pizzola of EY discuss the effect of 2017 tax law on the economies of the states. The authors find that there are variations across the states caused by the differences in the composition of state economies, the sunset of some tax-reducing provisions, and the delay of some tax-increasing provisions.

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Thoughts on the Compatibility of LOB Clauses and EU Law


In this article, the author examines the opinion statement by CFE Tax Advisers Europe on the compatibility of limitation on benefit clauseswith EU fundamental freedoms and offers some insights.

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Lobbying on BEAT Goes On While Regs at OMB Review


Public records indicate that lobbying on the proposed base erosion and antiabuse tax continues evenwhile proposed regulations are being reviewed by the U.S. Office of Management and Budget.

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Energy Giants, OIRA Meet Over BEAT


Treasury and the Office of Management and Budget recently metwith several oil industry representatives as part of their regulatory review process in anticipation of the release of base erosion and antiabuse tax guidance.

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EU Lawmakers Call for Expanding Digital Services Tax Proposal


Members of the European Parliament (MEPs) pushed for expanding the scope of the proposed EU digital services tax (DST) at a meeting of the Committee on Economic and Monetary Affairs (ECON).

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U.S. Chamber Outlines Suggested Changes to Proposed GILTI Regs

  • By Tax Analysts

The U.S. Chamber of Commerce has commented on proposed regulations (REG-104390-18) under section 951A on the inclusion of global intangible low-taxed income by U.S. shareholders, addressing the double taxation of high-taxed foreign income and seeking several changes to the regs, including clarification of an antiabuse rule andwithdrawal of a per se rule and the basis reduction rules.

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EU Code of Conduct Group Reports on Late 2018 Activities

  • By Tax Analysts

The EU Code of Conduct Group has issued a report on the activities of the EU Council's Austrian presidency regarding business tax measures that the group assessed during the second half of 2018.

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U.K. May Need 2 Years to Set Up No-Deal Brexit Customs System


The United Kingdom may need at least two years to set up a functioning customs border and may temporarily forgo tariff collection in a no-deal Brexit scenario, a top HM Revenue & Customs official said.

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Canada Boosts Post-TCJA Competitiveness With Tax Measures


In response to the U.S. Tax Cuts and Jobs Act, Canada has proposed three measures to boost its competitiveness,whichwould give it the lowest overall tax rate on new business investment among G-7 countries.

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News Analysis: Accounting Disclosures Post-TCJA


Congress makes tax laws, but accounting guidelines are mostly left for the Financial Accounting Standards Board, a private rulemaking body, to determine. As a result, the many international tax law amendments enacted by the Tax Cuts and Jobs Act (P.L. 115-97) don't necessarily result in any immediate changes to how companies should calculate their tax liabilities or determine their deferred tax assets or liabilities in their financial statements, nor how they should provide supplemental disclosures about their tax liabilities. The SEC's accounting guidelines for companies traded on the U.S. stock exchanges generally follow FASB's guidelines,which set rules for generally accepted accounting principles.

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Canada to offer tax credits and incentives to media (1)

  • By Associated Press

Canada's federal government is stepping in to help the struggling Canadian media industrywith new tax credits and incentives.

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EU Digital Tax Should Be Higher, Broader, Lawmakers Say


A proposed European Union digital tax should be set at 5 percent rather than 3 percent and should include revenue from sites such as Netflix Inc. and Amazon.com Inc., European Parliament lawmakers said Monday.

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SIFMA Looks at Basis Adjustment Rule, Interest Expense in GILTI Regs

  • By Tax Analysts

The Securities Industry and Financial Markets Association has commented on proposed regulations (REG-104390-18) under section 951A on the inclusion of global intangible low-taxed income by U.S. shareholders, focusing on a tailored basis adjustment rule and on the exception for qualified interest expense.

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U.S. Tax Review (7)


In this article, the authors discuss recent U.S. international tax developments, including guidance on basis adjustments, the Tax Court's decision in Smith, and treaty issues related to the Tax Cuts and Jobs Act.

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German Economy Minister Calls for Corporate Tax Cut


Germany's economy needs a corporate tax cut to counteract the downturn in the third quarter, the country's economy minister said.

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Brexit Deadline Looms Over $1.5 Billion EU Probe of U.K. Tax Break


As the political climate over Brexit heats up, the European Commission faces the choice of quickly concluding its state-aid investigation into a controversial tax break for U.K.-based multinational companies.

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Plan to Roll Out Digital Tax in 2021 Gets Frosty Reception at EU


A new "sunset" clause for the European Union's pending three percent digital services tax,whichwould see it being rolled out in 2021, got the cold shoulder from a host of countries in the bloc.

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India Data Rules May Raise Tax Issues for Mastercard, Visa


Rules requiring foreign companies to store certain types of data in India have opened a front in the country's quest forways to tax its booming digital economy. Tax professionals are exploringwhether data localization, as it is known, means digital companies are present in the country and therefore potentially subject to levies they hadn't previously had to pay.

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Ford and Its Foreign Sales Corporation Were Not 'The Same Taxpayer'


Robertwillens discusses Ford Motor Co.'s attempt to gain interest netting for overpayments and underpayments made by it and itswholly owned foreign sales corporation. The companywas unsuccessful since it and the FSCwere not found to be "the same taxpayer."

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Navigating QBAI Quirks of the GILTI Regulations


Yes, the proposed GILTI regulations didn't answer some of the tough questions, particularly those surrounding the calculation of foreign tax credits. But the regulations do address other critical issues and suggests the general approach of Treasury and the IRS to drafting regulations under the 2017 tax actÔøΩwhich is to adopt regulations that Treasury and the IRS believe are consistentwith the overall statutory framework, and not regulations that unduly defer to specific statutory language that seems out of sync. This article summarizes certain key aspects of the proposed GILTI regulations relating to a controlled foreign corporation's qualified business asset investment.

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The Changing Headquarters Landscape for Fortune Global 500 Companies


The location of headquarters for the Fortune Global 500, the 500 largest corporations by revenue in theworld, has shifted significantly in recent years. Many factors can affect the choice of a company's headquarters location, such as regional economic growth and stability, local infrastructure, a country's regulatory environment, a country's tax policies, among others. Given the significant changes in countries' statutory corporate income tax rates during the 2000 to 2018 period, this article compares how headquarters locations and top statutory corporate income tax rates have shifted in recent years and discuses notable trends.

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Fundamentals of Tax Reform: FDII


In the first of a four-part series on the fundamentals of international tax reform, Kimberly Majure and Barbara Rasch of KPMG LLP discuss the calculation of the deduction for foreign-derived intangible income (FDII). They explain the critical issues that require careful consideration and present planning opportunities, and they suggest best practiceswhile IRS guidance remains pending.

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Fundamentals of Tax Reform: GILTI


In the third of a four-part series on the fundamentals of tax reform, Barbara Rasch and Joshua Kaplan of KPMG LLP provide a general overview of the global intangible low-taxed income (GILTI) rules in new tax code Section 951A. They explain the issues involved in computing the GILTI inclusion, taking into account the guidance provided in the recently issued GILTI proposed regulations.

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Emmanuel Macron seeks headway on tax during trip to Berlin


French President Emmanuel Macron's rapportwith German Chancellor Angela Merkel fails to hide frustrationwith slow progress on economic issues. The latest issue to expose deep divisions is an EU initiative, backed by France, to impose a revenue-based tax on big Internet companies.

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EU Court Rules Spanish Foreign Holding Tax Scheme Was Illegal Aid

  • By Reuters

A European Union court ruled on Thursday that a Spanish scheme to give a tax advantage to companies investing in foreign businesseswas illegal state aid that had to be repaid. Spain introduced a law in 2001 that allowed goodwill to be deducted from tax in the form of an amortisation for holdings in foreign companies of at least five percent if held for one year.

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Switzerland Gearing Up For Corporate Tax Changes


The Swiss Government has announced that, in preparation for a major overhaul of the tax system, existing practices on the taxation of principal companies and finance brancheswill not be applied to new companies as of 2019.

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OECD Releases Guidance On Impact Of BEPS MLI


The OECD has provided a progress update on implementation of the BEPS multilateral instrument (BEPS MLI),whichwill become effective from January 1, 2019, and released advice for states on how to prepare guidance on the interpretation of changes to tax treaties.

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Nigeria's Tunde Fowler: Digital tax solution must work for everyone


Nigerian revenue authority leader Tunde Fowler has emphasized the importance of coming upwith a digital taxation solution thatworks for both developing and developed countries, aswell as the business community.

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Santander Holdings, Government Reach Agreement in STARS Case

  • By Tax Analysts

In a joint motion filed in a U.S. district court, Santander Holdings USA Inc. and the government asked to continue a status conference, stating that they have reached an agreement regarding foreign tax credits, deductions, penalties, and a refund related to Santander's participation in a structured trust advantaged repackaged securities transaction.

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GCEU Upholds Commission Decision, Deeming Spanish Tax Break for Foreign Acquisitions Illegal State Aid

  • By Tax Analysts

The General Court of the European Union in Deutsche Telekom AG v. European Commission, T-207/10 (GCEU 2018), upheld a European Commission decision (C(2009) 8107 final corr. of October 28, 2009) that Spanish tax provisions allowing for the amortization of financial goodwill of foreign acquisitions constituted illegal state aid, according to a GCEU release.

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Developing Countries Should Adopt Wait-and-See-Approach to MLI


Developing countries should sign onto the OECD's multilateral instrument but adopt await-and-see approach to its more controversial provisions like mandatory binding arbitration, according to the Center for Global Development.

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Switzerland to End 'Federal Practices' for Principal Companies


Effective January 1, Switzerland's Federal Tax Administrationwill no longer apply "federal practices" concerning principal companies and Swiss finance branches to new companies, the Federal Council said November 15.

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EU Presidency Considers Timetable for Introducing Digital Tax


The Austrian presidency of the EU Councilwill propose three different options for the rollout of the proposed digital services tax (DST).

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OECD Forum to Scrutinize Tax Havens' Substance Requirements


In an effort to treat zero-tax jurisdictions and preferential tax regimes consistently, the OECD Forum on Harmful Tax Practices (FHTP)will begin reviewing both under the "substantial activities" factor previously applied only to preferential regimes.

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The Expanding Altera Effect: Are Periodic Adjustments Next?


The dispute in Altera overwhether evidence from arm's-length transactions may be used to neutralize one of the transfer pricing regulations' specific requirements could soon spread beyond treatment of stock-based compensation in cost-sharing arrangements.

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Merkel: EU Digital Tax Should Only Come if Broader Global Efforts Fail

  • By Reuters

German Chancellor Angela Merkel on Tuesday told the European Parliament that a European digital tax should only be introduced if broader global efforts fail.

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Canada Court Rejects Lawyer-Client Privilege for Tax Analysis


Canadian taxpayers can't claim attorney-client privilege for advice on the tax implications of an acquisition, a Canadian court ruled.

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Amazon, Online Companies Struggle with New India Tax Rules


Amazon.com Inc. and other e-commerce companies could face penalties in India after missing a deadline to complywith complex new rules requiring them to collect tax at the point of sale.

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Dutch Government Pushed to Roll Out Stricter Anti-Tax Avoidance Rules


Lawmakers from across the political aisle are ratcheting up pressure on Dutch State Secretary for Finance Menno Snel to implement tougher rules to combat tax avoidance and curb the country's vast letterbox industry.

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The Changing Headquarters Landscape for Fortune Global 500 Companies


Robert Carroll, James Mackie III, and Brandon Pizzola of EY's Quantitative Economics and Statistics group discuss the significant shift in recent years of the Fortune Global 500 headquarters locations and how that shiftwas driven in part by corporate tax rates.

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Offshore Hedge Funds to Be Targeted by New IRS Rules Coming Soon


The IRS is close to releasing a proposal thatwould narrow the U.S. tax benefits for offshore hedge funds. The proposed regulationswill address a change in the 2017 tax overhaul that limited the benefits for offshore insurers associatedwith hedge funds to conduct investment activities.

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Additions Coming to U.S. Transition Tax Ordering Rules


Practitioners can look forward to significantly more detail on the ordering rules for determining earnings and profits in final transition tax regs scheduled for release by the end of the year.

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U.K. and EU Agree on Tax, Customs Issues in Draft Brexit Deal


Britain and the EU have finalized a draft Brexit dealwith a backstop to avoid a hard customs border between Ireland and Northern Ireland, aswell as a commitment to continue implementing OECD tax standards.

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Five US tech giants spend combined $115bn on buying back stock


The five US tech companieswith the largest cash piles took advantage of President Trump's tax reforms to spend more than $115bn in the first three quarters on buying back their own stock.

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EU Lawmakers to Back Digital Tax Revenue to Plug Brexit Hole


The European Parliament is expected Nov. 14 to vote overwhelmingly in favor of requiring large internet companies to help finance the bloc's multi-annual budget covering the next seven years. Facedwith a Brexit budget hole estimated at 11 billion euros ($11.2 billion), EU lawmakerswill call on revenue from the pending digital services taxto helpwith EU spending.

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Retailer Tax Law Fix to Be Released Soon, House Tax Chief Says


Lawmakers are "very close" to releasing legislation thatwill fix errors in the tax law, including a mistake that makes renovations for retailers and restaurants more expensive, Houseways and Means Committee Chairman Kevin Brady said.

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Tax Overhaul Might Be Imperiled as Democrats Eye Corporate Hike


Democrats plan to use their control of the House to argue for raising the corporate tax rate by a few percentage points -- a long-shot change that, if enacted, could cause the Republican-championed tax cut to unravel.

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Trump's Tax Cut Was Supposed to Change Corporate Behavior. Here's What Happened.


The $1.5 trillion tax overhaul that President Trump signed into law late last year has already given the American economy a jolt, at least temporarily. It has fattened the paychecks of most Americanworkers, padded the profits of large corporations and sped economic growth.

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Tax heads relieved as EU's digital tax hits a roadblock


Tax directors across the European and the US are glad to hear the EU's digital tax proposals have been delayed because they "create chaos", contain too many uncertainties and can be applied in "all sorts ofways".

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